Business Internal Environment and its Impact on the Management of People (Essay Sample)

The internal environment of a business refers to the events, conditions and factors within a business entity that define the choices and decisions made by the management, thereby affecting the behavior of the employees. Internal factors are those that have no external influence in that they are initiated by elements within the business premises(Westminster Conference Center:1997,p.45) . The environment under which the business personnel are exploiting their skills is a significant factor in production since it consequently relates to the yields acquired. Some of the internal factors that affect the behavior of employees are :financial changes, management changes, culture changes and employee morale among others. Such factors determine the attitude of the workers towards work(John & Gibson ; Parker & Arnold 2015).
Financial changes can be either positive or negative (Jakes, Holmes & Myles 1998). For example, Henson, Craig and Jones (1997) argue that whether positive or negative financial changes will determine the relationship between the workers and the management. It is therefore the obligation of the management to ‘put measures that balance the demands of the company against those of the employees’(p. 210).This translates to a healthy and competitive internal working environment. Henson et al. therefore believe that good management of funds with proper record keeping should be effected to ensure things are smooth between the workers and the management.
Henson et al. further argue that management changes may pose challenges especially in situations where less effective managerial skills are applied. This may even ‘lower the workers morale not leaving out the prospect of a business collapse’(p. 254). Unmotivated workers are bound to be a burden since without an inner drive in oneself they can hardly generate the expected profits. Therefore, in regard to the policies considered when effecting management changes, there should be a laid down set of rules in harmony with the management and workmanship that govern the actions that are undertaken by the management under different circumstances(We...