1. Additional Internet Sites
(U.S.-Japanese Business Forum)
(International Herald Tribune - Paris, global publishing)
Irwin/McGraw-Hill [Modified by EvS]

2. Organizational Culture
Mgt 485 Chapter 7
Organizational Culture
Mgt
Irwin/McGraw-Hill [Modified by EvS]

3. Definition and Characteristics
Organizational Culture: Observed behavioral regularities, as typified by common language, terminology, and rituals
Norms
amount of work to be done
degree of cooperation between management and employees
Dominant values that the organization advocates
high product and service quality
low absenteeism
Irwin/McGraw-Hill [Modified by EvS]

4. Organizational Culture Continued
A philosophy regarding how employees and customers should be treated
Rules that dictate the do’s and don’ts of employee behavior relating to:
productivity
customer relations
Organizational climate
How participants interact with
each other, conduct
themselves with customers…
Irwin/McGraw-Hill [Modified by EvS]

5. Organizational Cultures in MNCs
Aspects in determining MNC organizational culture:
The relationship between the employees and their organization
The hierarchical system of authority that defines the roles of managers and subordinates
The general views that employees hold about the MNC’s purpose, destiny, goals, and their places in them
4 types of organizational cultures:
Family
Eiffel Tower
Guided Missile
Incubator
Irwin/McGraw-Hill [Modified by EvS]

6. Organizational Cultures
Equity
Fulfillment-oriented Project-oriented
culture culture
INCUBATOR GUIDED MISSILE
Person Task
FAMILY EIFFEL TOWER
Power-oriented Role-oriented
culture culture
Hierarchy
Irwin/McGraw-Hill [Modified by EvS]

7. Family Culture Strong emphasis on the hierarchy
and orientation to the person
headed by a leader who is regarded as a caring parent
personnel look to leaders for both guidance and approval in exchange for looking after them
characterized by traditions, customs, and associations that bind together the personnel
and make it difficult for outsiders to become members
EX.) Turkey, Venezuela, China, and Singapore
Irwin/McGraw-Hill [Modified by EvS]

8. Eiffel Tower Culture
Strong emphasis on the hierarchy and orientation to the task -- impersonal and efficient
Jobs are well defined
everything is coordinated from the top.
Person holding top position could be replaced at any time without having an effect on the work being done
assessment centers, appraisal systems, training and development programs, and job rotation are common in managing human resources.
Ex.) North American and Northwest European countries
Irwin/McGraw-Hill [Modified by EvS]

9. Guided Missile Culture
Strong emphasis on equality in the work place and orientation to the task
Teams and project groups are common
Formal hierarchical considerations are given low priority and individual expertise is of greater importance
360-degree feedback systems are common
Change comes quickly
Ex.) United States and United Kingdom
Irwin/McGraw-Hill [Modified by EvS]

10. Incubator Culture Strong emphasis on equality and personal orientation
based on the concept that organizations are secondary to the fulfillment of the individuals within them
Little formal structure -- participants are there to perform roles
This culture is composed of creative work teams
Change is fast and spontaneous
Leadership is achieved, not gained by position
Ex.) entrepreneurial companies
Irwin/McGraw-Hill [Modified by EvS]

11. Managing Multiculturalism and Diversity
Phases of Multicultural Development
Phase I - Domestic corporations
Phase II - International corporations
Phase III - Multinational corporations
Phase IV - Global corporations
Irwin/McGraw-Hill [Modified by EvS]

12. Types of Multiculturalism
Domestic Multiculturalism
Group Multiculturalism
Homogeneous groups
Token groups
Bicultural groups
Multicultural groups
Potential Problems Associated with Diversity
Mistrust of others
Perceptions and preconceived stereotypes
Inaccurate biases
Miscommunication (misunderstandings & different uses of time)
Irwin/McGraw-Hill [Modified by EvS]

13. Advantages of Diversity
Generation of more and better ideas
Prevents “groupthink”
Culturally diverse groups can enhance creativity, lead to better decisions, and result in more effective and productive performance
Irwin/McGraw-Hill [Modified by EvS]

14. Using the Proper Guidelines
1. Team members must be selected for their task-related abilities and not solely based on ethnicity --
- Routine Task - want homogeneity
. Innovative task - want multiculturalism
2. Team members must recognize and be prepared to deal with their differences --
. recognize their own stereotypes
3. diverse teams tend to have more difficulty agreeing on their purpose and task than members of homogenous groups
. the team leader must help the group to identify and define its overall goal
Irwin/McGraw-Hill [Modified by EvS]

15. 5. all members have mutual respect for each other
4. Members must have equal power so that everyone can participate in the process
5. all members have mutual respect for each other
6. Managers must give positive feedback on processes and output
Irwin/McGraw-Hill [Modified by EvS]