Table of Contents:

Executive
Summery…………………………………………………………………………1

1. Background of the Company……………………………………………2

1.1 Market Situation………………………………………….2
1.2 Product Range…………………………………………….2

2. Organisational culture and values……………………………………2

2.1 Dyson Paper Ltd…………………………………………………..3
2.2 Jones Sales Agent Ltd…………………………………………..3

3. Drawing on the information given in this case…………………..4

3.1 Cultural web………………………………………………………..5
3.2 Dimensions of cultural web……………………………………5
3.2.1 Routine…………………………………………………….6
3.2.2 Rituals……………………………………………………...6
3.2.3 Stories………………………………………………………6
3.2.4 Symbols…………………………………………………….7
3.2.5 Power Structure…………………………………………7
3.2.6 Control System…………………………………………..7
3.2.7 Organisational Structures……………………………7

4. PESTEL Analysis for the Company………………………………………8

4.1 Political Environment…………………………………….8
4.2 Economic Environment…………………………………..8
4.3 Legal Environment………………………………………...9

5. Impact of culture on organization……………………………………..10

6. Multi Cultural deference…………………………………………………...11
6.1 Individualism (IDV)……………………………………….11
6.2 Power distance (PDI)…………………………………….11
6.3 Masculinity / Femininity (MAS)……………………….12
6.4 Uncertainty avoidance (UAI)……………………….….13

7. Management deference……………………………………………….......13
7.1 Achievement vs. Ascription…………………………………….14
7.2 Individualism vs. Communitarianism……………………….14
7.3 Internal vs. External………………………………………………14
7.4 Neutral vs. Emotional……………………………………………..15
7.5 Specific vs. Diffuse…………………………………………………15
7.6 Time Orientation……………………………………………………15
7.7 Universalism vs. Particularism……………………………..…15

9. Recommendations…………………………………………………………..16

10. References…………………………………………………………………….18
Executive Summary

Paper converter is a multinational company established in 1998 following

the merger between Dyson Paper and Jones Sales Agent Ltd. Although,
the founders of both companies are childhood friends but they have
differing vision and views. The culture of both companies is highly
influenced due to the founding directors of Dyson Paper and Jones Sales
Agent Ltd. The employees of both organizations strongly believe in the
vision of their founders which is increasingly becoming their organizational
culture. Therefore it resulted in an organizational culture clash between
Dyson Paper and Jones Sales Agent Ltd when they shifted under same
roof together as Paper Converter.
The aim of this report is to analyze and evaluate the situation of Paper
Converter in depth specific to organizational culture as well as
international culture of UK to sort out where the company is falling short
and how to overcome the worsening situation.
In this regard, the cultural issues of Paper Converter are analyzed in this
report in detail through applying the analytical tool for organizational
culture such as Cultural Web, PESTEL, Hofstede four Dimensions, Fons
Trompenaar Cultural Framework for international culture of UK in terms of
finding out the problematic areas and develop strategies to overcome the
problems.
1. Background of the Company:
Paper Converter was formed in 1988 following the merger between Jones
Sales Agent Ltd and Dyson Paper. Dyson Paper was founded in 1983 in
the town of Corby, UK with the incentive from British government during
the recession period of the early 1980s. Dyson Paper mainly looks after
the administration and production, while Jones Sales Agent Ltd take over
the charge of sales and marking, from two separate premises located 60
miles apart.

1.1 Market Situation:

Paper Converter’s main market was UK, West Africa and Middle East. To,
improve production capacity and, minimize production cost the company
went multinational by sent up a plant in Zambia with a join venture
partner with a local Zambian company. These also benefited Paper
Converter by gaining World Bank fund for economic development via
Zambian government.

1.2 Product Range:

Though, Paper Converter is an UK based company, which gains most of its
profit from fax rolls, until 1989 its main product line was cash register roll.

2. Organisational culture and values:

The culture of an organisation is the typical way of doing things in the

organization (Hofstede G.H., 1980). It particularly relates to behaviour
patterns and relationships (Hofstede G.H., 1980; Igo T. and Skitmore M.,
2006 and Mascarenhas B., 1992).

