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Chapter 3-Organizational Cultures and Diversity

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Chapter 3-Organizational Cultures and Diversity Chapter 3(1): Organisational Culture, Diversity &Multiculturalism Chapter 3(2): Organisational Culture – PowerPoint PPT presentation

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Title: Chapter 3-Organizational Cultures and Diversity


1
Chapter 3-Organizational Cultures and Diversity
  • Chapter 3(1) Organisational Culture, Diversity
    Multiculturalism
  • Chapter 3(2) Organisational Culture
  • 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 gt
  • 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 MNCs organizational culture in one countrys
    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
EIFFEL TOWER Rule-oriented culture
FAMILY Power-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
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18
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19
Chapter 3(2) ORGANIZATIONAL CULTURE
20
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

21
CULTURE HELPS ORGANIZATIONS INTEGRATE INTERNALLY
(PPS) AND ADAPT/SHAPE EXTERNALITIES (6 GLOBAL
ENVIRONMENTS) TO SURVIVE.
CULTURE REVIEWED
  • Culture permeates the organization
  • Through knowledge acquisition
  • Organizational symbols
  • Organizational stories
  • Organizational rites

22
ORGANIZATIONAL KNOWLEDGE
  • Explicitformalized and widely distributed
  • Implicitnorms or how we do things around here

23
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?

24
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

25
ORGANIZATIONAL RITES REINFORM NORMS
  • Rites of degradation dissolve a persons
    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

26
NATIONS TRADITIONALLY SHAPE ORGANIZATIONS
Business culture
27
BUT INFLUENCES COME FROM MULTIPLE SOURCES
  • Professional training/groups
  • Family
  • Subgroups, e.g., RD or accounting

28
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

29
OFTEN CREATING CULTURE CLASH
  • between parent and subsidiary
  • among managers

30
THUS IN A GLOBAL WORLD, BUSINESSES BECOME
CULTURAL CONDUITS
See page 207 of Introduction to Globalization and
Business by Barbara Parker
31
BUSINESS INFLUENCES CULTURE THROUGH
  • Global entertainment and electronic media
  • Global travel
  • Global language
  • Global demographic groups
  • Global elite
  • Global teens
  • Business behaviors

32
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

33
Chapter 3(3) DIVERSITY
34
Diversity Defined
  • Human diversity
  • Visible
  • Less or invisible
  • Diverse structural configurations
  • Diverse processes

35
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

36
Diversity Initiatives
37
Approaches to Managing Human Diversity
  • Discrimination and fairness
  • Access and legitimacy
  • Learning

38

Strategic Responses for Managing Diversity and
their Implementation
Episodic
Freestanding
Systemic
Strategic responses for managing
diversity Proactive
Accommodative Defensive
Reactive
Pressures for Diversity Low High
Marginal Strategic Executive
priorities for managing diversity
39
Diverse Structures
  • Hierarchical
  • Export office to functional to divisional to
    hybrids
  • Internal horizontal
  • Networks, shamrocks, matrix, virtual
  • Interorganizational
  • Joint ventures
  • Strategic alliances

40
Diverse Processes
  • ITintegration depends on infrastructures that
    vary
  • HRselection, development, and compensation in
    different nations and regions
  • Labor practices and conditions
  • Social responsibility and ethics initiatives
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