Culture has been a highly debatable topic for decades in which both researchers and practitioners have conducted extensive studies to show how organisations establish their reward systems. How organisations now decide their compensation strategy has come under close scrutiny as the world becomes more globalized with evidence suggesting that internationalization is becoming the norm. This literature review will critically examine the definition of culture and the fundamental aspects as to how social and organisational culture are interlinked and the impact it now has on managers and how they implement their reward strategy across borders.
Although there is no standard definition of culture, the term has been embedded in human history. Terpstra and David (1991) define culture as members of a society with similar ideas, customs and social behaviours that distinguishes one group from another. Their work identifies several characteristics that make up culture, it is imperative that members should have a unified set of values and beliefs towards a common purpose where lessons are learnt and passed on from one generation to the next. Culture can be unique and used to differentiate one group from another and that it’s established to provide solutions to challenges that all individuals face. Furthermore, evidence suggests that cultural differences are becoming increasingly more apparent in todays current economic climate for organisations and the extent that local norms and values
The term "culture" has been used more and more recently but what exactly does it mean? Some have even regarded culture as "the most central problem of all social science" (Malinowski, 1939). According to Merriam Webster (2016), culture is defined as the arts and other manifestations of human achievements. If culture was as simple as Merriam-Webster defines it then the lives of anthropologists, sociologists, and psychologists would be much easier. As we know, culture varies greatly across religion, countries, and some cases in just states; the difference between the north and the south. We can conclude that culture is a set of shared thoughts, values, and cognitions (Geertz, 1973). With culture in itself varying tremendously based on values and location, then surely organizational culture is no simple concept either. The term "organizational culture" has just recently become to be used more (Barley, 1988). Though there may be disagreements on defining culture universally, researchers tend to agree that culture is of vital importance in an organizational context, whether that organization is a company or a government (Kilmann, Saxton, & Serpa, 1986).
Culture is an observable, powerful force in any organization. “Made up of its members’ shared values, beliefs, symbols, and behaviors, culture guides individual decisions and actions at the unconscious level. As a result, it can have a potent effect on a company’s well-being and success” (One Page, n.d.).
Culture is one of the most relevant elements that can define not only a society but also a country’s cumulative beliefs and system. Often noted as the origins of a country, culture is definitive in the sense that it harbors all the elements that can provide justification on the traditions and norms set by the society for its members. More often than not, the society members follow norms in order to create a harmonious community, and the beliefs and the traditions serve as the poles or grounding rules for each member to follow. Culture is very dynamic in the way that it can change over a variety of foreign influences but what is permanent about it is that original elements about it often lingers with the influences, therefore making it multi-faceted and broad. More importantly, culture serves as an individual and unique trait each society has, and therefore sets it apart from other countries and other societies.
Since the inception of human civilization there have been countless cultures and societies which have helped shape the current world today as we know it. The modern human race dates back more than 200,000 years and in that time frame many cultures have risen to great virtue and success only to deteriorate or cease to exist altogether. First before examining one of these cultures we must know what culture truly means. The Army’s Training and Doctrine Command (TRADOC) Culture Center defines culture as a “dynamic social system,” containing the beliefs, behaviors, values and norms of a “specific organization, group, society or other collectivity” learned, shared, internalized, and changeable by all members of the society (Watson, 2010). In
All Organisations posses a distinct form of culture with some having more than a single culture. This culture is usually very difficult to measure, change and most especially change.
The Merriam-Webster dictionary defines culture as “the beliefs, customs, art etc. of a particular society, group, place or time” (Culture, n.d.). Cultural norms vary around the globe, which can make the global business
Cultural Relativism – the practice of assessing a culture by its own standards, and not in comparison to another culture
The definition of culture in this context can be deducted from Trompenaars (1998): “The essence of culture is not what is visible on the surface. It is the shared ways groups of people understand and interpret the world.” (p. 3). From this statement we can extract that people with different cultures see and interpret the world in their own way. Thus, to motivate employees with different cultural backgrounds it is necessary to understand the interpretation the employees have of certain norms and values.
