Concept 1.2 Levels of cultures
19 fi rm. What evolves over time in terms of ‘corporate culture’ can have as its basis the ‘original’
organisational culture, or the national/regional culture – or a combination of the two.
Th e extent of the infl uence of corporate culture is disputed among experts in the fi eld.
Some regard a clearly defi ned corporate culture as key to a (multi)national company’s success. Others consider a fl exible culture to be the key to success because it can adapt to, and respond more eff ectively to, a local/national environment.
Although it is useful to know where the countries in question lie on the dimensions of national culture when working with other cultures, there are other factors at play, particu- larly the culture of the company itself. Th is is determined not just by external cultural factors such as the national and regional cultures, but also by internal cultural factors. Th e extent of cultural control, through company goals, manuals, instructions and the presence of long-standing employees, is important.
SPOTLIGHT 1.2
Chapter 1 Determinants of culture
20
Professional culture
Th e nature of the line of business the company is in may have an important infl uence on the corporate culture as well as on the professional culture attached to key positions within the organisation. Professional culture is essentially to do with the set of values shared by people working together professionally. Schein (1996: 237) talks of three professional cul- tures in management. First, there are the ‘operators’ who are directly involved in produc- tion of goods or the provision of services. Second, there are the ‘engineers’, the people who design and monitor the technology behind the production and/or provision of services.
Th ose who share this culture tend to show a preference for solutions where systems rather
Examine the statements below, taken from the website of the Tata group – see source below – which describes the purpose and values of the Tata group.
Purpose
At the Tata group we are committed to improving the quality of life of the communities we serve.
We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.
Core values
Tata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way we do business are:
● Integrity: we must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.
● Understanding: we must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.
● Excellence: we must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.
● Unity: we must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.
● Responsibility: we must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.
Source: http://www.tata.com/aboutus/articles/inside.aspx?artid=CKdRrD5ZDV4 (extract), accessed 12/12/2012.
Questions
1. Which elements of the corporate culture of Tata group can you distinguish that relate to national culture (subsidiaries) and organisational culture (as defined by Schein)?
2. Look at another corporate website, for example Shell ( www.shell.com ). Click on ‘About Shell’, then ‘who we are’ to discover the company’s purpose and values. Then, answer the above ques- tion, but in this case for Shell.
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Conclusion
21 than people are involved. Th ird, there are the ‘executives’, the senior managers who share tacit assumptions regarding ‘the daily realities of their status and role’.
Th e question of how these professional cultures co-exist within an organisation pre- occupies many scholars. How do the executives handle the ‘operators’ and ‘engineers’? How best to manage confl ict constructively? To what extent is delegation and empowerment desirable? What styles of management are appropriate?
Culture and management
At the basis of all the cultures mentioned lies the individual’s culture. It is individuals who ultimately form the culture of an organisation. Th e values they embody as members of an organisation are formed partially through the family, social and national environment, and partially through the professional, organisational and corporate culture.
It is up to management to take into account the diversity of people in an organisation and to manage their cultural diff erences. In an international context, however, what does cross-cultural management mean?
Nancy Adler (2002: 11) gives a defi nition of what cross-cultural management is about:
Cross-cultural management explains the behavior of people in organizations around the world and shows people how to work in organizations with employees and client populations from many different cultures. Cross-cultural management describes organizational behavior within countries and cultures; compares organizational behavior across countries and cultures; and, perhaps most important, seeks to understand and improve the interaction of co-workers, managers, executives, clients, suppliers, and alliance partners from countries and cultures around the world.
From another perspective, more oriented to the management tasks than the cultural diff erences, cross-cultural management can be defi ned as follows:
The core task of cross-cultural management is to facilitate and direct synergistic action and learning at interfaces where knowledge, values and experience are transferred into multi- cultural domains of implementation.
(Holden, 2002: 59) In any case, the importance of cross-cultural management is evident in a world where all kinds of co-operation between companies in many countries is on the increase.
Whether these are mergers, takeovers, partnerships or strategic alliances, they all need to be analysed in cultural terms, not only to determine where benefi t can be gained, but also where diffi culties may be encountered when companies are working together.
Th is chapter has given a brief overview of the levels at which culture operates. Th ese will be dealt with in more detail in Chapter 2 , particularly in Concept 2.2, which examines the infl uence of national culture on organisational culture. Th e question of business culture will be addressed in Chapters 3 and 4 .
Conclusion
Chapter 1 has shown how difficult it is to give a definition of the word ‘culture’. Apart from the multitude of definitions, culture can also be considered at various levels, the deepest
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Chapter 1 Determinants of culture
22
of which, according to Edgar Schein contains ‘assumptions’. This level, according to Schein, can also be found in the culture of an organisation.
This chapter also shows that the individuals in a group form a culture that can be national, organisational or professional. This implies that cross-cultural management has to take into account all of these contexts, not only within organisations, but also in relations with companies of different countries.
