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49529779 7419c cross-cultural-management-systems-and-practices

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49529779 7419c cross-cultural-management-systems-and-practices

  1. 1. Management In Action – Social , Economic And Ethical Issues Module IV Cross Cultural Management Systems and Processes11/18/12 Amity Business School,AUUP 1
  2. 2. Cross Cultural Management Systems and Processes Lec.Ms.Deepshikha Singh Amity Business School at Amity University11/18/12 Amity Business School,AUUP 2
  3. 3. Cross Cultural Management – An Everyday Activity• On 7 July 2005, terrorist attacks on the transport network in London killed 52 passengers and injured approximately 700 people. The victims of the atrocity accurately, and in this case poignantly, reflected the multicultural nature of London’s workforce in the early twenty – first century ( the vast majority were on their way to or from work when the bomb exploded). Those who died comprised citizens of 13 different countries including the UK.• The existence of culturally diverse workforces is furthermore by no means limited to the UK or, more specifically, to its capital city. For many of us it is now an everyday event to deal with employees from different cultural backgrounds in a single work place. 11/18/12 Amity Business School,AUUP 3
  4. 4. • And it is no longer necessary to leave one’s country of origin – or to be employed in an explicitly international role – to be touched by cross – cultural (intercultural concerns)• Many organizations are in any case concerned to secure and foster diversity within the workforce in order to enhance employee performance and secure competitive advantage.11/18/12 Amity Business School,AUUP 4
  5. 5. “The World is full of Stateless Corporations”  Nestle ( Switzerland) • This company personifies the stateless corporations with 98 percent of sales and 96 percent of employees outside the home country. • Nestlés previous Global CEO was German born H.Maucher, and half of the company’s General Managers are non - Swiss.11/18/12 Amity Business School,AUUP 5
  6. 6.  Coca – Cola• Is a multinational corporation that obtains over 80 percent of its operating income from outside the United States. It operates in 185 markets, has more than 6,50,000 employees, and serves more than 5 billion customers.• One of the company’s core values is to “think globally, but act locally.”11/18/12 Amity Business School,AUUP 6
  7. 7.  Other companies – Example, Colgate – Palmolive Company sells Colgate toothpaste in more than 50 countries Mc Donald’s sells its burgers in 73 countries. Gillette, Johnson & Johnson earn well over 50 percent of their profit overseas. Asea Brown Boveri (ABB) has operations throughout the world. Unilever is a British – Dutch Conglomerate and have the employee strength of 1,63,000. It operates in 156 countries and has 400 brands of which 25 brands account for 70 percent of sales. 11/18/12 Amity Business School,AUUP 7
  8. 8. INSIGHT  Types of Organizational Culture  Strength of Organizational Culture  Function of Organizational Culture  Importance of Culture to the Organization  Cultural models  Cross – cultural perspectives  Geert Hofstede  Cross – Cultural Issues11/18/12 Amity Business School,AUUP 8
  9. 9. CulturalEnvironment of Social Structure Education/International Human Capital • Kinship/family • Mobility • Primary/ secondary • NationalismBusiness • Vocational • Professional • Urbanization • Social stratification • Literacy • Paternalism/ materialism Values/Ideologies Communication • Work ethic • Language(s) • Time orientation • Dialects • Individualism/ • Nonverbal collectivism • Media • Risk propensity • Technology • Achievement Religious Beliefs • Denominations • Totems/taboos • Rituals • Holy days 11/18/12 Amity Business School,AUUP 9
  10. 10. American Japanese ArabManagement Styles Leadership, Persuasion; Coaching Friendliness Functional Group Friendliness, Activities Parenthood; Personal AttentionControl Independence, Group harmony Of others/ Decision Parenthood, making; Space, Time, MoneyEmotional Appeal Opportunity Group Religion; Participation; Nationhood, Company Admiration11/18/12 participation Amity Business School,AUUP 10
  11. 11. “ A person is not born with a given culture :rather, he or she acquires it through the socialization process that begins at birth: an American is not born with a liking for hot dogs, or a German with a natural preference for beer :these behavioral attributes are culturally transmitted.”11/18/12 Amity Business School,AUUP 11
