Diversity and Types of Organizations Organizational culture affects the acceptance and impact of diversity in organizations Parochial: Our is the only way Ethnocentric: Our way is best Pluralistic(synergetic): The best is combining our ways and their ways In large companies different divisions may have different sub-cultures The more complex, unpredictable and global is the n nal business environment of a company, the more competitive advantages cultural diversity has ai Cross-Cultural Management
6 Cross-Cultural Management Diversity and Types of Organizations • Organizational culture affects the acceptance and impact of diversity in organizations • Parochial: Our is the only way • Ethnocentric: Our way is best • Pluralistic (synergetic): The best is combining our ways and their ways In large companies, different divisions may have different sub-cultures The more complex, unpredictable and global is the business environment of a company, the more competitive advantages cultural diversity has
Nature of Organizational culture Organizational culture Pattern of basic assumptions that are developed by a group as it learns to cope with problems of external adaptation and internal integration and that are taught to new members as the correct way to perceive, think, and feel in relation to these problems An MNC's organizational culture in one country's facility may differ sharply from those in other countries Cross-Cultural Management
7 Cross-Cultural Management Nature of Organizational Culture • Organizational culture – Pattern of basic assumptions that are developed by a group as it learns to cope with problems of external adaptation and internal integration and that are taught to new members as the correct way to perceive, think, and feel in relation to these problems – An MNC’s organizational culture in one country’s facility may differ sharply from those in other countries
Nature of organizational culture Interaction between National and organizational Cultures National cultural values of employees have a significant impact on organizational performance Cultural values that employees bring to the workplace are not easily changed by the organization Substantial differences may be observed Ei among subsidiaries that cause coordinator sal problems Cross-Cultural Management
8 Cross-Cultural Management Nature of Organizational Culture • Interaction Between National and Organizational Cultures – National cultural values of employees have a significant impact on organizational performance – Cultural values that employees bring to the workplace are not easily changed by the organization – Substantial differences may be observed among subsidiaries that cause coordination problems
Organizational Cultures in MNCs Integration of organizational cultures is crucial following mergers and acquisitions Integration process consists of: Establishing a common purpose, goal, and focus Identifying important organizational structures and roles Determining who has authority over resources Identifying the expectations of all involved parties and facilitating communication between the es parties Cross-Cultural Management
9 Cross-Cultural Management Organizational Cultures in MNCs • Integration of organizational cultures is crucial following mergers and acquisitions – Integration process consists of: • Establishing a common purpose, goal, and focus • Identifying important organizational structures and roles • Determining who has authority over resources • Identifying the expectations of all involved parties and facilitating communication between the parties
Organizational Cultures in MNCs <Y2 (cont Family culture Strong emphasis on hierarchy and person orientation Power-oriented with paternalistic leader Leader looked to for quidance Can catalyze and multiply employees' energy Reliance on intuition rather than rational knowledge 10 Cross-Cultural Management
10 Cross-Cultural Management Organizational Cultures in MNCs (cont.) • Family culture – Strong emphasis on hierarchy and person orientation • Power-oriented with paternalistic leader • Leader looked to for guidance • Can catalyze and multiply employees’ energy • Reliance on intuition rather than rational knowledge