Corporate Culture: A Global Perspective

Corporate Culture is
1. Influenced by national culture and 2. Sustained by corporate leadership

What is corporate culture?

Corporate culture is a manifestation of the informally sanctioned corporate attitude. It is often referred to as Organizational DNA or the Organizational Soul. It is a fundamental contributor to the success or failure of corporate strategies.

Corporate Culture can evolve from

A leaders vision, policies, and actions Influential individuals or work groups Policies & Procedures (Careless, lax, or unclear)

People management philosophy (ignoring employee harassment)

Employee work-ethic (hire for attitude; train for skill) Organizational policies (no gifts from suppliers, casual
Fridays, etc.)

Corporate Culture is reflected in

A companys
Values, business principles, and ethical standards preached and practiced by management Approaches to people management and problem solving

Relationships with Shareholders, community, customers, suppliers, government agencies, etc.

Entrenched attitudes toward people from different national cultures

The First Step on the Path to Implementing a Successful Global Strategy

Understanding the Relationship between National Culture and Corporate Culture

Corporate Culture & National Culture

Are Symbiotically Related

What is national culture?

National culture is the mental programming of a group of people. It is comprised of the values, customs, and belief systems shared by a particular group of individuals.

Cultural Understanding can translate to better Business Practices

Contributions of Geert Hofstede He separated cultures into five dimensions: Power Distance Individualism

Uncertainty Avoidance
Masculinity Short and long-term orientation

Business Ethics:
It can be argued that some dimensions of business ethics are fluid. Cultural norms can differ between countries. What is unacceptable in one country may be perfectly acceptable in another. Thus A healthy corporate culture will encourage employees to observe, learn, and avoid passing judgment too quickly.

Effective strategic leaders - Craft global strategies that nurture a healthy corporate culture Encourage employees to understand and appreciate

other national cultures

Important qualities of strategic leaders

Determination to nurture a healthy corporate culture Courage Self-confidence Integrity The capacity to deal with uncertainty and complexity A willingness to hold people (and themselves) accountable for their work

Summary
Cultural Core Concepts

Its not about Magic Its about Management

Corporate Culture Managements Responsibility

1. Corporate culture refers to the character of a companys internal work climate and personality. 2. In a strong-culture company, culturally-approved behaviors and ways of doing things are nurtured while culturally-disapproved behaviors and work practices are discouraged.

3. In adaptive cultures, there is a spirit of doing what is necessary to ensure long-term organizational success. 4. Adaptive cultures are exceptionally well suited to companies with fast-changing strategies and market. 5. The tighter the culture-strategy fit, the more the culture steers company personnel into displaying behaviors and adopting operating practices that lead to successful strategy execution.

6. It is in managements best interest to dedicate considerable effort to building a corporate culture that encourages behaviors and work practices conducive to good strategy.
7. A companys culture is grounded in and shaped by its core values and the bar it sets for ethical behavior. 8. A multinational company needs to build its corporate culture around values and operating practices that travel well across borders.

A relaxed culture