Journal of Organizational Culture, Communications and Conflict (Print ISSN: 1544-0508; Online ISSN: 1939-4691 )

Short communication: 2021 Vol: 25 Issue: 2S

Effect of Social Stratification and Hierarchy on Entrepreneurial Strategy: An Overview

Joseph Louie, Loyola Institute of Business Administration

Citation Information: Louie, J. (2021). Effect of social stratification and hierarchy on entrepreneurial strategy: an overview. Journal of Organizational Culture Communications and Conflict, 25(S2),1-2

All societies area unit stratified and have components of hierarchy amongst their members. If the notion of grouping or Caste is current within the East, then the notion of sophistication and race is current within the west. In recent decades, with the appearance of up-to-dateness and genre, there has been a bent among social scientists to dismiss the conception of stratification and demand that societies become egalitarian. while not going in the deserves and demerits of explicit sorts of condition, it's vital to recollect that all told societies, the coalescing of individuals around specific identities forms the glue that binds them along and successively provides coherence and sense of purpose to society. Of course, this is often to not say that while not racial or ethnic identities, societies would flounder. Indeed, with trendy notions, the conception of those groupings has become archaic. The purpose that's being created here is that within the absence of formalized structures and establishments that promote equality, the ethnic and also the racial groupings offer their members with a way of security and a pull-out possibility in hardship Guess (2006). Indeed, the success of the East in recent times has been attributed to the prevalence of family values, cluster identity, and also the networks of racial and ethnic teams that offer the much-needed support for beginning new ventures or growth of existing ones. On the opposite hand, the widening financial gain difference within the West, that is another sort of stratification, has been damned for the deterioration and degeneration in those countries.

Hierarchy and its uses and disadvantages

Turning to the conception of hierarchy, it's so the case that any organization or grouping of individuals should be class-conscious if decision-making and responsibility also as responsibility of those groupings is to actualize. In different words, though' most people hate the very fact that hierarchy among peoples create some superior et al. inferior, for functions of cohesion and coherence also as discipline and order, some semblance of management ought to be gift that is provided by hierarchy Perry-Rivers (2014). As mentioned earlier, this is often not a justification for the prevalence of cluster identities supported slender conceptions of attribute. Rather, the examination of what area unit trends in societies is that the focus of this text and as research shows, these groupings area unit a great deal gift each within the West (based on financial gain and sophistication together with race) also as within the East (based on ethnic, religious, and different social groupings). Hence, any policymaker or top executive should essentially take into consideration these realities and while not paying an excessive amount of importance to the divisions, should work with them and among them also as rise on top of them if he or she should create a bearing on the organizations that they head. The ideas of stratification and hierarchy area unit closely tangled, joined cannot exist while not the opposite Davis and Moore (1945). though' this is often wrong proven fact that some teams area unit deemed superior to others, the very fact that business leaders have to be compelled to perceive the various social structures and base their methods on shrewd observation can't be denied. As has been emphasised throughout this text, the simplest approach would be one wherever hierarchy is set supported benefit and stratification is absent except wherever the requirement for decision-making and execution of strategy is bothered. In different words, the really nice business leaders area unit alert to the social cluster variations however rise on top of them and make sure that their methods area unit realistic while not obtaining caught within the lay cluster and intra group warfare and strife Noel (1968).

Closing Thoughts

Finally, it's time we tend to acknowledge the very fact that the twenty first century belongs to world leaders UN agency understand the importance of cosmopolitan leadership instead of archaic divisions Olinto and Jaime (2012). On the opposite hand, they have to be cognizant of the native realities which might create them avoid the error of forcing world notions on the society while not a transparent understanding of the on the bottom scenario.


  1. Perry-Rivers, P. (2014). Stratification, Economic Adversity, and Entrepreneurial Launch: The Converse Effect of Resource Position on Entrepreneurial Strategy. Entrepreneurship Theory & Practice, 40(3), 685
  2. Guess, T.J. (2006). The Social Construction of Whiteness: Racism by Intent, Racism by Consequence. Critical Sociology, 32(4), 649-673.
  3. Noel, D.L. (1968). A Theory of the Origin of Ethnic Stratification. Social Problems, 16(2), 157-172
  4. Olinto, P., & Jaime, S (2012). An Overview of Global Income Inequality Trends. Inequalitty in Focus, 1(1).
  5. Davis, K., & Moore, W.E. (1945). Some Principles of Stratification. American Sociological Review, 10(2), 242- 249.
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