An organizational environment comprises the forces, both external and internal, that impact the organization’s operations. Such forces are likely to hinder or facilitate how the organization accesses resources, which means they can offer opportunities and pose threats. This brief paper details the components of an organizational environment and their impact. The paper also describes the factors causing environmental complexity for an organization and summarizes the difference between individual and organizational ethics. Similarly, it explores the concept of corporate social responsibility and an organization’s financial performance. Beyond that, it analyzes the ethical responsibility of Clark Wilson and the architectural firm.
Components of Organizational Environment and the Impact of Rapid Environmental Changes
An organizational environment refers to the external and internal variables that affect the behaviour and activities of an organization. It comprises many elements that impact and shape how an organization runs, makes decisions, and interacts with its stakeholders. The internal components consist of the elements that influence the behaviour and performance of an organization. They encompass the company’s structure, culture, and people resources (Hanelt et al., 2021). In essence, organizational culture refers to the shared ideas, values, and standards that influence the conduct of employees inside an organization. In addition, the organization’s structure describes how duties and responsibilities are split, who reports to whom, and how decisions are made. Concerning human resources, it is crucial to note that employees are the organization’s backbone. Therefore, the organization’s human resources quality substantially influences its performance. Employee morale, job satisfaction, and motivation are crucial to a firm’s performance.
On the other hand, the external components that comprise an organization’s environment include the following. Firstly, the political environment comprises the rules, regulations, policies, and institutions that affect an organization. The success of an organization is significantly influenced by political aspects such as government stability, tax regulations, and labour laws. Secondly, the economic environment is defined by the availability of resources, consumer spending habits, and the amount of inflation in the economy (Hanelt et al., 2021). Economic issues such as recession, interest rates, and customer confidence may dramatically affect a firm’s performance. Moreover, there is the technical environment, which refers to technological changes that affect a company. In this case, the organization is influenced by the pace of technological change, the accessibility of technology, and the creation of new technologies.
Rapid changes in the environment may have a significant influence on enterprises. The rapid rate of change in the modern world has produced a highly dynamic environment in which firms must continually adapt and develop to stay competitive. Rapid environmental changes may have both beneficial and adverse effects on companies (Tran, 2017). Regarding the positive impact, it is vital to recognize that fast environmental change may stimulate creativity inside firms. By consistently adjusting to new difficulties and opportunities, firms may develop new products and services to fulfil their consumers’ shifting demands.
However, quick environmental changes may have enormously detrimental effects on an organization. Rapid environmental changes may lead to organizational upheaval and instability. This may result in reduced efficiency, decreased production, and diminished product and service quality (Hanelt et al., 2021). Adapting to fast environmental changes may also be expensive for organizations. This might include the price of integrating new technology, retraining staff, and reorganizing procedures, which may impair staff morale, client loyalty, and overall performance.
Factors Causing Environmental Complexity for Organizations: the Case of Google
As a global leader in the technology industry, Google works in a diverse and complex environment. Technological, economic, and regulatory aspects are three significant factors that contribute to Google’s environment’s complexity. Due to the fast development of technology and Google’s intention to keep up with industry developments, its technological complication has evolved. This process entails the integration of these new technologies into current systems, which may be a difficult and time-consuming endeavour (Tran, 2017). In addition, the corporation works in a highly competitive sector, posing a continual technological challenge.
Also, the economic complexities of the corporation stem from its worldwide activities. Google operates in various countries with distinct economic conditions, including currency, taxation, and labour costs. This requires a comprehensive awareness of the economic situation in each nation, as well as the capacity to adapt swiftly to any changes. Additionally, the organization must adequately manage its resources to preserve its competitive advantage in the global market (Singh & Misra, 2022). Lastly, the regulatory complexity results from the rigorous restrictions the business must adhere to for effective operations. Google is a highly regulated business, requiring it to comply with new rules and laws. This may be particularly difficult for the organization since it works in various nations, each with its legislation. Additionally, the organization must be prepared to adapt swiftly to changes in these requirements since noncompliance may result in substantial fines and penalties.
The environmental complexity with which Google must contend may result in organizational complexity in various ways. First, the organization must handle the many environmental complexity-causing elements, which need a high level of internal coordination and communication. Secondly, the organization must be flexible and adaptable to react promptly to environmental changes. Finally, the organization must sustain its competitive advantage in an always-changing environment that strongly emphasizes innovation and ongoing development (Hanelt et al., 2021). In addition to navigating a complicated and frequently changing external environment, the corporation must ensure that its operations are efficient, effective, and compliant with all applicable rules and regulations. To do this, Google must be flexible and adaptive, constantly reassessing its tactics and practices to guarantee that it keeps up with the ever-changing environment.
