Organizational Culture

External Factors

We experience external factors and regulations in our everyday lives. When we drive, we follow speed limit signs to avoid a ticket. When we shop, we have to pay a mandated sales tax. We can be refused service at a restaurant if we arrive without our shoes or our shirt. These are all small examples of how external factors influence our daily lives and the decisions we make. While external factors are outside of our control, they still influence us and create boundaries in which we need to operate. The same goes for organizations.

Organizations would prefer to control every aspect of their operations, and rightfully so! However, there are a number of external factors at play which do not allow organizations to have complete control over every piece. Let’s explore some of these external factors and the influence they have on organizational culture.


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Organizational Behavior by Icfai Business School is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.