The culture of an organisation develops over time. It is created by the

people that work for the organisation its managers and workforce (McLean
L., 2005). What the organisation stands for (its values) and the dreams
that it seeks to turn into reality (its vision) are fundamental in creating a
dynamic culture.

The culture of an organisation is strongly influenced by senior

management board (McDermott C. and Stock G., 2001). The culture
developed, is shaped by their attitudes and the systems and patterns of
behaviour that they encourage. In the case of Paper converted (which is
the result of merger between Jones Sales Agent Ltd and Dyson Paper);
two directors Alan Dyson and Barry Jones have quite different vie from
each other.

2.1 Dyson Paper Ltd:

Dyson Paper was founded by Alan Dyson, is a production engineer. He
instils a culture in which every employee knows what their job is, and
each individual job forms part of the greater hole, which quite sound like
scientific management and also indicate that employees are required to
follow extensive rules and regulations in this firm. And work activities are
designed around individual’s rather then as a team. It also indicates that
managers supervise employees closely to ensure that there are no
deviations. Management is concerned with high productivity, regardless of
the impact on employee morale or turnover. Performance evaluations and
rewards emphasize individual effort, tends to be the primary factor in the
determination of pay raises and promotions. As he believes that
operational efficiency is the result of structure and control, there must be
a distinct departments and lines of authority. And managers are expected
to fully document all decisions, and "good managers" are those who can
provide detailed data to support their recommendations (Tesluk P.E., Faar
J.L. and Klein S.R., 1997).

2.2 Jones Sales Agent Ltd:

Jones sales Agent Ltd. was founded by Barry Jones who is a salesman.
Barry believes success is achieved when each individual is prepared to
accept responsibility not only for their own work, but also for the outputs
of the team as a hole.

Furthermore, job activities are designed around work teams, and team
members are encouraged to interact with people across functions and
authority levels (Ruigrok W. and Achtenhagen L., 1999). There are few
rules and regulations for employees to follow, and supervision is loose
because management believes that its employees are hardworking and
trustworthy.

Employees talk positively about the competition between teams.

Individuals and teams have goals, and bonuses are based on achievement
of outcomes. Employees are given considerable autonomy in choosing the
means by which the goals are attained.

At a strategy meeting in early 1989 (within a year of merge in 1988)

Barry Jones suggested that the company should refocus. Which indicate
that management encourages and rewards risk taking and changes.
Decisions based on intuition are valued.

Management prides of experimenting with new technologies and its

success in regularly introducing new products, which we can see in the
case of the companies move from cash register receipt to fax rolls.
Managers or employees who have a good idea are encouraged to "run
with it" (Schneider B., Gunnarson S.H. and Niles-Joly K., 1994), and
failures are treated as "learning experiences" (Ouchi W., 1979). The
company prides itself on being market driven and rapidly responsive to
the changing needs of its customers; as we can see within five years
(1993) of merger sales had increased at its limit. A PESTEL analysis will
give an inside look of the company’s operating environment.

3. Drawing on the information given in this case, construct a

cultural web for Paper Converter:

The organisational culture as a complex and multilayer concept and

embraces regarding to Cameron and Quinn "...the taken-for-grantcd
values, underlying assumptions, expectations, collective memories and
definitions present in an organisation" (2006, p. 16). Regarding to Lasher
(1999) the term of organisational culture describes the general operating
mode and the character of an organisation. Further the organisational
culture is often distinguished between the external visible and the hidden
section (Lewis, 1998). The culture of an organisation becomes visibly
manifested in its lived politics, processes, symbols and behaviours While
the emotions, beliefs and values of organisational members as well as the
fundamental basic assumptions respectively the 'Paradigm' in the inner
core of an organisation cause the hidden part of an organisational culture
(Lewis, 1998). The employees take an outstanding position. They mark
and affect the organisational culture and develop it to an organisation with
a unique character.

3.1 Cultural web:

In their 'Cultural Web’ concept Johnson, Scholes and Whittington (2005)
focused on the extrinsic observable elements of an organisational culture
and factored out the abstract and hidden cultural part of emotions, beliefs
and values The 'Cultural Web' represents the organisational assumptions -
which are taken for granted and become manifest in the everyday
behaviour of the organisational members - in six dimensions of cultural
artefacts.

