Why you need to know essentials lying between national and organizational culture?

And how it will make you more sensitive to breathtaking opportunities in managing your business in always changing the cross-cultural world?

How do the dimensions of a national culture affect the organizational?

Organizations are faced with two principal questions in their business:

  1. Who will be the decision-maker (i.e., how will the power be distributed)?
  2. How to face uncertainties (which procedures are required to achieve the set goals)?

Authors emphasize two critical dimensions regarding organizational functioning - a distance of power and attitude to uncertainty.

Implicit business organization models can be determined based on attitude towards these two phenomena. The cultures characterized by

  1. Considerable power distance and high uncertainty avoidance are in the most cases characteristic of the pyramid of people as an implicit business organization form.
  2. Small power distance and high uncertainty avoidance - implicit business organization form is the well-oiled machine.
  3. small power distance and weak uncertainty avoidance - inherent business organization form is the village market model
  4. considerable power distance and weak uncertainty avoidance - implicit business organization form is the family model

Of course, the dimensions of national culture are not the sole factor affecting implicit business organization models in a country.

Organization models and management depend on organizational purpose (the police and state government bodies, therefore, have a pyramidal structure, banks function as a well-oiled machine, research institutions apply the village market model, while street hot-dog vendors are organized as a family). Implicit organization models also depend on social classes - expansion of the middle class leads to reduced power distance.

The “membership” in a culture is permanent. Since we are not willingly born as a part of a specific culture, the fundamental values we acquire during the socialization process prepare us for life in a given culture. Membership in organizations is temporary, as we enter of our own free will. In this respect, organizational culture differs from the national culture, having been based on introducing staff members to the dominant behavioral patterns.

In what way does an organizational culture change? Since behavioral patterns are more comfortable to change than the values, it is done through the change of practice.

  • Practice is changed by changing the organizational structure, as structure always follows culture.
  • After the structure has changed, styles of control have changed also.
  • Decisions on authority delegation are made after that, followed by the decisions about the required profiles, type of training and the reward system.
  • Henceforth, the top management consistently monitors the changes in organizational functioning and assesses the need to change the corporate culture and consequently the style of management.

How many types of organizational culture do exist?

Numerous authors suggest several types of organizational culture.[1] [2] It is essential to keep in mind that every organization, depending on its size, can have different subcultures within its sectors. For example, research institutions and universities have administrative departments characterized by a specific subculture, separate from the dominant organizational culture. Knowledge of the specificity of subcultures within organizations is required to have a more comprehensive overview of the corporate culture and, finally, to make an assessment of interactive effects of the subcultures as well as the dynamics and measurements of their individual and total impact on organization's financial or non-financial performance:

  • Process-oriented culture(Deal T. K., 2000, str. 14)[3]  Typical of the state government bodies vs. task- oriented or outcome-oriented culture (O Reilly, 1991)[4], in which employees have a dominant orientation and awareness about the desired result. In task-oriented cultures people feel comfortable in new situations which lead to a profitable outcome (Handy, 1992 , str. 188); Process-oriented culture or Role culture according to Handy, relies on the standardization of results as a control mechanism as well as give more importance to their structures than the purpose of the business (Handy, 1992 , str. 185)[5]. For leaders in that type of culture, it is essential to know that Trompennars and Hamden-Turner, process-oriented culture identified with the Eiffel Tower culture. (Trompenars & Hampden-Turner, 1998, str. 166)[6]
  • Staff-oriented ( person oriented or people oriented culture (O Reilly, 1991)[7] indicate concern for the staff wellbeing (Handy, 1992 )[8]; whereas work-oriented cultures, i.e., professional cultures, are characteristic of institutions of higher education, as the staff identifies more sharply with their profession than with the organization. (Burns & Stalker, 1961)[9] Members of the organization who are at a lower level of education tend to identify with the group they work for; Staff- oriented culture as a concept can be recognized in Trompennar's typology of organizational cultures as one of the specific types: as an incubator culture.

  • Employees of organizations with a parochial culture(Hofstede G. , Identifying organizational subculture: an empirical approach, 1998, str. 4)[10]  Or with a family-based culture (Trompenars & Hampden-Turner, 1998, str. 158)[11] expect the preference to be given upon employment to the members of their families, solely due to family ties and not by professional competence. In a parochial culture, staff members also expect the employer to consider their social and family status rather than their professional ”background." The professional culture was devised on the depersonalized control and avoidance of managerial discretionary power
  • Open-system or reactive(Scholz, 1987)[1] and closed-system culture differs in style of internal and external communication, and speed at which outsiders and newcomers are accepted as equals.
    think_outside_the_box-open_up-free_your_mind-pandora-pandoras_box-sma0098_low

 

