Factors Affecting The Environment Of An Organization

718 Words3 Pages
Trying to run a business in today’s turbulent economic environment is similar to trying to get a small boat back to shore while being in the middle of a category 5 hurricane. There are so many factors at work that a manager is required to immediately respond to, just to keep the business above the water. This is known as organizational change. The factors that push this modification are known in the managerial world as external environments, and internal environments. The external environment of an organization is referring to elements that exist outside the company that require adjustment within the organization in order to stay in business. These factors are, for the most part, out of the organizations control. For example, available and affordable technology, other competing organizations, economic issues, customers, conditions of a social and political nature, and available resources are all common external factors that require change and adjustment for an organization. Despite these factors being of external nature, and out of the control of the company, they all play major roles in the organization’s ability to maintain continual operations, financial growth and sustainability. It is of the utmost importance for a manager to maintain a continuous awareness of these factors, and make the necessary adjustments. To ignore them would prove to be a very destructive decision for the organization. Lastly, It is equally important that once a manager has developed the ability to recognize these factors early on, they can then make proactive changes instead of waiting for the trouble, and then, becoming a reactive decision maker which will have very different results. The internal environment is exactly the opposite o... ... middle of paper ... ...ng to succeed, then he must implement numerous changes to the internal environment in order to restore the gym to its former glory. Robert’s first change was to fire the current manager based on his terrible decision making and leadership. Robert’s next move was to hire an experienced fitness center manager that utilized a better leadership style that harmonized with the business and the staff. Next, Robert reinvented the mission and vision of the business that was clearly conveyed to the staff. Throughout the next few months, Robert spent a lot of time getting to know his staff and created a positive workplace culture. These changes implemented by Robert clearly were necessary in order to combat the negative internal environment that was driving the business into the ground. He quickly recognized the factors, and made the needed changes to turn the business around.
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