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The organisation’s culture and the national culture of the area where a company operates have the capacity to influence the success of the company. Success of a company or even an individual depends on the culture that the organisation assumes. The culture of any organisation is made up of the norms and the values that the organisation holds. In most of the cases, a culture is mainly but from the many years of experience or as a result of the repetitive action by the members.
The organisations that have sound cultural practices have the potential of attaining high levels of performance. Therefore, in order for any organisation to develop and attain the desired level of competitiveness, the organisational structure has to consider the impact of the internal and external cultural influences on the practices and performance of the organisation. The paper will focus on Coca-Cola Company since it has operations in virtually all the areas in the world. The paper will analyse the organisational structure adopted by Coca Cola Company in terms of its adherence to the tenets proposed by Hofstede and how far the organisational structure of the organisation is effective in the attainment of the organisational goals. The paper will also look into the possible areas of improvement that are required of the organisation.
Coca Cola is a beverage making company that has a global presence. It also acts as a marketer and distributor of the non-alcoholic drinks in its brand array. The company is popular for the flagship product Coca-Cola. The organisation of Coca-Cola is peculiar in that Asa Candler builds its success on the franchises that it has been operating since the incorporation of the company. The company has a major presence in the global market whereby it operates in 200 countries selling over 400 brands. In the franchises system, the company only produces the concentrate syrup that is then sold to the bottlers of the company that are spread all over the countries where it has operations Hofstede, 2001).
The main secret behind the success of the company on the global arena comes from its commitment to work according to the tastes and beliefs of the people that are around it. This is espoused in its mission whereby it acknowledge that the world is dynamic and the best way of acquiring the necessary competitive levels is by creation of the correct understanding of the forces that are in play and moving to prepare itself. The company has organised itself based on two aspects; that is, the knowledge that it has about current trends and the anticipated knowledge of the company concerning the most likely outcomes in the future.
The company organizes its sector alongside the tenets of diversity such that it will accommodate all the people in all that it does. It has been particularly keen to provide for the diversity of the human beings. The company also works hard towards ensuring that all the people work towards a common goal. The company has of recently organized its activities towards the visions 2020. According to this vision, the company ought to be better than it is now. The organisation structure of the company in the headquarters is directed towards the attainment of the same goal. The bottlers are seen as the partners for the company since they deal with the distribution of the main product that the consumer takes Hofstede, 2002).
The company would be ill equipped to handle the diversity of the people if it was to operate as a global business empire that takes care of all the activities. This means that the company does not have the potential of handling the issues that are pertinent unless it includes the distributors since they have the real information on the operations of the company. The organization structure that it has adopted has had a significant influence on the mode of operation of the company (Dartey-Baah, 2013). The same organisation structure has been the main source of the competitiveness in the market that has enabled the company to stand out among the peers. The other companies have tried a management system that seeks to control he activities of the bottlers or to involve themselves in the activities undertaken by the bottlers but have ended up failing.
This means that the success elements that have affected the company on a large scale have been due to the original organisation of the company and the relations that it has created with the other players in the market. The mere appreciation of the outside suppliers as the main members in the success of the company have led to the development of a culture that seeks to involve itself with the affairs of the other players in the supply chain while reducing the common approach of the management adopted by the other players in the non-alcoholic beverage industry. The view of the members of the supply chain that are in the bottom of the supply chain has led to the creation of competitiveness of the company as a whole (Dartey-Baah, 2013).
The approaches used in the management of the human resources and the general organisation of the company have sought to include the perspectives and needs of the rest of the players in the supply chain. The company has been able to organise its operations in accordance to the expectations of the people (Hofstede, 2011). The organisational culture of the company may draw a lot from the west but the company has operations in all the areas of the world. The imposition of the culture that the company upholds in the headquarters to all the people will be uncalled for since the people that the company deals with are from the diverse regions of the world and they have different individual and national cultural organisation. The company tries to avoid the situation that was described by Hofstede as the uncertainty avoidance.
The impositions of the cultural orientations of the company that is used in Atlanta will be a sure recipe for uncertainty. The company has advanced this approach to all that it does even in the advertising such that it has the relevance to all the cultural groups that it sells it product to (Dartey-Baah, 2013). The company’s ability to adopt cultural dimensions and incorporating them in the management approaches has led to the creation of the seamless unity between the cultural diversity and the superior economic performance (Hofstede, 2011). The company has been able to distribute the power that the people have when undertaking the operations at the company such that it has led to the creation of the best relationship with the people. This approach has been instrumental in the reduction of the power distance and abolishment of the feeling that the company is imposing itself on the people (Dartey-Baah, 2013).
Dartey-Baah, K. (2013). The Cultural Approach to the Management of the International Human Resource: An Analysis of Hofstede's Cultural Dimensions. International Journal Of Business Administration, 4 (2).
Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online Readings In Psychology And Culture, 2 (1), p. 8.
Hofstede, G. (2002). The pitfalls of cross-national survey research: a reply to the article by Spector et al. on the psychometric properties of the Hofstede values survey module 1994. Applied Psychology, 51 (1), pp. 170--173.
Hofstede, G. H. (2001). Culture's consequences. Thousand Oaks, Calif.: Sage Publications.
