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PowerPoint slides by R. Dennis Middlemist Colorado State University PowerPoint slides by R. Dennis Middlemist Colorado State University Chapter 4 Managing.

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Presentation on theme: "PowerPoint slides by R. Dennis Middlemist Colorado State University PowerPoint slides by R. Dennis Middlemist Colorado State University Chapter 4 Managing."— Presentation transcript:

1 PowerPoint slides by R. Dennis Middlemist Colorado State University PowerPoint slides by R. Dennis Middlemist Colorado State University Chapter 4 Managing Within Cultural Contexts Edited and section on diversity added (PFH)

2 22 ©2005 Prentice Hall Learning Objectives Explain why a thorough understanding of culture is important for all mangers. Define culture. Explain how culture affects managerial behavior and practices. After studying this chapter, you should be able to:

3 33 ©2005 Prentice Hall Learning Objectives 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. After studying this chapter, you should be able to:

4 44 ©2005 Prentice Hall Learning Objectives 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. After studying this chapter, you should be able to:

5 55 ©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

6 66 ©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.

7 77 ©2005 Prentice Hall 0% 10% 20% 30% 40% 50% 60% 80% 70% Sweden Holland USA Denmark UK Switzerland Belgium Germany France Italy Indonesia Japan An Example of Cultural Differences Among Managers 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 Adapted from Exhibit 4.1: Cultural Differences Among Managers

8 88 ©2005 Prentice Hall 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

9 99 ©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.

10 10 ©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)

11 11 ©2005 Prentice Hall 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 Assumptions: the beliefs about fundamental aspects of life lying below the surface, but supporting the culture Levels of Culture Adapted from Exhibit 4.2: Managing Within Cultural Contexts

12 12 ©2005 Prentice Hall 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)

13 13 ©2005 Prentice Hall Basic Assumptions and Their Managerial Assumptions Specific Assumptions Managerial Implications People are meant to dominate the environment People must coexist harmon- iously with the environment Humans and the Environment Firms should seek positions that allow them to coexist with others Strategic plans should be developed to enable the firm to dominate its industry Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

14 14 ©2005 Prentice Hall Basic Assumptions and Their Managerial Assumptions Specific Assumptions Managerial Implications People are generally lazy (Theory X) Work is as natural as play for people (Theory Y) Human Nature Provide people with opportunities and responsibilities and encourage their development Implement systems for monitoring be- havior and establish clear punishment for undesired behavior Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

15 15 ©2005 Prentice Hall Basic Assumptions and Their Managerial Assumptions Specific Assumptions Managerial Implications Individuals have certain rights and freedoms People exist because of others and owe an obligation to them Human Relationships Cooperation with and contributions to the group should be evaluated and rewarded Individual performance should be measured and rewarded Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

16 16 ©2005 Prentice Hall Basic Assumptions and Their Managerial Assumptions Specific Assumptions Managerial Implications People create their own destinies and must plan for the future People should react to and enjoy whatever the present provides Human Activity Planning the future only gets in the way of enjoying the present People who fail to plan should plan to fail Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

17 17 ©2005 Prentice Hall Basic Assumptions and Their Managerial Assumptions Specific Assumptions Managerial Implications Truth objectively exists Truth is what is socially accepted Truth and Reality Opinion leaders are how you influence people and decisions Facts and statistics are how you convince and influence people Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

18 18 ©2005 Prentice Hall Basic Assumptions and Their Managerial Assumptions Specific Assumptions Managerial Implications Time is like a river, what you dont use wisely today is gone forever Time is like a lake, what you dont use today will be there tomorrow Time Taking advantage of the moment is valued. Arriving late for appointments is not a character flaw Time management is a critical skill. Appointments are made well in advance and punctuality is valued Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications

19 19 ©2005 Prentice Hall Questions to Get at Cultural Assumptions Humanitys 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? Humanitys Relationship to the Environment 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? Adapted from Exhibit 4.4: Questions to Get at Cultural Assumptions

20 20 ©2005 Prentice Hall Questions to Get at Cultural Assumptions Nature of Human Activity Is worth assessed through activity and accomplishment? Are inner states of mind and well-being more important than outward deeds? Nature of Truth Is truth objective or does it depend on the eye of the beholder? Are facts the way to persuade people? Nature of Time Is time like a river and what you dont use today will be gone tomorrow? Is time like a lake and what you dont use today will be there tomorrow? Adapted from Exhibit 4.4: Questions to Get at Cultural Assumptions

21 21 ©2005 Prentice Hall 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 Values

22 22 ©2005 Prentice Hall Theoretical people Classification of Values Adapted from Exhibit 8.1: Types of Plans: Key Differences 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 Aesthetic people Value beauty and harmony. They are concerned with grade and symmetry, finding fulfillment in artistic experiences.

23 23 ©2005 Prentice Hall Social people Classification of Values 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. Adapted from Exhibit 4.5: Classification of Values Source: G. W. Allport, P. E. Vernon, and Q. Lindzey, A study of Values (Boston: Houghton Mifflin, What type do you most identify with? Why?

