ORGANIZATIONAL CULTURES AND DIVERSITY

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Chapter 6

• ORGANIZATIONAL CULTURES AND DIVERSITY

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Characteristics of Organizational Culture
Observed behavioral regularities
Philosophy on treatment of employees/ customers
Norms
Rules of employee behavior
Organizational Culture
Dominant values
Organizational climate
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Cultural Variations
Motivation
Relationship
Identity
Communication
Control
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Trompenaars Organizational Cultures in MNCs

• Four Types of Organizational Cultures
• Family
• Eiffel Tower
• Guided Missile
• Incubator

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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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Family Culture

• Strong emphasis on the hierarchy and
• orientation to the person
• Leader is regarded as a caring parent who knows
  whats best for personnel
• Leader is a high level, sensitive person (not
  always the best person for the job)
• Leader uses intuitive rather than rational
  knowledge
• Leader is motivated by praise rather than money
• Leader is looked for as 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

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Eiffel Tower Culture

• Strong emphasis on the hierarchy and orientation
  to the task -- impersonal and efficient
• Jobs are well defined
• Employees know what they are supposed to do
• Everything is coordinated from the top (hierarchy
  structure)
• 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.

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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
• Problem centered
• Focus on work, all committed to goal
• all team members equal
• Do whatever it takes to get the job done
  attitude
• Individual expertise is important
• 360-degree feedback systems are common
• Change comes quickly

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Incubator Culture

• Strong emphasis on equality and personal
  orientation
• Organizations are the self-expression and
  fulfillment of individuals
• Little formal structure, creative work teams
• Intense emotional commitment to work
• All are co-creators, work 70 hr work weeks and
  love it
• Change is fast and spontaneous
• Leadership is achieved, not gained by position
• Entrepreneurial companies

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Relationships between employees
Diffuse relation-ships to organic whole to which
one is bonded
Specific role in mechanical system of required
interaction
Specific tasks in cybernetic system targeted on
shared objectives
Diffuse, spontaneous relationships growing out of
shared creative process
Attitude toward authority
Status is ascribed to parent figures who are
close and powerful
Status is ascribed to superior roles that are
distant yet powerful
Status is achieved by project group members who
contribute to targeted goal
Status is achieved by Individuals Exemplifying
creativity and growth
Ways of thinking and learning
Intuitive, holistic, lateral and error correcting
Logical, analytical, vertical, and rationally
efficient
Problem centered, professional, practical, cross
disciplinary
Process oriented, creative, ad hoc, inspirational
Attitudes toward people
Family members
Human resources
Specialists and experts
Co-creators
Ways of changing
Father changes Course
Change rules and procedures
Shift aim as target moves
Improvise and attune
Ways of motivating and rewarding
Intrinsic satisfaction in being loved and
respected
Promotion to greater position, larger role
Pay or credit for performance and problems solved
Participation in the process of creating new
realities
Management by subjectives
Management by job description
Management by objectives
Management by enthusiasm
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Managing Multiculturalism and Diversity

• Phases of Multicultural Development
• Phase I - Domestic corporations
• Phase II - International corporations
• Phase III - Multinational corporations
• Phase IV - Global corporations

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Phases of Multicultural Development
Primary Product/service Market Price Strategy
orientation Competitive Domestic
Multidomestic Multinational Global
strategy Importance of Marginal Important
Extremely Dominant world
business important Product/service New,
unique More Completely Mass-customized
standardized standardized (commodity)
Competitors None Few Many Significant (few
or many) Market Small, domestic Large,
Larger, Largest, global multidomestic multinat
ional Production Domestic Domestic and
Multinational, Imports and location primary
markets least cost exports
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Managing Multiculturalism and Diversity

• Types of Multiculturalism
• Domestic vs Group Multiculturalism
• Homogeneous groups Token groups
• Bicultural groups Multicultural groups
• Potential Problems Associated with Diversity
• Lack of cohesion
• Mistrust of others
• Perceptions and preconceived stereotypes
• Miscommunication, attitudes and biases
• Multicultural teams are potentially very
  effective or very ineffective

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Advantages of Diversity

• Creativity
• 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
• Understanding the Conditions for Effectiveness
• More effective when facing tasks requiring
  innovativeness

Highly ineffective
Average effectiveness
Highly effective
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Building Multicultural Team Effectiveness

• Using the Proper Guidelines
• Members must be selected for their task-related
  abilities
• Members must recognize and be able to deal with
  differences
• Leader must help group to identify its overall
  goal
• Members must have equal power and respect each
  other
• Managers must provide positive feedback to the
  team