Cross cultural management 3rd chapter 7 (7) culture and corporate structures

Slide 7.1 Part Culture and organisations Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7.2 Chapter Culture and corporate structures Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7.3 Forms of organisational structure Fatehi (1996): • Three basic models of organisational structure: Functions – Products – Geographic areas • Classification of five organisational structures: − – – – – Geographic structure Functional structure Product structure Mixed structure (combinations of above) Matrix structure (the two ‘lines’ – functional and project – share responsibility) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7.4 Other recent organisational structures (Continued) • Transnational structure (Bartlett and Ghoshal, 1989) – A multi-faceted organisation – respond to international, multinational and global environment Characteristics: – Dispersed, interdependent, specialised – Its national units make differentiated contributions to integrated worldwide operations – Its knowledge is developed jointly and shared worldwide Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7.5 Cultural diversity and organisational structure Organisational location of global cross-cultural interaction: internal and external Figure 7.1 Source: Adler with Gundersen, 2008: 128 Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7.6 Corporate cultures • The concept focuses on the ‘corporate’ element of culture and on two key criteria: ─ business environment ─ national cultural setting • The business environment: • single greatest influence in shaping a corporate culture • The national cultural setting: • has an influence on how companies manage their business Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7.7 Classifying organisational cultures (Deal and Kennedy) The tough guy, macho culture e.g police, hospitals, cosmetics • • • lots of risk-taking, quick feedback emphasis on youth and speed quick decisions needed, even if not always right Work hard/Play hard culture e.g company sales department or factory • • ‘Fun’ and action with quick feedback low risk activities (strict control system preventing major risks) consumers very important • • Bet-your company culture e.g exploration companies (oil) • • high risk, slow feedback years before pay-off or failure much discussion to ensure the right decision is taken • • low-risk activities with little feedback focus on how things are done rather than what needs to be achieved The process culture e.g banks, insurance, pharmaceutical company Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7.8 Stereotyping corporate culture (Trompenaars and Woolliams) Model based on ‘organisational relationships’ Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7.9 Analysing organisational cultures Figure 7.2 The cultural web End Source: Johnson et al., 2008: 198 (adapted) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, edition, © Pearson Education Limited 2015 rd ...Slide 7. 2 Chapter Culture and corporate structures Browaeys and Price, Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7. 3 Forms... jointly and shared worldwide Browaeys and Price, Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 7. 5 Cultural diversity and organisational... global cross- cultural interaction: internal and external Figure 7. 1 Source: Adler with Gundersen, 2008: 128 Browaeys and Price, Understanding Cross- Cultural Management PowerPoints on the Web, 3rd