External factors that affect companies

Topics: Complexity, Complex system, Organization Pages: 3 (790 words) Published: November 21, 2014
Reaction paper #1
Maria Camila González Gómez
Organizational Theory

External factors

When mentioning external factors that conspire to affect an organization we can take into account environmental uncertainty, organizational size and structure, government, raw materials, human resources, markets, economic conditions of the country, financial resources, technology, and a few more that truly create a challenging and complex operating environment. And the real impact is that all of them affect organizational performance as well because if managers dont know how to respond in a right manner to these circumstances, the organization could start to fall apart and eventually, dissapear. There are plenty of ways to react and deal with this external changes, and those include changes in organizational strategies that could help to build a stronger structure within the organization. And here, managers need to coordinate the resources they’re working with very carefully to produce a variety of behaviors that can deal with environmental change. When an organization has not developed enough internal complexity to adapt to the environment it can’t survive, but, on the contrary, and organization with too much complexity would just waste resources and, perhaps, lose its ability to react to the environment. A crucial point I would like to highlight is the leader’s perception of the strategy and situation of change because processes and changes actually occur because of this perception. Modern companies are characterized by having a complex adaptive system, as well as a complex, moving market which constantly switches the environment conditions and occurences in which the organization operates. And companies are complex because they are dynamic nets of interactions and they are adaptive because they have a collective behavior that vary and self-organizes responding to an event. All of this said, a business needs to reforce and strongly arm their internal complexity,...
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