Atlantic to Pacific Century Ppt

7/31/2019 Atlantic to Pacific Century Ppt

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Overview of the article Impact of cultural diversity on international

organizational behavior

East-West cultural differences Differences among cognitive processes of people of

different cultures

Need for cultural diversity to be recognized,

understood and appropriately used in organizations Benefits of comparative studies for cross cultural

management


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Introduction Firms operating on a world wide basis has advantages

over the companies operating in domestic markets To remain competitive businesses are becoming global

Rise of MNCs because of internationalization

MNCs Challenges and opportunities


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MNC to Global Corporation Change in perspective

Cross Cultural Management - Organization theory

literature to be integrated with comparative

management literature


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Some major debates

Does organizational behavior vary across cultures?

How much of the observed differences can be attributed

to cultural determinants?

Is the variance increasing, decreasing or remaining thesame?

How organizations best manage within cultures?

How organizations use cultural diversity as a resource?


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Culture Shared values and norms by all or almost all members

Not the characteristic of an individual but that of a

group

Something that older members of the group pass on to

the younger members

Shapes ones perception of the world


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Cognitive Maps Mental representation of layout of ones environment

Varies across cultures and has varying effects on

managerial action

Recognizing unique set of cognitive maps is extremely

important


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Cultures Influence Culture is certainly not identical to societal structures

but it strongly influences their form and function

Westerners vs. Easterners


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Confronting a Problem

Sense of Self


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Weekend Activities

How to Express Anger


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Queue when Waiting

Status of Leader


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Relationships

Punctuality


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Convergence vs. Divergence Convergence- The tendency of companies to adopt

similar successful management practices suggests that

companies are becoming more alike

Divergence- Think globally but act locally

(Convergence and Divergence Issues in Strategic Management An

Asian Perspective on the Balanced Scorecard in HR management)


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Hofstedes study Study of 1,60,000 employees of 40 countries identified

four dimensions

Power distance

Uncertainty avoidance

Individualism or Collectivism

Masculinity/ Femininity


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Intercultural Interaction International managers should not only compare but

also interact

People behave differently with members of their own

culture than they do with members of foreign cultures

Differences in interaction:Non-business context- Salient

Business context- Exaggeration


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Synergy from cultural diversity Managers see only the disadvantages of cultural diversity in

organizations in spite of the several advantages present

Maruyamas four metatypes of casualty:

Non reciprocal causal model

Independent event model

Homeostatic causal-loop model

Morphogenetic causal-loop model


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Non reciprocal causal model

Homogeneity is natural, desirable and good

Heterogeneity- an abnormality or error

Cultural diversity is viewed as a source of conflict,

inconvenience and inefficiency

Culture of the top management dominates the whole

organization


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Independent event model Multi domestic firms regard each national unit as

independent and autonomous

No attempt to create mutually beneficial combinations

Recognize cultural diversity


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Homeostatic causal-loop model

Analogy is multi national firm

Diversity basic, indispensable and desirable Homogeneity- source of competition and conflict

Cultural interaction and heterogeneity- beneficial

External forces cause organizational change


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Morphogenetic causal-loop modelAnalogy is global firm

Internally generate a need for change Constantly create new, improved, mutually beneficial

systems of interaction

New patterns are generated through international

interactions


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From the Atlantic to the Pacific Transformation from the Atlantic century to the

Pacific century

Shift in the research area

Solid theoretical base for comparative studies on

culture


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Single-Culture Management

Studies Studies on managers from various Asian companies

Japanese- Respect for the interest of individuals,

cooperativeness

South Korean- Loyalty, obedience to authority, shared

management Chinese- Material security, hard work,

competitiveness


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Comparative Management Studies

Majority focus on comparisons between Japan and theWest

Basis ofdifference Japan WesternReasoning Analytical Comprehensive

Cognitive

process Whole to its parts Divided into parts


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Sociological Studies

Traditions, values, ideologies and norms are bound to

be different between societies

Each side is unable to step outside its own world view

Developmental Psychology studies

Individuals cognitive style dimension varies from low

field articulation to high field articulation


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Causes of misinterpreting data

across culture Culture can be viewed from two sides:

Refining it till it falls under a regular condition

(Or)

Believing it is pushed to be in that particular state.

According to the westerners, they focus more on

productivity, morale and leadershipmore than the eastern people by asking questions andtend to have answers with solid proof.


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Effects of Cultural heterogeneity

Management principles and methods must be adapted

within the office and the local culture

Significant differences with each culture

Local culture excellent if judged by the criteria of

foreigners but very low among compatriots

Those who appreciate local and foreign culture are a

valuable asset


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Implications for the practice of

managementAs the process of analyzing the colleagues,

competitors, go on a phase of difficulty to predict thefuture, we often blame the language or other factors as

a barricade.

This will lead in misunderstandings and lack ofmotivation if not solved soon will also lead to tinyconflicts that have no strong reason.

The only measure to overcome this is to accept theactual problem and fix it through a cognitivedimension which will then lead to a great co-operation

Atlantic to Pacific Century Ppt

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