Environment refers to external conditions influencing development or growth of people, animals, or pants. It is living or working conditions. Environments are incessantly changing. A business has to work under such dynamic conditions. Ever changing environments are a challenge to business. A successful manager keep a constant which on environmental changes and plans accordingly. These changes are uncontrollable. The following changes should be taken into account:
1. Demographic trends
2. Education and individual
3. City problems
4. Changing nature of the work force
5. Changing attitudes toward business
1. Demographic or Population Trends
The world population is fast growing. It has exceeded six billions. Increase in population has not only caused social and economic problems but it also has expanded markets.
Pakistanis also facing this acute problem, due to which developmental programs have been adversely affected. Our population has much greater number of children and youths than the middle-aged and the old. The death rate of men is greater than women inPakistan.
Education has brought a mental revolution, it has created self concept and self respect. People as consumer, customer, employee, or student are now well aware of their rights, duties and obligations. Education has created better economic opportunities. By acquiring managerial, professional, or technical abilities, a young man has laced him in a better status in society. It is the era of professional management system as compare to previous family management system.
Business and professional education has tar exceeded the traditional education of arts or humanities. The utility of it is now being questioned. On the other hand, education in business administration, medical, or engineering is able to bring about a material and substantial change in the society by improving methods, systems, and technology.
3. City Problems
Not onlyPakistanbut the rest of the world including western developed nations a-e facing the city problems. Tremendous shill from villages to the cities has created transport, housing, water, and slum problems. Pollution and energy crisis have augmented the difficulties of the cities. These problems have caused mental, psychological, and ethnic complications.
4. Changing labor force and unemployment
Labor force comprises skilled semi skilled, and unskilled per .is. As a result of unchecked increase in population the afreet of unemployment has rambled the third world. Unemployment has created properly unrest, and subversion.Pakistan’s labor force comprises the persons mostly aging between 18 and 44. Employers prefer to hire young labor force because of its high productivity.
5. Changing attitude toward business and fringe benefits
Now the manager cannot perform his duties sitting close in a cubicle. He has to keep a constant watch on the prevailing and changing conditions. For businessmen technological, economic, legal, competitive, and political environments are vital affecting his decisions. A manager is expected not only to solve business problems but also cultural and community issues. A corporation is expected to improve the standard of having of masses. It is understood to be responsible for the welfare of its employees, and to improve the standard of products. Minimum levels of wages are expected from it. Increasing education, automation, and desire for better future have forced the businessmen not to exploit their employees.
Alongwith their salaries and wages laborers demand bonus, allowances, pension, Increment, job security, housing and transport facilities, and other fringe-benefits.