One of the factors that are likely to affect the running of the new organizations is the clash of European and American cultures. Culture clashes are central to personnel management issues and in their extreme form can make or break an organization (Ulrich, 1996, p 36). For instance, France is a country with a strong Catholic Church tradition that makes Sunday a strict off work holiday. Whereas America is itself a God fearing country, the essence of religion is not as emphasized in daily life as it is. The Catholic Church does have its other holidays such as Ash Wednesday, Palm Sunday, Christmas and the most popular in France is the day of patron saints of given towns (CIA, 2009). Any work arrangement must take into consideration that the native employees may find it hard to cooperate fully when it comes to working on such days.Culture also determines the kind of leadership that will exist in an organization. Power distance is defined as the extent of inequality in a society. The power distance is said to be higher in a society with higher levels of inequality. Where the difference in lifestyles between the poorest and the richest in society is very wide, the poor are far away from power and authority and thus tend to expect to be told what to do. Where the inequality differentiation is lower, leadership tends to be more consultative and thus democratic (Hofstede, 1991, pp 26-27).