Differences in Organizational Structure
In individualistic cultures organizations are essentially instruments. They have been deliberately assembled and contrived in order to serve individual owners, employees and customers. Members of organizations enter relationships because it is in their individual interests to do so. Their ties are abstract, legal ones, regulated by contract. The organization is a means to what its actors want for themselves. In so far as they cooperate, it is because they have particular interest at stake. Each performs a differentiated and specialized function and receives extrinsic reward for doing so. Authority originates in an individual’s skill at performing tasks, and an individual’s knowledge is used to make the organizations instrument work effectively.
In communitarian cultures the organization is not the creation or instrument of its founders o much as a social context all members share and which gives them meaning and purpose. Organizations are often likened to a large family, community or clan which develops and nurtures its members and may live longer than they do. The growth and prosperity of organizations are not considered bonanzas for individual shareholders or gravy-trains for top managers, but are valuable ends in themselves.
Practical tips for doing business in individualist
and communitarian cultures
Recognizing the differences
IndividualismCommunitarianism
- More frequent us of “I” form.1. More frequent use of “We” form.
- Decisions made on the spot by2. Decisions referred back by delegate
Representatives to organization.
3. People ideally achieve alone and 3. People ideally achieve in groups which
assume personal responsibility. assume joint responsibility.
4. Vacations taken in pairs, even alone.4. Vacations in organized groups or with
extended family.
Tips for doing business with:
Individualists (for communitarians)Communitarians (fro individualists)
- Prepare for quick decisions and1. Show patience for time taken to
sudden offers not referred to HQ. consent and consult.
2. Negotiator can commit and is very2. Negotiator can only agree tentatively and may
reluctant to go back onwithdraw an undertaking after consulting
an undertaking.with superiors.
3. The toughest negotiations were3. The toughest negotiations are with the
probably already done within thecommunitarians you face. You must somehow
organization while preparing for thepersuade them to cede to you points, which the
meeting. You have a tough job sellingmultiple interest in your company demand.
them the solution to this meeting.
4. Conducting business alone means that4. Conducting business when surrounded by this person is respected by his or her helpers that this person has high status in his
company and has its esteem.or her company.
5. The aim is to make a quick deal.5. The aim is to build lasting relationships.