Organizational Culture and National Culture in Multinational Companies

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Abstract

Multinational organizations are combinations of multicultural employees. Multicultural environments cause cultural shock among leaderships and employees. Organizational culture and national culture are significantly important in current marketing environment. Organizational culture mainly shows the value and the roles inside the organization. However, national culture is the directing of organizational culture and influence both leadership and employees deeply from their personal values. Furthermore, the relationship between organizational culture and national culture has impacts on leaderships, employees, job satisfaction as well as the commitment of employees to the organizations. This essay will discuss the issues above, and
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For instance, Wallach (1983) viewes three perspectives of organizational culture, that is, innovative, supportive and bureaucratic. Martin (1992) identified three forms of organizational culture, including fragmentation, differentiation and integration. Goffee and Jones (1998) define four types of organizational cultures, which is communal, fragmented, mercenary and networked. However, in a company, individuals have personal values and beliefs as well as personal desires. On that account, the attitude of employees and commitment to the companies may result in diversity of achievements. National cultures also have some effects on the values, beliefs and personal desires. A variety of countries have multifarious national cultures, giving rise to a culture shock in multinational companies. Cross-cultural research shows that significant differences exist in national culture characteristic between western and eastern cultures (Hofstede, 1980, 1991; El Kahal, 2001; Chen, 2001). For instance, it is widely known that bureaucratic traditional deep-rooted culture and high power distance exist in Chinese companies (Pye, 1985; Chen, 2001). The management of firms in the west and east makes a world of difference. The reason for that is the distinction between the impact of national culture on individual worth and how individual worth adapts to the organizational culture. Furthermore, after organizations in Hong Kong are mostly in power by ethnic Chinese, the Chinese-style high
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