Uncertainty occurs when business people do not have sufficient information and knowledge about environmental factors. In such circumstances it is not easy for managers to understand and predict the needs and changes in the environment. Two important factors that have a direct effect on the level of uncertainty are the number of factors in the environment that affects the organization and the rate of change in these factors. When there are few factors in the environment that affect the company and if these factors are rather stable and do not change rapidly, the organization faces a low uncertainty. However when the external factors that affect the organization increase in number and if these factors change very rapidly, the organization in those circumstances experiences very high uncertainty.
Business people may manage the low uncertainty and draw less attention to external issues. When the level of uncertainty rises then two basic strategies can be implemented: to adapt the organization to changes in the external environment or to influence the environment to make It more appropriate for organizational needs and goals
