Chapter 14 Cultural Influences. Every organization exists in an external culture and perpetuates its...
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Transcript of Chapter 14 Cultural Influences. Every organization exists in an external culture and perpetuates its...
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Chapter 14
Cultural Influences
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Cultural Influences
• Every organization exists in an external culture and perpetuates its own internal culture
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Organizational Culture
• The shared values and norms that exist in an organization that are taught to incoming employees
• Involves common beliefs and feelings, regularities in behavior, historical process for transmitting values and norms– “The way we do things around here”
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Organizational Culture (cont.)
• Rituals and stories play key roles in maintaining organizational cultures
• Stories or myths may convey beliefs of company’s founder, or other major values
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Measurement and Change of
Organizational Culture• Discuss it with a motivated insider
• Observe it as an employee
• Survey employees
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Creation and Maintenance of Organizational Culture
• There are at least four influences
• Beliefs and values of the organization’s founder
• Societal norms of firm’s native/host country
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Creation and Maintenance of Org. Culture (cont.)
• Problems of external adaptation and survival
• Problems of internal integration
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Creation and Maintenance of Org. Culture (cont.)
• Reinforcement of culture can be best understood by knowing:– What managers consider important; what
they measure and control– The manner in which top management
reacts to crises and critical events– Deliberate role modeling provided by
managers
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Creation and Maintenance of Org. Culture (cont.)
– Criteria for distributing rewards and status– Criteria for hiring, firing, promotion
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A Framework for Understanding Organizational
Culture• According to Smith and Vecchio, origin,
maintenance, and modification of culture can be understood in terms of the six central concepts:– Critical decisions of the entrepreneur or
founding members– Guiding ideas and mission– Social structure
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A Framework for Understanding Organizational
Culture (cont.)– Norms and values– Remembered history and symbolism– Institutionalized arrangements
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Studies of Organizational Culture• Indicate that applicants with greater
“fit” to the organization’s value system may experience greater commitment and job satisfaction and less turnover
• Dominant culture
• Subcultures
• Strong culture
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Cross-Cultural Research
• Explores the differences and similarities among members of different societal cultures
• Cultural Differences
• Dimensions of cultural differences
• Japanese management
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Cultural Differences
• Research on pace of life in various countries suggest that Westerners have fairly precise measures of time and a stronger concern for punctuality than most other people– Monochronic style individuals focus on one
thing at a time; characteristic of USA
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Cultural Differences (cont.)
– Polychronic style individuals focus on several things at one time; characteristics of Latin American countries
• Research has shown that countries differ significantly in terms of interpersonal trust
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Cultural Differences (cont.)
• Managers often have many common views on business-related activities regardless of national affiliation
• Clusters of similarities are found in some groupings of countries, e.g., United States, Canada, Australia, Britain hold fairly similar attitudes
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Cultural Differences (cont.)
• Clusters of countries often differ on attitudes toward sharing information and belief that individuals have capacity for leadership and initiative
• Americans object to elitist conduct and class distinction, while in many other countries social rank is readily invoked
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Dimensions of Cultural Differences
• Power-distance
• Avoidance of uncertainty
• Individualism v. Collectivism
• Masculinity v. Femininity
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Japanese Management
• Characterized by consensus in decision making, commitment of workers to the organizations that employs them, and rewards based on seniority, rather than on merit
• Focus on productivity and quality– Reliance on informal approach to
controlling behavior of employees
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Japanese Management (cont.)
– Japan’s industrial strength lies in only a few areas, e.g, machine tools, steel, and automobiles
– Many students of Japanese management feel it’s not reasonable to think in terms of transplanting many features of Japanese management into the US
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Components of Japanese Management
• Informal control of employees
• Consensus seeking
• Emphasis on quality and production
• Commitment to the worker
• Intensive socialization
• Slow evaluation and promotion
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Doing Business Overseas
• Integration of the world economy is increasing and has produced a large demand for internationally skilled managers
• First step in learning to relate with people from other cultures, it is useful to consider how we are seen by others
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Doing Business Overseas (cont.)
• Functioning as a manger in another country requires an understanding of the traditions, customs, and business practices of the host country
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Tips on doing business in:
• Latin America
• East Asia (Japan, Korea, China)
• Russia
• Middle East
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Latin America
• Few people rush into business
• Men and women still congregate into separate groups at social functions
• Latin Americans stand more closely to each other than North Americans when in conversation
• Men may embrace
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Latin America (cont.)
• Guests are expected to arrive late, with exception of American guests
• Little concern about deadlines
• Machismo - expectation that businessmen will display forcefulness, self-confidence, leadership with flourish
• Fatalism
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East Asia
• Japan, Korea, China
• Meetings devoted to pleasantries; serving tea, engaging in chitchat
• Seniors and elders command respect
• Consciously use slow down techniques as bargaining ploys
• Business cards should be bilingual
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Russia
• Protocol-conscious
• Do business only with highest ranking executives
• Appear stiff and dull
• More expressive in private than in public
• Hard to draw up contracts due to language barriers
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Russia (cont.)
• Have no advertising experience
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Middle East
• Prefer to act through trusted third parties
• Personal honor given high premium
• Avoid shame
• Fatalism
• Emotionally expressive
• Intense eye contact
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Middle East (cont.)
• Guests should avoid discussing politics, religion, host’s family and personal professions
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Methods of Cross-Cultural Training
• Created to teach members of one culture ways of interacting effectively with another
• Programs vary from lectures and readings to role-playing exercises, simulations, and practice in functioning within the host country itself
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Methods of Cross-Cultural Training (cont.)
• Two techniques of cross-cultural training– Culture Assimilator– Simulation
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Culture Assimilator
• Designed by social scientists at the University of Illinois under the direction of Harry Triandis
• Culture-specific
• Provides the learner with immediate feedback on his/her response to a hypothetical situation
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Culture Assimilator (cont.)
• Not only tells whether response is correct or not, but also gives an explanation regarding why it is correct or is not correct
• Has been studied extensively, possibly more than any other cross-cultural training method
• Data suggests that it reduces interpersonal and adjustment problems between trainees and members of the host country
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Simulation
• A situation is created through which individuals experience certain elements of behavior they may encounter in another country
• Learning is primarily inductive
• Role-play to learn (example is the game Bafa, Bafa)
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Simulation (cont.)
• Post-role-playing debriefing helps learners understand their own and others’ behavior
• Participants are led to realize that fully understanding the subtleties of another culture requires experience
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Simulation (cont.)
• Participants learn that:– what is accepted as sensible and reasonable
in one country may seem irrational or unimportant to an outsider
– Differences among people are often seen as potentially threatening
– Stereotyping is a fairly natural process