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18 Examples of an Internal Environment

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An internal environment are the current realities of an organization that influence productivity, efficiency, work quality, performance and strategy. These represent assets that can be leveraged to achieve the objectives of a department, team or individual. Alternatively, elements of an internal environment can represent obstacles and hindrances to achieving objectives. The following are common components of the internal environment.

Working Conditions

The working conditions at a firm such as overtime hours or work from home policies.

Tone At The Top

The example set by executive management that tends to impact behavior at every level of a firm. For example, if executive managers demonstrate respect for customers this may influence others to do the same.


Leadership is the ability to influence both with and without formal authority. For example, a technical visionary at a firm that everyone respects such that they can defeat ideas they view as flawed.

Organizational Structure

The formal structure of an organization as represented in an org chart that indicates reporting lines and authority levels.


Each position in an org chart is filled with a person who has a personality, character, world view, habits, talents and set of relationships within the organization.

Performance Management

Performance management is the process that aligns work and behavior to objectives. For example, a customer service team that can get away with being rude to customers versus a team where this would be quickly detected as low performance.

Organizational Culture

The shared values, norms, habits, expectations, symbols, stories, mission and vision of an organization that is formed through shared experience over time.


The relationships that exist within a firm represents a power structure that is undocumented.


The formal business processes of the organization.


The systems in place that must be used to accomplish things.

Internal Controls

Internal controls such as budget controls and project reviews that are required to get anything done.

Organizational Climate

The prevailing attitude at a firm such as an environment of aggressive change and competition versus a firm where people resist change and avoid competitive battles.

Office Politics

The way that power is distributed and decisions are made in a firm.


The resources available such as budget or office space.


The business capabilities of a firm such as a company with mature project management capabilities that can manage complex projects in a reasonable way.


Practical knowledge that exists within the organization. For example, a firm that is well-versed in information security.


The talent of a single employee can have a large impact on a firm such as a director of product development who is always inventing winning products.


Limits to resources, systems, capabilities, culture and talent.


The following are basic elements of the internal environment of an organization that may influence its performance and the employee experience.


An overview of the internal environment and addition examples:
Overview: Internal Environment
The internal realities of an organization that influence productivity, efficiency, work quality, performance and strategy.
Related Concepts
Next: External Environment
More about organizational culture:
Adaptive Performance
Bias For Action
Business Strategy
Catfish Management
Change Fatigue
Change Management
Corporate Governance
Corporate Identity
Corporate Image
Corporate Memory
Corporate Narcissism
Creativity Of Constraints
Culture Fit
Culture Of Fear
Curiosity Drive
Decision Making
Digital Maturity
Disability Etiquette
Employee Behavior
Employee Dissatisfaction
Employee Expectations
Ethical Climate
Expert Culture
Failing Upwards
Failure Is Not An Option
Genchi Genbutsu
Goal Setting
Heliotropic Effect
Human Error
Human Factors
Humble Leadership
Hygiene Factors
Internal Branding
Internal Environment
Intrinsic Motivation
Knowledge Loss
Knowledge Management
Leadership Style
Lessons Learned
Malicious Compliance
Management By Absence
Management By Walking Around
Market Culture
Matrix Management
Negative Culture
Negative Selection
Nudge Theory
Office Politics
Organizational Capital
Organizational Complexity
Organizational Culture
Organizational Resilience
Organizational Structure
Organizing Principle
Performance Management
Petty Authority
Political Correctness
Professional Conduct
Quality Of Life
Red Tape
Resistance To Change
Satellite Office
Self-Organizing Team
Shadow Of The Leader
Strong Culture
Team Culture
Tolerance For Disagreement
Trained Incapacity
Unspoken Rule
Work Culture
Work Environment
Work Ethic
Work-Life Balance
Working Conditions
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