The organizational environment consists of external forces that can influence how an organization operates. It includes the task environment of suppliers, customers, and competitors that directly impact the organization. The general environment also affects the task environment through broader economic, technological, social, political and global forces. Managers must analyze both the task and general environments to make strategic long-term decisions and effectively adapt the organization to changes in these external conditions.

1. MANAGING THE
ORGANIZATIONAL
ENVIRONMENT

2. WHAT IS THE
ORGANIZATIONAL
ENVIRONMENT?

3. The organizational environment is a set
of forces and conditions outside the
organization’s boundaries that have the
potential to affect the way the
organization operates.

4. Changes in the environment create
opportunities for managers to strengthen
their organizations.
However, other changes pose a threat if
organizations are unable to adapt.

5. The task environment is the set of forces
and conditions that affect an organization’s
ability to obtain inputs and dispose of its
outputs. These have the most immediate
and direct effect on mangers because they
pressure and influence managers on a
daily basis.

6. Forces in an organization’s general
environment have profound effects on
its task environment. These forces are
economic, technological, socio-
cultural, demographic, political and
legal, and global.

7. Forces in the task environment result
from the actions of suppliers,
distributors, customers, and competitors,
and have a significant impact on short-
term decision-making.

9. Managers must constantly analyze
forces in the general environment
because these forces affect long-term
decision-making and consequently, the
internal task environment.

10. THANKS