What is Culture and its importance in organizational context
People’s views, as well as values, are referred to as culture. Culture refers to the communal conditioning of the mind that distinguishes one community of individuals from the other (Erthal & Marques, 2018). The essay will focus on different cultures adopted by the organisations and will address how should the organisations adapt in light of the cultures in which they operate with the help of the Hofstede model and Trompenaars and Hampden-Turner’s Model.
Corporate culture is an important factor in attaining organisational goals as well as objectives, as well as boosting the profitability and efficiency of organisations and managing change. Business organisations are getting more international, and the function of cultures and their relevance is growing in importance every day (Hald, Gillespie & Reader, 2021). Despite culture could not being defined in specific terms, it does encompass values, concepts, beliefs, behaviours, as well as expectations, among other things. As a result, it is critical to comprehend the cultural differences that exist, as well as how various cultures are adapted to the organisations (Obeidat, et al., 2018).
Hofstede’s cultural multidimensional framework is a model that employs multiple characteristics to identify the differences between cultures and countries as well as how organisations should adapt to the cultures in which they operate. It was developed by Geert Hofstede (Beugelsdijk & Welzel, 2018). Power, uncertainty avoidance, individualism, and collectivism in Australia are among the dimensions which will be studied for this essay.
When comparing the cultural characteristics of Australia to those of any other country, it is clear that there exist significant disparities in the two nations’ organisational cultures, owing to their geographical separation. Many elements, including such priorities, cultural aspects, and many others, contribute to the disparities in the two nations’ cultures. It could have a beneficial influence on the organisation and its activities, but it is also possible that it will have a detrimental effect (Zhou & Kwon, 2020).
To begin with, in Hofstede’s cultural framework, power distance is among the characteristics that the author provides. It ultimately influences the nation’s power structure (Erthal & Marques, 2018). If the dimension of power distance in the nation or culture stated is substantial, it is thought to be rule-following and loyal to those in positions of power, as well as a tolerance of power disparity within that nation. On the other side, when the power gap in a nation or culture is moderate, the power allocation is relatively unequal, therefore people are less willing to support an inequitable power distribution (Mwangi & Waithaka, 2018).
The power distance index particularly in Australia with an index of 36, is fairly low when contrasted to the global standard of 55. This reflects increased fairness in all aspects of society, including the government, organisations, and even among families. This mindset encourages cooperation among people at all levels of power, resulting in a more secure cultural context (Jain & Jain, 2018). Wo, in light of the power distance dimension given by Hofstede, it can be stated that organisations operating in countries wherein there is low power distance will have flat organisational cultures because of decentralised decision structures as well as less concertation of authority. On the other hand, organisations operating in the countries where there is higher power distance will hall tall-pyramid-like organisational culture because of centralised structures of decisions and more concentration of authorities (Purwanto, 2018).
Hofstede’s cultural multidimensional framework to identify cultural differences
The second dimension of Hofstede’s cultural dimension, that is Individualism and collectivism wherein individualism refers to giving oneself or a person a higher emphasis on a nation’s culture. It is known to be a social structure in which people are only responsible for themselves including the individuals of their immediate families. The term “I” is most closely linked with this social system. Collectivism, on the other hand, is a social framework in which people can anticipate unwavering allegiance from their relatives and close friends. There is a close-knit family structure in place, and these members are supposed to look after them. “We” is the phrase most usually linked with collectivism (Sacca & Campbell Fernandini, 2021).
This dimension helps the organisation adapt to the culture in which they operate in such a manner that Individualism in the workplace can be evaluated from the perspective of the job goals that individuals value in such environments. Individualism is defined by the importance positioned on possessing a job that allows enough time for the individual as well as relatives life, intellectually stimulating work that gives the employee a feeling of individual achievement, as well as liberty, all of which are related to the employee’s autonomy from the company for whom he or she operates and the ability to satisfy his or her objectives (Moffatt, 2018). Organizational individualism is associated with valuing a workplace atmosphere in which the worker in question can display and apply his or her abilities, each of which is concerned with what the company contributes to the person instead of the other way around. Moreover, a variety of institutional or organisational beliefs are linked to the dimension of individualism (Loh, Thorsteinsson & Loi, 2021).
