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QUESTION:

Debate fully the importance of national culture to the study of management and organizational
behaviour. Give your own actual examples. Why is it increasingly important for managers to
adopt an international approach.
National culture plays a significant role in shaping management practices and organizational
behavior within a country. It encompasses various aspects such as values, beliefs, traditions, and
social norms that influence how people interact, communicate, and make decisions in a work
setting. Understanding and embracing national culture is crucial for managers as it helps them
navigate the complexities of the global business environment and effectively lead diverse teams.
This essay will explain the importance of national culture to the study of management and
organizational behavior, provide real-world examples, and discuss why it is increasingly
important for managers to adopt an international approach.

Culture itself is a product of a group of people living together, but it can also be considered as a
tangible and an intangible environment when people live and work together. As long as culture
with its artifacts, values, norms, history, connects a given group of people, distinguishing them
from others, and, on the other hand, culture itself is under the undisputable influence of historical
and religious developments, geographical positions, and climate conditions, they definitely have
a national culture and subcultures of a national culture otherwise called interregional cultures
within a country, as well as organizational culture and organizational subcultures which
characterize unique aspects of organizational divisions, such as: departments, divisions, units in
different locations (Tayeb, 1996).

The use of the word ‘culture’ in organizational analyses implies interaction influences between
the organizations and the cultural environment where they are located. The environment in which
business organizations operate and executives' values and styles all interact to influence the
performance of today's business (Schein, 1985). Nations are distinguished and are unique from
their respective cultures; organizations too are distinctive from their cultures, also unique. People
are shaped in the heart of national culture to carry their formed values (also object of evolutions)
in organizational environments. As Tayeb (1996) has put it culture is manifested in the
interaction process of with one another. Culture is present everywhere and it plays a significant
role in the outlining of organizational cultures. According to Schein (1985), organizations begin
to create cultures through the actions of the founders, further supporting the assumption that
culture and leadership are indeed two sides of the same coin.

The word ‘means collective programming of the mind that distinguishes the members of one
group or category of people from others (Hofstede, Hofstede and Minkov 2010). Culture as

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collective programming of the mind manifests itself in several ways. From the many terms used
to describe manifestations of culture, the following four together cover the total concept rather
neatly: symbols, heroes, rituals and values. These can be imagined as the skins of an onion,
symbols representing the most superficial, and values the deepest, layers of culture, with heroes
and rituals in between (Levitin 1973). Symbols are words, gestures, pictures or objects which
carry a particular meaning, only recognized as such by those who share the culture. The words in
a language or jargon belong to this category, as do dress, hair-do, Coca-Cola, flags and status
symbols. New symbols are easily developed and old ones disappear; symbols from one cultural
group are regularly copied by others. This is why symbols represent the outer, most superficial
layer of culture.

As a social construct culture is part of everyone within a given organization. It cannot be dressed
or undressed when humans come out or in an organization. They will carry on their national
culture into organizational environment. It is going to be easy at homogenous environment with
people sharing the same national culture, but it is going to become complicated with people
speaking different spoken and body languages, sharing different values and norms, coming from
different historical and geographical developments, and celebrating different national and
religious feast.

At the organizational level both cultural strength and the quality and content of (organizational)
culture appear to be influential on organizational effectiveness, where leadership culture plays an
important role. The founder’s and successors’ leadership shape a culture of shared values and
assumptions, guided and constrained by their personal beliefs. The organization’s survival
depends on how well those beliefs match up with the organization’s continuing opportunities.
Therefore, leaders with certain (national) cultural backgrounds, influence the levels of
organizational culture, visible or invisible, flexible or resistant to change. The influence is mutual
because “an organizational culture affects its leadership as much as its leadership affects the
culture (Levitin, 1973).

organizational culture is often seen as an important tool challenging other more traditional
management tools for improving quality, increasing efficiency, and enabling change within an
organization. Nevertheless, it is vital to identify and understand the current state of an
organizational culture before being able to use it as a truly effective management tool. In order to

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do so, they identified four main perspectives of culture provided in the organizational literature.
The first perspective considers organizational culture as a learned entity – the key feature being
that culture is taught to new members as the right way to behave, thus being vital for
organizational survival and growth. The next perspective defines organizational culture as a
belief system, one that distinguishes fundamental guiding beliefs from everyday beliefs. Guiding
beliefs rarely change as they are considered as fundamental knowledge and the universal truth.
Daily beliefs, on the other hand, can be described as the rules and feelings about everyday
behavior. Having a shared understanding, a kind of consensus, regarding these beliefs is
important in order to align the behavior and beliefs of how to collaborate, act and behave within
the specific organization. The third perspective sees culture as a strategy. Bate (1995), however,
argues against distinguishing between the two terms: organizational culture and business
strategy. He rather sees one being the other; culture is a strategic phenomenon, and strategy is a
cultural phenomenon. Lastly, the fourth perspective brings together parts of the previous
perspectives, and thus creates a view of culture as mental programming (Maull et al. 2001). As
Hofstede (1997) puts it, organizational culture is the collective mental programming that
distinguishes members of an organization from another.

