Management Summary The purpose of this paper is to analyse and review the importance of National Culture for Multi-National Corporations & Trans-National Corporation while seeking to operate in global environment. As a result, readers will know how the national culture in one country and the comparison between chosen countries. Basically, cultural differences, while difficult to observe and measure, are obviously very important. Failure to appreciate and account for them can lead to embarrassing blunders, strain relationships, and drag down business performance. And the effects of culture persist even in life-and-death situations. The persistence of cultural value differences is particularly relevant for large multinational companies that are
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Introduction Many issues need to be addressed in order to limit the incidence of conflict resulting from cultural differences between countries. It can be overcome by employing local operatives in foreign subsidiaries and this can greatly reduce tension arising from different national cultures, and speed up organisational change. National cultural issues have led to gradual increase of research in cross-cultural management. Hofstede’s cultural dimension studies and the globe leadership study have greatly assisted cross-cultural management. As discussed above, understanding and accepting national cultural differences is important in any business relationship, either it internal or external to the organisation. These facts attract researchers to discuss about national culture of some countries. III. National Culture According to “Professor Geert Hofstede, culture is defined as “the collective programming of the mind distinguishing the members of one group or category of people from others”. According to his research there are six dimensions of national culture. On the other hand, national culture is when people of a particular nation share the same cultural backgrounds, customs, values, beliefs and rituals that shape …show more content…
This dimension is based on the degree of acceptance a culture places in the value of hierarchies (Herkenhoff, 2004). It shows the degree of inequality that exists between common people and people with power. In low power distance, people are less compelled by hierarchical rules. People feel free to discuss their concerns with the higher levels within an organisation or society. On the other hand, high power distance is referred to tall organisational structures, while low power distance cultures prefer flat or horizontal organisational structures (Herkenhoff, 2004). India scores 77 on this dimension, which is very high when compared to others. It means Real Power is centralized, though it is not visible. Managers enumerate on the obedience of their staff members. Employees expect to be instructed clearly as to their roles and responsibilities for specific assigned task. Control is commonly known, even a psychological security, and attitude towards managers are formal basis. Communication is top down, often feedback which is negative is never communicated to top level and this mostly happens due to high Power distance index. Individualism. The Hofstede study, relates to a culture’s predisposition towards individual behaviour or group. The individualist societies people will look after themselves and their family only. The collectivist societies people are ‘in groups’ that take care of them in
Introduction Many issues need to be addressed in order to limit the incidence of conflict resulting from cultural differences between countries. It can be overcome by employing local operatives in foreign subsidiaries and this can greatly reduce tension arising from different national cultures, and speed up organisational change. National cultural issues have led to gradual increase of research in cross-cultural management. Hofstede’s cultural dimension studies and the globe leadership study have greatly assisted cross-cultural management. As discussed above, understanding and accepting national cultural differences is important in any business relationship, either it internal or external to the organisation. These facts attract researchers to discuss about national culture of some countries. III. National Culture According to “Professor Geert Hofstede, culture is defined as “the collective programming of the mind distinguishing the members of one group or category of people from others”. According to his research there are six dimensions of national culture. On the other hand, national culture is when people of a particular nation share the same cultural backgrounds, customs, values, beliefs and rituals that shape …show more content…
This dimension is based on the degree of acceptance a culture places in the value of hierarchies (Herkenhoff, 2004). It shows the degree of inequality that exists between common people and people with power. In low power distance, people are less compelled by hierarchical rules. People feel free to discuss their concerns with the higher levels within an organisation or society. On the other hand, high power distance is referred to tall organisational structures, while low power distance cultures prefer flat or horizontal organisational structures (Herkenhoff, 2004). India scores 77 on this dimension, which is very high when compared to others. It means Real Power is centralized, though it is not visible. Managers enumerate on the obedience of their staff members. Employees expect to be instructed clearly as to their roles and responsibilities for specific assigned task. Control is commonly known, even a psychological security, and attitude towards managers are formal basis. Communication is top down, often feedback which is negative is never communicated to top level and this mostly happens due to high Power distance index. Individualism. The Hofstede study, relates to a culture’s predisposition towards individual behaviour or group. The individualist societies people will look after themselves and their family only. The collectivist societies people are ‘in groups’ that take care of them in