24 24 ©2005 Prentice Hall Levels of Culture – Artifacts and Behaviors 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) Artifacts (visible)

25 25 ©2005 Prentice Hall Culture and Observable Managerial Behaviors Plan for every possible contingency. Develop a plan jointly with boss. Planning Accept unexpected surprises. Develop a plan and then seek bosss approval Managerial Activity Culture BCulture A Structure department strictly by hierarchy. Communicate frequently face to face and rarely use . Organizing Organize department into free-flowing teams. Communicate infrequently face to face and frequently by . Adapted from Exhibit 4.6: Culture and Managerial Behaviors

26 26 ©2005 Prentice Hall Culture and Observable Managerial Behaviors Inform subordinates of decisions. Intervene when there are disputes. Leading Involve subordinates in decision process. Allow subordinates to solve their own problems. Managerial Activity Culture BCulture A Closely monitor activities and directly guide behavior. Emphasize financial results in evaluating performance. Controlling Evaluate and then reward based on results. Focus on customer satisfaction in evaluations. Adapted from Exhibit 4.6: Culture and Managerial Behaviors

27 27 ©2005 Prentice Hall Geerte Hofstede, The IBM Survey, and Cultures 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. Hofstedes analysis identified four key dimensions along which national cultures can be differentiated: Power Distance Uncertainty Avoidance Individualism/Collectivism Masculinity/Femininity

28 28 ©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.

29 29 ©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.

30 30 ©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.

31 31 ©2005 Prentice Hall Masculinity/Femininity Assertive behavior has been termed masculine and the more caring pole, feminine. The study found that womens attitudes and values differed less across cultures than did mens. 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.

32 32 ©2005 Prentice Hall Classification of Values Adapted from Exhibit 8.1: Types of Plans: Key Differences 1. Cost As organizations become more diverse, the cost of a poor job in integrating workers will increase. 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. For multinational organizations, the insight and cultural sensitivity that members with roots in other cultures bring should improve marketing efforts. 2. Resource Acquisition 3. Marketing

33 33 ©2005 Prentice Hall Classification of Values Adapted from Exhibit 4.5: Classification of Values Source: T. H. Cox and S. Blake, Managing Cultural Diversity: Implications for Organizational Competitiveness, Academy of Management Executive 5, no. 3 (1991), p Creativity Diversity of perspectives and less emphasis on conformity to norms of the past should improve creativity. 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. 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. 5. Problem Solving 6. System Flexibility

34 34 ©2005 Prentice Hall 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

35 35 ©2005 Prentice Hall Strong and Weak Cultures 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

36 36 ©2005 Prentice Hall Strong and Weak Cultures Values held Deep Shallow Values Shared WideNarrow Adapted from Exhibit 4.9: Matrix of Cultural Strength 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 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

37 37 ©2005 Prentice Hall 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 Selection Socialization Performance appraisal Rewards and Compensation Stories and Symbols

38 38 ©2005 Prentice Hall Authors 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? To watch this interview, click here.

39 39 ©2005 Prentice Hall Creating and Changing Organization Culture Selection Select individuals whose assumptions, values, and behaviors already match those you desire Selection Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

40 40 ©2005 Prentice Hall Creating and Changing Organization Culture Socialization Orientation Training Arranged interactions with experienced organizational members Selection Socialization Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

41 41 ©2005 Prentice Hall Creating and Changing Organization Culture Performance Appraisal Clarify for new employees what the organization measures and evaluates Selection Socialization Performance Appraisal Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

42 42 ©2005 Prentice Hall Creating and Changing Organization Culture Rewards and Compensation Signal what the organization values by reinforcing desired behaviors in newcomers Selection Socialization Performance Appraisal Rewards & Compensation Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

43 43 ©2005 Prentice Hall Creating and Changing Organization Culture Stories and Symbols Stories communicate company values Rituals play a key role in the symbolic communication of an organizations culture Selection Socialization Performance Appraisal Rewards & Compensation Stories & Symbols Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture

44 44 ©2005 Prentice Hall 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

45 45 ©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

46 46 ©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 schools culture help or hinder any needed changes? Do you think there are any aspects of our schools culture that are detrimental to the school? Which ones? How would you go about changing them?

47 47 ©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

48 48 ©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

49 49 ©2005 Prentice Hall Cultural Diversity Number of Groups Low Performance High Performance Many Few Adapted from Exhibit 4.7: Effects of Cultural Diversity on Productivity

50 50 ©2005 Prentice Hall Challenges managers face with diverse populations Changing demographics Global spotlight Ethnocentrism and stereotypes Discrimination Tokenism

51 51 ©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

52 52 ©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?

53 53 ©2005 Prentice Hall Negative dynamics Women glass ceiling Sexual harassment Ethnic or racial minorities Bicultural stress Role conflict Role overload Older worker Workers with disabilities Stereotypes and prejudice

54 54 ©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

55 55 ©2005 Prentice Hall Levels of organizational commitment Ignoring Differences Complying with External Policies Enforcing External Policies Responding Inadequately Implementing Adequate Programs Taking Effective Action

56 56 ©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

57 57 ©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. To watch this video clip, click here.

58 58 ©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

59 59 ©2005 Prentice Hall Stages in Managing a Diverse Workforce Unconscious incompetence Conscious incompetence Consciously competent Unconscious competence


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