The Difference Between Individual Ethics and Organizational Ethics
Individual ethics refers to the values, beliefs, and principles that influence a person’s actions and decisions. Individual ethics are influenced by several variables, including parenting, life experiences, social background, and moral and religious views. In contrast, organizational ethics refers to the moral principles, values, and standards that regulate the conduct of employees inside an organization (Elango et al., 2010). It establishes the standards for conduct and decision-making inside the business and ensures everyone is working towards the same ethical objectives. Individual ethics may be traced back to a person’s upbringing, personal views, religion, and cultural background. In contrast, the company’s mission statement, code of conduct, and cultural standards are the foundation of organizational ethics.
Employers may influence workers’ morals by enforcing policies such as a code of behaviour. Workers must abide by the highest ethical standards in a code of conduct. All workers should know and understand this code of conduct, which should be reviewed often to ensure its continued relevance and effectiveness. Employee Training is another way businesses show they care about their workers by teaching them the right way to behave in the workplace (Elango et al., 2015). Employees may learn how to put ethical concepts into practice in various circumstances via case studies and hypotheticals presented during training. Organizations may also influence employee values by setting a good example. Executives and managers should set the standard for ethical conduct by acting ethically in all contact with staff members.
The Relationship Between Corporate Social Responsibility and Organization’s Financial Performance
The premise of this argument is that corporate social responsibility (CSR) is beneficial to businesses since it boosts an organization’s reputation and customer loyalty, both of which contribute to higher revenue and greater profits. Businesses participating in CSR programs such as volunteering and philanthropy may boost their connections with local communities, resulting in more incredible support and profitable marketing strategies. This may eventually result in a rise in brand awareness and consumer loyalty, which can translate to a boost in financial success (Rexhepi et al., 2013). A business may lower its operational expenses and increase its profits by cutting waste and saving resources. Customers that care about environmental impact will be more loyal to brands that share their beliefs, and those firms may benefit from these measures.
Ethical Responsibility in the Case of Clark Wilson
In this case, Clark Wilson’s recommendation that the file remains withheld from its rightful owner, Jonathan, was immoral and proved that he lacks absolute integrity and managerial and leadership acumen. As a leader, the most critical moral obligation was to contact Jonathan and provide him with his papers, as Janelle considered (Daft, 2008). Given Wilson’s prominence within the company as a senior midlevel manager, he must exhibit the qualities of a capable manager, equipped with astute managerial skills and ethical practices such as honesty, integrity, and openness (Alvesson, 2010). Wilson ought to have ensured that Jonathan’s papers were returned by letting Janelle keep calling. By failing to demonstrate effective moral behaviour and work ethics, he fails in his duty as a leader and manager of a reputable architectural firm to act as a role model to his juniors, such as Janelle.
Conclusion
Consequently, an organizational environment comprises external and internal forces that impact the organization’s operations. This refers to the external and internal variables that affect the behaviour and activities of an organization. The environment comprises many elements that impact and shape how an organization runs, makes decisions, and interacts with its stakeholders. As a global leader in the technology industry, Google works in a diverse and complex environment. Technological, economic, and regulatory aspects are three significant factors that contribute to Google’s environment’s complexity. One of the factors at play in the organizational environment is organizational ethics; this refers to the moral principles, values, and standards that regulate the conduct of employees inside an organization. The premise of this argument is that corporate social responsibility (CSR) is beneficial to businesses since it boosts an organization’s reputation and customer loyalty, both of which contribute to higher revenue and greater profits. Based on Wilsons` case, failure to demonstrate effective moral behaviour and work ethics led to the failure in his duty as a leader and manager of a reputable architectural firm to act as a role model to his juniors.
References
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Rexhepi, G., Kurtishi, S., & Bexheti, G. (2013). Corporate social responsibility (CSR) and innovation–the drivers of business growth? Procedia-Social and Behavioral Sciences, 75, 532-541.
Singh, K., & Misra, M. (2022). The evolving path of CSR: toward business and society relationship. Journal of Economic and Administrative Sciences, 38(2), 304-332.
Tran, S. K. (2017). GOOGLE: a reflection of culture, leader, and management. International Journal of Corporate Social Responsibility, 2, 1-14.
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