Introduction to National Culture:

A national culture is a set of values, attributes, beliefs and norms shared by a majority of the inhabitants of a country. These become an embodied in the laws and regulations of the society, as well as in the generally accepted norms of the countrys social system. People in society learn what to notice and what not to notice. How to behave with each other and how to handle responsibility. In most countries, a dominant national culture exists; however, even the most homogenous nation such as a Japan contains subculture with distinct characteristics. In the United States, powerful subculture exists among many groups.

CULTURE OF INDIA
The term culture refers to a state of intellectual development or manners. The social and political forces that influence the growth of a human being are defined as culture. The culture of India has been shaped by its long history, unique geography, diverse demographics and the absorption of customs, traditions and ideas from some of its neighbors as well as by preserving its ancient heritages, which were formed during the Indus valley civilization and evolved further during the Vedic age, rise and decline of Buddhism. Indias great diversity of religious practices, languages, customs and traditions are examples of this unique co-mingling over the past five millennium. The various religions and traditions of India that were created by these amalgamations have influenced other parts of the world too. Indian culture treats guests as god and serves them and takes care of them as if they are a part and parcel of the family itself. Even though we do not have anything to eat, the guests are never left hungry and are always looked after by the members of the Family. Elders and the respect for elders is a major components in Indian culture. Elders are the driving force for any family and hence the love and respect for elders comes from within and is not artificial. An individual takes blessings from his elders by touching their feet. Elders drill and pass on the Indian culture within us as we grow. Respect one another is another lesson that is taught from Indian culture. All people are alike and respecting one another is ones duty. In foreign countries the relation between the boss and the

employee is like a master and slave and is purely monetary whereas in Indian culture the relation between the boss and the employee is more like homely relations unlike foreign countries. Helpful nature is another striking feature in our Indian culture. Right from our early days of childhood we are taught to help one another in need of help and distress. if not monetary then atleast in kind or non-monetary ways. Indian culture tells us to multiply us to multiply and distribute joy and happiness and share sadness and pain. It tells us that by all this we can develop co-operation and better living amongst ourselves and subsequently make this world a better place to live in.

FEATURES OF INDIAN CULTURE

1. Religion- India is the one most religiously diverse nation in world, with some of the most

deeply religious societies and cultures. Religion still plays a central and definitive role in the life of most of its people.
2. Society- Society or human society is the manner or condition in which the members of the

community live together for their mutual benefit. By extension, society denotes the people of a region or country. Sometimes even the world, taken as a whole. According to Eugene M. Makar, the traditional Indian culture is defined by relatively strict social hierarchy. Among developing countries, India has low level of occupational and geographic mobility. People choose same occupations as their parents and rarely move geographically in the society.
3. Family-India for ages has had a prevailing tradition of the joint family system. Its a

system under which even extended members of a family like ones parents, children, the childrens spouses and their offspring, etc., live together. The elder-most, usually the male member is the head in the joint Indian family system who makes all important decisions and rules, whereas other family members abide by it.
4. Animals- The varied and rich wildlife of India has had a profound impact on the regions

popular culture. Indias wildlife has been the subject of the numerous other tales and fables such as the panchatantra and the jataka tales in Hinduism; cow is regarded as a symbol

of ahimsa. Mother goddess and bringer of good fortune and wealth. For this reason, cow is revered in Hindu culture and feeding a cow is seen as an act of worship. The slaughtering of cows is banned throughout India.
5. Namaste - Namaste, namaskar, namaskaram is a common spoken greeting or salutation in

Indian subcontinent. Namaskar is considered a slightly more formal version than Namaste but both express deep respect. In Indian and Nepali culture, the word is spoken at the beginning of written or verbal communication. However, the same hand folded gesture is made usually wordlessly upon departure. In yoga, Namaste is said to mean the light is me honors the light in you. As spoken by both the yoga instructor and yoga student.
6. Festival- India, being a multi-culture and multi-religion society, celebrates holiday and

festival of various religions. The three national holidays in India, Independence Day, republic day and Gandhi Jayanti are celebrated with zeal and enthusiasm across India. In addition, many states and regions have local festival depending on prevalent religious and linguistic demographics.

