Buddhism is more focused on wantlessness and contemplation and not on work and consumption. Concerning Islam and organisational behaviour we can talk about holidays where normally for Muslims you would get the normal weekend being Thursday and Friday which only leaves three working days and also Ramadan where fasting is involved for a month can led to less productivity. For Christians we can say that Catholicism and Protestantism can have an impact on organisations due to capitalism but saying that capitalism can create continuity within an economic structure.
We will now look at the legal context which talks about the laws of society created by authorities. This will go towards the norms and attitudes of a society. Because different societies have different attitudes towards behaviour than others there will be different levels of regulation. Three types of law exist: 1) Laws of Host Countries 2) International Law 3) Laws of Home countries. Some organisations do not know all the laws and regulations. Countries with the same beliefs will normally tend to have the same legalities.
Also we can say that the history of the country has given the modern world some sort of legal system. Also the creation of an international law which is a similar law between two or more countries gives the tendency to reduce differences and also legalities between countries making it easier fir organisations say for example to import and export goods from one country to another. The laws that are put in your own country may have an impact on the operations of firms in different countries.
These can be exporting where there are many restrictions for example certain countries will not let you trade with other countries for example US with Korea and Cuba and also where a domestic firm acquires a foreign competitor assuming lessened competition which may cause fluctuations in the organisations market share. We can also talk about taxation where different countries have different taxation rates therefore it may be difficult for an organisation to invest in another country.
Lastly we can talk about the political context which is basically where organisations may have to operate in an area of political conflict. The nation state is a political unit. It can also exist in terms of the culture, history. Nations want to increase their economic power which is one of their goals in relative to other nations. This can be fulfilled by the organisations productivity levels and how the nation as a whole communicates with minimal barriers for example language. Nationalism is talking about individuals in which there is loyalty towards your country.
For example we can talk about the September 11th incident where the Twin Towers were hit but loyalty to the country by citizens and fire fighters and organisations helped bring the nation as close to the economic stature as possible. Managers normally ignore nationalism because it may be a burden to their organisation. Here we also have to consider the relationship between the business and the government. If the interaction between the organisation and the state is good then there will be a better emphasis on achieving the economic and organisational goals.
For example Japan has had a successful economy for sixty years due to its interaction and coordination with the state. But there are problems with multinational companies and host government. If a company based one of its chain companies else where in the world the government may have different objectives in how to run the state therefore your objectives may be distorted if it doesn’t coincide with what the state is saying but most of the time the multi national company is focusing on itself being a strong competitor globally and creating economic benefits to do with itself and nothing of the host state.
But because the multi national companies are out for themselves they may exploit the resources in the host country reducing the welfare and in this case the government may then intervene. It is difficult for multi national firms to operate to the norm if there are many political issues that have to be tackled for example conflict between many Middle Eastern countries results in boycotting taking place to firms who do not comply by rules and are loyal to the country.
Multi-national companies need to know the legalities in the host countries or you could be doing something which is alright to do in the domestic market but not in the host market resulting in penalties. A new issue we can bring up now is the effect of national culture on management. A universal management system (sound management) makes thinking more alike between firms therefore national culture would not matter but in reality cultures and differences will always exist that’s why this view is not feasible.
Nationality is important when it comes to management because you get politics coming into the equation in terms of government, rules and regulations etc. Some institutions can differ because if the informalities that are associated with them for example rights of certain people may be better protected in some countries but if they cannot win in the court these rights are useless e. g. France. You also have sociological concerns.
We all have a nationality and this is normally of high value to us and anything is done to protect our nation. We can also talk about psychological values. All people encounter different experiences within different nations. The view of ‘conditioning’ means that certain experiences form certain views for example if someone has seen violence all their life they may form a view of violence that they think is right.
National culture is said to be ‘mentally programmed’. What we mean by this is that what our beliefs, values, attitudes are we are going to stick to them for example we may be able to share the views of our own nation and not of others e. g. freedom of speech. But this type of culture applies for certain nations and can be changed through certain institutions like the government, legal and education systems, religious organisations etc.