Points for reflection
1. The word ‘culture’ is used in many ways, such as when people talk about ‘national cul- ture’, ‘organisational culture’, ‘political culture’ or ‘youth culture’.
In which ways do the meanings of culture differ?
2. Managing an organisation also involves managing human resources. These resources are not static: employees can move to another position, or leave an organisation, or be replaced. Ideally, any newcomers will adapt to the culture of the company or at least respect it.
Give your comments on the statement given above. Then answer the question: Can a corporate culture be managed? If so, explain what needs to be done for it to be managed. If you believe it cannot be managed, explain why.
Further reading
Schneider, S.C. and Barsoux, J.-L. (2003) Managing Across Cultures , Harlow: Pearson Education, FT Prentice Hall. This book develops understanding of how culture influences management practice and also guides teams and organisations as to how to be more effective in international business.
Theoretical foundations are linked to practical applications.
Tietze, S., Cohen, L. and Musson, G. (2003) Understanding Organizations through Language , London:
Sage. The authors’ starting point is that understanding how language works is indispensable when it comes to understanding organisational processes. They explain how language shapes social realities before showing how metaphors, narratives and discourse can give meaning to organisations. They go on to examine the connection between language and culture, particularly the issue of meaning making in different cultural contexts.
References
Adler, N.J. (2002) International Dimensions of Organizational Behavior , 4th edition, Ohio: South- Western, Thomson Learning.
Browaeys, M.-J. and Göbbels, M. (1999) ‘Impact of national business cultures on East and West joint ventures’, in Knapp, K., Kappel, B.E., Eubet Kasper, K. and Salo-Lee, L. (eds), Meeting the Intercultural Challenge , Berlin: Verlag Wissenschaft & Praxis: 243–251.
Edgar, A. and Sedgwick, P. (eds) (2002) Cultural Theory, The Key Concepts , London/New York:
Routledge.
Fleury, J. (2002) La culture , Paris: Editions Bréa.
Genelot, D. (1998) Manager dans la complexité , Paris: INSEP Editions.
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References
23 Hofstede, G. (1980) Culture’s Consequences, London: Sage.
Holden, N.J. (2002) Cross-Cultural Management , Harlow: Financial Times/Prentice Hall.
Laurent, A. (1983) ‘The cultural diversity of western conceptions of management’, International Studies of Management and Organization , 13(1–2): 75–96.
Meschi, P.-X. and Roger, A. (1994) ‘Cultural context and social effectiveness in international joint-ventures’, Management International Review , 34(3): 197–215.
Morgan, G. (1986) Images of organization , quoted by Tietze, S., Cohen, L. and Musson, G. (2003) Understanding Organizations through Language , London: Sage.
Morin, E. (1987) Penser l’Europe , Paris: Gallimard.
Ruano-Borbalan, J.-C. (2002) ‘Valeurs et cultures: allons-nous devenir post-modernes?’ in Journet, N.
(ed.), La culture , Auxerre: Sciences Humaines Editions: 335–342.
Schein, E.H. (1990) ‘Organizational culture’, American Psychologist , 42(2): 109–119.
Schein, E.H. (1996) ‘Culture: the missing concept in organization studies’, Administrative Science Quarterly , 41(2): 229–240.
Schein, E.H. (1999) The Corporate Culture Survival Guide , San Francisco, CA: Jossey-Bass.
Schein, E.H. (2004) Organizational Culture and Leadership , 3rd edition, San Francisco, CA: Jossey- Bass.
Schneider, S.C. and Barsoux, J.-L. (2003) Managing Across Cultures , Harlow: Pearson Education:
FT Prentice Hall.
Tayeb, M. (2003) International Management , Harlow: Pearson Education.
Tietze, S., Cohen, L. and Musson, G. (2003) Understanding Organizations through Language , London:
Sage.
Watson, T.J. (2012) ‘Making organizational ethnography’, Journal of Organizational Ethnography , 1(1): 15–22.
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24
Chapter 1 Activities
ACTIVITY 1.1
Examining an organisational culture in context
This activity focuses on the John Lewis Partnership. The 81,000 partners of this British company own John Lewis department stores and Waitrose supermarkets. The partnership has a constitution which defines the principles and rules of the company.
The first principle stated in the constitution has to do with the purpose of the company:
The Partnership’s ultimate purpose is the happiness of all its members, through their worthwhile and satisfying employment in a successful business. Because the Partnership is owned in trust for its members, they share the responsibilities of ownership as well as its rewards – profit, knowledge and power.
Source: http://www.johnlewispartnership.co.uk/about/our-constitution.html , accessed 31/12/2012.
The newspaper article below describes the nature of the company in more detail, one which could be a model for organisational change.
Read the article and respond to the questions which follow it.