- People: People make up the internal and social system of the organization. They consist of individuals and groups. The groups may be big or small; formal or informal; official or unofficial. Groups are dynamic and they work in the organization to achieve their objectives.
- Structure: Structure defines the formal relationships of the people in organizations. Different people in the organization are performing different type of jobs and they need to be (elated in some structural way so that their work can be effectively co-ordinated.
- Technology: Technology such as machines and work processes provide the resources with which people work and affects the tasks that they perform. The technology used has a significant influence on working relationships. It allows people to do more and work better but it also restricts’ people in various ways.
- Environment: All organizations operate within an external environment. It is the part of a larger system that contains many other elements such as government, family and other organizations. All of these mutually influence each other in a complex system that creates a context for a group of people.
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