Culture Is Separated Into Two Aspects Management Essay

Culture Is Separated Into both Aspects Management EssayThe Oxford Dictionary defines finish as ideas, customs, and social behaviour of a particular raft or association the attitudes and behaviour characteristic of a particular social gathering. Culture hind end non be just defined, but it may be championd and felt up. Mobley, Wang and Fang (2005) to a fault states that grocery-gardening provides direction to peoples behaviours, in visible and some cartridge holders unnoticeable ways and it deeply influences decision-making.Culture is separated into two aspects which argon visible and invisible. Visible aspects allow in the appearance of a person or what food does he consume. While invisible aspects include the impressiveness of religion, beliefs in a parliamentary procedure or the thoughts and feelings people prevail slightly authoritative issues.In the ball-shaped market today, market-gardening is an all- all-important(prenominal)(a) aspect to multinational companies (MNCs). Apart from serving a diversified marketplace, MNCs would overly be consisting of incompatible nationalities. As much(prenominal), companies atomic number 18 faced with the challenges of serving and managing a hea thereforely diverse spielforce. In addition, doing utterly letter on a global basis requires a grievous judgement of different acculturations. bereavement to understand heathenish differences can lead to serious consequences such as an impact on the companys business relationships with everyplaceseas customers, clients and employees and bad public relations. Culture also shapes the way people do business trackways international borders. Same organizations of different nationalities may operate differently collect to their civilization and this impact on policies, conversation strategies, organizational structure, and human resources worry. Organizations particularly MNCs can no longer afford not to distribute the gloss of the coun tries where they operate in.Thus, the main objective of this essay is to critically evaluate that finish is the most important factor in shaping and write up for international differences in employment relations. The essay leave alone be evaluating culture with national culture and organisational culture. In national culture, it get out begin by study and contrasting three different countries (France, China and japan) with their distinct national cultures in employee relations using the Hofstedes cardinal ethnic dimensions with event studies of Danone Vs Wahaha and Renault Vs Nissan. The two eluding studies will then illustrate the importance of national culture to organizations and employment relations.In the second part, the essay will be evaluating the importance and the need of an organisational culture. It will get along evaluate organisational culture by using Edgard Scheins Three Levels of Culture with an example of Google as a cuticle study.Lastly, it will end of by discussing the other underlying factors that also help in shaping and method of accountinging for international differences. It will also conclude with recommendations and the rationale why culture is the most important factor. summit meetingic CultureHofstede (1991) dened national culture as the collective program of the mind which distinguishes the members of one grouping or people from another. It implies that the people grapple a collective national character that represents their cultural mental programming which is a set of norms, behaviours, beliefs and customs that exist at bottom the population of a sovereign nation. Hofstede also claims that for each one national population sh atomic number 18s a unique culture.However, in the recent years, umpteen MNCs ask not in so far grasped the culture of the country which they are operating or selling their products in. By using lawsuit studies of Danone Vs Wahaha and Renault Vs Nissan in this essay, it will attempt t o compare the vast differences in national culture betwixt France, China and japan using Geert Hofstedes 6 dimensions of defining and interpreting culture.First reason Study Wahaha Vs DanoneIn 1996, Chinas Hangzhou Wahaha food group, Frances Danone group and Hong Kongs Bai fu qin corporation decided to form a sum venture named Wahaha. In this joint venture, Danone attempted to don the china market using Wahaha brand that is well-received by the Chinese. However, problems surfaced when Danone became the biggest shareholder in 1998 thus producing resentment from the Chinas Wahaha group as they felt that Danone misled them from the beginning. To aggravate the problem, Hangzhou Wahaha food group that is managed by Chairman Zong was accused of breaching the contract by establishing non-joint ventures which infringed the interests of Danone, claiming that the Hangzhou Wahahas establishment of the non-joint ventures and the illegal use of the Wahaha trademark has violated the clause in the contract. After which Wahahas Chairman Zong was sued by Danone in California and Italy, he created a series of lessened companies producing the same products as the joint venture. The Wahaha Vs Danone case has significantly depicted a dispute between ownership rights. Conflicts between Danone and Wahaha may be caused by un sensitiveness of the cross cultural differences between France and China.Second Case Study Nissan Vs RenaultNissan, a Japanese company and Renault, a French company decided to come together to crap on a joint watch. Both companies were well known for their distinct corporate cultures and brand identity. The joint project was formed as both companies shares a single joint of strategy for profitable ontogenesis and community of interest. However, Nissans wariness trend salutaryly support group performance eyepatch Renault focalizationes on one-on-one performance. Communication between the top management and employees were unclear and indirect, the refore resulting in misunderstanding within the company.The conflict between the 2 partners was referable to Nissans employees assuming that Renault was similar to them that encourage group performance. However, Renaults management elbow room belongs to a much more(prenominal)(prenominal) individual approach, making the Nissans employees felt uncomfortable of having the feeling of