Culture and organizational behavior are two concepts that are intertwined and have a significant impact on the success of a business. Culture refers to the shared values, beliefs, attitudes, and behaviors that shape the way people interact within an organization. Organizational behavior, on the other hand, involves the study of how people behave within the context of an organization, and how this behavior can be influenced to achieve the organization's goals.

Internal and external influences play a crucial role in shaping an organization's culture and behavior. Internal influences refer to factors that are within the organization's control, such as leadership, communication, and organizational structure. External influences, on the other hand, are factors that are outside the organization's control, such as economic, political, and social factors. In this article, we will explore the impact of internal and external influences on culture and organizational behavior.

Internal Influences

Leadership

Leadership is one of the most crucial internal influences that shape an organization's culture and behavior. Leaders set the tone for the organization, define the vision and mission, and guide the employees towards achieving these goals. The leadership style adopted by an organization's leaders can have a significant impact on the culture and behavior of the organization.

For instance, a democratic leadership style, where decisions are made through a collaborative process, can create a culture of inclusivity, transparency, and teamwork. In contrast, an autocratic leadership style, where decisions are made by a single individual, can create a culture of fear, mistrust, and resentment.

Communication

Communication is another critical internal influence that impacts an organization's culture and behavior. Effective communication fosters transparency, trust, and collaboration among team members, which can lead to a healthy and productive work environment. On the other hand, poor communication can lead to misunderstandings, conflicts, and a toxic work environment.

Organizational Structure

The organizational structure of an organization also plays a significant role in shaping its culture and behavior. A flat organizational structure, where decision-making is decentralized, can foster innovation, creativity, and empowerment among employees. In contrast, a hierarchical organizational structure, where decision-making is centralized, can create a culture of rigidity, bureaucracy, and micromanagement.

External Influences

Economic Factors

Economic factors such as inflation, recession, and unemployment can have a significant impact on an organization's culture and behavior. During tough economic times, organizations may resort to cutting costs, downsizing, and reducing employee benefits, which can create a culture of fear, anxiety, and job insecurity. On the other hand, during economic booms, organizations may invest in employee training, offer competitive salaries and benefits, and foster a culture of growth and development.

Political Factors

Political factors such as government policies, regulations, and trade agreements can also impact an organization's culture and behavior. For instance, changes in tax policies, labor laws, and environmental regulations can affect the way organizations operate and interact with their stakeholders. Political instability and corruption can also create a culture of mistrust, uncertainty, and unethical behavior.

Social Factors

Social factors such as demographic changes, cultural norms, and consumer preferences can impact an organization's culture and behavior. For instance, an organization that operates in a multicultural environment may need to adapt its culture and behavior to accommodate the diverse needs and expectations of its stakeholders. Similarly, an organization that caters to a younger demographic may need to adopt a more casual and flexible culture and behavior.

Internal and external influences play a crucial role in shaping an organization's culture and behavior. Internal influences such as leadership, communication, and organizational structure can create a healthy and productive work environment, while external influences such as economic, political, and social factors can impact an organization's operations and interactions with its stakeholders. To create a strong and sustainable culture and behavior, organizations need to be aware of these influences and adapt their strategies accordingly. By doing so, they can foster a culture of innovation, collaboration, and growth, and achieve their goals in an ever-changing business environment.