Explanation:

A company’s organizational structure consist in a set of daily interactions between employees. There is normally a hierarchical order that guarantees proper supervision and the way leadership is carried out will affect the business’ culture. This is an important aspect of the internal environment since leadership roles within the structure will serve as the starting point of culture creation.

A positive and encouraging internal environment has to be modeled from top to bottom and this a key role that top executives have to take care of. On the other hand, adequate compensation, rewards and benefits also have the power to create a healthy environment. If employees perceive that they are being properly compensated for their job duties their attitude towards work will be more positive.