powerpoint slides by r. dennis middlemist colorado state university powerpoint slides by r. dennis...

PowerPoint slides by

R. Dennis Middlemist

Colorado State University

PowerPoint slides by

R. Dennis Middlemist

Colorado State University

Chapter 4Chapter 4

Managing Within Cultural Contexts

Edited and section on diversity added (PFH)

55 ©2005 Prentice Hall

Definition of CultureDefinition of Culture

Culture Learned set of assumptions, values, and

behaviors Accepted as successful Passed on to new comers

Culture begins when a group of people faces a set of challenges

Culture evolves and changes with time


Culture is learned Culture is learned

Through symbols and communication, such as stories, speeches, discussions, manuals, novels, poems, art, etc.

Where does it come from originally? In organizations, the founders and early

leaders use their own personal values. Successful or powerful newcomers may

bring behaviors and values with them.


Impact of Culture on Impact of Culture on BehaviorBehavior

How people observe and interpret the business world around them

Can lead to different beliefs about “right” behaviors

Subordinates who identify with the culture of a unit or company are likely to try harder to make it successful


Consider the factsConsider the facts

More than half the workforce is comprised of women, minorities, and immigrants.

There are three times as many foreign-born workers in the US today then 30 years ago.

By 2015, only 15% of those entering the workforce will be white males.

The majority of current American immigrants are from Asian and Latin American countries.


Culture as a Culture as a Management ToolManagement Tool

A strong culture helps to guide individual workers’ behavior even in the absence of direct managerial supervision.

A strong culture helps organizations achieve high performance. A recent MIT study found more reliable financial

performance in companies with strong cultures. A ten-year study of 160 companies found culture to

be one of the four primary management practices found in companies that outperform others in their industries.

Managers must be careful what they instill as the cultural values of the unit (organization)


Artifacts: visible manifestations of a culture such as its art, clothing, food, architecture, and customs

Values: enduring beliefs that specific conduct or end states which are personally or socially preferred to others

Assumptions: the beliefs about fundamental aspects of life lying below the surface, but supporting the culture

Levels of CultureLevels of Culture

Adapted from Exhibit 4.2: Managing Within Cultural Contexts


Levels of Culture – Levels of Culture – AssumptionsAssumptions

Cultural assumptions Certain cultural values and

behaviors are only possible with certain underlying cultural assumptions

An understanding of assumptions is necessary to understand, change, or even create a new culture

Assumptions(Hidden)


Basic Assumptions and Their Basic Assumptions and Their Managerial AssumptionsManagerial AssumptionsSpecific

AssumptionsSpecific

Assumptions

Managerial Implications


People are meant to dominate the

environment

People must coexist harmon-iously with the environment

Humansand the

Environment

Firms should seek positions that allow them to coexist with

others

Strategic plans should be

developed to enable the firm to dominate

its industry

Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications



AssumptionsSpecific

Assumptions



People are generally lazy

(Theory X)

Work is as natural as play for people

(Theory Y)

HumanNature

Provide people with opportunities and

responsibilities and encourage their

development

Implement systems for monitoring be-

havior and establish clear punishment for undesired behavior




AssumptionsSpecific

Assumptions



Individuals have certain rights and

freedoms

People exist because of others

and owe an obligation to them

HumanRelationships

Cooperation with and contributions to the’ group should be

evaluated and rewarded

Individual performance should be measured and

rewarded




AssumptionsSpecific

Assumptions



People create their own destinies and must plan for the

future

People should react to and enjoy

whatever the present provides

HumanActivity

Planning the future only gets in the way

of enjoying the present

People who fail to plan should plan to

fail




AssumptionsSpecific

Assumptions



Truth objectively exists

Truth is what is socially accepted

Truth and Reality

Opinion leaders are how you influence

people and decisions

Facts and statistics are how you convince and

influence people




AssumptionsSpecific

Assumptions



Time is like a river, what you don’t use

wisely today is gone forever

Time is like a lake, what you don’t use today will be there

tomorrow

Time

Taking advantage of the moment is

valued. Arriving late for appointments is not a character flaw

Time management is a critical skill.

