Critical evaluation of the implications of organizational and national culture in managing organization in an international context
International business environment is very dynamic due to globalization and its related components. Whenever any company operates internationally then they need to focus on a variety of factors that can affect their business operations at very large scale. There is a huge requirement of focusing on designing the appropriate strategies so that the negative implications of international environment could be eradicated. Out of various environmental factors the impact of cultural factors is very huge and it affects the business operations both internally and externally. The implications of both organizations as well national cultures are very huge on the management of business operations at international level (Berghman and Vloeberghs, 2003). With the help of assessing the culture in the proper manner it could become easier to operate at international level. It is to acknowledge that in order to survive into any other country, there is a need of making the balance between the organizational culture and national culture. It helps in developing the pleasant business environment and mainly the favourable business situations could be developed.
In international business environment the major implication of cultural aspects is that the organization can experience a huge level of diversity within the organization. Whenever any organization went into the foreign market then they need to hire people from different backgrounds, customs and beliefs. It just creates trouble on the ground of managing the diversity within the company. It is a major factor that could be faced by national as well as organizational; culture. Now the diversity related issues could put its impact on the organizational performance in two ways, either in a positive manner or it could be in a negative manner. Majorly the negative aspects include very serious implications. The main negative implication of the diversity is that discrimination level could be high within the organization (Ashkenas, 2013). It is to acknowledge that if the diversity related aspects is not handled properly, then the people may get indulged into the discrimination practices and may create the troubling working environment for a certain group of people. It is to ascertain that it may be possible that companies may find a certain internal anti group which practices to bully other people on the ground of castes, racism, etc.
These discriminatory activities of employees may lead towards the stressed working environment, another implication of diversity within the organization as well as a national culture. It is to ascertain that the national culture is something which affect the organizational culture at very large scale or in other words, it could be said that the organizational culture is highly influenced by the national culture.Diversity is also one of them and it is very crucial as well. Thus the diversity needs to be managed properly, else the stressed working environment could be noticed (Salas, Bowers and Edend, 2001). People may hesitate to deal with another group of employees and it could definitely put stain on the reputation of an organization. The stressed working environment may develop the grudges and conflicts between the employees. Even the employer and employee relationship could be hampered. The negative implication of the stressed working situation is that the productivity of employees may be reduced. The employees don’t find a pleasant working environment and it just foster them to work under the pressurized situation. Other than diversity, the communication could be also treated as one of the major implications of organizational as well national culture. While managing the organization in an international business environment there is need of adopting the proper communication process. It is to ascertain that without communication, it is never easier to ensure sustainability within the foreign working situations (French, 2011). Thus, if the organizational and national culture is not in command, then the poor communication structure could be noticed. Employees may hesitate to share their experiences and most importantly the less interaction can destroy the interpersonal relationships as well.The communication also has a relationship with the performance of the organization at the international level. For instance, if there is any hospitality organization operating at international level, but due to the cultural differences the employees don’t communicate with each other properly. So this aspect can go against the improvement in delivering the excellent service quality to the customers. The information sharing was very low within the organization and customer may find trouble in getting the quick services from the staff. Same wise in case of conflicts and grudge the different groups might put the blame on each other about any work related error. Thus, in this way the communication can put its impact on the performance of the company. Therefore, both diversity and communication differences need to handle properly in order to gain the positive implication of cultural aspects (Heaney, 2004).
The list of implications includes tits impact on the organizational policies. It is to acknowledge that in order to improve the work environment the organization design such policies which helps the internal organizational culture to align perfectly with the national culture. Amendments in the policies related to the national culture are very common implication on the management of the organization. The code of conduct, dress code, timings etc. these are such issues that could also get affected by national culture. The policies of the company could never remain same when they operate at international level. The local norms and cultural values are required to be included painstakingly so that the national culture could be reflected within the organization.Ahead it is also clear that the organizational culture includes the leadership style or management style as well. If the national culture has not studied properly, then it won’t be easy to manage properly in an international environment (Sadler., 2003). For instance, in gulf countries, the company can’t put women at the higher positions as the power and masculine factor is more considerable in gulf countries. It is clear that in order to get the advantage of quick and hassle free decision making there is need of putting the man at the higher position due to egoistic and man driven culture the male staff could refuse to take orders from the female authorities. Thus, it explains that the national culture dominates the organizational culture. According to the Hofstede model the organization needs to focus on four dimensions of national cultural aspects and need to include them accordingly. If the four dimensions of the propounded model have been followed then it definitely affects the management in a positive manner (Sheldrake, 2003).The four dimensions are power factor, feminine, masculine, individualism and uncertainty avoidance. These factors are required to be investigated properly in order to establish business in the international level. It could help on the ground of taking the form decisions regarding building the positive organizational culture.
