In what ways do national differences affect organizational culture

In what ways do national differences affect organizational culture? What trends in organizations, businesses, and work today seem to override differences in national-level culture?

The organizational communication of a nation is deeply rooted in its culture. Just as language, food, and geography differ from country to country, so do the ways people communicate with each other and how businesses are organized. Each nation is different, and therefore each organizational culture is different. “When we study a specific organizational culture, we are interested in discovering relevant differences and similarities in order for us to see what sets the culture apart from its surroundings and what constitutes important links” (Cheney, Christensen, Zorn, Ganesh, 2004).

Geert Hofstede, who studied how values in the workplace are influenced by culture, identified four elements that help define and explain the differences between organizational cultures in different nations. Power distance is defined as "the extent to which it the less powerful members of institutions and organizations within a country expect and except that power is distributed unequally" (Hofstede, 1991). The following graph illustrates examples of low and high power distance:

Low Power Distance	High Power distance
Subordinates expect to be consulted	Subordinates expect to be told what to do
Boss should be resourceful democrat	Boss should be benevolent autocrat
Privileges and status symbols frowned upon	Privileges and status symbols expected
Teachers expect initiatives from students in class	Teachers are expected to take all initiatives in class
Hierarchy in organizations seen as exploitive	Hierarchy in organizations reflects natural differences
Inequalities between people should be minimized	Inequalities between people are expected and desired
Parents and children treat one another as equals	Children respect parents and parents expect obedience
Austria, Israel, Ireland, Scandinavia	Malaysia, Panama, Mexico, Philippines
U.S.A. Ranked 38 of 53 — Moderate/Low Power Distance

Hofstede (1991) defines uncertainty avoidance as "the extent to which the members of a culture feel threatened by uncertain or unknown situations." The following chart illustrates the differences between low and high uncertainty avoidance:

Low Uncertainty Avoidance	High Uncertainty Avoidance
Low time consciousness	High time consciousness
Few rules	Many rules
High tolerance of deviant and innovative ideas	Low tolerance of deviant ideas; resistance to change
Low stress	High stress
Risk taking	Risk adverse
People can appear quiet, easy-going, and/or lazy	People can appear busy, emotional, and/or aggressive
Students comfortable with open-ended learning	Students comfortable with structured learning
Anglo & Nordic; Singapore	Latin Europe, Latin America, Korea, Japan
U.S.A. Ranked 43 of 53 — Low Uncertainty Avoidance

Individualism refers to societies that value the individual identity over the group and have looser ties between people. Collectivism is the opposite of individualism and refers to societies that value the strong group effort over individual recognition. Some examples are charted below:

Individualism	Collectivism
Identity is based on the individual	Identity is based on one’s social network
I do, therefore I am	I am, therefore I do
Work relationship is seen as contract	Work relationship is seen in moral terms, like family link
Task prevails over relationship	Relationships prevail over task
Employment decisions based on skills and rules	Employment decisions reflect person’s group connections
Speaking one’s mind indicates honesty	Harmony should be maintained & confrontation avoided
Low-context communication (direct)	High-context communication (indirect)
Rule-breaking leads to guilt and loss of self-respect	Rule breaking leads to shame and loss of face
Management is management of individuals	Management is management of groups
USA, Australia, Britain, Netherlands	Central and South America, East Asia
U.S.A. Ranked 1 of 53 — High Individualism

“Masculinity-femininity differentiates between those cultures that emphasize assertive and competitive orientations toward work (masculinity) and those that emphasize cooperative, interdependent orientations toward work (femininity)” (Cheney et. al., 2004). The following graph illustrates some examples:

Femininity	Masculinity
Gender roles overlap	Distinct gender roles
Nurturance	Assertiveness
Stress on equality and quality of work life	Stress on competition and performance
Managers use intuition and strive for consensus	Managers expected to be decisive and assertive
Humility and modesty are important	Men are assertive; women are tender
Conflict resolution by compromise and negotiation	Conflict resolution by fighting out over issues
Sweden, Norway, Denmark, Netherlands	Japan, Italy, Mexico (Latin Europe & America)
U.S.A. Ranked 15 of 53 — Moderate/High Masculinity

Because these elements are so important to understanding the culture of an organization or a company, businesses have been created to provide consultation. Some of these businesses are:

Integrating cultures or adapting to new cultures can be difficult, especially when an organization expands to encompass a new region, or combines business efforts with a company from a different country. Lenovo Group Ltd., a Chinese company purchased business from IBM in December 2004 and experienced many obstacles integrating corporate cultures. Many employees were not accustomed to the Chinese business culture.

“A former employee described its culture as so Chinese, and so strange, that most employees who had been educated abroad soon left. Twice a day, the sound system broadcasts throughout the company's headquarters in northwestern Beijing a song formally known as the Number Six Broadcast Exercises, a set of gentle stretches and knee-bends that any child who has grown up in communist China has learned. Participation is voluntary but highly encouraged. Another quirky custom was to encourage people who are late to meetings, especially internal meetings, to stand behind their chair for the first minute, as an attempt to humiliate them into being punctual in the future” (Cox News Service).

The importance of integrating cultures and being cognizant of the organizational differences of different nations is also apparent in the European Union. Max McHardy, head of franchising at BDO Stoy Hayward Management Consultants, an affiliate adviser with the British Franchise Association (BFA), says, "You need a thorough knowledge of the environment before you go in. Culture is key. It will affect your market in terms of getting the local populous to take your product and in doing business” (Coleman, 2004).

One trend that seems to override differences in national-level culture is the concept of family, which is apparent in many different cultures. “In fact ‘family’ and ‘community’ interact in important ways in many different national and cultural contexts. Community at work and in the public sphere begins with family connections, with solidarity in each domain reinforcing that in the others” (Cheney, et. al. 2004). In many different cultures, family plays an important role in decision-making and creating a sense of community.

Coleman, Alison (2004). Beware Europe’s culture shocks. Sunday Express, 23. Retrieved

Cheney, G., Christensen, L. T., Zorn, T. E., & Ganesh, S. (2004). Organizational communication

Hofstede, G. (1991). Cultures and organizations: Software of the mind. Maidenhead, UK: McGraw-Hill.

Lenovo’s corporate culture a key issue as it absorbs IBM. Cox News Service. Retrieved February 3, 2005 from LexisNexis.