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: On a smaller scale, relationship politics may also influence culture. Competing against other organizations for clients or market share can be political in nature and influence the way an organization chooses to operate. Politics on a small or a large scale can change company goals and objectives and the way they choose to work towards them. Economic Factors
The economy plays a role in our everyday lives. How much money we make, how much money we spend, wants and needs, competitive pricing, etc. 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.