Organizational Culture And National Culture Commerce Essay

An organisational civilization is the key behind successful endeavors which decides operations way, strategic, vision and mission. From organisational civilization, the repute, trust, feeling and images are developed. The intent of this essay is to critically analyze the importance of organisational civilization to an apprehension of strategic direction. Strong civilization leads to increasing in gross, profitableness and stockholders ‘ value. Additionally, corporate civilization supports and underpins an organisation ‘s trade name proposition, helps concerns create and keep competitory advantage. In term of human resource, strong civilization attracts endowments, retains employees, engages people, creates energy and impulse, creates greater synergism and changes the position of ‘work ‘ ( Gallic and Rayner 2001 ) . Management partially plays an of import function in making organisational civilization, actuating creativeness and productiveness every bit good as driving the organisation to its right way. Practical illustrations are provided consequently to do this essay clearer and be more realistic. The impacts of organisational civilization to employees, clients, stockholder and society are besides illustrated. Culture is an component that direction needs to see before doing determination of growing and enlargement scheme for company. How clients and public acknowledge the brands/image of an organisation decides how successful the endeavor is. In order to last and vie, good repute, trust and positive feeling are ever necessary ( John and Saks 2008 ) . Organizational civilization, therefore, has the duty to develop the endeavor ‘s ain singularity to stand out in the market topographic point. Furthermore, at the terminal of the essays, some barriers and challenges that a strong corporate civilization can happen in term of altering and betterment, diverseness work force, amalgamation and acquisition will be identified.


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Definition of organisational civilization

Definitions about organisational civilization are many. However, it is normally known as the personality of the organisation, involves the underlying values, beliefs and codifications of pattern that make a concern what it is. Culture provides members the regulations for behaviour in their organisation. An organisational civilization can be viewed in vision, mission, nucleus value, the narratives people tell, the working ambiance ( hushed and luxuries or dirty and noisy ) , the relation among people and so on ( Martin 2002 ) .

The connexion between organisational civilization and national civilization

Organizational civilization is different from national civilization, but there is a strong connexion between the two. Organizational civilization often derives from national civilization. In other words, many of the shared beliefs and values that develop in establishment are from the civilization of local society. Nevertheless, organisations will still develop their ain civilization alternatively of depending on host civilization ( House and Hanges 2004 ) . For illustration, companies in Japan frequently promote high subject but in United States, employees are encouraged to interrupt traditional perceptual experience and be more originative. It is influenced by the national civilization and the diverseness of faiths, but it besides derives from the peculiar characteristic and experience unique to the organisation ( Wood and Wallace, 2004 ) .

Reasons make organisational civilization of import

Strong civilization

Let do a inquiry to understand more about the importance of organisational civilization. If an organisation does non hold people drawing together in a common way, how can employees ‘work together efficaciously ‘ as a squad and ‘achieve the end ‘ ? Martin ( 2002 ) said ‘a strong corporate civilization is the gum that holds people together in touch times and motivates them to draw together when a alteration program needs to be implemented ‘ . For case, Hewlett-Packard Company or HP is a transnational hardware and package corporation bosom quartered in California, United State. Due to a few jobs in 2006, HP is encouraged to alter its civilization ; staff are required to explicate three personal and three professional ends each twelvemonth, and are encouraged to hearten those that meet them, such as acquiring off early to be with household. Two old ages into the plan, HP reports no loss in productiveness despite staff working shorter hours and an increased staff keeping rate ( Parker 2012 ) . In this instance, the alteration of organisational civilization was made on clip to actuate and take HP through unsmooth clip.

Capable of increasing gross, profitableness and stockholders ‘ value

A strong civilization enables an organisation to increase its gross, profitableness and stockholders ‘ value. Additionally, an organisation ‘s trade name proposition which is supported by a strong civilization would assist concerns make and keep competitory advantage. Endowments are ever attracted by antic working environment and alone organisational civilization ( Pepper 2011 ) . Once employees like and accept civilization, they are less likely to go forth. Cultural values increase the power and authorization of direction in 3 ways: employees accepting the regulations when it is the right thing to make, internalising the organisation ‘s values when they believe they are right, and being motivated to accomplish the organisations ‘ ends. Another map that civilization performs in an organisation is to heighten employees ‘ committedness because there is a comfy lucifer between an person ‘s features and the organisational civilization ( Andre 2008 ) . The above illustration of HP shows that strong civilization retains employees, engages people, creates energy and impulse, creates greater synergism and changes the position of ‘work ‘ .