UNDERSTANDING ORGANIZATIONAL CULTURE

What Is Organizational Culture?
Organizational culture refers to a system of shared assumptions, values, and beliefs that show employees what is appropriate and inappropriate behavior. These values have a strong influence on employee behavior as well as organizational performance. Culture is by and large invisible to individuals. Even though it affects all employee behaviors, thinking, and behavioral patterns, individuals tend to become more aware of their organizations culture when they have the opportunity to compare it to other organizations. If you have worked in multiple organizations, you can attest to this. Maybe the first organization you worked was a place where employees dressed formally. It was completely inappropriate to question your boss in a meeting; such behaviors would only be acceptable in private. It was important to check your e-mail at night as well as during weekends or else you would face questions on Monday about where you

were and whether you were sick. Contrast this company to a second organization where employees dress more casually. You are encouraged to raise issues and question your boss or peers, even in front of clients. What is more important is not to maintain impressions but to arrive at the best solution to any problem. It is widely known that family life is very important, so it is acceptable to leave work a bit early to go to a family event. Additionally, you are not expected to do work at night or over the weekends unless there is a deadline. These two hypothetical organizations illustrate that organizations have different cultures, and culture dictates what is right and what is acceptable behavior as well as what is wrong and unacceptable.

DIMENSIONS OF CULTURE:
Which values characterize an organizations culture? Even though culture may not be immediately observable, identifying a set of values that might be used to describe an organizations culture helps us identify, measure, and manage culture more effectively. For this purpose, several researchers have proposed various culture typologies. One typology that has received a lot of research attention is the organizational culture profile (OCP), in which culture is represented by seven distinct values. We will describe the OCP as well as two additional dimensions of organizational culture that are not represented in that framework but are important dimensions to consider: service culture and safety culture. Figure 18.4. Dimensions of Organizational Culture Profile (OCP)

Innovative Cultures
According to the OCP framework, companies that have innovative cultures are flexible and adaptable, and experiment with new ideas. These companies are characterized by a flat hierarchy in which titles and other status distinctions tend to be downplayed. For example, W. L. Gore & Associates Inc. is a company with innovative products such as GORE-TEX (the breathable fabric that is windproof and waterproof), Glide dental floss, and Elixir guitar strings, earning the company the distinction of being elected as the most innovative company in the United States by Fast Company magazine in 2004. W. L. Gore consistently manages to innovate and capture the majority of market share in a wide variety of industries, in large part due to its unique culture. In this company, employees do not have bosses in the traditional sense, and risk taking is encouraged by celebrating failures as well as successes. Companies such as W. L. Gore, Genentech Inc., and Google also encourage their employees to take risks by allowing engineers to devote 20% of their time to projects of their own choosing.

Aggressive Cultures
Companies with aggressive cultures value competitiveness and outperforming competitors: By emphasizing this, they may fall short in the area of corporate social responsibility. For example, Microsoft Corporation is often identified as a company with an aggressive culture. The company has faced a number of antitrust lawsuits and disputes with competitors over the years. In aggressive companies, people may use language such as We will kill our competition. In the past, Microsoft executives often made statements such as We are going to cut off Netscapes air supply.Everything they are selling; we are going to give away. Its aggressive culture is cited as a reason for getting into new legal troubles before old ones are resolved. Recently, Microsoft founder Bill Gates established the Bill & Melinda Gates foundation and is planning to devote his time to reducing poverty around the world. It will be interesting to see whether he will bring the same competitive approach to the world of philanthropy.

Outcome-Oriented Cultures
The OCP framework describes outcome-oriented cultures as those that emphasize achievement, results, and action as important values. A good example of an outcome-oriented culture may be Best Buy Co. Inc. Having a culture emphasizing sales performance, Best Buy tallies revenues and other relevant figures daily by department. Employees are trained and mentored to sell company products effectively, and they learn how much money their department made every day. In 2005, the company implemented a results oriented work environment (ROWE) program that allows employees to work anywhere and anytime; they are evaluated based on results and fulfillment of clearly outlined objectives. Outcome-oriented cultures hold employees as well as managers accountable for success and utilize systems that reward employee and group output. In these companies, it is more common to see rewards tied to performance indicators as opposed to seniority or loyalty. Companies over rewarding employee performance such as Enron Corporation and WorldCom experienced well-publicized business and ethical failures. When performance pressures lead to a culture where unethical behaviors become the norm, individuals see their peers as rivals and short-term results are rewarded; the resulting unhealthy work environment serves as a liability.

