Managing Within Cultural Contexts

Managing Within Cultural Contexts
Chapter 4 Managing Within Cultural Contexts Edited and section on diversity added (PFH)

Learning Objectives After studying this chapter, you should be able to: Explain why a thorough understanding of culture is important for all mangers. Define culture. Explain how culture affects managerial behavior and practices. These learning objectives are expressed in the chapter and you may prefer to move directly to slide 5, if you are comfortable that students agree with the objectives. It should be noted at this point, that all slides that have been prepared for this and the other chapters, have been animated to assist in the presentation. The most important animations are not the bulleted text items (which are animated) but rather the animation of models and exhibits. Models and exhibits contain “sequenced” animations and attempt to portray in visual terms, what the text attempts to portray in words. Many of the models contained in the textbook are taken out of their “static” context and shown here as the “dynamic” constructs they are. A dynamic construct is one that shows how one variable or event is affected by another, and this implies change. Such concepts should be presented dynamically, which means the animation should reflect the change implied by the construct or model. It is a good idea to “play” through the slides before presenting the materials to be sure you understand how they work. Although these slides can be printed and displayed as “transparencies”, the dynamic nature of the concepts will be less obvious. The slides are best shown in the classroom with your computer connected to the overhead projector. To view the animated presentation, select “View Show” from the Slide Show pull-down menu, or press the F5 key at the top of the keyboard, or select “Slide Show” from the View pull-down menu. . The slides were prepared using Office 2000 to facilitate the likely lowest common denominator for software. However, they will also play under Office XP and newer software. ©2005 Prentice Hall

Learning Objectives After studying this chapter, you should be able to: Describe the role of fundamental assumptions in corporate, regional, or national cultures. Map aspects of culture in terms of the extent to which they are deeply held and widely shared. ©2005 Prentice Hall

Learning Objectives After studying this chapter, you should be able to: Describe the key strategies managers can use to create and change culture. Explain the differences between and describe the implications of high‑ and low‑context cultures. ©2005 Prentice Hall

Definition of Culture Culture
Learned set of assumptions, values, and behaviors Accepted as successful Passed on to new comers Culture begins when a group of people faces a set of challenges Culture evolves and changes with time A good teaching strategy here would be to get students to give examples of cultures from their own experiences with organizations or clubs. You might ask them to list some assumptions, values and accepted behaviors from well-known groups such as a fraternity or sorority, the boy scouts or girl scouts, etc. Ask them to describe some of the challenges and changes faced by these organizations. ©2005 Prentice Hall

Culture is learned Through symbols and communication, such as stories, speeches, discussions, manuals, novels, poems, art, etc. Where does it come from originally? In organizations, the founders and early leaders use their own personal values. Successful or powerful newcomers may bring behaviors and values with them. ©2005 Prentice Hall

An Example of Cultural Differences Among Managers
78 0% 10% 20% 30% 40% 50% 60% 80% 70% “It is important for a manager to have at hand precise answers to most of the questions his/her subordinates may raise about their work.” 73 66 53 46 44 38 27 23 17 18 Exhibit 4.1, from page 118, has been animated to display each nation one-at-a-time. These will occur automatically on the first mouse click. The purpose is not to allow point-by-point discussion of each country, but simply to help isolate the differences between the nations. These international differences are with regard to only one issue, the expectation that managers will have precise answers to subordinates’ questions, and be able to respond quickly when asked that question. Can students identify any consistencies between the nations that might have led to such a cultural expectation? 10 UK USA Italy Japan Sweden France Holland Denmark Belgium Germany Indonesia Switzerland ©2005 Prentice Hall Adapted from Exhibit 4.1: Cultural Differences Among Managers

Impact of Culture on Behavior
How people observe and interpret the business world around them Can lead to different beliefs about “right” behaviors Subordinates who identify with the culture of a unit or company are likely to try harder to make it successful What are “right behaviors” in some organization known to them? Which of these behaviors might not be right in another organization, such as a church, etc.? ©2005 Prentice Hall

Consider the facts More than half the workforce is comprised of women, minorities, and immigrants. There are three times as many foreign-born workers in the US today then 30 years ago. By 2015, only 15% of those entering the workforce will be white males. The majority of current American immigrants are from Asian and Latin American countries. ©2005 Prentice Hall

