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  1. 1. definition <ul><li>A formalized intentional structure of roles or positions. </li></ul><ul><li>Formalised intentional structure means : </li></ul><ul><li>People working together must fill certain roles. </li></ul><ul><li>The roles people are asked to fill should be intentionally designed to ensure that required activities are done & that activities fit together so that people can work smoothly, effectively & in efficient groups. </li></ul><ul><li>. Organisations may be defined as social entities that are goal directed,& are deliberately created and designed to achieve some specific stated objectives. </li></ul><ul><li>Organisation;- includes all the behaviours of all participants.- it’s a total system of social & cultural relationships- its an enterprise. </li></ul>
  2. 2. Features of organisations <ul><li>They are deliberately created. </li></ul><ul><li>They are linked to external environment. </li></ul><ul><li>Thy are influence & are influenced by socio- economic & political envn,. </li></ul><ul><li>They are made up of people & their relationships with one another. </li></ul><ul><li>People interact with one another to perform essential functions that help attain common goals.they have permeable boundaries. </li></ul><ul><li>They have symbiotic relationships with orgnisations of mutual interest. </li></ul>
  3. 3. Organisations as systems <ul><li>Closed system: it does not depend on its external envnm; it is autonomous, enclosed & sealed from the outside world. </li></ul><ul><li>Open system : is that it must interact with the envnm to survive, simply because it consumes resources &exports resources to the envnm. It must continuously change & adapt to envnm. </li></ul>
  4. 4. Organisational role <ul><li>It must incorporate: </li></ul><ul><li>Verifiable objectives as a major part of planning. </li></ul><ul><li>A clear idea o the major duties or activities involved. </li></ul><ul><li>An understood area of descretion or authority so that person filling the role knows wgat he/she can do to accomplish goals </li></ul><ul><li>Supply needed information </li></ul><ul><li>& other tools necessary for performance of the role. </li></ul>
  5. 5. Organising as <ul><li>The identification & classification of required activities. </li></ul><ul><li>The grouping of activities necessary to attain objectives, </li></ul><ul><li>The assignment of each group to a manager with authority ( delegation) necessary to supervise it. </li></ul><ul><li>Tne provision for coordination horizontally( on the same or similar orgnal level) & vertically( e.g. betweem corporate H.Q., division & dept) in the orgn structure. </li></ul>
  7. 7. Organisation structure-key components –defining OS <ul><li>OS designates formal reporting relationships, including-number of hierarchy levels & span of control for managers & supervisors. </li></ul><ul><li>identifies the grouping together of individuals into departments & of depts into total organization. </li></ul><ul><li>OS includes the design of systems to ensure effective communication ,coordination,& integration of efforts across departments. </li></ul>
  8. 8. Organization design alternatives <ul><li>The design of OS indicates three things- </li></ul><ul><li>Defined/needed work activities. </li></ul><ul><li>Reporting relationships-chain of command. </li></ul><ul><li>Departmental grouping options </li></ul>
  9. 9. Departmental grouping options <ul><li>Functional -places employees together who perform similar functions or work processes or who bring similar knowledge & skills. </li></ul><ul><li>Divisional- according to what the organization produces. </li></ul><ul><li>Geographic - resources are organised to serve customers or clients in a particular geographical area </li></ul><ul><li>Matrix - mutifocused grouping means an orgn., embraces two structural grouping alternatives simultaneously. </li></ul>
  10. 10. Functional structure <ul><li>Effective-when – </li></ul><ul><li>in-depth expertise is critical to meeting orgn goals. </li></ul><ul><li>The orgn needs to be controlled & coordinated through vertical hierarchy. </li></ul><ul><li>Efficiency is important . </li></ul><ul><li>strengths </li></ul><ul><li>Promoted economy of scale within functions i.e. all employees are located in the same place & can share same facilities </li></ul><ul><li>Promotes in-depth skill development of employees. </li></ul><ul><li>Weakness </li></ul><ul><li>Slow response to envm changes </li></ul><ul><li>Innovation is slow. </li></ul><ul><li>Poor coordination </li></ul>
