3 Oct 2022

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How Culture Impacts Organizational Dynamics

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There are various factors that influence how an organization operates. Culture is among these. Today, thanks to globalization, organizations have served as platforms for the interactions of different cultures. For instance, most organizations today have culturally diverse workforces. In these organizations, employees from different cultures are forced to abandon their differences and work together to fulfill the mission and strategies of the organization. For the most part, cultural diversity fuels organizational growth and employee satisfaction. However, this diversity could also spark tensions and conflict. To insulate the performance of their organizations against the damaging effects of cultural conflict, leaders need to properly manage different cultures. Kellogg Brown & Root (KBR) is among the organizations that have been successful in their management of cultural diversity and this firm has leveraged the cultures of its stakeholders to drive its growth.

Description of Organization 

KBR is a large and complex organization involved in the provision of professional services and technologies to firms in different industries. Headquartered in the United States, this firm has a global footprint as it has established operations in more than 40 countries (“Our Company”, n.d). The number of customers to which the firm delivers services and products is in the tens of thousands. These customers are scattered across the globe. Technologies and hydrocarbons services are the main areas of the firm’s operations. While governments make up a bulk of the customers that the firm serves, it also offers its services to firms in the energy industry. One of the key forces that have driven KBR’s growth is the importance that it attaches to cultural diversity. Its thousands of employees are from a wide range of different cultures and they have managed to work together to pursue the firm’s mission.

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Job Description 

I have worked for KBR as a Quality Assurance Manager Professional. In this role, I encountered numerous opportunities to understand the firm’s operations. My primary mandate in the organization involved ensuring that the firm’s International Contingency Operations were in line with set quality standards and align these standards with the policies and strategies of the US Army which had operations in Iraq. In particular, I was required to develop and oversee the implementation of standards that would guarantee the health and safety of the firm’s employees. Furthermore, my job required me to drive the company’s strategic planning process by serving as an expert on various subjects that concern, safety, health and the environment . Another responsibility that I was assigned involved working with employees scattered across 29 sites that KBR operates to ensure that they fully understood the firm’s quality standards. I was placed in charge of the operations in Iraq and my duty here concerned promoting safety by conducting inspections and performing training. While posted in Iraq, I experienced first-hand, the clashes that can occur when an American firm imposes its values on a people whose culture is vastly different.

Kohl’s 13 Values 

There are a number of scholars who have shared their views on the cultural profile of the American people. Among these scholars is Robert Kohls. He identified 13 values that he believed defined the American people. These values are consistent with the operations, principles and mission of KBR. The desire to gain control over the environment is one of these values. Kohls observed that Americans do not surrender their lives to fate. Instead, they take steps to ensure that their environment works for them. This value is reflected in the operations of KBR. The company has been proactive in its business endeavors. Instead of waiting for opportunities to avail themselves, it has ventured into risky markets that other firms have shunned. The second value that Kohls identified as being characteristic of American culture concerns change. He felt that Americans recognize that change is a necessary force for growth. However, he noted that some older Americans are more reluctant to embrace change. KBR demonstrates the value of change through its innovative spirit. This firm has spearheaded the adoption of technologies and solutions that have allowed it to operate efficiently. Timeliness is another value that Kohls associated with American culture. He asserted that most Americans are timely and place more focus on accomplishing tasks over interpersonal relationships. KBR embodies this value. It requires all of its employees to execute their mandates faithfully and does not entertain time wastage, lateness or absenteeism.

Equality, individualism and privacy and self-help are other value that Kohls believed defined the American people. He noted that most Americans believe in the equality of all men and find that social classes pose a threat to the American society. Furthermore, Kohls believed that a majority of Americans are individualistic and cherish their privacy. Collective action is not common in the country as most people prioritize and pursue their individual needs. According to Kohl, the American culture encourages people to work hard instead of depending on others. These values are manifested in KBR. For example, the firm has adopted a fair recruitment policies through which all candidates are treated equally. On the issue of individualism, the firm deviates from the American culture. It encourages its employees to form close and cordial relations through which they collaborate on assignments. Furthermore, whereas the firm offers support to its employees, it challenges them to exploit their individual strengths and talents for personal and professional growth.

Free enterprise and competition, future orientation and action/work orientation are other values that Kohls felt characterized the American people. According to Kohls, the American people are fiercely competitive and are convinced that through competition, individual strengths and competencies are revealed. Kohls also felt that Americans are deeply hopeful and optimistic as they expect the future to deliver improvements. He also shared that most Americans believed that they have an obligation to take action to address the issues that they face. KBR’s operations are largely a reflection of these values. For example, the company’s leadership fully supports the principle of free enterprise and incentivizes its employees to work harder for attractive rewards. However, the firm has taken steps to ensure that the competition among its employees does not yield animosity. On the question of future orientation, the company has developed a strategic plan through which it intends to exploit the opportunities that the future will provide. Moreover, this company is constantly looking for new opportunities to secure its future. KBR also understands that unless its stakeholders take initiative, it will be impossible for any progress to be made. For instance, all employees are required to commit to the firm’s mission and go beyond the call of duty when responding to the challenges that the firm faces.