3.2 Dimensions of cultural web:

Each dimension describes a certain aspect of lite operating mode and
behaviour in an organisation. The subsequent figure shows the 'Cultural
Web' respectively the six manifest dimensions of the organisational
'Paradigm of Paper Converter. The artefacts can be attributed
fundamentally to the technical, political or cultural subsystems of an
organisation (Balogun and Hope Hailey, 2004).
 3.2.1 Routine:
The cultural element Routine describes the manner in which things will be
handled by organisational members in everyday life (Class, M. D., 2004).
This manner can be negative, e.g. if changes are difficult to enforce, but
also positive, e.g. in rational behaviour. 'Routine in the Paper Converter is
obviously in regular announcements regarding Group performance and
sales target news.
3.2.2 Rituals:
Further cultural elements are Rituals. They embrace activities which take
place with specified rules with a high symbolic value. Training
programmes, recruitment and promotion belong to this element (Millmore,
Lewis, Saunders, Thornhill and Morrow, 2007). They provide clues to the
organisational culture. Paper Converter continually investment in
employees' development as Alan Dyson every focus on a culture in which
every one knows their job roll which need ongoing training and
development.
3.2.3 Stories:
It can embrace negative and positive stories about the organisational
culture and will be used to reinforce key aspects of the culture and the
values of an organisation (Millmore et al., 2007). An important ‘Story’ for
the Paper converter is the going multinational within five years of merger.
 3.2.4 Symbols:
Logos, offices, cars, title, language and terminology which is often used,
represent the last part of the cultural elements, the Symbols (Cameron,
K.S and Quinn, R.E., 1999). In conservative organisations many hierarchy
symbols, formal rules, different privileges for different management levels
etc. exist. Primarily the language shows such ‘Symbols’, in the Paper
Converter as well.
3.2.5 Power Structures:
The formal and informal Power Structures present the political subsystem
in an organisation. The strongest and most powerful group in an
organisation exhibits often a strong connection to the ‘Paradigm’. In the
Paper Converter symbols of rank or seniority are not visible and so almost
no hierarchy structures emerge in day-to-day work.
3.2.6 Control System:
The Control System belongs to the technical subsystem. In this system
reward and performance systems reveal what is relevant for an
organisation and whereon the organisation concentrates e.g. more on
finance or quality of its products and services (Chaffee, E.E. and Tierney,
W.G., 1988). Annual performance appraisals for all employees and
performance measure by achieving target i.e. sales target. Bye looking at
sales improvement we can say If performance of an employee is
exceptional a manager can reward him or her additionally.
3.2.7 Organisational Structures:
It often reflects the ‘Power Structures’. Formal hierarchies and mechanical
structures show that strategy development is the business of top
managers and therefore the employees work to rule (Chang, S.C. and
Lee, M.S., 2007). Such structures in an organisation highlight that
teamwork is not a key artefact. In contrast to that the Paper Converter
works in a decentralised ‘Organisational Structure’. Employees are given
freedom to undertake their jobs in their own way within self-responsible
structures as director Barry Jones’ believes.

Therefore these entire elements give individuals information how an

organisation especially the Paper Converter operates, about its values and
standards and therefore the desired and undesired behaviour within the
organisation. The ‘Paradigm’ sums up the behaviour that was observable
in all elements of the ‘Cultural Web’.

4. PESTEL Analysis for the Company:

If we look at the PESTEL Framework (Political, Economic, Socio-cultural,
Technological, Environmental and Legal), we see that political, Economical
and legal Environmental are relevant to Paper Converters problem in
Zambia.
4.1 Political Environment
Zambia is a constitutional democracy with a peaceful, stable multi-party
environment, which is anchored on the rule of law with distinct separation
of powers between the executive, legislature and judiciary (UNDP, 2011).
Zambia also has an independent press and judiciary as well as a strong
civil society (UNDP, 2011). This provides a stable environment for Paper
Converters Ltd to conduct business with confidence and security. The
continued consolidation and predictability of the rule of law is an essential
environment for Paper Converters Ltd, investment in join venture, trade
and exports.

The Government has undertaken a number of economic reforms that are

aimed by the World Bank to improving the investment and business
environment in Zambia. Among the most prominent of these reforms are
the Private Sector Development Programme (PSDP) and the Strategic
Action Initiative for Economic Development (SAIED), commonly referred
to as the Triangle of Hope (ToH).