  12. 12. Case in point..11/18/12 Amity Business School,AUUP 12
  13. 13. Unilever  The company has decentralized its operations worldwide  To knit together the decentralized organization, Unilever worked to build a common organizational culture among its managers.  For years company hired people of different nationalities,but with similar values and interests  The idea was to hire people who could jell with Unilever’s culture.  It is said that the company has been so successful that Unilever executives recognize one another at airports even when they met only once before.11/18/12 Amity School Of Business,AUUP 13
  14. 14.  Unilever’s senior management believes that this corps of like-minded people is the reason why its employees work so well, despite their national and cultural differences. The company also works to periodically bring these managers together. Yearly conferences on company strategy, and executive education sessions at Unilever’s management training centre outside London, help establish connections between managers. the idea is to build an informal network of equals, facilitating thereby experience exchanges. 11/18/12 Amity School Of Business,AUUP 14
  15. 15.  the company also moves its managers frequently ,across borders, products and divisions. this policy establishes a base for Unilever’s relationships early as well as increases know- how. not just the corporate but also nations promote multiculturalism. Ex. Canada ( declared itself a multicultural society in the year 1988)11/18/12 Amity School Of Business,AUUP 15
  16. 16. CULTURE ( Definition) • Culture is understood as the customs, beliefs, norms and values that guide the behavior of the people in a society and that are passed on from one generation to the next.11/18/12 Amity Business School,AUUP 16
  17. 17. 11/18/12 Amity Business School,AUUP 17
  18. 18. Levels of culturei. Dominant culturesii. Sub – culturesiii. Organizational culturesiv. Occupational cultures
  19. 19. Dominant culture is pervasive and extends to the whole of a country. Ex., certain things are auspicious and some others are not so and this belief is shared by all Indians.Subcultures exist within the dominant culture. Thecultural practices of Punjabis are different from thoseobtaining in Karnataka.Interestingly, subcultures subsume into the dominantculture to present a unified culture, typifying “ unity indiversity11/18/12 Amity Business School,AUUP 19
  20. 20. Organizational Culture - Within the dominant culture is the organizational culture. Every organization will have its own distinct culture. The culture of the Tatas, for example, is different from that of Infosys while that of Infosys is not the same as WIPRO. Occupational cultures – Each profession carries its own culture and it cuts across dominant cultures. Ex.; An accountant speaks the same language whether he or she is an Indian or American11/18/12 Amity Business School,AUUP 20
  21. 21.  Culture has normative value. It prescribes do’s and donts which are binding on the members of a society. Culture is a group phenomenon. Culture applies to the members of a society. Cultural practices are passed on from generation to generation11/18/12 Amity Business School,AUUP 21
  22. 22. ORGANISATIONAL CULTURE Organizational culture is a common phrase that one encounters in the business world. Organizational culture is not tangible. It can be best understood by studying the behavior, the attitudes, the values and belief system of the employees. It characterizes and colors our perception of the business entity. Any employee however efficient will be a misfit if he is unable to adapt himself to the work culture. Organizations are laying emphasis on culture since growth and success depends on the kind of culture prevalent in the company. Do employees feel threatened or cherished? Is there a desire to work and grow, do they want to evolve as a group or go their separate ways? These questions can be answered by a careful examination of the organizational culture. 11/18/12 Amity Business School,AUUP 22
  23. 23. • Organizational culture has brought about a radical change in the functioning of different organizations.• It is basically the study of organizational management and studies, which includes the description of attitude, psychology, belief, experience, personal and cultural values of an organization.• Like varied personalities, there are different types of organizational cultures that function, by following a method of working, that is best suited to their core business.11/18/12 Amity Business School,AUUP 23