Culture as a Management Tool
A strong culture helps to guide individual workers’ behavior even in the absence of direct managerial supervision. A strong culture helps organizations achieve high performance. A recent MIT study found more reliable financial performance in companies with strong cultures. A ten-year study of 160 companies found culture to be one of the four primary management practices found in companies that outperform others in their industries. Managers must be careful what they instill as the cultural values of the unit (organization) ©2005 Prentice Hall

Levels of Culture Artifacts: visible manifestations of a culture such as its art, clothing, food, architecture, and customs Values: enduring beliefs that specific conduct or end states which are personally or socially preferred to others Exhibit 4.2 (see page 121) stresses the “building block” nature of culture. The basic building block (roots) supports the values, which in return supports the visible manifestations of the culture. Assumptions: the beliefs about fundamental aspects of life lying below the surface, but supporting the culture ©2005 Prentice Hall Adapted from Exhibit 4.2: Managing Within Cultural Contexts

Levels of Culture – Assumptions
Cultural assumptions Certain cultural values and behaviors are only possible with certain underlying cultural assumptions An understanding of assumptions is necessary to understand, change, or even create a new culture Assumptions (Hidden) This is one of three slides to be presented that focuses on one of the “building blocks” of culture. Exhibit 4.2 has been adapted for the purpose of highlighting which level of culture is being addressed. With regards to “assumptions,” there are six basic assumptions and it will be important for students to understand each assumption. There are six slides that follow this one which will detail the assumptions. When the last assumption is examined, the slides will return to the next level of culture. ©2005 Prentice Hall

Basic Assumptions and Their Managerial Assumptions
Specific Assumptions Specific Assumptions People must coexist harmon-iously with the environment Humans and the Environment People are meant to dominate the environment Managerial Implications Managerial Implications This slide is an adaptation of Exhibit 4.3, seen on page It has been adapted for the purpose of keeping the size of type readable, which causes a slightly different appearance, and it has been animated to permit point-by-point discussion of the component parts. This is true for the next 5 assumptions as well. You should note that each assumption shows two “opposite” assumptions falling under each category of assumptions. Strategic plans should be developed to enable the firm to dominate its industry Firms should seek positions that allow them to coexist with others ©2005 Prentice Hall Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

Specific Assumptions Specific Assumptions Work is as natural as play for people (Theory Y) Human Nature People are generally lazy (Theory X) Managerial Implications Managerial Implications Provide people with opportunities and responsibilities and encourage their development Implement systems for monitoring be-havior and establish clear punishment for undesired behavior ©2005 Prentice Hall Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

Specific Assumptions Specific Assumptions People exist because of others and owe an obligation to them Individuals have certain rights and freedoms Human Relationships Managerial Implications Managerial Implications Cooperation with and contributions to the’ group should be evaluated and rewarded Individual performance should be measured and rewarded ©2005 Prentice Hall Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

Specific Assumptions Specific Assumptions People should react to and enjoy whatever the present provides People create their own destinies and must plan for the future Human Activity Managerial Implications Managerial Implications Planning the future only gets in the way of enjoying the present People who fail to plan should plan to fail ©2005 Prentice Hall Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

Specific Assumptions Specific Assumptions Truth is what is socially accepted Truth and Reality Truth objectively exists Managerial Implications Managerial Implications Opinion leaders are how you influence people and decisions Facts and statistics are how you convince and influence people ©2005 Prentice Hall Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

Specific Assumptions Specific Assumptions Time is like a lake, what you don’t use today will be there tomorrow Time is like a river, what you don’t use wisely today is gone forever Time Managerial Implications Managerial Implications Time management is a critical skill. Appointments are made well in advance and punctuality is valued Taking advantage of the moment is valued. Arriving late for appointments is not a character flaw ©2005 Prentice Hall Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

