LECTURE 10 CULTURE AND ORGANISATION

Organisational Culture A dynamic system of rules that are shared among members of an organisation, such as attitudes, values, beliefs, norms and behaviours. Organisational culture is a multifaceted construct that exists in many different levels.

Organisation Climate A shared perception of “the way things are around here” (Reichers & Schneider, 1990) – a shared perception of organisational policies, practices, and procedures. ‘Climate’ – manifestation of organisational culture

Organisational culture 3 levels of organisational culture Individual – culture is manifested in the cultures that individuals bring with them to the workplace, based on the cultural milieu in which they were raised and socialised. Intraorganisational – culture exists within an organisation- e.g. people within departments and units, and among department and units within a company. Interorganisational – a company that coexists with other company(ies), within a country or cross-countries.

Culture and Organisational Structure To understand the organisational culture requires an anlysis on organisational structures. Complexity – the degree to which organisations foster differentiation of tasks and activities within themselves. Formalisation – the degree to which organisations provide structure and rules for their operations. Centralisation – the degree to which organisations concentrate their operations and decision-making capabilities in alimited number of business units or people

National Character of Organisation (Organisational Culture) (Lammers & Hickson, 1979) Latin Type  charaterised by a classic bureaucracy, with centralised power and decision making and many hierarchical levels Anglo-Saxon Type –  Less centralisation, more diffusion of power and decision making, less hierarchy in the bureucracy Third-world type  Characterised by greater centralisation of decision making, less formalisation of rules, & more paternalistic or traditional family orientation.

Work-related Values Hofstede (1980, 1984, 1960s, 1970s) found 4 major dimensions of work value, i.e.  Power distance (PD)  Uncertainty avoidance (UA)  Individualism vs. Collectivism (IC)  Masculinity (MA)

Power Distance (PD) The degree to which different cultures encourage or maintain power and status differences between interactants. Cultures PD develop rules, mechanisms, and rituals that serve to maintain and strengthen the status relationships among their members. Cultures PD minimise thos rules and customs, ignoring if not eliminating the status differences between people

Power Distance Philippines, Mexico, Venezuela, &India – Highest scores on PD. New Zealand, Denmark, Israel, Austria – Lowest scores on PD. Managers of high PD make decision autocratically & paternalistically as opposed to managers of low PD who make decisions after extensive consultations of their subordinates.

Power Distance Related characters of societal norms found in high PD organisation are as follows : Greater centralisation of organisation and process, taller organisational pyramids, larger propotions of supervisory personnel, larger wage differentials, lower qualifications of lower strata of employees, Greater valuation of white-collar as opposed to blue- collar jobs.

Uncertainty Avoidance (UA) The degree to which different societies and different cultures develop way to deal with the anxiety and stress of uncertainty. Cultures high on UA develop highly refined rules and rituals that are mandated and become part of the company rubric and normal way of operation (rule- oriented companies). Greece, Portugal, Belgium, and Japan – highest score on UA.

Uncertainty Avoidance (UA) Cultures low in UA are less concerned with rules and rituals to deal with the stress and anxiety of uncertainty. Singapore, Sweden, Denmark – lowest score of UA. Concrete cultural differences are found on jobs and work related behaviours, such as : Greater job stress for high UA, less for low UA. Less risk-taking in low UA, Less achivement motivation Suspicious with foreign worker especially managers.

Individualism vs. Collectivism (IC) The degree to which a culture fosters individualistic tendencies as opposed to group or collectivistic tendencies. Individualistic cultures tend to foster development of autonomous, unique, and separate individuals. The needs, wishes, desires and goals of individuals take precedence over group goals in high IC cultures. Collectivistic cultures foster interdependence (saling bergantungan) of individuals within groups. Individuals sacrifice their own personal needs and goals for the sake of common good.

Masculinity (MA) To the degree to which cultures foster or maintain differences between sexes in work- related values. High MA – Japan, Austria, Venezuela, Italy  greatest sex differences in work-related values. Young men in high MA expected to make career in their jobs, organisational interests, needs, and goals are viewed as a legitimate reason to interfere in personal and private lives of employees.

Masculinity (MA) High MA cultures normally hire fewer qualified women worker and have better-paid jobs. Those women tend to be assertive. Job stress is higher in organisations that practice masculinity values. Denmark, Netherlands, Norway and Sweden- lowest in MA

Individualism-Collectivism (IC) United States, Australia, Great Britain and Canada – highest score on IC. Peru, Pakistan, Colombia and Venezuela – lowest score on IC IC differences across culture are associated with differences in worker attitudes, values, beliefs, & behaviors abt work and companies. E.g: In low IC countries – group decisions are better than individuals decision, managers choose duty, expertness, and prestige as life goals, moral involvement in company High IC – importance of employees’ personal life (time), managers rate having autonomy more important

Miscellaneous The emergence of Confucian dynamism Measuring organisational culture Culture and the meaning of work Culture, motivation and productivity Culture leadership and management style Culture and decision making Intercultural issues regarding business and work