Organizational Cultures and Diversitychapter sixMcGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.6-2Chapter Objectives1.DEFINE what is meant by organizational culture; discuss interaction of national and MNC culture 2.IDENTIFY four most common categories of organizational culture and discuss characteristics of each 3.PROVIDE overview of nature and degree of multi- culturalism and diversity in todays MNCs. 4.DISCUSS common guidelines and principles used in building team and organizational multicultural effectiveness. 6-3The Nature of Organizational Culture Organizational culture: shared values and beliefs enabling members to understand their roles and the norms of the organization, including: Observed behavioral regularities, typified by common language, terminology, rituals Norms, reflected by things such as amount of work to do and degree of cooperation between management and employees Dominant values organization advocates and expected participants to share (e.g., low absenteeism, high efficiency)6-4Organizational Culture (continued) Other values and beliefs: Philosophy set forth regarding how to treat employees and customers Rules dictating dos and donts of employee behavior pertaining to productivity intergroup cooperation Organizational climate as reflected by way participants interact with each other, treat customers, and feel about how treated by senior level management6-5Interaction between National and Organizational Culture National cultural values of employees may significantly impact their organizational performance Cultural values employees bring to workplace are not easily changed by organization6-6Dimensions of Organizational Culture6-7European Perceptions of Cultural Dimensions of U.S. Operations (same MNC)6-8Organizational Cultures in MNCs Shaped by numerous factors including cultural preferences of leaders and employees Some MNCs have subsidiaries that (aside from logo and reporting procedures) wouldnt be easily recognizable as belonging to same MNC6-9Organizational Culture in MNCsFour steps in integration of organizational cultures resulting from international expansion via mergers/acquisitions: 1.Two groups establish purpose, goals, and focus of merger 2.Develop mechanisms to identify most important structures and manager roles 3.Determine who has authority over resources 4.Identify expectations of all involved participates and facilitate communication between departments and individuals6-10Four Cultural Types6-11Four Cultural Types1.Family Culture: Strong emphasis on hierarchy and orientation to persons Power oriented, headed by leader regarded as caring parent Management takes care of employees, ensures theyre treated well, and have continued employment Catalyze and multiply energies of personnel or end up supporting leader who is ineffective and drains energy and loyalties6-12Four Cultural Types2. Eiffel Tower: Strong emphasis on hierarchy and orientation to task Jobs well defined; coordination from top Culture narrow at top; broad at base Relationships specific and status remains with job Few off-the-job relationships between manager and employee Formal hierarchy is impersonal and efficient6-13Four Cultural Types3. Guided Missile: Strong emphasis on equality in workplaceand in task Culture oriented to work Work undertaken by teams or projectgroups All team members equal Treat each other with respect Egalitarian and task-driven organizationalculture6-14Four Cultural Types4.Incubator Culture: Strong emphasis on equality and personal orientation Organization as incubator for self-expression and self-fulfillment Little formal structure Participants confirm, criticize, develop, findresources for, or help completedevelopment of innovative product orservice6-15National Patterns of Corporate Culture6-16Managing Multiculturalism and Diversity Both domestically and internationally, organizations lead workforces with a variety of cultures consisting of largely diverse populations: Women and Men Young and Old Black, White, Latin, Asian, Arab, Indian Many others.6-17Phases of Multicultural Development6-18Locations of Cross-Cultural Interaction6-19Types of Multiculturalism Domestic Multiculturalism Multicultural and diverse workforce operating in MNC home country Group Multiculturalism Homogenous groups Token groups Bicultural groups Multicultural groups6-20Managing Multicultural Teams Select team members for task-related abilities, not solely based on ethnicity Team members must recognize and prepare to deal with their differences Team leader must help identify/define overall goal Mutual respect among members is critical Managers must give team positive feedback on process and outputCross-Cultural Communication and Negotiationchapter sevenMcGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All Rights