Organizational culture & Diversity
The Nature of Organizational Culture
 Shared values and beliefs that enable members to understand their
roles and the nor...
Interaction Between National and
Organizational Cultures
 National cultural values of employees may have a significant im...
Organizational Cultures in MNCs
 There are four steps in the integration of organizational cultures in
international expa...
Organizational Cultures in MNCs
 Three aspects of organizational functioning that are important in
determining MNC organi...
Organizational Cultures in MNCs
Person
Emphasis
Task
Emphasis
Equity
Hierarchy
Fullfillment-oriented
culture
INCUBATOR
Pro...
Organizational Cultures in MNCs
 Family culture
 Strong emphasis on hierarchy and orientation to the
person
 Family-typ...
Organizational Cultures in MNCs
 Eiffel Tower
 Strong emphasis on hierarchy and orientation to the task
 Jobs are well ...
Organizational Cultures in MNCs
 Guided missile
 Strong emphasis on equality in the workplace and
orientation to the tas...
Organizational Cultures in MNCs
 Incubator
 Strong emphasis on equality and personaI orientation
 Based on the premise ...
Table 6–3
Summary Characteristics of the Four Corporate Culture
Relationships
between
employees
Adapted from Table 6–3: Su...
Table 6–3
Summary Characteristics of the Four Corporate Culture
Attitudes toward
people
Adapted from Table 6–3: Summary Ch...
Table 6–3
Summary Characteristics of the Four Corporate Culture
Adapted from Table 6–3: Summary Characteristics of the Fou...
International Culture Diversity Focus
Phase1
Domestic
firms
Phase2
International
firms
Phase3
Multinational
firms
Phase4
G...
Table 6–4
The Evolution of International Corporations
Primary Product/service Market Price Strategy
orientation
Competitiv...
Table 6–4
The Evolution of International Corporations
Technology Proprietary Shared Widely shared Instantly and
extensivel...
Table 6–4
The Evolution of International Corporations
Cultural Marginally Very Somewhat Critically sensitivity
important i...
Potential Problems Associated
with Diversity
 Attitudinal problems
 May cause a lack of cohesion that results in the uni...
Advantages of Diversity
 Can enhance creativity, lead to better decisions, and result in more effective and
productive pe...
Multicultural Teams
“Multinational teams do not happen naturally –
on the contrary, the human inclination is to stick
to ...
Why Multicultural Teams?
 Teams with different profiles are more effective than teams of “stars”
 Once settled, multicul...
Team Strategies
 Task Strategies
 Creating a sense of purpose
 Structuring the task
 Assigning roles and responsibilit...
Task Strategies
 Creating a sense of purpose
 What is the team’s mission?
 What are the objectives?
 Can they be measu...
Task Strategies
 Structuring the Task
 How structured should the agenda be?
 How detailed should the rules be?
 What n...
Task Strategies
 Assigning Roles
 Who does what?
 Should a leader be assigned? By whom? On what criteria?
 What is the...
Task Strategies
 Reaching Decisions
 How should decisions be made?
 By vote, consensus, compromise?
 Who should make t...
Process Strategies
 Team Building
 How is trust developed?
 How much time for social activities?
Process Strategies
 Method of Communication
 What is the working language? Who decides?
 How are fluency imbalances han...
Process Strategies
 Eliciting Participation
 How to ensure participation by all?
 Are some members more credible?
 Is ...
Process Strategies
 Resolving Conflict
 How is conflict managed?
 Avoided? Confronted?
 Who accommodates whom?
 Is ne...
Process Strategies
 Evaluating Performance
 How and when to evaluate?
 Is it a two-way process?
 How direct can feedba...
Guidelines for Effectively Managing
Culturally Diverse Groups
1. Select team members for their task-related abilities
2. T...
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Organisation culture n diversity

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  • Organisation culture n diversity

    1. 1. Organizational culture & Diversity
    2. 2. The Nature of Organizational Culture  Shared values and beliefs that enable members to understand their roles and the norms of the organization, including  Observed behavioral regularities, as typified by common language, terminology, and rituals.  Norms, as reflected by things such as the amount of work to be done and the degree of cooperation between management and employees.  Dominant values that the organization advocates and expects participants to share, such as high product and service quality, low absenteeism, and high efficiency.
    3. 3. Interaction Between National and Organizational Cultures  National cultural values of employees may have a significant impact on their organizational performance  Cultural values employees bring to the workplace with them are not easily changed by the organization
    4. 4. Organizational Cultures in MNCs  There are four steps in the integration of organizational cultures in international expansions that result from mergers or acquisition 1. The two groups have to establish the purpose, goal, and focus of their merger 2. They have to develop mechanisms to identify the most important organizational structures and management roles 3. They have to determine who has authority over the resources needed for getting things done 4. They have to identify the expectations of all involved parties and facilitate communication between both departments and individuals in the structure
    5. 5. Organizational Cultures in MNCs  Three aspects of organizational functioning that are important in determining MNC organizational culture 1. The general relationship between the employees and their organization 2. The hierarchical system of authority that defines the roles of managers and subordinates 3. The general views that employees hold about the MNC’s purpose, destiny, goals, and their places in them.