Motivate creativeness, productiveness and drive organisation to right way

Besides, an illustration about Prudential Assurance is traveling to show how strong civilization can actuate creativeness and productiveness, therefore drive the organisation to its right way. The narrative behind the Malayan Insurance company Prudential ‘s success is about a vocal. Prudential Assurance used to rank at figure nine out of all life insurance companies in Malaysia in term of new concern one-year premium income. At that clip, the company had decided to go figure one and had crafted a vocal ‘We are figure one ‘ which was sung at the start of every map the organisation held. There was a argument about whether the vocal should be ‘We are figure one ‘ or ‘We will be figure one ‘ , but it was decided to remain with the former. The vocal seems to hold served as a symbol of the company ‘s purpose of ‘selling aspiration ‘ , and has encouraged the staff and agents to keep their end. They are proud of the vocal and follow it in all the company ‘s concern. When the company becomes figure one, there will still be a topographic point for the vocal, promoting people to be more originative and execute even better ( Driskill and Brenton, 2008 ) .

The lessons from Prudential and HP so proved that ‘positive corporate civilization ‘ is now a requirement for success instead than a competitory advantage. Bettering workplace civilization makes employees experience happier and this in bend leads to improved profitableness.

Impacts of organisational civilization to strategy/ strategic direction

Associating to strategic direction ‘s position, scheme is about traveling an organisation frontward from its history into its hereafter ; in other words, it recognizes the past, focuses on the present to make future. Strategic direction includes understanding the strategic place of an organisation, doing strategic picks for the hereafter and pull offing scheme in action ( Calingo, 1997 ) . Organizational civilization, therefore, has important impacts on employees, clients, stockholders and society.

Impacts to employees

It is clearly indicated by Barrows and Powers ( 2009 ) that cultures enhance service. This is because emotions displayed by employees are related to how clients feel ; merely, happy employees create happy clients. Therefore, employees need to experience well-treated by the whole corporate civilization to present quality service. In hotel industry, work force is really of import because service is delivered by human being, non by automaton. Therefore, to keep the good service, hotels need to make the best working environment with suited policy, guarantee all employees are satisfied ( Barrows and Powers 2009 ) . Specifically, Four Seasons Hotel and Resorts can be used as a typical illustration. Their Aureate Rule is ‘We aimed to handle others as we would desire to be treated ourselves ‘ . Four Seasons Hotel and Resorts dainties employees like the manner it treats clients. In this corporation, employees are empowered, received higher salary comparison to industry norm. They besides provide alone chance to be promoted within the group every bit good as other particular benefits such as paid career, educational aid and complementary stay. Four Seasons Hotel and Resorts is ranked 85th out of 100 best companies to work for with 12,439 employees by Fortune magazine ( CNN Money 2012 ) . The company policy is good developed, targeted to all employees in order to accomplish the end of ‘providing best service to client ‘ . The consequence presents that employee efficiency was improved, client satisfaction and keeping besides increased.

Impacts to clients

A strong civilization impacts to non merely employees but besides company ‘s client. Staying as the male monarch of hunt, Google Inc. ‘s mission is to form the universe ‘s information and do it universally accessible and utile. It is listed as one of the most admired companies in the universe for distributing through its deep honkytonk into devices with its free, open-source runing systems. Customers benefit from its system every bit good as service provided. The free-searching engine is now popular as the indispensable tool for any million Internet users in all over the universe. Google is linked to one million millions web sites all over the universe to guarantee its client are able to entree to utile information. In order to function multi intents of clients, more free engines have been developed such as Google Images and Google Maps. Google Images allows people do their research through image while Google Maps shows clients the shortest way from one finish to the following by different ( CNN Money 2012 ) . Both of them help users to salvage clip in research information and transit. Google ever puts client benefits on top and does non halt betterment and development to supply better service to its client.

Impacts to society

Unable to last without society ‘s support, a good civilization needs to pays attending to the society that it operates in and makes the topographic point better. Genting Hongkong – a taking planetary leisure, amusement and Hospitality Corporation can be a practical illustration for its comprehensive and first-class Corporate Social Responsibility plan which helps the company gained “ Best CSR ” victor at Asiatic Excellence Recognition Awards 2012 ( Parker 2012 ) . Genting Hongkong attentions about the community and makes it as a portion of their corporate civilization. “ Genting HK Volunteer Team ” was officially formed in 2008 as an employee voluntary activity. Since so, employee activities straight touched on 1000s of those in demand including aged, kids and under-privileged households. In 2009, the company donated HK $ 150,000 to raise financess to supply farm animal and preparation to households to stop hungriness and poorness in rural country in China. Besides, Resorts World Manila – a joint venture integrated resort of Genting Hongkong – was recognized by the Philippine Red Cross as one of the top voluntary organisations that helped salvage lives through its blood contribution thrust yearly ( Parker 2012 ) . Through the above societal activities, Genting Hongkong has successfully brought its civilization to public and justified duty to the operating topographic point.

