Leader in Globalized Workplace The Role of National Culture

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It is no coincidence that globalization enables organizations to compete for scarce resources and customer preferences internationally. globalization leads to and facilitates reduced labor costs, lower costs of manufacturing and marketing, and greater demand for products and services, especially from the third world countries (Bartlett Ghoshal 1989. Harris Morgan 1996). Apparently, leaders working in global organizations need new skills and knowledge to manage these organizations through the global change. Unfortunately, in light of the emerging globalization trends, the significance of national culture gradually wanes. The absence of geographical boundaries erases the existing cultural differences among employees. Yet, it is at least wrong to assume that globalization eradicates the effects of national cultures on individual-level outcomes. this being said, leaders in globalised workplace need a cultural intuition and understanding of the main cultural conventions affecting their followers. globalization and culture: Hofstede assumptions and their limitations in globalized workplace National culture have always been one of the central measures of effectiveness in organizations. With the advent of international organizational forms, national culture has come to exemplify an important source of influences on individual employee outcomes and one of the central objects of organization analysis. Hofstede’s model of cultural influences on organizations has become the seminal element in the evolution of cultural knowledge in organization research. Since then, most of the research on culture has focused on identifying the core cultural values that differentiate cultures (Erez Gati 2004, p.584). Hofstede (1980) and Schwarz (1999) are rightly considered as the gurus in the analysis of cultural values and their implications for organizational and workplace behaviors. Hofstede’s study of national culture is one of the most frequently cited works in the research of national culture and its effects on organizational performance. In 1980 Hofstede published the results of a broad survey of almost 120,000 personnel from a large multinational company in the U.S., where he proposed a system of the national culture dimensions to measure and predict the relationship between culture and employee performance in the workplace (Hannerz 1992. Hofstede 1980). The central implication of Hofstede’s study is that national cultures as clusters of shared norms, values, and beliefs greatly affect and actually predict the way employees act in the workplace. In other words, depending on the cultural belonging of the employees, his (her) workplace behaviors and reactions can be modeled in advance. For example, individuals born and operating in masculine culture are prone to value competition, performance, and success, whereas those born in feminine cultures are more likely to value caring, warm social relationships, and quality of life (Hofstede 1980. Leung 1989. Rohen Shenkar 1986). The individualism-collectivism dimensions presented by Hofstede (1980) allow defining the degree to which employees are group- and socially-oriented.