ORGANIZATIONS ALIKE: CONVERGENCE AND THE CULTURE FREE HYPOTHESIS

THE CULTURE FREE HYPOTHESIS F Regardless of national culture, organizational design depends to on the organizational context (size, technology)

EX 1 ORGANIZATIONS ALIKE

ORGANIZATIONS AS DIFFERENT: THE EFFECTS OF NATIONAL CULTURE AND SOCIAL INSTITUTIONS

CONTROL MECHANISMS F Link the organization vertically F Five broad types of control: – personal – bureaucratic – decision making – cultural

JAPANESE CONSENSUS BUREAUCRACY DESIGN F Vertical differentiation: little job specialization for individuals F Control mechanisms: favor cultural control over bureaucratic control F Decision making: consensual - see Ex 9.5

THE JAPANESE KEIRETSU F Web of trading partners F Financial networks revolve around major banks- e.g. Mitsubishi. F Production networks revolve around user and supplier relationships

INSTITUTIONAL FORCES SUPPORTING KEIRETSU: F Historic- zaibatsu F Close links between government and Japanese industry create coercive pressures

THE KOREAN CHAEBOL F Family-dominated and multi- industry conglomerates F Dominate much of Korean business F Close relationships with banks for financing

DISTINCT ORGANIZATIONAL FEATURES OF CHAEBOL F Extensive family control F Paternalistic leadership F Centralized planning - reports directly to the chairman F Close connections with the government