The ORGANIZATIONAL ENVIRONMENT refers to all the forces and factors that exist outside the boundaries of an organization and influence its operation, performance, and ability to achieve its goals. It’s a dynamic and complex system, encompassing both internal and external elements.
INTERNAL ENVIRONMENT The Internal Environment encompasses everything within the organization’s control, including: CULTURE : The shared values, beliefs, and assumption that guide employee behavior and decision-making. LEADRERSHIP : The style and effectiveness of leadership can significantly impact employee morale, motivation, and the overall direction of the organization. HUMAN RESOURCES : The skills, knowledge, and experience of the workforce are crucial for organizational success. FINANCIAL RESOURCES : The availability of funds, financial management practices, and investment strategies impact the organization’s ability to grow, innovate, and compete. TECHNOLOGY : The organization’s technological infrastructure, systems, and adoption of new technologies influence its efficiency, productivity, and ability to adapt to change.
EXTERNAL ENVIRONMENT The External Environment comprises all the forces beyond the organization’s control, which can be categorized into: GENERAL ENVIRONMENT:
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