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Internal and External Factors that may affect your organization mission and effectiveness

 



To start up a business is not an easy thing, but operating and manage is harder than just start up a business. There are always many obstacles are waiting at In front of the way. For example, the impact of the currency change, substitutes product, financial issues, and so on. As a result, some of the company has successfully overcome the difficulty, but some of the companies may fall down on the half of the road. However, the factors that cause all of this may be divide into two types are Internal factors and external factors.


 

INTERNAL

One of the most important internal factors that may affect the effectiveness of the organization is surely the structure of the organization. Generally, the organization has 4 types of structure, which is the functional structure, divisional structure, matrix structure, and also flat structure, each of them has its own advantages and disadvantage. A suitable type of organization structure is very important to differentiate the job occupation with the function and create the flow of communication throughout the company, and it will be easier to hold accountable. The structure that has been choosing is the functional structure which is also known as a bureaucratic organizational structure. The reason is functional structure is the more common and simple structure compared with other types of structure, which may help employees more quickly to have a better understanding of their responsibilities and adapt to their own job.

 

Another internal factor will be the leadership of employees, especially the employee who holding important positions such as the CEO. An employee with great leadership very important to unite the employee to work together but not to do their own job and do not cooperate with others. This will totally become the difficulty of communication and transferring of the information. However, if the employee leads their member well, every function and job will be neater and less confusing in work. Other than that, great leadership may help the member to grow up with real-time experience and training, learning. Indirectly the great leader makes the employee grow and increase the effectiveness of the work.

 

Besides that, the organization's culture is also very important for an organization. Organizational culture can also divide into many types such as the power culture, role culture, task culture, and personal culture, and so on. A good organization culture can provide good cooperation between members and bring the benefit to many of the aspects of the organization such as the employee may easier to know each other, cultivate feelings, and trust each other in the work. Try to ask,  if the employee cannot cooperate well, how can the organization operate effectively.

 



EXTERNAL

When come to the external factor, the most dangerous element that an entrepreneur cannot ignore was the competitor, unless the business idea was totally new and unique cannot be duplicate by other people. To achieve the success of the organization mission and business idea, it will become impossible if there are no capital or profit. However, the biggest influence from the competitor will be show on the profit, and entrepreneur should not be able to control what their competitor does. If there was not enough profit, it will totally bring an impact to the company and affect the business operation and effectiveness of the organization.

 

External factors are commonly difficult or cannot be predicted and control especially the economic trend. Entrepreneurs should always have a good sense of the trend change, and always implement good risk management. After that, an entrepreneur should adapt their business strategy to make the operation most suit to the economy to ensure the effectiveness of the organization. For example, when the economic forecast an economic depression, the organization will decrease the budget, eliminate some of the unimportant, and not urgently expenditures to decrease the influence of the economic trends. This shall be able to help the organization stay effective and less risk.

 

Another factor that may affect the effectiveness of the organization must be technology. One of the main reasons to develop technology is to bring convenience to human life. It was also mean that to make the operation and task become simple and easier. In fact, we can see the outcome of the development of technology in the history and nowadays. For example, the people before counting using the abacus but now the calculator came true, people before record the information with writing it in paper and so on, but nowadays people are record information on the computers and it was easier to search and sort out. In conclusion, the development of technology will greatly increase the convenience and effectiveness of the organization's operation.



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