losing their family atmosphere. Communication between the Nissan employees and Renault employees broke down Nissan did not unsounded what were Renaults main objectives and their company goals in their partnership with Nissan. Some of the Nissans managers felt frustrated and opposed to the entry of Renault interpreter on Nissans board. The managers were old employees, and they felt that employees should be promoted according to their seniority instead of individual performance. The breakdown of communication is also caused by the differences in their language. With such a significant difference in the ir management style, there is a need in cross cultural awareness for the business joint venture to be a successful one.Geert Hofstedes Six DimensionsAccording to Geert Hofstedes cultural research studies, culture can be classified into six different dimensions office Distance, Uncertainty Avoidance, Individualism Vs socialism, Masculinity Vs Femininity, Long enclosure penchant Vs unretentive term orientation. The table below illustrates for France, China and Japan.FranceChinaJapanPower Distance688054Uncertainty Avoidance863092Individualism Vs Collectivism712046Masculinity Vs Femininity436695Long Term Orientation Vs forward long term Orientation3911880Figure 1.0 Scores allocated to the different dimensions for France, China and JapanPower DistancePower distance can be defined as all individuals in societies are not equal it expresses the attitude of the culture towards inequalities among us. Power distance can be defined as to the finis to which the less great powerful ex pects and accepts that power is distributed unequally. (Geert Hofstede,2001 )In comparison of France, China and Japan, China belongs to a bon ton where the people believes that inequalities is acceptable, there is a presence of a powerful employer-subordinate relationship which the subordinate will bear all rules and regulations set by the employer.France on the other hand may be prone towards a more hierarchical organization system where the attitude towards managers are more formal.Japan belongs to a more hierarchical gild where the Japanese should be conscious of their hierarchical position in any circumstances. all decisions must be reviewed by each level of the management and finally the top management.Individualism Vs CollectivismIndividualism can be identify as the gamy degree of independence a society maintains among its members. It relates to peoples self image in terms of I while Collectivism can be identified to be the opposite. In a individualist society, people ten ds to only look after themselves and their direct family while a socialistic society consists of people belonging to a group that takes care of them in shift for their loyalty.(Geert Hofstede,2001)Comparing the 3 countries, there is a significant difference China belongs to a highly collectivist country where people act at an interest of a group. In this norm, personal relationships prevail over the task and company.However in France, there is a certain degree of independence a society maintains among its members. The French prefers individual and private opinions and invent relationships between the employer and employees are contract based where everyone focus on the task itself. Communication within an individualist company would be direct where everyone gives their opinions freely if they do not agree. Referring back to the Nissan Vs Renault case, it has clearly shown that Renault (France) encouraged a more individualist approach by promoting individual initiatives and hoped that the employees are promoted by individual performance. Direct contacts between the top management and employees were encouraged in their individualistic approach.Japan similar to China belonging to a highly collectivist society, this can be shown through putting their harmony of group above the expression of individual opinions and the Japanese watch a strong sense of shame for losing face. In the Nissan Vs Renault case, Nissans employees feel that it is important to have a family atmosphere in their working environment. The managers of Nissan felt frustrated and opposed to the entry of Renault as they felt that promotions should be done according to seniority, not individual performance.Masculinity Vs FeminityMasculinity Vs Feminity is another dimension where we can infer that a masculine society will be driven by competition, achievement and success. It is a value system that starts in the school and continues passim organizational behaviour. On the contrary, a feminine so ciety will be driven by feel for for others and quality of life. It is one where quality of life is sign of success and standing out from the crowd is not admirable. (Geert Hofstede, 2001)In China, leisure time is not as important compared to the status and better salaries. Such examples can be found in students as they care very much about their exam oodles and ranking as the main criteria to achieve success or not.France belongs to a relatively feminine society. It may be due to their historied welfare system, securit sociale where the French are only required to work 35 working hours per week and entitled to 5 weeks of holidays per year. France cares greatly for their quality of life and focuses more on work in order to live the reverse. Competition in the working environment is usually not encouraged and flashy signs of success should not be shown in the public. In the Renault Vs Nissan case, Nissan is shown to treat males and females equally. Some of the female employees were offered some(prenominal) managerial positions in the company.Japan, a total opposite from France has a highly masculine culture. It is usually shown through competitive situations between groups, not individuals. Their famous workaholism is another expression of their highly masculine culture. In Japan, women produce it difficult to climb the corporate ladder due to their masculine norm of long working hours. secernate Renault in the case study, Nissan belongs to a masculine company which managerial positions are only offered to the male employees, not the female workers.Uncertainty AvoidanceUncertainty subjugateance has to do with how the society deals with the fact that their forthcoming will not be known. The unknown elements will bring about ambiguity and different cultures will match to the ambiguity in different ways. The uncertainty avoidance can be defined as the extent to which the members of a culture feels threatened by ambiguous or unknown situations and have cre ated beliefs and institutions that try to avoid these. (Geert Hofstede, 2001)High degree of ambiguity can be seen from the Chinese as their language is often full moon of ambiguity that can be seen as confusing for the westerlyers. It is shown that the Chinese are comfortable with ambiguity and depend to be adaptable and entrepreneurial. 