Why does culture affect decision-making and what is the nature of culture in the business environment?
Culture influences decision-making because the norms of our culture influence us, and it’s deeply woven into the way people make decisions.
In the business environment, organizational culture has a critical impact on the manner in which decisions are made at the organizational level. It helps improve workflows and guides the decision-making process. The influence of culture on decision-making is carried out mainly through shared beliefs and values that form a stable set of underlying assumptions among members of the organization. The individual’s perception of organizational reality is mostly determined by the fact that colleagues share the same views
Culture affects an individual's view of time, environmental space, family structure, illness/health, and death. All of this can color a family's interactions with a health care team when dealing with the critical illness of a family member. Cultures vary in whether they focus on opportunities or threats, and they also vary in their interpretations of the same information as a threat, an opportunity, or neither. Finally, people vary in how much they feel the need to engage in decision-making. Organizational culture may give a manager more room for authoritative style of leadership. A culture that only allows the top management to make decisions will give room for authoritative leadership. The most generally accepted concept is that culture is a key determinant of an individual's ethical ideology, which affects an individual's inclination to behave ethically. In other words, culture acts as a guideline in determining whether certain practices are appropriate and acceptable. Cultural diversity may lead to better decisions because of different views, perspectives, ideas, proposals of employees. It fosters critical thinking, augmenting, analysis and collaboration. A cultural environment is a set of beliefs, practices, customs and behaviors that are found to be common to everyone that is living within a certain population. Cultural environments shape the way that every person develops, influencing ideologies and personalities. Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management should interact and perform. It can affect employee hiring and retention, performance and productivity, business results, and company longevity. Culture supports the delivery of customer service experiences. Culture delivers your business strategy. Culture creates the environments, daily rituals and beliefs that connect your people, with your company. Culture is the context in which leadership must operate, influence and inspire.
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