All three illustrations supra have shown the influence of organisation civilization to the development scheme of Four Season Hotel and Resorts, Google and Genting Hongkong and their impacts to employees, clients and societal. The company civilization is decided after sing employees, clients and societal benefits.

How can an organisational civilization be recognized?

Different corporate adopts different civilization. However, a strong civilization can be recognized easy. It is shown through the corporation ‘s vision, mission, logo, and image. The society can admit organisational civilization through printed media such as newspaper, magazines. Besides, organisation civilization is besides presented through logo, advertizement on Television or web sites. Some endeavors choose imperativeness conferences to show their civilization. Walt Disney is celebrated by the statement ‘We create felicity by supplying the finest in amusement for people of all ages, everyplace ‘ . It decides the assortment every bit good as the feature of Disney ‘s merchandises. Cinderella, Mermaid, Snow White, Hercules have come out from fairy narrative and inspire people at different ages through many coevalss ( Driskill and Brenton 2008 ) . Nowadays, the rapid growing of engineering and societal media have given many corporations opportunities to advance their civilization, interact with client and employees by utilizing Facebook, Twitter and Yahoo ( Pepper 2011 ) .

Organizational civilization impacts to strategy/strategic determination

Beside the impacts to employees, clients and society, organisational civilization impacts straight to the strategic determination. Strategic determination are broad runing in their attempts and are based on future outlooks, uncertainness is ever present. It is ever alluring to seek more information before doing a determination. Strategy is about long term impacts of of import determination for the corporation ( Black 2003 ) . Strategy involves committedness. Strategic determinations can non easy be reversed and have long term impacts ( negative and positive ) once they are made. Such determination might include what merchandise scope to sell, which geographic to function, where to turn up operating installations, how to construction the compensation/ wages system, what activities to outsource or what information system to utilize ( Beamish 2008 ) .

Wayss of growing and enlargement

Organizational civilization affects the strategic determination and scheme that an organisation chooses to turn and spread out. There are many options to choose such as organic growing, amalgamation and acquisition, articulation venture, strategic confederation and franchise. However, the determination is made based on the characteristic and vision of the company. To exemplify, Strategic Alliance is concerted understandings or joint ventures between two independent houses. When a company does non hold adequate cognition and fiscal ability to function some ends, it must travel beyond the boundaries of the organisation into strategic confederations. Samsung Electronics Corporation ‘s vision is ‘Inspire the universe, create future ‘ ( Chang 2008 ) . In order to convey the best engineering to the new coevals, Samsung has done strategic confederations with a figure of other organisations. These confederations frequently involved research or development undertakings and engineering transportation agreements. They have included a rinsing machine development with Mitsubishi, digital place engineering with Microsoft and brassy memory card ( memory sticks ) with Sony ( Michell 2010 ) . In this instance, civilization has affected the determination devising of Samsung Electronic direction to implement vision and motivate organisation ‘s growing.

Decision devising procedure

Organizational civilization takes portion in every stairss of determination doing even though direction is the 1 that takes control and makes critical determinations. Harmonizing Black ( 2003 ) , direction is required to make strategic analysis with aid of a squad. Therefore, they need to do the best possible determinations to gain their organisation. Organizational decision-makers will develop a list of options to the state of affairs. Then direction squad will reexamine the list until they find a best fit strategic pick that is equal. The decision-makers settee with the chosen option instead than go oning to seek for the best possible option. However, organisation civilization has to be considered before concluding determination is made ( Calingo 1997 ) . Ethical decision-making is based on perceptual experiences. Numerous people of divergent backgrounds hold perceptual experiences of ethical behaviour otherwise. Peoples who perceive one state of affairs as ethical may hold others who perceive the same state of affairs as unethical. Religion, civilization, nationality, and history influence the perceptual experience of an person ‘s ethical behaviour. Therefore, organisation demands to hold a criterion and develop their employees to follow ethical behaviour. When an organisation emphasizes what is the right manner to act, employees are more likely to avoid unethical behaviour. The most hard portion is to implement the scheme. Directors control the civilization within organisation and drive it to what the scheme has planned. Suitable civilization and right scheme will take corporation to success ( Andre 2008 ) .

