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The Role of Culture in Economic Development

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Management Accounting

The topic of the coursework is the role of cultural factors in economic development. Besides, the author focuses on the influence of culture on society’s ability to operate various institutions.

To provide the article, Voda (2012) used secondary research.

The researcher chose the topic that has been discussed by many economists. However, its importance is usually ignored during discussion of the economic development. Therefore, the main theme of the article is the importance of culture in economic development. To prove the significant role of culture, the author paid much attention to the determination of reasons for the following hypothesis.

  • The first aspect is the ability of culture to affect the operation of institutions. This occurs because culture incorporates everything that was prominent and durable in the history of a certain society.
  • After integration, it strengthens the already existing trend. Voda identifies four areas where culture influences economic behavior as the second aspect.
  • The third aspect is the importance of various cultures in economic development, not only specific ones. This demonstrates that the role of culture should be considered in the economic development of any society and organization.

Overall, the author supports the generally accepted views. However, experts pay less attention to this aspect. The main focus is usually put on the political situation, resources, and labor forces. Nevertheless, increasing competition has forced organizations to consider this factor as well. Despite the effects of globalization and reduction in cultural differences, the role of culture is expected to be significant. Therefore, the research of Ana Iolanda Voda (2012) is relevant since it responds to current approaches.

Since the author relies on secondary research, she does not describe the methodology of the study, which makes the article easier to understand. Ana Iolanda Voda (2010) communicates information and logically provides her arguments, making even the reader without a high level of expertise be able to understand the main ideas of the study.

The article can be related to many aspects of the management of organizations because the economic development of the country significantly depends on their performance. First, the culture should be considered in the process of working with human resources because people from various cultural backgrounds can have their attitudes to work, as well as such aspects as ethics and professionalism. Second, culture is important in relationships with customers. For example, customer behavior greatly depends on it. Third, global companies have suppliers in many countries, which makes it necessary to remember about cultural peculiarities of all of them. For example, some cultures have a tolerant attitude to corruption and often try to violate the rules and laws if possible or if it can bring them additional finances. Essentially, this paper helped me to receive a general overview of the role of culture in economic development and expand my knowledge about management and organizations due to this aspect.

Organizational relevance of the ideas:

  • Culture affects economic behavior minimum in four ways, such as consumption and approaches to work, capability to build and manage organizations, impact on the institution and production, as well as social networks creation
  • The role of culture should be considered in all major aspects of organization management (e.g. customers, HR, suppliers)

Applications of Internal Marketing in Egypt

The topic of the article is applications of internal marketing in various Egyptian companies; particularly, the author analyzes how internal marketing is used as well as the outcomes of this approach.

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To create the article, the author used a secondary-based research methodology as well as a qualitative-based research methodology. In the beginning, the researcher determined and analyzed international and local organizations that apply internal marketing. The next step of the research was a range of in-depth interviews with top managers of these companies.

The article has a few major parts. First, Shamma (2012) gives a general overview of an internal marketing application in contemporary businesses. Then he analyses cases of internal marketing applications, including international (Southwest, Apple, Dell, and Ritz-Carlton) and local ones (Raya, Mobinil, Eva Pharma, and Vodafone Egypt). After that, there is an analysis of interviews with top management of companies. All the interviewees agree that Egyptian companies have been recently using internal marketing more often. They also admit that internal marketing improves staff’s loyalty to a company. It also positively influences internal communication, which causes an increase in productivity and profits as well as enhances customer satisfaction levels. At the end of the research, Shamma concludes that internal marketing creates a competitive advantage for companies maintaining their reputation. However, the researcher admits that Egypt lacks efficient practices for the implementation of internal marketing. Thus, he believes that it is one of the key problems in this approach. Shamma offers to increase the number of training on marketing for all managers dealing with human resources.

The main themes of the article respond to generally accepted views. In particular, most experts also agree that internal marketing is a source of competitive advantage for organizations relying on building a positive reputation (Blythe 2008). Besides, the author of the article as well as other researchers states that implementation of internal marketing approaches requires specific attention (Blythe 2008). To deal with problems, they suggest companies conduct more training on this strategy for marketing and other managers. Finally, it is a generally accepted idea that internal marketing should be connected with staff’s performance and corporate goals.

As for the style of communication, it is quite easy to understand the arguments provided in the article because they are presented in a logical order. The writer communicates his findings. Moreover, the reader does not need to have prior knowledge because the author uses generally accepted ideas and easy terms.

From the article, I learned how internal marketing can be used in practice. It is helpful that the author analyzes the achievements of the whole country, so it is possible to compare the experience of various organizations. I also learned more about the peculiarities of internal marketing implications in Arabic countries. Moreover, the most difficult aspects of this kind of marketing were elucidated.

