Illustrative Cases To Demonstrate The Issues Business Essay

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In a global market adopting new culture is very common. Socio cultural literacy is very important to know the behavior of the local market in the various regions. The phrase 'culture' signifies values, beliefs, morals, customs, habits and knowledge acquired by the people living in a society. Organizational culture is the acquisition of values, norms, beliefs, attitudes, expectations etc. by the employees of an organization. thus, it is a set of attitudes, opinions, beliefs, values, morals etc. acquired by the people in particular organization and these are also peculiar to the particular organization. Planning, organization and motivation are the determinants of the organizational culture. Organizational culture contains effective performance of leadership, communication, commitment and motivation. This thing leads to good organizational performance. To know the organization system is to understand the culture of the organization.

Nowadays, organization culture improved enormously. And also study of integration, differentiation and fragmentation are emphasizing new innovative characteristics of the qualitative and quantitative research. Evaluation of organizational change is very important for defining the organizational culture. Most of the researchers agreed that organizations culture always embedded with the activities of the organization. Integration of organizational activities effectively gives consistency, value and destiny to the culture of the organization. Supervision and controls are the key elements of the organization culture. It changes the environment as positively or negatively. Strong organizational culture survives the best performance of the organization.

Cultural distance between joint venture partners is frequently cited as a key factor for failure of poor performance. On the other hand the diverse national cultures are not the only cultural aspects involved. It is significant to examine both the national and organizational cultures of both partners.


The Main object of this study is to identify the factors that underlie cultural differences, to categorize joint ventures locally and internationally and to find out solution for the international joint venture failure (cultural distance) and to sort out the solutions to the problem.


According to Nasbitt and Aberdame (1996), change in lifestyles will affect the globe. Technological changes and new economical systems develop the global organizations. Change in moral activities, change in Technology and change in environment will change the outlook of the organization to face the international competition. (Kanter(1983), Pascale (1990)).

Hall and Hall (1990) has defined organizational culture simply reflects the whole communications of the organization which provides the innovative solution to the organizational problems. Transmit the clear messages to the management and workers, those improves the system of organizational culture.

Organizational culture provides the greatest development in the efficiency and financial performance. Financial performance measures ROS (Return on sales) and ROI (Return on Investment). But culture measures behavior of the various companies. It is proved in the provocation research of Denison (1998) culture and behavioural performances to forecast the effectiveness of the business organization in the long period. Kotter and Heskett (1992) have found there is a positive relationship between the culture and economical background. Kemp and Dwyer (2001) have found strategic performance of organizational culture has improved the involvement and efficiency of the workers and the management. Foremost aim of the managers is to motive the culture management. When they adapt the proper updated culture will solve the problems of employees in all level.

New dynamic change in business environment promotes business goals with the satisfaction of the customers. Schein (1992) has stated that organization culture involves values and beliefs to overcome the business problems in the organization. According to Siehl and Martin (1981) a set of basic value systems are the identical components of the organization to stand in the long duration.

Organizational culture includes tradition of person. An expression of this tradition is considered symbols and signs. (Geertz, 1973). There are different type of cultural forms have been used by the different level of organization efficiencies. In accordance with the perspective of management is attainment of goal, and it reflects the managerial production, survival, profitability and innovativeness. Culture introduces the new environment among the public popularly which produces new trend in the organization. Analyzing and evaluating are helping to attain goal efficiently. (Barly, Meyer and gash 1988)

Martin, Frost and O'Neil combined published the organizational culture and the different ways traditional approach strongly reflects cyclical, which controls academic and intellectual frame workers. Organization culture portrays the fundamental behavior of the worker and managers. But organizational managers disagree the theory of organization, methodology, political ideology and epistemology. Generally integration focuses homogeneity. It consists expressions of culture, members agreement, shaped culture of leadership quality and organizational changes. On the other hand, differentiation includes inconsistent culture expressions, disagreement and not shaped culture of leadership quality. In fragmentation, culture focuses opacity and ambiguity of the organization. It has bureaucratic and hierarchical structure and avoiding confrontations.

International Joint Venture

It provides fertile ground in the strategic partnership. Organizational culture is more significant than national culture in the form of joint ventures. Organization culture is the managerial tool of the joint ventures. Asian organization culture, emphasis hierarchy orientation. Western Europe follows Eiffel tower culture in the organization. Indian organizational culture represents family type organizations. To realize the objective of the organization requisites the free flow of communication. Every organization has a unique culture. They are, Common language and terminology: Only the members of a particular organization may be familiar with certain common language and terms peculiar to their work situation. They would have developed these terms in view of their several years of work experience. A stranger or an outsider may not understand the real meaning of these terms. The norms of work developed by the members of the organization are reflective of its culture. If one need not be more loyal than the king is the work philosophy of a particular organization, do anything to satisfy the customer may be the philosophy of another. Every organization has certain priorities. For example, if one organization gives priority to maximum customer satisfaction another may give priority to product quality or prompt after sale service. The employees in every organization have certain expectations. For example, in certain organizations the practice may be to consult the existing employees in the matter of appointing new employees or in buying new machinery and so on. On the other hand, there are organizations where the employees may be indifferent to who is appointed. They may not have an expectation that the management should consult them on such matters.