Questions to Get at Cultural Assumptions
Humanity’s Relationship to the Environment Should we dominate the environment? How right is logging, mining or building dams? Nature of Human Nature Are people basically good or evil? Are workers basically self-motivated or lazy? Should people be treated as equals? Are hierarchical and status difference right and natural? Are individuals more important than groups? Should individual interests be subjected to those of the group? This slide, and the next are adapted from Exhibit 4.4 (page 127 of the text). If you present this in the “view show” mode, which I recommend, the the two slides will appear as one. Each category is presented, one at a time, and animated to permit point-by-point discussion. Humanity’s Relationship to the Environment ©2005 Prentice Hall Adapted from Exhibit 4.4: Questions to Get at Cultural Assumptions

Questions to Get at Cultural Assumptions
Is worth assessed through activity and accomplishment? Are inner states of mind and well-being more important than outward deeds? Nature of Human Activity Nature of Truth Is truth objective or does it depend on the eye of the beholder? Are facts the way to persuade people? Is time like a river and what you don’t use today will be gone tomorrow? Is time like a lake and what you don’t use today will be there tomorrow? Nature of Time ©2005 Prentice Hall Adapted from Exhibit 4.4: Questions to Get at Cultural Assumptions

Levels of Culture – Values
Cultural Values Enduring beliefs that specific conduct or end states of existence are personally and socially preferred to others Managerial values are enduring beliefs about specific ways of managing and conducting business that are deemed successful enough to be passed on This slide returns us to the second level of culture, “values.” The next two slides present the questions that one might ask to assess each of the values associated with the six assumptions (see previous slides). ©2005 Prentice Hall

Classification of Values
Theoretical people Value the discovery of truth. They are empirical, critical, and rational, aiming to order and systematize their knowledge. Economic people Value what is useful. They are interested in practical affairs, especially those of business, judging things by their usefulness This and the next slide are an adaptation of Exhibit 4.5 (page 128), but will appear as one slide if presented in the “View Show” mode. It has been animated to permit point-by-point discussion. It presents examples of values held by six different groups (types) of people. Aesthetic people Value beauty and harmony. They are concerned with grade and symmetry, finding fulfillment in artistic experiences. ©2005 Prentice Hall Adapted from Exhibit 8.1: Types of Plans: Key Differences

Social people Value altruistic and philanthropic love. They are kind, sympathetic, and unselfish, valuing other people as ends in themselves. Religious people Value unity. They seek communication with the cosmos, mystically relating to its wholeness. This and the next slide are an adaptation of Exhibit 4.5 (page 128), but will appear as one slide if presented in the “View Show” mode. It has been animated to permit point-by-point discussion. It presents examples of values held by six different groups (types) of people. What type do you most identify with? Why? Source: G. W. Allport, P. E. Vernon, and Q. Lindzey, A study of Values (Boston: Houghton Mifflin, 1966. ©2005 Prentice Hall Adapted from Exhibit 4.5: Classification of Values

Levels of Culture – Artifacts and Behaviors
(visible) Cultural Artifacts and Behavior In modern organizations, important artifacts include Office arrangements (individual offices for all versus open offices with no walls) Parking arrangements (reserved spaces for some versus open spaces for all) Clothing (individual suits versus uniforms) This and the next two slides present discussion points for the third level of culture—artifacts and behavior. It might be fun to elicit examples from students of artifacts they see around them in the university setting. ©2005 Prentice Hall

Culture and Observable Managerial Behaviors
Culture B Culture A Managerial Activity Plan for every possible contingency. Develop a plan jointly with boss. Accept unexpected surprises. Develop a plan and then seek boss’s approval Planning Structure department strictly by hierarchy. Communicate frequently face to face and rarely use . Organize department into free-flowing teams. Communicate infrequently face to face and frequently by . This slide and the next one are adapted from Exhibit 4.6 (page 129). The exhibit is animated to permit point-by-point discussion of two “opposite” cultures regarding four managerial activities. If presented in the “view show” mode, they will appear as one slide. Organizing ©2005 Prentice Hall Adapted from Exhibit 4.6: Culture and Managerial Behaviors

Culture and Observable Managerial Behaviors
Culture B Culture A Managerial Activity Inform subordinates of decisions. Intervene when there are disputes. Involve subordinates in decision process. Allow subordinates to solve their own problems. Leading Closely monitor activities and directly guide behavior. Emphasize financial results in evaluating performance. Evaluate and then reward based on results. Focus on customer satisfaction in evaluations. Controlling ©2005 Prentice Hall Adapted from Exhibit 4.6: Culture and Managerial Behaviors

