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Chapter 3-Organizational Cultures and Diversity

Chapter 3-Organizational Cultures and Diversity. Chapter 3(1) : Organisational Culture, Diversity &Multiculturalism Chapter 3(2): Organisational Culture Chapter 3(3): Diversity. Chapter 3(1) : Organisational Culture, Diversity & Multiculturalism. Acknowledging Culture.

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Chapter 3-Organizational Cultures and Diversity

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  1. Chapter 3-Organizational Cultures and Diversity Chapter 3(1): OrganisationalCulture, Diversity &Multiculturalism Chapter 3(2): OrganisationalCulture Chapter 3(3): Diversity

  2. Chapter 3(1): Organisational Culture, Diversity & Multiculturalism

  3. Acknowledging Culture • Cultural diversity can exist on a national and cross-national level • Often, managers assume that culture does not play an important role in shaping practices => • Universalistic approach: ‘if it works here, it will work there’ • Such approach contributed to high failure rates in expatriate missions and international mergers • In order to manage cross-cultural differences, managers need to acknowledge and understand them

  4. Diversity-Related Problems • Increased ambiguity • Increased complexity and confusion • Difficulty to converge meanings and • Miscommunication • Lower cohesiveness • Harder to reach agreement • Harder to make decisions and agree on specific actions

  5. Diversity-Related Advantages • Expanding meanings and • Broader cognitive frame & resources • Multiple perspectives • Multiple interpretations • Richer alternatives & more ideas • Increased creativity and problem solving skills • Increased flexibility

  6. Diversity and Types of Organizations • Organizational culture affects the acceptance and impact of diversity in organizations • Parochial:Our is the only way • Ethnocentric:Our way is best • Pluralistic (synergetic):The best is combining our ways and their ways In large companies, different divisions may have different sub-cultures The more complex, unpredictable and global is the business environment of a company, the more competitive advantages cultural diversity has.

  7. Nature of Organizational Culture • Organizational culture • Pattern of basic assumptions that are developed by a group as it learns to cope with problems of external adaptation and internal integration and that are taught to new members as the correct way to perceive, think, and feel in relation to these problems • An MNC’s organizational culture in one country’s facility may differ sharply from those in other countries

  8. Nature of Organizational Culture • Interaction Between National and Organizational Cultures • National cultural values of employees have a significant impact on organizational performance • Cultural values that employees bring to the workplace are not easily changed by the organization • Substantial differences may be observed among subsidiaries that cause coordination problems

  9. Organizational Cultures in MNCs • Integration of organizational cultures is crucial following mergers and acquisitions • Integration process consists of: • Establishing a common purpose, goal, and focus • Identifying important organizational structures and roles • Determining who has authority over resources • Identifying the expectations of all involved parties and facilitating communication between the parties

  10. Organizational Cultures in MNCs (cont.) • Family culture • Strong emphasis on hierarchy and person orientation • Power-oriented with paternalistic leader • Leader looked to for guidance • Can catalyze and multiply employees’ energy • Reliance on intuition rather than rational knowledge

  11. Organizational Cultures in MNCs (cont.) • Eiffel tower culture • Strong emphasis on hierarchy and task orientation • Employees know what to do • Coordination from the top • Methodic approach to motivating and rewarding people and resolving conflict

  12. Organizational Cultures in MNCs (cont.) • Guided missile culture • Strong emphasis on equality in the workplace and orientation to the task • Work typically undertaken by teams or project groups • Low priority attached to hierarchical concerns • Employs a “cybernetic” structure • Culture may change quickly

  13. Organizational Cultures in MNCs (cont.) • Incubator culture • Strong emphasis on equality & personal orientation • Organizations are secondary to the fulfillment of individuals • Organization is an incubator for self-expression and self-fulfillment • Participants have intense emotional commitment to their work

