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Management and Leadership styles being interrelated concepts are not the similar. Management Style is the ways of making decisions and relating to subordinates, and is closely linked with personality. According to Yukl (2002), The Leadership Styles are more focus on "traits, behavior, influence, interaction patterns, role relationships, and occupation of an administrative position (â€¦) is defined as the process of influencing others to understand and agree about what needs to be done and how it can be done effectively, and the process of facilitating individual and collective efforts to accomplish the shared objectives". Management is more related to Decision Making and Leadership with motivating people, but they are related, indeed, leadership makes part of managers' functions. Such functions are: Planing, Organizing, Staffing, Controlling and Leading.
Management Styles can be classified into 5 major categories:
1. Autocratic managers are in complete control of their organizations and make all or nearly all of the major management decisions.
2. Bureaucratic managers act much like autocrats, but derive authority from corporate management, organizational rules and regulations, and past practices. Bureaucratic managers implement decisions often made by others in a way that is generally autocratic.
3. Authoritarian managers make all of the decisions, although they also solicit and use input from other managers to reach their final decisions.
4. Democratic managers involve others in their deliberations and arrive at decisions through majority rule.
5. Participative managers let lower-level managers and employees make most of the major decisions. These managers function largely as facilitators. (Trask, K., Rice, R., Anchors, S., & Lilieholm, R. 2009)
The last Categories can apply to Leadership styles too, but those would be describe it in order to explain ways of persuade and motivate, and Managerial Attitudes. In this case, in the academic field have been identified 3 major categories: 1. Authoritarian or autocratic 2. Participative or democratic 3. Delegative or Free Reign. And not only the last three, a leader can be characterized as, task-oriented or human-oriented, depending on his inclinations in the ways of leading. It is important to underline, that interpersonal communication, is a core element, when it comes to leadership skills.
Both, Management and Leadership Styles show personality of the leader, and are influenced by the environment and the cultural background. That is why, when it comes to cross-national differences issues, there is wide debate about the flexibility of the categories and how those approaches applied to real life, are effective or not depending on the context, and also, how make a leader effective in motivating employees and obtain expected outcomes.
1. Main similarities and differences of Japanese and Korean management styles.
- Importance to Market Share
- Long term value Maximization - Optimization
- Close relationship with suppliers: LT commitments, close cooperation
- Top Managing: Important Participation of Workers and Middle managers
- Consensus building and group loyalty as Principles
- Coexist in group
- Scan of environment: Both customers and competitors
- Flexible Manufacturing
- Corporate values as guidance
- Importance to Market Share
- Life time employment: workers tend to change jobs more freely
- Top Managing: Authoritarian, Centralized decision making
- Not emphasize group elements like group loyalty and consensus
- Individualistic and Hierarchical
- Managing Style: Nepotism, companies manage by the family members of founders
- Scan of environment: Monitoring rivals
"Korean firms are more "Japanese than the Japanese" in their pursuit of Market Share"
Japan and Korea have strong connections in culture, due to the past this nations share together, since Korea was actually a Japan colony back in 1910, some culture aspects are shared in their roots. Korea tends to follow Japanese Models that even Japanese already have passed and leaved, sharing finally so similar ways in the manufacturing sector and in the Internationalization policies and manners of incursion.
2. Explain the phenomenon of convergence in terms of management styles. What are the forces or factors pushing for convergence?
These two nations converge (share similarities) thanks to 2 forces:
- Firm size as measured by sales: Growth
- Globalization as measured by export ration: Internationalization
These two factors reduce the difference, being globalization/Internationalization the stronger of the last two.
The Convergence is about the Organizational characteristic, that compared across nations, are increasingly free from the particularities of specific cultures, and this convergence was found more in regional level than in a worldwide model. That outcome can be explained because: 1. Increasing managerial sophistication of the Korean firms as they grow and/or internationalize, is done by imitating the best practices of competitors, which grows similarity with its Japanese neighbors. And 2. The Isomorphic character of organizations, that helps them adapt inconsistent environmental demand, by creating a substructure in order to deal with the problem. So, Korean firms have capacity to adapt management to meet international competition requirements. Thus, Japan and Korea have to face similar challenges in the international environment.