Organizational relevance of the ideas:

  • Internal marketing increases the competitive advantage of a company and loyalty of staff
  • Companies should focus on the effective implication of internal marketing
  • Training on marketing is essential for the effectiveness of these practices

The Supply Chain Management and Operations Management

The topic of the article is the improvement of supply chain analytics software as a way to enhance operations management (Boulton 2015). It increases profits. The main idea is to provide customers with their actual needs, not wasting resources on useless operations.

In the process of this article creation, Clint Boulton used financial reports of the companies as well as official statements of their top management. In addition, the author carried out observations, particularly analyzing major trends among supply chain management in the most famous organization. Boulton applied the results of the Accenture survey to support his conclusions about recent approaches to this aspect.

The article contains a few arguments. First, the author provides an accurate analysis of the experience of Columbia Sportswear Company. The company increased investments into supply chain analytics software, which allowed it to raise profits last year. The new software monitors sales, open purchase orders, fill rate of various goods, and location of products in the supply chain. The author also provides a detailed description of Columbia’s financial performance. Second, Clint Boulton states that other companies also search for ways the improve their operations to reduce the gap between product and good. It is believed that modern technologies are the most effective ways to achieve this target due to the significant number of data that should be processed as well as growing customer requirements. Third, the author demonstrates that companies have problems with the implementation of software analytics. Finally, Boulton analyses how Columbia Sportswear solved the problem. Particularly, it uses the SAP system for processing orders and FusionOps for monitoring merchandise from producers to retailers.

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The main themes of the article respond to generally accepted views. Thus, Slack Brandon-Jones and Johnston (2010) state that supply chain management affects organizational management and that proper supply chain management provides on-time delivery of goods and services. This statement corresponds to the ideas of the article. Besides, it is generally believed that efficient organizational management is crucial for financial performance. Boulton proved this by the example of Columbia Sportswear Company.

The style of communication is not aggressive. The author tries to explain ideas logically, making them not complicated. Hence, the reader does not need a high level of expertise to understand the research. Boulton distinctively elucidates the most important issues. First, he explains his main idea about the efficiency of supply chain software analytics. Then he demonstrates how the financial performance of Columbia Sportswear has improved due to this approach. In the end, he strengthens the position by a brief analysis of the use of technologies by other companies.

This article persuaded me that supply chain management is at the stage of progressive improvement, increasing profits, and meeting customer requirements. I did not understand well how supply chain management could be improved before. However, I realized that software analytics implementation is an essential factor to achieve the proper functioning of the supply chain.

Organizational relevance of the ideas:

  • Software analytics can significantly improve supply chain management
  • Manual processing of data is not more effective and does not satisfy customer requirements
  • Supply chain software analytics greatly reduces the gap between product and supply

Development of Human Resource Management

The topic of the article is the development of human resource management in China. The paper discloses the situation in the last thirty-two years and presents possible future trends in the development of HRM (Zao & Du 2012).

The authors used secondary research as well as their observations and statistical analysis to write the article.

The article has a few major themes/arguments. First, the paper concentrates on the changes and practical applications of HRM. Second, the authors present the modification of HRM in China from planned labor and personnel management to current HRM in different periods. Third, the researchers analyze the challenges that HRM has in the context of internationalization, corporate culture, and corporate innovation during the transition of the Chinese economy. Finally, the article focuses on the trends in the future development of HRM in China.

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The main themes respond to generally accepted views. In particular, the transition from personnel management to HRM is common for many economies and is described by many researchers. Besides, it is also a typical approach that HRM is influenced by a company’s corporate culture and the process of internationalization.

The authors communicate their ideas very clearly, so it is easy to understand major arguments. The article presents general knowledge on the topic. Thus, the reader is not required to have a high level of expertise to understand the main points.

The article allowed me to understand better how HR has been developing by the example of China. Another benefit of this paper is the clear determination of major reasons for HRM development and major challenges it faces. Thus, HRM deals with economic globalization, universality, complexity, social knowledge, and instability. This creates new requirements and expectations for HRM. In the case of China, HRM specialists are supposed to develop their companies enhancing learning, motivating the use of innovative approaches to the work, encouraging staff to apply global thinking practices, and hiring skilled personnel with global leadership capabilities. Development of abilities of employees working in HRM is also necessary.

The Chinese experience of HRM development and its current status reflects the main features of HRM that are common for other developed countries. First, HRM is strategic and coherent, which denotes the integration of business and HR strategy, as well as unites and supports HR practices (Pettinger 2007). Second, HRM involves loyalty to corporate values and missions. Third, human resources are now recognized as valuable assets. Thus, companies spend significant resources on their development. Finally, modern HRM requires management and employees to have the same values. However, unlike lectures and seminars, the main focus in the article was made on the development of HRM in one specific country. Therefore, I could understand better the mechanisms of HRM and the importance of some of its aspects.

Organizational relevance of the ideas:

  • HRM professionals should hire people with global leadership capabilities
  • Senior management needs to invest resources into the training of HRM specialists because their abilities to search and hire appropriate staff affect the overall performance of a company
  • Training of the rest of employees is also important because people are currently important assets of a company
  • HRM specialists should motivate employees to use global thinking practices in their work.