Uncertainty avoidance is the third dimension. This dimension is intended to indicate how uncomfortable ambiguity, as well as uncertainty, make you feel. This level is represented from the perspective of culture. This refers to how a community or a nation deals with the reality that they cannot anticipate or foresee destiny. A country with a higher level of uncertainty avoidance is thought to be more inflexible in its beliefs and less adaptable to corporate culture. Innovative concepts and/or unconventional behaviour might be unwelcome in these nations. It will also influence the entry of innovative business organisations in the marketplace of cultures with a strong uncertainty avoidance score, which indicates a country’s reluctance to any unexpected development (Zheng, 2020). This dimension helps the organisations to adapt to the culture in which they operate in such a manner that, corporations utilise artefacts (such as technologies), norms, including rituals to deal with ambiguity about the future. The avoidance of uncertainty component somehow does not refer to efforts to minimize danger, but instead to how an institution responds to and strives to regulate unique, unexpected, or unforeseen future occurrences. According to Hofstede, all institutions (and individuals) should indeed safeguard themselves against ambiguity to a certain large extend, but they should also acknowledge that the destiny is primarily unquantifiable: uncertainty avoidance relates to the process by which an institution tips the scales the two and selects to protect itself from ambiguity over being inclined to answer back fluidly to occurrences as they emerge (Toki, 2018).
Power distance dimension in Australian culture and its impact on organizational culture
In comparison to the Hofstede’s model, there exists another model of Trompenaars Cultural Dimensions. This model includes seven dimensions of culture. These are Universalism versus Particularism, Individualism versus Communitarianism, Neutral versus Emotional, Specific versus Diffuse, Achievement versus Ascription, Sequential versus Synchronous time, and Internal direction versus External direction. These dimensions can help the organisations in adapting to the culture by understanding their values.
To begin with, the first-dimension states that Ideas could be implemented any place in universalist culture, subsequently there is normally a portrayal which can be used to characterise the contrast among adequate and wrong. While, individuals of a particularistic culture imagine that conditions impact how ideas can be placed into the real world. With regards to taking on moral choices, relational associations and responsibilities are critical (Dominique, 2020).
The second-dimension states that, Independence believes individuals to be people, while communitarianism believes individuals to be residents of a system. As indicated by Fons Trompenaars, nonconformist culture is related with Western ideas, but communitarian culture is related with non-Western countries (Mousa, Massoud & Ayoubi, 2020).
The third-dimension states that Emotions are regulated in a neutral society, while they are conveyed freely as well as impulsively in an emotional culture. So, when individuals representing a neutral culture conduct trade with individuals representing an enthusiastic culture, other individual ‘s demeanour might beat them down. Readiness just as thought of somebody’s way of life will assist with trying not to humiliate circumstances (O’Brien, 2020).
The fourth-dimension states that People within a specific culture possess a wide open space that they may effectively use with others. They moreover have a little private region that they use with dear companions and colleagues. Along these lines, Individuals in a diffused culture will accordingly protect their private zone to acquire fast openness to the public domain. Convention is profoundly esteemed by individuals from an assorted social foundation (Dominique, 2020).
Fifth dimension of the mode states that an individual ‘s value within an accomplishment situated culture is estimated by their accomplishments and how effectively they complete their obligations. In a general public where status is allocated, the individual’s status is controlled by what their identity is. Along these lines, According to Fons Trompenaars, it is ordinarily a mix, with culture figuring out which attributes from the Achievement or Ascription societies are focused on (Mousa, Massoud & Ayoubi, 2020).
The sixth dimension put emphasis on Sequential versus synchronous time. Time could be assessed and appreciated in an assortment of ways. Many years, seasons, months, days, just as hours are utilized to quantify the past, ebb and flow, and planned. This real time estimation is important for a succession of occasions. “Time is cash,” just as the ceaseless race over the clock, are typical statements in this culture. Hence, it helps the organisations in adapting to the cultures by understanding that synchronisation time is much more conceptual and emphasises the ability to work on multiple tasks at the same time. It is unconcerned about time boundaries, but it is cognizant of the individual body’s own rhythms (O’Brien, 2020).
Individualism and collectivism in the workplace and organizational behavior
Last, but not the least, the seventh dimension emphasises on Inside bearing versus external heading. It expresses that The accentuation in inside coordinated versus external coordinated societies lies upon ways people communicate with their environmental elements. Is the surroundings a danger (external) or is it more logical to evolve with societal elements (internal). People ‘s perceptions of their surroundings varies between culture to culture (Dominique, 2020).
