BBA Study Material Organisation Culture and Globalization

BBA Study Material Organisation Culture and Globalization

BBA Study Material Organisation Culture and Globalization

BBA Study Material Organisation Culture and Globalization

An Introduction

The contemporary definition of Organizational Culture includes what is valued; the leadership style, the language and symbols, the procedures and routines, and the definitions of success that characterizes an organization. It is a specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization

Here, organizational values are beliefs and ideas, about, what kinds of goals members of an organization should pursue and the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develops organizational norms, guidelines or expectations that prescribe appropriate kinds of behaviour by employees in particular situations and control the behaviour of organizational members towards one another

In the past 25 years, the concept of organizational culture has gained wide acceptance as a way to understand human systems. From an open system perspective, each aspect of organizational culture can be seen as an important environmental condition affecting the system and its subsystem. Increased competition, globalization, mergers, acquisitions, alliances, and various workforce departments have created a greater need for organizational culture. Thus, it has become an important pattern for the organization’s development.

Organizational culture can be defined as a system of shared beliefs and values that develops within an organization and guides the behavior of its members. It includes routine behaviors, norms, dominant values, and a feeling or climate conveyed. The purpose and function of this Culture is to help foster internal integration, bring staff members from all levels of the organization much closer together, and enhance their performance organization’s development.

According to Edgar Schein, “Organizational culture is a pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with problems of external adoption and internal integration that has worked well enough to be considered valuable and therefore, to be thought to new members as the correct way to perceive, think, and feel, in relation to those problems.”

According to W. B. Turnstall,  Organizational culture is a general constellation of benep morus, volve systems, behavioural norms, and ways of doing business that are unique to each corporation.”

Important Key Ingredients Of Organisation Culture

1. It focuses attention on the human side of organizational life, and finds significance and learning in even its most ordinary aspects.

2. it clarifies the importance of creating appropriate systems of shared meaning to help people work together toward desired outcomes.

 3. It requires members especially leaders, to acknowledge the impact of their behaviour on the organization’s culture

4. It encourages the view that the perceived relationship between an organization and its environment is also affected by the organization’s basic assumptions.

 5. Organizational culture is possibly the most critical factor determining an organization’s capacity, effectiveness, and longevity. It also contributes significantly to the organization’s brand image and brand promise.

6. Organizational Culture creates energy and momentum. The energy will permeate the organization and create a new momentum for success.

The above-mentioned relevance of organizational culture supports the proposition that, in this competitive and globalize corporate scenario, there is huge need of organizational development strategy at various workforce departments, as this can improve the company’s culture. Thus, to fulfill organizations development needs, Organizational Culture Center is the better option! With its outstanding services, OCC provides meaningful responses to the company’s wants, needs and values. Its services range from Workshop, Speaking to Consulting and Coaching.

OCC, Workshop and speaking service teach cultural enhancement programs to the attendees to improve their cultural effectiveness. It educates current and emerging leaders on issues related to organizational culture. Besides, its associates work parallel with leaders at every level of the organization by engaging and training them to understand workplace culture and to assume their responsibilities as the cultural leaders of their own individual subcultures.

Organizational Culture Center’s thirty years of experience of building culture, combined with Vision Link process, provides a complete guideline of six critical elements of workplace cultural effectiveness with the power of strategic mapping and the balanced Scorecard. This proven and highly effective leadership concept brings about a direct linkage between the activities and measurements of every associate at every level of the organization with the vision and strategy of the enterprise as a whole.

Improving organizational culture has become a necessity in today’s ever changing business environment people want to work a company they can be happy and balance work and life. Organisation that treat their members well have experienced a better retention rate, an increased productivity and a happier overall culture.

Improving organizational  culture can a big challenge for the organisation and its members Getting the right training for your employees is the first step toward improving organizational culture.

Determinants Of Organisational Culture  

Religion may be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred. Most ethical systems which guide and shape human behaviour are The relation between religion, ethics and society is subtle, complex and profound. While religion influences values (which are the bedrock of culture), yet countries with the same religion have different cultures, for example, Bangladesh and Pakistan. Hence, religion is a weak determinant of culture

1. Social Structure:   A society’s social structure refers to its basic social organisation. Although social structure consists of many aspects, for study of cultural differences, two aspects of it are more important. The first is the degree to which the basic unit of social organisation is the individual, as opposed to the group. In most other societies the group is the basic unit of social structure and an individual considers himself first as part of his family or the company for which he works.

