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

Management In Action – Social , Economic And Ethical Issues

Module IVCross Cultural Management Systems and Processes

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Cross Cultural Management Systems and Processes

Lec.Ms.Deepshikha SinghAmity Business School at Amity University


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.


• 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.


“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.

• Nestlé's previous Global CEO was German born H.Maucher, and half of the company’s General Managers are non - Swiss.


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.”


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.


INSIGHT

Types of Organizational CultureStrength of Organizational CultureFunction of Organizational CultureImportance of Culture to the OrganizationCultural modelsCross – cultural perspectivesGeert HofstedeCross – Cultural Issues



Education/Human Capital• Primary/ secondary• Vocational• Professional• Literacy

Social Structure• Kinship/family• Mobility• Nationalism• Urbanization• Social stratification• Paternalism/

materialism

Communication• Language(s)• Dialects• Nonverbal• Media• Technology

Religious Beliefs• Denominations• Totems/taboos• Rituals• Holy days

Values/Ideologies• Work ethic• Time orientation• Individualism/

collectivism• Risk propensity• Achievement

Cultural Environment of International Business

American Japanese Arab

Management Styles Leadership, Friendliness

Persuasion; Functional Group Activities

Coaching Friendliness, Parenthood; Personal Attention

Control Independence, Decision making; Space, Time, Money

Group harmony Of others/Parenthood,

Emotional Appeal Opportunity GroupParticipation; Company

participation

Religion;Nationhood,Admiration

Recognition IndividualContribution

Group identity; Individual,Status /Class, Society; Promotion


“ 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.”


Case in point..


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.

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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.


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)


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.


Levels of culture

i. Dominant cultures

ii. Sub – cultures

iii. Organizational cultures

iv. Occupational cultures

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. The cultural practices of Punjabis are different from those obtaining in Karnataka.

Interestingly, subcultures subsume into the dominant culture to present a unified culture, typifying “ unity in diversity


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 American


Culture has normative value.It prescribes do’s and don'ts 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 generation


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.


• 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.


TYPES OF ORGANIZATIONAL CULTURE


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).


TYPES OF ORGANIZATIONAL CULTURE

• “Collaborate (Clan)” Culture• “Create (Adhocracy)” Culture• “Control (Hierarchy)” Culture• “Compete (Market)” Culture


“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.


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.


“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.


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.


“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 predictablity 04/07/23 Amity Business School,AUUP 32

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.


“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.


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.


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

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japanese firms

dominant culture

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