ORGANISATIONAL CULTURES &

DIVERSITYDr.Sekhar Chattopadhyay

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Characteristics of Organizational Culture

OrganizationalCulture

Observedbehavioralregularities

Norms

Philosophyon treatment of employees/

customers

Rules ofemployeebehavior

Organizationalclimate

Dominantvalues

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Four Types of Organizational Cultures:

FamilyEiffel TowerGuided MissileIncubator

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EIFFEL TOWERRule-oriented

culture

Fulfillment-orientedculture

INCUBATOR

FAMILYPower-oriented

culture

Project-orientedculture

GUIDED MISSILE

Equity

Hierarchy

TaskEmphasis

PersonEmphasis

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Family CultureStrong emphasis on the hierarchy and orientation to the person Leader is regarded as a caring parent who knows what’s best for

personnel Leader uses intuitive rather than rational knowledge Leader is motivated by praise rather than money 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

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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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Managing Multiculturalism and Diversity

Phases of Multicultural DevelopmentPhase I - Domestic corporations

Phase II - International corporations

Phase III - Multinational corporations

Phase IV - Global corporations

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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)

Characteristics/Activities

Phase I (Domestic Corporations)

Phase II (International Corporations)

Phase III (Multinational Corporations)

Phase IV (Global Corporations)

Competitors None Few Many Significant (few or many)

Market Small, domestic Large, Larger, Largest, global multidomestic multinational

Production Domestic Domestic and Multinational, Imports and location primary markets least cost exports

Phases of Multicultural Development

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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

Managing Multiculturalism and Diversity

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Creativity

Generation of more and better ideasPrevents “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

Advantages of Diversity

Highly ineffective Average effectiveness Highly effective

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Building Multicultural Team Effectiveness

Using the Proper GuidelinesMembers 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