External Environment for human behavior in business.

Essay by miabanzon February 2006

download word file, 1 pages 2.5

The external environment is everything outside the walls of the organization. It is the wider society wherein the organization's employees come from and continuously interact with. It is a broader culture that is comprised of assumptions, values, norms, and behaviors. It is an erratic economy in which the organization has found an opportunity to do business and will continuously seek for opportunities to gain or maintain competitive advantage, competencies, resources, and strategies. It is a government that has the power to enhance or limit the activities of the organization by law. The external environment is an enormous, complex, and variable system outside the organization. With this in mind, it is usually the organization that must adjust to its external environment. There are so many things in the external environment that is beyond the control of the organization and is eaten up by the bigger system. It is the reality of the organization. Thus, employees' needs and wants in the organization are derived from its external environment. The employees' needs are the most basic tangible and intangible things needed by people to survive like food, shelter, medicine, acceptance, religion, love, etc. And yet even the basics many vary since each employee has unique individual needs. The employees' wants are the luxuries or bonuses they would like to have such as awards, fame, fortune, power etc.

The vision mission and objectives of an organization must always take into account how its external environment affects the organization in order to have a clear definition of its existence and purpose, and smart and realistic ways to achieve these. When an organization knows its position and role in the society, its employees will also know what they may expect to gain or sacrifice by being a part of the...