Group 1

What is Cross-Cultural Context ? Cross Cultural Communication in an

organization deals with understanding different business Customs , beliefs and communication Strategies

It becomes Strategically important due to the Impact of globalization in business

ORIGIN OF CROSS CULTURE During the Cold war, the economy of the United States was largely

self-contained because the world was polarized into two separate and competing powers: the East and the West

Business transformed from individual-country capitalism to Global Capitalism

Thus, the study of cross-cultural communication was originally found within businesses and government, both seeking to expand globally

They began to offer language training to their employees and and also to train employees to understand how to act in abroad

With this also came the development of the Foreign Service Institute or FSI, through the  where government employees received trainings and prepared for overseas posts

ASPECTS OF CROSS CULTURE There are several parameters that may be

perceived differently by people of different cultures :

High Context Vs Low Context Cultures Non Verbal , Oral & Written Emblems Illustrators Regulators

High Vs Low Context Culture The concept of high- and low-context

culture relates to how an employee's thoughts, opinions, feelings and upbringing affect how they act within a given culture

NON VERBAL COMMUNICATION Gestures and eye contact are two areas

of nonverbal communication that are utilized differently across cultures

For eg : American workers tend to wave their hand and use a finger to point when giving nonverbal direction. Extreme gesturing is considered rude in some cultures. While pointing may be considered appropriate in some contexts in the United States, Japanese would never use a finger to point towards another person because that gesture is considered rude in Japan

LANGUAGE DIFFRENCES Linguistic differences between the employees

or with the management plays a vital role with companies which compete globally

Certain norms are followed by the organisation , when there is communication between the native employees and the Foreign Clients in order to bring out rapport between them

POWER DISTANCE Power Distance relates to how power is

distributed within the organization Typically , American Companies utilize a low

power distance and have more informal hierarchies that allow for interaction between subordinates and executives

Companies with high power distance are very hierarchal in nature and have severe differences in authority

Japanese companies use different power structure when compared to the American Companies

General Cross Culture Aspects Age Gender Country Values Ethnicity Customs

Leadership and Culture

Strategic Leadership: Embracing Change Telecommunications, computers, the

Internet, and one global marketplace have increased the pace of change exponentially during the past 10 years

The leadership challenge is to galvanize commitment among people within an organization as well as stakeholders outside the organization to embrace change and implement strategies intended to position the organization to succeed in a vastly different future

Clarifying Strategic Intent Leaders help their company embrace change

by setting for their strategic intent—a clear sense of where they want to lead the company and what results they expect to achieve

Leader’s vision—an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership

Make clear the performance expectations a leader has for the organization, and managers in it, as they seek to move toward that vision

Building an Organization1. Education and leadership development

is the effort to familiarize future leaders with the skills important to the company and to develop exceptional leaders among the managers you employ

2. Perseverance is the capacity to see a commitment through to completion long after most people would have stopped trying

3. Principles are your fundamental personal standards that guide your sense of honesty, integrity, and ethical behavior

Shaping Organizational Culture Passion, in a leadership sense, is a highly

motivated sense of commitment to what you do and want to do

Leaders also use reward systems, symbols, and structure among other means to shape the organization’s culture

Leaders look to managers they need to execute strategy as another source of leadership to accept risk and cope with the complexity that change brings about

Recruiting and Developing Talented Operational Leadership

New leaders will each be global managers, change agents, strategists, motivators, strategic decision makers, innovators, and collaborators if the business is to survive and prosper

Today’s need for fluid, learning organizations capable of rapid response, sharing, and cross-cultural synergy place incredible demands on young managers to bring important competencies to the organization

Ex. 12.5 What Competencies Should Managers Possess?

Sources of Power and InfluenceOrganizational

Power Position power Reward power Information power Punitive power

Personal Influence Expert influence Referent influence Peer influence

Ex. 12.6 Management Processes and Levels of Management

Organizational Culture Organizational culture is the set of

important assumptions (often unstated) that members of an organization share in common

Every organization has its own culture Assumptions become shared

assumptions through internalization among an organization’s individual members

The Role of the Organizational Leader The leader is the standard bearer, the

personification, the ongoing embodiment of the culture, or the new example of what it should become

How the leader behaves and emphasizes those aspects of being a leader become what all the organization sees are “the important things to do and value.”