In the case of strong culture, the core values are intensely held and widely shared by all the members of an organization. The attitude of the employees in such an organization will be positive and the rate of labour turnover will be low. The employees are convinced about the actions of the management and they full faith in the latter. In an organization having weak culture, the core values are not intensely held and widely shared by all the members of the organization. The employees in such an organization, obviously, do not possess a positive attitude. The rate of labour turnover is also likely to be high.

In Authoritarian culture, the leader of the organization exercises full control over the subordinates who have to strictly carry out the orders and instructions of the former. It is based on the assumption that the leader knows what in good for the organization and would always strive for its interests. Participative is based on the belief that the subordinates are motivated to work better when they are involved in the process of decision-making. It ensures that the leader does not thrust his ideas on the employees.

Organizational culture is considerably influenced by the culture of the land ( National Culture). For example, the business establishments in India reflect Indian culture in their activities, e.g. holidays declared, festivals celebrated etc. The founders of every organization have certain values and beliefs. The people employed by them must work with them to realize and sustain the goals and values for which the organization itself has been established. A business organization, for example, may be established with the sole objective of selling essential consumer goods of good quality at the lowest price. Likewise, the founders of another business may focus on maximum customer satisfaction. The employees of such an organization, therefore, are expected to give up top priority to attain and sustain maximum customer satisfaction. It may be mentioned here that certain educational institutions are started by persons belonging to the minority community with the main objective of serving the people belonging to their community.

Certain critical incidents that may arise in an organization may also pave way for the creation of a certain culture. A very high rate of labour turnover owing to low pay, for example, may force the management to evolve a sensible pay policy. It may be mentioned here that most of the self-financing colleges that were collecting high fees from the students had to cut down the same drastically owing to poor student enrolment. The indifferent attitude of a particular management may promote employee indiscipline. Such a trend may prove to be detrimental to the management has to take the initiative to set right things by evolving certain tough measures to discipline the employees.


1) Negotiation ambiguity of Suzuki - Maruthi dispute

Maruthi Udyog Limited (India) and Suzuki Motor Corporation (Japan) had jointly collaborated for the past sixteen years by joint venture. For the appointment of managing director both the companies disputed, due to clear less contract, dissimilar goals, bad tactics, improper arrangements of shares and other factors. In this critical and difficult situation, joint venture not terminated. But this problem has raised entirely in the automobile industry. Maruti Udyog Limited and Suzuki Motor Corporation had signed the joint venture contract on 2nd, October 1982. This contract involves agreements of commercial, management and license oriented. Both the companies tied up to manufacture people's car with modernized equipments and fuel efficient, and also sets clear cut background. Initially this agreement for the joint venture programmed for ten years. Maruti Udyog Limited has served as a majority owner and 74 per cent capital investment. Suzuki Motor Corporation has served as a minority owner of 26 percent capital investment initially, but it can be raised by the performance. After six years, ownerships are restricted in the capital base, Suzuki Motor Corporation has increased their ownership up to 40 per cent and also Suzuki ownership had been raised up to 50 per cent, that means they equally invested in the capital, due to the cause of India's New Economic Policy, 1991. By that time Suzuki wants to send the dividends to their home country, that caused to create problems of balance of payment (BOP) for the difference of money value of Rupee and Yen.

In the contract of the joint venture Suzuki had agreed to provide technology and design for preparing Maruthi 800cc which has four seated and four door passenger car in Dec, 1983. It was performed well for the several years only. Suzuki's advanced technology has created monopoly in the Indian economy. But Maruthi 800cc had picked up 80 per cent market in the automobile industry in India. It was very tough to journey the partnership in 1996, because fourteen automobile industries has entered in that tenure. Suzuki wants to raise their equity shares. But Indian government had rejected that proposal. Indian government has believed the Suzuki Motor Corporation was attempted to buy Maruthi Udyog Limited. In this view, trust of interpartership has completely lost. By that time, India desires to control the joint venture against Suzuki Motor Corporation. For the first activity, Indian government has appointed new managing director as Mr.Bhaskarudu in 27th August, 1997 for Maruthi Udyog Limited, just intimated that information to Suzuki Motor Corporation before half an hour of the board meeting. Suzuki Motor Corporation has violated and rejected that appointment and even argued that he was not competent or not suite for the job.

In 1992, the agreed agreement clearly states that companies can appoint managing director and chairman alternatively for five years duration. If one partner appoints chairman in the same power the another can appoint managing director. Even though Suzuki Motor Corporation has appointed Mr. Bhargava as a managing director in 1991, but Indian government delayed the appointment of Chairman up to 1996. So, Mr. Bhargava has acted both Chairman and Managing Director for the five years. For this connection, Suzuki Motor Corporation has taken immediate step to seek Judgment through Indian Court of Law.

