Organisational Environment and Culture

Organisational Environment Definition: The organisational environment is technically anything which is external to an organisation and can affect it in anyway, causing the organisation to react to this change. Fro example if a competitor lowers their prices, then an organisation in the same market may have to react by also lowering its prices, or saying that they have a better quality product which could help brand image and in turn sales, more than selling for cheaper.

Organisational Culture Definition: Cultures in organisation is defined by how the organisation is run, how the personalities within the organisation interact with each other and also how the structure of the company is set out.

Stable Environments

From research it has been found that companies in more stable, simple environments have more standard, formalised cultures which are lead in a central way, not allowing much innovation or out-of-the-box thinking. This is most likely to do with the fact that their isn’t much to change all the time and therefore employees are expected to just get on with their job.

Complex Environments

This is in contrast to complex, unstable environments, where the culture is more likely to be informal, free-flowing and adaptable, as this leads to innovations, ideas to make change and ideas to help come back when a competitor, or another sector, has made a change.

Key Learning Points

  1. How would you Define the Organisational Environment?
  2. How would you Define Organisational Culture?

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