culture and organisation in a multinational firm
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Culture and Organisation in a Multinational Firm
Structure of the presentation
• Meaning of culture
• Cultrural dimensions-national culture
*Trompenaars and Hofstede
-organizational culture
• Case study
What’s culture?
• A shared system of meanings
• About groups-not about individual behavior
• Learned-not inherited
• Transgenerational
• Patterned
• Not “wright” or “wrong”
The Meaning of Culture• A Model of Culture
The Meaning of Culture
How Americans see the French• arrogant•flamboyant•hierarchical•emotional
How French see Americans• naive
•aggressive•unprincipled
•workaholic
STEREOTYPES STEREOTYPES
French Culture U.S. Culture
• Culture as a Normal Distribution
Is their one best way of managing and organising?
• No! Why?
• Each culture has different meanings
• One fact can have different meanings in different cultures
• Example : the walkman
• Hofstede and Trompenaars
Cultural differences : Trompenaars
• Universalism-particularism
• Individualism-communitarianisme
• Neutral-emotional
• Specific-diffuse
• Achievement-ascription
• Sequential-synchronic
• Inner-directed and outer-directed
1. Universalism-Particularism
Universalism
• Consistency• Standards and rules• Clarity• Uniform procedures
Particularism
• Flexibility• It depends on the
circumstance• Make exeptions• At ease with
ambiguity
• A Car Accident
What right has your friend?
A. My friend has a definite right as a friend to expect me to testify to the lower figure.
B. He has some right as a friend to expect me to testify to the lower figure.
C. He has no right as a friend to expect me to testify to the lower figure.
1. Universalism-Particularism
Friend has some/no right and would not help
97%
93%
93%
92%
91%
91%
90%
87%
83%
73%
69%
68%
54%
47%
44%
37%
32%
0% 20% 40% 60% 80% 100% 120%
Switzerland
Canada
USA
Sweden
United Kingdom
Australia
Netherlands
Germany
Czech Rep
France
Singapore
J apan
India
China
Russia
Korea
Venezuela
2. Individualism-Communitarianism
Individualism
• I• Achieving alone• Ex.Vacations taken in
pairs, even alone
Communitarianism
• We (part of a group)• Decisions taken in
group• Ex.Vacations in group
Percentage opting for Individual Freedom
89%
71%
69%
67%
65%
64%
61%
60%
53%
52%
44%
41%
41%
39%
37%
32%
30%
0% 20% 40% 60% 80% 100% 120%
Israel
Canada
USA
Denmark
Netherlands
Finland
UK
Russia
Germany
Italy
Indonesia
China
France
J apan
India
Mexico
Egypt
3. Neutral-Affective
Neutral
• Do not reveal what they are, thinking or feeling
• Cool• Seem monotone• Physical contact =
taboo
Affective
• Reveal thoughts and feelings
• Emotional• Heated, vital and
animated• Seem dramatical
Percentage not expressing emotions overtly
81%74%
59%
55%51%
47%
46%45%
43%
40%
33%30%
28%
24%19%
18%
15%
0% 20% 40% 60% 80% 100% 120%
Ethiopa
J apan
Austria
China
India
Portugal
Sweden
UK
USA
Brasil
Italy
France
Argentina
Russia
Spain
Egypt
Kuwait
4. Specific-Diffuse
Specific• Principles and
behaviour independent of the person being addressed
• Work and life are separated
• Direct, to the point, purposeful in relating
Diffuse• Everything depends of
the context and the person
• Work and private life are often very close
• Indirect, seemingly aimless forms of relating
Specific culture
Work
Sport
Diffuse Culture
A Boss asking to paint the house
• The colleague arguesYou don’t have to paint the house if you don’t feel
like it. He is your boss in the company.Ouside the company, he has little authority.
• The subordinate argues:Despite the fact that I don’t feel like it, I will paint
the house anyway. He is my boss and you cannot ignore it outside your work either.
