This document discusses cultural differences in organizations based on various studies and research. It summarizes key theories on organizational culture like McGregor's Theory X and Y, Hofstede's study identifying dimensions of individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity. Other research highlighted includes differences between high and low context cultures, and how organizational culture is influenced by societal culture and leaders play a role in shaping culture. Studies found culture affects variables like employee performance, communication styles, and that organizations inherit cultural traits from the societies employees come from.

1. CULTURAL DIFFERENCES
IN ORGANISATIONS
Presented by BABASAB Patil

2. Organisational Culture
 Culture, being the genetic code of an organisation has
significance from various perspectives.
 Contribution:
 Culture supplements rational management:
Culture communicates to people through symbols,
values, physical settings, language and thereby
supplements the rational management tool such as
technology and structure.
 Culture facilitates induction and socialization.
 Culture promotes code of conduct and customer focus.
 Culture contribute to organisational diversity.

3. Researches on cultural differences in
organisations
 Douglas McGregor theory (1960),
 Adler research theory (1986),
 Ouchi, Z theory,
 Hall research (1976),
 Hofstede study (1980),
 Sondergaard research (1994),
 Schein study (1987),
 Connell research (2001),
 Indian council of social science research (1995).

4. Douglas McGregor theory (1960)
 Theory X’ and Y’ which is based on managers
assumption about the employees.
 Theory X managers do not trust their subordinates and
introduce tight control system, which leads to
employees irrespective behavior.
 Theory Y managers who trust employees, give more
autonomy to their subordinates for overall goals and
tasks without exercising close supervision.

5. Adler research (1986)
 Adler research highlighted about, the
managers develop a more favorable attitude
towards employees with respect to employee
performance.

6. Ouchi, Z theory..
 Z’ theory highlighted societal culture influences the
organisational culture. (study of the cultural differences
between American and Japanese culture)
 American culture has specialised career paths, fast
growth, individualised decision making, individualised
responsibility, explicit control, and concern for work
relationship with employees.
 Japanese culture is characterised by slow promotions,
generalised career paths, and job rotation across areas,
group decision making, high degree of trust, collective
responsibility, and concern for social aspects of
employees.

7. Hall research (1976)
 Research highlighted the difference between high-context
and low context cultures.
 In high-context cultures, People depend heavily on the
external environment or situation, and use non-verbal
clues for exchanging & interpreting communications.
He mentioned examples of languages such as Arabic,
Japaniese, and chinese in this regard where indirect style
of communication is valued.
 In low-context cultures, external environment or situation
has low importance, explicit, direct and blunt
communication is valued and non-verbal clues are
ignored.

8. Hofstede study (1980)
 His study of culture in sixty countries found major
cultural differences in work related attitudes.
(1.6 lac employees from an American multinational
corporation served as sample)
 The study revealed..
 the difference in attitudes and behavior of the workforce
and managerial staff belonging to different countries and
these differences had persisted over a period of time.
 As an organisation is a subsystem of society, it is very
difficult to change the culture of people in the
organisation because they bring in the culture of their
society, they belong to.

9. Hofstede primary dimensions..
He identified four dimensions on which employees and
managers differed.
1. Individualism/collectivism:
Individualism is the focus of people on themselves
and to some.
Collectivism distinguishes between in-group
(comprising relatives, caste and organisation) and
other groups.

10. 2. Power distance orientation
 It refers to the superior-subordinate relationship.
 The superior inclined to increase the inequality of
power between him and his subordinates and the
subordinates will try to decrease that power distance.
 Seniors maintain distance culture with their
subordinates.

11. 3. Uncertainty avoidance
 Hosfsted points out that different cultures differently
and have varying levels of tolerance to uncertainty.
 Based on his study he has classified countries having
high uncertainty avoidance.
 Here employees in low uncertainty avoidance will
take more risks as compared to high uncertainty
avoidance groups.

12. 4. Masculinity/femininity
 The dominant values in society highlight the
relationship among people, concern for others and
overall quality of life.
To conclude, culture is the minds of one group, which
distinguishes it from other groups.

13. Sondergaard research (1994)
 Sondergaard has revived 61 researches replicating
Hofstede’s method and has reported that before
mentioned dimensions have been “largely confirmed”.

14. Schein study (1987)
 His work points, ”Organisational cultures are created
by leaders, and one of the most decisive functions of
leadership may well be the creation, the management,
and – if and when that becomes necessary –
destruction of the culture”.

15. Connell research (2001),
 He found that the organisation size affected a
numbers of variables.

16. Indian Council Of Social Science
Research (1995).
 ICSSR had made research on work culture in
medium size organisations.
 The project undertaken by Sinha and his colleagues
studied 28 medium size organisations based in that
state has been classified as soft culture, technocratic
culture, and work centric nurturance culture.