Course:

BA (Hons) International Business

Management

Module:
BLC6004
International Business and Cultural Diversity
Lesson Plan
Lesson Plan
Lesson 1: 20 Sep 2023 12:30-3:30pm
Introduction to the module
Introduction to Culture
Lesson 2: 22 Sep 2023 12:30-3:30pm F2F
Culture, national culture and its relevance to
cross-cultural management
Lesson 3: 25 Sep 2023 12:30-3:30pm
Globalisation of culture and cultural diversity
WRIT 1 briefing
Lesson 4: 29 Sep 2023 12:30-3:30pm F2F
Cultural groups and levels / types of culture in
organisations
Lesson 5: 4 Oct 2023 12:30-3:30pm F2F
Cultural theories and how they apply (1)
Lesson 6: 11 Oct 2023 12:30-3:30pm F2F
Cultural theories and how they apply (2)
Lesson 7: 13 Oct 2023 12:30-3:30pm
Managing Cultural Differences at Work
Lesson 13: 10 Nov 2023 12:30-3:30pm
Lesson 8: 18 Oct 2023 12:30-3:30pm F2F The impact of culture on cross-cultural
WRIT 1 review conflict resolution
Lesson 9: 27 Oct 2023 12:30-3:30pm F2F Lesson 14: 15 Nov 2023 12:30-3:30pm F2F
Business activities affected and the impact Managing Strategic Alliance
Lesson 10: 1 Nov 2023 12:30-3:30pm F2F Lesson 15: 22 Nov 2023 12:30-3:30pm
Guest Lecture Governance
WRIT 2 briefing
Lesson 16: 24 Nov 2023 12:30-3:30pm F2F
Lesson 11 3 Nov 2023 12:30-3:30pm F2F WRIT 2 Review
Cross-cultural management and the
emerging need for cultural
agility and empathy
Lesson 12: 8 Nov 2023 12:30-3:30pm F2F
The impact of culture on cross-cultural
business negotiation: communication
breakdowns and barriers
L4 Cultural groups and levels /
types of culture in organisations
 Levels of Culture

-A national level according to one’s country

-A regional / ethnic / religious / linguistic affiliation level
-A gender level
-A generation level, which separates grandparents from parents and children
-A social class level, associated with education occupation or profession.
- An organisational level according to the way employees have been
socialised by their work organisation.

(Hofstede, 1994 pp 10-11)

What Is Corporate Culture? (Definition
and Different Types)
Corporate culture refers to the values, behaviour and working style of a company. It
indicates how a company treats its employees, customers and community. For
example, one company may give more importance to the environment than
profitability, while another one may be more concerned about increasing its bottom
line even if its operations negatively impact the environment. Similarly, one
company may want to get the most out of its employees, even at the cost of their
health and personal life, while another one may be more generous towards its
workforce.
• Madhani (2014) describes culture in an organisation as the personality of the
organisation
• Schein (2006) Organisational culture is a pattern of basic assumptions that a given
group has invented, discovered or developed in learning to cope with external
adaptation and internal integration
• According to Sorensen (2002) the two major attributes of culture are content and
strength.
What Is Corporate Culture?
(Definition and Different Types)

Note: one policy or instance of behaviour does not constitute the corporate culture
by itself, it definitely indicates the culture of the company. For example, a company
guided by the belief of developing quality products would never try to pass on
substandard quality products to its customers, even if that translates into higher
profits. Companies may define their culture through company culture statements
just like they define their mission through mission statements. However, it mostly
develops organically over a period of time from the cumulative personality and
attitude of the management and the employees it recruits.
What Is Corporate Culture? (Definition
and Different Types)

External factors like local customs and traditions, national economic policy and the
industry in which the company operates may also influence the culture of a
company. Corporate culture often reflects in the dress code, office environment,
recruitment policy, client satisfaction and all other aspects of the company
operations. Companies with good corporate culture usually have higher employee
retention rates, productive employees and a motivating work environment.
Why is corporate culture important?

Corporate culture is important because it influences a company's policies,

operations and working style. Following are some reasons and examples
that underline the importance of corporate culture:
Why is corporate culture important?