Other than this, it is also clear that with the perspective of building the team culture the implications of national culture could be experienced by the organization. If any country has a high score in collectivism, then the element of team environment could become successful in that country else the problems in building the teams could be faced within the organization. If any organization positive structure for the purpose of team development then it becomes easier to ensure the management of the company, on the contrary, there is a huge requirement of focusing on individualism and collectivism (Northouse, 2012). The Hofstede model concentrates on this element at very large scale. It is also essential to understand that through team formation the management of business activities at international become easier and tough opportunities could also grabbed in proper and effective manner. Thus, it is another implication of the organization as well as organizational culture on the management of the organization. Till now the diversity, communication stressed working environment, team development, decision making has been discussed as the implications of organizational as well national culture in managing the business at international level. It is to acknowledge that every single implication has both positive and negative impacts at the management structure. If a company is able to handle them positively, then the lucrative results could be experienced and on the contrary in case of not dealing with such implications in a proper manner the obstacles could be experienced by companies. All the aspects are interlinked to each other (Krakel, 2007). This statement could be easily understandable through the hypothetical business situation. For instance, if any company went internationally and they have not studied the local culture in a proper manner. They just start to appoint the people and without getting into any intention they hire the maximum number of people from one caste group. Thus, this factor gave birth to diversity related issues. Further, the employees who belong to different group they found struggle in communicating with each other. So here the problems and issues related to the improper diversity management and low level of communication could be experienced. At the same juncture the discrimination is taking place and in result its lead towards the stressed working situation. The productivity of employees could be hampered as they didn’t get pleasant working situations. The relationship and communication among the employees is not proper (Neff, 2006). Further, due to the power distance of Hofstede model it is also clear that the country people want to disperse the power from top hierarchical level to lower hierarchical level. But the company is following the autocratic leadership style which is also against the national culture. Thus the organizational culture needs to align properly and the autocratic leadership style needs to be avoided. Here at the same juncture, it could be stated that the element of collectivism is also not applied in current scenario. The people like to work on the individual basis and found troubles in getting into the team. The level of grudges and conflicts is very high. Thus again the communication process is not so proper and it might affect the entire business operations.
On the basis of the above discussion, it becomes clear that the role of leadership style is also very immense in managing the business operations. The leadership style that has been adopted by the company generally lies in the category of internal organizational culture. As per the Hofstede model it could be mentioned that the countries that has scored high on power factor there company should not focus on autocratic leadership style (Singh, 2008). It can destroy the internal organizational as in those countries the autocratic leadership is against the national culture. Further the element of feminism suggests that the countries who have scored less on feminism than it indicate that the national culture of that country is mainly driven by the man’s. Here in this situation the organization should not put women’s as higher authorities. The leadership or command should not be in the hands of women leaders. It can create the sense of dissatisfaction and employees might refuse to work under such scenario. Thus the leadership and management style is also required to be affected by the national culture. The leadership is a part of organizational culture. Further the ethical values of the company could also influence with the help of national culture. The national holidays, leave policy, festive season, etc. also needed to be considered while deciding the organizational culture within any country. Thus the major implication could be mentioned that the leadership style should be favourable as per the behavioural aspects and mindset of employees.
Above stated some of the negative implications of the organization as well as national culture, if not handled properly, have been explained like lack of productivity, stressed working situation, discrimination and improper management of diversity (Analoui, Doloriert and Sambrook, 2013). But some of the positive implications have also tended to discuss if the cultural aspects, both micro and macro cultural values, have been dealt in an effective manner. The main positive implication is related to the sustainability factor of the company. It is to acknowledge that of all the cultural norms has been followed by the company then internal working environment could be improved and most importantly the stress level could be minimized. This factor automatically leads towards the high performance and innovation could also become part of the company. Thus, once the organization is in a position to improve their productivity along with the innovation, then it leads towards the long term sustainability within that country. Thus, in order to avail the positive implication like sustainability and profitability the organization should investigate the cultural aspects at very large scale. Another positive implication is that the employee retention could become possible. Through proper alignment between the local culture and organizational culture the employees may get satisfactory or familiar working environment (Ordiz and et al., 2003). It is to acknowledge that every organization wants to retain their employees, especially when they are new into any other region or country. The employee retention is possible only if the cultural values are positive and the working environment is also satisfactory. It might include the less discrimination and favourable leadership practices. Thus, it is another very crucial significance or positive implication of cultural aspects. At last the list of positive implications includes the creation of positive brand value or image of the company.It is to acknowledge that if the organization has proper brand value, then it helps in hiring the highly skilled and competent employees. For the same purpose there is a huge requirement of aligning with the national culture so that the internal organizational culture could become appreciable. Once the organization build their reputation and positive goodwill, then it become easier for them to acquire the highly efficient employees. In return, this factor also leads towards the improvement in productivity of the company (Gardiner and Tomlinson, 2009).
Thus, the above discussion is highly helpful with respect to gain understanding about the expediency of cultural aspects with the respect to managing the business operations. If any organization wants to establish their business, then cultural factors should be investigated on the priority basis. It might help in improving the business situation. Ahead the major learning of this study is revolving around the Hofstede model it may help on the ground of gaining the knowledge about the culture of any country. The author has provided the logical discussion about the impact of different national cultural values on the internal organizational culture. Thus, this factor can help in improving the decision making process with respect to building the positive organizational culture (Analoui, Doloriert and Sambrook, 2013). Overall, it could be stated that while moving into the international business scenario, there is a huge requirement of making the balance between national culture and organizational culture especially on the ground of managing the business operations. At last the implications of organizational and national culture, both positive and negative are also clearer with the help of the current report. Mainly the lack of productivity, improper management of diversity, stressed working environment, etc. these are some negative implications. On the contrary positive implications are sustainability and profitability, positive brand value and employee retention, etc. Therefore the core objectives of the current study has been achieved in an articulated manner.
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