  11. 11. Divisional structure –product structure or strategic business unit. <ul><li>It based on organizational inputs. </li></ul><ul><li>Promotes flexibility </li></ul><ul><li>Decentralizes decision making </li></ul><ul><li>Achieves coordination across functional depts </li></ul><ul><li>Effective when goals are oriented towards adaptation & change’ </li></ul><ul><li>Provides high product visibility. </li></ul><ul><li>Disadvantages-loses economies of scale-physical facilities have to be duplicated-coordination across product lines is difficult. </li></ul>
  12. 12. Geographical structure. <ul><li>Based on organisations users or customers. </li></ul><ul><li>Self contained units. </li></ul><ul><li>Can adapt to specific needs of its own region </li></ul><ul><li>Employees identify with regional goals rather that national goals. </li></ul><ul><li>Emphasizes on coordination within the region rather than linkages across regions or to the corporate office. </li></ul>
  13. 13. Matrix structure <ul><li>Both product division & functional structures ( horizontal & vertical) are implemented simultaneously. </li></ul><ul><li>-product & functional managers have equal authority within the orgn. </li></ul><ul><li>Conditions for matrix structure. </li></ul><ul><li>Pressure exists to share scarce resources across product lines. </li></ul><ul><li>Envntl pressure exists for two or more critical outputs such as for in-depth technical knowledge(functional structure) & frequent new products( divisional structure. </li></ul><ul><li>The envntl domain is both comples & uncertain. </li></ul>
  14. 14. Emerging Organizational structures. <ul><li>NETWORK ORGNS.- blends concepts such as value of management planning & controls with market concepts such as exchange agreements.-rely on contracting & outsourcing in lieu of owning & operating functions internally. </li></ul><ul><li>THE AMBIDEXTROUS ORGNISATION.-separate their new exploratory units from traditional exploitative ones allowing different processes ,structures, & cultures while maintainig a tight link across units at the senior level- they manage organisational separation through a tightly integrated senior team. </li></ul>
  15. 15. contd <ul><li>The Velcro organization: </li></ul><ul><li>Shift roles depending on the tasks they performing. </li></ul><ul><li>Relationships get rearranged quickly,easily &effectively. </li></ul><ul><li>Manager plays several roles.-merck, mckensy,haverd business school. </li></ul><ul><li>Managers have have major assignments in addition to their primary functional roles. </li></ul><ul><li>Cos tend to be flat& are organised around operating units. </li></ul>
  16. 16. Successful Velcro organiztsns have <ul><li>Their business unit & country managers understand what corporate strategy is & means in terms of purposes & priorities. </li></ul><ul><li>Individual operations have a degree of functional excellence. </li></ul><ul><li>Information systems can track performance across units for each individual involved in multiple projects /assignments. </li></ul><ul><li>Compensation systems reward cross unit effort without diluting the incentive for local effort. </li></ul><ul><li>Co culture develops senior executives who are comfortable with ambiguity required of a velcro orgn. </li></ul>
  17. 17. An organisation chart indicates how departments are tied together along the principal lines of authority An organisation chart shows formal authority Relationships & omits the many significant informal & informational relationships The effectiveness of organisation is Influenced by the organisation culture
  18. 18. Nature of culture Culture is understood as the customs, Beliefs, norms & values that guide the behavior of the people in a society & that are passed on from one generation to the next.
  19. 19. Core elements of culture <ul><li>Culture has normative value. It prescribes do’s & don'ts which are binding on the members of a society. </li></ul><ul><li>Culture is a group phenomenon. </li></ul><ul><li>Culture applies to the members of a society. Society’s normative values are binding on each member & not vice versa. </li></ul><ul><li>Cultural practices are passed on from generation to generation . </li></ul>
  20. 20. Levels of culture <ul><li>Dominant culture-is pervasive & extends to the whole of a country. </li></ul><ul><li>Sub-cultures-exist within dominant culture </li></ul><ul><li>Organisational culture-is within the dominant culture. Every orgn,has its own distinct culture. </li></ul><ul><li>Occupational culture-each profession carries its own culture& it cuts across dominant cultures. </li></ul>