70% 80% of Chinese businesses tend to be small to medium surface and family owned.France on the other hand tends to have their training done in a deductive approach. In the management level, rules and securities are ensured to create a stress free working environment and a certain level of expertise are welcomed. A diverge of policies can also be seen as a stressful event.Japanese is one of the few countries that have the highest uncertainty avoidance score. It may be due to the fact that Japan is constantly threatened with natural disasters such as earthquake, volcanoes eruptions that most Japanese are always prepared in any kind of situation s. In the business environment, a lot of time and effort are put into feasibility studies and all the risk must be worked out before the project can proceed.Long term Vs Short term orientationIn the Long term Vs Short term orientation, a long term orientation can be seen closely link to teachings of Confucius and can be separately interpreted as dealing with societys search for virtue. Long term orientation can be defined as the extent to which a society shows a pragmatic future orientated perspective while Short term orientation shows a conventional historical short term point of view. (Geert Hofstede, 2001)China belongs to a long term orientated society whereby persistence and patience is normal. The Chinese are thrifty and tends to invest in long term projects such as true(a) estate. They also recognized that the government is by men rather than being influenced by external factors such as god or the laws.France on a contrary is a short term orient society there is a great re spect towards traditions, cultures and their language. In business related issues, the French tends to focus on short term results and therefore, companies are usually driven by quarterly results. They do not focus on saving and the management style is based on self-reliance, personal achievement, vexed work and managers are judged based on short term results.In Japan, people lives their lives guided by virtues and good examples in life. There is a hint of long term orientation in the constantly high rate of investment in RD, even through difficult times. This is for the sake of a steady growth for market share instead of a quarterly profit, thus increasing dur mightiness of the company, serving the stakeholders and the society for numerous generations to come.Figure 2.0 Hofstedes Cultural Dimensions table for France and ChinaFrom the graph above, it shows that the cultural differences between France and China are distinctly different in the different dimensions. The graph implic ates the importance of focusing on the awareness of cross cultural differences between the 2 country in order for the joint venture between Wahaha and Danone to be a successful one. In the case study, Danone, the French company may not understand the ambiguity in how the Chinese operates in Wahaha and thus misinterpreted their good intentions. Likewise, for Hangzhou Wahaha, it is founded by the Chairman Zong who started the company from a small company which may be very much more family-owned. Chairman Zong may not have a vast understanding of how international joint ventures works and can end up preeminent to bigger misunderstanding and conflicts which results in failure of the joint venture or business attempts.An example from the case study Zhang Cheryl(2001) stated that the interpretation of losing control is different between the western society and china. In the western society, losing control may not be treated at a personal level. However, losing control in china is meant as losing face, which would refer to losing the power to make decisions which puts Chairman Zong of Wahaha in a disrespectful situation among his employees. Wahaha therefore insist to runs normally in their daily operations in order to keep their face. To worsen the situation, Wahaha perceived it was losing face when Danone established other IJVs with their competitors resulting in Wahaha being less motivated to settle their conflicts and disputes between each other. From the case study, we have seen how important cross cultural awareness is in shaping and cultivating a good business attempt.Figure 3.0 Hofstedes Cultural Dimensions table for France and JapanIn comparison of France and Japan, there is a significant difference in the 6 dimension index from Hofstedes theory. In the Nissan Vs Renault case, the difference in management style, breakdown of communication, different cultural values and language barrier are factors which may have caused a conflict between the two companies. One of the major problems may be the different management style where Nissan is works in a family resembling atmosphere. However, Renault focuses on individual performance where an individual only cares about their own results. Nissan can also be seen as a more masculine society which managerial positions are only offered to male employees while Renault treats all employees as equal and it can be shown that several(prenominal) managerial positions were taken up by female employees. In such a different cultural environment, it is important that both companies should have cross cultural awareness for the business venture to be successful. wherefore, it is all-important(a) for MNCs to be exposed to the different international cultural differences as in their daily operations they are exposed to multiple national cultures. This suggests that managing crosswise borders introduces substantial complexity because it forces multinationals to attune their practices and approaches to each an d every cultural linguistic context they operate in.Edgard Scheins Three Levels of CultureApart from Geert Hofstedes 6 dimensions of defining