Geerte Hofstede, The IBM Survey, and Culture’s Consequences
From Hofstede administered approximately 117,000 surveys to employees of IBM in 71 countries. Due to the strong corporate culture at IBM at the time, any differences in values and attitudes among the employees could be attributed to national rather than organizational culture. Hofstede’s analysis identified four key dimensions along which national cultures can be differentiated: Power Distance Uncertainty Avoidance Individualism/Collectivism Masculinity/Femininity ©2005 Prentice Hall

Power distance This dimension measures the extent to which less powerful members of a society expect and accept that others will have more power than they and that power will not be distributed evenly within the culture. The findings suggest that the existence of power inequality is accepted by the lower powered members of a society as well as the higher-powered members. ©2005 Prentice Hall

Uncertainty Avoidance
This dimension measures the extent to which the members of a given culture are socialized to be comfortable or uncomfortable in uncertain, ambiguous situations. Cultures with high levels of uncertainty avoidance tend to limit ambiguity through laws, rules, religious and philosophical tenets, and a belief in determinate reality. Members of cultures with lower levels of uncertainty avoidance tend to be more accepting of opinions different from their own, more flexible in dealing with new situations. ©2005 Prentice Hall

Individualism/Collectivism
This dimension measures the strength of ties individuals have to the groups they belong to. Members of individualistic cultures have very loose ties to others, with their main focus on themselves and their immediate family. Members of collectivistic societies on the other hand are socialized from birth to have strong ties to the groups to which they belong. ©2005 Prentice Hall

Masculinity/Femininity
Assertive behavior has been termed masculine and the more caring pole, feminine. The study found that women’s attitudes and values differed less across cultures than did men’s. Whereas a woman in a masculine culture might be slightly more assertive than a woman in a feminine culture, the males in a masculine culture were much more assertive than the males in a feminine culture. ©2005 Prentice Hall

Cost As organizations become more diverse, the cost of a poor job in integrating workers will increase. Resource Acquisition Companies with the best reputations for managing diversity will win the competition for the best personnel. As the labor pool shrinks and becomes more diverse, this edge will become increasingly important. This and the next slide, adapted from Exhibit 4.8, will appear as one in the “View Show” mode. It presents six factors associated with strong and weak cultures. The exhibit is animated to permit point-by-point discussion of the six factors associated with strong and weak cultures. Marketing For multinational organizations, the insight and cultural sensitivity that members with roots in other cultures bring should improve marketing efforts. ©2005 Prentice Hall Adapted from Exhibit 8.1: Types of Plans: Key Differences

Creativity Diversity of perspectives and less emphasis on conformity to norms of the past should improve creativity. Problem Solving Cultural diversity in decision and problem solving groups potentially produces better decisions through consideration of a wider range of and more thorough critical analysis of issues. System Flexibility Cultural diversity enables the system to be less determinant, less standardized, and therefore more fluid, which will create more flexibility to react to environmental chang4es. Source: T. H. Cox and S. Blake, “Managing Cultural Diversity: Implications for Organizational Competitiveness,” Academy of Management Executive 5, no. 3 (1991), p. 23. ©2005 Prentice Hall Adapted from Exhibit 4.5: Classification of Values

Strong and Weak Cultures
Core value - a specific behavior that is Widely shared Deeply held Directly related to one or more of the six fundamental assumptions Difficult to change Please Note: Managerial roles in strong and weak cultures is the subject of an interview with Stewart Black in “Author’s Corner” which is the last slide in this set. You can defer showing that video clip until the last slide, or if you prefer, simply type 40 and press Enter or Return on your keyboard when you are in the View Show mode. This will take you immediately to that slide and you can show the video clip. When you are done with that clip, close the video box, type in 32 and press Enter or Return and you will return to this slide, where you can continue your presentation, exactly where you left off. Thus, you could choose to go to Author’s Corner after showing the final bullet in the exhibit, see Black’s clip, and return here where you can then click the mouse button to continue your presentation exactly where you left off. That next click will forward you to the next slide, since you had already finished the last bulleted point here. ©2005 Prentice Hall