  21. 21. Organisational culture <ul><li>The basic assumptions & beliefs shared by members of an organisation . These beliefs operate unconsiously & define in a basic taken-for-granted fashion an organisation’s view of itself & its environment. </li></ul>
  22. 22. Key elements of orgn., culture <ul><li>Observed behavioral regularities. When people interact, such as the language used & the ritual surrounding deference & demeanor. </li></ul><ul><li>The norms- that evolve in working groups, such as the norm of a fairs day’s work for a fair day’s pay. </li></ul><ul><li>The dominant values espoused by an organisation, such as product quality or low prices. </li></ul><ul><li>The philosophy that guides an organization's policy towards employees & customers. </li></ul><ul><li>The rules of the game for getting along in the organisation- “ the ropes “ that a newcomer must learn to become an accepted member. </li></ul><ul><li>The feeling of climate that is conveyed in an orgn by the physical & the way in which members of the organisation interact with one another, customers,& outsiders. </li></ul>
  23. 23. Orgn culture underlying values <ul><li>Firms that make cultural adjustments to keep up with envnm changes normally outperform those whose culture is rigid & unresponsive to external jolts. </li></ul><ul><li>Underlying values. </li></ul><ul><li>Inherent in democracy. </li></ul><ul><li>Informality in communication. </li></ul><ul><li>The importance of individual dignity. </li></ul><ul><li>Promotion based on performance. </li></ul>
  24. 24. illustrations of OC & mgmt practice <ul><li>Planning-Envnm A </li></ul><ul><li>Goals are set in an autocratic manner. </li></ul><ul><li>Decision making is centralised. </li></ul><ul><li>Organising. </li></ul><ul><li>Authority is centralised & narrowly defined. </li></ul><ul><li>Staffing. </li></ul><ul><li>People are selected on the basis of friendship. </li></ul><ul><li>Trg is a narrowly defined speciality </li></ul><ul><li>Envnm-B </li></ul><ul><li>Goals are set with great participation. </li></ul><ul><li>Decision making is decentralised. </li></ul><ul><li>Authority is decentralised & broadly defined </li></ul><ul><li>People are selected on the basis of performance criteria. </li></ul><ul><li>Trg is in many functional areas. </li></ul>
  25. 25. Orgn culture & mgmt practice <ul><li>Leading-Envnm A </li></ul><ul><li>Managers exercise directive leadership. </li></ul><ul><li>Communication flow is primarily top-down </li></ul><ul><li>Controlling. </li></ul><ul><li>Superiors exercise strict control. </li></ul><ul><li>Focus is on financial criteria. </li></ul><ul><li>Envnm B </li></ul><ul><li>Managers practice participative leadership. </li></ul><ul><li>Communication flow is top-down,bottom-up,horizontal& diagonal. </li></ul><ul><li>Individual exercise self control. </li></ul><ul><li>Focus is on multiple criteria. </li></ul>
  26. 26. How orgnl culture is created <ul><li>It is an interaction of four factors . </li></ul><ul><li>The personal & professional characteristics of people within the orgn,. </li></ul><ul><li>Organisational ethics. </li></ul><ul><li>The property rights that the orgn gives to its employees. </li></ul><ul><li>The structure of the orgn. </li></ul>
  27. 27. Culture & orgnl effectiveness. <ul><li>Culture is essential for both successful orgnl change & maximizing the value of human capital. </li></ul><ul><li>Cultural mgmt., should become a critical mgmt., competency. </li></ul><ul><li>while the right culture may be a necessary condition for orgnlsucess, it is by no means a sufficient condition. </li></ul>
  28. 28. Culture & orgnl effectiveness. <ul><li>Orgnl culture can be used for increasing orgn effectiveness because: </li></ul><ul><li>Culture controls the way members make decisions. </li></ul><ul><li>The way they interpret & manage the orgn’s envmt. </li></ul><ul><li>What they do with the information. </li></ul><ul><li>How they behave. </li></ul>
  29. 29. Managing orgnl culture. <ul><li>Understand the interplay between the four factors that produce culture-the characteristics of the orgnl members ( particularly the founder & top managers)-orgnl ethics-the property rights system,& orgnl structure . </li></ul><ul><li>Managing & changing a culture when a situation demands is difficult as the four factor interact & changes in one factoe can lead to changes in others. </li></ul><ul><li>Major alterations are needed to change orgn’s values. </li></ul>
