An organization is a social unit of people that is structured and managed to meet a need or to pursue collective goals. The organizations operate according to overall values, or priorities in the nature of how they carry out their activities. These values are the personality, or culture, of the organization.
All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems - they affect and are affected by their environment.
The organisations (culture) can be looked from two different dimensions namely collectivistic dimension and individualistic dimension. The collectivistic dimension attributes highest importance to one’s workgroup and cultures advocating a collectivistic dimension expect individuals to sacrifice their own interest for the good of all. And, the individualistic dimension reflects the belief of a philosophy that encourages independence by rewarding individuals for performance and by making individuals accountable for their actions.
Thus, individuals with the hierarchical cultural orientation are more likely to perceive HRD/HRM practices endorsing empowerment unfavourably unlike individuals with individualistic orientation who prefer autonomy over hierarchical authority. Additionally, individuals with a collectivistic orientation might perceive team based performance management and development initiatives favourably unlike the ones with individualistic orientation who believe in independent contributions to work.

A driving force within a collectivist culture is cooperation so as to attain group goals and safeguard group welfare. An individualistic culture emphasises self-sufficiency and control, the pursuit of individual goals that may or may not be consistent