At first, we can try to understand the organizational environment before discussing the types of organizational environment. The organizational environment is a dynamic and changeable thing. This change appears frequently. Every move stands the challenges. It is highly essential for leaders and managers. And it increases the attention about the environmental changes. Each organization constitutes its environment, whether business or non-business. The organizational environment comprises its surroundings things. These affect its activities, operations, and steps favorably or unfavorably.
Environment hugs a lot of features like economic conditions, political situations, and images. The environmental forces – abstracts and visible – need careful analysis. The adequate and systematic review creates information compulsory for making judgments about the strategy. Managers cannot establish a sound and relevant strategy based on their instincts and guesses. They must use the appropriate information. From the analysis of their organizational environment, this information directly flows. However, there are discussed about the organizational environmental influences. And also types of organizational environment.
Understanding Organizational Environmental Influence:
Before the discussion about the types of organizational environment, understanding the organizational environmental influence is also important. Business managers must understand the various facets of the impacts of the external environment. They need to recognize that the external environment has many aspects. On the operations of a firm, they have a significant effect. They need to undertake an analysis of the environment regularly. It is particularly crucial for this reason. It developments or changes in the remote environment influence the business organizations. They also need to understand the influences of changes in the industry environment. In several ways, managers benefit when they appreciate and understand the impact of organizational environmental factors on business. Such as:-
- Knowledge of the types of organizational environment helps managers identify the direction to which they should proceed. They will travel along with a distinct way of changing course, wherever necessary. Without understanding the environment, managers are like a bicycle without a handlebar – no way of maneuvering while riding on a street.
- Managers can prepare to deal with the foreseen crisis in any of the issues in the environment. They can enrich crisis strategies for overwhelming crises that impact the organization.
- Exclusively in the external environment of the organizational environment, managers can separate those issues that are of precise interest to the organization.
- The key to achieving organizational effectiveness is understanding the environment in which the firm operates its business. Lack of knowledge is very likely to lead managers to uselessness because of ‘running on the incorrect road for getting the goal.’
There is a tried to understand the organizational environmental influence of strategic management. Now, we have to go to the main point as the types of organizational environment.
Types of Organizational Environment:
The types of organizational environments are the main topic of this discussion. However, we can classify the organizational environment into two broad categories. External and internal are the types of organizational environment. These are:-
- External Environment, and
- Internal Environment
These types of organizational environments are discussed below with relevant information to understand better.
External Environment; Types of Organizational Environment:
The first one is an external environment of the types of organizational development. An organization’s operations are affected by both types of organizational environments. Therefore, the managers need to clear analyzing of the features of the environments. As a result, they can enrich in themselves a consideration of the internal situation and external situations. Based on their understanding, they will be better able to set the required objectives for their organizations. Additionally, they formulate appropriate strategies to achieve those objectives.
Through an organization’s external factors is consisted of the external environment that affects its businesses indirectly. The external environmental factors reside outside the organization, which can lead to threats or opportunities. For the available analysis of the organizational environment types, the external environmental factors are also divided into two types. Such as:-
- General Environment or remote environment and also
- Industry Environment or Immediate operating environment
In the types of organizational environment, the strategy-creators must recognize the complexities and challenges of both the fundamental environmental aspects and the instant driving environmental factors. They should appreciate that the unknown environmental factors are widely overpowering due to their distantly located external environment.
Nevertheless, they can assume appropriate strategies to deal with these factors, usually collectively with other industry actors, to reduce the intensity of their impact on the businesses. Alternatively, the operating environmental factors are the immediate competitive circumstances of a company. These often regard as ‘specific environment’ or ‘task environment.’ These factors make the competitive environment of a company. When strategists consider both the remote and operating environments, they can become more proactive in the following discussions. You will find a full description of the global environment, staying the types of organizational environment.
Read more about External Environment Factors.
Internal Environment: Types of Organizational Environment:
The internal environment is the second of the types of organizational environment. The internal environment of an organization consists of the conditions and forces that exist within the organization. The internal environment portrays an organization’s ‘in-house’ situations. An organization has full control over these situations. Dissimilar to the external environment, the internal environment is much more straight manageable. For the available analysis of the organizational environment types, the internal environmental factors are also divided into several types. It comprises many internal factors of the organization. Such as:-
- Resources of the Organization
- Owners of Shareholders or Stockholders
- Board of Directors
- The culture of Organization, and
- Image or Goodwill of Organization and so on.
These are the types of organizational environment. And these are mentioned here shortly. In another article, it will be more elaboration about the types of organizational environment.