Appointments are made well in advance and

punctuality is valued



Levels of Culture – Levels of Culture – ValuesValues

Cultural Values Enduring beliefs that specific conduct

or end states of existence are personally and socially preferred to others

Managerial values are enduring beliefs about specific ways of managing and conducting business that are deemed successful enough to be passed on

Values


Theoretical people

Classification of ValuesClassification of Values

Adapted from Exhibit 8.1: Types of Plans: Key Differences

Value the discovery of truth. They are empirical, critical, and rational, aiming to order and systematize their knowledge.

Economic people Value what is useful. They are interested in practical affairs, especially those of business, judging things by their usefulness

Aesthetic people Value beauty and harmony. They are concerned with grade and symmetry, finding fulfillment in artistic experiences.


Social people


Value altruistic and philanthropic love. They are kind, sympathetic, and unselfish, valuing other people as ends in themselves.

Religious people Value unity. They seek communication with the cosmos, mystically relating to its wholeness.

Adapted from Exhibit 4.5: Classification of Values

Source: G. W. Allport, P. E. Vernon, and Q. Lindzey, A study of Values (Boston: Houghton Mifflin, 1966.

What type do you most identify with? Why?What type do you most identify with? Why?


Levels of Culture – Levels of Culture – Artifacts and BehaviorsArtifacts and Behaviors

Cultural Artifacts andBehavior In modern organizations, important

artifacts include Office arrangements (individual offices for all versus open

offices with no walls) Parking arrangements (reserved spaces for some versus

open spaces for all) Clothing (individual suits versus uniforms)

Artifacts(visible)


Culture and Observable Culture and Observable Managerial BehaviorsManagerial Behaviors

Plan for every possible contingency.Develop a plan jointly with boss.

Planning

Accept unexpected surprises.Develop a plan and then seek boss’s approval

ManagerialActivity

Culture BCulture A

Structure department strictly by hierarchy. Communicate frequently face to face and rarely use e-mail.

Organizing

Organize department into free-flowing teams. Communicate infrequently face to face and frequently by e-mail.

Adapted from Exhibit 4.6: Culture and Managerial Behaviors


Culture and Observable Culture and Observable Managerial BehaviorsManagerial Behaviors

Inform subordinates of decisions. Intervene when there are disputes.

Leading

Involve subordinates in decision process. Allow subordinates to solve their own problems.

ManagerialActivity

Culture BCulture A

Closely monitor activities and directly guide behavior. Emphasize financial results in evaluating performance.

Controlling

Evaluate and then reward based on results. Focus on customer satisfaction in evaluations.

Adapted from Exhibit 4.6: Culture and Managerial Behaviors


Geerte Hofstede, The IBM Survey, Geerte Hofstede, The IBM Survey, and Culture’s Consequencesand Culture’s Consequences

From 1967-1973 Hofstede administered approximately 117,000 surveys to employees of IBM in 71 countries. Due to the strong corporate culture at IBM at the time, any differences in values and attitudes among the employees could be attributed to national rather than organizational culture.

Hofstede’s analysis identified four key dimensions along which national cultures can be differentiated: Power Distance Uncertainty Avoidance Individualism/Collectivism Masculinity/Femininity


Power distancePower distance

This dimension measures the extent to which less powerful members of a society expect and accept that others will have more power than they and that power will not be distributed evenly within the culture.

The findings suggest that the existence of power inequality is accepted by the lower powered members of a society as well as the higher-powered members.


Uncertainty Avoidance Uncertainty Avoidance

This dimension measures the extent to which the members of a given culture are socialized to be comfortable or uncomfortable in uncertain, ambiguous situations.

Cultures with high levels of uncertainty avoidance tend to limit ambiguity through laws, rules, religious and philosophical tenets, and a belief in determinate reality.

Members of cultures with lower levels of uncertainty avoidance tend to be more accepting of opinions different from their own, more flexible in dealing with new situations.


