Organizations are becoming large and complex, with the progressive industrialization and advent of new technologies. Over the years, government intervention in regulating organizational purposes and performance has increased. Social obligations, legal aspects and trade union pressures are actively shaping the environment. Here we shall consider some of the environmental trends in terms of five principal environmental aspects:
· Economic
· Demographic
· Socio-cultural
· Political
· Technological
Economic
Low growth (3.5% long-term average), high rate of inflation (8.5%), and spreading unemployment have been principal sources of concern on the economic scene. To achieve full employment at a 2.4% growth in population, the number of jobs should rise by 3.9%. The International Labor Organization estimated that US $ 6250 is needed to create a new job in developing countries like ours. Capital-employment and capital-output ratios have declined progressively during the plan period. Inequities in income and wealth distribution have increased over the years, despite government initiatives to counter the same. Affirmative actions for the disadvantaged groups have brought in their wake new pressures for reservations in education and employment based on heredity, nativity, sex, caste and creed. Employment is sought and created in bulk of public sector units for its own sake. Together these factors and forces have put the nation on a reverse gear. The result has been the pursuit of backwardness.
