Management is consisted of interlocking functions, which are used to frame organizational policies for controlling and directing the people and activities of an organization. National culture has huge influence on the shaping the culture, leadership and strategies of an organization (Guiso, Sapienza and Zingales 2015). The values, belief, norms and customs of the society have high level of impact on the behavioral patterns of the organizational members. The study will select two organizations; one from New Zealand and other from China. Moreover, study will choose Air New Zealand from New Zealand and China Eastern Airlines from China. The study will discuss the impact of national culture on the company culture of both the organizations. The study will also describe the impact of national culture on the leadership style of both the organizations. Furthermore, the study will highlight on the influence of national culture on the organizational strategies and structure of both the organizations.
National culture is highly influential and shapes the internal culture of an organization. It highly influences the practices of an organization. Moreover, the value, norms, ideologies, beliefs and customs of the people actually form the behavior of the organizational members (Hogan and Coote 2014). Air New Zealand operates a global network, which provides air passenger services as well as cargo service both within New Zealand and international countries (Airnewzealand.co.nz 2017). On the other hand, China Eastern Airlines is the second largest airline in China, which also operates in international basis (En.ceair.com 2017). The influence of national culture on organizational culture can best be highlighted through Hofstede cultural model. The organizational culture in both the organizations is highly influenced by the ideologies of the founders, which are shaped from the values, assumption and beliefs of that founder.
According to Nica (2013), the national culture of New Zealand represents high level of social stratification within the society. However, there is no formal class structure. In this way, this culture is highly reflected on the organizational culture of Air New Zealand. The organization follows rigid organizational culture for managing the employees. Moreover, the employees are to be very formal in dealing with the upper management. Moreover, O’Reilly III et al. (2014) in rigid organizational culture, the employees often feel uncomfortable to express their issues, which can lead to major organizational issues. On the other hand, Glisson (2015) opined that social stratification in China is quite less. Therefore, the organization culture of China Eastern Airlines reflects a collaborative approach. Moreover, B?schgens, T., Bausch and Balkin (2013) opined that the employees of this organization feel highly comfortable in dealing with the upper management. As per Huhtala et al. (2015), the management of Air New Zealand follows individualistic approach for getting adequate productivity for each of the organizational members. However, such culture can create issues in regard to solving complex organizational problems. On the other hand, Aier (2014) opined that China Eastern Airlines follows collective approach in managing the employees. Moreover, the employees are to work in a team, where the employees can get adequate help of each others from the team.
According to Wei, Samiee and Lee (2014), both New Zealand and China are highly concerned about providing equal power to male and female employees. In this way, both Air New Zealand and China Eastern Airlines are follows modest and caring approach for the female employees. On the other hand, Glisson (2015) opined that Air New Zealand is highly open to the innovating ideas for getting success in the organization. On the other hand, Hogan and Coote (2014) opined that China Eastern Airlines considers the unique ideas of the employees in the business decision making process. In this way, both the organization is quite successful in their business by creating competitive advantage through innovation.
Influence of National Culture on Leadership
According to Strom, Sears and Kelly (2014), power is often unequally distributed in the national culture of New Zealand. This national culture is highly reflected in the leadership style of Air New Zealand. The power of is mostly restricted within the organizational leaders. Moreover, the leaders are not much willing to provide equal power to the employees. Moreover, the leaders follow transactional leadership style, where they follow reward and punishment policy for getting desired productivity from the employees. However, Giorgi, Lockwood and Glynn (2015) opined that transaction leadership followed in Air New Zealand often discourage the low productive employees towards enhancing their productivity. The punishment policy of transactional leadership often lowers the morale of the low productive employees, which can enhance the chance of employee turnover. On the other hand, Huhtala et al. (2015) opined that power is equally distributed in the national culture of China. Therefore, the leaders of China Eastern Airlines follow transformational leadership style, where organization power is equally distributed among the employees. The leaders delegate some authority to the employees for controlling their own jobs.
As per Hogan and Coote (2014), due to the caring nature of national culture, the leaders of Air New Zealand are quite supportive and democratic in nature. Though the employees are to work with an individual approach, still the employees get enough support from the leaders. On the hand, Giorgi, Lockwood and Glynn (2015) the people of China has high sense of harmony and caring approach. Therefore, the leaders are also influenced by this values and norms of the society. In this way, the leaders China Eastern Airlines are also highly supportive to the employees and use team approach for assisting the employees in their complex task. As per Auernhammer and Hall (2014), the national culture of New Zealand is highly assertive in nature and very aggressive for getting achievement. Therefore, the leaders of Air New Zealand mostly create individual challenges for encouraging the employees towards increasing productivity. On the other hand, B?schgens, Bausch and Balkin (2013) opined that the national culture of China is highly friendly and harmonious. Therefore, the leaders of China Eastern Airlines follow collaborative and group approach for gaining better productivity from the employees.