Stable Cultures
Stable cultures are predictable, rule-oriented, and bureaucratic. These organizations aim to coordinate and align individual effort for greatest levels of efficiency. When the environment is stable and certain, these cultures may help the organization be effective by providing stable and constant levels of output. These cultures prevent quick action, and as a result may be a misfit to a changing and dynamic environment. Public sector institutions may be viewed as stable cultures. In the private sector, Kraft Foods Inc. is an example of a company with centralized decision making and rule orientation that suffered as a result of the culture-environment mismatch. Its bureaucratic culture is blamed for killing good ideas in early stages and preventing the company from innovating. When the company started a change program to increase the agility of its culture, one of their first actions was to fight bureaucracy with more bureaucracy: They created the new position of VP of business process simplification, which was later eliminated.

People-Oriented Cultures
People-oriented cultures value fairness, supportiveness, and respect for individual rights. These organizations truly live the mantra that people are their greatest asset. In addition to having fair procedures and management styles, these companies create an atmosphere where work is fun and employees do not feel required to choose between work and other aspects of their lives. In these organizations, there is a greater emphasis on and expectation of treating people with respect and dignity. One study of new employees in accounting companies found that employees, on average, stayed 14 months longer in companies with people-oriented cultures. Starbucks Corporation is an example of a people-oriented culture. The company pays employees above minimum wage, offers health care and tuition reimbursement benefits to its part-time as well as full-time employees, and has creative perks such as weekly free coffee for all associates. As a result of these policies, the company benefits from a turnover rate lower than the industry average. The company is routinely ranked as one of the best places to work by Fortune magazine.

Team-Oriented Cultures
Companies with team-oriented cultures are collaborative and emphasize cooperation among employees. For example, Southwest Airlines Company facilitates a team-oriented culture by crosstraining its employees so that they are capable of helping each other when needed. The company also places emphasis on training intact work teams. Employees participate in twice daily meetings named morning overview meetings (MOM) and daily afternoon discussions (DAD) where they collaborate to understand sources of problems and determine future courses of action. In Southwests selection system, applicants who are not viewed as team players are not hired as employees. In team-oriented organizations, members tend to have more positive relationships with their coworkers and particularly with their managers.

Detail-Oriented Cultures
Organizations with detail-oriented cultures are characterized in the OCP framework as emphasizing precision and paying attention to details. Such a culture gives a competitive advantage to companies in the hospitality industry by helping them differentiate themselves from others. For example, Four Seasons Hotels Ltd. and the Ritz-Carlton Company LLC are among hotels who keep records of all customer requests, such as which newspaper the guest prefers or what type of pillow the customer uses. This information is put into a computer system and used to provide better service to returning customers. Any requests hotel employees receive, as well as overhear, might be entered into the database to serve customers better. Recent guests to Four Seasons Paris who were celebrating their 21st anniversary were greeted with a bouquet of 21 roses on their bed. Such clear attention to detail is an effective way of impressing customers and ensuring repeat visits. McDonalds Corporation is another company that specifies in detail how employees should perform their jobs by including photos of exactly how French fries and hamburgers should look when prepared properly.

Service Culture
Service culture is not one of the dimensions of OCP, but given the importance of the retail industry in the overall economy, having a service culture can make or break an organization. Some of the

organizations we have illustrated in this section, such as Nordstrom, Southwest Airlines, RitzCarlton, and Four Seasons are also famous for their service culture. In these organizations, employees are trained to serve the customer well, and cross-training is the norm. Employees are empowered to resolve customer problems in ways they see fit. Because employees with direct customer contact are in the best position to resolve any issues, employee empowerment is truly valued in these companies. For example, Umpqua Bank, operating in the northwestern United States, is known for its service culture. All employees are trained in all tasks to enable any employee to help customers when needed. Branch employees may come up with unique ways in which they serve customers better, such as opening their lobby for community events or keeping bowls full of water for customers pets. The branches feature coffee for customers, Internet kiosks, and withdrawn funds are given on a tray along with a piece of chocolate. They also reward employee service performance through bonuses and incentives. What differentiates companies with service culture from those without such a culture may be the desire to solve customer-related problems proactively. In other words, in these cultures employees are engaged in their jobs and personally invested in improving customer experience such that they identify issues and come up with solutions without necessarily being told what to do. For example, a British Airways baggage handler noticed that first-class passengers were waiting a long time for their baggage, whereas stand-by passengers often received their luggage first. Noticing this tendency, a baggage handler notified his superiors about this problem, along with the suggestion to load first-class passenger luggage last. This solution was successful in cutting down the wait time by half. Such proactive behavior on the part of employees who share company values is likely to emerge frequently in companies with a service culture.

Figure 18.6.

The growth in the number of passengers flying with Southwest Airlines from 1973 until 2007. In 2007, Southwest surpassed American Airlines as the most flown domestic airline. While price has played a role in this, their emphasis on service has been a key piece of their culture and competitive advantage.

