Organizational culture is influenced by the environment, and companies may need to adjust their culture to match new environments. External factors like government policy and unions can also affect corporate structure and culture.
Organizational culture and environment are related to the extent that the environment almost always influences the structure of an organization’s culture. The environment plays such an important role in organizational culture that an international company with an established organizational culture may need to restructure or change its culture according to the dictates of its environment. For example, a US-based company may find that the kind of corporate culture that works in the US won’t work in some Arab countries. This is simply the influence of environmental forces on corporate culture. If such a company wishes to conduct business in foreign locations, it would have to adjust its organizational culture to match that of its new environment.
Organizational culture refers to how a company has established its methods of expected actions in any situation. This can include factors such as the style of dress, the way employees and managers interact, and the type of expectations the company has of its employees. Organizational environment is a reference to the type of environment in which a company operates. This can include both the external environment and the internal environment.
Current government policy is an external environmental factor that could affect the corporate structure. For example, some countries have policies that prevent women from performing certain types of workplace activities. Such policies may also prescribe how women should dress and how they should interact with other employees. A company with a corporate culture that encourages workplace equality may need to reduce such practices in order to blend in with its environment. This is just one example of how organizational culture and environment are connected.
Unions are another factor included in the organizational culture and environment. If the work is particularly strong and often involves the company in various methods of turning the arm which include frequent strikes or threats to strike, the relationship between company management and employees belonging to the various unions could be tense. Since corporate culture is defined by the activities of the human elements of the company, this tension will be transferred to the day-to-day activities of the company’s business. This could affect corporate culture to the extent that there is a sense of mutual distrust and lack of friendliness between management and general staff. This factor derives from an internal clash between organizational culture and the environment.
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