What is Organizational Environment? Discuss Various Types of Organizational Environment.

The organizational environment is the set of forces surrounding an organization that have the potential to affect the way it operates and its access to scarce resources. The organization needs to properly understand the environment for effective management.
Scholars have Divided these environmental factors into two main parts as,
A) Internal Environment,
B) External Environment.

 

      A) Internal Environment: The internal environment consists of the organization's owners, board of directors, regulators, physical work environment and culture. In the internal environment include strength and weakness of an organization. Trade union, Management, Current employee, Share holders. 

     B) External Environment: In the external environment include opportunities and threats of an organization. In the external environment include legal, physical economic, technology, social, political, culture. The external environment consists of two layers. They are:

                1) Task Environment:    2) General Environment.

i) Task Environment: Task environment is composed of the specific dimensions of the organization's surrounding that are very likely to influence of the organization. It also consists of five dimensions: Competitors, Customers, Employees, Strategic, Planners and suppliers.

ii) General Environment: General environment is composed of the nonspecific elements of the organization's surrounding the might affect its activities. It consists of five dimensions: Economic, Technological, Sociocultural, Political-Legal and International.