In the current business environment, not only organizations and companies operate outside national borders, but also individuals leave their native environment and move to other countries or continents. This is not a new trend, international business activities have been taken place for centuries, but today they are part of the daily operations for many organizations. The reason is the ongoing globalization, especially since the 1960s, which results in increasing and tightening the relations between national economies as well as between companies.
In the multinational environment, we observe a transfer of knowledge, know-how, technology, and, of course, an interaction of different cultures.
In this context, the cultures are more difficult to decipher because the forces, that work behind the cultures, are often invisible, but they determine the behaviour of individuals. The cultural intelligence of the leadership is therefore essential not only for a survival but also for an effective and successful performance in a multicultural environment.
Table of Contents
1. Introduction
1.1 Task and Objective
1.2 Structure of Work
2. Fundamentals of Theory
2.1 National Culture
2.2 Organizational Culture
2.2.1 Three Levels of Culture by Edgar Schein
2.2.2 Charles Handy’s Organizational Culture
2.2.3 Strong and Weak Organizational Cultures
2.3 National vs. Organizational Culture: Which is Stronger and Where is the Difference?..
3. Leadership
3.1 Leadership styles
3.2 Influence of Cultural Factors on Leadership
4. Conclusion
Objectives and Topics
This thesis investigates the fundamental differences between national and organizational cultures and examines how these distinct cultural factors influence leadership styles and organizational performance in a globalized business environment.
- Comparison between national and organizational cultural frameworks.
- Theoretical models of culture (Schein, Handy, Hofstede).
- Interaction between diverse cultural backgrounds and leadership effectiveness.
- The role of leaders in shaping and managing organizational culture.
- Strategies for overcoming cultural conflicts in multinational companies.
Excerpt from the Book
2.1 National Culture
Following the ideas of scientists Stella Ting-Toomey, Edgar Schein, and Geert Hofstede the national culture can be defined as a learned group phenomenon which comprises of patterns of traditions, norms, values, rules, symbols, and beliefs which are passed from one generation to the next. It defines a group’s ways of coping with everyday problems and provides solutions to recurring problems (MÜNSCHER, p. 39). The members of the group share the same cultural ideas and apply the provided solutions even without talking about the culture or thinking about which solution to apply. Therefore, certain similarities can be observed in the behaviour of the individuals belonging to the same cultural group (CETENAK 2017, p. 355f.).
Like a guiding light, national culture influences individuals, institutions, policies, and processes within a country. Various studies prove that national culture can explain the institutional, legal, or economic environment of a country on the macro level and impresses the organizational culture as well as the leadership style and decision-making on the organizational level. It is essential to have knowledge of other cultures, their values as well as impact on the organizational behaviour and managerial decisions (CETANAK 2017, p. 356f.).
Summary of Chapters
1. Introduction: This chapter outlines the globalization context and defines the objective of comparing national and organizational cultures in relation to leadership.
2. Fundamentals of Theory: This section provides a literature review defining national and organizational culture using established models such as Schein's levels and Handy's four types.
3. Leadership: This chapter analyzes classical leadership styles and the complex interaction between a leader’s cultural background and the organization's cultural environment.
4. Conclusion: The final chapter synthesizes findings, emphasizing the necessity of balancing diverse cultural influences to ensure sustainable organizational success.
Keywords
National Culture, Organizational Culture, Leadership Styles, Globalization, Hofstede, Edgar Schein, Charles Handy, Cultural Diversity, Conflict Management, Multinational Organizations, Ethnoscentrism, Leadership Development, Work Environment, Corporate Strategy, Cultural Intelligence.
Frequently Asked Questions
What is the core focus of this work?
The work focuses on analyzing the impact of national and organizational culture on leadership, examining how these two distinct forces shape business interactions and management decisions.
What are the central thematic areas?
Central themes include the definition and comparison of cultural models, the evolution of leadership styles, and the challenges of managing cross-cultural teams in global organizations.
What is the primary research objective?
The primary aim is to investigate the differences between national and organizational cultures and determine how cultural factors influence leadership practices and performance.
Which scientific methodology is utilized?
The paper utilizes a comprehensive literature review, drawing on management studies and cultural theories by researchers like E. Schein, Geert Hofstede, and Charles Handy.
What topics are covered in the main section?
The main part covers the theoretical foundation of cultures, the characteristics of diverse leadership styles, and the practical implications for leaders operating in multicultural environments.
Which keywords define this work?
The work is defined by terms such as organizational culture, national culture, leadership, globalization, and cultural diversity management.
How does national culture differ from organizational culture according to the text?
National culture is learned unconsciously in childhood and is deeply rooted, whereas organizational culture is learned consciously on the job and can be molded by leaders.
What is the "iceberg" analogy mentioned in the text?
The iceberg analogy highlights that 90% of culture is hidden below the surface, representing values and underlying assumptions that directly influence behavior without being immediately visible.
Why might employees resist organizational culture?
Employees may resist organizational culture if it conflicts with their deeply held national cultural values or beliefs.
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- Tatiana Dornbusch (Autor:in), 2021, Organizational vs. National Cultural Factors and Leadership, München, GRIN Verlag, https://www.grin.com/document/1415430
