Cultural influences on organization

• Organizations do not exist in a vacuum
• Open System Theory (OST) looks at the relationships between the organizational and the environment in which they are involved
• Trends affecting workers & organizations according to David Hanna's Organization Model (P.E.S.T.E.L):

  • Political
  • Economic
  • Socio-Cultural
  • Technology
  • Environmental
  • Legal
• Political trends affecting workers & organizations:

  • Leadership style: more directive/autocratic
  • Change in government leaders: cronyism
  • International policies: shift in foreign trade/investment
  • War/Conflict in Ukraine and other areas: affects migrant work
• Economic trends affecting workers & organizations (Globalization):

  • Transfer of information, products and services
  • Competition, outsourcing, retrenchment
  • Increase in the number of Chinese workers in the country
  • Stricter quality standards
  • Decline in BPOs, hospitality, manufacturing, agriculture
  • Changes in minimum wage, monthly wages, exchange rates, GDP - inflation
  • Impending Global Recession
  • Poverty remains high - migration continues to separate families
  • Aging population in other countries will increase brain drain
• Socio-Cultural trends affecting workers & organizations:

  • Diversity/Inclusion
  • International workforce - cultural diversity
  • Increasing women in the workforce - glass ceiling
  • LGBT - gender discrimination
  • PWDs - changing policies, facilities
  • Generations in the workplace - change in policies, styles
  • Changing religious patterns - multi-faith practices
  • Multigenerational Workforce
  • Diminished loyalty/Turnover - engagement/retention programs
  • Changing family structures - policies/benefits of employees
  • Lifestyles/values shape market of products
• • K-12/Free College Education – greater gap between private vs. public schools
• Technology trends affecting workers & organizations:

  • Automation shifts nature of jobs
  • Technology shapes recruitment, learning, communication, productivity - need for technological competencies
  • Increased alienation of unskilled workers - requires retooling training
  • Fast work pace and 24/7 accessibility - job stress/work life balance
  • Changing work arrangement (work from home) and work structures (virtual structures)
  • Social media - policies, productivity, security of information
• Environmental trends affecting workers & organizations:

  • Climate change affects business and organizations (waste management, mining industries, agriculture)
  • Disaster risk and response management needed to be embedded
  • Environment consciousness - Green business/buildings
  • Traffic - productivity
  • Pollution - health
  • Health - COVID Pandemic
• Legal trends affecting workers & organizations:

  • Decline in unionism
  • Clamp down on contractualization (endo) - labor rights
  • No smoking law
  • Change law - maternity leave, anti-discrimination, 13-14th pay