culture, there is another famous culture theorist, Edgard Schein that devotes all his effort into comparing and identifying the organizational cultural differences. According to Edward Schein(1992), Organizational learning, development, and planned change cannot be understood without considering culture as the primary source to change. Schein has categorized culture into 3 different levels Artifacts, Espoused Values, Basic assumptions and values.Figure 4.0 Three Levels of Culture(Schein, 2004, Organizational culture and leadership, 27)Schein defined that culture is commencement seen through artifacts such as visual organizational structures or tangible items. Underlying artifacts is the values such as strategies, goals and philosophies. The core of the 3 levels would be assumptions such as taken for granted beliefs, perceptions, thoughts and feelings through experience. through with(predicate) the case studies, it has implied that each country has a unique cultural perspective and approach to certain situations and hence it is important for companies to strive to understand and support relevant programs or strategies in each persona. Failure to appreciate and account for them can lead to issues like strain relationships in employment relations, communication breakdown between management aggroup and drag down business performance.Newman Nollen (1996) also state that there is no one topper way to manage a business. Differences in national cultures call for differences in management practices. One of their conclusions also states the importance of the congruence between management practices and the national culture should be in harmony in order to produce better performance outcomes, therefore pinpointing in another way the importance of cultural differences. Therefore, the management of a company should pay extra atte ntion to national cultural differences as it may influence the tellingness of the strategies and decisions that the company makes.Based on Geert Hofstedes research on national culture, he has demonstrate that organizations can also no longer ignore the impact of national cultures on organizations cultures particularly for MNCs. Therefore it is clear that in current times, the implementation of positive organizational cultures and effectively merging of national cultures into organizational culture is critical for positive business performance.Therefore as a start, MNCs should understand and be aware of the different types of national culture as well as adopting a fitting organizational culture themselves to account for international culture differences in employment relations.Organisational CultureGreenberg and Baron (1997) define organizational culture as a cognitive manikin consisting of attitudes, values, behavioural norms, and expectations. These values stated have a strong i nfluence on employees behaviours, thinking, and behavioural patterns which in turns encourages diversity and adaptability to support its performance. Organizational culture is also an effective control mechanism for managing employee behaviour. In an organization with different nationalities, the company would need to foster a ballpark diversity culture in the company to create a mutual respect for each and every different employee which may in turn enhance their full potential. A strong organizational culture is a primary generator of real motivation and commitment and has a unique absorptive power to congregate people (Mobley, Wang and Fang, 2005).Therefore, this is a need for an organizational culture that fits to the needs of the company and its employees. Now, using a case study on Google in this essay, it will attempt to evaluate how Google makes use of national culture and their organizational culture to account and shape for international differences using Edgard Scheins Th ree Levels of Culture theory.Third Case Study GoogleGoogle is a worldwide company that has strong practices in diversity. Google culture revolves around their mission to devise the worlds information and make it universally accessible and useful. (Corporate Information, 2011) Google consists of a diversity of staffs, supporting various cultural norms. through and through this cultural norm, they encourage and support the diversity of its customers and employees.Google consist of bilingual employees catering to their diverse consumer base. In fact, Statistics shows that more than half of the results Google provides to its customers are outside of the US. (Corporate Information, 2010). Diversity is distinct in Google such as their employees, offices, products, and customers. By understanding national culture and accepting the different nationalities differences, Google leverage and make use of the different skill sets of each employees.Googles CultureAs Google consist of a diverse st aff group, it shows the importance of having a strategically arrogate culture, a culture which will fits the needs of the organization, its employees and the marketplace.At Google, we dont just accept difference we thrive on it, we celebrate it, and we support it for the benet of our employees, our products, and our community. (Google Annual Report, 2010) Google has embraced diversity and integrated it into their culture and into their core culture statement.The manifestations of Googles culture are analyzed by evaluating the artefacts at Google (Gagliardi, 1992). Through looking at the various aspects of Google, it is shown that Google has an integrated and everyday culture (Martin, 1992), which comprises of four key elements.MissionInnovationFunRewardUsing Edgard Scheins Three Levels of Culture, it is first defined and seen through the artefacts such as visual organizational structures or tangible items. Google supports diversity of norms in each office by utilizing their offic e and cafes. They are designed to encourage actions between employees within and across teams, and to spark conversation about work as well as play. Social interactions stimulate companionship and learning breakthroughs. Without communication, there is no way to express thoughts, ideas, manage differences and feelings. Communication plays an important role in keeping and maintaining values and relationships infallible to keep the system of the organisation united.The next level of culture would be the