2.  Social mobility :  This refers to the extent to which individuals can move out of the strata, caste or class in which they are born. The class system is less rigid than the cast system which is prevalent in India. While most societies have a class system, social mobility within it varies from society to society.

3. Language :  Language is an essential element of culture for it reflects its nature and riches. It is language which distinguishes one culture from another although language could be said to reflect the nature and values of a culture, this is not always the case. English is the official language of many countries, such as Australia and Singapore, but the two countries are culturally diverse, English tends to be business language, while French is seen the language of diplomacy.

Language is also symbolic communication in terms of space, time and friendship, and marketers need to be aware of these ‘silent languages’. Body language differs from culture to culture.

4. Education :  Learning and sharing cultural values happens through the education system. The educational system can take many forms and it is important to understand the differences because it can indicate the type of consumer market available and the quality of human resources available for employment and training,

5. Aesthetics : The aesthetics of a culture refers to design, forms colors, shapes, sounds -things conveying the concept of beauty and good taste. These are reflected in the music, art, and architecture of a society. The aesthetics of a culture can affect a firm’s marketing strategy, diplomacy and management of human resources

Types Of Organisational Culture

1.Power culture : This type of culture provides excitement and drives for some people but seems threatening to others. It depends on strong leadership from central power source controlling and manipulating all activities within the organisation. This culture functions mainly through subordinates looking to the boss for all decisions and clearances. Money and status are more highly valued than technical expertise. Members who want to progress from network of influential people to increase the information and connection they hold are part of this culture. This culture is usually found in small entrepreneurial organisations and in companies with autocratic bosses.

2. Role culture :  This type of culture place great value on functions, job specialization, procedures and rules. Job descriptions, authority relationships and communication procedures are formal and the role of the manager is to coordinate activities between the different functions. Everyone sticks to his job description and role and any unforeseen event is referred higher up. This culture is followed in bureaucratic, mechanistic organisations where is environment is simple and stable.

3. Person culture :  The primary objective of this culture is to serve the individuals in a group, structure, rules, procedures, and roles are only to serve the needs of individual members. Change occurs only to meet their needs and control is exercised by mutual consent of the members. The wishes of professionals are the central focus of this culture. People are attracted to the culture which reflects the value they hold and the way in which they wish to work. Sometimes even if comfortable, people may not feel comfortable if the culture does not match their value system.

4. Strategy and organisation culture :   strategy and external environment are big influences on corporate culture. Corporate culture should embody what the organisation needs to be effective within its environment. For example, if the organisation requires flexibility and responsiveness, the culture should encourage adaptability. The right relationship between cultural values and beliefs, organizational strategy, and the business environment can enhance business performance.

5.Adaptability culture :   Adaptability culture is characterized by strategic focus on the external environment through flexibility and change to meet customer needs. The culture encourages norms and beliefs that support the capacity of the organisation to detect, interpret and translate signals from the environment into new behaviour responses. Companies with this type of culture need to react to bid for new projects and have the capacity to restructure or adopt a new set of behaviors and processes for New tasks Marketing electronics and cosmetics companies may use this culture because they have to move quickly to satisfy customer needs.

6. Mission culture :  Mission culture is ideal for an organisation concerned with serving the external environment but without the need for rapid change. Mission  culture plan importance on a shared vision of organisation purpose. The vision provides members’ work activities with meaning that goes beyond typically defined jobs and role work activities with meaning that goes Capitation leaders shape behaviour by envisioning a desired future state the important to everyone.

7.focus Involvement culture :   Involvement culture participation of the organisation in the rapidly changing expectations of the external  environment. A high-involvement culture has a clan-type structure. More than a other type, this culture focuses on the needs of employees as the route to beer performance. Involvement and participation create a sense of responsibility and ownership and hence, greater commitment to the organisation. Companies in fashion and retail industries also use this type of culture because it releases the creativity of employees, enabling them to respond to rapidly changing consumer tastes.