A culture can be said to compromise of shared values, behaviors, rituals and beliefs. Organizational culture is extremely important as it unites employees by bringing them together and giving them what can be described as a sense of direction. There are several important elements of culture that I have observed in previous companies that I have worked for, firstly, it is rites and rituals. For example, the celebrations, performances as well as activities that are used in order to reinforce teamwork as well as to give the people a sense of inclusion. These activities included sales meeting, annual parties as well as organization retreats. Another element is the existence of norms such as dress code in the work place. The company had a strict dress code that was not written but every employee observed it in the right manner without being told. These two important elements were extremely important as they enable the sanity of the organization and developed a way of behaving in the organization.
A strong organizational culture is often important as it helps provide community identity, a sense of connection and uniqueness with all the members of the organization (Gallos, 2006). This is extremely important as it increases the performance of the employees as they feel more related to the products and the organization and consequently they work optimally. One way that organizational culture can be measured is through a dimensional approach that describes culture by its position on a number of different and continuous variables. The dimensional approach uses a simple Likert type scale in order for the respondents to indicate their level of agreement with different and diverse predefined statements.
Gallos, J. V. (Ed.). (2006). Organization development: A Jossey-Bass reader. San Francisco, CA: Jossey-Bass. o Chapter 38, “The Leader's New Work: Building Learning Organizations” (pp. 765–792)
Shaw, P. (1997). Intervening in the shadow systems of organizations: Consulting from a complexity perspective. Journal of Organizational Change Management, 10(3), 235–250
Hatch, M. J. (1993). Dynamics of organizational culture. Academy of Management Review, 18(4), 657–693
Culture is varied across the world. In fact, different areas in the world have cultures that sometimes are directly opposite to that of others. Therefore, given The East computer company’s present personnel policies, the company might have difficulties in that the policies are tailored for the United States, and it considers the culture of the United States. The transportation of these policies abroad into areas of different culture might prove problematic given the fact that those people will automatically find that indeed there is a difference in the way things are handled in that country (Ogura 59). For example, when it comes to the recruitment policy, every country often has different recruitment policies. The hiring of the employees often depends on upon which cultural attitude the country uses. Ethnocentrism might arise, and this is where it is seen that a certain cultural attitude is considered to be superior that others. In fact, when organizations expand their businesses they often tend to follow the same policies as well as practices in the host country that they followed in the home country. This is exactly what has happened in East Computer company, and the employees might feel negative about such a cultural attitude as they often find it very narrow and self-centered. Further, the selection process often differs from a country to country. There are some countries that follow an extensive process like Asia. However, other such as the United States follow the short selection process. Therefore, this might prove particularly problematic when it comes to the East computer company exportation of its domestic policies abroad (Ogura 48).
The first thing to do is to ensure that the company tailor makes the recruitment policy for each country that the company is working in. This will ensure that the employees do not feel that their culture is inferior, and they are more likely to believe that indeed the company has their best interests. The selection policy often varies from a country to country. There are often some countries that follow extensive selection process, and others short selection process (Singelis 78). There is a need to tailor make the selection policy to fit the foreign country culture. The compensation policy often has to take into account various aspects such as tax and cost of living. There is often a vast difference when it comes to the tax structure, the retirement policy, and the pension scheme. Therefore, when determining compensation, there is a need for the HR manager to consider all the above aspects (Valsiner 32). When it comes to leadership and promotion, some countries often follow a formal, informal and others have a tall structure. There are those that have a centralized structure while others often have the decentralized system. This difference in leadership style often makes manager’s roles more challenging. The decision-making structure is often more centralized in for example Germany as compared to the U.K. Therefore, there is a need to ensure that all these cultural differences are changed from the domestic policy when exportation is being done (Ogura 49).
When it comes to promotion and motivation, there is a need to examine the culture of that country. For example, Americans give more importance to work and less importance to riches and wealth (Valsiner 39). However, Mexicans often give more preference when it come to self-achievement and Riches. Therefore, there is a need to tailor make the promotion policy based on this method. For countries such as Norway, there is a need for the company to have a clear understanding of these cultures to formulate the promotion strategies to this view.
Mexico follows the extensive selection process whereas Norway, Australia, and the United States follow the short selection process. Further, in countries such as Norway, the screening process is followed by sessions with a professional psychologists whereas these does not tend to happen in the U.S, Australia or Mexico. Regarding issues such as leave, there is a need to examine the cultural attitudes of the specific countries towards the issue. For example, maternity leave in Mexico and the United States differs widely, therefore, when developing such policies it is important to ensure that indeed the attitudes of the specific country are taken into consideration. It is critical for the management policies for example in Australia to comply with the employment, workplace health and safety of other related legislation to b applicable in the jurisdiction that the organization is operating in. Therefore, when East Company is examining the different countries policy, there is a need to be aware of the legislation that applies in the jurisdiction (Valsiner 32). At a minimum in Australia, Norway, United States and Mexico, there is a need to examine the specific employment and labor standards, the privacy legislation, human rights, the worker’s compensation and the occupation health and safety. East Computer Company should also be aware of how the legislation in the specific country may be applicable in the workplace such as the provisions for releasing staff to vote on an election and also relevant legislation relating to unions.
Ogura, Seiritsu, Toshiaki Tachibanaki, and David A. Wise. Labor Markets and Firm Benefit Policies in Japan and the United States. Chicago: University of Chicago Press, 2003. Internet resource.
Singelis, Theodore M. Teaching About Culture, Ethnicity & Diversity: Exercises and Planned Activities. Thousand Oaks: Sage Publications, 1998. Internet resource.
Valsiner, Jaan. Culture in Minds and Societies: Foundations of Cultural Psychology. , 2007. Internet resource.
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