Organizational Culture

Topics: Developing country, Developed country, Human Development Index Pages: 5 (1632 words) Published: August 20, 2010
1. Introduction
With the rapid development of economy and advancement of technology, people from different parts of the world have been gradually forming closer connections with each other. With more and more connection and communication, different cultural backgrounds stand out as a key issue. It is the same case when referring to the development of organizations and companies. Multinational corporations are playing an essential role in the global economic development and more and more companies are building their branch companies in other countries. Therefore, the organizational cultures of other countries become a significant topic that the managers are supposed to consider seriously, as the organizational cultures are not the same with that in their own country. Due to the better communication and more learning from each other, the organizational cultures are becoming more alike, even though they still remain there uniqueness. In this essay, the definition and importance of the organizational culture will be introduced. Moreover, the reason that the different organizational cultures are becoming more alike will be explained.

2. Illustration of organizational culture
Organizational culture, mainly discussed about in the field of business management, is usually related to the characteristics of the organization, which is rather differing from those of other countries. Thus, organizational culture can be used as a tool of distinguishing the different organizations. In addition, different organizations become themselves according to their differing organizational cultures to a great extent. The reason why the organizational cultures are different in differing organizations is based on the formation of organizational cultures. Organizational culture is formed with habits, beliefs, values, experiences and rules of the people in the organization, which is supposed to reflect the purpose of the organization and the standards or principles of behaviors of the staff in the organization. (Lee, 2004)

3. Importance of organizational culture
As more corporations are building branch companies in other countries, the managers of these multinational companies have already realized the significance of the organizational culture. The managers respect the different organizational cultures in the countries, where they built their branch companies, and do not force their own organizational cultures on the branch companies that mostly employ local people, who have their own and differing cultural beliefs and values. (Lund, 2003) The reason why the managers of the multinational companies consider the organizational culture so seriously is attributed to the organizational culture’s importance and influence in the organizations. The organizational culture is an obvious and direct way of recognizing the theme and goal of the company. The stakeholders and the customers are able to choose companies based on the appropriateness and correctness of the companies’ organizational cultures. Therefore, the effectiveness of the organizational culture is essential to the companies. Hence, the managers of the multinational companies have to consider differences of the organizational cultures in the countries where they built the branch companies, as they have a significant impact on the effectives and appropriateness of the organizational cultures of the companies. (Buch, 2001) On the other hand, if the managers assume that there is no difference between their own organizational cultures and the cultures in the other countries that they built the branch companies, the inappropriate organizational cultures will not bring in positive effect and profits for the companies, they will probably make damage to the companies’ future development and global reputation.

4.0 Reason that the different organizational cultures are becoming more alike The discussion of the development of the different organizational cultures has been a hot topic all over the...
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