Employees behavior is dependent on the combination of both the external and internal factors, yet some

are more pressing compared to others. The internal factors are the ones that are in the confines of the
organization with adequate control over their effects such as the policies, office culture and the process
flows. The external factors on the other hand are the factors the organization do not have any control
over, such as the economy, political and legal regulations, the environment, socio-cultural environment
and technology. It is practically true that, both the external and internal factors affect the employees
behavior but is should be noted that, the internal factors affect or influence employees behavior directly
as in the case of the external factors which are somewhat general to all. In the quest for employees to
carry out their duties successfully, the above-named factors impact on their day-to-day performance and
it is the responsibility of the employer to decipher which of the forces must be curbed in order to get the
productivity and loyalty of their workers. This paper seeks to delve into the details of how the two broad
factors impact or influence the totality of the behavior of the employee.

The External Environment

As the term suggests, the external environment has a wide spectrum of factors that the organization
has no control over how such factors may end up affecting the organization and they are broadly
categorized into two namely; the General Environment and the Task Environment.

The General Environment

This consist of the elements that could have an immediate effect on the organizations operations
but somewhat influences the activities of the firm. Under the general environment, the elements
are in its broader scope (non-specific) as opposed to the task environment composing of specific
factors directly affecting the organization under discussion.

The Economic Aspect

First and foremost, all businesses are established on the basis of economic gain and therefore the
economy of the country under discussion definitely will have an impact or influence on the
activities of the organization. The general economic framework everywhere touches on
unemployment, interest rate, policy rate and inflation.

The aggregate of the all the above-mentioned elements affect the organization. For example, policy
rate affects interest rate which in turn affects lending rate and it goes on and on. when there is
inflation in the country, organizations tend to pay more for the resources which affects the overall
cost of production thereby inflating the prices of their products. In the same vein, the organization
will have to also pay more interest rate its borrowings. Not forgetting the fact that, when the
unemployment rates are also high organizations pick and choose who to hire in the sense that, the
customer purchasing may be low just because a lot of people are out of employment.

Socio-cultural Aspect

The socio-cultural aspects of people in a given society ranges from customs, conventions, values
as well as the demographic nature of the society in which the organization resides.
This facet must be studied and well understood by the managers of organizations as it may dictate
the line of product and services the organization will undertake aside considering the market
segment of the organization. Apart from the influence of the society on the product and services,
the corporate social responsibilities of the organization, is also determined by the society in which
the organization operates.

Technological Aspect

This is a term which describes the totality of methods used in the process of converting the
organizational resources into finished goods and services. It must be noted that, stakeholders are
to be mindful of the kind of technology they opt for the course of delivering quality goods and
services to its target market due to competition. This is a major dimension in the service industry
especially the banking industry where almost all the activities are carried out using sophisticated
technology. The investment decisions on the type of technology to adopt must be keen to all
stakeholders with a common mindset of staying on top in this regard.

Political and Legal Aspect

This revolves around the legal framework of the governing body in a given country thus the overall
pollical and legal system at a time. Businesses dwell on the aspect of government laws and
regulations pertaining to business and the relationship between the business world and the political
structure in the country in which it operates.

It is no coincident that, there should be a cordial relationship between the two parties in that they
both work together from different perspectives and each has a role to play as in the case of a
binding contract. This holds for the fact that, businesses prefer to operate in a politically stable
environment in order to make economic gains to render its obligations and responsibilities as a
legal entity towards the government and the community as well.

The Global Aspect

This is the encounter with the international front where organizations are well aware of the
influence the global market exert on them both directly and indirectly. The quest for organizations
going global is no news today, it is no secrete the benefits of organizations expanding across the
borders of its country. International trade makes it possible for both countries and individuals
transact businesses at various levels. The concept of global village is taking a different dimension
where all the countries in the world are being connected to a web of modern communication
networks as well as transportation technology.

The Task Environment

The task environment deals with the factors which directly influence and are also influenced by
the organizations dealings. These factors consist of creditors/suppliers, customers, competitors
and regulators just to mention a few.
Some of these factors will be dealt with in details as we see managers trying to deal with such
elements in the task environment in harmony with the mission and vision of the organization in
which they work.

Suppliers

These group of people or individuals are the providers of raw materials to the organization be it
product or service materials. They are the first point of call whenever an organization is to go into
production. This calls for a very strong relationship between the organization and its suppliers so
as to keep up with the level of quality supply to the organization and the compensation package
from the organization also to the suppliers.

Customers

The customer plays the most vital role in business in general in that, without them the organization
ceases to exist to make profit and to expand. This can be seen especially in the service industry
where the customer is treated as king because the organization knows they exist because of their
customers. It is the mandate of managers to go extra mile in making sure that customers are
satisfied across the broad range of services or product the organization offer.

Competitors

Competitors always influence the decisions of other industry players or giants in the same industry
by compelling them to come up with strategies to overtake them in either the market share or
product quality. Competition mostly helps organizations to sit up in whatever they do because
now, the competition is not only the industry players but indirectly those outside of the industry
under discussion can also pose threat to ones organization. It is evident that customers gain
favorably in a competitive market in that, they are exposed to so many options to choose from.

