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The organization also has an Internal environment, which includes the elements within the organizations boundaries.
The internal environment is composed of current employees, Management, and especially corporate culture, which defines employee behavior in the internal environment and how well the organization will adapt to the external environment
If an organization faces increased uncertainty with respect to competition, customers, suppliers or government regulation, managers can use several strategies to adapt to these changes, including boundary spanning roles, inter-organizational partnerships, and mergers or ventures
Some values become so deeply embedded in a culture that members are no longer consciously aware of them
These basic underlying assumptions and beliefs essence of culture and subconsciously guide behavior and decisions
In some organizations a basic assumption might be that people are essentially lazy and will shirk their duties wherever possible. Thus, employees are closely supervised and given little freedom and colleagues are frequently suspicious of one other.
These factors include, for example, the economy, customers, governmental policies, competitors’ actions, industry conditions, control over proprietary technology and decisions made by previous managers.