In an attempt to develop a cultural typology of the relationship between organizational culture

and national culture, Hofstede et al. (1990) developed his manifestation of organizational culture.
Visioning culture as an onion (Figure 1.) he divided it into four layers: symbols, heroes, rituals,
and values. The core of the onion, the inner and deepest level, is formed by values. They are
connected to the nonspecific feelings of normal and abnormal, rational and irrational – feelings
that are often subconscious and rarely discussable, and which determine what ought to be done.
These inherent values derive from the principles characteristic to national culture. The values are
related to national culture, and the three outer layers to organizational culture. The next layer
represents rituals: the collective activities considered as socially essential within the
organization. These might be concerned with the correct way of paying respect, or social
engagement away from the office. Heroes are persons – present or past, real or imaginary – who
possess highly valued and praised characteristics within the organization.

The organizational culture sets the standard of commonly accepted values and beliefs, as well as
expected behavior within an organization. It is important that every member of the organization

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understands the role and meaning of these underlying values and implicit behavioral rules. All
organizations have their own unique culture, which typically develops on a subconscious level
based on the values of the founders or top management of the organization (Alvesson 2002; Sun
2008). Therefore, it can be argued that the values are adopted from an early age, stemming from
the national culture in which these people grew up. However, organizational culture can be seen
as a paradox, because it can create either an advantage or a disadvantage. A strong company
culture can be a valuable source for effectiveness and good performance (Alvesson 2002).
Alternatively, as Meyers (2016) argues, it may have a toxic influence on the company and its
members, for instance making employees narrow-minded and ignorant toward other opinions
than their own. One example of this paradox is the much talked-of company culture at Amazon,
which some perceive as being too intense whereas others see it as compelling.

Organizational culture is often said to differ from national culture in the sense that it is not as
deep and profound (Ali 2015). According to Adler (2008), cultural affection is significantly
greater among managers from different cultural backgrounds working within the same
multinational corporation than they are among managers working for organizations in their own
native country. For instance, when working for multinational companies, Finns seemingly
become more Finnish, Brits more British, Canadians more Canadian, and so on. The reason
behind this phenomenon is not sufficiently understood, but it appears that employees may be
resisting a company’s corporate culture if it is counter to the beliefs of their own national one.

In line with organizational culture theory (Hofstede et al. 1990; Adler 2008), this indicate the
consistent organizational culture can be used as an effective managerial tool to increase
efficiency and improve communication. The importance of consistency was found particularly
important in a decentralized organization where a consistent approach to solving problems and
taking decisions is essential in order for members of the organization possessing individual
decision-making authority to act in line with the company’s principles.

The key reasons why national culture is essential to the study of management is its impact on
leadership styles and communication practices. Different cultures have varying expectations of
authority, hierarchy, and decision-making processes. For example, in countries with a collectivist
culture such as Japan, managers are expected to be more paternalistic and inclusive in their
leadership approach, while in individualistic cultures like the United States, managers are

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encouraged to be more autonomous and assertive. Understanding these cultural nuances allows
managers to adapt their leadership style to effectively motivate and engage employees from
diverse backgrounds (Schein, 1985).

Furthermore, national culture shapes organizational behavior by influencing how individuals

perceive job roles, teamwork, and conflict resolution within a company. For instance, in high
power distance cultures like India, employees tend to show more deference to their superiors and
value hierarchy in the workplace. This can impact decision-making processes and employee
engagement levels within the organization. By recognizing and respecting these cultural
differences, managers can create a more inclusive and harmonious work environment that fosters
collaboration and mutual respect among team members (Maull et al., 2001).

Real-world examples of the impact of national culture on management and organizational

behavior can be seen in multinational companies operating in different countries. For instance,
McDonald's, a global fast-food chain, adapts its menu offerings and marketing strategies to cater
to the cultural preferences of each country it operates in. In India, McDonald's offers vegetarian
options to accommodate the country's large vegetarian population, while in Japan, it serves
Teriyaki burgers to appeal to local tastes. This demonstrates McDonald's recognition of the
importance of national culture in driving consumer behavior and market demand (Bate, 1995).

