1. Ch.3 Organizational Culture Ch.4 Global Environment
Very IMPORTANT topics today!!!
Part II
Defining the Manager’s Terrain
Ch.3 Organizational Culture
Ch.4 Global Environment
Ch.5 Managerial Ethics
© Emily & Jian, MGTO120 Summer 2006, HKUST

2. © Emily & Jian, MGTO120 Summer 2006, HKUST
Today’s Agenda
Short review – basic concepts (Ch.1) & development of Management (Ch. 2)
Ch.3 & 4 – Culture (organizational and national)
Ch.4 – Managing in a Global environment
Tutorial – video, discussions (work with your teammates starting today!)
© Emily & Jian, MGTO120 Summer 2006, HKUST

3. Management (Robbins & Coulter)
Where We Are Today
Management (Robbins & Coulter)
Part 1
Basic
Concepts
(Ch1)
Part 1
Retrospect
(ch2)
Part 2
Context
(ch3-5)
Part 3
Planning
(ch6-9)
Part 4
Organizing
(Ch10-13)
Part 5
Leading
(Ch 14-17)
Part 6
Controlling
(Ch 18,19)
© Emily & Jian, MGTO120 Summer 2006, HKUST

4. Ch.3 Organizational Culture and the Environment
Learning objectives:
Contrast the omnipotent and symbolic views of managers
Discuss what is organizational culture
Describe the seven dimensions of org. culture.
Explain the source of an organization’s culture and how that culture continues.
Describe how culture is transmitted to employees.
Discuss the current Organizational Issues Facing Managers
© Emily & Jian, MGTO120 Summer 2006, HKUST

5. Omnipotent vs. Symbolic view of managers
Omnipotent View of Management
Managers are directly responsible for an organization’s success or failure.
The quality of the organization is determined by the quality of its managers.
Managers are held most accountable for an organization’s performance yet it is difficult to attribute good or poor performance directly to their influence on the organization.
Symbolic View of Management
Much of an organization’s success or failure is due to external forces outside of managers’ control.
The ability of managers to affect outcomes is influenced and constrained by external factors.
The economy, customers, governmental policies, competitors, industry conditions, technology, and the actions of previous managers
Managers symbolize control and influence through their action.
© Emily & Jian, MGTO120 Summer 2006, HKUST

6. Parameters of Managerial Discretion
To what extent, managers are the reasons?
Parameters of Managerial Discretion
© Emily & Jian, MGTO120 Summer 2006, HKUST

7. Do you “feel” the differences? Which is better??
Company A
We can work at home.
We have our own offices. It is cozy like home.
We work together to solve problems.
We are all colleagues and friends here.
We feel free to voice when we see bad things.
Those who have new ideas are respected and awarded.
Company B
Work hours are strict.
We are clearly told what to do next.
It is clear I get the pay if I do as I’s told to do.
We don’t need much “privacy” in work.
It is clear who is supervisor and who is subordinate.
We’d better follow the current procedures in our work.
© Emily & Jian, MGTO120 Summer 2006, HKUST

8. What is an Organizational Culture?
A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other.
“The way we do things around here.”
Values, symbols, rituals, myths, and practices
Implications:
Culture is a perception.
Culture is shared.
Culture is descriptive.
© Emily & Jian, MGTO120 Summer 2006, HKUST

9. Culture: “that’s the way things are done around here.”
Put 5 monkeys in a cage and place a banana in the cage. One of the monkeys takes the banana
Next, do the same, but when the monkey takes the banana, throw freezing water on all the monkeys
Now remove one of the monkeys and replace with a new monkey. Place a banana in the cage. The new monkey will attempt to get the banana, but the other monkeys will attack it to stop it.
The new monkey doesn’t understand why, but it doesn’t go for the banana.
NO!
© Emily & Jian, MGTO120 Summer 2006, HKUST

10. © Emily & Jian, MGTO120 Summer 2006, HKUST
Again, replace an existing monkey with a new monkey. Repeat the process. The other monkeys, including the monkey that doesn’t know why, will attack the new monkey when it goes to take the banana.
Continue the process until none of the original monkeys is left. Even though they don’t know why, they will attack any monkey going for the banana.
Why ???
© Emily & Jian, MGTO120 Summer 2006, HKUST

11. this is what we call Organizational Culture !!!
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12. Dimensions of Organizational CultureP A S I
Exhibit 3.2
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13. Strong versus Weak Cultures
Strong Cultures
Are cultures in which key values are deeply held and widely shared.
Have a strong influence on how organizational members do things.
Why some org. cultures are strong?
size, age, founder....
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14. Sources of Organizational Culture
The organization’s founder
Vision and mission
Past practices of the organization
The way things have been done
The behavior of top management
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15. Continuation of the Organizational Culture
Recruitment of like-minded employees who “fit”
Socialization of new employees to help them adapt to the culture
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16. How Employees Learn Culture
Stories
Narratives of significant events or actions of people that convey the spirit of the organization
Rituals
Repetitive sequences of activities that express and reinforce the values of the organization
Material Symbols
Physical assets distinguishing the organization
Language
Acronyms and jargon of terms, phrases, and word meanings specific to an organization
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17. Remember these pictures?
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18. Ch.3 organizational culture and the
What do you think when you look at this “symbol”??
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19. Do you want a logo for your group? To reflect your distinct culture??
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20. How Culture Affects Leaders
establishes appropriate leader behavior
constrains decision making in all management functions, P O L C
P____ - degree of risk that plans should contain
O____ - degree of autonomy given employees
L____ - degree of concern for job satisfaction
C____ - reliance on external or internal controls
© Emily & Jian, MGTO120 Summer 2006, HKUST