•Employees often get attracted to companies with a culture they identify

with.
•Corporate culture impacts the way a company treats its employees,
which in turn impacts employee retention, turnover and productivity.
•Corporate culture impacts the way a company deals with its customers.
•Corporate culture can help build a strong brand identity as it creates a
certain image and perception in the minds of the customers.
•Strong corporate culture can transform employees and customers into
brand advocates.
•Good corporate culture can promote a healthy team environment.
Why is corporate culture important?
Why is corporate culture important?
Elements of corporate culture
Following are the essential elements of corporate culture:

1. Vision
The vision of a company defines its business objectives and what it strives to
achieve. It indicates why the company exists and where it sees itself in the
future. Companies usually communicate their vision through a vision statement.
The vision of a company strongly influences its corporate culture. Customers,
suppliers, creditors, potential employees and other stakeholders can get a fair
idea of a company's culture through its vision statement.

2. Values
The values of a company guide the behaviour and approach it takes to realise its
vision. A value statement declares the priorities of the company and tells you
how it conducts itself. Thus, values greatly impact the mindset and behaviour of
the employees and the expectations of the company's external stakeholders.
Elements of corporate culture

3. Practices
The vision and values of a company reflect in the practices it follows.
For example, how a company communicates its policies, how much
freedom it gives its employees, what process it follows for making
decisions and how it looks after its customers' concerns all give you
an idea about its culture.

4. People
A company's culture exists largely because of the people it
employs. The mindset, attitude and behaviour of the people
working for the company can give you a strong hint about the
company's culture.
Elements of corporate culture

2. Values
The values of a company guide the behaviour and approach it takes to
realise its vision. A value statement declares the priorities of the
company and tells you how it conducts itself. Thus, values greatly
impact the mindset and behaviour of the employees and the
expectations of the company's external stakeholders.

3. Practices
The vision and values of a company reflect in the practices it follows.
For example, how a company communicates its policies, how much
freedom it gives its employees, what process it follows for making
decisions and how it looks after its customers' concerns all give you
an idea about its culture.
Types of corporate culture

Corporate culture may vary widely among companies.

However, you may encounter some common cultures
between different companies. Here are some common
types of corporate cultures to help you determine whether
your core values align with them:
Types of corporate culture

1. Team-first culture
In this type of culture, companies focus on building a team of people that
share the company's values and beliefs. During recruitment, the company
gives a higher priority to values than skills and experience. As a result, the
company usually has highly motivated employees who find their work
meaningful. Companies following the team-first culture look for ways to
keep their employees happy. They may organise activities like team
outings and frequently seek employee feedback.
2. Elite culture
Dynamic and rapidly growing companies often follow an elite culture. Such
companies prefer recruiting people that are talented and confident. They
expect their employees to think out of the box and go beyond traditional
boundaries. These companies are often involved in meaningful work, such
as path-breaking research or developing some cutting-edge technology,
which makes employees feel proud of their efforts.
3. Horizontal culture
This type of culture is often found in small and mid-sized companies.
Companies with a horizontal culture keep the hierarchical levels in their
organisational structure to a bare minimum. Team members often take up
multiple roles and work in a collaborative environment. You get the
opportunity to learn several different aspects of the company's business.
You may even have a CEO actively involved in the daily operations of the
company.

4. Conventional culture
You can find this culture in traditional companies like banks and public
sector enterprises. Companies with conventional culture often have a tall
organisational structure with clearly defined roles and job titles. The flow of
authority, too, is clear. The procedures are standardised and employees
typically need to follow the commands of their supervisors. Although it may
look outdated, conventional culture may be effective in certain industries
like mining and refining, where work procedures are well-established.
5. Progressive culture
You can encounter this culture in companies that are in the transition
phase. The transition could be due to acquisition, merger or change in
management. Progressive culture often requires a review of the company's
goal and mission statements, which may also result in redefining job titles,
roles and responsibilities. Since there would be an environment of
uncertainty, you need to be able to communicate your ideas clearly and
quickly adapt to changes in order to flourish in a progressive culture.

6. Market culture
A market culture focuses on competition and growth. Companies with this
type of culture place a high priority on profitability. Each position in the
company looks to contribute to the company's bottom line. The work
environment is result-oriented rather than being focused on personal
satisfaction. You can find market culture in large companies that aim to be
or are already industry leaders.
 What Is Organisation Culture?

Organizational culture influences the success of your company from new hire
recruitment to talent retention to employee engagement. Your company
culture directly affects the types of candidates you attract and the employees
you hold on to.
 What Is Organisation Culture?

Organisational Culture is one of the most important factors determining business

performance. It dictates how things are done in an organisation, and it can be a
powerful force for good or bad. If we imagine an organisation as an engine,
Organisational Culture would be the oil for that engine. The right culture can be the
reason for the success of your organisational strategy while the wrong culture can
lead to poor performance or even complete failure. (Hofstede 1998)
 How does O.C. Implication to Manager

Unfortunately, many managers fail to understand the importance of Organisational

Culture, and instead focus exclusively on strategy. This is a mistake. Organisational
Culture should be seen as an important tool that can help to achieve organisational
goals. It can either support or hinder your strategy, and should be given the
attention it deserves.

