Internal Organisation Environment

• An organization's internal environment is composed of the elements within the organisation including current employees management and corporate culture (which define employee behaviour).
• An organization's mission statement is key to the internal environment as it describes what the organization stands for and why it exists.
• An organization's mission statement explains the overall purpose of the organization and includes the attributes that distinguish it from other organizations of its type.
• A mission statement should answer the questions "What are our values?" and "What do we stand for?"
• A good mission statement should identify the following intents of a company: customers - who will be served, products/services - what will be produced, location - where the products/services will be produced, philosophy - what ideology will be followed
• company policies and procedures are guidelines that govern how certain organizational situations are addressed with its mission statement.
• The formal structure of an organisation is the hierarchical of tasks and people.
• This structure determines how information flows within the organisation, which departments are responsible for which activities and where the decision-making power rests.
• The formal structure is displayed in an organizational chart which is a pictorial display of the official lines of authority and communication within an organisation.