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Additional Internet Sites

http://www.keizai.org/ (U.S.-Japanese Business Forum)

http://www.iht.com/ (International Herald Tribune - Paris, global publishing)

Mgt 485Chapter 7

Mgt 485Chapter 7

Organizational Culture

Mgt-470 6-2Irwin/McGraw-Hill [Modified by EvS]

Irwin/McGraw-Hill [Modified by EvS]

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Definition and Characteristics

Organizational Culture: Observed behavioral regularities, as typified by common language, terminology, and rituals– Norms

amount of work to be done degree of cooperation between

management and employees– Dominant values that the organization

advocates high product and service quality low absenteeism

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Organizational Culture Continued

– A philosophy regarding how employees and customers should be treated

– Rules that dictate the do’s and don’ts of employee behavior relating to:

productivitycustomer relations

– Organizational climate How participants interact with each other, conduct themselves with customers…

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Organizational Cultures in MNCs

Aspects in determining MNC organizational culture:The relationship between the employees and their

organizationThe hierarchical system of authority that defines the

roles of managers and subordinatesThe general views that employees hold about the

MNC’s purpose, destiny, goals, and their places in them

4 types of organizational cultures:FamilyEiffel TowerGuided Missile Incubator

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Organizational CulturesEquity

Fulfillment-oriented Project-oriented culture culture

INCUBATOR GUIDED MISSILE

Person Task

FAMILY EIFFEL TOWER

Power-oriented Role-oriented culture culture

Hierarchy

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Family CultureStrong emphasis on the hierarchy and orientation to the person

headed by a leader who is regarded as a caring parent

personnel look to leaders for both guidance and approval in exchange for looking after them

characterized by traditions, customs, and associations that bind together the personnel

and make it difficult for outsiders to become members

EX.) Turkey, Venezuela, China, and Singapore

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Eiffel Tower Culture

Strong emphasis on the hierarchy and orientation to the task -- impersonal and efficient

Jobs are well defined everything is coordinated from the top. Person holding top position could be replaced at

any time without having an effect on the work being done

assessment centers, appraisal systems, training and development programs, and job rotation are common in managing human resources.

Ex.) North American and Northwest European countries

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Guided Missile Culture

Strong emphasis on equality in the work place and orientation to the task

Teams and project groups are common Formal hierarchical considerations are given

low priority and individual expertise is of greater importance

360-degree feedback systems are common Change comes quickly Ex.) United States and United Kingdom

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Incubator Culture

Strong emphasis on equality and personal orientation

based on the concept that organizations are secondary to the fulfillment of the individuals within them

Little formal structure -- participants are there to perform roles

This culture is composed of creative work teams Change is fast and spontaneous Leadership is achieved, not gained by position Ex.) entrepreneurial companies

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Managing Multiculturalism and Diversity

Phases of Multicultural DevelopmentPhase I - Domestic corporationsPhase II - International

corporationsPhase III - Multinational

corporationsPhase IV - Global corporations

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Types of Multiculturalism– Domestic Multiculturalism – Group Multiculturalism

Homogeneous groups Token groups Bicultural groupsMulticultural groups

Potential Problems Associated with Diversity Mistrust of others Perceptions and preconceived stereotypes Inaccurate biases Miscommunication (misunderstandings &

different uses of time)

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Advantages of Diversity

Generation of more and better ideas

Prevents “groupthink”Culturally diverse groups

can enhance creativity, lead to better decisions, and result in more effective and productive performance

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Using the Proper Guidelines

1. Team members must be selected for their task-related abilities and not solely based on ethnicity -- - Routine Task - want homogeneity

. Innovative task - want multiculturalism2. Team members must recognize and be

prepared to deal with their differences -- . recognize their own stereotypes

3. diverse teams tend to have more difficulty agreeing on their purpose and task than members of homogenous groups. the team leader must help the group to identify and define its overall goal

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4. Members must have equal power so that everyone can participate in the process

5. all members have mutual respect for each other

6. Managers must give positive feedback on processes and output