There are many internal and external forces that can affect an organization.
Internal and external stimuli that can impact an organization differ depending on the type of organization and its internal and external environments. Quite often, the internal changes that arise, such as reorganization, layoffs, or changes in standards are the result of external stimuli that must be addressed or compensated for. In other cases, internal changes are the result of new directions imposed on the company by its leadership.
Internally an organization sets up its own culture. It creates its own internal structure, mission, and fiscal policies. These internal forces are created to engage the external forces that include, but aren't limited to, an organization competition, the economy, and the demands of the customers. The way that these forces are handled speaks to the effectiveness of an organization.
Having knowledge of a system and its development will contribute to a well-managed organization. Keeping up to date on community needs, technology, consumer demands, and economic perspectives influence organizations to be in a better position to fulfill their mission to improve technology and service quality
having this knowledge, an organization can be in a better position to fulfill the organizational mission. Conducting in depth surveys, receiving information on the shifting behavior of the American workforce, building research that examines and defines what drives and motivate workers, and the response to the worsening economical and employment outlook, will provide valuable insight on recruiting, motivating, and retaining its employees.
Fiscal policy is "government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates, and government spending, in an effort to control the economy." 4Fiscal policies are a much broader topic than that because although the government can influence the economy and productivity levels, individual public and private organizations can have their own fiscal policies. Organizational behavior can be affected by how conservative or aggressive its fiscal policy is and it relates to success in achieving its goals. An example of fiscal policy on a small scale is how a finance department can write off invoices up to certain amounts.
