ADMS 2320 Lecture Notes - Lecture 27: Nepotism, Profit Maximization, Organizational Culture
30 Apr 2018
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ADMS 2320 Lecture 27 Notes – Tecmo Koei’s Culture
Introduction
• Although these practices are cosistet with Teco Koei’s culture, they do ot fit
Canadian culture very well.
• It’s kid of like school, says oe Caadia eployee.
• The management of ethical behaviour is one area where national culture can rub up
against corporate culture.
• Canadian managers tend to endorse the supremacy of anonymous market forces and
implicitly or explicitly view profit maximization as a moral obligation for business
organizations.
• This worldview sees bribery, nepotism, and favoring personal contacts as highly
unethical.
• Any action that deviates from profit maximization may indicate that inappropriate or
corrupt behaviour may be occurring.
• In contrast, managers in developing economies are more likely to see ethical decisions
as embedded in a social environment.
• That means doing special favours for family and friends are not only appropriate but
possibly even an ethical responsibility.
• Managers in many nations also view capitalism skeptically and believe the interests of
employees should be put on a par with the interests of shareholders.
• Because culture strongly affects performance, organizations that have units in different
countries need to construct and clearly communicate a multinational culture that
focuses on corporate values.
• These values should be unique and separate from identifiable country norms,
emphasize respect and tolerance for cultural differences, and address the issue of
cultural identity.
• Globalization can be an opportunity to positively change organizational culture.
• Exhibit 10-6 depicts organizational culture as an intervening variable.
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