Organizational Culture and National Culture in Multinational Companies

Topics: Culture, Globalization, Multinational corporation Pages: 6 (1754 words) Published: August 13, 2011

Multinational organizations are combinations of multicultural employees. Multicultural environments cause cultural shock among leaderships and employees. Organizational culture and national culture are significantly important in current marketing environment. Organizational culture mainly shows the value and the roles inside the organization. However, national culture is the directing of organizational culture and influence both leadership and employees deeply from their personal values. Furthermore, the relationship between organizational culture and national culture has impacts on leaderships, employees, job satisfaction as well as the commitment of employees to the organizations. This essay will discuss the issues above, and make introduction about organizational culture, national culture and leadership, and corresponding impacts on employees and organizations as follows: Firstly, a brief summary of the influence given by organizational cultures and national cultures on multinational companies will be made. Secondly, it will discuss the importance of organizational culture and its influences on organizations, leaderships and employees. Thirdly, it will emphasize discuses the significance of national culture and impacts on organizations, leaderships and employees. Fourthly, it will present how leadership is related to i organizational culture and national culture. At last, it will conclude how national culture is stronger than organizational culture in influencing employees in multinational companies. Globalization has a great influence in the booming of multinational companies. Multinational companies encourage the cooperation of versatile national powers. Doing business in different countries integrates the resource utilization and decreases the costs to a large extent. Multinational companies make the cultures of organization diverse. The relationship between leaderships and employees, which is connected to both organizational culture and national culture, is also influential in the development of organizations. However, national cultures and organizational cultures have some potential conflicts in multinational companies. Under this circumstance, it is vital to consider which culture is more valuable than the other to the development of the multinational company.

With the rapid economic development over the past a few years, multinational companies has become one of the primary forms of corporation. The construction of these companies promotes not only universal economic growth but also the progress of globalization. Meanwhile, in any overseas country, the establishment of multinational companies might confront various challenges like different working habits and culture conflicts. It is comprehensible that employees from diverse culture backgrounds would have different perspectives on organizational culture in multinational companies. In this case, organizational culture is the collection of practices, traditions, customs, beliefs and values shared by one generation of employees of the organization to the next. National cultures must be considered if accurate predictions need to be made regarding corporate behavior in different countries. Thus, due to the existence of difference between organizational culture and national culture, multinational companies could not avoid facing the challenges. Most of the leaders and workers in a multinational enterprise are from different races and countries. It is unavoidable to confront the issues of culture conflicts when employees working in cooperation.

Organizational culture affects the attitudes of employees towards treating personal and professional aims, and the performance of employees when accomplishing tasks. Organizational culture also has great influence on how people think and make decisions as well as the way they feel, act and express. Peter and John (2004, p323) suggests that organizational culture could influence particular aspects considerably...
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