Environmental Context of Organizational Behavior

 Environmental context of Organizational Behavior

Table of Contents

Environmental Context of Organizational Behavior, Globalization, Workforce Diversity, Ethics, Frequently Asked Questions

Environmental context of Organizational Behavior

Organization runs within internal and external environment. Each organization attempts to grasp opportunities and face arouse challenges from business environment. Organization should consider environmental factors for long term survival of business. Organization is influenced by various environmental factors. They are economic, socio-cultural, political, legal, technological and global factors. Globalization, Diversity and Ethics are thought crucial environmental factors influencing on organizational behavior.

·       (a).Globalization,

·       (b).Diversity,

·       (c).Ethics

(a).Globalization:-

21^st Century is era of globalization. World has become as commercial village due to globalization. No one can be limited within the boundary of single nation as past. No any business or organization can be limited within just single nation. People are getting opportunity to use goods produced at any corner of world. Business organizations are being converted as international organization.  It has promoted worldwide business activities.

Presence of same value, norms, arrangement and systems at various nations of the world is the result of globalization. The process of transferring economic administration, political system, culture etc from a country to another various countries is called globalization.

Increasing change in political and financial sector, development of market oriented economy, impact of open as well as liberal economy, entry of large scale multinational companies, magical revolution of information technology and presence of international and regional organizations like World Trade Organization(WTO), European Union (EU) and  SAARC etc are the main reason of globalization.

Globalization is offering both challenges and opportunities both to organizations.

Opportunities	Challenges
i). New employment opportunities, ii).Access to foreign cultures, iii).Transfer of technological advances iv)Cheaper cost for production, v).High Living Standard vi).Access to new customers, vii).Finding skilled Manpower etc.	i).Employee Exploitation, ii).Degradation of local job opportunities. iii).Cultural Degradation, iv).Legal Challenges, v).Expectation of Higher Compensation, vi). Higher Taxes, vii).Higher Export Cost, viii).Handling HR Immigration, ix).Workforce Diversities etc.

Globalization has influenced largely to organizational Behavior. It has created confidence to enter people having different norms, values and belief to job with increasing workforce diversity to achieve their common goal. In current scenario, managers need to modify their managerial practices accordance with changing cultures and nationalities. They need to manage human resources having different psychology, needs and ambitions.

 (b).Workforce Diversity:-

The involvement of staffs from dissimilar and similar society, cultures, norms, values, belief, attitude, level of anger, ideology, education level, physical characteristics, language, country, ethnicity, class, genders, ages, backgrounds, skills, physical challenges, sexual motive, experiences, behavior, preferences and goal etc  both together within same work place or organization is called workforce diversity.

Workforce diversity makes workplace inclusive and represents the people from society where organization runs. Workforce diversity trend of 2023 are such as:-

i).Recruiting diversified manpower, ii).Bringing gradual change in workplace,

iii).Trying to remove unknown bias, iv). Moving on from nominal diversity, v).Hiring from all demographics

Opportunities and Challenges of workforce diversity are such as:-

Opportunities	Challenges
i).Low staff resignation rate, ii).Growth in profitability, iii).Better policy making iv).Higher product image, v).Innovation, vi). Efficiency and productivity, vii).Better problem solving, viii).Inclusive workplace. ix).Individual career growth. x). Equality enhancement etc	i).Lengthy visa process, ii).Racial disputes, iii).High living cost, iv).High HR Development cost. v).Possibility of lower productivity. vi).Delay in policy making, vii).Discrimination to minority, viii).No more collaboration, ix).Delay in problem solving, x).Communication gap etc

Dimensions of workforce diversity are such as:-

i).Primary Dimensions:-

The basic characteristics of employees which cannot be substituted or converted like sexual preference, physical complexion, physical capacity, mental capacity, ethnicity, gender, age, race and physical abilities or disabilities are primary dimensions of workforce diversity. These by birth characteristics are constant in nature and influence mostly on personal behavior.

Due to basic differences, it is hard to maintain proper belief and reciprocal appreciation in workplace. Managers should try to create atmosphere of accepting such basic dissimilarities.

 ii).Secondary Dimensions:-

The supplementary characteristics of employees which can be substituted or converted like education level, social class, cultural patterns, marital status, belief, attitude, value, health, habits, income level, parental status, experience, language, preferences, location and work style are called secondary dimensions of workforce diversity. These factors change with changing scenario. Managers should adjust these factors properly to mobilize staff properly.

Secondary dimensions do not reduce primary dimensions but interconnection between both shapes the values, norms, belief, attitudes, priorities and perceptions.

(c). Ethics:-

The well set of standard of justice which studies which is morally good or bad, right or wrong, reasonable or unreasonable and justifiable or unjustifiable and what must do , generally in terms of specific virtue, fairness, social interests, duty and rights is called ethics.

The word is derived from Greek word "ethos" which means "route of living". It is the portion of ideology which deals with conduct of people and behavior of individuals in community. Important factors influencing on shaping ethics are such as:-personal feelings, law, religious belief, social acceptances.

Important aspects of ethics are respect, honesty, fairness and responsibility. Ethics is directed by its basic guidelines. Organization should formulate basic employee conduct to get them out from various dilemmas about what is right or wrong to do in workplace. Proper system to prevent immoral activities organization must develop reward and punishment system.

In current competitive scenario, ethically running organization can only achieve tremendous success in business sector. So, management must accept social responsibility and institutional code of conduct or employee's code of conducts. Organization must define ethical behavior of every people in organization.

Frequently Asked Questions

1.Explain environmental context of organizational behavior. 2.How does environmental context of organizational behavior? Explain it. 3.What is environmental context of organizational behavior? 4.Explain globalization, workforce diversity and ethics on the scenario of environmental context of OB.