Chapter 3-Organizational Cultures and diversity O Chapter 3(1): Organisational Culture, Diversity & Multiculturalism O Chapter 3(2 Organisational Culture o Chapter 3 (3): Diversity Cross-Cultural Management
1 Cross-Cultural Management 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 Cross-Cultural Management
Cross-Cultural Management 2 Chapter 3(1): Organisational Culture, Diversity & Multiculturalism
Acknowledging Culture CUltural diversity can exist on a national and cross-national leve OFten, managers assume that culture does not play an important role in shaping practices = UNiversalistic approach if it works here, it will work there O Such approach contributed to high failure rates in expatriate missions and international mergers oIn order to manage cross-cultural differences, li managers need to acknowledge and understand them Cross-Cultural Management
3 Cross-Cultural Management 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
Diversity-Related Problems ● Increased ambiguity o Increased complexity and confusion O Difficulty to converge meanings and ● Miscommunication ● Lower cohesiveness O Harder to reach agreement O Harder to make decisions and agree on specifIC actions Cross-Cultural Management
4 Cross-Cultural Management 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
Diversity-Related Advantages EXpanding meanings and Broader cognitive frame& resources MUltiple perspectives O Multiple interpretations O Richer alternatives more ideas o Increased creativity and problem solving skills ● Increased flexibility Cross-Cultural Management
5 Cross-Cultural Management 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
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 n nal business environment of a company, the more competitive advantages cultural diversity has ai Cross-Cultural Management
6 Cross-Cultural Management 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
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 Cross-Cultural Management
7 Cross-Cultural Management 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
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 Ei among subsidiaries that cause coordinator sal problems Cross-Cultural Management
8 Cross-Cultural Management 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
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 es parties Cross-Cultural Management
9 Cross-Cultural Management 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
Organizational Cultures in MNCs <Y2 (cont Family culture Strong emphasis on hierarchy and person orientation Power-oriented with paternalistic leader Leader looked to for quidance Can catalyze and multiply employees' energy Reliance on intuition rather than rational knowledge 10 Cross-Cultural Management
10 Cross-Cultural Management 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