The strength of cultures varies along two dimensions The extent to which they are are widely shared among group members The extent to which they are deeply held Subculture Cultural values are deeply held but not widely shared ©2005 Prentice Hall

Deep Shallow Narrowly Shared Deeply Held Violation of these values usually results in informal but significant sanctions Widely Shared Deeply Held Violation of these values usually results in formal but significant sanctions Values held Narrowly Shared Shallowly Held Violation of these values usually results in sanctions that are inconsistent Widely Shared Shallowly Held Violation of these values usually results in minor sanctions or second chances This adaptation of Exhibit 4.9 on page 132, is animated and will permit point-by-point discussion of the four quadrants derived from the “values held” and “values shared” dimensions. It is another opportunity to elicit discussion from students by asking if they have examples from life of, for example, values that were narrowly shared, but deeply held. Also, ask students to identify the “strong culture” and the “weak culture” in this figure, before having that discussion, to see if they understand the nature of strong and weak cultures. Values Shared Wide Narrow ©2005 Prentice Hall Adapted from Exhibit 4.9: Matrix of Cultural Strength

Creating and Changing Organization Culture
To create and reinforce a particular set of values or corporate culture Alignment between desired values and other systems in the organization needs to exist Five critical strategies to effectively manage organizational culture This slide precedes Exhibit 4.10 and identifies five critical strategies to effectively manage organizational culture. These five strategies are focused on five organizational activities that have strong association with the building of a consistent organizational culture. Selection Socialization Performance appraisal Rewards and Compensation Stories and Symbols ©2005 Prentice Hall

Author’s Corner In this interview, Stewart Black responds to the following question about strong and weak cultures. How do managers’ roles differ in strong vs. weak cultures? The video clip will play when you click on the “Television” icon, if you are in the View Show mode. If you came to this slide from slide 32, you can play the video clip, then close its box, type in the number 32 and press enter or return on your keyboard, and you will be returned to that slide, at the point where you left the presentation. To watch this interview, click here. ©2005 Prentice Hall

Selection Select individuals whose assumptions, values, and behaviors already match those you desire Selection Exhibit 4.10 on page 137, has been animated to present each factor one-at-a-time, permitting point-by-point discussion of the model for managing organizational culture. It is presented in this and four additional slides. As usual, if presented in the “View Show” mode, they will appear as one slide. ©2005 Prentice Hall Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

Socialization Orientation Training Arranged interactions with experienced organizational members Selection Socialization ©2005 Prentice Hall Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

Performance Appraisal Clarify for new employees what the organization measures and evaluates Selection Socialization Performance Appraisal ©2005 Prentice Hall Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

Rewards and Compensation Signal what the organization values by reinforcing desired behaviors in newcomers Selection Rewards & Compensation Socialization Performance Appraisal ©2005 Prentice Hall Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

Stories and Symbols Stories communicate company values Rituals play a key role in the symbolic communication of an organization’s culture Stories & Symbols Selection Rewards & Compensation Socialization Performance Appraisal ©2005 Prentice Hall Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

International Contexts and Cultures
Cultural context: degree to which a situation influences behavior or perception of “appropriateness” In high-context cultures, people pay close attention to the situation and its various elements in assessing appropriate behavior In low-context cultures, the situation may or may not make a difference in what is considered appropriate behavior Neither high nor low-context cultures are right or wrong, just different ©2005 Prentice Hall

Our culture? Do any of you or your families come from somewhere outside the United States? How does the culture differ? What is the hardest thing about our culture? Does this college have a culture? Exercise – CULTURE ANALYSIS ©2005 Prentice Hall

Debrief What elements do you feel you know the least about? The most? Why do you think this is? Thinking back on Environmental Analyses, what forces do you think are most likely to impact this school in the near future? Will the school’s culture help or hinder any needed changes? Do you think there are any aspects of our school’s culture that are detrimental to the school? Which ones? How would you go about changing them? ©2005 Prentice Hall

