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Chapter 7, the role of organizational culture
How does culture affect international business
How does culture affect international business
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Recommended: Chapter 7, the role of organizational culture
There are many culture researchers that have explain culture and how individuals behaves in an organisation, we have Porter & co. (1975), George Murdock (1940), Clyde Kluckhohn (1952) etc. but this report shall be mostly based on the Geert Hofstede (1980) cultural dimension. He investigated the interactions between national and organisational cultures using the IBM workers as a case study and came out with four dimensions and later added two more at different times. They are:
Power distance
Individual & Collectivism
Masculinity and Feminity
Uncertainty Avoidance
Long-Term Orientation
Indulgence versus Restraint (Hofstede, national-culture, 2011).
Date checked 15th of May 2013
2.0 INTRODUCTION
The company BOOMOR enterprise is a company that produces quality wrist watches mainly for the youth and teenagers. The enterprise was established in 1980 in the United Kingdom, presently it is operating in 20 major cities in the United Kingdom with the headquarters in Northampton. Currently it is situated in 5 countries in Western Europe and 3 other countries in Eastern Europe. The company enjoys 40% of the market share. The main aim of the company is to be number one wristwatch producer in the world within the next 20 years and the principles guiding the company is to be professional, trustworthy, be customer friendly and providing all these services at an affordable price to our customers.
To expand the enterprise internationally, the human resource department have study the national cultures of those countries and the impact of culture on the way of doing business because different areas has different ways of doing things. The enterprise has decided to move to this countries in differen...
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... business and even the climatic condition of the environment the company should make sure the expertrate selection process is done carefully to avoid repatriation which would cost the company loss of money and loss of time.
As all good things also have their short comings so also is the Geert Hofstede cultural dimensions it can be related to all spheres of human life and also used to evaluate cultures.
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Geert Hofstede, a Dutch psychologist, was hired by the International Business Machines Corporation (IBM) in the 1960s and 1970s to examine the values and concerns of their employees around the world. While performing this task, Hofstede intentionally explored values related to individualism to understand and compare various cultures. By observing significant differences between cultures, Hofstede was able to formulate the cultural dimensions theory in an attempt to understand cultural trends between cultures, incorporate cultural contexts, and compare individual’s ways of thinking socially. Personally the attempt to quantify culture through various dimensions intrigues me, as I believe that it may be possible. However, I believe that Hofstadter’s current model lacks the proper controls necessary to account for the complex nature of culture.
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This essay gives a basic idea of what organizational culture is, and emphasis on the controversial issues of managing organizational cultures. As there are various definitions for organizational culture, and none of them are universally agreed. Therefore, for an easier understanding by readers, the definition of organizational culture given in this essay focusing on levels of culture, and will be discussed t together with Schein's(1983) framework. Before talking about managing organizational cultures, the types will be introduced first. Because, there are some descriptions about managing different types of organizational cultures, in the following content.
Rafter, M. (2009, March). Return trip for expats. Workforce Management, 88(3), 1,3. Retrieved July 21, 2010, from ABI/INFORM Global. (Document ID: 1669809321).
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International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...
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The Hofstede model of national culture differences, based on research carried out in the early seventies, is the first major study to receive worldwide attention. This influential model of cultural traits identifies five dimensions of culture that help to explain how and why people from various cultures behave as they do. According to Hofstede (1997) culture is Ù[ collective programming of the mind? This referring to a set of assumptions, beliefs, values and practices that a group of people has condoned as a result of the history of their engagements with one another and their environment over time. In this study, culture refers to a set of core values and behavioural patterns people have due to socialisation to a certain culture. The author̼ theoretical framework will be applied to compare differing management practices in China and the West. The five measurements of culture identified by the author are:
The concept of organizational culture is one of the most debated topics for researchers and theorists. There is no one accepted definition of culture. People even said that it is hard to define culture and even more change it. It is considered a complex part of an organization although many have believed that culture influences employee behavior and organizational effectiveness (Kilmann, Saxton, & Serpa 1985; Marcoulides & Heck, 1993; Schein, 1985a, 1990).
Organizational culture is the key to organizational excellence and leadership is a function to create and manage culture (Chen 1992). Organizational researchers have become more aware of the importance of understanding and enhancing the cultural life of the institution. "This study is one of a group of companies with high-performance in North America, interest in organizational culture is an important element in organizational success. Tesluk et al (1997). Looking at the" soft "of the organization, the researchers claim that" the organizational culture may be suitable for a means to explore and understanding of life at work, and make them more humane and more pronounced (Tesluk et al, 1997), and the graves (1986) also stressed the importance of corporate culture, and the need for research strategies and methods of investigating the various elements and processes of the organizational culture. He argued the culture that meets the basic needs of belonging and security in an attempt to describe this gathering that culture is "the only thing that distinguishes one company from another gives them coherence and self-confidence and rationalises the lives of those who work for it. Standard that may seem random, is to enhance the life to be different, and safe to be similar, and culture is a concept that provides the means to achieve this compromise (p. 157).