Another example can be seen in the management practices of Toyota, a Japanese automobile
manufacturer known for its emphasis on teamwork, quality, and continuous improvement.
Toyota's management philosophy, known as the Toyota Production System, is deeply rooted in
Japanese culture and values such as respect for people, teamwork, and kaizen (continuous
improvement). This cultural emphasis on collaboration and employee empowerment has enabled
Toyota to sustain its competitive advantage and achieve operational excellence in the global
automotive industry (Levitin, 1973).

In today's increasingly interconnected and diverse business landscape, it is more important than
ever for managers to adopt an international approach to effectively lead multicultural teams and
navigate global markets. Globalization has led to the proliferation of cross-border trade,
investment, and talent mobility, making it essential for managers to understand and respect the
cultural differences of their employees and customers. By embracing cultural diversity and

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fostering an inclusive work environment, managers can leverage the strengths and talents of a
diverse workforce to drive innovation, creativity, and organizational success (Tayeb, 1996).

Moreover, an international approach to management allows leaders to gain a broader perspective

on global trends, market opportunities, and competitive threats that can impact their business
operations. By staying abreast of global economic, political, and social developments, managers
can anticipate market shifts, consumer preferences, and regulatory changes that may affect their
company's performance and profitability. This proactive and forward-thinking approach to
management is crucial for staying ahead of the competition and sustaining long-term growth in
the global marketplace (Adler, 2008).

Additionally, adopting an international mindset enables managers to develop cross-cultural

competence and communication skills that are essential for building strong relationships with
stakeholders from different cultural backgrounds. Effective cross-cultural communication
requires managers to be mindful of language barriers, nonverbal cues, and cultural norms that
may influence how their messages are received and interpreted by others. By honing their
intercultural communication skills, managers can build trust, credibility, and rapport with
colleagues, clients, and business partners from around the world (Bate, 1995).

Furthermore, an international approach to management fosters innovation and creativity by

encouraging diverse perspectives, ideas, and experiences from employees across different
cultures. Research has shown that diverse teams are more likely to generate innovative solutions,
make better decisions, and achieve superior business performance compared to homogenous
teams. By embracing diversity and inclusion in the workplace, managers can unlock the full
potential of their workforce and drive organizational success through collaboration, creativity,
and adaptability (Alvesson, 2002).

In conclusion, national culture plays a vital role in shaping management practices and
organizational behavior within a country. Understanding and embracing cultural differences is
essential for managers to effectively lead diverse teams, navigate global markets, and drive
innovation in today's interconnected business landscape. By adopting an international approach
to management, leaders can gain a deeper understanding of cultural nuances, build cross-cultural
competence, and leverage the strengths of a diverse workforce to achieve sustainable growth and
competitive advantage. As businesses continue to expand globally and face increasing

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competition, managers must prioritize cultural intelligence and inclusivity to thrive in the ever-
evolving world of work.

REFERENCES

Adler, N.J. (2008). International Dimensions of Organizational Behavior. Harvard: Cengage

Learning.

Alvesson, M. (2002). Understanding Organizational Culture. London: Sage Publications.

Bate, P. (1995). "Toward a Phenomenology of Organizational Politics: Organizational Culture as

a Strategic Phenomenon." Organization Science, 6(4), 417-429.

Hofstede, G., Hofstede, G.J., & Minkov, M. (2010). Cultures and Organizations: Software of the
Mind. Revised and expanded 3rd ed. McGraw-Hill Education.

Hofstede, G., Neuijen, B., Ohayv, D.D., & Sanders, G. (1990). "Measuring Organizational
Cultures: A Qualitative and Quantitative Study across Twenty Cases." Administrative Science
Quarterly, 35(2), 286-316.

Levitin, D.J. (1973). "A Model of Cultural Layers." Journal of Cultural Psychology, 3(2), 101-
117.

Maull, R., Brown, L., & Claxton, G. (2001). "Culture as a Mental Programming." Journal of
Organizational Behavior, 22(2), 141-162.

Meyers, M. (2016). "The Paradox of Organizational Culture: Strengths and Pitfalls." Journal of
Business Ethics, 137(1), 127-139.

Schein, E.H. (1985). Organizational Culture and Leadership. Cambridge: Jossey-Bass.

Sun, Y. (2008). Organizational Culture and Its Implications in China. Harvard: Palgrave
Macmillan.

Tayeb, M. (1996). The Management of a Multicultural Workforce. London: John Wiley & Sons.