Current Systems and Possible Changes of Management Accounting

The topic of the article is a modern practice of management accounting in Indonesia and its expected trends in the next five years (Jermias & Armitage 2000). The research also contains the part about factors that affect the current management accounting.

To write the article, the authors used primary research. The survey instrument was used to gather data. The study includes two phases. The first phase is an analysis of the current system of management accounting in Indonesia and the extent to which management accounting is expected to change. The second phase is testing various hypotheses concerning the effects of different factors on management accounting innovations in Indonesia.

There are a few major themes/arguments in the article. First, Jeremias and Armitage discuss the current approaches towards management accounting in Indonesia and provide their predictions concerning changes in this area. Second, the researchers (2000) analyze the connections between management accounting innovation and such aspects as a company’s hierarchy, system design, organization size, financial performance, and several years on the market. The researchers found that companies with increased hierarchy tend to implement innovation into management accounting less frequently. At the same time, companies that focus on process apply management accounting innovation more intensively than companies that focus on functions.

Overall, the ideas presented in the article correspond to generally accepted views. First, the researchers also support an opinion about the importance of management accounting in the decision-making process. In addition, other experts also predict the emergence of new approaches in this field. Finally, most of the researchers admit that the degree to which management accounting innovation is implemented in the company depends on the range of various specific features of this organization.

The article contains the results of the survey, the testing of various hypotheses, and many calculations. In this way, the reader is required to have some prior knowledge about management accounting and be able to understand phrases that are common for academic research. The authors distinctively elucidate their ideas, making it quite comprehensible to realize their position towards the major themes of the research.

The article deals with the popularity of management accounting in Indonesia and factors that influence the number of innovations in this field within organizations. This was not discussed during lectures and seminars. However, I believe that it is valuable information because it helps to understand the role of management accounting in developing countries. As for functions of management accounting in the companies from developed countries, it helps to distribute costs between goods sold and inventories. Moreover, management accounting gives appropriate data to managers for them to make more effective decisions. It also provides data for planning, control, performance evaluation, and constant improvement.

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Organizational relevance of the ideas:

  • Companies that operate in developing countries, particularly Indonesia, often rely on management accounting during decision-making
  • Companies in Indonesia tend to use traditional methods in management accounting, but innovations are expected to gain popularity in the next five years
  • Organizations that have a smaller hierarchy and focus on processes apply innovations in management accounting more often.

The Role of Corporate Ethical Values in the Overall Performance of a Company

The topic of the article reveals the impact of corporate ethical values and the promotion of a code of ethics on an understanding of the role of ethics in the general success of the company. An additional topic of the research is the influence of organizational commitment as well as ethical idealism and relativism.

The authors used observations as well as secondary and primary research to create the article. Such a choice of approaches is caused by the necessity to cover a variety of impacts in two different countries.

The article includes a few themes/arguments. First, the researchers study the effects of corporate ethical values and code of ethics on how employees follow ethical norms and demonstrate professionalism, which has an impact on the overall performance of a company. Another aspect involves the effects of organizational commitment and individual variables (e.g. ethical idealism and relativism). This was done to determine the effectiveness of ethics institutionalization (e.g. some companies make new ethics positions, create corporate codes of ethics and ethics newsletters). To increase the objectivity of the study, Vitell and Hidalgo (2006) conducted the research using participants from two different countries, such as Spain and the USA.

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The main themes of the research conform to generally accepted views. In particular, it is believed that companies that support the concepts of corporate social responsibility create codes of ethics and constantly monitor how their employees execute the ethical norms. This way, the workers gain higher overall performance. Moreover, most of the famous organizations pay much attention to this aspect. Therefore, the institutionalization of ethics proved its effectiveness not only in this research but also in practice.

The authors chose an appropriate style of communication so that their arguments are intelligible. The writers communicate clearly, but the reader is required to have prior knowledge about ethics to understand the study. The research paper contains a specific vocabulary and concepts relating to its topic.

The lectures and seminars also encompass information about the role of ethics in modern business. However, they cover more aspects such as relationships with suppliers, customers, and communities, as well as survival (Pettinger 2007). Therefore, the following article allowed me to gain more knowledge about the use of ethics in relationships with employees. General public opinion forced many companies to incorporate ethics in their management. Nevertheless, not everyone realizes that ethics institutionalization is effective and can increase the overall success of a company. That is why a significant advantage of the article is that it provides research results that prove that companies should continue their activities in this direction. Finally, analyzing the effects of corporate ethical values and enforcement of ethical codes through the example of different countries is also important due to the globalization of business and the necessity to operate in various cultures.

Organizational relevance of the ideas:

  • Companies need to introduce ethics jobs to monitor how ethics are maintained in the company
  • Organizations must create codes of ethics and ethics newsletters
  • If the company operates in various countries, it needs to consider the culture of people during a code enforcement

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