  30. 30. Some ways of managing orgn culture <ul><li>Promote the development of informal atmosphere in which people could develop strong working bonds. </li></ul><ul><li>The co., should behave ethically towards its employees& customers.-ethics & property rights must interact & fit together to make orgn’s culture. </li></ul><ul><li>Orgn must maintain& preserve its creative,entrepreneural values& prevent the development of inertia & complacency. </li></ul><ul><li>Top managers must design its structure to offset control problems that occurwith large size & complexity. </li></ul>
  31. 31. multiculturism <ul><li>Means that people from many cultures ( frequently many countries) interact regularly build a common orgnl culturre having similar values & interests </li></ul><ul><li>Global co’s are repositories of muticulturism. </li></ul><ul><li>Domestic firms have many employees from different cultures& nationalities. </li></ul><ul><li>Domestic co’s have multiculturism by choice </li></ul><ul><li>mnc’s have it by design. </li></ul>
  32. 32. Multicultural manager characteristics. <ul><li>A global mindset-think- globally & act locally. </li></ul><ul><li>The ability to work with people from diverse backgrounds:- aware of cultural differences . </li></ul><ul><li>The ability to manage change & transition-skills to implement many orgnl changes. </li></ul><ul><li>The ability to create systems for learning & changing orgns-coordinate complex interdependencies among business functions across national boundaries. </li></ul>
  33. 33. Multicultural manager characteristics. <ul><li>The talent to motivate all employees to achieve excellence-making with the orgn rather than with their country. </li></ul><ul><li>Accomplished negotiation skills. </li></ul><ul><li>The willingness to seek overseas assignments. </li></ul><ul><li>An understanding of national cultures. </li></ul>
  34. 34. Cultural predispositions. <ul><li>Ethnocentricism: </li></ul><ul><li>The home country’s culture is sought to be imposed on subsidiaries. </li></ul><ul><li>MNC simply export its HR policies & practices from home office to foreign locations. </li></ul><ul><li>Expatriates from MNC’s home country manage the affairs of the subsidiaries. </li></ul><ul><li>Local employees occupy low-level & supporting jobs. </li></ul><ul><li>past performance at home & technical competence govern selection criteria for overseas assignments from home office. </li></ul>
  35. 35. Ethnocentric policy justifications & disadvantages <ul><li>Perceived lack of competent HCN’s </li></ul><ul><li>Need to maintain a unified corporate culture. </li></ul><ul><li>Greater control & loyality of HCN’s. </li></ul><ul><li>Key decisions are centralized. </li></ul><ul><li>Disadvantages. </li></ul><ul><li>HCN’s are denied promotional opportunities. </li></ul><ul><li>Expatriate managers may not be able to adapt to local conditions. </li></ul><ul><li>Expatriate managers are poorly trained for international assignments-hence make mistakes. </li></ul>
  36. 36. polycentricism <ul><li>MNC’s seek to adapt to local cultural needs of subsidiaries. </li></ul><ul><li>Management policy is oriented to suit local needs. </li></ul><ul><li>The products are customised to meet local tastes. </li></ul><ul><li>Staffing operations outside the home country are managed by individuals from host country. </li></ul><ul><li>In all matters relating to HR practices –appraisals –promotions etc , local needs outweigh other considerations. </li></ul>
  37. 37. Polycentricism advantages & draw backs <ul><li>Seeks to eliminate the high cost of relocating expatriate managers& families. </li></ul><ul><li>Offers a degree of autonomy in decision making to subsidiaries, </li></ul><ul><li>Subsidiary heads are in a better position to adapt to local conditions. </li></ul><ul><li>Training costs are not high as HCN’s are engaged. </li></ul><ul><li>HCN’s are cheaper than deputing PCN’s. </li></ul><ul><li>Drawbacks. </li></ul><ul><li>Tendency to lose control over susidiaries.- they become stand alone companies. </li></ul><ul><li>HC managers lose the opportunity of exposure to overseas markets. </li></ul>
  38. 38. regiocentricism <ul><li>It operates the same way as polycentricism- the difference is polycentric adapts IHRM practises to countries & regiocentric to regions. </li></ul><ul><li>Regiocentricism has similar features, advantages & limitations as polycentricism. </li></ul>
