Internal environment of business

An organization's internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behavior. Although some elements affect the organization as a whole, others affect only the manager. A manager's philosophical or leadership style directly impacts employees. Traditional managers give explicit instructions to employees, while progressive managers empower employees to make many of their own decisions. Changes in philosophy or leadership style are under the control of the manager. The structure and politics of an organization affects the manner in which the organization responds to environmental change. Furthermore, it can be difficult to change cultural attitudes when the nature of an organization’s business environment has changed. Along with the external environment, internal environment of an organization also keep on changing. The five elements of the internal environment which are physical, technological, social, political, and economic, influence how the manager functions will be performed. The physical element of the internal environment includes such factors as air quality, temperature, noise, dust, radiation, and other conditions affecting employee health and safety. Managers revealed a high percentage of dissatisfaction with aspects of the physical environment of the workplace. The technological element of the internal environment relates closely to the physical element. It consists of the layout of the workplace; the process by which the work is performed; and the tools, equipment, and machinery used to perform the work. These factors in turn determine both the way work is processed and the requirements of the jobs performed by managers. The way in which work is organized affects interpersonal relations and interaction among the manager and employees within a work area. It influences the formation of informal work groups and the degree