BE 6901 / BE2714 Cross Cultural Studies Official (Closed), Non-Sensitive TOPIC: NATIONAL CULTURE VERSUS CORPORATE CULTURE National Culture Groups of people naturally develop their own cultures. They have common beliefs, experiences, values and expectations that make them unique. Culture is one important defining factor of their own identity, providing them with a sense of belonging, self-awareness and protection. For ease of study and understanding cultural phenomenon, most classifications are restricted to national belonging. Inhabitants of the same country in general share the same history, exposed to the same media, respect the same laws and have to adapt to similar situation. The homogeneisation can explain why people from the same country could in most cases be identified with a common culture. Cross cultural communication | Pellegrino Riccardi | TEDxBergen https://www.youtube.com/watch?v=YMyofREc5Jk UPBRINGING DIFFERENCES IN COUNTRIES AROUND THE WORLD https://www.youtube.com/watch?v=HHPuLfolJPc Corporate Culture What is corporate culture? https://www.youtube.com/watch?time_continue=9&v=gficoigz1xs Organizational Culture https://www.youtube.com/watch?v=NJia_p0c3BY Companies have their own cultures which are different from those of other companies. Organizational culture is comprised of broad guidelines which are rooted in organizational practices learned on the job. Diploma in Integrated Events & Project Management Diploma in Facilities Management Page 1 BE 6901 / BE2714 Cross Cultural Studies Official (Closed), Non-Sensitive McDonald’s http://panmore.com/mcdonalds-organizational-culture-analysis Walt Disney Company Culture https://www.youtube.com/watch?v=oEkksmYMvjY IBM: A service Culture https://www.youtube.com/watch?v=0ruPddoO48s Life at Google https://www.youtube.com/watch?v=PA54HWLZ2e4 With globalization, there is a need for uniformisation of practices across borders. Cases like McDonald’s demonstrate that a brand can carry with it the signature of a particular corporate culture and align it with practices or values that are global. Standardisation or adaptation Swedish furniture retailer IKEA sells many of the same products worldwide without modification, adapting only the language used in the advertisements and including different languages in the instructions and manuals. Brand Culture IBM - Smarter Marketing: The Branding of Culture https://www.youtube.com/watch?v=bz3wb45FZLM Brand culture is the culture that a company cultivates in order to powerfully, consistently and competitively deliver its brand to market. It is how people work together to bring the brand alive for customers. But brand cultures are more than an expression of the brand itself; they are, by necessity, an expression of the people who work for that brand and the decisions and ways of working and behaving that they agree to work within. The way brands connect with consumers has changed drastically over the years. Today, brands need to look more actively and purposefully at the culture buzzing around them—in entertainment, in fashion, in news, on social media—and use that awareness to inform how they should best position and integrate themselves into the world. This is a more powerful form of branding, because by engaging with culture more directly, brands in effect can become a part of that culture, thereby Diploma in Integrated Events & Project Management Diploma in Facilities Management Page 2 BE 6901 / BE2714 Cross Cultural Studies Official (Closed), Non-Sensitive deepening their relevance and connection with customers. And that has never been more prescient or necessary. Now, if companies develop brands in a silo and ignore what’s going on around them, they come off as out of touch. Consumers no longer want to be told what their culture looks like, nor what stories define it—they want to take part in that development. Your brand must be a part of the culture, because consumers are a part of that culture. The goal for brands today, then, is this: tell stories that ingratiate your brand in the culture so you become a part of it, too. To accomplish this, the most successful brands integrate aspects of the culture into their core message, and/or connect their brand to recent events or moments that reflect what they want to stand for. KFC: Because one ‘make a meal of it’ moment deserves another. https://www.adsoftheworld.com/media/film/kfc_keep_rolling UOB Private Bank ‘The Book’ TV Commercial: Honesty. Integrity. These are the values that define us, and guide our decisions and actions. https://www.youtube.com/watch?v=RSffykkToW8 Diploma in Integrated Events & Project Management Diploma in Facilities Management Page 3 BE 6901 / BE2714 Cross Cultural Studies Official (Closed), Non-Sensitive National Culture Versus Corporate Culture Two large research projects into culture differences (Hofstede 1980; Hofstede et al. 1990) showed that national cultures differ mostly at the level of values, while organization cultures differ mostly at the level of the more superficial practices: symbols, heroes, and rituals. National cultures oppose otherwise similar individuals, institutions and organizations across countries; the pioneer study on national cultures was based on different national subsidiaries of one large international business company. Organizational (also called corporate) cultures oppose different organizations within the same countries. Intercultural Communication Adventure with Little Pilot https://www.youtube.com/watch?v=PSt_op3fQck Organizational cultures are rooted in practices learned on the job, and they can change much faster. Their implications for management are quite different. The fact that national cultures were found to differ primarily in their values, and organizational cultures in their practices, has profound implications for the management of culture. National cultures are rooted in values acquired in our childhood, they are passed on from generation to generation, and their study belongs to anthropology. They change over time because of outside influences, following their own logic; they cannot be changed according to anyone’s plan, neither by political nor by religious nor by business leaders. International managers should see them as the material they have to work with. Diploma in Integrated Events & Project Management Diploma in Facilities Management Page 4 BE 6901 / BE2714 Cross Cultural Studies Official (Closed), Non-Sensitive On the other hand, organizational cultures, rooted in practices that can be learned and unlearned throughout people’s lives, are basically changeable, and their study belongs to organization sociology. They were created, usually unconsciously, by the organizations’ founders and early members; their development was influenced by managers and other significant members; they can be changed and monitored, given enough time, money and management attention. International companies and international organizations always consist of members with different national values. The way they function is through a shared company or organization culture based on common practices. Establishing, monitoring and adapting corporate or organizational practices is a core strategic task for international management. Proper practices are what keeps multinationals together. Changing organizational culture is difficult and takes time. What is often overlooked or at least underestimated when two or more companies merge/integrate is how the underlying personal values of employees impact how they perceive the corporate culture change efforts. A person can learn to adapt to processes and priorities, and a person can be persuaded to follow the exemplar behaviors of leaders in an organization. But if these priorities and leadership traits go against the deeply held national cultural values of employees, corporate values (processes and practices) will be undermined. What is appropriate in one national setting is wholly offensive in another. What is rational in one national setting is wholly irrational in another. And, corporate culture never trumps national culture. Day in the Life of a Typical Japanese Office Worker in Tokyo https://www.youtube.com/watch?v=YdiWTYkY1uY Diploma in Integrated Events & Project Management Diploma in Facilities Management Page 5