Organizations operate in a complex business environment where things can and cannot be controlled. Managers are skilled and trained to how analyze and improve the organization for it to survive, grow and improve in the changing world. The management system is divided into two levels. Internal factors in an organization can usually be managed and dealt with, like labor, money, materials and equipments. These inputs can be turned into useful products, goods or services and make it available to the consumer. On the other hand external factors are hard to manage. They consist of all outside institutions: competitors, customers, suppliers and economic, technological, political, cultural and demographic objectives.
Organization's internal environment consists of owners, board of directors, employees, and the actual physical work area. Owners are either individuals or partners who have legal ownership to the company. Board of directors is chosen by stockholders. They rarely get involved in how the company is being run; they just oversee the management of the company.
Employees are the workforce of the company. Today that workforce is getting more and more diverse. More women and minorities are entering in into the workforce. These employees receive full company benefits, most of them are union workers. Also companies are taking advantage of temporary agencies. These "temps" work for short periods of time, they are not qualified for any benefits, and they just perform their duties and move on. These employees could be working in any work environment; it could be an office in a skyscraper in downtown, or warehouse in the valley. Some companies have offices or cubicles for each employee, or they work in one big office. Sometimes there are computers in the big glass office and/or no chairs for them to sit.
External environment is divided into two: general and task. General environment...