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Organizational Culture And Organizational Structure Essay

1291 words - 6 pages

Has organizational culture now replaced organizational structure as the dominant method of management control in organizations?

As we can see, in the last 20 years, the type of applicable management over organizational structure is changing due to many factors like the turbulent business and political environments, in order to keep an organization successful and so its goals can be met. Many organizations that started growing wanted and needed that recipe of success that until now few big successful organizations had. Management theory until now thought that power is ascribed to positions rather than to the individuals holding those positions (Weber’s idea of bureaucracy). It was ...view middle of the document...

Culture is a very important brick in every organization’s structure and it’s the basis of self identity. Many organizations are defined and known by their own culture that defines what the organization is made of. To be successful in scope seeking an organization has to have a clear, understandable and healthy culture in order to take advantage among others in expanding in many markets. Culture always is of great significance in the intermixture of the organizational structure versus strategy and in many cases it helps the organization to define its path through the internalization

In international business, contexts like culture are very strong and important variables by their dependency and independency. For example culture is easy for us to blame as an independent variable that we can not change while in other cases we blame management for not changing the organizational culture in order to be more adoptive to the environmental changes. In other word, organization’s culture is the two sides of the same coin. This concept opposes the thought that culture is pure independent, however culture is mostly independent than dependent. The national/social culture affects organizations behavior in their global attitude when those organizations operate simultaneously in multiple environments around the world. For example Japanese organizations seem to have the same denominator among them, just because they are Japanese regardless of the competition that exists among them. They compete globally against other nations organizations, for example the German.

International business is different from national business because countries and societies are different. The more cross cultural awareness the more culture acceptance and variety. Culture should be understood and analyzed based on all of its dimensions and structure (education, language, religion, economic philosophy, political philosophy, geographical factor, etc…). There are however some implications due to those factors differences:
o The need for cross cultural literacy and the knowledge of what those differences means to the international business. Not well informed or educated organizations about foreign culture where they want to operate in will face the possibility of failure because what works in one culture/society may not work in others. This threat can be reduced by hiring local citizens to help doing business in the particular culture every time. Those locals know their own culture well and can support the organization in adopting that culture.
o Relation between culture and national competitive advantage. The cost of doing business in foreign cultures effects the establishment of competitive advantages in global markets. Conflict may exist between management and labor. Different ideologies cause differences in attitudes. For example some religions have impact on doing business in specific countries and may appose the capitalism that impacts the competitive...

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