Safety Culture
Some jobs are safety sensitive. In organizations where safety-sensitive jobs are performed, creating and maintaining a safety culture provides a competitive advantage, because the organization can reduce accidents, maintain high levels of morale and employee retention, and increase profitability by cutting workers compensation insurance costs. Some companies suffer severe consequences when they are unable to develop such a culture. For example, British Petroleum experienced an explosion in their Texas City, Texas, refinery in 2005, which led to the death of 15 workers while injuring 170. In December 2007, the company announced that it had already depleted the $1.6billion fund to be used in claims for this explosion. A safety review panel concluded that the development of a safety culture was essential to avoid such occurrences in the future. In companies that have a safety culture, there is a strong commitment to safety starting at management level and trickling down to lower levels.

Strength of Culture
A strong culture is one that is shared by organizational members. In other words, if most employees in the organization show consensus regarding the values of the company, it is possible to talk about the existence of a strong culture. A cultures content is more likely to affect the way employees think and behave when the culture in question is strong. For example, cultural values

emphasizing customer service will lead to higher quality customer service if there is widespread agreement among employees on the importance of customer service-related values. It is important to realize that a strong culture may act as an asset or liability for the organization, depending on the types of values that are shared. For example, imagine a company with a culture that is strongly outcome oriented. If this value system matches the organizational environment, the company outperforms its competitors. On the other hand, a strong outcome-oriented culture coupled with unethical behaviors and an obsession with quantitative performance indicators may be detrimental to an organizations effectiveness. An extreme example of this dysfunctional type of strong culture is Enron. A strong culture may sometimes outperform a weak culture because of the consistency of expectations. In a strong culture, members know what is expected of them, and the culture serves as an effective control mechanism on member behaviors. Research shows that strong cultures lead to more stable corporate performance in stable environments. However, in volatile environments, the advantages of culture strength disappear. One limitation of a strong culture is the difficulty of changing a strong culture. If an organization with widely shared beliefs decides to adopt a different set of values, unlearning the old values and learning the new ones will be a challenge, because employees will need to adopt new ways of thinking, behaving, and responding to critical events. For example, the Home Depot Inc. had a decentralized, autonomous culture where many business decisions were made using gut feeling while ignoring the available data. When Robert Nardelli became CEO of the company in 2000, he decided to change its culture, starting with centralizing many of the decisions that were previously left to individual stores. This initiative met with substantial resistance, and many high-level employees left during his first year. Despite getting financial results such as doubling the sales of the company, many of the changes he made were criticized. He left the company in January 2007. A strong culture may also be a liability during a merger. During mergers and acquisitions, companies inevitably experience a clash of cultures, as well as a clash of structures and operating systems. Culture clash becomes more problematic if both parties have unique and strong cultures. For example, during the merger of Daimler AG with Chrysler Motors LLC to create

DaimlerChrysler AG, the differing strong cultures of each company acted as a barrier to effective integration. Daimler had a strong engineering culture that was more hierarchical and emphasized routinely working long hours. Daimler employees were used to being part of an elite organization, evidenced by flying first class on all business trips. On the other hand, Chrysler had a sales culture where employees and managers were used to autonomy, working shorter hours, and adhering to budget limits that meant only the elite flew first class. The different ways of thinking and behaving in these two companies introduced a number of unanticipated problems during the integration process. Differences in culture may be part of the reason that, in the end, the merger didnt work out.

VISUAL ELEMENTS OF ORGANIZATIONAL CULTURE

How do you find out about a companys culture? We emphasized earlier that culture influences the way members of the organization think, behave, and interact with one another. Thus, one way of finding out about a companys culture is by observing employees or interviewing them. At the same time, culture manifests itself in some visible aspects of the organizations environment. In this section, we discuss five ways in which culture shows itself to observers and employees.

