KINGSTON UNIVERSITY

“Organizations need to become more creative and innovative

if they want to succeed in the global sphere.” Discuss.

Managing people and organizations

Ermias Tefera
Abstract
Development in communication, travel and transport has connected our world like never
before. Capitalizing on technological developments organizations have fueled the globalization
process at an extremely fast pace. As these companies grow they are forced to deal with the
diverse cultures and people in the world. In their expansion their identities are changing and
becoming more fluid. Scholars have further articulated the presence of hybrid organizational
identity.

If not dealt with, the existence of hybrid identity can lead to poor communication, planning and
lack of leadership in the organization. United States International University is one organization
that exhibits the existence of hybrid identity. The university strives to deliver an American
standard education with a global perspective. In practice the members in the board room and
front line staff have a different perception in the objective the university is trying to achieve. To
some extent variance in perception has led to compromise in quality of education it provides. In
order to be competitive organizations should streamline their sense of identity across all levels.
Therefore organizations should become more adaptable to the continuous need to adapt to the
environment.
Introduction
The word has now become a global village” I believe the term global village has been one of the
most over used terms in explaining the globalization to the world. Through rapid development
in communication, transport, education and technology the world is integrating like we have
never seen before. For the latter half of the 20 th century and beginning of 21st century our world
is shrinking reducing distance of between nations, societies, and the general population.
Technological advances in transport communication, and other areas have increased our
interaction with different parts of society. Through increased interaction we are beginning to
share our values, language beliefs, symbols and learnt knowledge that define our society. In the
interaction of cultures we are constantly learning from each other or at least that is the premise
of globalization.

“Globalization describes the process by which regional economies, societies, and cultures have become
integrated through a global network of political ideas through communication, transportation, and
trade” (Goh, 2009)

In many articles advocates of globalization attempt to explain the potential benefits of

globalization offers. Crucial players in the globalization of the world are MNC’s. In their
expansion the roles of nations in running their economies are diminishing with time. Some of
the MNC’s like British petroleum (BP) have assets the size of 5 developing nations; their
immense wealth has provided them with the power to dictate our life style, culture and most of
all our economies. Some countries have tried to block these MNC’s from entering their markets
only to buckle under the pressure of IMF and World Bank that are present for the “wellbeing”
of all countries. A lot of leaders in these countries are persuaded by the potential benefit of
globalization. In reality a number of researchers have proved the regression of developing
economies, in the past two decades. An extract from (quote KK’s book) explains the actual
reality of globalization. A current study by Milanovic, a leading economist summarizes the
trends of the past 20 – 25 years:

“China and India pulled ahead. Latin America and Eastern Europe – the middle income
countries decline and Africa’s position became even worse. The rich world (western countries)
grew relatively fast. As for within – nations inequalities, they increased almost everywhere. We
are witnessing the Africanization of poverty; many of them are actually poorer than they were
in the 1960’s. (Milanovic 2007: 33 emphases on original)

In their continued conquest to expand, organizations are forced to deal with a variety of factors
to ensure their success in the market. Organizations are beginning to understand the diversity
and differences when working across various nations. In order to cope with the differences that
arise organizations have introduced a number of strategies. The standardization of their
policies, procedures and strategies have somewhat contributed to the homogenization effect of
culture. Homogenization suggests that globalization is contributing towards the loss of diversity
(Goh, 2008). Dahringer and mulgbacher 1991 are one of the scholars advocating the
homogenization of cultures and the loss of diversity (Goh, 2008). Their argument assumes as
modernization increases so will the structural uniformity of societies.

Never before have organization been forced with the aspect of factoring culture and diversity in
making their decision. The vast majority of varying cultures, languages, values, and symbolism
form the diverse population we have in the world. To steer their companies successfully
through this turbulent environment, managers will have to be flexible, and adjust their
strategies to fit the environment they operate in. Through introduction of these strategies, they
are starting to change essential features that are believed to be central, enduring and
distinctive to the formation of an organizational identity.