It's also the most distinctive aspect of your offering, and helps you stand out from
the competition. Even if one can replicate a product, a design, or even a service,
they'll never be able to duplicate all of the organisational methods and concepts that
impact people's actions and decisions.
The question isn't whether or not you have a culture, but whether or not your culture
is helping you achieve your business goals.
Strong vs Weak culture
Flamholtz and Randle state that a strong culture is one that people clearly understand and can
articulate. A weak culture is one that employees have difficulty defining, understanding, or
explaining.
Strong culture:
• built on a clearly defined set of core values / consistently applied
• shared by the majority of employees demonstrated by their consensus regarding the values of
the organisation.
• organisations use their strong culture as a source of competitive advantage.
• The stronger a culture the more likely it is to influence the way employees think and behave in an
organisation and their alignment to organisational values.
• In a strong-culture culturally-approved behaviors and ways of doing things are nurtured while
culturally-disapproved behaviors and work practices are discouraged.

A strong culture may be an asset or a liability to an organization depending on the type of

values that are shared (Madhani, 2014)
Strong vs Weak culture
Weak culture
• core values are not clearly defined
• little alignment between the way things are done and the company’s values
• potential inconsistent behaviour of people / ethical issues / decision-making processes in
the o r g a n i s a t i o n  inconsistent customer experiences
• greater need for procedures, policies and bureaucracy

Adaptive cultures
• well suited to companies with fast-changing strategies and market
• doing what is necessary to ensure long-term organisational success.

International / multinational companies need to build their corporate culture around

values and operating practices that travel well across borders.
4 Types of Organizational Culture
TYPE 1:CLAN CULTURE
Primary Focus: Mentorship and teamwork.
Motto: “We’re all in this together.”
About Clan Culture: A clan culture is people-focused in the sense that the company feels
family-like. This is a highly collaborative work environment where every individual is valued and
communication is a top priority. Clan culture is often paired with a horizontal structure, which
helps to break down barriers between the C-suite and employees, and it
encourages mentorship opportunities. These companies are action-oriented and embrace
change, a testament to their highly flexible nature.
Benefits: Clan cultures boast high rates of employee engagement, and happy employees make
for happy customers. Because of its highly adaptable environment, there’s a great possibility for
market growth within a clan culture.
Drawbacks: A family-style corporate culture is difficult to maintain as the company grows. Plus,
with a horizontal leadership structure, day-to-day operations can seem cluttered and lacking
direction.
Where You’ll Find Clan Culture: It’s no surprise that clan cultures are often seen
in startups and smaller companies. Young organizations that are just starting out put a heavy
emphasis on collaboration and communication, leadership looks to employees for feedback and
ideas and companies prioritize team-building.
TYPE 2: ADHOCRACY CULTURE
Primary Focus: Risk-taking and innovation.
Motto: “Risk it to get the biscuit.”
About Adhocracy Culture: Adhocracy cultures are rooted in innovation and adaptability. These are
the companies that are on the cutting-edge of their industry — they’re looking to develop the next big
thing before anyone else has even started asking the right questions. To do so, they need to take
risks. Adhocracy cultures value individuality in the sense that employees are encouraged to think
creatively and bring their ideas to the table. Because this type of organizational culture falls within
the external focus and differentiation category, new ideas need to be tied to market growth and
company success.

