With the rapid development of economy and advancement of technology, people from different parts of the world have been gradually forming closer connections with each other. With more and more connection and communication, different cultural backgrounds stand out as a key issue. It is the same case when referring to the development of organizations and companies. Multinational corporations are playing an essential role in the global economic development and more and more companies are building their branch companies in other countries. Therefore, the organizational cultures of other countries become a significant topic that the managers are supposed to consider seriously, as the organizational cultures are not the same with that in their own country. Due to the better communication and more learning from each other, the organizational cultures are becoming more alike, even though they still remain there uniqueness. In this essay, the definition and importance of the organizational culture will be introduced. Moreover, the reason that the different organizational cultures are becoming more alike will be explained.
2. Illustration of organizational culture
Organizational culture, mainly discussed about in the field of business management, is usually related to the characteristics of the organization, which is rather differing from those of other countries. Thus, organizational culture can be used as a tool of distinguishing the different organizations. In addition, different organizations become themselves according to their differing organizational cultures to a great extent. The reason why the organizational cultures are different in differing organizations is based on the formation of organizational cultures. Organizational culture is formed with habits, beliefs, values, experiences and rules of the people in the organization, which is supposed to reflect the purpose of the organization and the standards or principles of behaviors of the staff in the organization. (Lee, 2004)
3. Importance of organizational culture
As more corporations are building branch companies in other countries, the managers of these multinational companies have already realized the significance of the organizational culture. The managers respect the different organizational cultures in the countries, where they built their branch companies, and do not force their own organizational cultures on the branch companies that mostly employ local people, who have their own and differing cultural beliefs and values. (Lund, 2003) The reason why the managers of the multinational companies consider the organizational culture so seriously is attributed to the organizational culture’s importance and influence in the organizations. The organizational culture is an obvious and direct way of recognizing the theme and goal of the company. The stakeholders and the customers are able to choose companies based on the appropriateness and correctness of the companies’ organizational cultures. Therefore, the effectiveness of the organizational culture is essential to the companies. Hence, the managers of the multinational companies have to consider differences of the organizational cultures in the countries where they built the branch companies, as they have a significant impact on the effectives and appropriateness of the organizational cultures of the companies. (Buch, 2001) On the other hand, if the managers assume that there is no difference between their own organizational cultures and the cultures in the other countries that they built the branch companies, the inappropriate organizational cultures will not bring in positive effect and profits for the companies, they will probably make damage to the companies’ future development and global reputation.
4.0 Reason that the different organizational cultures are becoming more alike The discussion of the development of the different organizational cultures has been a hot topic all over the world. Some people believe that there are no differences between the organizational cultures and they are the same, while others point out that the organizational cultures keep distinctive on purpose. In fact, although the organizational cultures are quite different due to the different national cultural backgrounds, the tendency of the development of the organizational backgrounds is that the different organizational backgrounds are becoming more and more alike. Basically, the organizational cultures of the developed countries, to be exact, of the parent companies in the developed countries, are gradually becoming the main theme and form the main part of the organizational cultures of the branch companies in the developing countries and underdeveloped countries. Thus, the organizational cultures of the branch companies in the developing countries and undeveloped countries gradually have to yield to those of the parent companies. (Taormina, 2008) It has been discussed that there are two reasons that have caused the phenomenon.
The first reason is that there are better and more advanced points of the organizational cultures that belong to the parent companies in the developed countries, compared to those of the branch companies in the developing and undeveloped countries. Definitely, the development of modern business has a longer history and hence is more mature in the developed countries than in the developing and undeveloped countries. The concepts of managing companies are thus more mature and more advanced, which are worth learning for companies in the developing and undeveloped countries. Therefore, when managing the companies that are built by the developing and undeveloped countries, the managers tend to learn from the successful and mature business management concepts from the developed countries, including the organizational cultures. (Claver, 2001) As for managing the branch companies in the developing and undeveloped countries, the managers of the multinational companies are conceivable to use part of their organizational cultures in the parent companies. This reason is the main one that the different organizational cultures are becoming more and more alike, as people from every part of the world are aware of the success and mature of the companies in the developed countries. It does help the companies in the developing countries and underdeveloped countries grow faster and help them quickly fit in the global economy.
The second reason is that the managers of some multinational companies forced the branch companies in other countries to accept the organizational cultures in the parent companies and ignore the differences of the local national cultures, even though the local organizational cultures may help the development of the branch companies. As the multinational companies are too strong and powerful, the branch companies have to accept the organizational cultures of the parent companies and follow the rules and standards in daily work. Although this reason is not the main reason causing that the different organizational cultures are becoming more and more alike, it still exist in some parts of the world, which is totally not good not only for the growth of the branch companies, but also for the future advancement of the parent companies. The managers believe that they are right about the organizational cultures, as the branch companies will still make success in a short term based on the strength of the multinational companies. However, the total ignorance of the local organizational cultures will finally bring in negative results to the development of the branch companies in a long term.
Although the tendency of the organizational cultures is that they are becoming more and more alike, the uniqueness and differences of the organizational cultures still exist and also play an important role in the development of the modern companies. For the branch companies of the multinational corporations in the developing countries and underdeveloped countries, the managers should take the differences of the local cultures into account when building the organizational cultures of the branch companies. The local cultures are obviously more popular with the local people and governments, thus when the organizational cultures of the branch companies use some areas of the local cultures will certainly more easily win the support the local people and governments. Plus the successful points of the organizational cultures of the parent companies, the branch companies will gain the best and the most appropriate organizational cultures. (Carmeli, 2005) For the local companies that are built by the developing countries and underdeveloped countries, the managers are most likely to create the organizational cultures mainly based on the local cultures considering the local staff and the local markets, even though they maybe learn some parts of the successful management experiences from the multinational companies in the developed countries. In consideration of the above two reasons, the organizational cultures of the developing countries and underdeveloped countries are still important and the managers of the companies are not supposed to ignore their existence and significance related to the development of the companies.
It can not be avoided for the managers to consider and build the appropriate organizational cultures for different branch companies when the companies are establishing more and more branch companies in other countries. The appropriate and effective organizational cultures should be built when considering the local cultures. The existence and function of the local cultures are important when building the organizational cultures. However, the managers are aware of the fact that the different organizational cultures are becoming more and more alike, mainly due to the rapid advancement and strength of the huge multinational corporations of the developed countries and their influence all over the world. Thus, the similarity of the different organizational cultures has been becoming the tendency of the development of the organizational cultures.
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Lund, D. (2003), ‘Organizational culture and job satisfaction’, Journal of Business & Industrial Marketing, vol. 18, pp. 219 – 236
Taormina, R. (2008), ‘Interrelating leadership behaviors, organizational socialization, and organizational culture’, Leadership & Organization Development Journal, vol. 29, pp. 85 – 102