cultural differences in organisat ions ppt

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    CULTURAL DIFFERENCES

    IN ORGANISATIONS

    Presented by BABASAB Patil

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    Organisational Culture Culture, being the genetic code of an organisation has

    significance from various perspectives.

    Contribution:

    Culture supplements rational management:

    Culture communicates to people through symbols,values, physical settings, language and thereby

    supplements the rational management tool such as

    technology and structure.

    Culture facilitates induction and socialization.

    Culture promotes code of conduct and customer focus.

    Culture contribute to organisational diversity.

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    Researches on cultural differences in

    organisations

    Douglas McGregor theory (1960),

    Adler research theory (1986),

    Ouchi, Z theory,

    Hall research (1976),

    Hofstede study (1980),

    Sondergaard research (1994),

    Schein study (1987),

    Connell research (2001),

    Indian council of social science research (1995).

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    Douglas McGregor theory (1960)

    Theory X and Y which is based on managers

    assumption about the employees.

    Theory X managers do not trust their subordinates and

    introduce tight control system, which leads toemployees irrespective behavior.

    Theory Y managers who trust employees, give more

    autonomy to their subordinates for overall goals and

    tasks without exercising close supervision.

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    Adler research (1986)

    Adler research highlighted about, the

    managers develop a more favorable attitudetowards employees with respect to employeeperformance.

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    Ouchi, Z theory..

    Z theory highlighted societal culture influences the

    organisational culture. (study of the cultural differences

    between American and Japanese culture)

    American culture has specialised career paths, fast

    growth, individualised decision making, individualisedresponsibility, explicit control, and concern for work

    relationship with employees.

    Japanese culture is characterised by slow promotions,

    generalised career paths, and job rotation across areas,

    group decision making, high degree of trust, collective

    responsibility, and concern for social aspects of

    employees.

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    Hall research (1976)

    Research highlighted the difference between high-context

    and low context cultures.

    In high-context cultures, People depend heavily on the

    external environment or situation, and use non-verbal

    clues for exchanging & interpreting communications.He mentioned examples of languages such as Arabic,

    Japaniese, and chinese in this regard where indirect style

    of communication is valued.

    In low-context cultures, external environment or situation

    has low importance, explicit, direct and blunt

    communication is valued and non-verbal clues are

    ignored.

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    Hofstede study (1980)

    His study of culture in sixty countries found major

    cultural differences in work related attitudes.

    (1.6 lac employees from an American multinational

    corporation served as sample)

    The study revealed.. the difference in attitudes and behavior of the workforce

    and managerial staff belonging to different countries and

    these differences had persisted over a period of time.

    As an organisation is a subsystem of society, it is very

    difficult to change the culture of people in the

    organisation because they bring in the culture of their

    society, they belong to.

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    Hofstede primary dimensions..

    He identified four dimensions on which employees andmanagers differed.

    1. Individualism/collectivism:Individualism is the focus of people on themselves

    and to some.

    Collectivism distinguishes between in-group(comprising relatives, caste and organisation) and

    other groups.

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    2. Power distance orientation

    It refers to the superior-subordinate relationship.

    The superior inclined to increase the inequality of

    power between him and his subordinates and the

    subordinates will try to decrease that power distance.

    Seniors maintain distance culture with their

    subordinates.

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    3. Uncertainty avoidance

    Hosfsted points out that different cultures differently

    and have varying levels of tolerance to uncertainty.

    Based on his study he has classified countries having

    high uncertainty avoidance.

    Here employees in low uncertainty avoidance will

    take more risks as compared to high uncertainty

    avoidance groups.

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    4. Masculinity/femininity

    The dominant values in society highlight the

    relationship among people, concern for others and

    overall quality of life.

    To conclude, culture is the minds of one group, which

    distinguishes it from other groups.

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    Sondergaard research (1994)

    Sondergaard has revived 61 researches replicating

    Hofstedes method and has reported that before

    mentioned dimensions have been largelyconfirmed.

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    Schein study (1987)

    His work points, Organisational cultures are created

    by leaders, and one of the most decisive functions of

    leadership may well be the creation, the management,

    and if and when that becomes necessary destruction of the culture.

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    Connell research (2001),

    He found that the organisation size affected a

    numbers of variables.

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    Indian Council Of Social Science

    Research (1995).

    ICSSR had made research on work culture in

    medium size organisations.

    The project undertaken by Sinha and his colleagues

    studied 28 medium size organisations based in thatstate has been classified as soft culture, technocratic

    culture, and work centric nurturance culture.

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