4.2 Economic Environment:

Zambia’s economic environment has tremendously improved and
continues to consolidate in this direction (World Bank, 2010). The
economy has been performing well over the past ten years, with positive
growth and a stable macroeconomic environment (World Bank, 2010).

Zambia’s GDP growth has averaged 5.1% per annum between 2008-2010
(World Bank, 2010) .The macroeconomic parameters such as interest
rates, and inflation have continued to show a downward trend, reaching
some of the lowest levels in over thirty years. Inflation declined to single
digits from 14.2% in 2008 to 8.5% in 2010 (World Bank, 2010). Lending
rates have declined from an average of 24.3% in 2008 to 20.92 in 2010
(World Bank, 2010). The exchange rates have also improved over the
same period. The Paper Converter Ltd. intends to take advantage of these
positive economic gains in order to return of investments.

Zambia has fully embraced free-market economic policies and is in this

regard one of the most liberalised economies, not only in the sub region,
but in Africa as a whole. Zambia has no foreign exchange controls and is
one of the few countries in the region that allows investors to repatriate
100% of their net profits (Mascarenhas B., 1992).

The current global economic crisis poses a threat on the gains that
Zambia has made in improving the macro economics and business
operating environment. However, in line with the global economic
slowdown, commodity prices are expected to remain significantly weak,
which will in turn present a challenge to economic growth in resource
based economies such as Zambia. Paper Converter Ltd. shall continuously
monitor the global economic environment and assess its impact on the
Zambian economy and where necessary, its strategies shall be revised to
take into account of the changing environment.

While acknowledging that Zambia’s economic indices have been improving

over the last few years, further improvements will give the country an
even greater capacity for the ease by which business is transacted.

4.3 Legal Environment:

The operations of the foreign invest i.e. Paper converter ltd. are governed
by the Zambia Development Agency Act No. 11 of 2006, which is the
principal law governing investments in Zambia (Mascarenhas B., 1992).
However, there are many other laws that affect investors, exporters and
MNEs which either hinder or assist Paper Converter Ltd. in achieving its
strategic objectives.
The paper Converter Ltd. will ensure harmonization of all laws relating to
promotion and facilitation of trade and investment. These include, among
others Income Tax Act, VAT Act, Customs and Excise Act, Immigration
and Deportation Act, Citizen Economic Empowerment Act, Competition Act
and other legislation. Consequently the harmonization process will lead to
the amendment of the Paper Converters Ltd. Act.

5. Impact of culture on organization:

Culture is the sum total of the beliefs, rules, techniques, institutions, and
artefacts that characterize human populations (Kets De Vries M. and Miller
D., 1986). Culture consists of the learned patterns of behaviour common
to members of a given society -the unique lifestyle of a particular group of
people (Deshpande R. and Webster F., 1989).

Hofstede’s favourite definition of culture is "precisely that its essence is

collective mental programming: it is that part of our conditioning that we
share with other members of our nation, region, or group but not with
members of other nations, regions, or groups" (O’Reilly C., Chatman J.
and Caldwell D.F., 1991). As it can be seen there is no commonly
accepted language to describe such complex thing as a culture.
Statements about national character have often been based on
impressions only. To avoid such statements Hofstede proposed four
different criteria, called dimensions, for describing national cultures
(Hofstede G.H., 1980). They are largely independent of each other:

• Individualism versus collectivism

• Power distance
• Masculinity versus femininity
• Uncertainty avoidance.

The four dimensions developed by Hofstede will be used as representing

of culture for analysing the proposed paper company.
6. Cultural deference between Zambia and United Kingdom (UK):
We'll conclude this section by reviewing how the Zambia and United
Kingdom (UK) ranked on Hofstede's four dimensions and considering
working culture in Zambia.

6.1 Individualism (IDV):

The fundamental issue addressed by this dimension is the degree of
interdependence a society maintains among its members (Lumpkin G.T.
and Dess G.G., 1996).

At a score of 35 in Hofstede scale (GEERT HOFSTEDE, 2012), Zambia is a

collectivist culture, “we” defined, which means that in this country people
from birth onwards are integrated into the strong, cohesive in-group
(especially represented by the extended family; including uncles, aunts,
grandparents and cousins) which continues protecting its members in
exchange for loyalty. This is an important aspect in the Zambian working
environment, where for instance an older and powerful member of a
family is expected to “help” a younger nephew to be hired for a job in his
own company.

