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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.
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.LeadershipLeadership 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.
The formal structure of an organization as represented in an org chart that indicates reporting lines and authority levels.EmployeesEach 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 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.
The shared values, norms, habits, expectations, symbols, stories, mission and vision of an organization that is formed through shared experience over time.RelationshipsThe relationships that exist within a firm represents a power structure that is undocumented.ProcessesThe formal business processes of the organization.
SystemsThe systems in place that must be used to accomplish things. Internal ControlsInternal controls such as budget controls and project reviews that are required to get anything done.Organizational ClimateThe 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.
ResourcesThe resources available such as budget or office space.CapabilitiesThe 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.
TalentThe 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.ConstraintsLimits to resources, systems, capabilities, culture and talent.
Organizational Culture
This is the complete list of articles we have written about organizational culture.
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An overview of organizational culture with examples.
An overview of power distance with examples.
The common types of meeting.
The definition of hubris with examples.
An overview of sustainability with examples.
The definition of cross-functional team with examples.
The definition of people operations with examples.
The definition of elitism with examples.
An overview of bureaucracy with a list of its basic characteristics.
A list of social processes, absurdities and strategies related to office politics.
The definition of sidelining in business with examples.
The definition of civility with examples.
The definition of schadenfreude with examples.
The definition of jargon with examples.
A guide to career development.
The definition of political climate with examples.
The definition of work culture with examples.
A list of examples of a negative company culture.
The definition of blame shifting with examples.
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