2) Organizational culture of Toyota

Traditional companies having degree of communication problems always. In this regard Toyota has restored their reputation. It always collects compliances daily through society. It follows management principles gently. It gives training through indoor and outdoor. Senior executives and workers have been collecting information from employees in the working spot itself. It broadcast the troubles. Answers and queries are under two categories favourable answers and unfavourable, which is conveyed to the executives management. It updates human resource management continuously. It is also provides on the job training and off the job training to the employees to give exact awareness among the employees. It arranges meeting to maintain the code of conduct and gives guidelines to the employees. It promotes ethics side by side. It is using rank for employees performance. Employees are stimulated to give compliance and measure in privacy. It adapts own provisions and revised the system at global level. It organizes excursion programmes to the employees to control pressure. This company permits to get help from outside of tax organization. Its workers management generates one million ideas year by year. It has used fourteen principles of management for regular and continuous improvements. Steven Spear and H.Kent Bowen has identified the aspects of Toyota's organizational culture is helps to renew and adapt year by year in Harvard Business review. Just in time is used by the Toyota makers. In the working process, processes are modified, controlled and improved by the workers. Toyota's production system compares their sales and profit to the other car makers. Toyota's production system always upgrading and changing the methods regularly. It fully observes hierarchical organizational culture. This system is watching employees properly and gives importance to the customers satisfaction. Toyota solves problems efficiently. It has provided good manufacturing environment and qualified product design.

3) Best Organizational culture of Hyundai

Hyundai group's new organizational culture is four T's approach, which stands for 1. Trust,2. Talent, 3.Tenacity and 4.Togetherness. It has launched in 2008. In the practical way, first T stands for Trust which is consist of respect, responsibility, transparency, fairness and consideration; second T - stands for Talent which is consist of creativity, leadership, passion and expertise; third T stands for Tenacity which consist of challenge, field management, implementation and innovation; Forth T stands for Togetherness which has team work, communication, cooperation and harmony.


Once a certain culture is created, the next step is sustain it, i.e., to make it remain. For sustaining culture, the following recommendations are useful: For the sustenance of organizational culture, the top management has to play a major part. It shall reiterate its values, beliefs and goals by advising the middle and supervisory level managers and through them the employees of the entire organization. The moment the top management discovers any deviation from the basic norms of the origination, it shall take appropriate action to set right things. In the matter of sustaining organizational culture, the following areas require periodical review by the top management. Adherence by the employees to the basic values of the organization. superior subordinate relationships. Work commitment and involvement, Employee attendance, Punctuality, Union activities, Labor turnover, Customer service etc.

Preparing the new employees to adapt As the new employees are not familiar with the organization's culture, they must be prepared to adapt. Such an adoption process is known as socialization. The core values of an organization are reflected in certain rituals performed as a matter of routine. Daily Morning Prayer, weekly family dinner, monthly picnic, annual award presentation function etc. are a few examples of such rituals. The performance of these rituals helps the employees appreciate the organization's culture.

Certain symbols used in the organization do reflect its culture. Inscribing the logo of the organization in all the stationery items provided for the staff, elegant uniforms for different categories of employees, reserved car park of executives, luxurious office furnishings etc. are examples of physical symbols. These physical symbols become important tools of transmitting and sustaining the culture of the organization.

Over a period of time every organization develops certain unique terms to describe the staff, customers, suppliers, equipment, work situations and so on. It may take some time for a new employee to become familiar with these terms that are used effortlessly by the existing employees. By learning the language of the organization, the members convey their acceptance of the organizational culture.

Slogans can also be useful in making the not only the employees but also those who deal with the organization understand and appreciate its culture. "Customer satisfaction is our Motto", "Efforts never fail", "Every customer is important to us", etc. are a few slogans that symbols what the organization stands for.


The world in which the organization exists constantly changes. Market conditions, economic policies of the government, technology etc. do change with the passage of time. Every organization, therefore, has to adapt itself to such changes failing which it cannot survive. Many organizations in the past were showing resistance to the introduction of computers. Employees were also not willing to accept the change. But now we find the use of computers everywhere.

Owing to the trend in the industry, an organization that has been using the indigenous technology may have to collaborate with foreign companies (Hindustan Motors and Premier auto are collaborating with foreign car companies). A change in the mode of business may result in a change in the very culture of the organization. Now the question is how to bring about a change in the organizational culture. For this purpose, the following approaches may be used: The reward system can be changed to support the cultural change. personnel who have the will to introduce the change may be appointed. changing the chief executive officer of the organization can bring about a total change in the organizational culture as he/she plays a major role in determining the manner in which things are done. It is also necessary to convince every member of the organization of the need for the change so that they may give their support.