2.

7 Corporate Culture
The term ‘corporate culture’ takes the question of organizational culture a step further. As
Maeschi and Roger (1994) point out, if an organization develops into a multinational
conglomerate, the culture at headquarters may influence that of subsidiaries abroad. In the
same way, a firm involved in a joint venture with a company from another country may well
find that the presence of the ‘foreign’ partners influences the underlying culture of the
firm.what evolves over time in terms of ‘corporate culture’ can have as its basis the ‘original’
organizational culture, or the national/regional culture-or a combination of the two.
The extent of the influence of corporate culture is disputed among experts in the field.
Some regard a clearly defined corporate culture as key to a (multi-) national company’s
success. Others consider a flexible culture to be the key to success because it can adapt to,
and respond more effectively to a local/national environment.
Although it is useful to know where the countries in question lie on the dimension of
national culture when working with other cultures, there are other factors at play, particularly
the culture of the company itself. This is determined not just by external cultural factors such
as the national and regional cultures, but also by internal cultural factors. The extent of
cultural control, through company goals, manuals, instructions and the presence of long
standing empoyees, is important.

2.8 Professional Culture

The nature of the line of business the company is in may have an important influence on the
corporate culture as well as the professional culture attached to key positions within the
organization. Professional culture is essentally to do with the set of values shared by
peopleworking together professionally. Schein ((1996) talks of three professional cultures in
management. First, there are the ‘operators’ who are directly involved in production of
goods or the provision of services. Second, there are the ‘engineers’, the people who design
and monitor the technology behind the production and/or provision of services. Those who
share this culture tend to show a preference for solutions where systems rather than people
are involved. Third, there are the ‘executives’, the senior managers who share tacit
assumptions regarding ‘the daily realities of their status and role’.
The question of how these professional cultures co-exist with an organization
preoccupies many scholars. How do the executives handle the ‘operators’ and ‘engineers’?
how best to manage conflict constuctively? To what extent is delegation and empowerment
desireable? What styles of management are appropriate?
2.9 Culture and Management
At the basis of all the cultures mentioned lies the individual’s culture. It is individuals who
ultimately form the culture of an organization. The values they embody as members of an
organozation are formed partially through the family, social and national environment, and
partially through the professional, organizational and corporate culture.
It is up to management to take into account the diversity of people in an organization and
to manage their cultural differences. In an international context, however, what does cross-
cultural management mean?
Adler (2002) gives a definition of what cross-cultural management is about:
Cross-cultural management explains the behavior of people in organizations around the
world and show people how to work in organizations with employees and client
populations from many different cultures. Cross-cultural management describes
organizational behavior within countries and cultures; compares organizational behvior
across countries and culture; and, perhaps most important, seeks to understand and
improve the interaction of co-workers, managers, executives, clients, supllies, and
alliance partners from countries and cultures around the world.

The important of cross-cultural management is evident in a world where all kinds of co-
operation between companies in many countries is on the increase. Whether these are
mergers, takeovers, partnerships or strategic alliances, they all need to be analysed in cultural
terms, not only to determine where benefit can be gained, but also where difficulties may
encountered when companies are working together.