Impact of National Culture on Organisational Culture Literature review

Impact of National Culture on Organisational Culture - Literature review Example While Johns (2006) stated that national culture restricts the disparity in the culture of the organisations (Martocchio, & Liao, 2009, p. 4). It is important that organisations around the world should know certain parameters on which cultural difference is based. Cultural differences can be a matter of concern as well as can be advantageous for the organisations. Its effect can have a greater impact on the productivity and functioning of the organisations in global market. The effects of differences between national culture and organisational can may be functional and dysfunctional depending on the situation. As far as dysfunctional effect of culture is considered, innovation and change is affected and group thinking is encouraged (Aswathappa, 2010, p. 176). Literature Review Organisational Culture is the cooperative encoding of the brain that differentiates people from a particular organisation from people belonging to some other organisation. National Culture on the other hand can be defined as the cooperative encoding of the brain that differentiates people of a particular group from the people belonging to other group (Hofstede, n. d). It is believed that culture is a concept but still the forces created in the situations related to organisation culture are said to be powerful. The difference between national and organisational culture may affect an organisation but on the hand it is also noted that there is a strong linkage between national and organisational culture. Moreover, organisational culture derives from national cultures. This signifies the advantage lying in organisational culture being derived from national culture as it would create a better understanding of the working culture in the host country. But, disadvantage associated with it also cannot be denied as the true culture of organisation is subjugated in presence of national culture. Newman & Nollen (1996) have put forth the theory saying managing business with one best possible method is a wrong assumption. Cultural differences in different countries emphasises on different management practices by organisations. Diversity in the culture of organisation and the host country is a sensitive issue. Organisations around the world face challenges in diversified environment with different cultures. Different people have different religious beliefs, come from different ethnic groups, and belong to different countries and most importantly cultural difference. The complexity and the differences that arise between organisational and national culture gives rise to entities which are beyond expectation. It is believed that national culture’s impact on employees is higher than the impact of organisational culture. Every organisation develops a culture of its own in the process of evolution as a global player. Organisational culture development becomes all the more important to overcome the problems related to adaption in external environment. Globalisation on the other han d has made organisations improved entities and their cultures have made significant influence on the employees and their work culture. It is believed that multinational organisations have strong culture to overpower the impact of national culture, thereby helping multicultural people to assimilate in a team (Saiyadain, 2003, p. 262). National cultures cannot be neglected as they have considerable