DSpace at VNU: Culture comparison and culture change-case study of ABB VietNam and ABB Singapore

Culture comparison and culture change-case study of ABB VietNam and ABB Singapore Nguyễn Thị Hồng Liên Khoa Quản trị Kinh doanh Luận văn Thạc sĩ ngành: Quản trị Kinh doanh; Mã số: 60 34 05 Người hướng dẫn: TS Đào Thị Thanh Lam, ThS Hà Nguyên Năm bảo vệ: 2012 Keywords Quản trị kinh doanh; Văn hóa doanh nghiệp Content TABLE OF CONTENT ACKNOWLEDEMENTS i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENT vi LIST OF TABLES ix LIST OF FIGURES x INTRODUCTION CHAPTER 1: LITERATURE REVIEW 1.1 Definitions 1.1.1 Culture 1.1.2 Organizational Culture 1.2 Cultural layers & 1.2.1 cultural diversity The out layer (Explicit Products/Artifacts) 1.2.2 The middle layer (Norms and Beliefs/Espoused Beliefs and Values) 10 1.2.3 The core (Basic Assumptions/Underlying Assumptions) 11 1.3 Sub-culture 15 1.4 The importance of organizational culture 15 1.4.1 Coordination 16 1.4.2 Integration 17 1.4.3 Motivation 18 1.4.4 How well can organizational culture its functions? 18 1.5 Culture analysis -OCAI method 19 1.5.1 General about culture analysis methods 19 1.5.2 Advantages of OCAI method 24 1.5.3 Dimensions in OCAI 25 1.5.4 Questionnaire applied in OCAI 27 1.5.5 Scoring the OCAI 28 1.5.6 What can be found from OCAI result 28 1.6 Methodology applied in the thesis 37 1.6.1 OCAI method 37 1.6.2 Interview method 37 1.6.3 Other analysis methods 38 1.6.4 Focused points 38 CHAPTER 2: CULTURE ANALYSIS IN ABBPP DIVISIONS 39 2.1 Introduction about ABB Singapore and ABB Vietnam 39 2.1.1 Introduction about ABB Group 39 2.1.2 Introduction about ABB Vietnam (VNABB) and ABB Singapore (SGABB) 42 2.2 Organizational culture comparison between SGABB’s and VNABB’s PP Division 45 2.2.1 Different dominant cultures but same major culture types 45 2.2.2 The current dominant culture gains cultural congruencein both countries 48 2.2.3 Differences in expected dominant culture types 53 2.2.4 Less cultural congruence for the expected dominant cultures & the inevitable emergence of Clan and Adhocracy 54 2.2.5 Diversity in expectation of employee groups 58 2.3 Factors influencing organizational cultures 2.3.1 The vital role of standardization in ABB’s operation 60 2.3.2 Market situation and market orientation in ABB Group 62 2.3.3 Asian culture - a strong factor supporting for Clan Culture 66 2.3.4 Adhocracy Culture - an answer to the dilemmas 66 2.3.5 Business nature & the major sub-groups 66 in the twoDivisions 60 CHAPTER 3: RECOMMENDATIONS 68 3.1 The importance of defining culture profile 68 3.2 Culture incongruence requires leadership involvement 68 3.2.1 Leaders are to listen and respect the needs ofemployees 69 3.2.2 Vision the future culture to pursuit 69 3.2.3 Define the culture transformation process 70 3.3 Visioning the transformation 70 3.3.1 ABB Vietnam - PP Division 71 3.3.2 ABB Singapore - PP Division 75 3.4 Operational change for the cultural change 79 3.4.1 In ABB Vietnam - PP Division 79 3.4.2 In ABB Singapore - PP Division 83 3.5 International cooperation and global resource utilization 88 CONCLUSION 91 REFERENCE 93 APPENDIX 1: VARIOUS CATEGORIES USED TO DESCRIBE CULTURE 97 APPENDIX 2: ENVIRONMENTAL VARIABLES AFFECTING MANAGEMENT FUCTIONS 99 APPENDIX 3: DENISON ORGANIZATIONAL CULTURE SURVEY 100 APPENDIX 4: QUESTIONAIRE SAMPLE 101 APPENDIX 5: CULTURE PROFILE COMPARISION VIETNAM VS SINGAPORE 105 References BOOKS Amann, Dissertation on “The impact of internationalization on organizational culture a comparative study of international US and German companies”, University of St.Gallen, German, 2003, pg.40 Cameron & Quinn, “Diagnosing and Changing Organizational Culture: based on the competing values framework”, Jossey Bass, Revised Edition, 