Mission Statement
A mission statement is a statement of purpose, describing who the company is and what it does. Many companies have mission statements, but they do not always reflect the companys values and its purpose. An effective mission statement is well known by employees, is transmitted to all employees starting from their first day at work, and influences employee behavior. Not all mission statements are effective, because some are written by public relations specialists and can be found in a companys Web site, but it does not affect how employees act or behave. In fact, some mission statements reflect who the company wants to be as opposed to who they actually are. If the mission statement does not affect employee behavior on a day-to-day basis, it has little usefulness as a tool for understanding the companys culture. An oft-cited example of a mission statement that had little impact on how a company operates belongs to Enron. Their missions and values statement began, As a partner in the communities in which we operate, Enron believes it has a responsibility to conduct itself according to certain basic principles. Their values

statement included such ironic declarations as We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness and arrogance dont belong here. A mission statement that is taken seriously and widely communicated may provide insights into the corporate culture. For example, the Mayo Clinics mission statement is The needs of the patient come first. This mission statement evolved from the founders who are quoted as saying, The best interest of the patient is the only interest to be considered. Mayo Clinics have a corporate culture that puts patients first. For example, no incentives are given to physicians based on the number of patients they see. Because doctors are salaried, they have no interest in retaining a patient for themselves and they refer the patient to other doctors when needed. Wal-Mart Stores Inc. may be another example of a company who lives its mission statement, and therefore its mission statement may give hints about its culture: Saving people money so they can live better. In fact, their culture emphasizes thrift and cost control in everything they do. For example, even though most CEOs of large companies in the United States have lavish salaries and showy offices, Wal-Marts CEO Michael Duke and other high-level corporate officers work out of modest offices in the companys headquarters. Figure 18.10. Visual Elements of Culture

Rituals
Figure 18.11.

Tradition is important at Wal-Mart. Sam Waltons original Waltons Five and Dime is now the Wal-Mart Visitors Center in Bentonville, Arkansas.

Rituals refer to repetitive activities within an organization that have symbolic meaning. Usually rituals have their roots in the history of a companys culture. They create camaraderie and a sense of belonging among employees. They also serve to teach employees corporate values and create identification with the organization. For example, at the cosmetics firm Mary Kay Inc., employees attend award ceremonies recognizing their top salespeople with an award of a new car traditionally a pink Cadillac. These ceremonies are conducted in large auditoriums where participants wear elaborate evening gowns and sing company songs that create emotional excitement. During this ritual, employees feel a connection to the company culture and its values, such as self-determination, will power, and enthusiasm. Another example of rituals is the Saturday morning meetings of Wal-Mart. This ritual was first created by the company founder Sam Walton, who used these meetings to discuss which products and practices were doing well and which required adjustment. He was able to use this information to make changes in Wal-Marts stores before the start of the week, which gave him a competitive advantage over rival stores who would make their adjustments based on weekly sales figures during the middle of the following week. Today, hundreds of Wal-Mart associates attend the Saturday morning meetings in the Bentonville, Arkansas, headquarters. The meetings, which run from 7:00 to 9:30 a.m., start and end with the Wal-Mart cheer; the agenda includes a discussion of weekly sales figures and merchandising

tactics. As a ritual, the meetings help maintain a small-company atmosphere, ensure employee involvement and accountability, communicate a performance orientation, and demonstrate taking quick action.

Rules and Policies

Another way in which an observer may find out about a companys culture is to examine its rules and policies. Companies create rules to determine acceptable and unacceptable behavior, and thus the rules that exist in a company will signal the type of values it has. Policies about issues such as decision making, human resources, and employee privacy reveal what the company values and emphasizes. For example, a company that has a policy such as all pricing decisions of merchandise will be made at corporate headquarters is likely to have a centralized culture that is hierarchical, as opposed to decentralized and empowering. Similarly, a company that extends benefits to both part-time and full-time employees, as well as to spouses and domestic partners, signals to employees and observers that it cares about its employees and shows concern for their well-being. By offering employees flexible work hours, sabbaticals, and telecommuting opportunities, a company may communicate its emphasis on work-life balance. The presence or absence of policies on sensitive issues such as English-only rules, bullying or unfair treatment of others, workplace surveillance, open-door policies, sexual harassment, workplace romances, and corporate social responsibility all provide pieces of the puzzle that make up a companys culture.

Physical Layout
A companys building, including the layout of employee offices and other work spaces, communicates important messages about a companys culture. The building architecture may indicate the core values of an organizations culture. For example, visitors walking into the Nike Inc. campus in Beaverton, Oregon, can witness firsthand some of the distinguishing characteristics of the companys culture. The campus is set on 74 acres and boasts an artificial lake, walking trails, soccer fields, and cutting-edge fitness centers. The campus functions as a symbol of Nikes values such as energy, physical fitness, an emphasis on quality, and a competitive orientation. In addition, at fitness centers on the Nike headquarters, only those wearing Nike shoes and apparel are allowed in. This sends a strong signal that loyalty is expected. The companys devotion to

