This week let’s discuss the requirement for “Understanding the context of the organization”
Context of the organization is defined in ISO9001:2015 as the Business environment. The combination of the internal and external factors and conditions that can have an effect on an organization’s approach to its products, services and investments and interested parties.
Let’s consider two kinds of business and what the internal and external factors may be that can have an effect on the organization’s approach.
Number One Widget Makers sells widgets to manufacturing companies. The widgets are used to make automated processing equipment. The internal environment is quite stable / static with few changing environmental forces. Externally, there aren’t many competitors and new technologies are not being found. Thus, there is little activity from outside groups that might influence the organization.
Compare Number One Widget Makers to Social Media Marketing, an Internet marketing start up that faces an active environment with quickly changing regulations and new competitors who are constantly entering the market. Customers require the latest technology and are continually changing their preferences. The internal and external factors are many that affect the approach Social Media Marketing takes on its services.
These two companies have very different organizational environments both internally and externally. Number One Widget Makers’ leadership is results and deadline driven, distant, and not as concerned with employee morale. Social Media Marketing’s leadership style is very hands-on depending on a lot of creativity, ingenuity, and imagination in solving organizational problems. Their managers are concerned about employee morale and welfare and try to make their employees feel valued and important.