How External environment and organizational culture Impact
function(s) of management in Garments sector in Bangladesh
Management Influence of External Influence of Organizational
Example / Tension
Function Environment Culture
A factory planning to meet
Factories must plan for stricter wastewater discharge
Because of hierarchical
compliance with safety, standards must allocate
culture and low autonomy,
environmental budget, change equipment,
planning is often top-down.
regulations, buyer schedule downtime etc.
Workers and middle
audits, forecast demand However, the culture may
management may be less
Planning fluctuations (e.g. due to delay investment because
involved in strategy.
global market, trade cost savings and production
Innovation in planning (e.g.
policies). Uncertainty volume are prior priorities.
new processes, new
(orders, global Also, lower-level workers
sustainable materials) may be
disruptions) forces may not contribute ideas for
limited.
contingency planning. more efficient environmental
practices.
Because of centralized After Rana Plaza and under
authority, management may pressure from buyers, many
create units for compliance factories set up
etc., but empowerment / safety/compliance units. Yet
Need to have
cross-functional often the safety officer may
roles/departments for
collaboration may be limited. have limited authority or
compliance, safety
Informal practices or chain of budget; decisions relating to
Organizing officers, environmental
command may constrain safety infrastructure (e.g.
management, quality
flexibility. Resource fire exits) may require top
assurance. Also need to
constraints may limit management approvals,
structure supply chain
specialization. causing delays.
to ensure traceability,
maintain relationships
with international
buyers.
How External environment and organizational culture Impact
function(s) of management in Garments sector in Bangladesh
Management Influence of External Influence of Organizational
Example / Tension
Function Environment Culture
Culture may reward In some factories, top
Leaders are under management gives speeches
productivity & cost control
pressure to show or policies about
more visibly than safety /
compliance, safety safety/hygiene; but on the
environmental stewardship.
Leading / records, environmental shop floor, production
Workers may feel
Motivation credentials (for buyers, supervisors may pressure
demotivated if safety
NGOs, public). Also, in workers to meet quotas even
concerns are ignored or if
the era of CSR, there is if safety is compromised.
they are punished for
reputational risk. The leadership conflict
reporting issues. Autonomy
for lower levels is low. between meeting orders and
Leadership styles tend to be ensuring safety emerges.
directive.
Factories implement
monitoring systems for
External audits, buyer Internal culture may treat chemical use or safety
inspections, regulatory controls as external compliance. But sometimes
inspections and safety impositions. Workers may these are “tick-box”
committees force see audits as “when someone exercises: documentation is
Control / control systems, quality is watching.” Informal maintained, but actual
Monitoring systems, compliance oversight (peer pressure, practice may still have lapses
reporting. supervisor inspections) often (e.g. unsecure wiring,
Environmental more influential. blocked exits). Also, control
monitoring, safety Transparency or feedback may focus on areas important
checks, etc. may be limited. for audits, while less visible
safety or environmental
issues are ignored.