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Culture and Organisation in a Multinational Firm
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Structure of the presentation
Meaning of culture Cultrural dimensions -national culture *Trompenaars and Hofstede -organizational culture Case study
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What’s culture? A shared system of meanings
About groups-not about individual behavior Learned-not inherited Transgenerational Patterned Not “wright” or “wrong”
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The Meaning of Culture A Model of Culture
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The Meaning of Culture Culture as a Normal Distribution French Culture
How French see Americans naive aggressive unprincipled workaholic How Americans see the French arrogant flamboyant hierarchical emotional French Culture U.S. Culture STEREOTYPES STEREOTYPES
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Is their one best way of managing and organising?
No! Why? Each culture has different meanings One fact can have different meanings in different cultures Example : the walkman Hofstede and Trompenaars
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Cultural differences : Trompenaars
Universalism-particularism Individualism-communitarianisme Neutral-emotional Specific-diffuse Achievement-ascription Sequential-synchronic Inner-directed and outer-directed
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1. Universalism-Particularism
Consistency Standards and rules Clarity Uniform procedures Particularism Flexibility It depends on the circumstance Make exeptions At ease with ambiguity
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1. Universalism-Particularism
A Car Accident What right has your friend? My friend has a definite right as a friend to expect me to testify to the lower figure. He has some right as a friend to expect me to testify to the lower figure. He has no right as a friend to expect me to testify to the lower figure.
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2. Individualism-Communitarianism
We (part of a group) Decisions taken in group Ex.Vacations in group Individualism I Achieving alone Ex.Vacations taken in pairs, even alone
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3. Neutral-Affective Neutral
Do not reveal what they are, thinking or feeling Cool Seem monotone Physical contact = taboo Affective Reveal thoughts and feelings Emotional Heated, vital and animated Seem dramatical
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4. Specific-Diffuse Specific
Principles and behaviour independent of the person being addressed Work and life are separated Direct, to the point, purposeful in relating Diffuse Everything depends of the context and the person Work and private life are often very close Indirect, seemingly aimless forms of relating
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Specific Relationship
Specific culture Work Sport Specific Relationship
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Diffuse Culture Diffuse Relationship
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Danger Zone
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A Boss asking to paint the house
The colleague argues You don’t have to paint the house if you don’t feel like it. He is your boss in the company. Ouside the company, he has little authority. The subordinate argues: Despite the fact that I don’t feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either.
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5. Achievement-Ascription
What you do Who you are STATUS?
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5. Achievement-Ascription
Extensive use of titles(who you are) Respect is gained through your status (background) Senior manager is mostly male, middle-aged and qualified by his background Achievement Competence determines status Respect is based on achieving your job Senior managers are of varying age
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6. Sequential-Synchronic
One activity at the time Relationships are subordinate to the schedule Preference to follow initial plans Time is measurable Synchronic More activities at the time Schedules are subordinate to the relationship Follow where relationships lead Time is like a wide ribbon
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7. Inner-directed VS outer-directed
I am in control Dominating attitude Discomfort when the environment seems out of control Outer-directed Environment is in control Flexible attitude, willing to compromise Comfort with waves,cycles if these are natural
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Cultural differences : Geert Hofstede
Power distance Uncertainty avoidance Individualism mascunility
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1. Power distance the extent to which power is accepted
High power distance Obey blindly Steep structure Centralized A lot of supervisory personnel Low power distance Flat structure Decentralized Less supervisory personnel
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2 Uncertainty avoidance
High avoidance High need for security Strong belief in experts Important structures More written rules Lower labor turnover Example: Germany Japan Low avoidance Accepting risk Life must go on Less structural Fewer written rules Higher labor turnover Example:Great-Britain Denmark
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3. Individualism-Collectivism
Greater individual initiative Collectivism Belonging to a group Less individual initiative
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4. Masculinity Masculinity
= dominant values are success,money and things Earnings, recognition and achievement is important Independent decision makers Femininity = dominant values are caring for others and the quality of life Cooperation Friendly atmosphere Employment security Group decision makers
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Organizational culture
Definition of organizational culture Characteristics The interaction with national culture Four categories for organizational culture
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1/ Definition Assumptions that are developed by a group through her existence New members should adopt this way of thinking in order to fit with the organisation The organizational culture of a MNC can differ a lot from one country to an other
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2/Characteristics of Organizational Culture
Observed behavioral regularities Philosophy on treatment of employees/ customers Norms Rules of employee behavior Organizational Culture Dominant values Organizational climate
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3/ Interaction between national and organizational culture
National cultural values are significant The values people bring to work can’t be changed easily
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Fulfillment-oriented
4/Four categories Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy
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Fulfillment-oriented
4/Family Culture Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy
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4/ Family culture Power-oriented culture Diffuse relationships
Status is ascribed (parent figures) Intuitive and error-correcting way of thinking People are seen like family members Father makes the changes Management by subjectives In conflict: do not lose your power
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Fulfillment-oriented
4/Eiffel tower culture Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy
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4/ eiffel tower culture Role-oriented culture Specific relationships
Status is ascribed to superior roles Rationally thinking People are seen like human ressources Change through rules and procedures Management by job description Criticism is accusation of irrationalism Everything is planned, structured
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4/Guided missile culture
Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy
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4/ Guided missile culture
Project-oriented culture Egalitarian and task-oriented Specific relationships Problem centered way of thinking People are seen as experts Management by objectives
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Fulfillment-oriented
4/Incubator culture Equity Fulfillment-oriented culture INCUBATOR Project-oriented culture GUIDED MISSILE Person Emphasis Task Emphasis FAMILY Power-oriented culture EIFFEL TOWER Rule-oriented culture Hierarchy
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4/ Incubator culture Self-fulfilment oriented culture No structure
Diffuse relationships Thinking is process-oriented and creative People are seen as co-creators Change is improvised Management by enthusiasm
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Egalitarian Den Norway Sweden USA UK Person Task Irland Ita Bel Ger Spain Fra Kor Hierarchical
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Managing Cultural Differences
Process Reconciliation Resolve cultural differences Respect Appreciate cultural differences Recognition Increase awareness of one’s own cultural perception Time
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CASE Cultural Transformation at NUMMI
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NUMMI Joint venture between Generals Motors and Toyota
US and Japanese culture needed mixed up In order to get success, some differences needed to be reconciliated
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Cultural Reconciliation
Universalist Particularist Obligation to report problems in order to improve system Differences of opinion are accepted and valued Flexibility of work rules Tolerant atmosphere
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Cultural Reconciliation
Individualist Communitarist Employment security Participative decision making Plant collective discipline Managers closer to employees in order to give them support Creation of open offices, communal cafetaria Flat wage structure
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Cultural Reconciliation
Specific Diffuse More than a workplace Focus on quality and process rather than quantity Building-trust first in order to achieve results
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Cultural Reconciliation
Achievement Ascription Past achievement has no importance More respect for the status of the superior
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Cultural Reconciliation
Sequential Synchronous Transfer of the « just-in time » japanese type of managment « Pull » instead of « Push », Synchronisation instead of sequence
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Cultural Reconciliation
Inner-directed Outer-directed Flexibility Looking for the problem instead of someone responsible
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Cultural Reconciliation
Low uncertainty avoidance High uncertainty avoidance No lay-off Job security More flows of information
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Cultural Reconciliation
Low power distance High power distance More respect for authority
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NUMMI:Conclusion Alone, Americans are much stronger than Japanese
In group the Japanese are much stronger than the Americans Mix of two cultures can be beneficial for everybody If you join two cultures and you can capture the positive points of both, you can get extraordinary results
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