Conclusion
From the above essay, it can be concluded that organisations need to look after various dimensions to successfully adapt to the cultures in which they operate. Corporate culture is an important factor in attaining organisational goals as well as objectives. It was observed that in Australia, the power distance dimension is fairly minimal. A short power distance implies that power in the nation of Australia is disseminated equitably rather than being packed in a couple of hands. This mindset promotes cooperative interactions among people of different authority levels, resulting in a much more sustainable cultural context. With a family-centred culture and a stable society, uncertainty avoidance is also comparatively low. It could also be shown that Australians dislike ambiguity, that they seek consistency for their individuals, that they seek agreement, that they adhere to a lot of rules, plus they are more stressed and anxious than other people. Moreover, there would be greater understanding as well as compassion for different cultures, their conventions, traditions, and rituals as a result of understanding the 7 cultural dimensions given by Trompenaars and Hampden-Turner’s Model. This would make doing business with one another simpler, and this will result in improved agreements that secure long-term cooperation.
References
Beugelsdijk, S., & Welzel, C. (2018). Dimensions and dynamics of national culture: Synthesizing Hofstede with Inglehart. Journal of cross-cultural psychology, 49(10), 1469-1505.
Dominique, V. (2020). BUSINESS CULTURAL TRAINING IN A GLOBALISED ECONOMY. Training, Language and Culture, 4(1).
Erthal, A., & Marques, L. (2018). National culture and organisational culture in lean organisations: a systematic review. Production Planning & Control, 29(8), 668-687.
Erthal, A., & Marques, L. (2018). National culture and organisational culture in lean organisations: a systematic review. Production Planning & Control, 29(8), 668-687.
Hald, E. J., Gillespie, A., & Reader, T. W. (2021). Causal and corrective organisational culture: a systematic review of case studies of institutional failure. Journal of Business Ethics, 174(2), 457-483.
Jain, S. S., & Jain, S. P. (2018). Power distance belief and preference for transparency. Journal of Business Research, 89, 135-142.
Loh, J. M., Thorsteinsson, E. B., & Loi, N. M. (2021). Workplace incivility and work outcomes: cross?cultural comparison between Australian and Singaporean employees. Asia Pacific Journal of Human Resources, 59(2), 305-329.
Moffatt, J. J. (2018). Organisational culture and performance in project based organisations operating in the Australian resources and energy sector (Doctoral dissertation, Queensland University of Technology).
Mousa, M., Massoud, H. K., & Ayoubi, R. M. (2020). Gender, diversity management perceptions, workplace happiness and organisational citizenship behaviour. Employee Relations: The International Journal.
Mwangi, R. W., & Waithaka, P. (2018). Organisational culture and performance of public universities in Kenya. International Academic Journal of Human Resource and Business Administration, 3(2), 288-313.
Obeidat, A. M., Abualoush, S. H., Irtaimeh, H. J., Khaddam, A. A., & Bataineh, K. A. (2018). The role of organisational culture in enhancing the human capital applied study on the social security corporation. International Journal of Learning and Intellectual Capital, 15(3), 258-276.
O’Brien, T. S. (2020). Beyond Cash Value: Promoting Real?World Competence in the Global Turn. Die Unterrichtspraxis/Teaching German, 53(1), 82-98.
Purwanto, E. (2018). Moderation effects of power distance on the relationship between job characteristics, leadership empowerment, employee participation and job satisfaction: A conceptual framework. Academy of Strategic Management Journal, 17(1), 1-9.
Sacca, A., & Campbell Fernandini, S. (2021). Exploring cultural orientation and its influence on business planning in new ventures: urban Indigenous Australian insights.
Toki, H. (2018). Effects of uncertainty avoidance and high/low context cultural dimensions on online booking behaviour of international tourists: A cross-cultural study of Japanese and Australian tourists.
Zheng, B. (2020). The Impact of Cultural Diversity of the Corporate Board on the Firm’s Performance: Evidence From Australia (Doctoral dissertation, Auckland University of Technology).
Zhou, Y., & Kwon, J. W. (2020). Overview of Hofstede-inspired research over the past 40 years: The network diversity perspective. SAGE Open, 10(3), 2158244020947425.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