  • Tightly, stable(O Reilly, 1991)[2] or culture reflecting in its attention to detail (O Reilly, 1991) loosely controlled culture focuses on the formalities within organizations. Tight control is typical in organizations within specific technology sectors, such as pharmaceutical industry and banking, whereas looser control is expected, if not desired, in areas of research and development, design, advertising, and so on.
  • Pragmatic or the work hard/play hard culture(Deal T. K., 2000, p. 13)[3]   normative culture is defined according to how organizations treat their environment, most of all - customers. To be successful, sales departments develop a pragmatic, flexible culture, while accounting, finance, and other similar units have a normative, i.e., rigid culture. Organizations with a pragmatic culture are called „market-driven," while the normative culture is indicative of process-oriented departments. Organizations ruled by large, hierarchical, centralized bureaucracies tend to corrode interpersonal trust according to Putnam. (Putnam, 1993) Historically, the Roman Catholic Church was the prototype of a hierarchical, centrally controlled institutions. (Harrison & Huntington, 2000, str. 91)[12]

[1] Scholz, C. (1987) Corporate Culture and Strategy – The Problem of Strategic Fit; Long Range Planning, Vol. 20; No. 4, pp 78-87

[2] O'Reilly, C.A., Chatman, J.A., Caldwell, D.F., (1991) People and organizational structure: A profile comparison approach to assessing person-organization fit; Academy of Management Journal; Vol. 34, pp. 487-516, https://faculty.haas.berkeley.edu/chatman/papers/36_peopleorgculture.pdf

[3] Deal T., Kennedy, A. (2000)  The New Corporate Culture: Revitalizing the workplace after downsizing, mergers and reengineering; London; Texere Publishing Limited,  pg. 13; http://www.worldcat.org/title/new-corporate-cultures-revitalizing-the-workplace-after-downsizing-mergers-and-reengineering/oclc/757705699?referer=di&ht=edition

[4] Putnam, R. (1993) Making Democracy Work: Civic Tradition in Modern Italy; Princeton University Press (Putnam, 1993)

https://s3.amazonaws.com/lowres.cartoonstock.com/media-editor-favourite-freelance-free_lance-freelancer-mmtn37_low.jpg

[1] https://geert-hofstede.com/tl_files/art%20organisational%20culture%20perspective.pdf

[2] Trompenars, F.; Hampden-Turner, C.;(1990) Ridding the Waves of Culture: Understanding Diversity in Global Busines; 2nd Editon, McGraw-Hill, New York,   https://www.amazon.com/Riding-Waves-Culture-Understanding-Diversity/dp/0071773088

[3] Deal T., Kennedy, A. (2000)  The New Corporate Culture: Revitalizing the workplace after downsizing, mergers and reengineering; London; Texere Publishing Limited,  pg. 14; http://www.worldcat.org/title/new-corporate-cultures-revitalizing-the-workplace-after-downsizing-mergers-and-reengineering/oclc/757705699?referer=di&ht=edition

[4] O'Reilly, C.A., Chatman, J.A., Caldwell, D.F., (1991) People and organizational structure: A profile comparison approach to assessing person-organization fit; Academy of Management Journal; Vol. 34, pp. 487-516, https://faculty.haas.berkeley.edu/chatman/papers/36_peopleorgculture.pdf

[5] Handy, C. (1993) Understanding Organizations; London, UK; Penguin Books, Ltd. 4th edition, pg 185

[6] Trompenars, F.; Hampden-Turner, C.;(1990) Ridding the Waves of Culture: Understanding Diversity in Global Busines; 2nd Editon, McGraw-Hill, New York, pg. 166,  https://www.amazon.com/Riding-Waves-Culture-Understanding-Diversity/dp/0071773088

[7] O'Reilly, C.A., Chatman, J.A., Caldwell, D.F., (1991) People and organizational structure: A profile comparison approach to assesing person-organization fit; Academy of Management Journal; Vol. 34, pp. 487-516, https://faculty.haas.berkeley.edu/chatman/papers/36_peopleorgculture.pdf

[8] Handy, C. (1993) Understanding Organizations; London, UK; Penguin Books, Ltd. 4th edition

[9] Burns, T.E., Stalker, G.M. (1961) The Management Innovation, Administrative Science Quarterly, Vol. 8, No 2; https://www.researchgate.net/publication/230557479_The_Management_Innovation

[10]   Hofstede, G. (1998) Identifying organizational subcultures: an empirical approach; Journal of Management Studies; Vol. 35, No 1, pg. 4

[11] Trompenars, F.; Hampden-Turner, C.;(1990) Ridding the Waves of Culture: Understanding Diversity in Global Busines; 2nd Editon, McGraw-Hill, New York, pg. 158  https://www.amazon.com/Riding-Waves-Culture-Understanding-Diversity/dp/0071773088

[12] Harrison, L.E., Huntington, S.P.; (2000) Culture matters: How values shape human progress; Basic Books, New York, pg. 91