Forces of international competition made both nations converge, but domestic factors, like cultural dimensions and level of development, make them to have certain consistent differences.
Watch Management Styles:
Oshagbemi, T. (2008). The impact of personal and organisational variables on the leadership styles of managers. International Journal of Human Resource Management, 19(10), 1896-1910. doi:10.1080/09585190802324130.
Trask, K., Rice, R., Anchors, S., & Lilieholm, R. (2009). Management styles of lumber mill managers in the northern United States. Forest Products Journal, 59(3), 29-34. Retrieved from Business Source Complete database.
Keeffe, M., Darling, J., & Natesan, N. (2008). Effective 360Â° Management Enhancement: The Role of Style in Developing A Leadership Team. Organization Development Journal, 26(2), 89-107. Retrieved from Business Source Complete database.
Getz, I. (2009). Liberating Leadership: HOW THE INITIATIVE-FREEING RADICAL ORGANIZATIONAL FORM HAS BEEN SUCCESSFULLY ADOPTED. California Management Review, 51(4), 32-58. Retrieved from Business Source Complete database.
Lee Jangho, Roehl Thomas, Choe Soonkyoo, 2000, What Makes Management Style Similar and Distinct Across Borders? Growth, Experience and Culture in Korean and Japanese Firms, Journal of International Business Stuides, 31, 4: 631- 652
Ekaterini, G. (2010). The Impact of Leadership Styles on Four Variables of Executives Workforce.International Journal of Business & Management, 5(6), 3-16. Retrieved from Business Source Complete database.
De Vries, R., Bakker-Pieper, A., & Oostenveld, W. (2010). Leadership = Communication? The Relations of Leaders' Communication Styles with Leadership Styles, Knowledge Sharing and Leadership Outcomes.Journal of Business & Psychology, 25(3), 367-380. doi:10.1007/s10869-009-9140-2.
Elizabeth B. Bolton 2007, Leadership Styles and Leadership Change in Human and Community
Standly J. Jadwinski, 2006, Leadership style for incident Command
Decision Making + Ethical Behavior and International Business
"A company's value is just the sum
of the decisions it makes and executes"
Decision Making, simply defined as a mental process of selecting the course of action among several exposed alternatives, has been a focus on strategy about five decades. Noorderhaven (1995) defines it as "the process of selection of and commitment to a purpose or plan of action". This process is becoming more vital to the everyday function of the organization, and the Decisions have to be made in an increasingly complex structure and turbulent world dynamic. No matter how complex this process turned, it is mandatory, being the concept that enables the organization to plan for the future while assessing the present through utilizing a number of systematic tools such as brainstorming, affinity diagramming, force-field analysis, flow charting, planning matrix, unilateral decision making, consultative decision making, voting decision making, and consensus decision making (Akdere, 2009)
Decision making is summated to 2 defining factors: 1. Complexity and 2. Time Presure. Complexity refers to the number and interdependencies of different components that exist in any decision-making process. And Time play a role when the clock is ticking, particularly when stress comes into the picture, sports are a good example for this. As DM is seen as a process, applied in every possible field, it is sensible to be adapt as is needed, that why we can find several models, created in the academic area. Those are models depending on how much de Decision Maker face the Complexity and Time pressure levels: Rational Model, Incremental Model, Boundedly-rational Model, Garbage can model, Delphi Method, Nominal Group Method, and The Environmental scanning method. There is another Method, frequently use, the Management science method. It uses sequential decision-making steps in a clear and precise way (procedure): 1) Define the problem. 2 ) Identify alternatives. 3) Develop some criteria. 4) Evaluate alternatives 5) Choose an alternative. 6) Implement the decision. 7) Analyze the results.
