Organizational culture describes the shared psychology, attitudes, beliefs, and values of an organization. It depicts how employees and customers should be treated and the rules that govern employee behavior. Johnson described a cultural web that can be used to identify elements of organizational culture, including the organization's mission, control systems, structures, power dynamics, symbols, rituals and routines, and shared stories and myths. In multinational corporations (MNCs), organizational culture generally follows a role culture model. However, MNCs can face issues like individual differences across countries, multicultural conflicts, and cultural distance that can negatively impact the organization. To mitigate these negatives, MNCs should emphasize the advantages of their culture while working to remove or

1. Organisatonal Culture In
MNC’s

2. Organisational Culture

3. Organizational Culture describes the psychology, attitude,
experiences, beliefs and values of an organization. i.e. it depicts
the below attribute -
 Employees and customers should be
treated
 Rules that dictate the do’s and don’ts of
employee behavior

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7. G. Johnson[6] described a cultural web, identifying
a number of elements that can be used to describe
or influence Organizational Culture:
The Paradigm: What the organization is about; what it does; its
mission; its values.
Control Systems: The processes in place to monitor what is going on.
Role cultures would have vast rulebooks. There would be more reliance
on individualism in a power culture.
Organizational Structures: Reporting lines, hierarchies, and the way
that work flows through the business.
Power Structures: Who makes the decisions, how widely spread is
power, and on what is power based?
Symbols: These include organizational logos and designs, but also
extend to symbols of power such as parking spaces and executive
washrooms.
Rituals and Routines: Management meetings, board reports and so
on may become more habitual than necessary.
Stories and Myths: build up about people and events, and convey a
message about what is valued within the organization.

8. Culture is about how the organization organizes. By the following culture type we
can identify the type of organization
Organizational Culture in MNC :-
In General, an MNC follow a Role Culture model in
today’s global world.

9. Individual
Individual
Differences
Differences
Multiculturalism
Multiculturalism Cross Country Multicultural
Multicultural Organizational
Organizational
Cross Country
Management
Management differences Conflicts
Conflicts Conflicts
Conflicts
differences
Cultural
Cultural
Distance
Distance

10. Individual
Individual
Differences
Differences
Lack of
Lack of
Multiculturalism
Multiculturalism Cross Country
Cross Country
Management
Management differences
differences Multicultural
Multicultural Organizational
Organizational
Conflicts
Conflicts Conflicts
Conflicts
Cultural
Cultural
Distance
Distance

12. Process Flow
Design Plan Build Test Evaluate
• Bullet 1 • Bullet 1 • Bullet 1 • Bullet 1 • Bullet 1
• Bullet 2 • Bullet 2 • Bullet 2 • Bullet 2 • Bullet 2
• Bullet 3 • Bullet 3 • Bullet 3 • Bullet 3 • Bullet 3

13. W AT IS IM ACT OF
H P
ORGANISAT IONAL
CUL URE W H T E
T IT IN H
MNC..???

14. POSITIVE IMPACTS OF
ORGANISATIONAL CULTURE :
Instructions interpreted in
a common way.
High Loyalty.
High Motivation, and
productivity.
Management control is
increased.

16. NEGATIVE IMPACTS OF
ORGANISATIONAL CULTURE :
Conflicts between local and
imported culture.
Business;not a homogenous
culture.
Weak relationship between
strong corporate culture and
business performance.
Business;rarely simple, clear
and unambiguous.

17. WHAT CAN BE DONE TO AVOID
THE NEGATIVES??
Business needs to play down
the disadvantages and play up
the advantages
The ‘way we do things
around here’, sets up
constraints.
Business needs to work
around the constraints or
remove them.