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: First and foremost, organizations need to stay well-informed on up-to-date information. With daily changes within industry, the economy, and society, there is a lot of information to keep up with. Establishing roles within a company to research and report on new information is a great way to delegate a very important task. For example, some organizations have a research and development team that is responsible for researching and creating new products. Human resource teams may be held responsible for keeping up-to-date with information around hiring laws or wage laws. These individuals would be required to share their findings and help to create a plan to accommodate for these changes. Without a system in place to ensure the latest information is shared and discussed, companies may face compliance issues or lose a competitive advantage. Education is another way to manage external factors. For example, sustainability is a popular topic in today’s society. If a company chooses to become a more sustainable organization, it is important for them to establish a training and development program.