Culture . ppt


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 leader’s 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 company’s

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


Uncertainty Avoidance


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.


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




The capacity to deal with uncertainty and complexity

A willingness to hold people (and themselves) accountable for their work


Cultural Core Concepts

It’s not about Magic – It’s about Management

Corporate Culture…

Management’s Responsibility

1. Corporate culture refers to the character of a company’s 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 management’s best interest to dedicate considerable effort to building a corporate culture that encourages behaviors and work practices conducive to good strategy.

7. A company’s 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…