  39. 39. geocentricism <ul><li>Subsidiary operations are managed by best qualified individuals regardless of their nationality. </li></ul><ul><li>Managers can be PCN’s , HCN’s or TCN’s. </li></ul><ul><li>The capable manager can adapt to different cultures & are multilingual. </li></ul><ul><li>Advantages </li></ul><ul><li>Co becomes truly cosmopolitan. </li></ul><ul><li>Global managers are able to adjust to any business envm’t.-cultural differences. </li></ul><ul><li>Drawback. </li></ul><ul><li>Additional costs of training& relocation of experts. </li></ul><ul><li>Compensation is higher than HCN employees. </li></ul>
  40. 40. Cultural dimensions <ul><li>The basic tools for managers to analyse the cultures in which they do business; </li></ul><ul><li>Three approaches. </li></ul><ul><li>Globe project team. </li></ul><ul><li>Hofstede’s model & </li></ul><ul><li>Trompennar’s model. </li></ul>
  41. 41. Hofstede’s model <ul><li>This attempts to classify patterns of behaviour for individual countries without taking into account sub-cultural differences or ideological orientations. </li></ul><ul><li>The model has changed the prevailing view of behaviour of various cultures & in particular how to understand work related values among many of world’s nations. </li></ul><ul><li>This model is developed primarily base on differences in values & beliefs regarding work goals& forms a basis for research on cross-cultural management. </li></ul><ul><li>Hofstede defined culture as the aggregate of values, beliefs & customs that define common characteristics of a human group. </li></ul><ul><li>Culture therefore defines human group, much like personality explains an individual identity. </li></ul>
  42. 42. Hofstede’s-five dimensions of basic cultural values. <ul><li>Expectations regarding equality among people, called “ power distance”. </li></ul><ul><li>Typical reactions to situations considered different & dangerous, called “ uncertain avoidance”. </li></ul><ul><li>The relationship between the individual & the group in society, called “ Individualism”. </li></ul><ul><li>Expectations regarding gender roles, called “ masculinity”. </li></ul><ul><li>A basic orientation toward time, called “ Long-term orientation”. </li></ul>
  43. 43. Power distance <ul><li>It is the degree to which human inequalities are emphasised. </li></ul><ul><li>It is the extent to which less powerful members of institutions & orgn’s accept that power is distributed unequally. </li></ul><ul><li>Countries in which people blindly obey orders of superiors have high power distance. </li></ul><ul><li>The basic motivational assumption in high power distance countries is that people dislike work & try to avoid it. </li></ul><ul><li>In high power distance countries decision making is centralised. </li></ul><ul><li>Orgn’s have tall structures. People at lower levels will have low qualifications. </li></ul>
  44. 44. Power distance <ul><li>High power distance countries have norms, values & beliefs – </li></ul><ul><li>Inequality is fundamentally good. </li></ul><ul><li>Everyone has a place ; some are high some are low. </li></ul><ul><li>Most people should be dependent on a leader </li></ul><ul><li>The powerful are entitled to privileges, </li></ul><ul><li>The powerful should not hide their power. </li></ul>
  45. 45. Power distance-behavioural traits manifestations <ul><li>Respect for elders </li></ul><ul><li>Corruption </li></ul><ul><li>polarization </li></ul><ul><li>Violence in national politics. </li></ul><ul><li>Examples of nations which scored high on power distance: mexico,indonesia , pakistan, india ,france,Japan & brazil. </li></ul><ul><li>US, Austria,ireland newzealand & norway represent cultures with low power distance. </li></ul>
  46. 46. Uncertain avoidance . <ul><li>This dimension reflects the degree to which ambiguity prompts anxiety in society. </li></ul><ul><li>Is the extent to which people feel threatened by ambiguous situations,& have created beliefs & institutions that try to avoid these. </li></ul><ul><li>Countries with citizens who do no like uncertainty tend to have a high need for security & a strong belief in experts & their knowledge. </li></ul><ul><li>Countries with low uncertainty avoidance have people who are more willing to accept risks associated with the unknown, & that life must go on inspite of this </li></ul>
  47. 47. Uncertain avoidance countries – norms , beliefs-accept that <ul><li>Conflict should be avoided. </li></ul><ul><li>Deviant people & ideas should not be tolerated </li></ul><ul><li>Laws are very important & should be followed. </li></ul><ul><li>Experts & authorities are usually correct. </li></ul><ul><li>Consensus is important. </li></ul>
