Culture and Organisation in a Multinational Firm

1. Culture and Organisation in a Multinational Firm

2. Structure of the presentation • Meaning of culture • Cultrural dimensions -national culture *Trompenaars and Hofstede -organizational culture • Case study

3. What’s culture? • A shared system of meanings • About groups-not about individual behavior • Learned-not inherited • Transgenerational • Patterned • Not “wright” or “wrong”

4. A Model of Culture The Meaning of Culture

5. The Meaning of Culture • Culture as a Normal Distribution • How French see Americans • naive • aggressive • unprincipled • workaholic • How Americans see the French • arrogant • flamboyant • hierarchical • emotional French Culture U.S. Culture STEREOTYPES STEREOTYPES

6. Is their one best way of managing and organising? • No! Why? • Each culture has different meanings • One fact can have different meanings in different cultures • Example : the walkman • Hofstede and Trompenaars

7. Cultural differences : Trompenaars • Universalism-particularism • Individualism-communitarianisme • Neutral-emotional • Specific-diffuse • Achievement-ascription • Sequential-synchronic • Inner-directed and outer-directed

8. Universalism Consistency Standards and rules Clarity Uniform procedures Particularism Flexibility It depends on the circumstance Make exeptions At ease with ambiguity 1. Universalism-Particularism

9. 1. Universalism-Particularism • A Car Accident What right has your friend? • My friend has a definite right as a friend to expect me to testify to the lower figure. • He has some right as a friend to expect me to testify to the lower figure. • He has no right as a friend to expect me to testify to the lower figure.

11. Individualism I Achieving alone Ex.Vacations taken in pairs, even alone Communitarianism We (part of a group) Decisions taken in group Ex.Vacations in group 2. Individualism-Communitarianism

13. Neutral Do not reveal what they are, thinking or feeling Cool Seem monotone Physical contact = taboo Affective Reveal thoughts and feelings Emotional Heated, vital and animated Seem dramatical 3. Neutral-Affective

15. Specific Principles and behaviour independent of the person being addressed Work and life are separated Direct, to the point, purposeful in relating Diffuse Everything depends of the context and the person Work and private life are often very close Indirect, seemingly aimless forms of relating 4. Specific-Diffuse

16. Specific culture Work Sport Specific Relationship

17. Diffuse Culture Diffuse Relationship

18. Danger Zone

19. A Boss asking to paint the house • The colleague argues You don’t have to paint the house if you don’t feel like it. He is your boss in the company. Ouside the company, he has little authority. • The subordinate argues: Despite the fact that I don’t feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either.

21. 5. Achievement-Ascription What you do Who you are STATUS?

22. Achievement Competence determines status Respect is based on achieving your job Senior managers are of varying age Ascription Extensive use of titles(who you are) Respect is gained through your status (background) Senior manager is mostly male, middle-aged and qualified by his background 5. Achievement-Ascription

24. Sequential One activity at the time Relationships are subordinate to the schedule Preference to follow initial plans Time is measurable Synchronic More activities at the time Schedules are subordinate to the relationship Follow where relationships lead Time is like a wide ribbon 6. Sequential-Synchronic

25. Inner-directed I am in control Dominating attitude Discomfort when the environment seems out of control Outer-directed Environment is in control Flexible attitude, willing to compromise Comfort with waves,cycles if these are natural 7. Inner-directed VS outer-directed

27. Cultural differences : Geert Hofstede • Power distance • Uncertainty avoidance • Individualism • mascunility

28. High power distance Obey blindly Steep structure Centralized A lot of supervisory personnel Low power distance Flat structure Decentralized Less supervisory personnel 1. Power distance the extent to which power is accepted

29. High avoidance High need for security Strong belief in experts Important structures More written rules Lower labor turnover Example: Germany Japan Low avoidance Accepting risk Life must go on Less structural Fewer written rules Higher labor turnover Example:Great-Britain Denmark 2 Uncertainty avoidance

30. Individualism I Greater individual initiative Collectivism Belonging to a group Less individual initiative 3. Individualism-Collectivism

31. Masculinity = dominant values are success,money and things Earnings, recognition and achievement is important Independent decision makers Femininity = dominant values are caring for others and the quality of life Cooperation Friendly atmosphere Employment security Group decision makers 4. Masculinity

32. Organizational culture • Definition of organizational culture • Characteristics • The interaction with national culture • Four categories for organizational culture

33. 1/ Definition • Assumptions that are developed by a group through her existence • New members should adopt this way of thinking in order to fit with the organisation • The organizational culture of a MNC can differ a lot from one country to an other

34. 2/Characteristics of Organizational Culture Observed behavioral regularities Philosophy on treatment of employees/ customers Norms Rules of employee behavior Organizational Culture Dominant values Organizational climate

35. 3/ Interaction between national and organizational culture • National cultural values are significant • The values people bring to work can’t be changed easily

36. 4/Four categories Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy

37. 4/Family Culture Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy

38. 4/ Family culture • Power-oriented culture • Diffuse relationships • Status is ascribed (parent figures) • Intuitive and error-correcting way of thinking • People are seen like family members • Father makes the changes • Management by subjectives • In conflict: do not lose your power

39. 4/Eiffel tower culture Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy

40. 4/ eiffel tower culture • Role-oriented culture • Specific relationships • Status is ascribed to superior roles • Rationally thinking • People are seen like human ressources • Change through rules and procedures • Management by job description • Criticism is accusation of irrationalism • Everything is planned, structured

41. 4/Guided missile culture Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy

42. 4/ Guided missile culture • Project-oriented culture • Egalitarian and task-oriented • Specific relationships • Problem centered way of thinking • People are seen as experts • Management by objectives

43. 4/Incubator culture Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy

44. 4/ Incubator culture • Self-fulfilment oriented culture • No structure • Diffuse relationships • Thinking is process-oriented and creative • People are seen as co-creators • Change is improvised • Management by enthusiasm

45. Egalitarian • Den • Norway • Sweden • USA • UK Person Task • Irland • Ita • Bel • Ger • Spain • Fra • Kor Hierarchical

46. Managing Cultural Differences Process Reconciliation Resolve cultural differences Respect Appreciate cultural differences Recognition Increase awareness of one’s own cultural perception Time

47. CASECultural Transformation at NUMMI

48. NUMMI • Joint venture between Generals Motors and Toyota • US and Japanese culture needed mixed up • In order to get success, some differences needed to be reconciliated

49. Cultural Reconciliation Universalist Particularist • Obligation to report problems in order to improve system • Differences of opinion are accepted and valued • Flexibility of work rules • Tolerant atmosphere

50. Cultural Reconciliation Individualist Communitarist • Employment security • Participative decision making • Plant collective discipline • Managers closer to employees in order to give them support • Creation of open offices, communal cafetaria • Flat wage structure