How Corporate Cultures Differ Around the World

Between 2017 and 2019, an assessment was carried out to gather information about the cultural profiles of HBR readers. The assessment received over 12800 responses from people all over the world. 43% of the responses came from countries other than North America. 

 

In this assessment, each organization was ranked in eight distinct cultural styles, which map onto two dimensions: how people respond to change (flexibility vs stability) and how people interact (independence vs interdependence). The eight cultural styles ranking from the most salient is caring, results, purpose, learning, safety, order, authority, and enjoyment. According to the ranking results, organizations in different regions prioritize the first and second organizational cultural styles differently. Organizations in Africa ranked learning and purpose as the most important styles for people responding to change. This suggests that African organizations are more open to change through innovation, agility, and a respect for diversity. Organizations in Eastern Europe and the Middle East, on the other hand, preferred stability. In these areas, safety is the top priority in terms of cultural style. Many organizations, particularly in the Middle East region, ranked highly in terms of authority. Organizations in Western Europe, North and South America, and Asia tend to be independent when it comes to people interacting with each other. Western Europe and North America valued results and were goal-oriented. South America ranked highest for enjoyment. Organizations in Asia and Australia tended to be more interdependent. Asian businesses prioritized order, caring, and safety. 

 

The purpose of this assessment is to remind employees of how their personal styles reflect or differ from the regional cultural pattern, and how these behaviors are perceived by others. Managers, on the other hand, are reminded that employees' implicit values and beliefs could perhaps lead to misunderstandings and tension. Cultural differences and divergent expectations may become the root cause of workplace frictions. Managers should not assume that one style will suit all employees. Nowadays, understanding the cultures that exist within the organization is critical for effective management.

Source:       How Corporate Cultures Differ Around the World. (2020, October 21). Harvard Business Review. Retrieved October 13, 2022, from https://hbr.org/2020/01/how-corporate-cultures-differ-around-the-world