Build Time in the Organization Some leaders have been with the

organization for a long time

Many leaders in recent years, and inevitably in any organization, are new to the top post of the organization

In the other situation, a new leader who is not an “initiated” member of the culture faces a much more challenging task

Ethics Ethical standards are a person’s basis for

differentiating right from wrong The culture of an organization, and

particularly the link between the leader and the culture’s very nature, is inextricably tied to the ethical standards of behavior, actions, decisions, and norms that leader personifies

Shaping Organizational Culture Emphasize key themes or dominant values Encourage dissemination of stories and legends

about core values Institutionalize practices that systematically

reinforce desired beliefs and values Adapt some very common themes in their own

unique ways Manage organizational culture in a global

organization: Social norms Values and attitudes Religion Education

Ex. 12.9 Managing the Strategy-Culture Relationship

Manage the Strategy-Culture Relationship

Link to mission

Maximize synergy

Manage around the culture

Reformulate strategy or culture

Organizational Structure and Culture

Organizational Structure and Culture

OrganizationalStructure

OrganizationalCulture

The formal system of work roles andauthority relationships that govern

how associates and managersinteract with one another.

Involves the values and normsshared by managers and associates

that influence behavior. It is apowerful force in organizations.

Fundamental Elements of Organizational Structure

Structural Characteristics

Structuring Characteristics

Hierarchy

Structural Characteristics

Span of Control

HeightDepartmentation

Functional Organization

VPResearch andDevelopment

VPResearch andDevelopment

VPOperations

VPHuman

Resources

VPFinance

VPMarketing

CEO

Divisional OrganizationCEO

Head of Operations

Head of R&D

Head of Human

Resources

Head of Finance

Head of Marketing

V.P. Product/Service

Area 1

Head of Operations

Head of R&D

Head of Human

Resources

Head of Finance

Head of Marketing

V.P. Product/Service

Area 1

Head of Operations

Head of R&D

Head of Human

Resources

Head of Finance

Head of Marketing

V.P. Product/Service

Area 1

Structuring Characteristics

Centralization Standardization

Formalization Specialization

FreedomSubstantial freedom may exist, but1. Freedom is not unlimited2. Alternative mechanisms are used to ensure that

individuals are working for the good of the organization

3. Values are shared4. Reward systems are used to promote appropriate

behavior

Factors Affecting Structure

CorporateStrategy Growth

Diversification

Developing Organizational Culture

Organizational Culture

NormsReinforcing Outcomes

Shared Values

Individual and Group Behavior

Organizational Culture

EffectivenessCohesion and Morale

LeadershipMentors and Coaches

Clan

EffectivenessCreativity and Innovation

LeadershipEntrepreneurs and

Innovators

Adhocracy

EffectivenessGoal Achievement and

Winning

LeadershipHard Drivers and

Competitors

Market

EffectivenessEfficiency and Order

LeadershipMonitors and Organizers

Hierarchy

Internal Focus/Integration External Focus/Differentiation

Stab

ility

/Con

trol

Flex

ibili

ty/

Dis

cret

ion

Cultural AuditA tool for assessing and understanding the culture of an organization. Use these five steps for conducting the cultural audit:

Analyze process

and content

Analyze responses to critical incidents

Analyze values

and beliefs of culture

creators

Explore anomalies

or puzzling features

Examine linkage – culture

with goals

Subcultures – groups that share values that differ from the main values of the

organization.

CULTURE AND STRATEGY

Strategy and corporate culture

The relationship between company culture and strategy:

- Strategy is a product of culture- Culture is a product of strategy

Definition of culture could also be used as the definition of strategy:

- solution to the problems of external adaptation and internal integration

Cultural models of strategy

Strategic management: - Two main types according to their behaviours,

values and assumptions: Controlling model- information about its environment - quantitative and objective Adapting model- Information from personal sources - qualitative and subjective

Culture shock

Culture shock refers to unpleasant experience with other cultures

International managers experience culture shock at three levels:

- Emotions - Thinking - Social skills and identity