This Matrix graphically explain when to choose a method depending on the Complexity and the time pressure to take de Decision:
Rahman, N., & de Feis, G. (2009). Strategic decision-making: models and methods in the face of complexity and time pressure.
One important issue at DM, that is quiet sensible due to the multicultural differences, is the Ethics Reasoning when making decisions. It is stated that culture background may affect ethics perceptions. Thus, depending on cultural character, an individual can differ in his sensitive to ethical perception in different kind of situations. Cultural differences make people recognize an ethical dilemma depending on "the cognitive conception of what is good or right".The Global Business environment faces a great challenge: Balance standardized policies with appropriate consideration of norms in diverse cultural context.
Case of Ehitcal DM
Ethics in international business: multinational approaches to child labor
The Case focuses on explaining the corporate codes of ethics in Child Labor Area, are use to enforce the treatment of this issue in the Strategic International Human Resource Management. This case paper studies how 50 multinationals adopt "Universal Ethical Norms". This analysis attempt to show the adopting process of the norm and the ethical dilemmas that show up in the road, due to the diversity of the context were the case is presented (multicultural character of the companies)
The principal dilemmas were presented, for every context, in profitability and business wealth fare implications. As seen in the next table (see the table at Page 51: http://wase.urz.uni-magdeburg.de/evans/Journal%20Library/Ethical%20Management%20and%20Trust/Ethics%20and%20Child%20Labour.pdf)
This study concluded that a limited number of multinationals, indicated in the case material in this article, have adopted an active policy with explicit codes and policies, while others follow with rather general statements. External pressure, either on the industry as a whole or on individual companies, has sometimes played an important role in this regard. Clear examples are Nike concerning labor conditions from the early 1990s and Shell, forced to overhaul its overall ethical and environmental positioning following Nigeria and the Brent Spar.
Wath: DM BP Petroleum Spill (Parody), Importance of DM
Wacht: Explaining Ethics, Tangled?
Fox, M., Tost, L., & Wade-Benzoni, K. (2010). The Legacy Motive: A Catalyst for Sustainable Decision Making in Organizations. Business Ethics Quarterly, 20(2), 153-185. Retrieved from Business Source Complete database.
Blenko, M., Mankins, M., & Rogers, P. (2010). The Decision-Driven Organization. (cover story). Harvard Business Review, 88(6), 54-62. Retrieved from Business Source Complete database.
(2010). How we do it: Three executives reflect on strategic decision making. (cover story). McKinsey Quarterly, (2), 46-57. Retrieved from Business Source Complete database.
Akdere, M., & Altman, B. (2009). An Organization Development Framework in Decision Making: Implications for Practice. Organization Development Journal, 27(4), 47-56. Retrieved from Business Source Complete database.
Rahman, N., & de Feis, G. (2009). Strategic decision-making: models and methods in the face of complexity and time pressure. Journal of General Management, 35(2), 43-59. Retrieved from Business Source Complete database.
Burciu, A., & Hapenciuc, C. (2010). Non-Rational Thinking in the Decision Making Process. Proceedings of the European Conference on Intellectual Capital, 152-160. Retrieved from Business Source Complete database.
Amber Levanon Seligson and Laurie Choi, 2006 Ethics Resource Center, Critical Elements of an Organizational Ethical Culture
Salvador, R., & Folger, R. (2009). Business Ethics and the Brain. Business Ethics Quarterly, 19(1), 1-31. Retrieved from Business Source Complete database.
