Importance of Business Culture in Organizations

Running head: BUSINESS CULTURE
Business Culture
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1BUSINESS CULTURE
Business Culture
Culture is a form of collective social norms, values and rules, which is accepted by a
particular group of individuals. According to a certain definition of culture, it refers to the way
how the people do things in their particular cultural environment, community or country, the
culture of a particular place or group if individuals change with the change of time. Each and
every countries have different ideologies and beliefs and way of life thus it is important to
understand the cultural norms of a particular organization or a country to be able to communicate
effectively for business purposes. Culture is the chief component in a business environment it
helps in devising strategies to carry on with the business. While communicating for business
purposes understanding the national culture is not the only thing o be kept in mind, in the case of
business culture it is very important to begin with the right kind of first impression, the
formalities, and negotiations should be done in a proper way.
Beginning the business relationship with the proper communication is immensely crucial for
the future of the business (Gordon 2017). The culture of different countries may vary to a huge
extent and the managers have to understand how to promote communication between the people
belonging to various cultural backgrounds, if they fail to do so then it can lead to the failure of a
business proposal and end of negotiations. The business culture can be distinguished into two
forms:
 Low Context Cultures: In this type of cultures, the individuals communicate with each
other in easier terms and they mean exactly what they say (Alves, Booth and Fryzel
2016). This type of cultures are rather straightforward in nature there is no ambiguity in
the language spoken. The countries which have low context cultures are USA, Australia
and others.

2BUSINESS CULTURE
 High Context Cultures: These type of cultures are sensitive in the nature of their
communication, in these cultures the method of interaction and behaviour, etiquettes play
a huge role in the circumstances. The people in these countries pay a huge importance in
the attitudes of the individuals. The examples of such counties are Japan, China and other
Asian countries.
Although the cultures of different countries may vary to a huge extent yet there are some
common measures followed for effective cultural business communication. To establish a good
and proper business culture between two organizations belonging to different cultures there are
few business etiquettes that are following commonly by the business persons:
 Understanding the differences between one’s own country and the host country will help
cope with the situation.
 Thanking others at the end of the meeting or any interview is very important and is also
polite thus it helps in creating a positive self-image.
 Providing honest statements while negotiating in a business meeting or while suggesting
a deadline for the completion of a project also helps in enhancing the business relations
(Hogan and Coote 2014).
 One should never lose temper while attending a business meeting, if the point of view of
a person does not match with another then they should resolve it in a calm manner
through proper discussion.

3BUSINESS CULTURE
Main Elements of Business Culture
A healthy and vibrant business environment is something that keeps the business going
on, and makes the people within the organization to be committed to the organizational culture
(Stewart et al. 2017). A proper business culture is promoted through beliefs, plans, ownership
and the results. The following are the chief elements of business culture:
Active and strong beliefs
Money is often a huge motivation for a person to choose a particular organization, but it
is not the only motivation. Most people choose the organizations according to their own values
and beliefs. Individuals choose a particular organization primarily based on what they
themselves feel passionate about and something they know that they can do or achieve and they
crave such an environment where they can find similar minded people (Jondle, Ardichvili and
Mitchell 2014). Similarly if there are certain established core values or beliefs set within an
organization, it will promote a healthy business culture. The people within that organization will
follow and have faith in those core values or beliefs.
Demonstrated Purpose
The purpose of the organization should be often highlighted and demonstrated of the
employees so that they can feel motivated (Dodge et al. 2017). The goals and motives of the
company should be brought into life with the help of various types of support and development
programs. The employees of an organization should be treated in a proper manner ad that will
speak about the culture of that particular organization.
Clarified Objectives