The Application of the Concept of Organizational Culture

The business world in these contemporary times calls for an expansion of realms if that business is to survive. It is not anymore common for a business firm to be sticking on one country, one origin, and one culture. Big companies are expanding their territories, crossing boundaries and space into a new world with promises of success. The extend of their crossing can be seen as international, since they exceed the definitions of their own culture. Multinational companies are as such, creating extensions of their main office at different countries, or stated in a better way, different nationalities.

This whole concept of expansion surely has its benefits. This globalization trend means a greater distribution range of products and services. Companies get a bigger pool of potential costumers on which they can sell their goods. This also means a bigger chance for market and a greater possibility of increasing their sales. Expansion would also help in the dispersion of technology to other countries. Products not plausible to be made in a country can be introduced by globalization. And in the long run, the technology used can be slowly absorbed and integrated in that specific country.

Although very promising and hopeful in the far end, globalization and expansion are faced with a lot of hurdles every step of the way. One of the toughest is the cultural differences between two nations. This factor can greatly affect the success or failure of a certain company. It is able to penetrate all aspects of the business world, and a single weakness can cause the downfall of the company.

How can culture affect a company? It would be better first to define culture. Culture in simple words is the way of living of a certain group of people. It is a set of norms, practices, rituals, and everything else that can be associated with that group (Shein, 1997). Regional culture therefore pertains to the culture present at a certain location, somewhere of another nation and another country.

Thus, doing businesses internationally requires the crossing of two or even many different cultures. There exists a notion of cultural differences between all of those involved in the business, be it the employer or the employee. These differences can range from subtle to the most obvious, but all creates an effect on the overall status of a company.

Take for example language. Language is one defining factor present in culture – one can know the speaker’s origin by his or her way of talking. This poses a great challenge of communication between two persons of different cultures. Although English is said to be the “universal language”, you cannot expect every single one in the world to know English the way the Americans do. Or neither can a British company expect all of their employees to have the Brit’s natural accent. The differences in languages create a barrier between two colleagues, causing frames of miscommunication and misunderstanding.

Strains and uneasiness can also be the effect of these differences. Simple things such as jokes can be funny to one and irritating to the other. Stereotyping are also common, drawing conclusions about one’s personality based on their known history or culture. Tensions and fights are then easily conjured up, causing deterrent production (Burman).

Cultural differences would also mean conflicts in traditions and customs (Nellen, 1997). These are broad categories, but nonetheless can break or make a company. Traditions can range from region specific holidays to restrictions on food, from gestures to clothing. Some employees are not ready to give up their traditions and simply absorbed those of their employers. These conflicts can cause severe damage not only to the company, but also to the person’s reputation as well.

Finally, incompetent work ethics can also be brought upon by cultural differences. This causes people to work in different directions, being non-productive and non-constructive (Zats, 1994). Emphasis should be placed in the idea of directions, since different cultures do not necessarily mean busted employees. Each person on their own account probably believes that their direction is correct and would benefit the company. But always remember that in an organization; whether in school, family, or economics, all must point to a single goal.

A business organization is also a group of people, and being as such, should contain a culture common to all. It is not necessary to change traditions, impose on new beliefs or restrict types of clothes for these are ideas found in a regional culture. This is an organization, and the “organizational culture” is the one that should be imposed or modified.

It is therefore a manager’s task to supervise the creation of this culture. By doing so, he must first be aware of the problem – the differences brought about by varying cultures causing slow or impeded growth of the company. It is also important that the manager protrudes his authority over the others, but does not exclude them in the team. He must then be able to communicate brilliantly in relaying these problems onto others. The manager must also be able call upon the team, and guide them in moving towards a single direction (Zats, 1994).

The answers to problems are not particularly the manager’s burden, but he must try to mediate a kind of solution that all would agree on. This solution may not be his – it can come from any member of the team, but the manager should see that everyone understood it and are more than willing to push through and make it happen.

Finally, the manager must be open at all times. He must be ready to absorb knowledge from all possible sources. He must be able to understand all types of persons, take into consideration their cultural differences when addressing to them. In fact, products that are to be produced must be made after consent from different representatives of different possible cultures; not only regional cultures, but by other group-related such as age and gender (Fast Company). In the same line, managers must be able to study the culture of prospective clients in order to please them. A telephone, for example, would be used differently by an American when compared to an Italian (Burman). These culture-driven actions can used to strengthen a company’s edge on telephone technology for the two different locations, for example.

Most importantly, managers must be able to accept his failures and learn from it. Shein (Nellen, 1997) formally defined culture as

A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way you perceive, think, and feel in relation to those problems.

He states that only by learning from experiences can an organization create a culture, which should be immediately passed on and taught to the new members. This way, mistakes done in the past will not be repeated and methods of productiveness will endure.

Managers are usually sent abroad to work at different locations, and this can be a challenge for most since it requires dealing with different cultures. A big question then is how much can a manager affect these varying cultures in order to create a single, productive one? As stated above, managers do not necessarily need to change regional cultures, not even their own. In fact, many did not have to in order to succeed. William J. Holstein, the editor in chief of Chief Executive Magazine explained that managers working abroad do not lose their Americanism; they just gain a global perspective of the business (Holstein, 2004). This would then also mean that products of a certain company would remain their own up to any extent, regardless of the vast proportions of cultural exchange that might have happened. A company’s product, or sellable service exists as a part of the organization’s culture ever since. By bringing it to other countries, the company is merely sharing this culture to others – something that the others can enjoy, but must not own without any legal permission from its owner. This way, the identity of the company is still present.

In conclusion, a well managed organization is one which applies the concept of culture into the company. Each organization must be treated like one should treat disparities – not by creating spaces and voids between these differences but by trying to come up with a same set of ideas and norms that everyone would agree upon.

References

Burman, E. (N.D.)  Managing Cultural Diversity in a Global World. Workinfo.com. Retrieved November 20, 2007, from  http://www.workinfo.com/free/Downloads/299.htm

Fast Company (N.D.) What Does the Future Look Like?  Retrieved November 20, 2007, from   http://www.fastcompany.com/ftalk/london/future.html

Holstein, W. J.  (2004).  Making the Executive Suite A Mirror of Global Markets. New York Times. (Late Edition (East Coast)). New York, N.Y.: Jul 4, 2004. pg. 3.8  Retrieved November 20, 2007, from http://query.nytimes.com/gst/fullpage.html?res=9A0DE7DA1E38F937A35754C0A9629C8B63

Nellen, T.  (1997) Notes on Organizational Culture & Leadership by E.A. Schein.  Retrieved November 20, 2007, from   http://www.tnellen.com/ted/tc/schein.html

Zatz, D. (1994) Organizational Culture. Toolpak Consulting.  Retrieved November 20, 2007, from  http://www.toolpack.com/culture.html