External Factors of Organizational Performance

External Factors of Organizational Performance

Organizational performance means the accumulated result of the whole organization of the performance of all employees depends on internal and innovative factors. It means the actual output or results of an organization measured against its intended outputs.

External factors/external environment of organizational performance: The following factors that are influence activities within the organization.

Human and cultural factor: Among the many Human and cultural factors that affect Organizational performance are technical and managerial skills and abilities.

Technology: Another external factor is the technology in the society. This includes not only equipment, such as the microcomputer or the robot, but also techniques for using the equipment, and the theoretical and applied knowledge behind it.

Natural resources: The cost and availability of natural resources is another important external factor affecting what the organization does and how well it performs.

Economic factors:  Economic factors of importance include markets (the number of people wanting a certain product, the purchasing power that people have, the level of employment and unemployment, and the competition that exists for markets and resources.

Regulatory measures: Regulatory measure includes law, court decisions, and administrative regulations – also influence how organizations function and have particularly strong implications for human resource management.

Markets: Markets for whatever the organization is producing or want to produce will affect the firm’s profitability and long-term survival.