From UK point of view, which is Individualistic culture (IDV score 89) this
perceived as nepotism (= negative perception) but for Zambia is a normal
behaviour.

6.2 Power distance (PDI):

Power distance is defined as the extent to which the less powerful
members of institutions and organisations within a country expect and
accept that power is distributed unequally.

At 60 Zambia (GEERT HOFSTEDE, 2012) belongs to the higher side of

PDI. In companies there is one boss who takes complete responsibility.
People accept a hierarchical order in which everybody has a place and
which needs no further justification. Hierarchy in an organization is seen
as reflecting inherent inequalities, centralization is popular, subordinates
expect to be told what to do and the ideal boss is a benevolent autocrat.

At 35 UK (GEERT HOFSTEDE, 2012) sits with the lower rankings of PDI

represent a society in a belief that people should be treated in some way
as equals, independent, hierarchy for convenience only, equal rights,
superiors accessible, coaching leader, management facilitates and
empowers. Power is decentralized and managers count on the experience
of their team members. Employees expect to be consulted. Control is
disliked and attitude towards managers are informal and on first name
basis. Communication is direct and participative.

6.3 Masculinity / Femininity (MAS)

The fundamental issue here is what motivates people, wanting to be the
best (masculine) or liking what you do (feminine).

Zambia scores 40 (GEERT HOFSTEDE, 2012) on this dimension and is thus

considered a feminine society. In feminine countries the focus is on
“working in order to live” (Al-Khalifa, K.N. and Aspinwall, E.M., 2000),
managers strive for consensus, people value equality, solidarity and
quality in their working lives. Conflicts are resolved by compromise and
negotiation (Carmeli, A., 2005). Incentives such as free time and
flexibility are favoured. Focus is on well-being, status is not shown. An
effective manager is a supportive one, and decision making is achieved
through involvement.

At 66 UK (GEERT HOFSTEDE, 2012) is a masculine society – highly

success oriented and driven. In comparison to feminine cultures such as
Zambia, people in the UK live in order to work and draw a lot of self-
esteem from their tasks. Managers are expected to be decisive and
assertive and have a clear performance ambition (Damanpour, F., 1996).

6.4 Uncertainty avoidance (UAI):

The extent to which the members of a culture feel threatened by
ambiguous or unknown situations and have created beliefs and
institutions that try to avoid these is reflected in the UAI score (Child, J.,
1973).

The Zambia scores 50 and thus becomes a fairly pragmatic culture in

terms of uncertainty avoidance. There is an emotional need for rules
(even if the rules never seem to work) time is money, people have an
inner urge to be busy and work hard, precision and punctuality are the
norm, innovation may be resisted (Kimberly, J.R. and Evanisko, M.J.,
1981), security is an important element in individual motivation (Howard,
L., 1988). At 35 the UK has a low score on uncertainty avoidance. In work
terms this results in planning that is not detail oriented – the end goal will
be clear (due to high MAS) but the detail of how we get there will be light
and the actual process fluid and flexible to emerging and changing
environment. Planning horizons will also be shorter. Ideas are important,
being imaginative is appreciated.

7. Management deference between Zambia and UK regarding

Culture:

Fons Trompenaar built on Hofstede’s work by expanding the framework

for stereotyping and comparing different national cultures and by focusing
more on the management implications of cultural differences.

The key to understanding this mapping approach is to identify where each

country or culture is positioned relative to others on one or more of these
dimensions. Relative positioning gives insights into the kinds of conflicts,
misunderstandings, and organizational and management problems that
are likely to arise when individuals, groups or firms from these countries
interact in any of the ways described above.

The seven dimensions developed by Fons Trompenaar will be used as

representing of culture for this paper purpose.
 7.1 Achievement vs. Ascription

In an achievement culture people are accorded status based on how well

they perform their functions. High achievers are given status in
achievement-oriented countries including United Kingdom. Achievers must
continue to prove their worth, as status is accorded based on their
actions.

In an ascription culture, status is attributed based on who or what a

person is. This is based on age, gender and social connections including
Zambia.