Influence of National Culture on Business Strategy and Organizational Structure
The national culture of New Zealand is quite assertive and power is often unequally distributed in the society. This culture actually reflects on the organizational structure of Air New Zealand. According to Aier (2014), the Air New Zealand follows hierarchical organizational structure, where power is actually restricted within the upper management. Moreover, the employees are to deal more formally with their mangers for communicating anything. In this way, there is high chance of employee confliction, as the employees do not get enough opportunities for sharing their issues with the managers. On the other hand, the national culture of China reflects on cooperative and harmonious approach. Strom, Sears and Kelly (2014) stated that China Eastern Airlines follows open and flat organizational structure, where employees can freely communicate with their managers. However, such organizational structure can create power struggle related issues, as powers are not specifically defined in this organizational structure.
According to Wei, Samiee and Lee (2014), national culture of New Zealand is somewhat conservative and the people are quite conservative at their first meetings. Moreover, the people used to believe in realistic figure before buying any products and services. For example, Air New Zealand never uses high-pressure sales tactics and always uses realistic data in the promotional strategy for attracting the customers. On the other hand, Giorgi, Lockwood and Glynn (2015) opined that national culture of China reflects in highly masculine and success oriented. For example, China Eastern Airlines follows aggressive sales strategy for gaining huge profit from the airline business. However, aggressive sales strategy can often lead to negative impression on the mind of customers because of aggressive nature.
The people of New Zealand always want quality on the products or services, which they purchase or opt. As per Wei, Samiee and Lee (2014), Air New Zealand always provides top quality on the airline service for creating competitiveness.
Therefore, the organization is always focused on product strategy through innovation for gaining customer attraction. On the other hand, the people of China are always high price sensitive and seek benefits from the products and services.
The business strategies are aligned with the values of the people. Moreover, Auernhammer and Hall (2014) pointed out that China Eastern Airlines always focus on the price strategy and keeps the price of the service low for gaining increasing market share.
While concluding the study, it can be said that national culture significantly shapes the organizational culture. The national culture of New Zealand is highly individualistic and this culture is reflected on the organizational culture of Air New Zealand. The organization follows individualist culture within the workplace and the leaders create individualist challenges for encouraging the employees towards enhancing productivity. On the other hand, the national culture of China is high harmonious and friendly. Therefore, China Eastern Airlines follows team approach in the organizational culture and the leaders follows transformational style for encouraging employees towards better productivity. Power is often unequally distributed in New Zealand. Likewise, Air Zealand follows hierarchical organizational approach, where power is restricted within upper management. On the other hand, due to harmonious approach of China’s culture, China Eastern Airlines follows flat organizational structure, where organizational power is equally distributed. Both the organizations have long-term approach towards building organizational strategy.
Aier, S., 2014. The role of organizational culture for grounding, management, guidance and effectiveness of enterprise architecture principles. Information Systems and e-Business Management, 12(1), pp.43-70.
Airnewzealand.co.nz. 2017. Air New Zealand: Book Flights NZ & International Online. [online] Available at: [Accessed 11 May 2017].
Auernhammer, J. and Hall, H., 2014. Organizational culture in knowledge creation, creativity and innovation: Towards the Freiraum model. Journal of Information Science, 40(2), pp.154-166.
B?schgens, T., Bausch, A. and Balkin, D.B., 2013. Organizational Culture and Innovation: A Meta?Analytic Review. Journal of product innovation management, 30(4), pp.763-781.
En.ceair.com. 2017. China Eastern Airlines. [online] Available at: [Accessed 11 May 2017].
Giorgi, S., Lockwood, C. and Glynn, M.A., 2015. The many faces of culture: Making sense of 30 years of research on culture in organization studies. The academy of management annals, 9(1), pp.1-54.
Glisson, C., 2015. The role of organizational culture and climate in innovation and effectiveness. Human Service Organizations: Management, Leadership & Governance, 39(4), pp.245-250.
Guiso, L., Sapienza, P. and Zingales, L., 2015. The value of corporate culture. Journal of Financial Economics, 117(1), pp.60-76.
Hogan, S.J. and Coote, L.V., 2014. Organizational culture, innovation, and performance: A test of Schein's model. Journal of Business Research, 67(8), pp.1609-1621.
Huhtala, M., Tolvanen, A., Mauno, S. and Feldt, T., 2015. The associations between ethical organizational culture, burnout, and engagement: A multilevel study. Journal of Business and Psychology, 30(2), pp.399-414.
Nica, E., 2013. Organizational culture in the public sector. Economics, Management, and Financial Markets, 8(2), pp.179-184.
O’Reilly III, C.A., Caldwell, D.F., Chatman, J.A. and Doerr, B., 2014. The promise and problems of organizational culture: CEO personality, culture, and firm performance. Group & Organization Management, 39(6), pp.595-625.
Strom, D.L., Sears, K.L. and Kelly, K.M., 2014. Work engagement: The roles of organizational justice and leadership style in predicting engagement among employees. Journal of Leadership & Organizational Studies, 21(1), pp.71-82.
Wei, Y.S., Samiee, S. and Lee, R.P., 2014. The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market. Journal of the Academy of Marketing Science, 42(1), pp.49-70.