Organizational psychology in cross-cultural perspective

Abstract

viii | Contents 1 differently when the parent American company stepped in to run the factory. After years of labor problems, poor quality, and low productivity, the American parent company decided they had had enough and could run the factory much better. Within a week of the American takeover of management, the workers were involved in one of the longest strikes in company history, as the Americans tried to apply their American business practices in a British work environment. Their biggest mistakes did not concern critical organizational issues such as productivity or procedures or automation, but rather the way they treated the tea ladies and the way workers should take their breaks. The absolute ignorance of or blindness to cultural behaviors in British factories caused a bigger problem than any of the traditional conflict issues such as wages, productivity, and working conditions and, in this case, led to a very long strike. This lack of understanding of cultural differences in the workplace and the resulting problems gave me an early insight into the power of cultural differences and the serious negative consequences of ignorance and ethnocentrism. Why Is National Culture Important in Organizations?Organizations are operating in a global environment that has increased competition throughout the world. Countries can no longer depend on a protected domestic market while at the same time exporting to other countries to protect jobs and generate revenue. Trade barriers have come down, and countries have made significant changes to their trade policies. Now, more than ever, organizations must do everything possible to become or remain competitive.Culture involves pervasive and deeply held implicit beliefs. Because cultures vary and different societies do not share all the same values, it is reasonable to believe that individual behavior will also vary across cultures. And there is ample evidence that national culture will have an affect on behavior at work. Cultural norms influence a manager's behavior, as well as an employee's behavior and reactions to managerial and organizational actions. Based on their research findings, L. Gardenswartz and A. Rowe (2001) identified five areas that they considered to be particularly important in organizations operating across cultures: hierarchy and status, group versus individual orientation, time consciousness, communication styles and patterns, and conflict resolution.