Cultural Factors and Disruptions in the 21st Century: Disruptions Changing Business Scenario and Performance

Cultural Factors and Disruptions in the 21st Century: Disruptions Changing Business Scenario and Performance

Richa Narayan Agarwal (Institute of Management Studies, Ghaziabad, India)
Copyright: © 2020 |Pages: 18
DOI: 10.4018/978-1-7998-3744-2.ch003

Abstract

This chapter talks about the cultural factors and the various disruptions impacting business scenarios. Both are interconnected. Sometimes culture induces disruptions, and other times, disruptions force changes in the culture. The chapter is unique as it talks about the factors of disruptions and impacts on different businesses. It also discusses how the culture of a country is also an influencing factor, directly and indirectly, for the organisational culture and its performance. The chapter also throws light on major disruptions across industries, structures, job requirements, and skill requirements. It also gives a view of the situations in the Indian context. The chapter concludes by summarising some points through which organisations can sail through these disruptive times.
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Introduction

Culture defines an organization identity. It is the path an organization chooses to do business with one another, and how it chooses to respond to disruptions (Moseley, 2019). Today, culture no longer takes a back seat; instead, it has become a driving force for the organizations, along with disruptions. Secondly, culture also influences functional or dysfunctional political and social responses that shape up in different countries and organisations (Gold, 2017). Changes in technology and demographics are increasing focus on the relationship between company culture and performance. James Haskett said that a performing culture brings increase in corporate performance compared to less culturally vibrant competitors. Leaders know they should also focus on culture and look beyond profitability and sustainability. If organizations have an influential culture of rewarding employees’ effort, it leads to an increase in performance (Sokro, 2012). Culture is about deeply held assumptions, meaning, and beliefs (Martin, 2002; Schein, 1992) taught through practices, which generate visible patterns of behavior in the national or organizational context.

According to Hofstede, organizational cultures are different from that of national culture. National cultures are manifested in people's minds, beliefs, thinking consciously or unconsciously. It gets rooted through family and environment. People are conscious of organizational cultures, and they learn this culture later in their life at the workplace (Hofstede, 2005), and cultural characteristics. Organisational culture (Brown, 1998) acts as a motivational factor which is essential for performance. It is imperative to emphasize the significance of corporate cultures for achievement, growth, and success (Schein, 2009). Organizational culture is the pattern of values, norms, beliefs, attitudes, and assumptions that shape how people behave and things get completed (Armstrong, 2006). It showcases the benefits on which an organization thrives.

National culture (NC) has been defined by Hofstede as 'the collective programming of the mind which distinguishes the members of one human group from another' (Hofstede & Hofstede, 2005). In 21st century industries, works and skills are changing. Furthermore, with the increasing impact of the emergent markets, organizations’ need to conduct and manage businesses in other countries is more than ever; hence, each organization should be able to cope with its internal and external environment in any country, as internal contextual factors are impacted with individuals’ behaviour and culture (Ihsan & Umit, 2014).

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