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The main difference between national culture and corporate culture lies in the area of expectations from these two separate but related concepts. The two concepts are separate because they represent two different concepts. National culture refers to the vales of a nation, which includes aspects like the issue of morality, dressing, food, dance, songs, languages and other related things. Organizational culture relates to the way an organization is structured and run. It includes factors like the kind of relationship between employees and management, the welfare package for employees, and the type of behavior the company expects of its employees.
The differences and similarities between national culture and corporate culture are becoming more intersected with the growth of globalization. The effects of globalization mean that organizations from various nations are setting up shop in different countries. In effect, the chances for national cultures and organizational cultures to negatively clash are magnified when organizations are situated in countries with vastly different national cultures. For example, an organization with an organizational culture that expects its employees to dress in smart business suits only may conflict with the culture of a nation in which the citizens are allowed to go to work wearing traditional robes.
Another area where the national culture and corporate culture may clash is in the area of work hours. If a country has a national culture of observing a rest period or siesta in the afternoon for a little while, this may clash with an organizational culture that only allows its employees to have a 30-minute break for lunch. A national culture might expect an expectant mother to stay at home for at least a year after giving birth to care for the new baby. In contrast, the organizational culture might be for a woman to have only a three-month maternity leave.
The best policy for a company trying to establish itself abroad is to ensure that it chooses countries with national cultures that closely match its organizational culture. In situations where the country in question provides lucrative opportunities for the organization, such an organization might have to adjust its organizational culture to accommodate the national culture of the country. An example is an oil company that mostly establishes its offices in countries with reserves of crude oil. These type businesses often consider the difference between the national culture and corporate culture. This is because the oil reserves might be situated in places with national cultures that vastly differ from their organizational cultures.