Regulators

This group of entities are the overseers who control the affairs of businesses in a given country.
This particular environment requires that, an authority regulates the dos and donts of the task
environment in order to bring sanity in the said industry. They turn to guide the policies and
procedures of the players in the industry by setting standards for them to follow. Mostly these
groups are government agencies with the authority and an unbiased perspective in their dealings
with the industry players. For example, in the banking industry, the central bank is the regulator
thus in the case of Ghana, it is Bank of Ghana.
Internal Environment

The internal environment constituent ranges from the owners, the board of directors, employees
(managers/supervisors), culture and outcomes. The aggregate of the internal environment turns to
dictate how the organization is run and the image it assumes.

Owners

This group of people are the prime stakeholders of the organization and the pioneer investors of
the organization. They have the property rights and claims on the organization. It must be noted
that, an individual can be owner of an organization. Those who buy shares in the share market can
claim ownership of the organization because they are also investors. Owners have the mandate to
change the organizations policies and processes if the need arises any time.

Board of Directors

The board of directors constitute the governing body of the organization and they are elected by
the prime stakeholders or stockholders. They are given the mandate and responsibilities to lead the
organizations top managers right beneath them in the hierarchy of the organization.

Employees

Employees are the most important element of organizations internal environment, they perform
the tasks of the organization to the core. Individual employees also join labor unions as part of the
internal environment. If managed properly they can positively change the organizations policy.
Improper management of the workforce usually leads to a disastrous situation for the company.

Culture

Organizational culture is the collective behavior of members of an organization and the values,
visions, beliefs, habits that they attach to their actions. An organizations culture plays a major role
in shaping its success because culture is an important determinant of how well an organization
performs. As the foundation of the organizations internal environment, it plays a major role in
shaping managerial behavior.

The above elements depict that, whether internal or external environment, the manager cannot
afford to lose track of what is expected of him/her. There is a responsibility placed on them to
understand the nature of each element and their influence on the organization.

This calls for competency and experience coupled with vast knowledge in the area of management
so that the manager will at all times be alert and know what to do for the organization to progress.
 THE EXTERNAL AND INTERNAL FACTORS THAT AFFECT EMPLOYEE BEHAVIOUR

Leadership

Leaders play vital role in influencing the behavior of individuals at the workplace. Leaders are
given the mandate to set out direction for their followers. In most cases, it has been noticed that
employees do not show any enthusiasm with going to work when their bosses are exacting. The
leader is expected to stand by his/her team most times, guide them and help them in their day to
day operations and also help them acquire new skills and upgrade their knowledge. The leader is
again expected to be a strong source of inspiration for his/her subordinates. Leaders are to set
examples for the subordinates such as being punctual at work and adhering to the rules and
regulations pertaining to the work task under discussion.

Work Culture
The nature and culture at the workplace plays a vital role in shaping the well-being of the employee with
the positive ripple effect on the job. Employees work their heart out whenever the rules and regulations
apply to all at any level because it gives them some sense of indiscrimination thus having transparency at
all levels. Employees tend to avoid complicated reporting lines that is if the culture succumbs to such ideals.
Job security is one of the most crucial factors affecting employee behavior so it prudent for them to know
what other team members are up to and vice-a-versa.

Job Responsibilities
Employees should be asked to do what best they can perform. Do not overburden employees.
Encourage them to upgrade their skills from time to time.

Effective Communication
Managers need to communicate effectively with team members. The moment, employees feel left out,
they lose interest in work. They need to have a say in organizations major decisions. Let them express
their views and come out with their problems. Grievances need to be addressed immediately.

Family and Personal Life

Trust me, if you fight with your family members or relatives in the morning, you feel restless the whole
day. It has been observed that individuals with a troubled background or problematic family life tend to
behave irrationally at workplace. Employees who have strained relationships with family members like to
sit till late at work and spoil the entire work culture. Individuals from very poor families also have a habit
of stealing office stationery and taking things to home. Conflicts in personal life lead to stress and irrational
behavior. Also, individuals should try not to bring their personal problems to work. Try to keep your
personal and professional life separate.

Relationship at Work
It is necessary to have friends at the workplace. You need people around to talk to, discuss and share
experiences. It is really not possible to work in isolation. Not allowing employees to interact with fellow
workers leads to frustration and stress at workplace. Avoid arguing with team members.
Personal Life Issues

A professional employee should maintain a strong level of work-life separation, but it's inevitable
that external issues will sometimes spill over into the workplace. This isn't necessarily a bad thing.
Positive life events, like getting married or having a book published, can be a boon to an
employee's work ethic. But he can also suffer on the job if he's dealing with negative events like
sickness or debts. People need time and energy to deal with their problems, so, to the extent you're
able, try and help out a stressed employee by offering him personal leave, a flexible schedule, a
reduced workload or a telecommuting option.

Harassment and Discrimination

Harassment and discrimination are a constant risk. This can be external, resulting from broader
social prejudices or the psychological problems of specific employees. It can also be internal,
resulting from company policies that favor certain groups at the expense of others. If an employee
has to worry about being mistreated, he's not going to live up to his potential -- nor will your
company. Make it a top priority to watch for these dynamics and uproot them immediately. Most
of all, take your employees seriously when they report harassment.