Would not paint the house
91%
91%
89%
88%
87%
82%
78%
70%
69%
67%
66%
65%
58%
52%
47%
46%
32%
0% 20% 40% 60% 80% 100% 120%
Sweden
Netherlands
Denmark
UK
Canada
USA
Australia
Mexico
Thailand
Greece
Belgium
Austria
Singapore
Venezuela
Kuwait
Nigeria
China
5. Achievement-Ascription
STATUS?
What you do Who you are
5. Achievement-Ascription
Achievement• Competence
determines status• Respect is based on
achieving your job• Senior managers are of
varying age
Ascription
• Extensive use of titles(who you are)
• Respect is gained through your status (background)
• Senior manager is mostly male, middle-aged and qualified by his background
Percentage not agreeing with acting as really suits you even if you don't get things done.
75%
65%
56%
54%
49%
40%
34%
33%
32%
31%
30%
28%
26%
25%
20%
13%
12%
4%
0% 20% 40% 60% 80% 100% 120%
USA
Canada
UK
Sweden
Denmark
Germany
Switzerland
France
Honk Kong
Mexico
Russia
China
J apan
Austria
Korea
Czech rep
Argentina
Egypt
6. Sequential-Synchronic
Sequential• One activity at the
time• Relationships are
subordinate to the schedule
• Preference to follow initial plans
• Time is measurable
Synchronic• More activities at the
time• Schedules are
subordinate to the relationship
• Follow where relationships lead
• Time is like a wide ribbon
7. Inner-directed VS outer-directed
Inner-directed
• I am in control• Dominating attitude• Discomfort when the
environment seems out of control
Outer-directed
• Environment is in control
• Flexible attitude, willing to compromise
• Comfort with waves,cycles if these are natural
What happens to me is my own doing
88%
86%
82%
77%
76%
75%
75%
72%
72%
66%
63%
63%
59%
57%
49%
39%
33%
0% 20% 40% 60% 80% 100% 120%
Israel
Norway
USA
UK
France
Austria
Belgium
Italy
Korea
Germany
J apan
India
Czech rep
Singapore
Russia
China
Venezuela
Cultural differences : Geert Hofstede
• Power distance
• Uncertainty avoidance
• Individualism
• mascunility
1. Power distance the extent to which power is accepted
High power distance
• Obey blindly• Steep structure• Centralized• A lot of supervisory
personnel
Low power distance
• Flat structure• Decentralized• Less supervisory
personnel
2 Uncertainty avoidance
High avoidance
• High need for security• Strong belief in experts• Important structures• More written rules• Lower labor turnover• Example: Germany Japan
Low avoidance
• Accepting risk
• Life must go on Less structural
• Fewer written rules
• Higher labor turnover
• Example:Great-Britain
Denmark
3. Individualism-Collectivism
Individualism
• I
• Greater individual initiative
Collectivism
• Belonging to a group
• Less individual initiative
4. Masculinity
Masculinity
• = dominant values are success,money and things
• Earnings, recognition and achievement is important
• Independent decision makers
Femininity• = dominant values are
caring for others and the quality of life
• Cooperation• Friendly atmosphere• Employment security• Group decision
makers
Organizational culture
• Definition of organizational culture
• Characteristics
• The interaction with national culture
• Four categories for organizational culture
1/ Definition
• Assumptions that are developed by a group through her existence
• New members should adopt this way of thinking in order to fit with the organisation
• The organizational culture of a MNC can differ a lot from one country to an other
2/Characteristics of Organizational Culture
OrganizationalCulture
Observedbehavioralregularities
Norms
Philosophyon treatment of employees/
customers
Rules ofemployeebehavior
Organizationalclimate
Dominantvalues
3/ Interaction between national and organizational culture
• National cultural values are significant
• The values people bring to work can’t be changed easily
EIFFEL TOWERRule-oriented
culture
Fulfillment-orientedculture
INCUBATOR
FAMILYPower-oriented
culture
Project-orientedculture
GUIDED MISSILE
Equity
Hierarchy
TaskEmphasis
PersonEmphasis
4/Four categories