  24. 24. TYPES OF ORGANIZATIONAL CULTURE11/18/12 Amity Business School,AUUP 24
  25. 25. The work on defining how each of the four quadrants (formed by combining these two dimensions) is related to company characteristics was conducted by Kim Cameron and Robert Quinn (1999).11/18/12 Amity Business School,AUUP 25
  26. 26. 11/18/12 Amity Business School,AUUP 26
  27. 27. TYPES OF ORGANIZATIONAL CULTURE • “Collaborate (Clan)” Culture • “Create (Adhocracy)” Culture • “Control (Hierarchy)” Culture • “Compete (Market)” Culture11/18/12 Amity Business School,AUUP 27
  28. 28. “Collaborate (Clan)” Culture• An open and friendly place to work• People share a lot of themselves.• It is like an extended family.• Leaders are considered to be mentors or even parental figures.• Group loyalty and sense of tradition are strong.• There is an emphasis on the long-term benefits of human resources development and great importance is given to group cohesion.• There is a strong concern for people. The organization places a premium on teamwork, participation, and consensus.11/18/12 Amity Business School,AUUP 28
  29. 29. Example (Collaborate) • With the success of many Japanese firms in the late 1970s and 1980s, American corporations began to take note of the different way they approached business. Unlike American national culture, which is founded upon individualism, Japanese firms had a more team-centered approach.11/18/12 Amity Business School,AUUP 29
  30. 30. “Create (Adhocracy)” Culture• A dynamic, entrepreneurial, and creative place to work.• Innovation and risk-taking are embraced by employees and leaders.• A commitment to experimentation and thinking differently are what unify the organization.• They strive to be on the leading edge. The long-term emphasis is on growth and acquiring new resources.• Success means gaining unique and new products or services.• Being an industry leader is important. Individual initiative and freedom are encouraged.11/18/12 Amity Business School,AUUP 30
  31. 31. Example (Create ) • High-tech companies like Google are prototypical Create (adhocracy). Google develops innovative web tools, taking advantage of entrepreneurial software engineers and cutting-edge processes and technologies. • Their ability to quickly develop new services and capture market share has made them leaders in the marketplace and forced less nimble competition to play catch-up.11/18/12 Amity Business School,AUUP 31
  32. 32. “Control (Hierarchy)” Culture• A highly structured and formal place to work.• Rules and procedures govern behavior.• Leaders strive to be good coordinators and organizers who are efficiency-minded.• Maintaining a smooth-running organization is most critical.• Formal policies are what hold the group together.• Stability, performance, and efficient operations are the long-term goals.• Success means dependable delivery, smooth scheduling, and low cost.• Management wants security and predictablity11/18/12 Amity Business School,AUUP 32
  33. 33. Example (Control )• Good examples of companies with hierarchical cultures are McDonald’s (think standardization and efficiency)• Government agencies like the Department of Motor Vehicles (think rules and bureaucracy).• As well, having many layers of management— like Ford Motor Company with their seventeen levels—is typical of a hierarchical organizational structure.11/18/12 Amity Business School,AUUP 33
  34. 34. “Compete (Market)” Culture• A results-driven organization focused on job completion.• People are competitive and goal-oriented.• Leaders are demanding, hard-driving, and productive.• The emphasis on winning unifies the organization.• Reputation and success are common concerns.• Long-term focus is on competitive action and achievement of measurable goals and targets.• Success means market share and penetration.• Competitive pricing and market leadership are important. 11/18/12 Amity Business School,AUUP 34
  35. 35. Example ( Compete ) • General Electric, under the leadership of former CEO Jack Welch, is a good example of a Compete (market) organization. • He famously announced that if businesses divisions were not first or second in their markets then, simply, they would be sold. • Their corporate culture was (and still largely is) highly competitive where performance results speak louder than process.11/18/12 Amity Business School,AUUP 35

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