  48. 48. Manifestations of countries with high uncertainty avoidance cultures. <ul><li>Have great deal of structuring of orgn’l activities. </li></ul><ul><li>More written rules. </li></ul><ul><li>Less risk taking managers. </li></ul><ul><li>Low labour turnover </li></ul><ul><li>Less ambitious employees. </li></ul><ul><li>The opposite is true for countries with low uncertainty avoidance culture. these type of orgn’s encourage employees to take initiative, assume responsibility for their actions. </li></ul>
  49. 49. Categorization of countries based on their power distance(PC) & uncertainty avoidance.(UA) <ul><li>Small PC weak UA </li></ul><ul><li>Nordiccountries. (finland,iceland, scandinavia ) </li></ul><ul><li>Anglo countries. </li></ul><ul><li>USA,netherlands </li></ul><ul><li>Large PC weak UA. </li></ul><ul><li>China,hongkong, </li></ul><ul><li>singapore.india, </li></ul><ul><li>bangladesh, </li></ul><ul><li>indonesia& Malaysia. </li></ul><ul><li>Small PC strong UA </li></ul><ul><li>german speaking </li></ul><ul><li>countries,hungary, </li></ul><ul><li>Israel. </li></ul><ul><li>Large PC strong UA </li></ul><ul><li>Taiwan,thailand, </li></ul><ul><li>pakistan. </li></ul><ul><li>latin countries </li></ul><ul><li>E-europe,japan,korea </li></ul>
  50. 50. Individualism <ul><li>This dimension is the degree to which independent initiative is valued relative to collective effort. </li></ul><ul><li>It is a tendency of people to,look after themselves & their family only . </li></ul><ul><li>the opposite of this is collectivism which refers to the tendency of people to belong to groups & look after each other in exchange for loyalty. </li></ul><ul><li>A culture high on individualism would emphizise personal achievement, innovation, autonomy & adventure. </li></ul>
  51. 51. Values & beliefs which are accepted by countries high on individualism. <ul><li>People are responsible for themselves. </li></ul><ul><li>Individual achievement is ideal. </li></ul><ul><li>People need not be emotionally dependent on orgn’s or groups. </li></ul><ul><li>In contrast collectivist societies believe that </li></ul><ul><li>Ones identity is based on ones group identity. </li></ul><ul><li>Group decision making is the best. </li></ul><ul><li>Groups protect individuals in exchange for their loyality to the group. </li></ul>
  52. 52. Effect of individualism on orgn’s <ul><li>Favoritism shown to friends & relatives. in selecting managers is considered to be unfair & even illegal. </li></ul><ul><li>Promotions are based on ones performance </li></ul><ul><li>Decision making is individuals responsibility. </li></ul><ul><li>The opposite is true in case of collectivism </li></ul>
  53. 53. masculinity <ul><li>It is the degree to which motivational behaviour is associated with value systems as described in masculine Vs feminine terms. </li></ul><ul><li>This dimension is not concerned with biological contrasts, but with behaviour conveniently described in gender terms. </li></ul><ul><li>It refers to a situation in which dominant values in a society are success, money & other material things. </li></ul>
  54. 54. Norms ,values & beliefs of high masculine cultures. <ul><li>Gender roles should be clearly distinguished. </li></ul><ul><li>Men are assertive & dominant. </li></ul><ul><li>Machismo or exaggerated maleness is good </li></ul><ul><li>People- especially men- should be decisive. </li></ul><ul><li>Work takes priority over othe duties ,such as family & </li></ul><ul><li>Advancement ,success & money are important. </li></ul>
  55. 55. In highly masculine societies <ul><li>Jobs are clearly defined by gender. </li></ul><ul><li>Men choose jobs that are associated with long term careers. </li></ul><ul><li>Women choose jobs of short term nature before marriage. </li></ul>
  56. 56. Individualism is manifested by <ul><li>GNP per capita; </li></ul><ul><li>Faster walking; </li></ul><ul><li>Weak family ties & </li></ul><ul><li>Frequency of using the word “I” </li></ul><ul><li>Masculinity is seen as: </li></ul><ul><li>Assertiveness </li></ul><ul><li>Performance vs solidarity </li></ul><ul><li>Fewer women elected & homophobe </li></ul>
  57. 57. Country classification <ul><li>Collectivist, feminine </li></ul><ul><li>Thailand,korea, </li></ul><ul><li>veitam,indonesia, </li></ul><ul><li>malaysia singapore, </li></ul><ul><li>costarica,chile </li></ul><ul><li>,portugal,russia. </li></ul><ul><li>Collectivist, masculine </li></ul><ul><li>Hongkong,china, </li></ul><ul><li>japan,phlippines,india </li></ul><ul><li>Bangladesh, Mexico </li></ul><ul><li>Venezueala,greece </li></ul><ul><li>Arab world </li></ul><ul><li>Individualist,feminine </li></ul><ul><li>Spain,france </li></ul><ul><li>Netherlands </li></ul><ul><li>Nordic countries. </li></ul><ul><li>Individualist,masculine </li></ul><ul><li>Czech,hungary,poland </li></ul><ul><li>Italy,german speaking </li></ul><ul><li>Countries,anglo </li></ul><ul><li>Countries,USA </li></ul>
