Discuss how organization structure interacts with the external environment to affect organizational performance.

Introduction

Today's society is diverse and rapidly changing and it is the organisation's ability to adapt or be in fit with the external environment that will determine its overall performance. Ethical issues arise throughout all organisations daily activities but it is the continual debate about what is right or wrong that will shape ethical decision making now and for generations to come.

This essay aims to investigate culture within the internal environment and how culture plays a role in an organisation's ability to fit in with the environment. According to (Samson and Daft, 2003:80) the internal environment is "composed of present employees, management and business culture". This essay will investigate how culture plays a role in the organisations overall success.

In addressing the issue it will be shown how the external environment has changed in terms of how organisations are evaluated. How changing an organisation's culture can help the organisation be in fit with the external environment and how the success of changing culture may depend on the level of employee moral development.

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It is argued that the organisation's performance depends on a fit between the organisation and its external environment.

Body

Key point 1: How the external environment has changed in terms of how organisations are evaluated.

The external environment has changed with respect to how organisations are evaluated today. According to ( Samson and Daft, 2003:79) the external environment is "all elements existing outside the organisation's limitations that have the possibility to affect the organisation". Companies around the world have started to realise that investors are not concerned exclusively with financial performance (Tschopp, 2003). The days of companies being evaluated on their financial performance are gone and companies are now finding that they are being evaluated on a more overall perspective.

Increasing the ethical obligations can help an...