A set of external and internal conditions, forces and variables that affect the decision-making process, efficiency and nature of management in an organization:
1) Psychological and behavioral factors: motivation, emotions and attitude of people to work affect performance and efficiency.
2) Organizational factors: organizational structure, distribution of powers and communication system within the organization.
3) Environmental factors: economic, social and technological changes that affect management strategies.
4) Cultural and social factors: social values and work culture that shape the behavior of people and groups within the organization.