Organization Internal Operating Environment

All organization operate in a specific internal and external environments. In the following figure, component of internal environment are given.  These components directly or indirectly develop conscious mind and unconscious mind of any organization. Simplified argument is that all organizations, like human beings, carry conscious and unconscious minds. Development of organization conscious mind is a deliberate effort of an organization and can be viewed and assessed easily by its policy, power structure, reward system etc. Organizations commence their operations by having some sort of conscious mind from the day one. On the contrary, unconscious mind is developed at the later stage when various components interact with each other. The interesting point is that organizations has little direct control on the development of unconscious mind, however they can have some indirect influence through the component of conscious mind. Another interesting is that individuals play a key role in developing both conscious and unconscious minds.  How organizations respond to external environment very much depends on its both environment. An organization will be successful if the both minds in harmony; otherwise it can develop neurotic behavior which will lead to development of organization psychosis.  The development of psychosis means that it has little chance of survival. See symptoms of declining organization.

Organization Operating Internal Environment



Source: Yousaf, M.N.(1993) : Organization and Psychology: Conscious and Unconscious Minds of Organization