Topic: Factors that impact on organisations It is important for every organisation to have an insight of the external and internal factors that may affect the organization. An understanding of these factors will assist the managers to sort out the priorities of the business and also formulate strategic plans for the future. This paper will analyse the main external and internal factors that have an impact on organisations.
Internal factors refer to the factors that are within the organization. The main factors in this category are organizational direction, employees and business processes/relationships. Organizational direction is an important factor that deals with the aspect of leadership. It is essential for managers to adapt a leadership style that is effective. This is because the leadership styles of the organisation tend to affect the organizational culture. The second factor is employees. The strength of the employees is classified under the human technological aspect. Employees who are talented, hardworking and highly motivated tend to perform much better than those who are less talented and unmotivated. Lastly, business processes and relationships fall under the technological aspect whereby there is need to ensure that the departments and employees performance are able to achieve effectiveness and efficiency in the business operations (Leatherbarrow, Fletcher amp. Currie, 2010).
On the other hand, external factors refer to those factors that an organisation do not have control of. The main factor in this category is competition. Competition refers to the level of concentration in a given industry. It is essential for an organisation to know how the competition is in the industry they operate in. Other external factors fall under socio economic, legal, political and ethical sub-categories. Socio economic factors deal with the attitudes, values and the concerns of the targeted consumers regarding their economic abilities. The legal, political and ethical factors focus on the need of an organization to abide to the business laws as well as the social responsibility and ethical standards of the customers (Leatherbarrow, Fletcher amp. Currie, 2010).
Leatherbarrow, C., Fletcher, J., amp. Currie, D. (2010). Introduction to human resource
management: a guide to HR in practice. London, Chartered.