Benefits: An adhocracy culture contributes to high profit margins and notoriety. Employees stay
motivated with the goal of breaking the mold. Plus, with a focus on creativity and new ideas,
professional development opportunities are easy to justify.
Drawbacks: Risk is risk, so there’s always a chance that a new venture won’t pan out and may even
hurt your business. Adhocracy cultures can also foster competition between employees as the
pressure to come up with new ideas mounts.
Where You’ll Find Adhocracy Culture: Think of Google or Apple — these are companies that
embody the external focus and risk-taking nature of adhocracy culture. They run on creative energy
and doing what hasn’t been done before. Adhocracy cultures are commonplace within the ever-
changing tech industry where new products are being developed and released on a regular basis.
 4 Types of Organizational Culture
TYPE 3: MARKET CULTURE
Primary Focus: Competition and growth.
Motto: “We’re in it to win it.”
About Market Culture: Market culture prioritizes profitability. Everything is evaluated with the
bottom line in mind; each position has an objective that aligns with the company’s larger goal, and
there are often several degrees of separation between employees and leadership roles. These are
results-oriented organizations that focus on external success rather than internal satisfaction. A
market culture stresses the importance of meeting quotas, reaching targets and getting results.
Benefits: Companies that boast market cultures are profitable and successful. Because the entire
organization is externally focused, there’s a key objective employees can get behind and work
toward.
Drawbacks: On the other hand, because there’s a number tied to every decision, project and
position within the company, it can be difficult for employees to meaningfully engage with their work
and live out their professional purpose. There is also risk for burnout in this aggressive and fast-
paced environment.
Where You’ll Find Market Culture: The goal of a market culture company is to be the best in its
industry. Because of that, these are often larger companies that are already leaders of the pack.
They’re looking to compete and beat out anyone else that may compare.
 4 Types of Organizational Culture
TYPE 4: HIERARCHY CULTURE
Primary Focus: Structure and stability.
Motto: “Get it done right.”
About Hierarchy Culture: Companies with hierarchy cultures adhere to the traditional corporate
structure. These are companies focused on internal organization by way of a clear chain of
command and multiple management tiers that separate employees and leadership. In addition to a
rigid structure, there’s often a dress code for employees to follow. Hierarchy cultures have a set way
of doing things, which makes them stable and risk-averse.

Benefits: With internal organization as a priority, hierarchy cultures have clear direction. There are
well-defined processes that cater to the company’s main objectives.
Drawbacks: The rigidity of hierarchy cultures leaves little room for creativity, making these
companies relatively slow to adapt to the changing marketplace. The company takes precedence
over the individual, which doesn’t necessarily encourage employee feedback.
Where You’ll Find Hierarchy Culture: Hierarchy cultures can be found at both ends of the
corporate spectrum, from old-school organizations to those of the customer service industry, such as
fast food restaurants. These are companies that are hyper-focused on how day-to-day operations
are carried out and aren’t interested in changing things up anytime soon.
4 Types of Organizational Culture
The concept of Corporate Culture
Corporate culture can evolve from:
• The organisation’s founder
• A leader’s vision
• Influential individuals or groups at work
• Organisational policies and procedures
• People management philosophy
• Reactions to crisis management
• Strategic decisions
The concept of Corporate Culture
A fundamental contributor to the success or failure of corporate strategies.

• How does it manifest itself?  Business practices

A company’s:
• Values, business principles, and ethical standards preached and practiced by
management
• Approaches to people management and problem solving
• Relationships with Shareholders, community, customers, suppliers, government
agencies, etc.
• Attitudes toward people from different cultures

There is no one best fit / permanent culture for an organisation.

Implication for managers
Globalization has increased cultural diversity of organisations

Individuals bring their own cultural backgrounds with them and USE FAMILIAR CONSTRUCTS
IN THEIR ACTIVITIES.
• For managerial effectiveness, it is helpful to analyse corporate cultures in order to coordinate
activities or change them
• Understand what levels of culture can be influenced and how
• Know how national culture and organisational culture can interact to influence the management
philosophy and employee behaviours
• Ethical leadership in association with a range of behaviours – consideration, honesty, trust,
fairness e t c .  helps to predict outcomes, for example, perceived effectiveness, job satisfaction
and dedication, willingness to report problems to management, transparency, etc
Transformational leadership
• “. . . the only thing of real importance that leaders do is to create and manage culture, and the
unique talent of leaders is their ability to work with culture.” (Schein, 1985 p.2)
Implication for managers
Cultural diversity (also known as multiculturalism)
• A group of diverse individuals from different cultures or societies
• Usually, cultural diversity includes language, religion, race, sexual
orientation, gender, age and ethnicity.

Cross-cultural diversity
Implication for managers
Some approaches to integrating organisational culture and cross-cultural diversity management
• Ethnocentric- with an unquestioning belief that its own national culture and ways of doing things
are best
• Polycentric- open to other cultures and ways of doing things
• Geocentric - combines a strong corporate vision with local responsiveness.

Some critical reflections:

Corporate culture and cross-cultural diversity management : an asset or a liability ?

Does a multinational corporate culture erase or neglect the impact of the national cultures on the
organisation?
Ethnocentric, Polycentric, Regiocentric, Geocentric: PHR, SPHR, SHRM-CP&SHRM-SCP Certification Exam.
https://www.youtube.com/watch?v=GnTTgBG6_uE

Business Logistics Management 37

Next lesson

L5 Cultural theories and how they apply (1)