7.2 Individualism vs. Communitarianism

People make their own decisions and achieve success alone in highly
individualistic countries including United Kingdom (Ahmed, P., 1998).
Emphasis is on personal responsibility and decision-making, and
negotiations are made on the spot.

Communitarianism is a culture like Zambia that places the community

before the individual. Success is achieved in groups, decisions are referred
to committees and groups jointly assume responsibilities.

7.3 Internal vs. External

In an internalistic culture like the UK, people believe that what happens to
them is their own doing.

Zambia has an external culture in which the environment shapes their

destiny. Because they don’t believe they are in full control of their
destinies, often externalistic people adapt to external circumstances.

7.4 Neutral vs. Emotional

As a neutral culture the United Kingdom, emotions are held in check.

People don’t show their feelings.
In an emotional culture including Zambia, feelings are expressed naturally
and openly. People smile a great deal, talk loudly when excited and greet
each other with enthusiasm.

7.5 Specific vs. Diffuse

In what is called a specific culture, individuals are open to sharing a large

public space with others and a small private space they guard closely and
share with only friends and associates. Specific cultures like the United
Kingdom show a strong separation between work and private life.
Invitations to public spaces are common.

A diffuse culture features similarly sized public and private spaces. Like
most introverts, diffuse culture people guard both spaces carefully,
because entry into public space also affords entry into private space.
Zambia is an example of diffuse cultures where work and private life are
closely linked but intensely protected.

7.6 Time Orientation

In sequential cultures like the United Kingdom, people tend to do one

activity at a time. Appointments are strictly kept, with a strong preference
for following plans.

In synchronous cultures like Zambia, people usually do more than one

activity at a time. Appointments are approximate, subject to change at
any moment.

7.7 Universalism vs. Particularism

Universalistic countries including The United Kingdom focus more on

formal rules than relationships. Nations characterized by high universalism
believe that their ideas and practices can be applied worldwide without
modification.

Particularistic countries place more emphasis on relationships than rules.

Particularistic peoples believe that circumstances dictate how ideas and
practices are applied. Therefore, ideas and practices cannot be applied the
same everywhere.

9. Recommendations:
Paper Converter as a Multinational Corporations will develop an strategy
basis of the understanding of each culture and positioned relative to
others on one or more of Fons Trompenaar dimension for its UK office and
Zambia office. And redesign the organizational structure to optimize the
strategy’s changes to work, making changes in the firm’s tasks and
relationships and designating authority, responsibility, lines of
communication, geographic dispersal of units.

To overcome the barriers to the culture building process which

includes widespread resistance and fear, people may talk about the need
to change the culture, but acting on it will be threatening, Business
culture is not changed through technology; it requires an individualized
approach with processes that are right for the company.

Paper Converter can develop the paramount goal for culture

building which is necessary to improved performance – for individuals and
the business enterprise; reinforce ethical standards – at all levels of the
organization; build flexibility into the culture and create widespread
worker empowerment.

Develop a Staffing Philosophy for Multinational Operations using an

ethnocentric staffing approach. And also help employees to understand,
how their work ties into their values and beliefs; and provide clear
instructions, processes, and procedures.

Paper Converter can introduce Cross-Cultural Training to its

employees of both countries. This could be Culture assimilators, which
expose trainees to the kinds of situations they are likely to encounter that
are critical to successful interaction, language training or even field
experiences – exposure to people from other cultures within the trainee’s
own country.
 Paper Converter can Developing a Global Management Cadre by
developing its managers skill about how to manage wide range of staff
from deferent cultural background, train them to understand situations
from the perspective of local employees and business peoples.

Paper Converter also can also develop global management teams

which are collections of managers from both countries who must rely on
group collaboration if each member is to experience the optimum of
success and goal achievement.

Paper Converter can introduce Virtual Transnational Teams whose

members interact through computer-mediated communication systems,
are linked together both office in Zambia and UK across time, space, and
national boundaries by conducting meetings and exchanging information
via the Internet.

Working within Local Labor Relations by participation of labor in the affairs

of the firm, especially as this affects performance and well-being. The role
and impact of unions in the relationship and must introduce specific
human resource policies in terms of recruitment, training, and
compensation.

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