Organizational Communication + Virtual Teams
Communications is inherent of human behavior, and no matter how frequently this word is use, get to a particular conception that exactly defined it is quite a hard job. Then, in the social field, Communication is defined as an important key of the social structure. Many scholars take communication as the "act of transmitting information from one person to another" and see it as a working definition. Due to the human evolution and the development of technological tools, the communication has to be seen from 2 dimensions: 1. The Interpersonal communication, and 2. The Technological communication. Being the first one a society core, since it help o the building and the maintenance of relationships. The dynamic of communication is structured by 4 key elements: 1. The Communicator, 2. The perceiver, 3. The perceptual screens and 3. The message, all those elements are continuously intervening in the interpersonal communication process. Other important elements to have in account are the channels of communication, the fields of experience of the communicating parts, the noise, and the feedback. There is other kind of classification, important in matter of analyzing the exercise of communication: defining if we are talking of Verbal Communication or Non Verbal Communication. One concerning issue in the studies of this field is the communicators and the perceivers' backgrounds, that determines the dynamic, the quality and the effectiveness of this process. The interpretation that the communicator gives to the receiver's feedback or response is also an important element to have in consideration when determining the communication process.
The Communication, as being important part of human behavior, it is also for the organizations by default. Some defined communication attitudes can show features of the type of communicator or listener that people are. If the person is open, empathetic with others, persuasive, or if he is able to keep people around informed. Communication, being a natural process, is sensible of subjectivity and therefore, creation of barriers and preconceptions, so, there are concepts that define how the process can be effective and successful, such as clarity when communicating, understanding and having feedback.
Due to the Technology advances, there is another important dimension in communication: Technological. This one appears one technologic tools show the benefits of their use, like reduction of cost, no barriers in space, saving time, among others. A very good example to show this dynamic that came up with globalization and an outrageous development in the human world is Virtual Teams concept. This tendency was born in the mid 90's, when the team work models are exported and there is a clear need of avoiding bureaucracy, reduce time and improving service. A Virtual Team is a "group of geographically and/or organizationally dispersed coworkers assembled using a combination of information and communication technologies for accomplishing and organizational task" (Kuruppuarachchi, 2009), and it is known for improving productivity, reduce cost, flexible working hours, and having a cross-cultural character. But what sounds like benefits also can turn in a drawback, that is why, some experts advice to mix some face-to-face characteristics, like meet before start working, and then mitigating the negative effects of VTs and take a real advantage of this model.
If InterContinental were a soundâ€¦what would it be?
Positioning a brand through sound, an ambitious project from InterContinental present more challenges than advantages and disadvantages itself. First implication: Totally new proposal of how to create a bond with the client. This brings several issues to the scenario, being a global brand with 160 properties worldwide; the main concerning is their diverse audience, the level of subjectivity that may create preconceptions that InterContinental will have to face (cultural issues, values, believes, backgrounds that determine perception) and how to tell the same story to all of them, touching the adequate senses. And the last one, comes with another serious implication, how to manage a sensorial experience that stimulate the right memories? One that makes every listener to remember InterContinental?. Dealing with the emotional impact that a soundtrack can cause, more difficult, due to the little research made for supporting studies of how music is actually processed in the brain.
Another important implication is the process of creating the sound itself. The coordination of managers, employees and all kind of shareholders was a total challenge for the companies involved in the project. Putting together the ideas of which are the core values of InterContinental and allowing every individual of the company make part of the process, is a first exhausting task, but as was showed in the case, with real positive outcomes, since it help to know how employees and other companies working with InterContinental actually perceive the company.
How to measure the effectiveness of the strategy, and make it quantifiable data? Even if it is perceived as an intangible asset, getting the feedback and the results of the impact is an important challenge too.
Finally, making the strategy fits with the global requirements of differentiation in order to remain in time and in the clients mind, and recognizing that the project is not isolated from the external influences.
