Briefly discuss how the cultural context might affect a culture’s management practices.

Question

What will be an ideal response?

Answer 1

Organizational culture often parallels country culture. Organizations in collectivistic cultures are more likely to emphasize group harmony and teamwork. In this way, the organization may be more like a community than like an entity. Individualistic corporations emphasize personal goals and within-organization promotion. Employees often compete for organizational resources and promotions, and the organization is seen more as an entity than as a community. Power distance is another important cultural influence to assess when dealing with organizations across cultures. Organizations in large power distance cultures will be status conscious (e.g., a person’s position, degree), will employ top-down communication, and will be mindful of employee welfare. Formality between employer and employee will be the rule. Employees will not be expected to participate in management’s decision making. In small power distance cultures, such as that of the United States, employees are routinely asked for their opinion on work-related issues. The thought is that if workers are allowed to participate in decision making, they will be more committed to the decision. Uncertainty avoidance is another important consideration. In a low uncertainty avoidance culture, the marketplace is associated with a great deal of risk. Risky business propositions are likely to be rejected by cultures high in uncertainty avoidance.