Organizational Culture in Multinational Corporations - Research Paper Example

 Organizational Culture in Multinational Corporations As the universe has crossed the threshold into the epoch of twenty first century, the humankind with their enormous and mammoth potentials capacity has made the world a much better place to live in. These capabilities have led the globe towards scientific and technological innovations and advancements, where the entire population of the world is able to communicate and travel promptly within no time. In addition, this has also made the world of commerce to step ahead, develop, and spread out the operational and functional activities of the businesses from the local and neighborhood arena to a global and universal platform (Alvesson, 2002). The culture in general and broad-spectrum comprises of assumptions, beliefs, values, norms, customs, artifacts, and several other components, likewise organization also have its norms, values, principles and policies that makes up a characteristics of the organization. In the view of many experts and theorists, culture can come under illustration and distinguish itself on three levels (Schneider, 1988). Behavior and artifacts are considerably the most obvious and manifest level as it encompasses the behavioral structure of the populace of a particular culture. Values or the principles are the subsequent level that motivate, inspire, and figure out the actions of the people. Assumptions, hypothesis, values and attitude are the distant and rooted level and considerably the most vital and imperative level to apprehend (Schneider, 1988). In order to understand the effective functioning of the organization, it is pivotal to identify with the culture first as it is a complete experience of the happenings and circumstances that encircles the entire population of the world (Alvesson, 2002). With the emergence of the multinational corporations that managed their operations in a number of countries apart from the parent country, a new concept also came under development that came under the explanation as organizational culture. Organizational culture is one of the foremost and primitive facets that are cumulative endeavors of the workforce of the enterprise and their actions and conduct (Alvesson, 2002). Although organizational culture has come under analysis and study from a wide variety of aspects, yet it does not have a solitary and distinct definition as it is complicated and tricky to articulate in a noticeable or apparent manner. Some schools of thought even refer the organizational culture as a system where the key in elements are the response and opinion from various characteristics such as the general population, laws, and ethical, moral and competition principals. The beliefs, hypothesis, ethics and customs based on factors such as time, money, people etc. amalgamates as a process that produces the output in the form of the consequences including the organizational behaviors, strategies, policies, products, brand image and many more (Brenton & Driskill, 2010). For the last few decades, organizational culture has gained substantial recognition, and outstretched and broad acknowledgement amongst the employees of the organization as it has been a pivotal source for identifying and becoming aware with the behaviors and attitudes of the human systems. Organizational culture is the combined recipe of principles and attitudes that makes up the inimitable and distinctive shared surroundings and atmosphere for the enterprise (Brenton & Driskill, 2010). In other words, organizational culture is the merger of values, beliefs, experiences, assumptions, documented and unrecorded rules and regulations, policies and viewpoints of the organizational members that contributes in the company’s brand image, internal working environment, communions and dealing with the external sources, and upcoming prospects and opportunities since the time the enterprise initiated until the current date (Alvesson, 2002). In addition, the management of employees, means of operating the business activities, customers handling, degree of freedom provided in making decisions, expression of ideas and personal opinions, the means and ways of transfer of information and the efficiency of the employees towards the achievement of organizational goals and objectives also contribute to the culture of the organization (Alvesson, 2002). The effectiveness or the proneness of the organizational culture depends upon how well the culture spreads out or disseminates amongst the employees. The organizational culture also contributes and creates mammoth impact on to the proficiency of the organization and the productive output from the employees. The organizational culture not only set benchmark for the customer dealing, product quality, safety, and security measures, every day activities and internal environment but also widens and enlarges the scope of procedures of marketing customs, sales procedures and product or service manufacturing techniques (Brenton & Driskill, 2010). Since every enterprise is distinctive from others in running their businesses, hence, making the organizational cultures also matchless and exclusive although some of the elements may reflect similarity, yet it is a feature of the enterprise that is one of its kinds. Due to increased globalization, corporations are setting up their businesses on global and worldwide marketplace, rather than restricting themselves to the local environment. Therefore, the concept of multi-national corporations has developed and has given rise to several corporations on a universal