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Week1 cross cultural management (3)

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  • 1. Part 1: culture and management Objectives 1. Understanding the link between culture and management 2. Determining the effect of culture on the management of business 3. Exploring ways in which cross-cultural effectiveness can be developed. Thai-Nichi Institute of Technology Delete text and place photo here.
  • 2. Determinants of cultures Place a photo of a home you are selling here Learning outcomes: • the concept of culture and the role of norms, and values in determining culture. •The relationship Delete text and place photo here. between culture, organization, and management •The concept of culture at various levels; both national and organizational Thai-Nichi Institute of Technology Delete text and place photo here.
  • 3. What does culture really mean? Culture is learned rather than innate. It is passed down from generation to generation and is the basis of socialization process in childhood when the norms of behavior and the values on which these norms are based are learned (Browaeys & Price, 2011). Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 4. What does culture really mean? Norms and values: Each culture can be seen as having 3 layers: 1. Outer layer which is the “behavioral” or “explicit” level. It’s what you notice immediately when you go abroad for the first time, such as language, food, architecture, houses, buildings as well as communication style. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 5. example Culture Shock - Chinese Americans in China 1. http://www.youtube.com/watch?v=45Llkj58ujY 2. http://www.youtube.com/watch?v=2c3BEO3Ggxg TALIA VS EUROPA 1.http://www.youtube.com/watch?v=uKC4XGGlnRI
  • 6. What does culture really mean? Norms and values: Each culture can be seen as having 3 layers: 2. The second layer contains the norms and values. Every culture has its own system of norms and values. Together, these form the national characteristics of a culture, and act as its framework of reference. Norms are the rules of society, determining what is good or bad with regard to behavior (can be written and unwritten rules of society) Values are what is considered important or unimportant, right or wrong. A value is something experienced inwardly and which is not up for discussion. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 7. example Movies about cultural misunderstandings made by a group of 7 german students. 1. http://www.youtube.com/watch?v=SYbynThuONs 2. http://www.youtube.com/watch?v=glywa5MxbE4 3. http://www.youtube.com/watch?v=vT655h4DS2U
  • 8. What does culture really mean? Norms and values: Each culture can be seen as having 3 layers: 3. Innermost layer. This layer lies at the core of culture’ contains its assumptions and beliefs. These are difficult to describe or explain. When you are asked to justify why you do this or say that, the answer is often: “I don’t know” Example, why do people eat with knife and fork? Or with chopsticks? Well, that’s the way people eat…. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 9. What does culture really mean? Sociologist, Ruano-Borbalan (2002) page 339 concluded that there are 4 categories of the value systems: 1. Traditional society—religion plays an important role…large family is 2. 3. 4. encouraged, individualism rejected, such as many Arab countries Rational society--the interest of individual comes first, birth control is encouraged and authority of the state is recognized, such as Germany A society in which survival is the primary concern—people are not happy, equality between the sexes has little chance, materialism is predominant, such as ex-communist countries. Post-modern society--tolerant and democratic, such as those in Scandinavia and the Netherlands. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 10. What does culture really mean? Politics and norms and values: In many countries, politic as a say in education, dress, manners and many other aspects of daily life. For example, Iran show the degree of political interference in people’s lives there. Students from Iranian universities heavily criticized their highest political leaders and the government’s vice squad for persistently prescribing how Iranians should dress, how they should do their hair and how they should enjoy themselves. For example, when the affair came to light between a US president and an intern working in the white house. There was a call for him to be impeached because he had lied about his relationship with the intern during a formal investigation. The impeachment process stumbled in the Senate and the president was allowed to complete his term of office. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 11. What does culture really mean? Cultural assumptions in management: After social norms and values comes the third layer of culture: assumption. This layer also referred to by Schein (2004) when identifying organizational culture. He defined culture as: “ a set of basic assumptions-shared solutions to universal problems of external adaptation (how to survival) and internal integration (how to stay together)-which have evolved over time and are handed down from one generation to the next” (page 14). Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 12. Levels of cultures In the business context, culture can develop at different levels—within a department or at the various ranks of a hierarchy. A company can develop its own culture, provided that it has was Schein calls “sufficient shared history” (1999). This applies to regions of a country, or regions across countries or grouping of nations when they share a common experiences such as language, religion, ethic origins or even shared historical experience in their development. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 13. Levels of cultures Culture and Nation: Tayeb (2003) makes clear that they are people with a distinctive cultural identity. If culture is defined as a set of historically evolved, learned and shared value, attitudes and meanings, then this has an influence on organizations at both macro and micro level. At macro level, the nation, in terms of its laws and economic institutions, must be taken into account by organization going about their business. They have to consider the measures taken by the state to protect its interests and those of inhabitants. CONT. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 14. Levels of cultures At the micro level, the organization is influenced by cultural elements relating to employer-employee relationships and to behavior among employees. Those wishing to introduce any changes with a view to improving management effectiveness or increasing productivity must take account of these elements when implementing such changes. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 15. Levels of cultures National culture: Tayeb (2003) gives a list of elements and considers the effect at both macro and micro level. She starts with two elements that contribute to the building of a nation and the creation of national cultures: 1. The physical environment 2. The history the nation has undergone Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 16. Levels of cultures Tayeb (2003) refers to “institutions” that contribute to the establishment of a national culture: 1. Family: 2. Religion 3. Education 4. Mass communication media 5. The multinational company Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 17. Levels of cultures Organizational culture: Schein (1990:111) develops his definition of culture when defining organization culture: 1. A pattern of basic assumptions 2. Invented, discovered, or developed by a given group 3. As it learns to cope with its problems of external adaptation and internal integration 4. That has worked well enough to be considered valid and therefore 5. Is to be taught to new members as the 6. Correct way to perceive, think and feel in relation to chosen problems. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 18. Levels of cultures Corporate culture: Meschi and Roger (1994) point out, if an organization develops into a multinational conglomerate, the culture at headquarters may influence that of subsidiaries abroad. In the same way, a firm involved in a joint venture with a company from another country may well find that the presence of the foreign partners influences the underlying culture of the firm. What evolves over time in terms of corporate culture can have as its basis the original organizational culture, or the national/regional cultureor a combination of the two. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 19. Levels of cultures The extent of the influence of corporate culture is disputed among experts in the field. Some regard a clearly defined corporate culture as a key to (multi)national company’s success. Other consider a flexible culture to be the key to success because it can adapt to. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 20. Levels of cultures Professional culture: Professional culture is essentially to do with the set of values shared by people working together professionally, schein (1996:237) talks of 3 professional cultures in management. First, there are the operators who are directly involved in production of goods or the provision of services. Second, there are the engineers, the people who design and monitor the technology behind the production or service. Third, there are the executive, the senior managers who share tacit assumptions regarding the daily realities of their status and role. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 21. Conclusion This chapter has shown how difficult it is to give a definition of the word “culture” which can be considered at various levels. Also, the individuals in a group form a culture that can be national, organizational or professional. This implies that across cultural management has to take into account all of these contexts, not only within organizations, but also in relations with companies of different countries. Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 22. Homework 1. Managing an organization also involves managing HR. these resources are not static: employees can move to another position, or leave an organization, or be replaced. Ideally, any newcomers will adapt to the culture of the company or at least respect it. Give your comments on the statement above. Then answer the question: can a corporate culture be managed? If so, explain what needs to be done for it to be managed. If you believe it cannot be managed, explain why? Due: 6/11/2013 on my table before 12:00 pm Please write your name, ID, and section Thai-Nichi Institute of Technology tiwa@tni.ac.th
  • 23. vdo Thai-Nichi Institute of Technology tiwa@tni.ac.th