athletes and their winning spirits is manifested in campus buildings named after famous athletes, photos of athletes hanging on the walls, and honorary statues dotting the campus. A very different tone awaits visitors to Wal-Mart headquarters, where managers have gray and windowless offices. By putting its managers in small offices and avoiding outward signs of flashiness, Wal-Mart does a good job of highlighting its values of economy. The layout of the office space also is a strong indicator of a companys culture. A company that has an open layout where high-level managers interact with employees may have a culture of team orientation and egalitarianism, whereas a company where high-level managers have their own floor may indicate a higher level of hierarchy. Microsoft employees tend to have offices with walls and a door, because the culture emphasizes solitude, concentration, and privacy. In contrast, Intel Corporation is famous for its standard cubicles, which reflect its culture of equality. The same value can also be observed in its avoidance of private and reserved parking spots. The degree to which playfulness, humor, and fun is part of a companys culture may be indicated in the office environment. For example, Jive Software boasts a colorful, modern, and comfortable office design. Their break room is equipped with a keg of beer, free snacks and sodas, an XBOX 360, and Nintendo Wii. A casual observation of their work environment sends the message that employees who work there see their work as fun.

Stories
Perhaps the most colorful and effective way in which organizations communicate their culture to new employees and organizational members is through the skillful use of stories. A story can highlight a critical event an organization faced and the collective response to it, or can emphasize a heroic effort of a single employee illustrating the companys values. The stories usually engage employee emotions and generate employee identification with the company or the heroes of the tale. A compelling story may be a key mechanism through which managers motivate employees by giving their behavior direction and energizing them toward a certain goal. Moreover, stories shared with new employees communicate the companys history, its values and priorities, and serve the purpose of creating a bond between the new employee and the organization. For example, you may already be familiar with the story of how a scientist at 3M invented Post-it notes. Arthur Fry, a 3M scientist, was using slips of paper to mark the pages of hymns in his church choir, but they kept

falling off. He remembered a super-weak adhesive that had been invented in 3Ms labs, and he coated the markers with this adhesive. Thus, the Post-it notes were born. However, marketing surveys for the interest in such a product were weak, and the distributors were not convinced that it had a market. Instead of giving up, Fry distributed samples of the small yellow sticky notes to secretaries throughout his company. Once they tried them, people loved them and asked for more. Word spread, and this led to the ultimate success of the product. As you can see, this story does a great job of describing the core values of a 3M employee: Being innovative by finding unexpected uses for objects, persevering, and being proactive in the face of negative feedback. Impact of National Culture on OB: An organizations culture may be one of its strongest assets, as well as its biggest liability. In fact, it has been argued that organizations that have a rare and hard-to-imitate organizational culture benefit from it as a competitive advantage. In a survey conducted by the management consulting firm Bain & Company in 2007, worldwide business leaders identified corporate culture as important as corporate strategy for business success. This comes as no surprise to many leaders of successful businesses, who are quick to attribute their companys success to their organizations culture. Culture, or shared values within the organization, may be related to increased performance. VALUES are an integral part of every culture. With worldview and personality, they generate behavior. Being part of a culture that shares a common core set of values creates expectations and predictability without which a culture would disintegrate and its members would lose their personal identity and sense of worth. Values tell people what is good, beneficial, important, useful, beautiful, desirable, constructive...etc. They answer the question of why people do what they do. Values help people solve common human problems for survival. Over time, they become the roots of traditions that groups of people find important in their day-to-day lives.Values are the state of individual or social standard. In addition to having implications for organizational performance, organizational culture is an effective control mechanism for dictating employee behavior. Culture is in fact a more powerful way of controlling and managing employee behaviors than organizational rules and regulations.

When problems are unique, rules tend to be less helpful. Instead, creating a culture of customer service achieves the same result by encouraging employees to think like customers, knowing that the company priorities in this case are clear: Keeping the customer happy is preferable to other concerns such as saving the cost of a refund.
Because values differ across cultures, an understanding of these differences should be helpful in explaining and predicting behavior of employees of different countries. Hofstedes Framework for assessing cultures One of the most widely referenced approaches for analyzing variations among cultures was done in the later 1970s by Geert Hofstede. He surveyed more than 116,000 IBM employees in 40 countries about their work-related values and found that managers and employees way on 5 value dimensions of national

culture.
1. Power distance: Power distance describes the degree to which people in a country accept

that power in institutions and organizations is distributed unequally. A high rating on power distance means that large inequalities of power and wealth exists and are tolerate in the culture, as in a class or caste system that discourages upward mobility of its citizens. A low power distance rating characterizes societies that stress equality and opportunity. This dimension relates to the degree of equality/inequality between people in a particular society. A country with a high Power Distance score both accepts and perpetuates inequalities between people. An example of such a society would be one that follows a caste system and in which upward mobility is very limited.