Individualism/CollectivismIndividualism/Collectivism

This dimension measures the strength of ties individuals have to the groups they belong to.

Members of individualistic cultures have very loose ties to others, with their main focus on themselves and their immediate family.

Members of collectivistic societies on the other hand are socialized from birth to have strong ties to the groups to which they belong.


Masculinity/FemininityMasculinity/Femininity

Assertive behavior has been termed masculine and the more caring pole, feminine.

The study found that women’s attitudes and values differed less across cultures than did men’s.

Whereas a woman in a masculine culture might be slightly more assertive than a woman in a feminine culture, the males in a masculine culture were much more assertive than the males in a feminine culture.



Adapted from Exhibit 8.1: Types of Plans: Key Differences

1. Cost As organizations become more diverse, the cost of a poor job in integrating workers will increase.

Companies with the best reputations for managing diversity will win the competition for the best personnel. As the labor pool shrinks and becomes more diverse, this edge will become increasingly important.

For multinational organizations, the insight and cultural sensitivity that members with roots in other cultures bring should improve marketing efforts.

2. Resource Acquisition

3. Marketing



Adapted from Exhibit 4.5: Classification of Values

Source: T. H. Cox and S. Blake, “Managing Cultural Diversity: Implications for Organizational Competitiveness,”Academy of Management Executive 5, no. 3 (1991), p. 23.

4. Creativity Diversity of perspectives and less emphasis on conformity to norms of the past should improve creativity.

Cultural diversity in decision and problem solving groups potentially produces better decisions through consideration of a wider range of and more thorough critical analysis of issues.

Cultural diversity enables the system to be less determinant, less standardized, and therefore more fluid, which will create more flexibility to react to environmental chang4es.

5. Problem Solving

6. System Flexibility


Strong and Weak CulturesStrong and Weak Cultures

Core value - a specific behavior that is Widely shared Deeply held Directly related to one or more of the six

fundamental assumptions Difficult to change



The strength of cultures varies along two dimensions The extent to which they are are widely

shared among group members The extent to which they are deeply held

Subculture Cultural values are deeply held but not

widely shared



Values held

Deep

Shallow

Values Shared

WideNarrow

Adapted from Exhibit 4.9: Matrix of Cultural Strength

Narrowly Shared

Deeply Held

Violation of these values usually results in informal but significant sanctions

Widely Shared

Deeply Held

Violation of these values usually results in formal but

significant sanctions

Narrowly Shared

Shallowly Held

Violation of these values usually results in sanctions

that are inconsistent

Widely Shared

Shallowly Held

Violation of these values usually results in minor

sanctions or second chances


Creating and Changing Creating and Changing Organization CultureOrganization Culture

To create and reinforce a particular set of values or corporate culture Alignment between desired values and other

systems in the organization needs to exist

Five critical strategies to effectively manage organizational culture Selection Socialization

Performance appraisal Rewards and Compensation

Stories and Symbols


Author’s CornerAuthor’s Corner

In this interview, Stewart Black responds to the following question about strong and weak cultures. How do managers’ roles differ in strong vs.

weak cultures?

To watch this interview, click here.



Selection Select individuals

whose assumptions, values, and behaviors already match those you desire

Sel

ectio

n

Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture



Socialization Orientation Training Arranged interactions

with experienced organizational members

Sel

ectio

n

Socialization




Performance Appraisal Clarify for new

employees what the organization measures and evaluates

Sel

ectio

n

Socialization

Pe

rform

an

ce A

pp

rai sa

l




Rewards and Compensation Signal what the

organization values by reinforcing desired behaviors in newcomers

Sel

ectio

n

Socialization

Pe

rform

an

ce A

pp

rai sa

l

Rewards & Compensation




Stories and Symbols Stories communicate

company values Rituals play a key role

in the symbolic communication of an organization’s culture

Sel

ectio

n

Socialization

Pe

rform

an

ce A

pp

rai sa

l

Rewards & Compensation

Stories & Symbols



International Contexts and International Contexts and CulturesCultures

Cultural context: degree to which a situation influences behavior or perception of “appropriateness” In high-context cultures, people pay close attention

to the situation and its various elements in assessing appropriate behavior

In low-context cultures, the situation may or may not make a difference in what is considered appropriate behavior

Neither high nor low-context cultures are right or wrong, just different


Our culture?Our culture?

