Learning Outcomes

• To understand the impact of culture on

business.
Social and cultural environment refers to the
influence exercised by certain social factor
which are “beyond the companies gate”
• “Culture in its broadest definition, refers to
that part of the total repertoire of human
action which is socially, as opposed to
genetically, transmitted.”
• Acc. to Taylor Culture is civilization is that
complex whole which includes knowledge,
belief, art, morals, law, custom and other
capabilities and habits acquired by man as a
member of society.
 Following characteristic of culture are
1. Learned : Culture is not inherited or biologically based,
it is acquired by learning and experience
2. Shared : People are member of a group, organisation,
or society share culture, it is not specific individual.
3. Tran generational : Culture is passed on from one
generation to the next.
4. Symbolic: Culture is based on the human capacity to
symbolic or use one thing that represent another.
5. Adaptive : Culture is based on the human capacity to
change or adapt, as opposed to the more genetically
driven driven adaptive process of animanls.
Factors which effect social and
cultural environment

Attitude of people
Attitude of wealth
Marriage
Religion
Education
Ethics
Social Responsibility
Culture that people create

Culture determines personality.

There are sub culture. People have their own idiosyncrasies ,
blend of heredity Cultural experience, sub culture experience,
family experience & unique personal experience (Tata’s Vs Birla’s)

Organisational Culture

Create distinction

Sense of identity

Commitment

Enhance social system stability

Culture and Globalization
When business goes International work motivation, profit motivation, business goal
gift giving, custom, greeting, body gesture, colour and numbers.
U.S. Japan
Company Team in Sport Family in Village
Business goal To Win To Survive

Employees Players in Children in Family

team
Human Functional Emotional
Relation
Competition Cut throat cooperative
Work Individual Group Income
motivation Income
promotion Acc. To Length of Service
Abilities
Pay Service & Award of patience and sacrifice
Result
 Culture determines good and services
Social/Cultural factor Japan India

Govt./Admn. Emphasis on govt by Prevalence of impersonal

virtuous and abrogation bureaucratic social
of coercion, mutual trust relation, mistrust,
EE minimum control, assumption of human
Highly motivated evil, Highly concentrated
admn.. bureaucratic
delays Low level of
delegation
Attitude towards work Highly result oriented General deep seated
and goal
Discipline Highly disciplined and Lack of discipline. Poor
respect towards S-S relationship
superiors
Group harmony Highly based on informal Assumption of in
facilitative pattern of equality, suspicious
behavior environment, self
centered
Education Highly emphasized General
 Building Culture
• Recruitment and selection.
• Socialization.
• Performance Evaluation.
• Leadership. - Employee Motivation & Decision Making
• Compensation Packages.
• Grievance Handling.
• Conflicts & Differences handling.
• Discipline & Morale
• Career Planing and Development
 Changing Culture
# Understand the environmental & other forces that will
influence your future strategy

# Determine what are the core values that have been

fundamental to your business identity, core purpose &
success and that you will not compromise

# Create a shared vision of what the company needs to

become

# Assess the existing culture & determine what elements of

culture need to change
 # Determine what changes need to occur to implement
strategy and address the gaps

# Define the role of senior management in leading the culture

change

# Craft an implementation plan with targets of intervention,

time lines, milestones & accountabilities

# Communicate the need for change and plan for change and
create motivation and buy in among key stake holders