Cultural Diversity Diversity comes from two primary sources
Increased international activity of organizations Greater diversity in the cultures of employees Diversity includes differences in Age, race, ethnicity, gender, physical abilities, and sexual orientation Work background, income, marital status, military experience, religious beliefs, geographic location, parental status, and education ©2005 Prentice Hall

Majority and Minority Groups
Majority groups are people who hold most of the command decision-making positions, control resources and information, and have more access to system rewards. Minority groups are a similar group of people, but lack critical power, resources, and social status. Give an example of a “minority” and majority ©2005 Prentice Hall

Cultural Diversity Many Few Number of Groups Low Performance
This adaptation of Exhibit 4.7 (see page 130) has been animated to permit a discussion of homogenous and diverse groups before revealing the findings on the two dimensions of number of groups and performance, before revealing the graphed relationships. Low Performance High Performance ©2005 Prentice Hall Adapted from Exhibit 4.7: Effects of Cultural Diversity on Productivity

Challenges managers face with diverse populations
Changing demographics Global spotlight Ethnocentrism and stereotypes Discrimination Tokenism ©2005 Prentice Hall

Changing Demographics
Five demographic issues for the twenty-first century: Slowest growth since the 1930s Average age rises and new entrant pool shrinks More women enter workforce Minorities make up larger share of new entrants Immigrants represent largest share of increase ©2005 Prentice Hall

Questions Who feels comfortable with diversity?
What are the general attributes of a female executive? Would you hire a woman who shared during the interview that she was looking forward to starting a family? What about someone who is disabled? Under what circumstances is it important to readily communicate in English? Would you hire a 60+ person? Can a man charge sexual discrimination? ©2005 Prentice Hall

Negative dynamics Women Ethnic or racial minorities Older worker
“glass ceiling” Sexual harassment Ethnic or racial minorities Bicultural stress Role conflict Role overload Older worker Workers with disabilities Stereotypes and prejudice ©2005 Prentice Hall

Pluralism Def. - A condition in which numerous distinct ethnic, religious, or cultural groups are present and tolerated within a society. The belief that such a condition is desirable or socially beneficial. ‘‘Golden Rule” Approach Assimilation Approach ‘‘Righting-the-Wrongs” Approach Culture-Specific Approach Multicultural Approach ©2005 Prentice Hall

Levels of organizational commitment
Ignoring Differences Complying with External Policies Enforcing External Policies Responding Inadequately Implementing Adequate Programs Taking Effective Action ©2005 Prentice Hall

Focus of Diversity Training
Behavioral awareness Acknowledgment of biases and stereotypes Focus on job performance Avoidance of assumptions Modification of policy and procedure manuals ©2005 Prentice Hall

Core values at Dupont - supporting diversity
Modern corporations arrive at diversity programs through their human resource function. As seen in this short video clip taken from one of the BNN videos (DuPont Corporation) these corporations support diversity as a key element for effectively competing in the business world. This slide permits you to view (optional) a short video clip of an application of management concepts in the business world. This clip will run less than a minute if you choose to view it. The video clip is activated by clicking on the video icon while you are in the “View Show” mode. When you click on the icon, the video will open on top of the PowerPoint window (you will still see most of the slide) and will play when you click on the video play button, or press the space bar. When you are done viewing the video, close its window by clicking on its close box, and you again have control of the PowerPoint presentation. This video clip was chosen simply as a means for students to see how one company, DuPont, views diversity as a key ingredient in creating competitive advantage. DuPont arrived at its cutting edge diversity program through the evolution of its human resource activities, designing ways to keep employees and to keep them productive. Diversity integrated as part of DuPont’s core values. A “fail-safe” mechanism has been inserted in this slide to keep an inadvertent mouse click from sending you to the next slide before you want to go there. It may take one additional mouse click to advance to the next slide. To watch this video clip, click here. ©2005 Prentice Hall

Top-down support results in:
Skilled managers Education and diversity training programs Organization promotes diversity and fosters peer support Open communication Recognition for employees’ development Recognition for employee contributions Organizational rewards for managers’ implementation ©2005 Prentice Hall

Stages in Managing a Diverse Workforce
“Unconscious incompetence” “Conscious incompetence” “Consciously competent’’ “Unconscious competence” ©2005 Prentice Hall

Managing Within Cultural Contexts

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