2006, pg.26-30, pg.37, pg.40, Deresky, “International Management - Managing Across Borders and Cultures”, Prentice Hall, USA, 2006, p.484, pg86, pg84, H.Schein, “Organizational Culture and Leadership”, Jossey Bass, Third Edition, 2004, page.17, pg.26, pg.30 Summersemester, “Multicultural Management”, International Technology Transfer Management, 2004, p.2 Thompson & Martin, “Strategic management: awareness and change”, 5th edition, Thomson Learning, pg.377 Trompenaars & Hampden-Turner, “Riding the waves of cultures - Understanding cultural diversity in business”, Nicholas Brealey Publishing, London, 2nd edition, 1998, pg.5, pg.21, pg22, pg24 Vo, Hong Nga, Dotoral thesis “Nexus between organizational cutlure and IT implementation in Vietnamese organizations”, Swinburne Universtity of Technology, pg.27 WEBSITE Truman State University, Invitation to Cultural Evolutionism, Founding Figures, Edward Tylor, http://www2.truman.edu/~rgraber/cultev/malthus.html 10 Cambridge Online Dictionary, http://di cti onary cambrid ge org/di cti onary/briti sh/culture 11 Changingmind.org, Explanation, Culture http://changingminds.org/explanations/culture/culture.htm 12 Definitions of Organizational Culture http://www.organizationalculture101.com/definition-of-organizational-culture.html 13 Brain Bacon, “Aligning People with Stratergy”, www.Oxfordleadership.com 14 http://www.abb.com 15 OCAI Online, http://www.ocai-online.com/ • Culture change is difficult and why OCAI http://www.ocai-online.com/about-theOrganizational-Culture-Assessment-Instrument-OCAI/OCAI-use • OCAI helps Ericsson work on high performance http://www.ocai- online.com/blog/2011/01/OCAI-Helps-Ericsson-Work-on-High-PerformanceCulture • The competing value frame work with major clusters http://www.ocaionline.com/about-the-Organizational-Culture-Assessment-InstrumentOCAI/Competing-Values-Framework • Competing Values Leadership: quadrant roles and personality: people sometimes wonder how they personally fit into the current and preferred organizational culture types http://www.ocai-online.com/blog/2011/02/Competing-Values- Leadership- quadrant-roles-and-personality • Interpret culture profile - Philadelphia Care - Is it good when we stay the same? http://www.ocai-online.com/blog/2010/09/OCAI-Workshop-at-PhiladelphiaCare#comments • An example about Clan culture in a Health Care Center http://www.ocaionline.com/blog/2010/09/Clan-Culture-Eases-Work-Pressure-and-Gives-us-Wings • Interpret culture profile - interesting http://www.ocai- online.com/blog/2010/05/Organizational-culture-in-Financial-organizations • Culture in large organizations: focus in productivity and less on people http://www.ocai-online.com/blog/2010/03/Dutch-health-care-sector-examined- with-OCAI • Case study http://www.ocai-online.com/blog/2010/12/The-Real-Secret-to- Achieving-Stellar-Results • http://www.ocai-online.com/about-the-Organizational-Culture-AssessmentInstrument-OCAI/Organizational-Culture-Change • Organizational Culture Types http://www.ocai-online.com/about-the- Organizational-Culture-Assessment-Instrument-OCAI/Organizational-CultureTypes • http://www.ocai-online.com/downloads/podcasts/What-is-Organizational-Culture • OCAI Pro example report: Dutch public administration http://www.ocai- online.com/userfiles/file/ocai pro example report.pdfb • OCAI Online, OCAI Instrument General Introduction, http://www.ocai- online.com/userfiles/file/ocai general information.ppt 16 Hofstede’s academic site http://www.geerthofstede.nl/ 17 Hofstede and Schwartz’s models for classifying individualism at the cultural level: their relation to macro-social and macro-economic variables http://www.psicothema.com/pdf/395.pdf 18 Helen Deresky’s website www.prehall com/deresky 19 Academic Leadership The Online