Chapter 3

ORGANIZATIONAL CULTURES AND DIVERSITY

Organizational Cultures and Diversity

School of Economics and Management

Xidian University

Organizational Cultures and Diversity School of Economics and Management Xidian University

Definition Organizational Culture:

1. Basic form

Shared values and beliefs that enable members to understand their roles and the norms of the organization.

2. Edger Schein

A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptations and internal integration, and that has worked well enough to be considered valid and,therefore,to be taught to new members as the correct way to perceive,think,and feel in ralation to those problems.

Characteristics Observed behavioral regularities, as typified by

common language, terminology, and rituals Dominant values that the organization advocates

high product and service quality low absenteeism

Norms amount of work to be done degree of cooperation between management

and employees

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

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:

productivitycustomer relations

Organizational climate How participants interact with

each other, conduct

themselves with customers…

Organizational Cultures and Diversity School of Economics and Management Xidian University

Organizational Cultures in MNCs Aspects in determining MNC organizational

culture:The relationship between the employees and their organizationThe hierarchical system of authority that defines the roles of

managers and subordinatesThe general views that employees hold about the MNC’s purpose,

destiny, goals, and their places in them

4 types of organizational cultures:FamilyEiffel TowerGuided Missile Incubator

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

Organizational Cultures

Equity

Fulfillment-oriented Project-oriented

culture culture

INCUBATOR GUIDED MISSILE

Person Task

FAMILY EIFFEL TOWER

Power-oriented Role-oriented

culture culture

Hierarchy

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

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

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

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

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

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

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

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

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

Managing Multiculturalism and Diversity

Phases of Multicultural DevelopmentPhase I - Domestic corporationsPhase II - International corporationsPhase III - Multinational corporationsPhase IV - Global corporations

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

Types of Multiculturalism– Domestic Multiculturalism

– Group MulticulturalismHomogeneous groups Token groups Bicultural groupsMulticultural groups

Potential Problems Associated with Diversity Mistrust of others Perceptions and preconceived stereotypes Inaccurate biases Miscommunication (misunderstandings & different uses of

time)

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

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

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

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

Organizational Cultures and DiversitySchool of Economics and Management Xidian University

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

Organizational Cultures and Diversity

School of Economics and Management Xidian University