Culture Slides

7/30/2019 Culture Slides

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Contd.

Product/market Characteristics: The need to protect patents or

standardize products will influence the degree of information

sharing.

Regulation: Impacts on market conditions, such as level of

competition which in turn influences customer orientation.

Technology: Government regulation determines degree towhich technology is developed and protected.

Sources of Competitive Advantage: Concerns for efficiency

over customer satisfaction, or cost effectiveness over quality,

may predominate in heavy industries over service industry.Need for resources or different sorts of capital- financial

human, intellectual- drive cultural differences in capital,

labour and knowledge-intensive industries.


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Contd.

Interaction Effects: National culture can interact with

industry culture to provide competitive advantage.PROFESSIONAL CULTURE: Management as a

profession.

Require judgment through intensive training,supervision and socialization.

Harvard, MIT, INSEAD

Organizations are becoming network of specialists

Generalists/Specialists, Scientists, Research Engineers

and Managers


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Reasons for Differences in Corporate Culture

Role of Founder: Influence through their values and

beliefs.

Leaders: Through their vision, innovativeness etc.

Administrative Heritage: Different structures, standard

operating procedures or routines that evolve over a

time shape culture by prescribing specific behaviour

and reinforcing certain values and beliefs.

Stages of development: Technology driven to marketdriven


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Contd..

Nature of products: Market driven, customer oriented,

premium pricing.Interaction effects: LVMH- French, Audi BMW,

Merc- German MacDonalds- American

Disney in Japan vs Disney In FranceFrench resented Social Control, Smiling faces,

friendly service, the obsession with cleanliness and

efficiency not liked by French employees.Export of logos, images or company heroes may be

interpreted in ways not intended


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Culture and Organization

The culture free argument is that national culture

influence the way people relate to each otherwhereas organizational structure is determined by

size and technology.

Taking a historical perspective of how best toorganize- Max Weber (German) bureaucracy, Henri

Fayols (French) administrative model, and Fredrick

Taylors (American) scientific management- all

reflect societal concerns of the time and cultural

backgrounds of the individuals.

Influence can be seen- Emphasis on structure &

competenceGerman; Emphasis on social systems


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CONTD.

Roles and relationships (Unity of Command)-French

& emphasis on task systems or machine model of

organization (reengineering)

Performance mngt., participative mngt., team

approach, and job enrichment have their roots in

particular historical and societal context- scientific

management in the US

Human relations, brought about by Hawthorne studies

(1930) in the US

Socio technical brought by the Tavistock studies of the

coal mines in the UK (1930)


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CONTD.

Human Resource brought about in Sweden (1970)

with Saab Scanias and Volvos redesign of autoassembly into autonomous teams.

These models have diffused across countries at

different rates and different ways. For this reason thehistorical & societal context needs to be considered

to understand adoption and diffusion of different

forms of organization across countries.Use Hofstedes findings

Stevens Studies describe the implicit model of the

organization held by each culture:


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Contd.

French- organization represent Pyramid of People-

formalized and centralized. The CEO- providecoordination & make key decisions-high level of

analytical & conceptual ability-need not be industry

or company specific.German- Well Oiled Machine- formalized but not

centralized-rules and regulations are more formal,

and task roles and responsibilities are more clearly

defined- no need for a boss-Managers cite

structures as key to success. Organized by functions.

Sometimes called Chimney organization. Top

mngt. Consist of a managing board Vorstand


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Contd.

British- Village Market- neither formalized nor centralized-

neither hierarchy nor the rules, but thedemands of the situation determine structure. British managers

more freedom and discretion not limited to their technical

competence. Flexibility and need for persuasion and

negotiation skills to achieve cooperation.

Asia- Family model- more hierarchic less formalized,

exception of Japan.

The primary cultural determinantsrelated to relationshipbetween people in terms of power and status & relationship

with nature.

The underlying cultural assumptions- beliefs-observable

artifacts.


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The Meaning of Organization

Andre Laurent argues that country differences in structurereflect different conceptions of what is an organization.