8.Consistency culture :   Consistency culture has an internal focus and an orientation towards a stable environment. This type of culture supports a methodical approach to doing business. Symbols, heroes and ceremonies support cooperation, tradition and rule by well laid-out procedures and policies to achieve organisation goals. Personal involvement is lower, but that is outweighed by a high level of consistency, conformity and collaboration among members. This organisation succeeds by being integrated and efficient

Important Steps For Enhancing Organizational Culture Include

1.Analyze your organization’s existing culture and compare it with expectations and perceptions. customers

2.Form a diverse team of interested and enthusiastic people in an organization to enhance the organizational culture.

3.Get your team to discuss the current culture and explain the parts of the culture that are already great and need to be supported. Then create a vision of the culture you want to create, taking into account the entire current picture of the organization.

4.Provide the appropriate training to the team members regarding the vision of the culture.

5.Communicate to everyone to bring awareness about the team and organizational leadership, that this isn’t a band-aid, quick fix but an ongoing strategic intention to build a more attractive culture that fits the needs of the organization and that can improve its culture.

Local Adaptation

It is very important for an organization to understand that its company’s executives must understand the cultural practices within different countries, in order to be successful within those countries, and that management style must be modified to be in accord with the people they are interacting with in those countries.

It is still even more important for organizations to understand that to be successful in today’s global environment, they should adapt their cultural practices to the different settings where their businesses are taking place

This does not mean that they should modify their set of values, these should remain the same across the frontiers, because these are the ones that give the organization its own identity. It is the practices related to these values the ones that should be adapted.

Some organizations can confuse practices with essential core values, and try to apply the same practices that are appropriate for their own culture in a different context, where these practices can actually be inappropriate or even counter-productive.

Going back to the organizations that have as an essential value the “more client-oriented” attitude, one that because of their own culture they greet clients by their first names to show courtesy and personalized service. However, should this organization decide to do business with or establish offices in Germany and started to call their clients by their first name, this would be considered an insult, because Germans tend to address each other by their last names.

In this particular case, the “client-oriented attitude” must remain unaltered for the entity that decides to establish a branch office in Germany – this is an essential business culture. What the entity should do in this case is find appropriate cultural practice so that its German clients can feel the courtesy and personalized treatment.

There are many examples of errors that many organizations have had to face; especially those that have recently expanded their horizons into international markets. By not understanding the difference between cultural values and cultural practices, they have had to prices for these errors because in many cases those erroneous practices have affected clients and the organizations employees.


An organization that has been successful in a market, and said achievement has been partially due to its having a strongly defined and structured Business Culture, should at the time of expanding its horizons into international markets clearly define the entity’s essential values to be able to export them into the new markets, although it will be much more important to understand that local market’s idiosyncrasy to be able to adapt the cultural practices at the same time.

Importance Of Culture Sensitivity For Global Business And Diplomacy

  1. International managers need to know about cultural differences among nations in order to be able to:
  2. Communicate effectively with customers, suppliers, business associates and partners in other countries and with foreign employees.
  3. In order to conduct negotiations among the various parties to negotiation.
  4. Predicts trends in social behaviour likely to affect the firm’s foreign operations,
  5. Understand ethical standards and concepts of social responsibility in various countries.
  6. Predict how cultural differences will affect consumer reactions to advertisements and other promotions.
  7. Foster relationships between union confederations and employee association requiring cultural empathy.
  8. Understand local government policies and influence it for business promotion.
  9. Conduct efficient meetings in different countries and encourages employee participation in management.

Cross Cultural Differences And Similarities : Basic Assumptions

  1. The behavior in an organization setting indeed varies across cultures. Thus the employees in companies based in Japan, The United States, and Germany are likely to have different attitudes and patterns of behavior. The behavior patterns are likely to be widespread and pervasive within an organization.
  2. Culture itself is one major cause of this variation Culture is a set of shade values, often taken for granted, that help people in a group, organization or society to understand which actions are considered acceptable and which are considered unacceptable.
  3. Although behavior within the organizational settings (Eg. Motivation and attitude) remains quiet diverse across cultures, organizations, and the way they are structured appears to be increasingly similar.
  4. The manager behaves differently in different cultural settings. A manager may adopt one set of behavior when working in one culture but change those behaviors when move to different cultures.
  5. Cultural diversity can be an important source of synergy in enhancing organizational effectiveness. More and more organizations are coming to appreciate the virtues of cultural diversity but still no very little about how to manage it.

Organizations that adopt a multinational strategy can – With effort- Become more than some of their parts. Operation in each culture can benefit from operations in other cultures through an enhanced understanding of how the world works.

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