A low Power Distance indicates that a society does not emphasise differences in peoples status, power or wealth. Equality is seen as the collective aim of society and upward mobility is common. So how does this manifest in a culture or country? In a high power distance cultures the following may be observed:

Those in authority openly demonstrate their rank.

Subordinates are not given important work and expect clear guidance from above. Subordinates are expected to take the blame for things going wrong. The relationship between boss and subordinate is rarely close/personal. In a low power distance culture:

Superiors treat subordinates with respect and do not pull rank. Subordinates are entrusted with important assignments. Blame is either shared or very often accepted by the superior due to it being their responsibility to manage. Managers may often socialize with subordinates. act as individuals rather than as members of groups and believes in individuals rights above all else. Collectivism emphasizes a tight social framework in which people expect other in groups of which they are a part to look after them and protect them. This dimension focuses on the degree to which a society reinforces individual or collective achievement and interpersonal relationships.

2. Individualism versus collectivism: Individualism is the degree to which people prefer to

If a country has a high Individualism score, this indicates that individuality and individual rights are dominant. Individuals in these societies tend to form relationships with larger numbers of people, but with the relationships being weak.

A low Individualism score points to a society that is more collectivist in nature. In such countries the ties between individuals are very strong and the family is given much more weight. In such societies members lean towards collective responsibility. So how does this manifest in a culture or country? In a country that scores highly on the individualism scale the following traits are common:

A person's identity revolves around the "I". Personal goals and achievement are strived for.

It is acceptable to pursue individual goals at the expense of others. 'Individualism' is encouraged whether it be personality, clothes or music tastes. In a country that scores low on the individualism scale the following traits are common:

"We" is more important that "I". Individual's desires and aspirations should be curbed if necessary for the good of the group. The rights of the family (or for the common good) are more important. Rules provide stability, order, obedience. the culture favors traditional masculine roles such as achievements, power, and control, as opposed to viewing men and women as equals. A high masculinity rating indicates the culture has separate roles for men and women, with men dominating the society. A high femininity rating means the culture sees little differentiation between male and female roles and treats women as the equals of men in all respects.

3. Masculinity versus Femininity: Hofsteds construct of masculinity is the degree to which

This dimension pertains to the degree societies reinforce, or do not reinforce, the traditional masculine work role model of male achievement, control, and power. A high Masculinity score indicates that a country experiences a higher degree of gender differentiation. In such cultures, males tend to dominate a significant portion of the society and power structure. A low Masculinity score means a society has a lower level of differentiation and inequity between genders. In these cultures, females are treated equally to males in all aspects of the society. So how does this manifest in a culture or country? Below are some of the common traits found in countries that score low on the masculinity scale: In life the main priorities are the family, relationships and quality of life.

Conflicts should ideally be solved through negotiation. Men and women should share equal positions in society.

Below are some of the common traits found in countries that score high on the masculinity scale: Life's priorities are achievement, wealth and expansion. It is acceptable to settle conflicts through aggressive means. Women and men have different roles in society.

4. Uncertainty avoidance: The degree to which people in a country prefer structured over

unstructured situations defines their uncertainty avoidance. In cultures that high on Uncertainty avoidance people have an increase level of anxiety about uncertainty and ambiguity and use laws and controls to reduce uncertainty. Cultures low on uncertainty avoidance are more accepting of ambiguities and are less rule oriented, take more risk and more readily accept change. This dimension concerns the level of acceptance for uncertainty and ambiguity within a society. A country with a high Uncertainty Avoidance score will have a low tolerance towards uncertainty and ambiguity. As a result it is usually a very rule-orientated society and follows well defined and established laws, regulations and controls. A low Uncertainty Avoidance score points to a society that is less concerned about ambiguity and uncertainty and has more tolerance towards variety and experimentation. Such a society is less rule-orientated, readily accepts change and is willing to take risks. So how does this manifest in a culture or country? Below are some of the common traits found in countries that score highly on the uncertainty avoidance scale:

Usually countries/cultures with a long history. The population is not multicultural, i.e. homogenous. Risks, even calculated, are avoided in business. New ideas and concepts are more difficult to introduce. Some of the common traits found in countries that score low on the uncertainty avoidance scale include:

Usually a country with a young history, i.e. USA. The population is much more diverse due to waves of immigration. Risk is embraced as part of business. Innovation and pushing boundaries is encouraged.

