An organization is similar to a living organism in that it will respond to internal and external stimuli and find itself forced to adapt to challenges that get in its way. Furthermore, organizations can grow, evolving from one type of organization to a different type, depending on new goals they must meet, new constraints that force them in different directions, or higher standards that encourage deeper development. ôAn organization's effectiveness is influenced by its external environment,ö so it cannot be evaluated apart from that environment (Carson).
Internal and external stimuli that can impact an organization differ depending on the type of organization and its internal and external environments. Quite often, the internal changes that arise, such as reorganization, layoffs, or changes in standards are the result of external stimuli that must be addressed or compensated for. In other cases, internal changes are the result of new directions imposed on the company by its leadership.
One organization I worked for, for example, started out as a small regional chain of stores that was serviced by a minimally sized corporate office with a ômom and popö familiarity and relatively relaxed work environment. Through the years, however, upper management found a way to expand the business by acquiring other stores, expanding the product line and services offered by the stores, and adding new territories. Within a few years, the little regional chain had become virtually nationwide. In addition, it had incorporated branded foods such as WendyÆs and Taco Bell into its stores and had developed a more polished corporate image. The home office moved to a new building, hired many new employees, and began developing a more formal and professional corporate culture. Along with these changes, the internal environment had to make adaptations. Some of the acquired stores had their own computers and operating
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