What Are The Four External Environmental Factors And Six Internal Factors That Help Organizations Achieve Optimal Function?

The aim of organisations is to reach and achieve optimal function. They want to make the most out of their surroundings and current environments in order to them to do this. The four external environmental factors are the economy, the government, the legal aspects and the technological advances that are being made. Alternatively, there are also internal factors which need to be considered, and these are the employees, distributors, shareholders, suppliers, partners and labour supply. All contribute massively to helping organisations achieve optimal function.

Firstly, and most importantly, is the economic side of things. This is extremely important for the organization. If there is an economic problem, the company could have difficulty succeeding and therefore would need to focus on adapting other aspects to make up for the loss of economic funding. The government can be the key to doing this, they control the political climates for countries which would make or break a business with regards to them agreeing or going against current political ideas. This also connects to the legal side of things. Current laws could prevent businesses and companies from doing certain things and producing certain goods. Also, technology is today becoming very important. It is breaking the boundaries with regards to what can and cannot be produced and made, thus giving organisations much more freedom.

Finally, organisations achieve optimal function when they have the internal factors right. These rely solely on the company keeping control of the factors and making sure that they are all working to the requirements and standards of the company itself.

An organization's environment plays a vital role in its optimum functioning. When an organization handles its environment properly, it can handle all.

The Four external factors that help organizations achieve optimal function are as follows:

- Economy: Economy plays a vital role in the success of a company. The economic growth, inventory levels, inflation rate, future trends, exchange rates, etc all determine the success of a business.

- Government: Government plays a vital role in forming the political climate and stability of a country. The policies of a government will define the corporate and personal taxes, export restrictions, import tariffs etc.

- Legal: The laws of a country determine the labor laws, union laws, licensing laws etc.

- Technology: Technology is important because a company must follow it in order to achieve success. The level of technology determines the industrial productivity, new products and services, cost and accessibility of services etc.

The six internal factors are as follows:

- Suppliers
- Shareholders
- Distributors
- Employees
- Partners
- Labor Supply

What external and internal environmental factors are there that need to be taken into account , including economic or sociological factors, that can impact on your  real estate business in south africa ?
Jean.

Discuses the external environmental factors, and how they impact the human resource management in the south african organisation