podium (Brenton & Driskill, 2010). Whilst talking about the multi-national corporations, it consists of several employees with a diversified cultural heritage, mindsets, family background, and attitudes. Therefore, when the multi-national corporations expand their business from the parent country to the host country, one of the leading challenges is to incorporate the local employees into the organizational culture (Ashkanasy & Wilderom & Peterson, 2010). This is complex and difficult due to the reason that the local employees come from the background where they already have their own cultural norms and values. While on the other hand, the design of the organizational culture is according to their norms and values of the parent country and the local employees have their own and different set of values, customs, languages and attitudes which they communicate. Therefore, to amalgamate the two different sub-cultures in one environment is a tricky task (Ashkanasy & Wilderom & Peterson, 2010). Leaders, executives, and managers are one of the principal and chief role players who contribute in the development, upholding, and preservation of the organizational culture to great extent. As the executives are the most influential source for the junior members of the enterprise, therefore, it is in their hands to how well they make the employees and their staff members adapt and follow the organizational culture that makes up from the organization’s principles, expression of significant ethics and standards, and design of customs (Ashkanasy & Wilderom & Peterson, 2010). However, according to experts’ opinions few ways are accessible that would facilitate the leaders and the mangers in persuading the cultural norms and values to the employees. Accentuate and underline the essential and vital goals and objectives by exchanging few words and ideas that leads to the accomplishment of those goals, share the achievements with the employees and make them recall the important missions on timely basis (Ashkanasy, Wilderom & Peterson, 2010). Incentives granting for the attainment of the important tasks and responsibilities are another mean of influencing the employees of the organization. Demoralize and deflate the employees and their behaviors that are unconstructive for the organization and may provide them with positive comments or criticism through counseling, or even give them unwritten and written warning notice (Ashkanasy, Wilderom & Peterson, 2010). According to various theorists and analysts, organizational culture is evidently the solitary, substantial, and most valuable feature that plays the most important role in determining and providing an explanation for either the prosperity or the downfall of the organization. Therefore, it is imperative for the employees at the executive level that organizational culture comes under well elucidation in order to ensure the efficient performance and productive output from the employees (Winkler & Jackson, 2009). It has come under observation at many instances in point of time that when the organizations’ managers and executives are uncertain, contradictory and incoherent with the organizational cultures, they fall short and are unable to implement the new strategies and policies successfully that leads to novel and innovative mission or objectives. Moreover, according to cultural analysts, enterprises must be wide alert and acquainted with their cultural norms and values that surround them and is the corner stone of any organization because if they fail to do so, then the cultures will control and direct them that may lead the corporation towards the failure (Cameron & Quinn, 2011). Organizational cultures play an elementary and fundamental role for the employees, as they want to work in an environment that is challenging and provide them opportunity to grow, therefore, with strong, powerful and dominant culture of the organization will be a source of attraction and appeal for the employees and they would give outputs that are more productive. In addition, it is important to contemplate, create, maintain and safeguard the enduring and governing organization’s culture to ensure the forthcoming employees that the enterprise would provide them with a competent environment where they can flourish (Keyton, 2010). Organizational culture acts as a crucial and decisive element in facilitating in the organization to sustain and retain the potentials and capabilities of their employees for a longer period and develops a sense of loyalty amongst the employees. This is due to the reason that employees are less likely to leave the organization if the level of satisfaction is higher than their expectations (Cameron & Quinn, 2011). Organizational culture also governs and controls the engagement of the employees towards a particular task or responsibility. According to various studies and researches, it has come under surveillance that a big population of the American employees and workers has a negative feeling towards their jobs and come under the level of dissatisfaction due to not being occupied for any assignment or work. As an outcome of it, the efficiency and output by the employees decline at a rampant speed (Cameron & Quinn, 2011). Moreover, the culture of the organization that applauds, cherishes, and values the ideology, belief, and viewpoints and provides them freedom of speech and thought, creates an affirmative power and thrust that is more probable for the success of the organization and increases their profitability and the company image through the effective and productive output. This also changes the perceptions of the