Factors That Impact Organisations - Essay Example

It is important for every organisation to have an insight into the external and internal factors that may affect the organization. An understanding of these factors will assist the managers to sort out the priorities of the business and also formulate strategic plans for the future. This paper will analyse the main external and internal factors that have an impact on organisations.

Internal factors refer to the factors that are within the organization. The main factors in this category are organizational direction, employees and business processes/relationships. Organizational direction is an important factor that deals with the aspect of leadership. It is essential for managers to adopt a leadership style that is effective. This is because the leadership styles of the organisation tend to affect the organizational culture. The second factor is employees. The strength of the employees is classified under the human technological aspect. Employees who are talented, hardworking and highly motivated tend to perform much better than those who are less talented and unmotivated. Lastly, business processes and relationships fall under the technological aspect whereby there is a need to ensure that the departments and employees' performance are able to achieve effectiveness and efficiency in the business operations (Leatherbarrow, Fletcher & Currie, 2010).