Management by hitt back porter CH04

Chapter Managing Within Cultural Contexts PowerPoint slides by R Dennis Middlemist Colorado State University Learning Objectives After studying this chapter, you should be able to:    Explain why a thorough understanding of culture is important for all mangers Define culture Explain how culture affects managerial behavior and practices ©2005 Learning Objectives After studying this chapter, you should be able to:   Describe the role of fundamental assumptions in corporate, regional, or national cultures Map aspects of culture in terms of the extent to which they are deeply held and widely shared ©2005 Learning Objectives After studying this chapter, you should be able to:  Describe the key strategies managers can use to create and change culture  Explain the differences between and describe the implications of high‑ and low‑context cultures ©2005 Definition 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 ©2005 Managerial Relevance of Culture  Impact of Culture on Behavior  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 ©2005 Cultural Differences Among Managers 80% “It is important for a manager to have at hand precise answers to most of the questions his/her subordinates may raise about their work.” 38 44 70% 60% 50% 40% 30% 17 20% 10% 18 23 73 78 66 53 46 27 10 ©2005 nd B el gi G um er m an y Fr an ce Ita In l y ne si a Ja pa n er la U K itz Sw D en m ar k U SA la nd H ol Sw ed en 0% Adapted from Exhibit 4.1: Cultural Differences Among Managers Managerial Relevance of Culture  Cultural diversity in the workplace  Globalization  Increasingly culturally diverse U.S workforce  Culture as a management tool  Once established, culture guides employee behaviors without overt or constant supervision  Managers must be careful what they instill as the cultural values of the unit (organization) ©2005 Levels of Culture  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 ©2005 Adapted from Exhibit 4.2: Managing Within Cultural Contexts Levels of Culture  Cultural assumptions  Certain cultural values and behaviors are only possible with Assumptions (Hidden) certain underlying cultural assumptions  An understanding of assumptions is necessary to understand, change, or even create a new culture 10 ©2005 Culture and Managerial Behaviors Culture A Inform subordinates of decisions Intervene when there are disputes Closely monitor activities and directly guide behavior Emphasize financial results in evaluating performance 24 ©2005 Managerial Activity Culture B Leading Involve subordinates in decision process Allow subordinates to solve their own problems Controlling Evaluate and then reward based on results Focus on customer satisfaction in evaluations Adapted from Exhibit 4.6: Culture and Managerial Behaviors Cultural 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 25 ©2005 Cultural Diversity  Number of Groups Many Few Low Performance 26 ©2005 High Performance Adapted from Exhibit 4.7: Effects of Cultural Diversity on Productivity Strong and Weak Cultures  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 27 ©2005 Classification of Values 28 Cost Resource Companies with the best reputations for managing Acquisition diversity will win the competition for the best personnel As the labor pool shrinks and becomes more diverse, this edge will become increasingly important Marketing ©2005 As organizations become more diverse, the cost of a poor job in integrating workers will increase For multinational organizations, the insight and cultural sensitivity that members with roots in other cultures bring should improve marketing efforts Adapted from Exhibit 8.1: Types of Plans: Key Differences Classification of Values Creativity Diversity of perspectives and less emphasis on conformity to norms of the past should improve creativity Problem Solving 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 System Flexibility 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 Source: T H Cox and S Blake, “Managing Cultural Diversity: Implications for Organizational Competitiveness,” Academy of Management Executive 5, no (1991), p 23 29 ©2005 Adapted from Exhibit 4.5: Classification of Values Strong and Weak Cultures Deep Values held Shallow 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 Narrow 30 ©2005 Values Shared Wide Adapted from Exhibit 4.9: Matrix of Cultural Strength Strong 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 31 ©2005 Creating and Changing Organization 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 32 ©2005 Creating and Changing Organization Culture  Select individuals whose assumptions, values, and behaviors already match those you desire 33 ©2005 Se lec t io n  Selection Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture  Socialization  Orientation  Training  Arranged interactions with experienced organizational members 34 ©2005 Se lec t io n Creating and Changing Organization Culture Soci aliza t ion Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture Creating and Changing Organization Culture  Performance Appraisal Se lec t io n  Clarify for new employees what the organization measures and evaluates Performance Appraisal 35 ©2005 Soci aliza t ion Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture Creating and Changing Organization Culture  Rewards and Se lec t io n Compensation  Signal what the 36 ©2005 Re ds w ar a ens p m o &C tion Performance Appraisal organization values by reinforcing desired behaviors in newcomers Soci aliza t ion Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture Creating and Changing Organization Culture Se lec t io n & Sy mb ol s Re ds w ar a ens p m o &C tion Performance Appraisal ©2005 i es 37 or St  Stories and Symbols  Stories communicate company values  Rituals play a key role in the symbolic communication of an organization’s culture Soci aliza t ion Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture International Contexts and Cultures  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 38 ©2005 ... Managerial Implications Time management is a critical skill Appointments are made well in advance and punctuality is valued Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications... enable the firm to dominate its industry Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications Basic Assumptions and Their Managerial Assumptions Specific Assumptions... establish clear punishment for undesired behavior Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications Basic Assumptions and Their Managerial Assumptions Specific Assumptions