EXTERNAL VS EXTERNAL ENVIRONMENT.

 

Internal Environment

It is defined as all the controllable forces, factors and conditions within an organization that influence the organizational behavior in Organizations.

The internal environment is one of the important components of Business environment which directly influence the day to day activities of an organization. Such as Employee performance, the decision of the Board of directors and shareholders, the structure of the organization, etc.  Directly affect the growth of an organization.

An organization’s internal environment has the following sub-components

Organizational culture:

Culture is a set of values, beliefs, norms. Every organization has its own culture. Organizational Culture refers to set of values, beliefs, norms of an organization under which it operates. It helps to bind all the employees and comply with organizational rules and regulations. Culture has a powerful influence on the process of organizational change and decision making.

Organizational Structure:

Structure is a framework of an organization. It clarifies the authority and responsibility roles and relations, hierarchy of management and coordination activities for the business. So Organizational structure is one of the major components of the internal environment.

Employees:

They are the major components and important assets of organizations. They are responsible to work as per the organizational’ direction, goals, rules and regulation of the company. For their better performance, organizations have to motivate and satisfied them with fair and some unique and equitable rewards policies. Such as Bonuses, securities, flexible working hours, etc.  The organizations’ productivity and growth can be enhanced only by the dedication, loyalty, satisfaction, and cooperation of employees.