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
• Chapter 3(3) Diversity

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Chapter 3(1) Organisational Culture, Diversity
Multiculturalism
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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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
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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

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Examples

• Knowledge workers
• Medical doctors nurses
• University academics

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Chapter 3(2) ORGANIZATIONAL CULTURE
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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

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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

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ORGANIZATIONAL KNOWLEDGE

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

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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?

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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

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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

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NATIONS TRADITIONALLY SHAPE ORGANIZATIONS
Business culture
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BUT INFLUENCES COME FROM MULTIPLE SOURCES

• Professional training/groups
• Family
• Subgroups, e.g., RD or accounting

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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

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OFTEN CREATING CULTURE CLASH

• between parent and subsidiary
• among managers

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THUS IN A GLOBAL WORLD, BUSINESSES BECOME
CULTURAL CONDUITS
See page 207 of Introduction to Globalization and
Business by Barbara Parker
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BUSINESS INFLUENCES CULTURE THROUGH

• Global entertainment and electronic media
• Global travel
• Global language
• Global demographic groups
• Global elite
• Global teens
• Business behaviors

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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

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Chapter 3(3) DIVERSITY
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Diversity Defined

• Human diversity
• Visible
• Less or invisible
• Diverse structural configurations
• Diverse processes

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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

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Diversity Initiatives
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Approaches to Managing Human Diversity

• Discrimination and fairness
• Access and legitimacy
• Learning

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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
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Diverse Structures

• Hierarchical
• Export office to functional to divisional to
  hybrids
• Internal horizontal
• Networks, shamrocks, matrix, virtual
• Interorganizational
• Joint ventures
• Strategic alliances

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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