A typical illustration could be McDonald. This company ‘s mission is ‘to be the best employer for people in each community around the universe, present operational excellence to clients in each of our eating houses and achieve digesting profitable growing by spread outing the trade name and leveraging the strengths of the McDonald ‘s system through invention and engineering ‘ ( Gillbert 2009 ) . Try to carry through our client, automatically net income will better ‘ . Besides, McDonald developed rigorous regulations about bringing timing and attitude toward clients which all franchises must follow. It is to cut down the struggles between different perceptual experiences and warrant that clients are treated reasonably. The mission statement and ordinances have explained merely why McDonald chooses the franchise as an option to construct ‘chain shop ‘ , administer goods that avoid the investings and liability of a concatenation. By making peculiar guideline for all employees, McDonald in bend does non hold to worry much about service quality while spread outing to any parts.

Barriers in term of diverseness work force, amalgamation and acquisition

Hiring and developing scheme of a company is besides influenced by its civilization. It is believed by Driskill and Brenton ( 2005 ) that skills and cognition are easier to entree and train instead than attitude. If an employee ‘s attitude does non suit to the alone civilization of the company, it is less likely to work together with current staffs. Strong organisation civilization may do some barriers and challenges for organisation in term of altering and betterment, diverseness work force, amalgamation and acquisition. One of those is what Parker ( 2012 ) called ‘cultural clang ‘ , emerging when a amalgamation or acquisition pushes two different civilization under the same corporate organisation. In this instance, he insisted that strong civilization can blend every bit severely as “ oil and H2O ” . Therefore, one time organisations are spread outing abroad, civilization should be a factor to see when a possible partnership or acquisition is being discussed, particularly from engaging phase. There should be a balance between conveying in the organisation ‘s ain people to guarantee that its civilization is nurtured and grows on foreign dirt, while at the same clip appreciating local civilizations in other market and integrating them in that procedure ( engaging local people to suit the organisation civilization ) ( Parker 2012 ) .

In 2005, there was a communicating amalgamation occurred, between Sprint and Nextel Communications in United States ( Cummings 2009 ) . It was believed that the combination of the two market ‘s spectrums – Dash ‘s personal cell phones and place service, and Nextel ‘s business/infrastructure/transportation market – would convey about one large happy communicating household ( for merely $ 35 billion ) . However, the amalgamation did non remain long. As claimed by some Nextel executives and directors who had left the new company in droves, the two civilizations could non be assorted or acquire along good ( Cummings 2009 ) . Simultaneously, the economic system started to take a bend for the worse. Customers ( including private and concern ) were anticipating more and more from their suppliers. As a effect, gross revenues from rivals like AT & A ; T, Verizon, and the iPhone decreased significantly. Sprint/Nextel began lay-offs. Since its stocks plummeted, for all those involved, the amalgamation clearly failed. It is to state that organisation does non transport out activities for their ain involvement. They carry them out because clients and cardinal interest holders want them to, or necessitate them to, execute that activity. Organizations in the same industry with different types of clients and cardinal interest holders will transport out different activities and act otherwise. Organizations to a great extent rely on the picks made for their achievements. The right picks can convey triumph and negative picks can do catastrophe ( Heracleous 2003 ) .


To reason, this essay has been discussed in item what is organisational civilization and its importance. Relevant illustrations from different industry such as Google, HP, Four Seasons, Genting Hongkong, Mc. Donald, Walt Disney, Samsung Electronics, Sprint and Nextel are given to consequently to clear up the connexion between organisational civilization and its impact to employees, clients, stockholders and society. In drumhead, organisational civilization is the foundation for corporation to develop its best working environment, motivate employees, therefore addition gross and construct positive image. High direction demands to pay high attending in making alone civilization and stay it. Particularly in term of human resource scheme, people are hired demand to be fit with company civilization otherwise it is difficult to work efficaciously as a squad and group. Furthermore, organisational civilization has a singular consequence to company ‘s growing scheme. A corporate can take to hold organic growing, franchise, joint venture, merge and acquisition. However, the scheme must be suited with current company civilization or the company civilization has to be changed to fit with the scheme. Culture can be changed through the old ages due to the effects of society, engineering, economic system and authorities. It is difficult to foretell organisational civilization tendency but the company will make good in future if they develop appreciate civilization to response their challenges.


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