VT, new field, fresh ideas: http://www.youtube.com/watch?v=TbOu5PJ66P4
Perceptions! : http://www.youtube.com/watch?v=GEPjpHfL4Y0&feature=related
Communications: Process and Leadership, Cooperative Extension Service, Iowa State University
A. Winbow, International Seminar on Maritime English, 20 to 22 March 2002, The importance of effective communication Maritime Faculty, Istanbul Technical University, Istanbul, Turkey
Jeffrey Froyd, Effective Interpersonal/Intrateam Communication
Merrill E. Warkentin, Lutfus Sayeed, Ross Hightower, 1997, Virtual Teams versus Face-to-Face Teams:An Exploratory Study of a Web-based Conference System
Politha R. Kuruppuarachchi, 2009, Virtual Team Concepts in Projects: A Case Study, Project Management Journal, Vol 40, No. 2, 19-23
Mohammed Shahedul Quader , A CRITICAL ANALYSIS OF HIGH PERFORMING TEAMS: A CASE STUDY BASED ON THE BRITISH TELECOMMUNICATION, Journal of Services Research, Volume 8, Number 2 (October 2008-March 2009)
Richard D. Arvey, Ph.D. "Why Face-to-Face Business Meetings Matter" Business School, National University of Singapore
Gergana Todorova, WORKING ALONE OR TOGETHER? INDIVIDUAL MOTIVATION, GROUP IDENTIFICATION AND THE DEVELOPMENT OF TMS Tepper School of Business, Carnegie Mellon University
Anne Powell, Gabriele Piccoli, Blake Ives, Virtual Teams: A Review of Current Literature and
Directions for Future Research, The DATA BASE for Advances in Information Systems - Winter 2004 (Vol. 35, No. 1)
Steve W.J. Kozlowski and Daniel R. Ilgen, 2006, Enhancing the Effectiveness of Work Groups and Teams, Michigan State University
Luis L. Martins, Lucy L. Gilson and M. Travis Maynard, 2004, Virtual Teams: What Do We Know and Where Do We Go From Here? Journal of Management
domingo 5 de septiembre de 2010
Personality, perception and attribution + Attitudes and Values
Individual, most little unit of humanity, his interaction with the others forming then the society itself and the factors that defines his behavior, make us remember the Chiken - egg dilemma, What was first?. Well, Ask everybody (cause I did) and they will tell "the individual off course" PING!!! Wrong answer. Even if we don't have absolute true, through the times, studies have proved that the whole individual concept is constantly influenced for a set of factors, internal and external, that define personality and help us make this construction, and making individual have x or y attitudes towards certain situations. Then, Behavior is a result of interaction, active individual and personal differences (Nelson, Quick, and Campbell. 2010), that concept is call interactional psychology, and it refers to the mental construction providing creation of personality. The last concepts, plus determinants as environment and heredity, lead to define Individual's characteristics and even influence his behavior. Generally, In and Outside factors together providing individual the source for constructing personality.
Different studies have made an attempt to explain how personality has being formed and what kind of personalities exist, generalizing in order to compare what characterize the diverse personalities at some important levels. The Trait Theory of Gordon Allport (considered the first psychologist in deal with personality), is one of the earliest theories about attempting to describe personality, this idea stated "that the traits makes behavior consistent and that a trait is still there even if there is no one around to see it". Then, Frued shows up in the time line with his psychodynamic theory, underlining the influence of the uncurious in individual's behavior. From the earliest to the Integrative Approach (that talks about the interaction between the individual's characteristics and the situational variables), defining factors that construct personality (pshycologic and genetic, Humanistic and Scientific) result in numerous perspectives and debates, but this field continue being source of study, more directed to psychologist disciplines.
"We see the things not as they are, but as we are" - H.M. Tomlinson.
After the study of the personality, it is important to define the results of personality's interactions within organizations, and how individuals' behaviors influence organization itself and viceversa. The interaction of an individual with others, in certain context, result in issues of academic concern, such as esteem, monitoring, and other ones, influencing the individual from out to inside. Also, the interaction in an environment and, most of the times, with other individuals, raises an important sensible issue: The Perception, "How the individual views and interprets the world". All the theories about perception aim to the idea that our believes, values and views of reality make a preconception of how we see reality, so the creation of a third world, independent from what the another one thinks and what I think is necessary for generate understanding, but not consensus. Then, as individuals' personality is important to be considered in organizations, so are the perceptions, widely affected by personality. Perceiving take us then to the Attribution Theory: referring about "How people explains things", determinate for evaluating how individuals perceive performance in general, and how they think the organization and the individuals in It perceive the one of his own. In which level a job can satisfied an individual and what is he/she looking for at working in an A company? Those questions can be answered through observing how the individual identifies himself with an organization.