Culture within an organisation is a system of shared values, beliefs and norms of individuals in the organisation and how the value consensus creates a way in which people behave. The shared values have a strong influence on the individuals in the organisation and dictates how a person acts, dresses and performs in their job. A unique culture is developed and maintained by an organisation which provides guidelines and boundaries, through informal means, for the behaviour of the people within the organisation.
Culture is defined as “The ideas, attitudes, customs, beliefs, values and social behaviour of a particular group of people or society that are passed on from generation to generation” (Brentnall, A., n.d.).
The Hofstede Centre (n.d.) defines culture as the “collective mental programming of the human mind which distinguishes one group of people from another.” Chipulu, Ojiako, Gardiner, Williams, Mota, Maguire, Shou, Stamai, and Marshall (2014), note that “culture can be at once tangible and observable; latent and unobservable; or even an abstraction altogether” (p. 367). Culture therefore has many dimensions. Some aspects of culture can be observed by analyzing symbols, ceremonies, dress, and other aspects. On the other hand, some aspects are not observable from the outside, but have to be experienced. Looking only from the outside gives us only a glimpse into the culture values. A large part of culture is the unwritten rules of how things are done. This part of culture is not necessarily observable to an outsider. To fully understand the cultural values of an organization, you need to be inside the organization with access to those with years of work experiences.
An organization’s culture governs day to day behavior. This type of power may be seen as a control mechanism, which businesses use to manipulate internal and external perception. Every organization has a set of assumed understandings that must be adopted and implemented by new employees in order for them to be accepted. Conformity to the culture becomes the primary basis for reward by the organization. “The role of culture in influencing employee behavior appears to be increasingly important in today’s workplace, as organizations have widened spans of control, flattened structures, introduced teams, reduced
The concept of culture is something that defines many aspects of one’s life. From physical objects to different ways of thinking, culture adds significance to human life and makes groups of people distinct from one another. Culture is essentially a group of people who come together with similar interests and points of view. According to the Center for Advanced Language Acquisition of the University of Minnesota, “culture is defined as the shared patterns of behaviors and interactions, cognitive constructs, and affective understanding that are learned through a process of socialization.” From a more sociological perspective, culture is a way in which people come together in order to fulfill their needs. These shared patterns and ideas identify the members of a culture group while also distinguishing those of another group.” Culture is one of the things that sets the United States apart from the rest of the world. Not that the rest of the world is not cultural, but the circumstance here is different. Many people of different cultural backroads come to this country in search of a better life. As a consequence, the United States has become a place where many cultures merge together like a colossal pot soup.
Culture can be defined in many ways due to the fact that everyone can have their own distinct and traditional beliefs and values. “ Culture is fluid, it is not a static entity which one takes out of the box on occasion. It is with us daily” (Cultural Handout). Someone’s culture is set as the characteristics of the group practices in language, religion, types of food, social traits and habits, and the distinct arts and music. There are a variety of different cultures for example, Western Culture, Eastern Culture, Latin Culture, Middle Eastern Culture, and African Culture. All of these different cultures have their own ideas, values, and individualism, laws that are implied, civil rights, and even technology. In our, “ Culture Handout” culture is defined as the tool of the mind, “ it is an individual’s way seeing and interacting within the world. It encompasses one’s values systems, beliefs, and perceptions of the world around them. Race, socio-economic class gender, sexual orientation, ability, geographic location, age, religion language, etc. all impact the formation of culture, but these various context are not culture” (Cultural Handout).
Kroeber and Kluckhohn (1962) identify over 150 scientific definitions of the concept of culture. Indeed, many authors have tried to define culture and this is why there are so many definitions and that a unique one is hard to find. First of all, Kroeber and Kluckholn (1952) assume that culture is a suite of patterns, implicit and explicit, “of and for behaviour acquired and transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiments in artefacts” (p.47). Later, Hofstede adds that culture is “the collective programming of the mind which distinguishes the members of one category of people from another” (Hofstede, 1991, p.51). This definition is the most widely accepted one amongst practitioners. For Winthrop (1991), culture is the distinctive models of thoughts, actions and values that composed members of a society or a social group. In other words,