In addition to the values discussed above, Kohls shed light on informality, directness, practicality and efficiency, and materialism. He argued that these values form part of the American nation. The typical American tends to be casual even in situations where some level of formality is required. Additionally, instead of being subtle, most Americans are rather direct, open and honest. Kohls also described Americans as being realistic and placing focus on efficiency. He also noted that these people tend to pursue material possessions. With regard to these values, the culture that KBR has adopted differs from that of the American people. While the company pursues efficiency, it requires employees and senior leaders to respect formal rules and guidelines. For example, it has adopted a strict dress code that all employees must honor. Instead of prioritizing the acquisition of material wealth, the firm places focus on interpersonal relationships and most of its employees join the American people in being direct and practical.

Hofstede’s Six Dimensions 

In an earlier section, it was noted that KBR has a global presence. For an international company to be successful, it needs to ensure that its operations in a particular country are in line with the culture of that country (Madlock, 2012). Hofstede’s six dimensions are among the tools that firms can use to align their practices with the cultural profile of the markets in which they operate. The six dimensions are power distance, individualism vs collectivism, masculinity vs femininity, uncertainty avoidance index, long term orientation versus short term orientation, and indulgence vs restraint (“The 6 Dimensions”, n.d). Power distance is concerned with how the people in a particular culture regard hierarchies, inequalities and distribution of power. On this dimension, KBR has a low score. The company has made tackling inequalities a priority and it has taken steps to ensure that all its employees feel valued and respected. Top leaders concern themselves with the struggles and personal lives of lower-ranking employees. Individualism vs collectivism involves the sense of community within a particular culture. As noted earlier, KBR values collaboration and team work. This firm believes that its goals can only be accomplished when all stakeholders are involved. It scores highly on collectivism. Masculinity vs femininity is a measure that is concerned with such values as cooperation and modesty. In cultures where masculinity is valued, individuals are encouraged to display toughness. On the other hand, feminine-leaning cultures tend to promote modesty and tenderness. KBR mixes the two elements. Toughness is required in situations requiring resolute action such as when the company is confronted with a serious crisis. The firm calls on its employees and leaders to be tender in dealing with sensitive issues such as helping employees to navigate personal struggles.

Uncertainty avoidance involves how a culture responds to risk. There are some cultures that are risk-averse and others that are more accepting of risky ventures. KBR’s culture is one of risk-loving. The firm has ventured into territories and ventures that are full of uncertainty. It understands that its future lies in its ability to make bold and risky moves. Long term orientation vs long term orientation is a dimension that focuses on whether a culture prioritizes present needs or agonizes over what the future holds. For the most part, KBR has adopted a long term orientation. While it attends to urgent and pressing issues, it has set its focus on future growth. It is constantly developing new technologies and solutions that it believes will guarantee its future given the turbulent changes that the industry is undergoing. The dimension of indulgence vs restraint is concerned with how a particular culture either promotes or discourages involvement in the pursuit of pleasure and gratification. KBR allows its employees to pursue interests that bring them joy. However, it does not hesitate to remind them that their primary obligation is to safeguard the interests of the company.

Cultural Challenges 

The complex environment in which firms operate presents challenges that companies should anticipate and take steps to address. Some of these challenges are of the cultural variety. In order to achieve sustainable success, companies must manage different cultures and ensure that they co-exist in harmony (Samovar et al., 2012). In my time at KBR, I have witnessed a number of cultural challenges which have to be fixed. One of these challenges concerns ensuring that the policies that it adopts are consistent with the values and cultural beliefs and practices of its employees and customers. In some of the markets, the company has struggled to provide customers with services that aligned with their expectations and cultural backgrounds. For example, the company has taken its formal approaches, focus on timeliness and its highly competitive spirit into markets where customers and employees are more relaxed and feel that interpersonal relationships are more important. As a result, it has struggled to gain the trust of these employees and customers. In a previous section, I noted that I was posted in Iraq where I was mandated with monitoring safety issues across various sites the KBR operates in conjunction with the US military. I observed how the military cultures clashed with that of KBR. Furthermore, I was able to confirm that KBR’s strategies and practices often clashed with the cultural beliefs and practices of Iraqi citizens and businesses.

In conclusion, KBR’s success can be attributed to its ability to navigate cultural complexities in the markets where it operates. This company clearly understands that business success hinges on cultural intelligence and responsiveness. Its operations and policies are an accurate reflection of the values of the American people as outlined by Kohls. The Hofstede dimensions also allow one to understand how KBR has been able to accomplish success in an intensely competitive industry. If it is to sustain this success, the company must align its mission, policies and strategies with the respective cultures of the markets where it operates.

References

The 6 dimensions of national culture. (n.d). Hofstede Insights. Retrieved March 24, 2019 from https://www.hofstede-insights.com/models/national-culture/

Kohls, R. (n.d). The values Americans live by. Lehigh University. Retrieved March 24, 2019 from https://careercenter.lehigh.edu/sites/careercenter.lehigh.edu/files/AmericanValues.pdf

Madlock, P. E. (2012). The influence of power distance and communication on Mexican workers. Journal of Business Communication, 49 (2), 169-184.

Our company. (n.d). KBR. Retrieved March 24, 2019 from https://www.kbr.com/about/our-company

Samovar, L. A., Porter, R. E., McDaniel, E. R., & Roy, C. S. (2012). Communication between cultures. Boston: Cengage.

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StudyBounty. (2023, September 14). How Culture Impacts Organizational Dynamics .
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