Pettigrew (1979) argued that style of an organization in conducting a business is mostly depends on the different level of culture based on the multifaceted set of beliefs, values and assumptions. This is how the culture differentiates the organizations and influences the thought and decision making of employees. Based on statement of Barney (1991), organization culture can become an aggressive competitive advantage provided it fulfills these three conditions. Firstly, it must be valuable and viable so that it will lead the organization to achieve the objectives and goals. Secondly, it must be rare and attributes as the culture of an organization is different from the common culture of majority organizations.
The differences between cultural background has a considerable effect on how the manager should plan to run the company. Culture can be defined as the way people think, feel, and act, "the collective programming of the mind distinguishing the members of one group or category of people from another". The "category" can refer to nations, regions within or across nations, ethnicities, religions, occupations, organizations, or the genders (Hofstede, 2005). Culture is not just what people believe but also what they are taught and passed down from generations to generations. It contains the dominant intangible force on the communication behavior (Ryan, 2008).
Growing strains and polarization along social, religious and ethnic lines undermine steady, supportable business situations, and can be focused on straightforwardly at organizations. In the meantime, effectively overseeing assorted qualities – among representatives, clients and different partners – is progressively perceived as a basic for business achievement. Organizations likewise have an essential part to play in cultivating intercultural understanding furthermore, dialog, given their part in
Organization ethics play a substantial role in establishing and continuing any business. Ethic elements, such as honesty or integrity, trust, and loyalty have a big part in evolving the business images in the society. The corporate culture is built on the basis of the said accepted collective principles, outlooks, philosophies, and individualities of employees as well as management team members. It has also been found that, sound corporate culture and financial success is proportional to each other (Einar, 2010). However, it might also happen that strategic ethics may not meet the criteria of personal or real ethics in the real time.
Leaders must work hard through hiring, training, and performance management systems to bring in the right employees and then help employees internalize the organization’s underlying values. Ethical leadership from the top is very important- because it creates an environment in which lower-level ethical leaders can flourish- but ethical leadership at the supervisory level has a huge impact on followers’ attitudes and behavior. Unethical Influences Companies rely on employees to produce and deliver high-quality products and services. Employees are impacted by a variety of forces—both internal and external—as they attempt to perform their job duties. Employers who are aware of these forces, and who are prepared to leverage or counteract them, can increase productivity and loyalty.
John (2007) argues that a large responsibility for the creation and handle motivation systems of employees rests on the shoulders of business leaders. Although it is difficult to directly influence the motivation of individual employees, it must be an important area for managers to adequately
1.0 INTRODUCTION Business successes are always directly connected and rely on the performance of those who work for that business. Underachievement can be a result of workplace failures, it is because hiring the wrong people or failing to anticipate fluctuations in hiring needs will be effect the work performance and it can be costly. Therefore it is important to put an effort into human resource planning in order to ensure the organisation perform well and success in achieving their goals. One of the most importance factors affecting planning involves the goals in the organisation. The planning of human resource must effectively align with the organizational goals.
The first issue that allowed the Toshiba accounting scandal to happen was the unethical culture in Japan where subalterns are not allowed to oppose higher hierarchical personnel. For this reason, we believe that this is an important aspect to be considered. Enhancing a corporate ethical culture is among the crucial factors to prevent companies’ failure. In addition, an internal audit department should be established within the corporation. Furthermore, we believe the independence of the auditors should be reviewed and new standards applied.
Hence, it is a manager’s responsibility to make people to respect different languages, different behaviours, as people will behave differently in a multicultural environment. International Managers are all those managers who have the skills and knowledge to run the company smoothly in terms of cross-cultural environment. Now we have a clear picture that international managers has a diversified work environment with different cultures working together. It is not easy to learn the cultures of more than 200 countries overnight; it’s a continuous learning process. Implications of learning different cultures, understanding their values and respecting them are very much needed.
As the modern world is becoming a big cluster of various businesses, it is necessary to understand basic principles on which such businesses are based. For better understanding, it is important to know that there are external as well as internal factors affecting each business, its structure and success. Some of the external factors are a structure of competition in the particular market, trade restrictions, consumers’ interest, and a company’s market strategy. On the other hand, basic internal rules that affect each business are internal hierarchy and recruitment strategy. In order to understand what each factor presents and how it affects a business, it is best to look at real life examples.