Literature review
“Organizational identification reflects the specific ways in which individuals define themselves
in terms of their memberships in a particular organization” (Cole&Bruch 2006)

Multinational corporations (MNC) have been important tools driving globalization all the way
into the 21st century. A number of these large corporations have expanded to other nations in
search for greater market share and higher margins. In their constant expansion to other
markets companies are struggling to cope with varying cultures, concepts and way of doing
things. Hence their sense of identity is being constructed and redefined throughout their life
span. AS MNC’s expand they are forced to work in a range of different cultures. These
organizations are forced to change their identity in order to manage complex and turbulent
environment. Recognizing that an organization’s identity is socially constructed, theorists have
begun to consider the concept of organization identity to have a sense of continuity and fluidity
(Cole & Bruch 2006).

Current identity constructs of organization are heavily based on westernized influences. The
problem in constructing OI based on westernized management concepts is that it ignores the
fundamental role of culture plays. Webber stated that current management concepts devalue
the influence of culture in the successful implementation of organization identity and policies
(Goh 2009). The lack of factoring culture in forming organizational identity could possibly affect
the OI strength. Irrespective of the accuracy of these perceptions scholars have argued they
influence job attitudes and behaviors. The level of OI strength is manifested in the employee’s
sense of their organizations history, traditions, symbols, practices, and philosophy (Cole &
Bruch).

The most essential features of an organization identity are based on its history; it is important
to understand its identity is always in the making. The definition mentioned above of
organizational identity clearly states how identity of a company is created based on
perceptions. However it’s essential to understand that members perceptions are continually
changing due the constant information we receive and interpret based on our understanding.

Following the argument of organizational identity based on perceptions, Cole & Bruch have
stated the difference in employee’s perception of organizational identity across different
hierarchical structures. Cole 2004 found striking difference between how top level leadership,
middle-management and front line employees perceived who the organization was, where it
was going and what organizational characteristics were crucial. Hence the research concluded
varying hierarchical level leads to the creation of different impression the organizational
identity. Multiple identity results in the creation of parallel frames of identity between top level
and front line members of an organization. Confusing the organizational identity could possibly
lead to poor communication, lack of planning and asymmetric leadership. The overall effect
could directly affect organizations performance in general. In many cases the overall Mission,
vision, and objectives of the organization are designed by top management to communicate the
direction of the organization. Following on Cole’s argument of difference in perception, the
performance of the organization might not be stream line to meet the needs of the market they
operate in (Hsu and Hanna, 2005).

United States international university (USIU- Kenya)

The research in to the formation of organizational identity showed the formation of multiple
constructs of organizational identity. One such organization that exhibits multiple identities is
International universities based in developing countries. Higher education institutions in
developing countries have begun to integrate into the world community to meet with global
demands (Yang 2003). Their integration does not imply poor quality of education on their side.
However global rankings in Business weekly and financial times forced these institutions to
ascribe to a superiorly perceived standardized system.

USIU-K fits into the category of American universities in developing countries. Based in Nairobi
Kenya it is one of the oldest private schools in Eastern Africa. USIU is a branch of the parent
university based in San Diego. The university traces its history to 1969 when it was granted
presidential charter by Jomo Kenyata. During its initial phase it was situated in a small building
in downtown Nairobi. In 1991 the campus moved to its current location in the outskirts of the
city.

As a branch of the San Diego campus USIU-K is expected to deliver similar teaching styles,
techniques, and standard of education. To ensure the consistency in the standard of education
USIU-K is accredited by WASC (Western Association of School and Colleges).

Throughout most of its history USIU was only recognized by WASC (western association of
schools and colleges). Hence its mission, vision and values are based on its American heritage.
At a strategic level USIU seeks to become the premiere institution of academic excellence. This
is reflected in the philosophies and Americanized ways of teaching. The curriculum of the
university is based on providing its students an American standard education with a global
perspective. However in practice how global is the education it is providing? At board level, the
leaders (Mostly American) want to provide an education that adheres to the international
standards based on management concept and theories that have been created and practiced in
an American setting. However if the teaching system, books, and other tools used in providing
the education is based on American principles, to what extent is the curriculum “global”. To
maintain the accreditation of WASC, USIU will need to follow certain standards.

Take for instance the Master’s in Business administration (MBA) program thought at its
campus. It’s one of the degree programs that is supposedly thought with a global perspective.
Armstrong and Krasnostein described the MBA as one of the most standardized university
program by curriculum and teaching material. Webber stated the convergence of education as
one of the factors contributing to the homogenization of cultures and loss of diversity. He even
went a step further to state the MBA as being one of the products enabling standardization of
education (Goh 2009). Throughout the program students are exposed to traditional Anglo
Saxon/European paradigms and maxims which are reflected in most management principles.
The fundamental flaw in standardization is the western based managerial philosophy and
practices, which does not take into account diversity of cultures. To adhere to the set
standards, the Vice chancellor (VC) and others at strategic level seek to translate the strategic
decisions into the day to day activities of the university. In doing so, the design and delivery of
their programs are purely based tailored to meet expected standards.

