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Internal environment is the state of an organization. It is the sum total of all the conditions, processes and people that affect how the organization functions. The internal environment can be influenced by a variety of factors such as culture, leadership, organizational structure and strategy.
The following are the determinants of internal environment:
- Value system of the company
- Objectives of the company
- The organizational structure
- Resources available to the company
- Technological advancement
- Financial capabilities of the company
- The goodwill of the company
Internal environment is a term that describes the climate of an organization and its employees. It is influenced by the culture, leadership style, communication style, and employee engagement.
The following are some of the factors that determine an organization's internal environment:
- Culture - how an organization conducts itself internally;
- Leadership style - how leaders lead in their company;
- Communication style - how leaders communicate with employees;
- Employee engagement - how engaged employees are with their work.
The internal environment is composed of the various factors that influence an individual’s decision making, such as the physical environment, social environment, and psychological environment. These are all determinants of how a person feels about their work and their job.
Internal environments can be positive or negative for an individual. A positive internal environment would include things like feeling respected by one’s supervisor and colleagues, feeling satisfied with one’s work, having a strong work-life balance, and enjoying the culture at one’s workplace. On the other hand, a negative internal environment would consist of things like low levels of job satisfaction due to interpersonal conflicts with superiors or co-workers; having too many responsibilities; feeling unappreciated by one’s supervisors; experiencing high levels of stress in the workplace.
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