Ethnic And Organisational Culture Business Essay

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The culture is the word that explains different way of living, thinking, beliefs, way of expressing feeling etc. There are so many cultures in this world and every culture has its own values and traditions. Culture shows the internal and external environment of that place it belongs. It is a central part of every society. It shows the behaviour, belief, traditions, rituals, dressing and language of any individual. The culture has strong impact on the way of living on every individual. It is something that person learns from the family and surroundings. It can not be by birth, it is learn by the person itself.

As this is known that culture is an essential part of the society so it is backbone of an organisation as well. Organisational culture shows the personality of that business. It shows how powerful that business is. The Culture is involved of the assumption, values, norms and tangible signs of organization members and their behaviours. Culture is actually difficult term to explain in words but everyone knows it when they sense it. For example: culture is different of the large for profit firm than the hospital or a university. It can be observe by the arrangement of the organisation. Culture has strong impact on leadership style. Leadership style is inextricably related to the culture of the business will be the style of leadership by senior management.

Multicultural organisation is the organisation where different cultural/ethnic group works together. A multicultural organisation always has advantages and disadvantages both. But these days' multicultural organisations are very common. It is totally different experience to be a leader of multicultural organisation than a leader of an organisation where employees from same culture.

Organisational culture and ethnic culture:

An organisation culture is values, standard, traditions and ways of doing things that influence the way the organisational members work. It is determined by the way it reacts to the problem of survival in external and internal environment. Each firm marked patterns of member's behaviours and values, which is together may be said to form an "organisation culture". Many aspects of the culture will have developed naturally, but it can also be created by the senior management of the organisation. When the company is created it becomes its own world and its culture becomes the foundation on which the firm will exist in the business world. People's actions in an organisations are not always their own but also influenced by the other people of that organisation.

Organisational culture is a specific collection of values, traditions, norms, experiences and principle that are shared by an organisation or a group of people they belongs to.

Ethnic culture is the combination of people from different places, age group, gender, belief, traditions and attitudes. It's manmade and comes from environment. An ethnic culture is recognizing by the group of people that sharing same traditions, values etc. This mutual heritage may be based upon reputed common origin, history, relationship, religion, language, nationality or physical appearance. An ethnic group can be differentiating from another ethnic group on the bases of religion, values, language etc.

Example: Indian culture is the ethnic culture that we are following from childhood and countdown (business firm working with) culture is the organisation culture that I need to follow as I am working there.

Difference between organisation and ethnic culture: it is easy to differentiate organisation culture than ethnic culture. But it is easy to differentiate between these two.

Creation and flexibility: Foundation of the organisation culture is depend upon the owner or management of that organisation and it can be change according to the situation but ethnic culture is from the ancestors and it can not be change by the individual or the group of people.

Duration: The time period of these two is totally different as organisation culture can not that long those ethnic cultures have.

Attachment: Group of people is more attached to their ethnic culture than organisation culture. Employees or management can be attached from organisation culture, but only for their working duration, not more than that. If they leave that job and start with another organisation they follow their culture but according to ethnic it can not be possible.

Effects: Organisational culture has less effect than ethnic culture on people.

2. (A) Cultural perception influence leadership:

Cultural perceptions are varying to person to person and organisation to organisation. The Cultural perception is known to the way of a cultural community understands a cultural issue.

Cultural perception in describing the way a cultural community perceives issues from one to another within the community itself.

Cultural perception in describing the way a cultural community perceives issues from without ancestors. They adopted from out side of the one.

For Example: category cultural communities according to how they perceive dedication, motivation and a sense of commitment to one's work and company.

The cultural perception is generally expressed by means of a number of variables (dimension) found to be shared by a number of cultural communities at various degrees.

Geertt Hofstede cultural dimension:

Individualism (IDV): this describes the way people express themselves and their relationship with others.

Individuals look after themselves and than immediate family, priority over individual needs and goals. people belong to a collectivism that takes care of them, commitment to a few in‐groups make use of a strong influence on behaviour, large number on specific values, preference over shared needs and goals.

Uncertainty Avoidance Index (UAI): shows the level at which extent people feel uncomfortable in formless and surprising situations.

Uncertainty avoidance: low degree of tolerance for doubtfully, strong desire for compromise, surprising behaviour measured risky, expressing of emotions, lower inspiration for success, and disapproval of competition. Uncertainty avoidance: high degree of tolerance for sudden, acceptance of strange behaviour as a curiosity, tendency for risk, high motivation.