The MBA course is delivered using western management text books and case studies. In a two
year span students are thought theoretical and practical solutions to managing business based
on scientific approach. Even the case studies used in the program are based on practices of the
west, ignoring important aspects in teaching the students on how to implement their
knowledge within their local culture. In its mission statement USIU states the importance in the
discovery and application of knowledge. But if the program it provides is confined to western
principles at what stage is it promoting discovery of local knowledge. Even though it states the
need for creativity and discovery of new facts, in practice the students are not provided with a
favorable environment to implement the mission statement in practice.

Perhaps, a key factor that causes misdirection of strategy is the difference in the perception of
organizational identity between top levels (board members) and front line staff (Lecturers) that
deliver the education to students. Most of the teachers the university provides are very well
known and respected lecturers that have a strong view in the deliverance of the education.
These lecturers have been working in predominantly Kenyan (local) educational institutions for
a better part of their careers. Their ability to deliver the program based on American principles
is limited due to their perception and values they possess. In class these lecturers expect to be
addressed to in a formal context, creating somewhat of a buffer on class participation and other
aspects. This goes against the American approach of having participative class sessions and two
way communication in class. Lack of communication and interaction in class has affected the
universities ability to implement its mission statement.

Most of the international students that enroll in USIU come with the view of receiving an
American degree in Kenya. Conversely, these students forget to take into account the influence
of the local cultures, values and the role accrediting institution play in shaping the identity of
the university. Nevertheless to the outside members of the organization USIU stands to be a
truly American university. During the course of their program any difficulties international
students face is termed “culture shock” hence it is expected they will change their values to the
current.

Conclusion
In the 21st century organizations are starting to understand the true impact diversity plays in
shaping their organizations identity. As they expand at a pace never seen before, there identity
is having somewhat of fluidity and continuity. Their identity is always in the making and can be
altered and changed through the change in the member’s perception. These perceptions are
heavily influenced by the people’s cultures and background history they work within. In many
cases organizations view themselves as operating with a global perspective. But, most fail to
understand that global perspective is heavily influenced by western concepts. Hence they
operate under the assumption of global when in reality they are imposing western concepts,
lifestyles and values on to their members. Webber described this as the homogenization
process of cultures.

Moreover organizations have to understand that diversity leads to the formation of several
impressions of identities across hierarchical levels. This especially applies to Multinational
corporations working in different nations and cultures. In the case of USIU we have seen the
construction of multiple identities present among members (staff) of the university. Although
the top level management of the university seek to deliver an American standard and style of
education, their strategy and ideals are not implemented in practice. Since the delivery of the
program was done predominantly by Kenyan lecturers their culture plays a significant role in
the education process. Albert and Whetten identified the formation of a particular type of
hybrid identity is formed when organizations are present in to seemingly incompatible systems
(Fiol, 2002). One value system being normative emphasizing traditions, symbols and
internationalization of ideology and the other a utilitarian which is characterized by economic
rationality and self-interest(Foreman and Whetten, 2002).

Similarly what we see in the case of USIU is the formation of a similar hybrid identity. Failing to
understand these aspects can lead to the formation of parallel frames of an organizations
identity. In doing so, the performance of the organization is severely hampered. Multiple
identities could possibly result in ineffective communication, poor planning and no leadership.
Hence organizations run somewhat like a car full of people where nobody knows the driver.

For USIU the lack of coordination and understanding between its members result in students
that do not receive a streamlined curriculum. On the one hand they are thought used
westernized management concepts but they still do not get the chance to understand the
ramifications of applying these concepts in a utilitarian value system. Furthermore formation of
different identities could very well threaten the employees’ job performance and adaptation to
change. In a highly turbulent environment they also have to understand the need of their
organizations to adapt to change. Poor Organizational identity strength can be an impediment
during times of change where lack of dedication from all members result in catastrophic results
for the organization. In order to stay competitive in the market and capitalize from diversity
organizations need to build an identity suited to the environment.
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