2. Culture and organization of the multinational firm CANDIR Ayse CSABAI Christina EGGER Astrid FOCHLER Sabrina HEDL Silvia

3. Structure of the presentation Culture and explanation Hofstede‘s study IRIC survey Steven‘s study Laurent‘s research Fons Trompenaars‘s survey Managing with Organization culture Managing Culture Differences in Multinationals

4. Culture is.... the set of common understandings expressed in language values, beliefs and expectations that members come to share a system for creating, sending, storing and processing information the collective of the mind which distinguishes the members of one group of people from another

5. The concept of culture Symbols Heroes Rituals Values

6. Hofstede‘s Study The five dimensions are: Power Distance Uncertainty Avoidance Individualism vs Collectivism Masculinity vs Femininity Long Term vs Short Term Orientation

7. Power Distance Imparity of power Manifestation in the centralization and autocratic leadership within an organization Allocation of power

8. Uncertainty Avoidance Deals with a society‘s tolerance for uncertainty Strong uncertainty avoidance countries Weak uncertainty avoidance countries

10. Individualism vs Collectivism Individualism: connection between individuals is not very tight Collectivism: to wich degree people belong to groups

12. Masculinity vs Femininity Feminine societiesMasculine societies Assertiveness ridiculedAssertiveness appreciated Undersell yourselfOversell yourself Stress on life qualityStress on careers IntuitionDecisiveness

14. Long Term vs Short Term Orientation Values associated with long term orientation are thrift and perseverance Values associated with short term orientation are respect for tradition and fulfilling social obligations

15. Relation between dimensions and organization Structuring of organizations: – Power Distance and Uncertainty Avoidance Functioning of the people: – Individualism and Masculinity

16. Leadership Is influenced by: – Individualism – Power Distance Participative Leadership  Power Distance

17. Motivation Is influenced by: – Power Distance – Uncertainty Avoidance Motivation theories: – Herzberg – Maslow

18. Performance Appraisal Individualist countries: – Direct feedback Collectivist countries: – Indirect feedback

19. Humanization of work In masculine and individualist countries: – Job enrichment In small power distance and strong uncertainty avoidance countries: – Flexible working hours

20. IRIC Study Process-oriented vs results-oriented cultures Job-oriented vs employee-oriented cultures Professional vs parochial cultures Open-systems vs closed-systems cultures Tightly vs loosely-controlled cultures Pragmatic vs normative cultures

21. Stevens‘ study

22. Laurent‘s survey Hierarchical system Political system Role formalization

23. Fons Trompenaar‘s research Universalism vs Particularism Individualism vs Collectivism Neutral vs Affective relationships Specific vs Diffuse relationships Achievement vs Ascription

24. Managing with Organization culture Changing the nature of organization cultures is a top management task Changing the practices by adapting the organization‘s structure Change of the controls

25. Managing Culture Differences in Multinationals Structure should follow culture 3 questions for each business unit – Which of the unit‘s in- and outputs should be coordinated from elsewhere in the corporation? – Where and at what level should the coordination take place? – How tight or loose should the coordination be?