Journal, “The impact of national cultures on corporate cultures in organisations ”, http://www.academicleadership.org/article/theimpact-of-national-cultures-on-corporate-cultures-in-organisations 20 Academy of Management Executive, 2004, Vol 18, No 1, “Hofstede’s consequences: The impact of his work on consulting and business practices”, http://home.sandiego.edu/~pavett/docs/gsba532/hofstede cons.pdf 21 Elke Duncker, Paul Curzon, “Cross-Culture interface Design Strategy”, Middlesex University, 2004, http://www.pdfebook4u.com/download/Cross-cultural-InterfaceDesignStrategy aHR0cDovL2NpdGVzZWVyeC5pc3QucHN1LmVkdS92aWV3ZG9jL2Rvd 25sb2FkP2RvaT0xMC4xLiEuQTkuNDYzNSZyZXA9cmVwMSZ0eXBlPXBkZg== 22 Kyoto Univesity, Research Institute for Mathematical Sciences, “A Study of the Relationship between Organizational Culture and Organizational Effectiveness of the Electronic Industries in Taiwan”, http://www.kurims.kyotou.ac.ip/~kyodo/kokyuroku/contents/pdf/1461-15.pdf 23 Daniel R Denison, “Organizational Culture and Organizational Effectiveness: A Theory and Some Preliminary Empirical Evidence ”, School of Business Administration, University of Michigan, http://www.denisonconsulting.com/dc/portals/0/docs/paper cult eff.pdf “Effects 24 Organizationalculture101.com, Of Organizational Culture”, http://www.organizationalculture101.com/effects-of-organizational-culture.html 25 Léo F C Bruno, Ph.D, “The Impact of Organizational Culture on Innovation Management”, E-Leaders, Conference, http://www.g- casa.com/conferences/budapest/papers/Bruno.pdf 26 Prof Dr Peter Gomez , “The impact of internationalization on organizational culture - A comparative study of international US and German companies”, University of St.Gallen, http://www1.unisg.ch/www/edis.nsf/wwwDisplavIdentifier/2791/SFILE/dis2791.pdf 27 Francis D Tuggle, Ph.D and Nancy C Shaw, Ph.D., “The Effect of Organizational Culture on the Implementation of Knowledge Management”, Association for the Advancement of Artificial Intelligence, http://www.aaai.org/Papers/FLAIRS/2000/FLAIRS00-032.pdf 28 Cynthia Webster, “Exploring The Relationships Among Organizational Culture, Customer Satisfaction, And Performance”, Mississippi State University, http://marketing.bvu.edu/htmlpages/ccrs/proceedings99/webster.htm 29 www.sagepub.com, “Organizational Culture and Performance”, http://www.sagepub com/upm-data/9432 010384ch3.pdf 30 Social Science Research Network, “The Influence Of Organizational Cultural Dimensions On The Financial Performance http://papers.ssrn.com/sol3/papers.cfm7abstract Of Selected Nepali Banks”, id=1624690&http://www.google.com vn/search?hl=vi&biw=1260&bih=618&q=the+influence+organizational+culture+fina ncial+performance&aq=f&aqi=&aql=&oq= 31 Mahmood Karim, “Relationship between Corporate Culture and Organizational Effectivenss: A Case Study on Zain Telecommunication Limited, Social Science Research Network”, http://papers.ssrn.com/sol3/papers.cfm7abstract id=1624690&http://www.google.com vn/search?hl=vi&biw=1260&bih=618&q=the+influence+organizational+culture+fina ncial+performance&aq=f&aqi=&aql=&oq= 32 Classifying of Organizational Culture http://www.wordiq.com/definition/Organizational culture ... 5: CULTURE PROFILE COMPARISION VIETNAM VS SINGAPORE 105 References BOOKS Amann, Dissertation on “The impact of internationalization on organizational culture a comparative study of international... Vietnam (VNABB) and ABB Singapore (SGABB) 42 2.2 Organizational culture comparison between SGABB’s and VNABB’s PP Division 45 2.2.1 Different dominant cultures but same major culture. .. impact of national cultures on corporate cultures in organisations ”, http://www.academicleadership.org/article/theimpact -of- national-cultures-on-corporate-cultures-in-organisations 20 Academy of