    6. 6. Organizational Cultures in MNCs Person Emphasis Task Emphasis Equity Hierarchy Fullfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE EIFFEL TOWER Role-oriented culture FAMILY Power-oriented culture
    7. 7. Organizational Cultures in MNCs  Family culture  Strong emphasis on hierarchy and orientation to the person  Family-type environment that is power oriented and headed by a leader who is regarded as a caring parent FAMILY Power-oriented culture  Management looks after employees, and tries to ensure that they are treated well and have continued employment  May catalyze and multiply the energies of the personnel or end up supporting a leader who is ineffective and drains their energies and loyalties
    8. 8. Organizational Cultures in MNCs  Eiffel Tower  Strong emphasis on hierarchy and orientation to the task  Jobs are well defined, and everything is coordinated from the top  This culture is narrow at the top, and broad at the base  Relationships are specific, and status remains with the job.  Managers seldom create off-the-job relationships with their people, because they believe this could affect their rational judgment  This culture operates very much like a formal hierarchy—impersonal and efficient and loyalties EIFFEL TOWER Role-oriented culture
    9. 9. Organizational Cultures in MNCs  Guided missile  Strong emphasis on equality in the workplace and orientation to the task  This culture is oriented to work  Work typically is undertaken by teams or project groups  In projects, formal hierarchical considerations are given low priority, and individual expertise is of greatest importance  All team members are equal (or at least potentially equal  All teams treat each other with respect, because they may need the other for assistance  Egalitarian and task-driven organizational culture Project-oriented culture GUIDED MISSILE
    10. 10. Organizational Cultures in MNCs  Incubator  Strong emphasis on equality and personaI orientation  Based on the premise that organizations serve as incubators for the self-expression and self-fulfillment of their members  Little formal structure  Participants in an incubator culture are there primarily to perform roles such as confirming, criticizing, developing, finding resources for, or helping to complete the development of an innovative product or service Fullfillment-oriented culture INCUBATOR
    11. 11. Table 6–3 Summary Characteristics of the Four Corporate Culture Relationships between employees Adapted from Table 6–3: Summary Characteristics of the Four Corporate Culture Four Corporate Cultures Diffuse relation- ships to organic whole to which one is bonded Specific role in mechanical system of required interaction Specific tasks in cybernetic system targeted on shared objectives Diffuse, spontaneous relationships growing out of shared creative process Attitude toward authority Status is ascribed to parent figures who are close and powerful Status is ascribed to superior roles that are distant yet powerful Status is achieved by project group members who contribute to targeted goal Status is achieved by Individuals Exemplifying creativity and growth Corporate Culture Characteristic Family Eiffel Tower Guided Missile Incubator Ways of thinking and learning Intuitive, holistic, lateral and error correcting Logical, analytical, vertical, and rationally efficient Problem centered, professional, practical, cross disciplinary Process oriented, creative, ad hoc, inspirational
    12. 12. Table 6–3 Summary Characteristics of the Four Corporate Culture Attitudes toward people Adapted from Table 6–3: Summary Characteristics of the Four Corporate Culture Four Corporate Cultures Family members Human resources Specialists and experts Co-creators Ways of changing “Father” changes Course Change rules and procedures Shift aim as target moves Improvise and attune Corporate Culture Characteristic Family Eiffel Tower Guided Missile Incubator Ways of motivating and rewarding Intrinsic satisfaction in being loved and respected Promotion to greater position, larger role Pay or credit for performance and problems solved Participation in the process of creating new realities Management by subjectives Management by job description Management by objectives Management by enthusiasm
    13. 13. Table 6–3 Summary Characteristics of the Four Corporate Culture Adapted from Table 6–3: Summary Characteristics of the Four Corporate Culture Four Corporate Cultures Corporate Culture Characteristic Family Eiffel Tower Guided Missile Incubator Criticism and conflict resolution Turn other cheek, save other’s face, do not lose power game Criticism is accusation of irrationalism unless there are procedures to arbitrate conflicts Constructive task related only, then admit error and correct fast Improve creative idea, not negate it Source: Adapted from Fons Trompenaars and Charles Hampden-Turner, Riding the Waves of Culture: Understanding Diversity in Global Business, 2nd ed. (Burr Ridge, IL: Irwin, 1998), p. 183.
    14. 14. International Culture Diversity Focus Phase1 Domestic firms Phase2 International firms Phase3 Multinational firms Phase4 Global firms Source: Nancy J. Adler, International Dimensions of Organizational Behavior, 2nd ed. (Boston: PWS-Kent Publishing, 1991), p. 123.
