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The Internal Environment
“The internal environment of an organization refers to events, factors, people, systems,
structures and conditions inside the organization that are generally under the control of
the company. The company's mission statement, organizational culture and style of
leadership are factors typically associated with the internal environment of an
organization. As such, it is the internal environment that will influence organizational
activities, decisions and employee behavior and attitudes. Changes in the leadership
style, the organization's mission or culture can have a considerable impact on the
organization” (Discussion section, para. 2).
The External Environment
“The external environments are those factors that occur outside of the company that
cause change inside organizations and are, for the most part, beyond the control of the
company. Customers, competition, the economy, technology, political and social
conditions and resources are common external factors that influence the organization.
Even though the external environment occurs outside organization, it can have a
significant influence on its current operations, growth and long-term sustainability.
Ignoring external forces can be a detrimental mistake for managers to make. As such, it
is imperative that managers continually monitor and adapt to the external environment,
working to make proactive changes earlier on rather than having to take a reactive
approach, which can lead to a vastly different outcome”(Discussion section, para. 3).
Keys to Successful Organizational Change
Change at organizational level is something that not all of us are familiar with and don’t
feel comfortable with. By organizational change, I mean big changes to the way a
company or organization is operating. For instance, one of the common changes I have
seen is when an organization is split into two with one group taking on a more coveted
piece of the business while the other taking on a monotonous responsibility. Presenting
a change like this can affect the morale of an organization if not handled well. Another
situation I am familiar with is roll-out of new processes to an organization that does not
have a set structure. People do not react well when they are told that their old way of
working is not as effective as they think it was. ( Santosh Ravindran, 2007).
According to Paul R. Plotczyk, the following are keys to successful organizational
change.


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