THE INFLUENCE OF CULTURE ON MANAGEMENT PRACTICES OF MULTINATIONAL FIRMS

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ABSTRACT

            It is a well-known fact that business organization develops a particular work practice and management attitude, which reflect their shared values, aspirations and goals. A workforce is made up of people with diverse values. The more the organization accept these values the higher the morale productivity of the employee. This is easier when members of this organization are drawn from the same cultural configuration. The culture of people which constitute the organization would wish to express their diverse values and expects that such be respected.

            Culture constitutes the spiritual consciousness of people and it is deep rooted in their life. Their rituals are part of their daily lives and they will give their best to those who will make them grow and allow them to retain their basic core values. However, in a multinational workplace there are power bases and corporate culture are influenced by the culture of the power base. In most multinational organizations in Nigeria, the culture of the host country determines how work is done.

            The study discovered that management practices are influenced by culture, the cultural orientation of the company’s management determines the management practice they adopt. Where there is multinational orientation, the management practice causes the workforce to stretch in other to align to the culture being practiced by the organization, this is however, unproductive.

            The work of this research is reported in chapter five. Chapter one laid down the basic philosophy necessitating the study as well as the nature of the problem, it stated the basic questions it aimed to answer. The second chapter discussed various lectures on the subject. Chapter three presented the method adopted, while the remaining chapters presented the outcome of the study and made useful conclusion.

TABLE OF CONTENTS

Title Page                                   …                     …                     …         I

Dedication                               …                     …                     …         ii

Certification                   …                     …                     …         iii

Acknowledgement                           …                     …                     …         iv

Abstract                          …                     …                     …         vi

Table of contents                          …                     …                     …         viii

CHAPTER ONE:       INTRODUCTION

  1. Background Of The Study            …                     …         1
  2. Statement Of Problem          …                     …         4
  3. Objective Of The Study                                 …                     …         6
  4. Research Questions                        …         7
  5. Significance Of The Study             …                     …         7
  6. Scope Of The Study                    …                     …         9
  7. Limitation Of The Study                     …                     …         9
  8. Definition Of Terms                  …                     …         10

References             …                     …                     …         12

CHAPTER TWO: LITERATURE REVIEW                        

  • Introduction                                    …                     …         13
  • Culture And Management              …                     …         15
  • Major Findings On Culture               …                     …         18
  • Cultural Forces                                             …                     …         20
  • Issues Of Management                  …                     …         25
  • Management Of Human Resources      …                     …                     …         26
  • Human Resources Theories                     …                     …                     …         29
  • The System Theory                                    …                     …                     …         35
  • The Implications Of Human Resource Theories         …                     …         35
  • Role Of Management                                …                     …                     …         36
  • Different Corporate Culture For Differentiation       …                     …         37
  • Nigerian Culture, Work Practice And Management …                     …         39
  • Assessing The Influence Of Culture       …                     …                     …         41
  • Multinational Company                           …                     …                     …         44
  • Managerial Philosophy                             …                     …                     …         46
  • Instance Of Cultural Influence                …                     …                     …         47

References                                                   …                     …                     …         50

CHAPTER THREE: RESEARCH METHODOLOGY

  • Research Methodology                            …                     …                     …         52
  • Delimitation Of Population                     …                     …                     …         52
  • Sample Size Determination                     …                     …                     …         52
  • Sources Of Data                                         …                     …                     …         54
  • Research Instruments                               …                     …                     …         54
  • Method Of Analysis Of Data                   …                     …                     …         54

References                                                   …                     …                     …         55

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

  • A Brief Historical Background Of Selected Companies        …         56
  • Data Presentation And Analysis             …                     …                     …         65

CHAPTER FIVE: SUMMARY, RECOMMENDAATION AND CONCLUSION

  •      Summary Of Findings              …                     …         80

5.1      Findings      …                     …                     …         80

5.2      Conclusion     …                     …                     …         83

5.3      Recommendation   …                     …                     …         84

            Bibliography                     …                     …                     …         85

            Questionnaire              …                     …                     …         90

CHAPTER ONE

                                                            INTRODUCTION                                               

1.1      BACKGROUND OF THE STUDY

Management is an issue that has invited a lot of study aimed towards finding ways of achieving results/attaining desired goals. It is an instrument used by organization to achieve specified goals. It is been influenced by diverse environment, social, political, economic and psychological factors. Organizations use it to plan, organize, direct and control the entire human, material and financial resources available to them.

It concerns the various practices and activities which result from the process of combining the resources available to the organization’s work attitude and practice. This identified way of doing things in the organization is the organizations culture.

Modern organizations are in themselves cultural entities, with their own values and share practices. Noticeable are their policies, objectives and decision – making processes. All these constitute the company’s corporate culture.

Corporate culture or company culture can be seen as the shared practices and values of an organization. The organization operates in a cultural environment, which it seeks to serve, and from where it draws its resources to achieve its goals. The environment has its own values and practices, which it seeks to protect. The two cultures are always exerting influences on each other. This they do as they seek to achieve their various interests enshrined in the economic and social contract binding their relationship.

In this relationship, the organization draws its resources from the environment, and the environment meets its needs from the services provided by the organization.

One of the most valuable resources which the organization draws from the environment, it people. The individuals inside the organization have their own values, interests, beliefs and norms. Having come from somewhere, the specific culture and value system usually have bearing on their work attitude and practices.

In an organization that cuts across tribes or cultures, the cultural values are brought together within the organization’s culture. This implies that an organization has culture and the various individuals in the organization carry with them their own specific culture into the organization. The presence of this tribal culture often affects or influences the organization’s culture.

The coming together of culture entails the problem of cultural conflicts. It is the interface of a group dominating another, determining work practices and the way of doing things in the organization. It could also result to a group resisting the suppression and negligence of their cultural values. Both reactions to culture will produce a set of management practices, which either reflect the values of the dominant culture or reaction to manage the weak culture. This reaction within the organization resulted to the creation of management activities which are either goal friendly or goal aversive.

In multinational companies, there are many national cultures that make up the co-operate culture. The American culture applies to American businesses in America, British culture for British businesses in Britain and Nigerian culture for Nigerian businesses in Nigeria. If one culture exports its values overseas, it must be realigned to harmonize with local values.

Our task in this study is to examine the influence of culture on management practices of multinational firms in Nigeria and how cultural values can be harnessed at workplace to enhance productivity. The study content will seek to examine the following:

THE INFLUENCE OF CULTURE ON MANAGEMENT PRACTICES OF MULTINATIONAL FIRMS