[Solution] Internal Environment
Created at:
Author: Sarah Bennett
While the external environment focuses on factors outside the organization, the internal environment consists of the components within the organization that influence its operations and performance.
The Internal Environment
There are five components of the internal environment:
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Owners are the people or other organizations with legal property rights to the organization.
- Shareholders of a publicly traded company are one example. Shareholders elect a board of directors to represent their interests.
- Employees work for the organization. They may be permanent or temporary, full-time or part-time, non-union or union. An important trend is that employees are becoming more diverse.
- The physical work environment is where people do the work of the organization, for example, a factory or office building. Increasingly, work that can be done remotely is being done in employees' homes, making these places part of the organization's physical work environment.
- Culture is the set of values, beliefs, behaviors, customs, and attitudes that give the organization a unique identity in terms of what it stands for, how it works, and what it values. Though difficult to observe or measure, culture is a vital part of the internal environment.
Select the term that best completes the following sentences.
The people with legal property rights to the organization are the .
View Explanation
Owners have legal property rights to the organization.
Employees work for the organization, and a board of directors represents shareholder owners' interests.
An office building where employees work is part of the organization's .
View Explanation
The physical work environment is where people do the work of the organization, so this office building is an example of the physical work environment.
Culture is the set of values, beliefs, behaviors, customs, and attitudes that define what the organization stands for, how it works, and what it prioritizes.