  58. 58. Implications for managers on foreign assignment <ul><li>Adapt behaviour to be effective members of multicultural organisations. </li></ul><ul><li>Failure is because of intercultural problems & not technical incompetence. </li></ul><ul><li>International education , Co sponsored training orientation of expat’s have reduced failures. </li></ul><ul><li>Achieve a conscious understanding of the cultural diversity to resolve cultural adaptation </li></ul><ul><li>Understand the contrasting value orientations to reduce cultural shocks. </li></ul>
  59. 59. Cross cultural communication <ul><li>Language & culture. It determines control patterns. </li></ul><ul><li>High & low context languages-languages in which people state things directly & explicitly are called low context & languages in which people state things indirectly & implicitly are called high context. </li></ul><ul><li>Communication between high & low context people is a challenge for international managers. </li></ul>
  60. 60. Communication dimensions contd <ul><li>Use of interpreters. </li></ul><ul><li>Non verbal communication-facial gestures , voice intonation ,physical distance, smile, batting of eyelid ,kiss , handshake, & even silence. </li></ul>
  61. 61. Effective communication across cultures practical aspects <ul><li>Learn the language of the host country. </li></ul><ul><li>Learn to neutralize language accents, </li></ul><ul><li>Be aware of the fact that cross cultural barriers do exist. </li></ul><ul><li>Use straight forward language & speak clearly, </li></ul><ul><li>Be sensitive to non verbal communication. </li></ul><ul><li>Develop cultural sensitivity, </li></ul><ul><li>Use the most common words with there most common meaning. </li></ul><ul><li>Avoid attributing factors. </li></ul><ul><li>Avoid slang. </li></ul>
  62. 62. Leadership across cultures <ul><li>Leadership is the ability to influence group members to achieve organizational goals. </li></ul><ul><li>Traits/skills/abilities for a leader of MNC </li></ul><ul><li>Cosmopolitan </li></ul><ul><li>Skilled at international communication. </li></ul><ul><li>Culturally sensitive . </li></ul><ul><li>Capable of rapid acculturation. </li></ul><ul><li>Knowledge about cultural & institutional influences on mgmt. </li></ul><ul><li>A facilitator of subordinates’ intercultural performance. </li></ul>
  63. 63. Contd. <ul><li>Use of cultural synergy. </li></ul><ul><li>A promoter & user of the growing world culture. </li></ul><ul><li>A commitment to continous improvement in self awareness & renewal.- understanding & questioning oneself. </li></ul>
  64. 64. Leadership traits & behaviours & their acceptability <ul><li>Positive- trustworthy, just . Honest , plans ahead, encouraging, positive, good bargaining, dynamic, motivator , confidence builder, dependable , intelligent decisive , win-win problem solver, skilled communicator,informed,&team builder. </li></ul><ul><li>Negative- loner, asocial, not cooperative,non-explicit, egocentric,ruthless, dictatorial. </li></ul><ul><li>Culture specific- group orientation, self-protectiveness, participative skills, humaneness, autonomy,charisma,humility </li></ul>
  65. 65. Some highlights of globe findings <ul><li>A participative leader is more acceptable in Canada, brazil,& Australia. </li></ul><ul><li>Americans like two kinds of leaders- those who provide employees with empowerment, autonomy& authority & those who are bold, fearful , confident & risk takers </li></ul><ul><li>Malaysians expect their leaders to be humble , modest,dignified & group oriented. </li></ul><ul><li>Arabs treat their leaders as heros & worship them as long as they live, </li></ul><ul><li>Iranians expect their leaders to exhibit power & strength. </li></ul><ul><li>The french appreciate the finer aspects of french culture ,arts & to be good in maths. </li></ul><ul><li>The dutch are not favorable inclined to the terms leader & manager as they believe in equality </li></ul>
  66. 66. Leaders role & cultural impact. At head quarters. <ul><li>Visioneering.-sets the corporate vision & mission. </li></ul><ul><li>Energizing: establishing enabling environment to achieve orgn’l objectives. </li></ul><ul><li>Efficiency: initiating the necessary tools & practices that drive productivity </li></ul><ul><li>Results driving for results. </li></ul><ul><li>Rules & procedures. </li></ul><ul><li>Country & industry specific </li></ul>
