Internal Environment

Internal Environment

The environments in which an organisation operates can be divided into the Internal Environment and the External Environment, which is further split into the External Operating and the External Macro environments.

The Internal Environment includes all those aspects of which the organisation has control over. Examples of these aspects may include:

Ethics and Social Responsibility

Ethical and Social Responsibility, Ethics refers to the applications of moral standards to management behaviour meanwhile Social Responsibility is the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.


Employees are a worker under an employer’s control. The selection, training and termination of the organisation’s employees is the sole responsibility of the organisation and does not affect the external environment.


Costs refer to all expenditures and liabilities of the organisation. An organisation has control and responsibility over their own costs.

Management Structures

Management Structure describes the ways in which parts of an organisation are formally arranged to achieve objectives. Each organisation is able to determine how it will be structured.

Corporate Culture

Corporate Culture is a set of unwritten or informal rules that dictate how people in an organisation should behave in any given circumstances. These are rules are based on the beliefs, values, ideas and expectations shared by the members of the LSO. It is the role of the manager to ensure that the corporate culture of the organisation is positive and beneficial to the organisation.


Policies refer to a set of broad guidelines to be followed by all employees when dealing with important areas of decision-making. It is in the form of a document. Each organisation implement and abide by their own set of policies that they have developed.

Management Styles

Management Styles refers to the behaviour and attitude of the manager. An organisation, in particular the managers are able to choose and alter the management styles that they adopt.

Management Skills

Management Skills refers to the ability to do something well, gained through training or experience. Organisations are able to choose, train and teach the skills that they desire to be used by its employees.

Management Roles

Management Roles includes the roles of Planning, Organising, Leading and Controlling. The managers of a large-scale organisation determine their own management roles, and this does not affect the external environment.