Do any of you or your families come from somewhere outside the United States? How does the culture differ? What is the hardest thing about our culture?

Does this college have a culture? Exercise – CULTURE ANALYSIS


DebriefDebrief

What elements do you feel you know the least about? The most? Why do you think this is?

Thinking back on Environmental Analyses, what forces do you think are most likely to impact this school in the near future? Will the school’s culture help or hinder any needed changes?

Do you think there are any aspects of our school’s culture that are detrimental to the school? Which ones? How would you go about changing them?


Cultural DiversityCultural Diversity

Diversity comes from two primary sources Increased international activity of organizations Greater diversity in the cultures of employees

Diversity includes differences in Age, race, ethnicity, gender, physical abilities, and

sexual orientation Work background, income, marital status, military

experience, religious beliefs, geographic location, parental status, and education


Majority and Minority GroupsMajority and Minority Groups

Majority groups are people who hold most of the command decision-making positions, control resources and information, and have more access to system rewards.

Minority groups are a similar group of people, but lack critical power, resources, and social status.

Give an example of a “minority” and majority


Cultural DiversityCultural Diversity

Nu

mb

er o

f G

rou

ps

Low Performance

High Performance

Many

Few

Adapted from Exhibit 4.7: Effects of Cultural Diversity on Productivity


Challenges managers face Challenges managers face with diverse populationswith diverse populations

Changing demographics Global spotlight Ethnocentrism and stereotypes Discrimination Tokenism


Changing DemographicsChanging Demographics

Five demographic issues for the twenty-first century: Slowest growth since the 1930s Average age rises and new entrant pool shrinks More women enter workforce Minorities make up larger share of new entrants Immigrants represent largest share of increase


QuestionsQuestions

Who feels comfortable with diversity? What are the general attributes of a female executive? Would you hire a woman who shared during the

interview that she was looking forward to starting a family?

What about someone who is disabled? Under what circumstances is it important to readily

communicate in English? Would you hire a 60+ person? Can a man charge sexual discrimination?


Negative dynamicsNegative dynamics

Women “glass ceiling” Sexual harassment

Ethnic or racial minorities Bicultural stress Role conflict Role overload

Older worker Workers with disabilities Stereotypes and prejudice


PluralismPluralism

Def. - A condition in which numerous distinct ethnic, religious, or cultural groups are present and tolerated within a society.

The belief that such a condition is desirable or socially beneficial.

‘‘Golden Rule” Approach Assimilation Approach ‘‘Righting-the-Wrongs” Approach Culture-Specific Approach Multicultural Approach


Levels of organizational Levels of organizational commitmentcommitment

Ignoring Differences Complying with External Policies Enforcing External Policies Responding Inadequately Implementing Adequate Programs Taking Effective Action


Focus of Diversity TrainingFocus of Diversity Training

Behavioral awareness Acknowledgment of biases and

stereotypes Focus on job performance Avoidance of assumptions Modification of policy and procedure

manuals


Core values at DupontCore values at Dupont- supporting diversity- supporting diversity

Modern corporations arrive at diversity programs through their human resource function. As seen in this short video clip taken from one of the BNN videos (DuPont Corporation) these corporations support diversity as a key element for effectively competing in the business world.

To watch this video clip, click here.


Top-down support results in:Top-down support results in:

Skilled managers Education and diversity training programs Organization promotes diversity and fosters peer

support Open communication Recognition for employees’ development Recognition for employee contributions Organizational rewards for managers’

implementation


Stages in Managing Stages in Managing a Diverse Workforcea Diverse Workforce

“Unconscious incompetence” “Conscious incompetence” “Consciously competent’’ “Unconscious competence”

powerpoint slides by r. dennis middlemist colorado state university powerpoint slides by r. dennis...

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