This term, may not be part public domain, but it can be easily seen every day. It refers at which level a person is able to trust and have a certain degree of expectations of somebody's accomplishments and performance, and how this expectations will make indeed that the other person achieve what was purposed and use that perceived potential.
"The person believed in, being believed, becomes the person whom they are perceived to be" - Mark Machaalani
This theory strongly lies in the concept of perception. Being perception great part of the behavior of individuals within an organization, the application of the concept, may fit in several complex situations that appear in the every day relationships between individuals in the organization, and how it influence the performance of tasks. A very specific situation where it can be possibly applied, is in the one where the companies require make operation across borders, and be in touch with other many cultures. Being subjected to cultural differences, not only the ones from the culture, but the ones from the organizations itself, presents challenges to join projects get to be actually successful. Using Pygmalion effect theory may significantly influence the behavior and performance of an individual's organization, and raise positive outputs for the members involved in a cross cultural context. Every one, being leader in a project, has to seek for give the best and take out best from their workmates. In the real situation, interactions between individuals and organizations of different cultures generates stress, even more when one of the parts think that its options are the right ones.
The problem here comes from the predicament of a leader, being persuasive, or losing fight against tendencies different from the ones of his one. One big challenge of this theory is not only of how motivate workmates, but most important, how to make a leader have high expectations and be uncharged of pursuing high performance, understanding the context in which he/she is moving in, being disposal to accept differences and mistakes from others.
A company trying to get in touch with personal values of its employees : http://www.youtube.com/watch?v=is7Rdk1hQgM
M. Houston, Psychology , BPS Backwell Personality, Chapter 14
Attribution Theory http://www.as.wvu.edu/~sbb/comm221/chapters/attrib.htm
Ohtsuka K. & Hyam Petra, Internal and External Attribution of success and
Failure in a gambling and non-gambling situation
domingo 5 de septiembre de 2010
Organisational Behavior + National and Organisational Culture
The title of this section, calls for topic that is certainly complex. As we hear the word behavior, we immediately think of the human one for default, and this is not for free. The individual, smallest part of our society is the one who inspire lots academic research to define and try to explain why things happen, and creating models for make phenomenon a little bit less uncertain. Thus, several kind of sciences have intervened in studies of this field, from the smallest to de biggest units that make part of it, Psychology, Sociology, Engineering, Anthropology, Management and even Medicine, have made their inputs to the topic through the time.
The Concept of Organizational Behavior, make us realize how wide the results of individuals' interactions within certain environment, as mentioned in the book Organizational Behavior: Science, The Real World and You "Organizational behavior is individual behavior and group dynamics in organizations". And the Book "UNDERSTANDING AND MANAGING ORGANIZATIONAL BEHAVIOR", they go from up to down in their definition, getting into the core of the concept: An organization is defined as a collection of people who work together to achieve a wide variety of goals. Organizational behavior is defined as the actions and attitudes of people in organizations. Then they mention exactly what make this concept so complex: â€¦the field of organizational behavior covers the body of knowledge derived from these actions and attitudes. The important thing to know about this field, is how important it is to define this complexity in order to help managers understand their organizations, "identifies problems, determine the best ways to correct them, and establish whether the changes would make a significant difference".