Organizations as Hierarchical Systems- difficult to build amatrix system

Not willing to bypass or go over or around the boss

Boss should have precise answer to most of the questionsAsian and Latin managers expect boss to demonstrate expert

knowledge, if efficiency lies in bypassing the hierarchicallines then something wrong with the hierarchy.

Scandinavian and Anglo managers find it perfectly normal togo directly to anyone to accomplish the task. They believethere cannot be precise answer as world is to complicatedfor that. precise answers do not develop the capacity of

subordinates to solve problems


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Contd.

Organization as Political Systems: Managers should playimpt. Political role in society and negotiate within the

organization.Obtaining power more important than task performance

Latin and European managers adhere more to this than Nordicand Anglo managers.

Organizations as Role Formalization: Managers preferdetailed job description and well defined roles and functions

Nordic and Anglo managers not comfortable with this as theyfeel world is too complex to clearly define roles and

functions. It also reduces flexibility and hindersachievement of coordination.

Therefore Laurent concluded that conception was eitherInstrumental or Social. Difference between LatinEuropean and Anglo-Saxons.


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Contd.

Constructing Cultural profiles enables one to

appreciate the impact of culture on management asmultidimensional. It would therefore be a mistake tobase a prediction regarding structure or process on asingle cultural dimension.

Culture and Process

Policies and Procedures: The formalization andstandardization of policies and procedures may

reflect low tolerance for uncertainty. The US rankslow in uncertainty avoidance European managersfind: too formal in reporting and volumes of writtenpolicies.


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Contd.

This may be because of the contractual view of

employment, instrumental view of organization andlow context communication. Organization is thought

to exist independently from its members- may seem

contrary to individualism but standardisation allowsindiv. To move easily in and out of

jobs/organization and guarantees their career

movement in village market. Commitment to

universalism- all people be treated equally.

British and German Firms- Germany high on

uncertainty avoidance, Britain low on the same


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Yet detailed job description in Britain. Germans are

specialists and tend to stay longer in the job so job

description well internalized.

British managers higher tolerance for mismatch

between written expectation and actual

responsibilities. Germans feel a threat to flexibility

and feel uncomfortable with any divergence.

Procedures and job descriptions less explicit where

communication is more embedded in relationships

and in situation (high context).

Japanese managers tend to have group accountability.


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Systems and Controls: Reflect differences in cultural

assumption regarding:Relationship with nature (uncertainty & control)

Relationship with People (in terms of power and human

nature)

Different types of control are also visible across cultures-

Input, Throughput and Output

Planning practices also reflect underlying cultural assumption

Eg Britain more strategic in focus, more long term, moreparticipation.

Germany: more operational, more short term, with little

participation


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France: planning more short term, more administrative

and less participative

Information and Communication: What kind of

information is sought or heeded, how information

circulates and what information is shared with

whom, reflect cultural preferences for hierarchy,

formalization and participation

Eg. Electrolux taking over Zanussi

Office design, building layout and information

technology can encourage managers to share

information or keep it to themselves.


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Can facilitate whether communication channels are

open and multiple or limited to one-to-one basis,serial and secretive.

Decision Making: Culturally rooted. 1. Who is making

the decision 2. Who is involved in the process 3.Where decisions are made 4. nature of decision

making 5. different time horizons

Japanese Ringi System: petitions are circulated

requiring individuals to sign on. Does not signify

approval, but means support. Opinions of superiors

more implicit than explicit. This reconciles

collectivism and hierarchy.


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Cultural preferences for hierarchy, and formalization,assumptions regarding time and change are

important considerations in how and how quicklydecisions will be made.

Participation may be for: preserving everyones rights

Preserve group harmony and relationshipsPromote social welfare

Results in different cultural reasons for empowerment:

right to negotiate, right to decide empowermentsignifies power sharing in order to arrive atconsensus regarding collective wellbeing.

It can also be distributive justice eg. US


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Transferability: Cultural differences undermine the

best intentions and the assumed rationality of bestpractices.

NIH not invented here syndrome

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