Chapter 3 ORGANIZATIONAL CULTURES AND DIVERSITY Organizational Cultures and Diversity School of Economics and Management Xidian University

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Definition  Organizational Culture: 1.Basic form Shared values and beliefs that enable members to understand their roles and the norms of the organization. 2. Edger Schein A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptations and internal integration, and that has worked well enough to be considered valid and,therefore,to be taught to new members as the correct way to perceive,think,and feel in ralation to those problems.

Characteristics  Observed behavioral regularities, as typified by common language, terminology, and rituals  Dominant values that the organization advocates  high product and service quality  low absenteeism  Norms  amount of work to be done  degree of cooperation between management and employees Organizational Cultures and DiversitySchool of Economics and Management Xidian University

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Organizational Culture Continued A philosophy regarding how employees and customers should be treated Rules that dictate the do’s and don’ts of employee behavior relating to:  productivity  customer relations Organizational climate  How participants interact with each other, conduct themselves with customers…

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Organizational Cultures in MNCs  Aspects in determining MNC organizational culture:  The relationship between the employees and their organization  The hierarchical system of authority that defines the roles of managers and subordinates  The general views that employees hold about the MNC’s purpose, destiny, goals, and their places in them  4 types of organizational cultures:  Family  Eiffel Tower  Guided Missile  Incubator

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Organizational Cultures Equity Fulfillment-orientedProject-oriented culture culture INCUBATORGUIDED MISSILE PersonTask FAMILY EIFFEL TOWER Power-oriented Role-oriented culture culture Hierarchy

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Family Culture Strong emphasis on the hierarchy and orientation to the person  headed by a leader who is regarded as a caring parent  personnel look to leaders for both 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  EX.) Turkey, Venezuela, China, and Singapore

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Eiffel Tower Culture Strong emphasis on the hierarchy and orientation to the task -- impersonal and efficient  Jobs are well defined  everything is coordinated from the top.  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.  Ex.) North American and Northwest European countries

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Guided Missile Culture Strong emphasis on equality in the work place and orientation to the task  Teams and project groups are common  Formal hierarchical considerations are given low priority and individual expertise is of greater importance  360-degree feedback systems are common  Change comes quickly  Ex.) United States and United Kingdom

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Incubator Culture Strong emphasis on equality and personal orientation  based on the concept that organizations are secondary to the fulfillment of the individuals within them  Little formal structure -- participants are there to perform roles  This culture is composed of creative work teams  Change is fast and spontaneous  Leadership is achieved, not gained by position  Ex.) entrepreneurial companies

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Managing Multiculturalism and Diversity  Phases of Multicultural Development  Phase I - Domestic corporations  Phase II - International corporations  Phase III - Multinational corporations  Phase IV - Global corporations

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Types of Multiculturalism –Domestic Multiculturalism –Group Multiculturalism  Homogeneous groups  Token groups  Bicultural groups  Multicultural groups  Potential Problems Associated with Diversity  Mistrust of others  Perceptions and preconceived stereotypes  Inaccurate biases  Miscommunication (misunderstandings & different uses of time)

Organizational Cultures and DiversitySchool of Economics and Management Xidian University  Advantages of Diversity  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

Organizational Cultures and DiversitySchool of Economics and Management Xidian University Using the Proper Guidelines 1. Team members must be selected for their task-related abilities and not solely based on ethnicity -- - Routine Task - want homogeneity. Innovative task - want multiculturalism 2. Team members must recognize and be prepared to deal with their differences --. recognize their own stereotypes 3. diverse teams tend to have more difficulty agreeing on their purpose and task than members of homogenous groups. the team leader must help the group to identify and define its overall goal

Organizational Cultures and DiversitySchool of Economics and Management Xidian University 4. Members must have equal power so that everyone can participate in the process 5. all members have mutual respect for each other 6. Managers must give positive feedback on processes and output

Organizational Cultures and Diversity School of Economics and Management Xidian University