21. © Emily & Jian, MGTO120 Summer 2006, HKUST
A visit to DisneyLand
© Emily & Jian, MGTO120 Summer 2006, HKUST

22. As you watch the video, think about…
What is the culture of Disney?
Who created this culture?
What are some symbols, languages, and rituals that you see in this video?
How is the culture of this organization maintained and transmitted?
© Emily & Jian, MGTO120 Summer 2006, HKUST

23. What are Disney’s Core Values?
Show business
Continuous improvement and innovation
Keep the magic and the mystique
Make people happy
© Emily & Jian, MGTO120 Summer 2006, HKUST

24. Language Used at Disney
“customers”
“employees”
“at work”
“uniform”
“on duty”
“off duty”
Guests/audience
cast
Play role
Costume
On stage
Off stage
© Emily & Jian, MGTO120 Summer 2006, HKUST

25. How Does Disney Transmit and Maintain its Culture?
Using symbols (Mickey), stories, and languages
New employee socialization
Training, training, and more training!!
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26. © Emily & Jian, MGTO120 Summer 2006, HKUST
National Culture
Is the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important.
May have more influence on an organization than the organization culture.
© Emily & Jian, MGTO120 Summer 2006, HKUST

27. What are Americans, Japanese, and Chinese like?
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28. Hofstede’s Framework for Assessing Cultures
Individualism versus Collectivism
Power Distance
Uncertainty Avoidance
Quantity versus Quality of Life
Long-term versus Short-term Orientation
© Emily & Jian, MGTO120 Summer 2006, HKUST

29. 1. Individualism versus Collectivism
Individualism - values individual achievement, freedom, and competition. The degree to which people prefer to act as individuals rather than a member of groups.
Collectivism - values group harmony, cohesiveness, and consensus. A tight social framework in which people expect others in groups of which they are a part to look after them and protect them.
Examples?
© Emily & Jian, MGTO120 Summer 2006, HKUST

30. © Emily & Jian, MGTO120 Summer 2006, HKUST
2. Power Distance
the degree to which a country accepts the fact that differences in its citizens’ physical and intellectual capabilities give rise to inequalities in their well-being. The extent to which a society accepts that power in institutions and organizations is distributed unequally.
low power distance: relatively equal distribution
high power distance: extremely unequal distribution
Examples?
© Emily & Jian, MGTO120 Summer 2006, HKUST

31. © Emily & Jian, MGTO120 Summer 2006, HKUST
3. Quantity (Achievement orientation) versus Quality (Nurturing) Orientation
Quantity or Achievement Orientation valuing assertiveness, performance, success, and competition. The extent to which societal values are characterized by assertiveness, materialism and competition
Quality or Nurturing Orientation valuing quality of life, warm personal relationships, and service and care for the weak. (M/F) The extent to which societal values emphasize relationships and concern for others.
Examples?
© Emily & Jian, MGTO120 Summer 2006, HKUST

32. 4.Uncertainty Avoidance
degree of tolerance for uncertainty and willingness to take risks. The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them.
Examples?
© Emily & Jian, MGTO120 Summer 2006, HKUST

33. 5. Long versus Short term orientation
Long-Term Orientation – a culture that emphasizes the future, thrift, and persistence.
Short-Term Orientation - valuing personal stability and living for the present.
Examples?
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34. Examples of Hofstede’s Cultural Dimensions (agree? How about HK?)
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35. © Emily & Jian, MGTO120 Summer 2006, HKUST
Assertiveness
Future Orientation
Gender differentiation
Uncertainty avoidance
Power distance
Individual/collectivism
In-group collectivism
Performance orientation
Humane orientation
The GLOBE (Global Leadership and Organizational Behavior Effectiveness) Framework for Assessing Cultures
© Emily & Jian, MGTO120 Summer 2006, HKUST

36. video show See the differences? List as many as possible.
© Emily & Jian, MGTO120 Summer 2006, HKUST

37. Where do they come from? How did they come to HK?
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38. Doing Business Globally
Adopting a Global Perspective
Ethnocentric Attitude
The parochialistic belief that the best work approaches and practices are those of the home country.
Polycentric Attitude
The view that the managers in the host country know the best work approaches and practices for running their business.
Geocentric Attitude
A world-oriented view that focuses on using the best approaches and people from around the globe.
© Emily & Jian, MGTO120 Summer 2006, HKUST

39. Different Types of Global Organizations
Multinational Corporation (MNC)
A firm which maintains operations in multiple countries but manages the operations from a base in the home country.
Transnational Corporation (TNC)
A firm that maintains operations in several countries but decentralizes management to the local country.
Borderless Organization
A firm that has eliminated structural divisions that impose artificial geographic barriers and is organized along business lines.
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40. How Do Organizations Go Global
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41. © Emily & Jian, MGTO120 Summer 2006, HKUST
Homework (remember, this course is to HELP you to think critically, but it is YOU who THINK):
Tutorial
Think about the national culture differences. Using Hofstede’s and the GLOBE frameworks to analyze the countries you are familiar with. Think about SPECIFIC examples.
Describe the cultures of companies you know, using TOPASIA.
Search company histories in the website, to see how they went global.
© Emily & Jian, MGTO120 Summer 2006, HKUST