1. Organizational Cultures and Diversity
chapter six
Organizational Cultures and Diversity
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. Chapter Outline Organizational culture and national culture
Four types of organizational culture
Managing multiculturalism and diversity

3. The Nature of Organizational Culture
Organizational culture: shared values and beliefs enabling members to understand their roles and the norms of the organization, including:
Observed behavioral regularities, typified by common language, terminology, rituals
Norms, reflected by things such as amount of work to do and degree of cooperation between management and employees
Dominant values organization advocates and expected participants to share (e.g., low absenteeism, high efficiency)

4. Organizational Culture (2)
Other values and beliefs:
Philosophy set forth regarding how to treat employees and customers
Rules dictating do’s and don’ts of employee behavior pertaining to productivity, intergroup cooperation, etc.
Organizational climate as reflected by way participants interact with each other, treat customers, and feel about how treated by senior level management

5. Interaction between National and Organizational Culture
The national cultural values of employees may significantly impact their work performance
Cultural values that employees bring to the workplace are not easily changed by the organization

6. Dimensions of Organizational Culture

7. Four Types of Organizational Culture

8. Four Types of Organizational Culture (2)
Family Culture: Strong emphasis on hierarchy and orientation to persons
Power oriented, headed by a leader who is regarded as a caring parent
Management takes care of employees, and ensures that they are treated well and have continued employment
This system can energize and multiply energies of personnel.
If the leader is ineffective, he will damage competitiveness and drain employee energy and loyalty

9. Four Types of Organizational Culture (3)
2. Eiffel Tower:
Strong emphasis on hierarchy and orientation to task
Jobs well defined; coordination from top
Culture narrow at top; broad at base
Relationships specific and status remains with job
Few off-the-job relationships between manager and employee
Formal hierarchy is impersonal and efficient

10. Four Types of Organizational Culture (4)
3. Guided Missile:
Strong emphasis on equality in workplace
and in task
Culture oriented to work
Work undertaken by teams or project
groups
All team members equal
Treat each other with respect
Egalitarian and task-driven organizational
culture

11. Four Types of Organizational Culture (5)
Incubator Culture:
Strong emphasis on equality and personal
orientation
Organization as incubator for self-
expression and self-fulfillment
Little formal structure
Participants confirm, criticize, develop, find
resources for, or help complete
development of innovative product or
service

12. National Patterns of Corporate Culture
Incubator
Guided Missile
Family
Eiffel Tower

13. Corporate Culture in the U.S.
Large companies usually have guided missile cultures
High-tech companies, particularly small ones, often have an incubator culture
Some small companies have a family culture

14. Managing Multiculturalism and Diversity
Both domestically and internationally, organizations lead workforces with a variety of cultures consisting of largely diverse populations:
Women and Men
People of different ages
Black, White, Latin, Asian, Arab, Indian
People with different education levels or professional backgrounds

15. Types of Multiculturalism
Domestic Multiculturalism
Multicultural and diverse workforce operating in MNC home country
Group Multiculturalism
Homogenous groups
Token groups
Bicultural groups
Multicultural groups
The more diverse a group is, the greater the number of different opinions that members have

16. Potential Problems Associated with Diversity
Perceptual problems
When cultural diverse groups come together, often bring preconceived, erroneous stereotypes with them
Inaccurate biases
Inaccurate communication
Attitudinal problems
May cause lack of cohesion resulting in unit’s inability to take concerted action or be productive

17. Advantages of Diversity
Enhances creativity
Can lead to better decisions
Prevents groupthink
Can create highly effective teams under the right conditions
Multicultural teams work best when they are working on tasks that require innovation.

18. Managing Multicultural Teams
Select team members for task-related abilities, not solely based on ethnicity or nationality
Team members must recognize and prepare to deal with their differences
Team leader must help the group identify its overall goal
Mutual respect among members is critical
Managers should give the team positive feedback on process and output