  67. 67. Leaders role & cultural impact. At subsidiary <ul><li>Visioneering.-enforces the corporate vision & mission & sets unit goals. </li></ul><ul><li>Energizing: ability to emulate similar energy & have the host unit achieve its objectives. </li></ul><ul><li>Efficiency: abilityto emulate & where necessary, deviate from parent Co’s tools & practices. </li></ul><ul><li>Results : driving for results. </li></ul><ul><li>Rules & procedures. Ensuring coordination & control as desired by the HO </li></ul>
  68. 68. Dimensions of multicultural management Multicultural mgmt motivation leadership communication HR practices teams Work values
  69. 69. Motivation across cultures <ul><li>Motivation refers to the way an individual engages himself or herself in need fulfilling activities. </li></ul><ul><li>At the heart of motivation is ‘ felt needs’ which drives the individual to act. </li></ul><ul><li>He/she selects the best course & engages in behaviors that beget rewards which help satisfy felt needs. </li></ul><ul><li>Which needs activate the individual to act , what course of action he/she engages in & what rewards the person expects vary from culture to culture. </li></ul><ul><li>Rich country citizens are motivated by needs like achievement, growth & realizing one’s potential. </li></ul><ul><li>In developing countries base level needs like food clothing & shelter needs are the main motivators </li></ul>
  70. 70. Successful motivational strategies. <ul><li>In some societies , work is very central & absorbs much of a person’s life. </li></ul><ul><li>All people hope to receive certain benefits from work. The benefits from the jobs vary by national context. </li></ul><ul><li>Understand the differences among countries in the functions of work, work centrality, & the priorities given to different job characteristics. </li></ul><ul><li>Multinational managers must understand that people from different countries have often different reasons for working & priorities regarding the important attributes of their jobs. </li></ul>
  71. 71. Work values & the meaning of work <ul><li>Why do people work? </li></ul><ul><li>Providing needed income. </li></ul><ul><li>Security. </li></ul><ul><li>Contact with other people. </li></ul><ul><li>Feeling of accomplishment . </li></ul><ul><li>What do people value at work? </li></ul><ul><li>Generous holidays. Good hours </li></ul><ul><li>An opportunity to use initiative.. </li></ul><ul><li>A job respected by people. </li></ul><ul><li>A responsible job. A job in which you feel you can achieve something. A job that meets one’s abilities. </li></ul><ul><li>Good job security, good pay. </li></ul>
  72. 72. National context & work motivation <ul><li>Culture & social institutions influence motivational process. </li></ul><ul><li>Cultural values, norms, & supporting social institutions influence the priority people attach to work in general & types of need that people hope to satisfy at work. </li></ul><ul><li>The national context also helps in defining what behaviors at work provide legitimate ways to satisfy needs. </li></ul><ul><li>It influences reactions to goal-directed behaviors at work. </li></ul><ul><li>They also influence the levels of satisfaction workers expect form the orgn,& how committed are they to the orgnl goals </li></ul>
  73. 73. Needs & national context . <ul><li>There are both similarities & divergence in the needs of people from divergent nations seek to satisfy from working. </li></ul><ul><li>People from different nations do give the same priorities to the needs that might be satisfied at work. </li></ul><ul><li>Even if workers from different countries have similar needs they may not give the same level of importance to satisfy these needs. </li></ul>
  74. 74. Hofstede’s dimensions of national cultur & motivators at work. <ul><li>Cultural context : high power distance </li></ul><ul><li>Dominant work motivators: conform to norms & rules meet moral obligations to leader. Eg mexico </li></ul><ul><li>Cultural context:high individualism </li></ul><ul><li>Dominant work motivators. autonomy, challenging work , advancement. </li></ul><ul><li>Eg USA </li></ul><ul><li>Cultural context :High uncertainty avoidance. </li></ul><ul><li>Dominant work motivators:security,clear orgn’l hierarchy. </li></ul><ul><li>Eg belgium. </li></ul><ul><li>Cultural context: high masculinity. </li></ul><ul><li>Dominant work motivators: tgn opportunities, acheivement. </li></ul><ul><li>Eg japan. </li></ul>