National culture and corporate culture differ in expectations, with national culture relating to a nation’s values and corporate culture to an organization’s structure and management. Globalization can cause clashes between the two, making it important for companies to choose countries with similar cultures or adjust their organizational culture to fit the national culture.
The main difference between national culture and corporate culture lies in the area of expectations with respect to these two separate but related concepts. The two concepts are separate because they represent two different concepts. National culture refers to the values of a nation, which includes aspects such as the matter of morality, dress, food, dance, songs, languages and other related things. Organizational culture refers to the way an organization is structured and managed. It includes factors such as the type of relationship between employees and management, the employee welfare package and the type of behavior the company expects from its employees.
The differences and similarities between national culture and corporate culture are increasingly intersecting with the growth of globalization. The effects of globalization mean that organizations from various nations are setting up shop in different countries. Indeed, the chances of national cultures and organizational cultures colliding negatively are increased when organizations are located in countries with very different national cultures. For example, an organization with an organizational culture that expects its employees to dress only in fine clothing may conflict with the culture of a nation where citizens are allowed to work in traditional dress.
Another area where national culture and corporate culture can collide is in working hours. If a country has a national culture of observing an afternoon rest or siesta for a while, this could clash with an organizational culture that allows its employees to take a 30-minute lunch break. A national culture might expect a pregnant woman to stay home for at least a year after giving birth to care for the new baby. Conversely, the organizational culture might be for a woman to have three months’ maternity leave.
The best policy for a company looking to establish itself overseas is to ensure it chooses countries with national cultures that closely match its organizational culture. In situations where the country in question offers lucrative opportunities for the organization, that organization may need to adjust its organizational culture to fit the national culture of the country. An example is an oil company that mainly bases its offices in countries with crude oil reserves. These type enterprises often consider the difference between national culture and corporate culture. This is because oil reserves might be located in places with national cultures that differ markedly from their organizational cultures.
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