Title: External Factors of Organizational Culture | Organizational Behavior / Human Relations
Headings: External Factors of Organizational Culture
External Factors of Organizational Culture
What you’ll learn to do: Describe the external factors associated with organizational culture
Learning Outcomes
Political Factors
Economic Factors
Industry Factors
Social Factors
Technology Factors
Practice Question
Managing External Factors
Practice Question

Content: are all factors in financial decisions we make on a daily basis. Organizations are also heavily influenced by economic factors. A market crash or a recession will directly impact the sales of an organization. When people are no longer able to afford a product or choose to spend their money elsewhere, companies are directly impacted. On the other hand, companies are affected when the economy is good and people are able to spend or invest more money. Adapting to the changes in the economy and being able to adjust organizational strategies to accommodate for them, is essential to company survival. Industry Factors
In every industry, there are a number of competitors. The actions your competitors take may influence the decisions you make within your own organization. Being able to adjust company culture to adapt to your competition is necessary to ensure company longevity. Other industry factors include updated industry standards and safety requirements that change over time.