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Word Count: 372
The external environment is everything outside the walls of the organization It is the wider society wherein the organizations employees come from and continuously interact with It is a broader culture that is comprised of assumptions values norms and behaviors It is an erratic economy in which the organization has found an opportunity to do business and will continuously seek for opportunities to gain or maintain competitive advantage competencies resources and strategies It is a government that has the power to enhance or limit the activities of the organization by law The external environment is an enormous complex and variable system outside the organization With this in mind it is usually the organization that must adjust to its external environment There are so many things in the external environment that is beyond the control of the organization and is eaten up by the bigger system It is the reality of the organization Thus employees needs and wants in the organization are derived from its external environment The employees needs are the most basic tangible and intangible things needed by people to survive like food shelter medicine acceptance religion love etc And yet even the basics many vary since each employee has unique individual needs The employees wants are the luxuries or bonuses they would like to have such as awards fame fortune power etc The vision mission and objectives of an organization must always take into account how its external environment affects the organization in order to have a clear definition of its existence and purpose and smart and realistic ways to achieve these When an organization knows its position and role in the society its employees will also know what they may expect to gain or sacrifice by being a part of the organization and how their needs and wants may or may not be satisfied This prevents conflict in the sense that employees will not end up being disgruntled if their expectations are
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