FUNCTIONAL ATMOSPHERE - Management Hotel

Simply stated, organisational environment refers to the environment under which an organisation exists and operates. The environment is composed of many factors, forces, conditions, influences and so on.

According to Robert Albanese:

“The environment of an organisation may be defined as a perceived set of conditions, influences, or forces external to an organisation that has relevance to the goals and tasks of the organisation.”

In the words of Robbing:

“Environment is the composition of those institutions or forces that affect the performance of the organisation but over which the organisation has little control.”

According to Prof. Keith Davis, organisational environment “is the aggregate of all conditions, events and influences that surround and affect it.”

Thus, organisational environment refers to those surroundings, factors, circumstances, institutions or influences that affect the working and existence of an organisation.