Download - Atlantic to Pacific Century Ppt
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Overview of the article Impact of cultural diversity on international
organizational behavior
East-West cultural differences Differences among cognitive processes of people of
different cultures
Need for cultural diversity to be recognized,
understood and appropriately used in organizations Benefits of comparative studies for cross cultural
management
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Introduction Firms operating on a world wide basis has advantages
over the companies operating in domestic markets To remain competitive businesses are becoming global
Rise of MNCs because of internationalization
MNCs Challenges and opportunities
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MNC to Global Corporation Change in perspective
Cross Cultural Management - Organization theory
literature to be integrated with comparative
management literature
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Some major debates
Does organizational behavior vary across cultures?
How much of the observed differences can be attributed
to cultural determinants?
Is the variance increasing, decreasing or remaining thesame?
How organizations best manage within cultures?
How organizations use cultural diversity as a resource?
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Culture Shared values and norms by all or almost all members
Not the characteristic of an individual but that of a
group
Something that older members of the group pass on to
the younger members
Shapes ones perception of the world
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Cognitive Maps Mental representation of layout of ones environment
Varies across cultures and has varying effects on
managerial action
Recognizing unique set of cognitive maps is extremely
important
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Cultures Influence Culture is certainly not identical to societal structures
but it strongly influences their form and function
Westerners vs. Easterners
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Confronting a Problem
Sense of Self
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Weekend Activities
How to Express Anger
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Queue when Waiting
Status of Leader
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Relationships
Punctuality
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Convergence vs. Divergence Convergence- The tendency of companies to adopt
similar successful management practices suggests that
companies are becoming more alike
Divergence- Think globally but act locally
(Convergence and Divergence Issues in Strategic Management An
Asian Perspective on the Balanced Scorecard in HR management)
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Hofstedes study Study of 1,60,000 employees of 40 countries identified
four dimensions
Power distance
Uncertainty avoidance
Individualism or Collectivism
Masculinity/ Femininity
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Intercultural Interaction International managers should not only compare but
also interact
People behave differently with members of their own
culture than they do with members of foreign cultures
Differences in interaction:Non-business context- Salient
Business context- Exaggeration
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Synergy from cultural diversity Managers see only the disadvantages of cultural diversity in
organizations in spite of the several advantages present
Maruyamas four metatypes of casualty:
Non reciprocal causal model
Independent event model
Homeostatic causal-loop model
Morphogenetic causal-loop model
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Non reciprocal causal model
Homogeneity is natural, desirable and good
Heterogeneity- an abnormality or error
Cultural diversity is viewed as a source of conflict,
inconvenience and inefficiency
Culture of the top management dominates the whole
organization
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Independent event model Multi domestic firms regard each national unit as
independent and autonomous
No attempt to create mutually beneficial combinations
Recognize cultural diversity
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Homeostatic causal-loop model
Analogy is multi national firm
Diversity basic, indispensable and desirable Homogeneity- source of competition and conflict
Cultural interaction and heterogeneity- beneficial
External forces cause organizational change
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Morphogenetic causal-loop modelAnalogy is global firm
Internally generate a need for change Constantly create new, improved, mutually beneficial
systems of interaction
New patterns are generated through international
interactions
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From the Atlantic to the Pacific Transformation from the Atlantic century to the
Pacific century
Shift in the research area
Solid theoretical base for comparative studies on
culture
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Single-Culture Management
Studies Studies on managers from various Asian companies
Japanese- Respect for the interest of individuals,
cooperativeness
South Korean- Loyalty, obedience to authority, shared
management Chinese- Material security, hard work,
competitiveness
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Comparative Management Studies
Majority focus on comparisons between Japan and theWest
Basis ofdifference Japan WesternReasoning Analytical Comprehensive
Cognitive
process Whole to its parts Divided into parts
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Sociological Studies
Traditions, values, ideologies and norms are bound to
be different between societies
Each side is unable to step outside its own world view
Developmental Psychology studies
Individuals cognitive style dimension varies from low
field articulation to high field articulation
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Causes of misinterpreting data
across culture Culture can be viewed from two sides:
Refining it till it falls under a regular condition
(Or)
Believing it is pushed to be in that particular state.
According to the westerners, they focus more on
productivity, morale and leadershipmore than the eastern people by asking questions andtend to have answers with solid proof.
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Effects of Cultural heterogeneity
Management principles and methods must be adapted
within the office and the local culture
Significant differences with each culture
Local culture excellent if judged by the criteria of
foreigners but very low among compatriots
Those who appreciate local and foreign culture are a
valuable asset
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Implications for the practice of
managementAs the process of analyzing the colleagues,
competitors, go on a phase of difficulty to predict thefuture, we often blame the language or other factors as
a barricade.
This will lead in misunderstandings and lack ofmotivation if not solved soon will also lead to tinyconflicts that have no strong reason.
The only measure to overcome this is to accept theactual problem and fix it through a cognitivedimension which will then lead to a great co-operation