International Business and Culture

Topics: Culture, Geert Hofstede, Organizational studies Pages: 8 (3177 words) Published: January 15, 2013
Leaders and organisations have the responsibility to create, nurture and maintain a certain organizational culture. Organisational culture refers to the common beliefs used by a certain group to govern perceptions, thoughts, actions and feelings of the group. Culture is simply the way things are done in or by an organisation. In most cases, organizational culture is influenced by the management. An organisational culture is based on past experiences and evolves with time, situations and actions of every employee and the leaders (Czinkota, Ronkainen, Moffett, Marinoca and Marinov, 2009). In 1993, Robert J. House launched the Global Leadership and Organisational Behaviour Effectiveness research program (GLOBE). This was meant to examine how leaders relate to culture. In more than six years, investigators from over sixty different cultures have been involved in this research. The researchers asked the middle managers how cultural differences have affected their leadership. The second phase of the research showed that some leadership attributes are impediments to outstanding leadership. The most interesting attribute was the cultural-continent as a hindrance to leadership (Francesco and Gold, 2005). What was considered to be strength in one culture was found to be an impediment for leadership in another culture. Global business organisations have their cultures developed and shaped by the business and the people who run them. Most global business leaders are products of unique cultures determined by their regions of study and previous employments. A good example is the case of a British executive who studied in the American business schools and was placed in charge of a Japanese firm in Brazil. The executive was required to perceive leadership according to the culture of the country of work. He was also required to perceive leadership from the same perspective as the employees (House, 1999). The Tata Company has successfully expanded its business to other parts of the world. The company has a leadership development at various levels. The leadership control series whose sole responsibility is to equip managers with the necessary skills and knowledge to compete in the global business environment. This paper looks into the impact of the company's organizational culture on its management and leadership.

Literature Review
The Tata Group was founded in 1968 as a trading company by Jamsetji Tata. The company has business establishments that are spread in six continents. The company operates in over eighty countries around the world. It has over 100 independent companies of which 32 are public companies. It exports its products and services to over 85 countries. As of march 2012, the group's worth was estimated to be about $89.88 billion with more than half of the total income generated out of India. The company is highly respected in India due to strong values and business ethics. In 1907, the Tata Company was established a representative in Europe as an agent for overseas goods and services procurement. The company has evolved and specialized to cover almost all industries and activities. Some of the areas of specialization include sourcing of materials, services and equipment through a fully computerized system. It has an in-house freight management company and offers insurance services. It has been able to identify potential business collaboration opportunities to market its products in the UK and other parts of Europe (Nath & Vithalani, 2005). The company continues to maximize its opportunities. At the moment, the company focuses on the possible provision of assistance to companies in India concerning overseas market opportunities for their products. The Tata group of companies believes in community support programs as a way of giving back to the society that support their business. The Tata Group Trust created medical research, science and technology, as well as social studies research institutions. The trust also...
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