Environmental stability, technology, and outside pressures are __________ factors which affects the organizational structure.

Environmental stability, technology, and outside pressures are __________ factors which affects the organizational structure.

• A. internal
• B. external
• C. cultural
• D. financial

Answer: (B)

External factors from the environment—environmental stability, technology, and outside pressures—shape how an organization is designed because they originate outside the organization and require it to adapt. These conditions influence whether the structure stays formal and centralized or becomes more flexible and decentralized to respond effectively. Internal factors, by contrast, come from inside the organization, such as culture or internal resource constraints. Since the items listed arise from the external environment, they are external factors that affect organizational structure.

External factors from the environment—environmental stability, technology, and outside pressures—shape how an organization is designed because they originate outside the organization and require it to adapt. These conditions influence whether the structure stays formal and centralized or becomes more flexible and decentralized to respond effectively. Internal factors, by contrast, come from inside the organization, such as culture or internal resource constraints. Since the items listed arise from the external environment, they are external factors that affect organizational structure.