    15. 15. Table 6–4 The Evolution of International Corporations Primary Product/service Market Price Strategy orientation Competitive Domestic Multidomestic Multinational Global strategy Importance of Marginal Important Extremely Dominant world business important Product/service New, unique More Completely Mass-customized standardized standardized (commodity) Product Process Engineering not Product and engineering engineering emphasized process emphasized emphasized engineering Phases of Multicultural Development Characteristics/ Activities Phase I (Domestic Corporations) Phase II (International Corporations) Phase III (Multinational Corporations) Phase IV (Global Corporations) Adapted from Table 6–4: The Evolution of International Corporations
    16. 16. Table 6–4 The Evolution of International Corporations Technology Proprietary Shared Widely shared Instantly and extensively shared R&D/sales High Decreasing Very low Very high Profit margin High Decreasing Very low High, yet immediately decreasing Competitors None Few Many Significant (few or many) Market Small, domestic Large, Larger, Largest, global multidomestic multinational Production Domestic Domestic and Multinational, Imports and location primary markets least cost exports Adapted from Table 6–4: The Evolution of International Corporations Phases of Multicultural Development Characteristics/ Activities Phase I (Domestic Corporations) Phase II (International Corporations) Phase III (Multinational Corporations) Phase IV (Global Corporations)
    17. 17. Table 6–4 The Evolution of International Corporations Cultural Marginally Very Somewhat Critically sensitivity important important important important With whom No one Clients Employees Employees and clients Level No one Workers and Managers Executives clients Strategic “One way”/ “Many good “One least-cost “Many good assumption one best way” ways” Way” Ways” equifinality simultaneously Adapted from Table 6–4: The Evolution of International Corporations Phases of Multicultural Development Characteristics/ Activities Phase I (Domestic Corporations) Phase II (International Corporations) Phase III (Multinational Corporations) Phase IV (Global Corporations) Source: Nancy J. Adler, International Dimensions of Organizational Behavior, 2nd ed. (Boston: PWS-Kent Publishing, 1991), pp. 7–8.
    18. 18. Potential Problems Associated with Diversity  Attitudinal problems  May cause a lack of cohesion that results in the unit’s inability to take concerted action or to be productive  Perceptual problems  When culturally diverse groups come together, they often bring preconceived, erroneous stereotypes with them  Inaccurate biases.  Inaccurate communication
    19. 19. Advantages of Diversity  Can enhance creativity, lead to better decisions, and result in more effective and productive performance  Can prevent groupthink  Social conformity and pressures on individual members of a group to conform and reach consensus  Can be very effective team under right conditions  Tasks requiring innovativeness  Activities must be determined by the stage of team development
    20. 20. Multicultural Teams “Multinational teams do not happen naturally – on the contrary, the human inclination is to stick to its own kind.” P. Barnevik
    21. 21. Why Multicultural Teams?  Teams with different profiles are more effective than teams of “stars”  Once settled, multicultural teams work better at:  identifying problem perspectives  generating alternatives  The problem: how to “get settled”
    22. 22. Team Strategies  Task Strategies  Creating a sense of purpose  Structuring the task  Assigning roles and responsibilities  Reaching decisions  Process Strategies  Team building  Method of communication  Eliciting participation  Resolving conflict  Evaluating performance
    23. 23. Task Strategies  Creating a sense of purpose  What is the team’s mission?  What are the objectives?  Can they be measured?  Who should be a member?  What are the priorities?  Schedule?  Budget?  Quality?
    24. 24. Task Strategies  Structuring the Task  How structured should the agenda be?  How detailed should the rules be?  What needs to be accomplished? By whom?  How important are deadlines?  How will work be divided?  What can be done together? Apart?
    25. 25. Task Strategies  Assigning Roles  Who does what?  Should a leader be assigned? By whom? On what criteria?  What is the leader’s role?  Who needs to attend meetings and when?
    26. 26. Task Strategies  Reaching Decisions  How should decisions be made?  By vote, consensus, compromise?  Who should make the decision?  Leader vs team
    27. 27. Process Strategies  Team Building  How is trust developed?  How much time for social activities?
    28. 28. Process Strategies  Method of Communication  What is the working language? Who decides?  How are fluency imbalances handled?  What technology can be used?  What is an effective presentation?
    29. 29. Process Strategies  Eliciting Participation  How to ensure participation by all?  Are some members more credible?  Is input from some members ignored?  Who listens to whom?  Who interrupts whom?
    30. 30. Process Strategies  Resolving Conflict  How is conflict managed?  Avoided? Confronted?  Who accommodates whom?  Is negotiation win/lose, lose/win, or win/win?
    31. 31. Process Strategies  Evaluating Performance  How and when to evaluate?  Is it a two-way process?  How direct can feedback be?
    32. 32. Guidelines for Effectively Managing Culturally Diverse Groups 1. Select team members for their task-related abilities 2. Team members must recognize and be prepared to deal with their differences 3. Team leader must help the group to identify and define its overall goal 4. Members must have equal power so that everyone can participate in the process 5. All members must have mutual respect for each other. 6. Managers must give teams positive feedback on their process and output

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