  14. Organizational Cultures Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy

  15. Processes & Implications Attraction-Selection-Attrition framework • Where do you advertise for jobs? • Who interviews and selects candidates? • What type of people is the company (implicitly and explicitly) looking for? • Who gets promoted? • Mentoring • Networking

  16. Examples • Knowledge workers • Medical doctors & nurses • University academics

  17. Chapter3(2) ORGANIZATIONAL CULTURE

  18. CULTURE REVIEWED • Organizations also have a learned, shared, interrelated set of symbols and patterns of basic assumptions • The culture help the organizations cope with problems it faces • external adaptation • internal integration

  19. CULTURE REVIEWED CULTURE HELPS ORGANIZATIONS INTEGRATE INTERNALLY (PPS) AND ADAPT/SHAPE EXTERNALITIES (6 GLOBAL ENVIRONMENTS) TO SURVIVE. • Culture permeates the organization • Through knowledge acquisition • Organizational symbols • Organizational stories • Organizational rites

  20. ORGANIZATIONAL KNOWLEDGE • Explicit—formalized and widely distributed • Implicit—norms or “how we do things around here”

  21. EXAMINE ORGANIZATIONAL SYMBOLS • What language is in use and where? • Who is pictured on annual reports, web pages, or brochures? • What colors represent the company; where are they used? • What logos are in use?

  22. ORGANIZATIONAL STORIES TELL US • what the employee is supposed to do when in doubt • what to do when a high-status person breaks the rules • how the little person advances within the organization

  23. ORGANIZATIONAL RITES REINFORM NORMS • Rites of degradation dissolve a person’s organizational identity • Rites of enhancement recognize accomplishments or enhance power • Rites of renewal lubricate social relations • Rites of conflict reduction reduces conflict by partitioning it • Rites of integration revive common feeling

  24. NATIONS TRADITIONALLY SHAPE ORGANIZATIONS Business culture

  25. BUT INFLUENCES COME FROM MULTIPLE SOURCES • Professional training/groups • Family • Subgroups, e.g., R&D or accounting

  26. INCREASINGLY WE ALSO SEE • business influences come not only from domestic influences but also from international and global business activities, e.g., • subsidiaries • joint ventures and other strategic alliances

  27. OFTEN CREATING CULTURE CLASH • between parent and subsidiary • among managers

  28. THUS IN A GLOBAL WORLD, BUSINESSES BECOME CULTURAL CONDUITS See page 207 of Introduction to Globalization and Businessby Barbara Parker

  29. BUSINESS INFLUENCES CULTURE THROUGH • Global entertainment and electronic media • Global travel • Global language • Global demographic groups • Global elite • Global teens • Business behaviors

  30. GLOBAL INFLUENCES OF BUSINESS ON CULTURE • Make global businesses more central to • Cultural change • Cultural concerns • And cause them to interact more with social actors such as NGOs and governments

  31. Chapter 3(3) DIVERSITY

  32. Diversity Defined • Human diversity • Visible • Less or invisible • Diverse structural configurations • Diverse processes

  33. Global Organizations Emphasize Inclusive Networks When They • a) reexamine their norms or traditional ways of doing things • b) seek and value similarities as well as differences as sources of competitive advantage, and • c) train people for skills that enhance a sense of inclusion

  34. Diversity Initiatives

  35. Approaches to Managing Human Diversity • Discrimination and fairness • Access and legitimacy • Learning

  36. Strategic Responses for Managing Diversity and their Implementation Episodic Freestanding Systemic Strategic responses for managing diversity Proactive Accommodative Defensive Reactive Pressures for Diversity LowHigh Marginal Strategic Executive priorities for managing diversity

  37. Diverse Structures • Hierarchical • Export office to functional to divisional to hybrids • Internal horizontal • Networks, shamrocks, matrix, virtual • Interorganizational • Joint ventures • Strategic alliances

  38. Diverse Processes • IT—integration depends on infrastructures that vary • HR—selection, development, and compensation in different nations and regions • Labor practices and conditions • Social responsibility and ethics initiatives

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