employees towards their job responsibilities and the assigned task to them. Furthermore, the strong culture of the organization develops a desire to work with joy and contentment (Keyton, 2010). Teamwork, harmony, alliance, and mutual effort are the major and key consequences of the governing and prominent organizational culture. When employees get more opportunities to interact and communicate with other members of the enterprise, the likelihood of forming new associations amplifies that result in cooperation and synergy, bringing every employee collectively under one roof (Keyton, 2010). For the last many years, multi-national corporations are experiencing utter competition where the fundamental feature is to gain competitive advantage over other entrants present in the global market. The multi-national corporations are competent and proficient enough that they can share and make the most of state-of-the-art knowledge and acquaintance contributes to the elementary and primitive causes of upholding themselves into the global competitive environment (Keyton, 2010). The concept of organizational culture has been a matter of subject that has undergone several debates and arguments and has become the prime and focal point in the recent times for the enterprise to attain success. Organizational culture in a multi-national corporation deeply and profoundly affects the local culture and vice versa (Jung, Su, Baeza, & Hong, 2008). Through a variety of researches and studies, it can come under conclusion that when the multi-national organization set up a new business unit in a foreign country, the corporation has to modify and alter the secondary customs, values, norms according to the local culture while the foremost, and principal values remain the same. This is important due to the reason that the employees would find it more comfortable and contended if they get the same cultural environment as they have been living. In addition, the local culture has become a part of the employees’ lives and their mindsets, therefore their attitudes and behaviors act accordingly, and in order to sustain in the local market of a foreign country, a multi-national corporation must amend few of the cultural values (Jung & Su & Baeza & Hong, 2008). The human resource department is a strong and leading component that accurately communicates the corporate culture to the employees and ensures the administration of it (Schneider, 1988). This is one of the most crucial and tricky task for the human resource department as they also need to ensure that the transfer of the cultural norms and values of the organization should not hurt the emotions and values of the culture of the local employees. Therefore, local cultural diversity is a leading facet that rules over the organizational culture of the multi-national corporation (Schneider, 1988). The entire process of human resource that includes planning and recruiting, appraisals and compensation, selection and socialization and various others has a deep and intense influence of the local culture, rather than the organizational culture (Schneider, 1988). The local cultural measurement and assessment is also an integral part on the organization’s side while opening up a new business unit in a foreign state so that the local cultural aspects such as their values, norms, perspectives can come under identification. This gap analysis report would prove to be beneficial in the assimilation and incorporation of the local culture with the organizational cultural norms and values. This will eventually lead to better and efficient output from the employees (Winkler & Jackson, 2009). According to another research, it has come under noticing the information that culture not only impinge on to the employees and their proficiency, rather they create a noteworthy and remarkable affect on the financial conditions and performances of the enterprise on a long-lasting basis. Therefore, it can come under conclusion that organizational culture plays a vital and pivotal role in the success of the organization and the local culture dominates and governs the culture of the organization (Jung, Su, Baeza, & Hong, 2008). References Alvesson, M. (2002). Understanding organizational culture: Organizational Culture Series. SAGE Publications Ltd. Ashkanasy, N. M. & Wilderom, C. P. M. & Peterson, M. F. (2010). The Handbook of Organizational Culture and Climate. SAGE Publications Ltd. Brenton, A. L., & Driskill, G. W. (2010). Organizational Culture in Action: A Cultural Analysis Workbook. SAGE Publications Ltd. Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. John Wiley and Sons. Jung, J., Su, X., Baeza, M., & Hong, S. (2008). “The effect of organizational culture stemming from national culture towards quality management deployment.” TQM Journal. Volume 20, Issue 6, pp. 622. Retrieved on July 11, 2011: http://proquest.umi.com/pqdweb?did=1600881261&Fmt=7&clientId=74379&RQT=309&VName=PQD Keyton, J. (2010). Communication and Organizational Culture: A Key to Understanding Work Experiences. SAGE Publications Ltd. Schneider, S. C. (1988). “National vs. corporate culture: Implications for human resource management.” Human Resource Management. Volume 27, Issue 2, pp. 231. Retrieved on July 11, 2011: http://proquest.umi.com/pqdweb?did=1108660&Fmt=7&clientId=74379&RQT=309&VName=PQD Winkler, K., & Jackson, D. H. (2009). “Successful cultural integration during a merger: The case of Qiagen and Digene.” WorldatWork Journal. Volume 18, Issue 4, pp. 57. Retrieved on July 11, 2011: http://proquest.umi.com/pqdweb?did=1952974311&Fmt=7&clientId=74379&RQT=309&VName=PQD Read More