EIFFEL TOWERRule-oriented
culture
Fulfillment-orientedculture
INCUBATOR
FAMILYPower-oriented
culture
Project-orientedculture
GUIDED MISSILE
Equity
Hierarchy
TaskEmphasis
PersonEmphasis
4/Family Culture
4/ Family culture
• Power-oriented culture• Diffuse relationships• Status is ascribed (parent figures)• Intuitive and error-correcting way of thinking• People are seen like family members• Father makes the changes• Management by subjectives• In conflict: do not lose your power
EIFFEL TOWERRule-oriented
culture
Fulfillment-orientedculture
INCUBATOR
FAMILYPower-oriented
culture
Project-orientedculture
GUIDED MISSILE
Equity
Hierarchy
TaskEmphasis
PersonEmphasis
4/Eiffel tower culture
4/ eiffel tower culture
• Role-oriented culture• Specific relationships• Status is ascribed to superior roles• Rationally thinking• People are seen like human ressources• Change through rules and procedures• Management by job description• Criticism is accusation of irrationalism• Everything is planned, structured
EIFFEL TOWERRule-oriented
culture
Fulfillment-orientedculture
INCUBATOR
FAMILYPower-oriented
culture
Project-orientedculture
GUIDED MISSILE
Equity
Hierarchy
TaskEmphasis
PersonEmphasis
4/Guided missile culture
4/ Guided missile culture
• Project-oriented culture
• Egalitarian and task-oriented
• Specific relationships
• Problem centered way of thinking
• People are seen as experts
• Management by objectives
EIFFEL TOWERRule-oriented
culture
Fulfillment-orientedculture
INCUBATOR
FAMILYPower-oriented
culture
Project-orientedculture
GUIDED MISSILE
Equity
Hierarchy
TaskEmphasis
PersonEmphasis
4/Incubator culture
4/ Incubator culture
• Self-fulfilment oriented culture
• No structure
• Diffuse relationships
• Thinking is process-oriented and creative
• People are seen as co-creators
• Change is improvised
• Management by enthusiasm
Person Task
Hierarchical
Egalitarian
•Den
•Fra
•UK•Irland
•Bel
•Ger
•Kor
•Norway
•Spain
•USA•Sweden
•Ita
Managing Cultural Differences
RecognitionIncrease awareness of
one’s own cultural perception
RespectAppreciate cultural
differences
ReconciliationResolve cultural differences
Time
Process
CASE Cultural Transformation at NUMMI
NUMMI
• Joint venture between Generals Motors and Toyota
• US and Japanese culture needed mixed up
• In order to get success, some differences needed to be reconciliated
Cultural Reconciliation
Universalist Particularist
•Obligation to report problems in order to improve system
•Differences of opinion are accepted and valued
•Flexibility of work rules
•Tolerant atmosphere
Cultural Reconciliation
Individualist Communitarist
•Employment security
•Participative decision making
•Plant collective discipline
•Managers closer to employees in order to give them support
•Creation of open offices, communal cafetaria
•Flat wage structure
Cultural Reconciliation
Specific Diffuse
•More than a workplace
•Focus on quality and process rather than quantity
•Building-trust first in order to achieve results
Cultural Reconciliation
Achievement Ascription
•Past achievement has no importance
•More respect for the status of the superior
Cultural Reconciliation
Sequential Synchronous
•Transfer of the « just-in time » japanese type of managment
•« Pull » instead of « Push »,
•Synchronisation instead of sequence
Cultural Reconciliation
Inner-directed Outer-directed
•Flexibility
•Looking for the problem instead of someone responsible
Cultural Reconciliation
Low uncertainty avoidance
High uncertainty avoidance
•No lay-off
•Job security
•More flows of information
Cultural Reconciliation
Low power distance
High power distance
•More respect for authority
NUMMI:Conclusion
• Alone, Americans are much stronger than Japanese
• In group the Japanese are much stronger than the Americans
• Mix of two cultures can be beneficial for everybody
• If you join two cultures and you can capture the positive points of both, you can get extraordinary results