Organizations operate their functional activities by some elements, which affect organizations.

1. People:
People make up the internal social system in the organization. They consist of individuals and groups. Groups may be large or small, formal and informal, official or unofficial. Human organization changes every day. People are living, thinking and feeling beings that created the organization and try to achieve the objectives and goals.
2. Structure:
Structure defines the formal relationship and use of people in the organization. Different people in an organization are given different roles and they have certain relationship with others. Those people have to be related in some structural way so that their work can be effectively coordinated.
3. Technology:
The technology imparts the physical and economic conditions within which people work. With their bear hands people can do nothing. So they are given assistance of building, machines, tools, processes and resources. The nature of technology depends very much on the nature of the organization, influences the work or working conditions.
4. Social System (Environment):
Social system provide external environment within which organization operates. A single organization cannot exist alone. It is a part of the whole. A single organization cannot give everything and therefore there are many other organizations. All these organizations influence each other

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