What Is The Impact Of Cultural Differences On Organisations?

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Register to read the introduction… ‘In high uncertainty avoidance cultures, people prefer stricter laws, safer environments and certainty in religious beliefs (Lamoreaux & Morling 2011, pp. 302). This implies an unwillingness to take risks, accept organisational change, and reluctance to take personal initiatives outside prescribed roles. These employees develop an external locus of control that luck and destiny cause events in their lives. Lamoreaux and Morling (2011) explain that this creates pressure for management to set challenging goals, continuously upgrade knowledge and provide training and development.

Individual identity is membership in family, caste and community whose norms and values need to be unquestioningly accepted. Patrick and Kumar (2012) explain that high performers are not satisfied with a work well done. This would restrict their ability to achieve self-efficacy, due to the lack of self-autonomy and self-fulfilment and reduce cohesiveness, commitment and cooperation. Plessis (2012) examines that this creates the need for managers to educate employees and themselves on different cultures and eliminate prejudice to promote shared organisational values and corporate
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1). This affects interactions and requires management of communication and adaptability to overcome language and stereotypes, for coordination and collective action. This allows individuals to reach their potential and maximise contribution to the organisation’s strategic goals and objectives, including improving consumer expectations and experiences. However, according to Fenwick, Costa, Sohal and D’Netto (2011), if diversity is not effectively managed, this can lead to lack of skills and competencies which will increase employee turnover reduce employee morale and motivation and reduce productivity. Thus managers need to recognize that individuals from different cultures can bring fresh and innovative ideas which leads to organisational growth and …show more content…
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