Internal and External Factors Affectin an Organization

Introduction

Business environment can be both internal and external. It is crucial from an organizations point of view to be proactive to the environment and adapt to the highly volatile nature of it. With the changing market conditions and with high competition from the other firms in an industry it is essential to assess the environment before a crisis occurs.

An organization’s environment can be broadly divided into two main sections. First comes the internal environment. An organizations internal environment is composed of the elements within an organization. These factors normally tend to be employees, management, and specially the corporate culture of an organization.

On the other hand external environment tends to include factors which are not controllable by the organization. These factors will include political, economical, sociological, technological, ecological as well as legal factors which are beyond the control of the organization.

Both internal and external environment will be discussed with dept in a later part of the report. In the report we are going to discuss both the internal and external environmental factors that can have an impact on an organization HR and we will be illustrating how these factors have had an impact our selected organization and that being Engineering Consultants (pvt) limited. We will be discussing how the organization’s external and internal environment has had an impact on company’s HR so far.

Internal environmental factors that affect a company

Internal environment of an organization is a composition of elements within the organization as it was said earlier. This can include factors such as employees, management, and corporate culture which define the employees’ behaviour within an organization. One of the things to be noticed in the internal environmental factors is that some of the factors can influence the organization as a whole but some of them can only affect the managers. A manager’s leadership...