Culture
Kroeber and Kluckhohn (1952) present perhaps the clearest definition of culture;
‘…patterns, explicit and implicit of and for human behaviour acquired and transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiment in artefacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and, especially, their attached values; culture systems may, on the one hand, be considered products of action, on the other as conditioning elements of future action.’
Ethics
Lowe and Leiringer (2006) noted that ‘ethics constitutes a vital behavioural link between culture, climate and behaviour of members of an organisation within both the contextual norms of the organisation and also the norms of the wider society, including the behaviour standards required by the prevailing law.’
An example would be in 2008; London and New York businesses were hit by the credit crunch, but Dubai was expanding its financial sector and so, looking for workers to recruit from both countries. The cultural differences between Dubai and countries like The US and UK meant that workers had to familiarise themselves with the cultures and ethics of the organisations, but also keep in mind the differences in the countries’ laws, since Dubai is ruled by Shari’a (Islamic) law.
Without the appropriate awareness of both the culture and ethics within an organisation, management will never achieve optimum effectiveness. The organisation may reflect certain aspects of the culture and ethics of the wider society (such as the example about Dubai), and so it is essential for managers to familiarise themselves with those also.
Globalisation
With improved worldwide communication, globalisation has now become commonplace, resulting in a reduction of barriers of entry for international trade compared to previous times. This means a boost in the number of Multi-National Corporations (MNCs). Common problems that MNCs face include language barriers, selling and marketing in foreign markets, and communication and co-ordination between subsidiaries.
The simplest solution would be to involve the locals, with their various different backgrounds, religions, cultures and mind-sets and use their knowledge of the laws, culture, and work methods. In order for these people to work effectively with the organisation, as well as each other, it is the managers’ role to understand the cultures of both the location of the MNC subsidiaries, as well as that of the people. As Charles Handy (1976, p.216) notes; ‘It is left to the manager to handle the culture, to differentiate and to integrate within his own organisation.’
Cross Cultural Management
Companies such as McDonalds have been criticised for imposing ‘American culture’ in some of their foreign outlets, despite having local workers and managers within their stores. This indicates that managers at higher levels are less culturally aware and therefore impose the culture that they know best, as opposed to learning about the one that already exists and working with that. Charles Handy (1976, p.183) writes: ‘Not all cultures suit all purposes or people…people are often culturally blinkered, thinking that ways that worked well in one place are bound to be successful everywhere. This is not the case.’
Even using cultural profiles provide only a small example of national character, of which there may be a variety of variations, such as subcultures. For example, Americans or Britons may think of the Chinese or Indians as homogenous, but distinct ethnic groups within both countries, differing in religion, language, dialects and customs. A further example would include the USA, where work is performance based, and promotions or relegations (if required) are given accordingly. In contrast, Indian companies look for ‘organisational compatibility’ – whether or not the employee ‘fits’ into the company with everybody else.
Corporate Culture
A manager must be an effective leader, and as mentioned by Nuttall (2002, p. 153); ‘someone others are willing to follow, who will look after their interests and who can get them to work to the best of their ability for the good of the organisation.’ A manager cannot look after the interests of his workers if he does not understand the interests, and the only way he can do that is by understanding the culture, ethics and environment of the organisation, as well as the workers. A manager should try to adopt a style that is most effective according to the situation at hand, adapting himself rather than changing the organisation, which may be set in its way (although that is no good either).
One such example is that of Zuriada, Credit Control Team Leader of APQ Enterprises. Although her usual management style is democratic, when she was promoted to her current position, she realised that the rest of her team were used to being told what to do and therefore relied on her to make the decisions. Rather than taking them out of their comfort zone, in which she could see they worked their best, she changed her own style to become more autocratic. She understood the corporate culture and adapted accordingly (Contingency management – requires managers to adapt to the local environment and people and to adjust their management styles accordingly).
Communication
As previously mentioned, language barriers are a common problem for MNCs. Even with a good grasp of a second language though, it will always be interpreted according to your own culture, or even compared to it. Context also affects the meaning. For example, Japanese and American management styles can sometimes be seen as polar opposites. The Japanese culture is not explicit, but polite – therefore feelings and thoughts are not blurted out. American culture on the other hand is straightforward, explicit. Thoughts are said aloud and bounced off each other. If there was communication between Japanese and American firms, the Japanese may even be offended at the brashness of the American company, even though the Americans had no intention of being so, they were simply doing what comes naturally to them and is accepted within their culture.
From this it is clear that culture is of high importance for the environments in which organisations operate. Cameron and Quinn (1999) suggest that culture acts like ‘glue’, binding people together into groups within society. As mentioned by Lowe and Leiringer (2006); for managers, ‘Intracultural awareness is a precursor to intercultural sensitivity, understanding, and thence management.’
REFERENCES
1. Handy, C, 1976, Understanding Organizations, Penguin, 4th Edition.
2. Nuttall, C. J. , 2002, Business Studies: IGCSE, Cambridge University Press, 4th Edition
3. Lowe, D, Leiringer, R, 2006, Commercial Management of Projects; Defining the Discipline, Blackwell Publishing [Found secondary references 1. Kroeber and Kluckhohn (1952) 2. Cameron and Quinn (1999)]
FEEDBACK:
You acquire sufficient understanding on the topic you have chosen to analyse. On the other hand, you do not adequately analyse, neither refer to crucial aspects of the already known theory (e.g. Hofstede's dimensions including uncertainty avoidance, individual vs collectivism and feminity vs masculinity, etc.). Also you should have referred to political and legal challenges more analytically. Your examples are relevant to the theoretical assumptions you make, while your ideas are sufficiently communicated and clarified via a variety of references. Your language is clear enough and your text's organisation is of sufficient level. Try to avoid 'quoting' so much. References are placed and written nicely, although I expected to see greater diversity and more academic sources.
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