Power Distance Index (PDI): shows the level of power and status are distributed among the members of a cultural community.

Power distance, determined in the hands of a few members, is a feature of society, emphasis on power, acceptance of employer power, close supervision, accepting orders, and stress on group unity. Less Power distance is equally distributed, emphasis on legal and skilled power, preference for consultation, interdependence between employer‐employee, emphasis on respect, questioning orders.

Masculinity vs. Femininity: Masculinity is difference between male and female roles, value placed on power and violence, strong motivation for achievement, work is central to one's life, little contact with the opposite sex. Femininity is where overlapping of male and female roles, importance on interpersonal relationships and concern for the weak.

Long term orientation vs. short term orientation: whether person or organisation creating long term plans or short terms plans or actions.

(B). Own approach: cultural perception is depend on person to person, country to country and organisation to organisation. For example: if any Chinese company's manager, who wishes to start his business in New Zealand, he needs to follow the same culture as kiwi follows. He can not follow his Chinese culture in his organisation. So that organisation will adopt culture from kiwi culture or outside environment. An individual approach may differ up to an extent to company behaviour.

We do believe that certain things should go in certain conditions but that's an individual perception say a company has to take into consideration many factor including social, cultural, political and technical factor as well.

Example 2- An Indian manager may have different perception than a kiwi manager. Both countries are culturally diverse and both have different cultural perceptions. Any organisation has a set of norms and values which cannot be breached over and again. But, for an individual person they can make and break rules and regulation according to their own wish and needs. As countdown manager (Pat Broad) can change organisation values and standards according to the situation but it is matters for me as I am working there and I has different perceptions and now I need to learn kiwi cultural perceptions or according to the organisation (countdown).

Multicultural organisation:

Multicultural organisation is the organisation where combination of people are work together those come from different cultures. They are varied in culture, age, gender, race, religion, but they all work together under one roof in same organisation culture. Due to globalisation it is really common now to work and live in different culture. The organisation leader needs to learn the skills to working in multicultural environment. It is important for business success and motivation of employees.

Advantages: there are many advantages of working or being a leader of multicultural organisation. Such as:

Developing new skills: it is vary helpful in developing new skills as working or supervising people from different culture. It increases understanding of different culture and how to motivate them. As a leader of multicultural organisation, it is essential that leader should have quality of motivation and control over the management or employees from different culture.

Learning new culture and traditions: its open the door to learn new culture and tradition. The leader will be more understanding of different culture and traditions.

Adaption of new culture: improves the quality of adjustment with new people and new culture. Leader will be more skilled and will be more powerful in the employees. Multicultural organisation is helping in creating a leader with more quality and skills.

Creative problem solving: working with different culture creative problem solving quality in leaders. When leader of multicultural organisation deals with other cultures people and it helps in learning new skills of problem solving.

Learning new language: being a leader of multicultural organisation gives the opportunity to learn new language and that helps in understanding of employees from different culture. When leader understands, employees will be more loyal, honest and hard working.

When some thing has advantages and it will have disadvantages as well. As working in multicultural organisation has positive effect on leadership but it has negative side as well. It is really hard to working in multicultural organisation as leader.


Communication and understanding problem: A communication barrier is biggest disadvantage of the working in multicultural organisation. It is really hard to communicate with different language people. As they do not understand each other and create communication barrier between them.

Increased conflicts: when communication barrier accord it generate conflicts. When two persons do not understand each other it gives birth to a new conflict that is horrific for the success of the business and leadership.

Difficult to manage: it is difficult to manage with a group of people that all are come from different culture and have different vales and traditions. Because every culture have different values to interact with different people.

Less social interaction: employees have less social interaction with each other as they come from different culture and they all behave differently to each other. It is really difficult to leader handle and mange with this type of situation. Leader will hard to find them close with each other and motivate them.

More interpersonal problems: it create more interpersonal problem as they think that leader will more helpful with same cultural background person. It generates misunderstanding between employees and their leader.

Conclusion: culture is the world that can not to explain in world but can be express in feeling, behaviour, values and language. It has strong impact on leadership and behaviour of every individual or group. Every society is based on a culture that describes its external and internal environment. Ethnic and organisational culture both has strong effects on leadership. It influences the leadership style of the individual. Multicultural organisation has advantages and disadvantages as coin has both sides that need to show. So positive always comes with negative.