Changing the culture of an organization may not be easy especially if the new chief executive does not fully understand the previous culture and therefore does not embrace it in the change. This lack of knowledge may result in an inappropriate culture being chosen that could limit the company’s performance as productivity reduces. An example of a badly imposed culture can been seen with the Chrysler and Damier-Benz merge in 1998. Damier-Benz imposed their traditional and structured German culture on the free-spirited American car company Chrysler. The extremely different cultures created tension that later affected their efficiency as decision-making took longer and the workforce were not happy. The inappropriate culture resulted in a loss of $1.5 billon by 2006. In 2011, the new chief executive of Tesco, Phillip Clarke, also made a cultural change which proved unsuccessful. He proposed a strategy to change Tesco’s brand image to be known for “highly valued brands” as opposed to their cheaper “Value” products. The decrease in popular promotion deals such as vouchers and meal deals reduced their sales revenue and share value which fell by 15% by the end of 2011. This suggests that Clarke failed to identify Tesco’s main source of competitively. Therefore, both examples show that cultural changes may be difficult as the new chief executives lack knowledge and experience in the company.…
When a company goes global and has grown too many locations throughout the world cultural changes within the organization need to be addressed regarding the cultural…
It is important to understand how the different cultures are effected and they change the behaviour inside an organization. Every person shares a different culture and belief and everyone represent another point of view inside an organization. The fact is, that every person in an organisation brings along a value for the organization with their attitudes and point of views of their cultures. With it they…
Smith, P., Dugan, S., & Trompenaars, F. (1996). National culture and the values of organizational employees – a dimensional analysis across 43 nations. The Journal of Cross-Cultural Psychology, 27(2), 231-264.…
Organizational culture is not a new concept in the world of organizational behavior. Yet despite its age, it still has many varied definitions as well as philosophies on its importance and impact to the success of a company. One definition is that organizational culture is a cognitive framework consisting of attitudes, values, behavioral norms, and expectations shared by members of an organization (Greenberg, 2013, p. 368). Greenberg (2013) further explains organizational culture through an analogy of a tree. Organizational culture are similar to the roots of a tree. Roots provide stability and nourishment for a tree in the same manner that culture provides these things for their organization. Another way to think about organizational culture is that it is the unseen and unobservable force that is always behind the tangible activities of an organization which can be observed and measured. (Gundykunst & Ting-Toomey, 1988). “Culture is to the organization what personality is to the individual – a hidden yet unifying theme that provides meaning, direction, and mobilization” (Kilman, Saxton, & Serpa, 1985).…
Because of globalization, businesses are open to do business in new markets and improving profits. Also because of globalization, companies are faced with different cultures, religion and norms. For a company to do business in another country, a manager needs to understand the differences associated with the host country. "Globalization is defined as this interdependency of transportation, distribution, communication, and economic networks across international borders" (Gibson, Ivancevich, Donnelly, & Konopaske, 2012, p 57). Each firm has their own organizational culture. According to Hellriegel, Slocum and Woodman (2001), organizational culture represents a complex pattern of beliefs, expectations, values and behaviors shared by organizational members. The knowledge of the culture in which an employee is working is crucial. "In a dynamic and fast changing environment the inter and intra organizational behavior changes the productivity and growth trends" (Chaturvedi, 2002).…
A unique corporate culture is hard to duplicate or imitate and thus helps to sustain a firm’s competitive advantage. Organizational cultures vary widely in the extent to which they are woven into the fabric of the organization’s practices and behavioral norms. The strength of any culture depends on the degree to which these norms and practices are widely shared and strongly held throughout the organization.…
The purpose of this paper is to exemplify how organizational managers and leaders create and maintain a healthy organizational culture and recommend two strategies that organizational managers and leaders can use to improve this culture. As an example I selected a Canadian multinational corporation – The Toronto-Dominion Bank.…
Opening up a subsidiary in another country has to be planned extensively. There are many aspects that the management have to take into consideration before deciding on the feasibility of the operation. People’s natural tendency is to try and transplant the skills that work in their home country into the new environment. (Berger, 1998) The problem is that the management techniques that work in the home country are not always effective in another country. (Rodrigues, 1998) He also believed that this was due to managerial attitudes and values being linked to a societies culture. Therefore, as cultural values mirror how people are raised, they are deeply held and unlikely to change. (Berger, 1998) This view is supported by many other theorists in the cross-cultural management area (Hofstede, 1991; Trompenaars & Hampden Turner, 2000, 2002)…
Like all social mechanisms, an organization 's culture performs certain social functions, some or them intended and some of them unintended. Like organizational structure, culture is difficult to observe measure or map. In some cases, culture supports or reinforces structure, in others it conflicts with structure. In yet other situations, cultures acts as a functional alternative to reducing behavioral variability in organizations. These are the most commonly discussed functions of organizational culture…
References: Robbins, S P and Coulter, M (2009) Management, 10th edn, New Jersey: Prentice-Hall. Hofstede, G (2001) Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations, Thousand Oaks, CA: Sage. Robbins, S P and Coulter, M (1999) Management, 6th edn, Upper Saddle River, NJ: Prentice Hall.…
As the world economy leans toward globalisation, the understanding of different culture becomes inevitable in today International management (IM) research and practice. Culture is part of management concepts when it turns more complex and multidimensional (Martinez & Toyne, 2000). Due to complexity of culture, there are many researches on this topic. Scholars such as Davenport and Prusak studied how culture differences affect knowledge transfer in cross-cultural organisations (Bhagat, Kedia, Harveston, & Triandis, 2002). In contrast other authors suggest that both the differences and similarities of culture should be examined (Ofori-Dankwa & Ricks, 2000). In light of all recent researches relate to culture, this essay initially looks at the different definitions of culture. Then, it reviews the link between culture and international management research, and the practical important of culture in international firm practices.…
“Organizational Culture has been defined in several different ways. In its most basic form, organizational culture can be defined as the shared values and beliefs that enable members to understand their roles and the norms of the organization” (Hidgetts, Luthans, & Doh, pg. 10).…
as a framework, I propose an approach based on the following claims: In every country there are…
Nardon, L. and R.M. Steers (2009), ‘The culture theory jungle: divergence and convergence in models of national culture’, in R.S. Bhagat and R.M. Steers (eds),…