Even though, recognizing that Organizations are units and have their limits that make them different from others, the study of how Organizational Behavior works does not stops in there, it is highly complex not only because all the individual worlds that up an organization, but for the interaction that those ones have with external world and those other external factors that make influence this behavior. Over time, the organizations tend to develop characteristics that can differentiate them from other organizations. Structures can be similar, but the activities, goals, the internal interactions, the ways of coordinate, differ from one to another, and all this points start defining specific organizations, becoming patterns of behavior, or a culture. This introduces us to the Organizational Culture concept which refers to the norms and goals of a group. Culture, another wide definition is known as "shared values, understandings, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations (â€¦)subconsciously guide and control certain norms of behavior" (Deresky 2008). But in this case, the Culture can be more specifically defined as the assumptions, beliefs and resultant behaviors leaders invent or discover to solve problems in the external and internal environment and which they teach new members as the correct way of perceiving, thinking and acting to solving problems (Shein, 1990). As the Organization is interacting continuously with an external environment, unconditionally needs of de development of this identity, that permits not only the internal integration of its members, but also help the organization to fit and adapt to the external environment. The last assumption makes the whole Organization dynamic, face with a lot of important challenges: 1. Being internally consistent and 2 .Adapting to Globalization and Diversity in a highly Competitive environment.
Corporate Culture is necessary, change it: Mandatory!
The Organizations, as groups of individuals following a common organizational goal, have daily interactions, which give as results certain ways of behaviors and performance. Those daily interactions tend to become patterns, models of do the activities, noticeable or not for the individuals, they start to create a community with rules and customs beyond the established ones. This starts with the early imposition of rules, from the moment you become part of the organization, totally necessary for make individuals an actual part of those that goes in the same flow to lead in the same river. That is why the managers have to establish a Corporate Culture and its principals, and not only made them compulsory, but also watch that those are run all the way through the business. Having clear the values and beliefs, and make the whole organization internalized them, is sort of a key to a successful business. This can be also seen as a match of resources (Knowledge and labor) that make the business suit with the environment and comply the objectives. It is almost mandatory settle down the rules then, but it is spontaneous that the written rules and the culture generated from those help to reach the goal. Thus, a group that generates certain behaviors and customs under the same rules, then to characterize their organizations tend to define what makes it different as a group. Modifications of those attitudes are in order of fulfilling the same demands, for example from the clients, and there is voluntary progressive change of the organizations to fit with the requirements of the environment. Those changes are nothing but complex, time-consuming and stressful. Why?, A group of employees working on the same rules during long periods of time, following some established goals, create their ways of doing thing, and get use to this generated tendencies of perform their activities, that requires time, so does adopting new ways of following the organization goals, and even more if organization is talking about change the direction of those goals. We can conclude, that is there is a Corporate Culture that is accompanied by the individuals' culture that follow it, and that is possible to change but it actually takes a lot of work, knowing that making the organization to follow a Corporate Culture is already a complex activity, but the willing to make the change comes from the willing to fit in the environment and then, to remain in time. Totally difficult, but totally required!
Business implications of Cultural Difference:
1. Collectivism in Latinamerica:
The employees of a transportation company have not received their salary as it was established in their contracts, and the same happened with the promised benefits. These employees were providing their services to an North American Company (settled in Latinamerica, only with Northamerican employees), and the Contracting Company argues that, the client is the one that is not complying their part of the agreement. As there is a huge contract in the middle, it is harmful for both parts to stop working together, If the drivers stop providing their services to the American Company, they may lose a lot of their merchandise and money, putting and risk the finances of the company, hence, the wealth fare of its employees. But if the drives stop transporting, they may stop to receive the already little payment that they earn. So, they time the parts start to confront, There is always the complete fleet of drivers involved directly in the negotiation and the American Company, only sends two representatives for the interest of the whole company, and their other direct employees that might get affected in their interest, are not present in the negotiations.
2 . Mascunilty vs Femininity
A company from UK sends a representative to a company in Sweden. The UK representative visits the company in Sweden, with the purpose of establish strategic relationships in order to make a future project together. The UK representative is received by the representative of the Sweden company, who teach him the whole company structure, and emphasis the importance of the company for take decision that match the wealth fare of every employee working for them. While they were talking about the benefits that both companies can obtain if they get involved in the shared project, the representative of the Sweden Company, realizes that the other representative is putting more effort in obtain rewards and benefits for its own professional career than for its whole company.
Watch Costco Case Study: http://www.youtube.com/watch?v=8Xn9-6F7b0o