5. Long term versus short term orientation: This is the newest edition to Hofstedes

typology. It focuses on the degree of the societys long term devotion to traditional values. People in culture with long term orientation look to the future and value thrift, persistence and tradition. In a short term orientation, people value the here and now; they accept change more readily and dont see commitments as impediments to change.

For example, Power distance is higher in Malaysia than in any other country. The United States is very individualist. In fact, its the most individualistic national of all. The United States also tends to be short term in orientation and is low in power distance. The United States is also relatively low on uncertainty and ambiguity. The United States scores relatively high on masculinity, meaning that most people emphasize traditional gender roles.

Hofstedes culture dimensions have been enormously influential on OB researches and managers. Nevertheless, his research has been criticized. First, although the data since been updated, the orginal work is more than 30 years old and was based on a single company (IBM). A lot has happened on the Soviet Union, the transformation of Central and Eastern Europe, spread of Islam throughout the world today, and the rise of China as a global power. Second, few researchers have read the details of Hofstedes methodology closely and are therefore unaware of many decisions and judgment calls he had to make. Some results are unexpected for example, Japan, which is often considered a highly collectivist nation, is considered only average on collectivism under Hofstedes dimensions. Despite this concerns, Hofstede has been one of the most widely cited social scientist , and his framework has left a lasting mark on OB.

The GLOBE Framework for assessing cultures: Began in 1933, the global leadership and organizational behavior effectiveness (GLOBE) research program is an ongoing cross-culture investigation of leadership and national culture. Using data from 825 organizations in 62 countries, the GLOBE term identified 9 dimensions on which national cultures differ, Some of these such as power distance, individualism/collectivism, uncertainty avoidance, gender differentiation, and future orientation resemble the Hofstede dimensions. The main difference in the GLOBE framework that it added dimensions, such as humane orientation (the degree to which a society rewards individuals for being altruistic, generous and kind to others) and performance orientation (the degree to which a society encourages and rewards group members for performance improvement and excellence).

IMPLICATIONS ON ORGANISATION

A Model of Societal and Organizational Cultures

As illustrated in Figure 41, culture influences organizational behavior in two ways. Employees bring their societal culture to work with them in the form of customs and language. Organizational culture, a by-product of societal culture, in turn affects the individuals values and ethics, attitudes, assumptions and expectations.

Figure 41 Cultural Influences on Organizational Behavior

Organizational culture

Personal values/ ethics Attitudes Assumption

Organization al Behaviour

Economic/technological setting Political/legal setting Ethnic background Religion

The term because drawn example,

Societal Culture Customs Language

societal culture is used here instead of national culture the boundaries of many modern nation-states were not along cultural lines. The former Soviet Union, for included 15 republics and more than 100 ethnic nationalities, many with their own distinct language.

Meanwhile, English-speaking Canadians in Vancouver are culturally closer to Americans in Seattle than to their French-speaking compatriots in Quebec. Societal culture is shaped by the various environmental factors listed in the left-hand side of Figure 41. Once inside the organizations sphere of influence, the individual is further affected by the organizations culture.

Mixing of societal and organizational cultures can produce interesting dynamics in multinational companies. Same company, same company culture, yet GEs French and American co-workers have different attitudes about time, hierarchy and communication. They are the products of different societal cultures. When managing people at work, the individuals societal culture, the organizational culture and any interaction between the two need to be taken into consideration.

CONCLUSION:
Organizational Culture around the Globe
The values, norms, and beliefs of a company may also be at least partially imposed by the national culture. When an entrepreneur establishes an organization, the values transmitted to the organization may be because of the cultural values of the founder and the overall society. If the national culture in general emphasizes competitiveness, a large number of the companies operating in this context may also be competitive. In countries emphasizing harmony and conflict resolution, a team-oriented culture may more easily take root. For example, one study comparing universities in Arab countries and Japan found that the Japanese universities were characterized by modesty and frugality, potentially reflecting elements of the Japanese culture. The study also found that the Arab universities had buildings that were designed to impress and had restricted access, which may be a reflection of the relatively high power distance of the Arab cultures. Similarly, another study found that elements of Brazilian culture such as relationships being more important than jobs, tendency toward hierarchy, and flexibility were reflected in organizational culture values such as being hierarchical and emphasizing relational networks. It is important for managers to know the relationship between national culture and company culture, because the relationship explains why it would sometimes be challenging to create the same company culture globally.

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