The Impact of Divergence in Internal Business Practices on Improving Productivity: The Case of Ceylon Tobacco Company

Abstract

In a globalized context, business organizations are very much committed towards improving productivity of its core business activities. In this process, industrial relations, training and development and socio-cultural interactions are timely important when organizations are practicing business downsizing and new technology to improve productivity. As a consequence of this, surplus labour force may have to be reduced and it may generate an unfavourable impact on the performance through the survivor syndrome and trade union influences. This study addressed the above issue using the case of Ceylon Tobacco Company (CTC) - a multinational affiliate in Sri Lanka and suggests that, when the organizational culture is characterized with high power distance, high uncertainty avoidance, and collectivism, the management has to progressively maintain human relations, training and development and socio-cultural interactions within the organizational context with collaboration of its employees.