Performance management and agility emerge as key risks for Indian workplace culture

Indian organisations are entering a crucial phase of cultural transformation. A new study by Gallup and the National HRD Network (NHRDN), titled The Culture Imperative: Insights for India’s Next Chapter, finds that while ethics, inclusion, and purpose are widely viewed as cultural strengths, significant risks exist in how Indian workplaces manage performance, respond to disruption, and inspire through leadership.

According to the study, which draws on input from over 350 HR professionals, 61% of Indian senior HR leaders cited ethics and compliance as a defining strength in their organisational culture. Diversity, inclusion (45%), and mission alignment (42%) were also identified as core pillars that provide employees with meaning and trust.

However, the report acknowledges that these strengths alone are insufficient in addressing the pace of external change. In a landscape shaped by disruption and rising employee expectations, Indian organisations risk falling behind if they fail to evolve how they manage talent and foster adaptability.

The paradox of workplace ethics

Ethics emerged as the most frequently cited cultural asset in the study, with leaders describing it as part of their organisational DNA. Transparent leadership, zero-tolerance for misconduct, and safe reporting mechanisms were among the features highlighted.

Yet this finding may raise eyebrows beyond the HR community. Public discourse and anecdotal reports often suggest a more complex picture — one in which workplace ethics remain vulnerable to inconsistency, opacity, and pressure to conform. High-profile corporate governance failures and employee experiences of ethical dilemmas without recourse continue to fuel scepticism.

This disconnect may stem from the difference between aspirational leadership perspectives and lived employee realities. As Gallup notes, ethics may be strong in policy and intention, but not always in execution. The report, based on leadership and HR input, focuses on governance structures and leadership behaviour rather than the everyday employee voice.

Nonetheless, the recognition of ethics as a strategic asset reflects a positive shift in how Indian organisations are framing culture — not just as compliance, but as a business imperative linked to engagement, credibility, and long-term success.

Performance management: a dominant risk

Despite strong foundational values, performance management is cited by 45% of HR leaders as the most pressing cultural risk. Many organisations have formal evaluation systems in place, but these often fail to provide meaningful, developmental feedback.

Gallup’s data shows that employees who receive meaningful weekly feedback are five times more likely to be engaged. Yet most Indian workplaces continue to rely on infrequent reviews, leading to uncertainty and disengagement. The report argues that a cultural shift is needed — from evaluation to coaching — to truly unlock employee potential.

Agility and disruption: constrained by legacy systems

A further 44% of leaders identified disruption readiness and agility as cultural risks. While Indian organisations are operationally strong, they often struggle to respond quickly to change. Bureaucratic decision-making, cautious leadership, and siloed information flows impede innovation and speed.

Gallup identifies eight cultural traits essential for agility, including empowerment, experimentation, and cooperation. The report notes that transforming agility into a cultural norm — rather than an ad-hoc reaction — is critical for long-term resilience.

Leadership inspiration: present but inconsistent

The final major cultural risk identified is leadership inspiration, cited by 29% of HR leaders. While employees often trust leadership, they do not always feel motivated or connected to a larger vision.

Gallup research shows that in times of uncertainty, employees look for hope, authenticity, and purpose from their leaders. The report calls for building a “deep leadership bench” — ensuring inspiration is not concentrated at the top, but distributed through managers who engage and coach their teams daily.

Culture is a leadership outcome

The report ultimately positions culture as a leadership imperative. It argues that what leaders do — not just what they say — defines whether ethics, inclusion, agility, and performance are embedded or eroded.

As India’s economic and workforce landscape continues to evolve, the most resilient organisations will be those that align their cultural values with agile, accountable leadership. Ethics, inclusion, and purpose provide a stable foundation — but agility, feedback, and inspiration will determine future readiness.

This perspective from HR leaders offers valuable insight into how Indian organisations perceive themselves. But readers should also consider the broader public discourse, which may reflect a different experience of these cultural attributes, particularly in areas like ethics and transparency.