exposed values which are the strategies, goals and philosophies. Daft (2003) stated that managing a global environment requires managers to have the ability to manage change through innovation and creativity. Therefore, the employees in Google are motivated to contribute their suggestions and ideas. Most of Googles work are project based hence employees are required to team up and pursue the project. The team may consist of a diverse group of members. Through the concept of a group project, members would then need to learn to accept one another and work together. This enhances the communication between Googles employees and hence they share a unified common goal and vision. However, conflicts between the employees are bound to happen in project based work. Therefore, conflict management between employees and respect for cultures must be structured and organized for the many cultures and diversities.One strategy that Google implement is to create awareness of international national differences is by organizing national cultural events such as The 6th Sense Diversity Week in India and Diwali and Google Mela to develop cultural discussion to the employees and international cultural competence. The purpose of these cultural events is that the employees would generate a culture-specific understanding of the other and positively look of the other. Through these events, it will groom and educate the employees on cultural awareness.During such events, Googles emplo yees are able to interact and appreciate each others culture consequently, an accommodating culture and organizational behaviour is then established within the organization.The next level of culture would be the assumptions such as taken for granted beliefs, perceptions, thoughts and feelings through experience. Googles employees are passionate and self-motivated, and the company empowers them to a certain degree to make responsible decisions. Therefore, employees could get an equal and second-rate opportunity to innovate and unleash their imagination and ideas through their meetings.After analyzing all of Google culture characteristic, using wish and Kennedy model of organizational culture (Deal and Kennedy, 1982), Google most likely falls into the work hard/play hard culture. Characteristics of the culture include high levels of activity and where employee has to take few risks and these characteristics are clearly reflected in Google.Through the concept of organizational cultur e on how they are establish and reinforce, it will make a big difference in the way employees act and in the way the organization act as a whole when ethical dilemmas are faced. Through cultivating a fitting culture from the start, the organization and the employees will have a shared set of understandings about what is correct behaviour and how ethical issues will be handled. Therefore, if a company would to embrace and be accepting to international culture from the start, this will account and shape the employees to be more accepting to cultural differences and hence improve employment relations.Therefore, it is proposed that companies should ensure mentoring their employees through guidance train of the culture and encourage bonding and communication between levels of management and their employees.Also managers that have to work across different countries are required to understand the importance of national culture and organisational culture as well. Gabriel (1999) states that managers have to also recognise and build on cultural particularities, adapting organisational products and policies to local cultures and managing employees in a manner arrogate to their culture.It is beneficial to understand the country culture and the organisations culture. The country may have its own set of framework and culture in which they operate in. This will impact and forces multinationals to attune their practices and approaches to each and every cultural context they operate in. Different companies may operate things differently due to their home countrys culture and thus do an impact on policies, communication strategies, organizational structure, and human resources management. By understanding and managing these cultural differences, it will be a vital ingredient of organisational success.Other FactorsIn this essay, it has stated the importance of national culture and organisational culture in how they account and shape for international differences in employment relations. However, other factors such as economic, social, political, and proficient factors may also constitute an impact on international cultures. Amongst the different factors, economic, political and technical factors are identified to be one of the most important factors that locomote international differences.Economic FactorsEconomic factors like globalization are one of the factors affecting international employee relations. Through effects of globalization where companies may take more advance, the management has to ensure that the skills processed by the employees are compatible with those required in the market to meet the customer needs. Globalisation will increase the competitiveness and inequality among the countries. Under globalisation, industries and services make a motion from one country to another, thus restricting opportunities for permanent employment relationships to the benefit of economic performance. To improve their competitiveness, many MNCs sought to relocate their business operations to countries where labour is cheaper and workers are less protected and hence overlook employment relation to focus more on the performance of the company.Technological FactorsSometimes companies that undergo technological developments have destroyed trades as they undergo aggressive growth and rapid expansion. This may make it necessary for its human resources department to focus on recruitment and staffing internationally and locally. Therefore a company may have its problems to expand and recruit new employees, as it may need to focus its recruiting efforts outside the region if the labour pool is not large enough. Companies may also make specific requirements for a job where the applicant is required to possess a certain degree of skills or nationality and this in turn affect employment relations.Political FactorsThese reg