Internal Variables that influence Organizational decision making MHA FPX 5010 Assessment 1 Current Environmental Analysis
Abstract
MHA FPX 5010 Assessment 1 Current Environmental Analysis
An organization’s internal and external elements are evaluated as part of an environmental study. Each component may significantly impact the organization’s performance and result. Internal factors like Shareholders, the Board of Directors, and Employees are considered in this analysis. Politics, economics, and technology are evaluated as external variables. Based on these variables, a company’s strategic orientation is established. The objective of Health Net Group is to accomplish the Organization’s Goals of health care: better health outcomes, lower costs, and more member involvement. Every company must do an environmental study to plan for its future (Kumar, 2018). Identifying the present obstacles and possibilities enables the company to maintain its relevance and success. The health care business is in a constant state of change and must be able to respond swiftly and control it effectively (Miles et al., 1978). Health Net Group’s directional approach comprises its often-examined vision, mission, and core values.
Internal Variables that influence Organizational decision making
Several internal elements might influence organizational decision-making. Stockholders, the board of directors, and workers are a few examples (Kalodimos & Leavitt, 2020). Identifying the organization’s shareholders is essential. It is essential to ascertain their needs and expectations and their degree of influence. Historically, stockholders were prohibited from communicating with one another. The Securities and Exchange Commission loosened the regulations governing shareholder collaboration. Shareholders networked in order to amplify their calls for the modification of undesirable organizational practices. Participation of shareholders enhances the self-governing nature of the strategic direction. The amount of engagement of the Board of Directors varies from organization to organization; this may either aid or hinder the development of effective strategies. It has been observed that the effectiveness of an organization’s strategy formulation is proportional to the Board of Directors’ involvement in offering proposals and actively engaging in decision-making (Bezemer et al., 2018). Boards of Directors are regarded as independent decision-makers that offer input and contribute to the organization’s strategic direction. Boards of Directors investigate the external world to gather information, interpret the facts, and pick the best options. Others believe the Board of Directors should monitor suggested initiatives, either accepting or rejecting what the Chief Executive Officers recommend.
MHA FPX 5010 Assessment 1 Current Environmental Analysis
The cornerstone of every successful company is its personnel. Employees who are given a voice in decision-making have a more significant stake in the organization’s success. The empowerment of workers increases their involvement and productivity. When employees identify with brands and organizations, they are more inclined to make choices that correspond with the organization’s vision, goal, and values. Customer experience will be optimized when employees are empowered. Customers who identify with a particular brand are less inclined to switch to another brand and generate favorable comments and referrals. Employees that feel involved with leadership and decision-making will contribute to the organization’s overall success (Niswaty et al., 2019).
External factors have a role in the decision-making process of an organization.
External analysis is essential for identifying external modifications, but it does not guarantee a positive result. Change cannot be avoided, and an organization’s capacity to adjust to abrupt hardship may determine its level of success. It continually evaluates external elements to adapt an organization’s efforts and plans to the ever-changing external environment. Politics, economics, sociology, and technology are common external influences that affect an organization (Vasilev et al., 2020).
Health policy is a collection of stipulations, regulations, and laws that apply to all buyers and providers. Legislation attempts to strike a balance between health care prices and access by posing the crucial issue of how it will be supported. Because the penalty is more minor than the cost of health insurance, employer-sponsored coverage will decline. More employees are adopting government-sponsored initiatives. This political shift has a substantial influence on the income streams of the majority of organizations. Despite the risk of damage, Health Net Group’s sales in 2021 topped $3 billion. Employer-based coverage is becoming more unaffordable due to rising pr