Cross cultural management 3rd hapter 12 (14) cultural diversity in organisations

Slide 12.1 Chapter 12 Cultural diversity in organisations Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.2 Managing cultural differences • One fundamental problem with globalization is the management of cultural differences: how executives conceive the interaction between different cultures? Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.3 Management culture in multinationals Théry (2002) distinguishes three types of management culture: – Dominant management culture • a copy of the multinational’s home country – Dominant transnational management culture • created by the mother-company’s founders – Minimum management culture • leaving room for national cultures Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.4 Transnational organisation • Bartlett and Ghoshal (1989) propose a model for the organisation of the future: – the transnational company – This type of company has a management mentality which combines: 1.Flexibility 2.Efficiency 3.Transfer of expertise Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.5 Transnational organisation (Continued) • Top management’s role at both HQ and in subsidiaries is: – to co-ordinate these capacities (polycentric); – to integrate the different influences of the functional and geographic groups into the management process; – to create a common vision, a shared set of values which reflects managers’ goals Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.6 Perceived cons of ‘diversity’ Managers perceive diversity as a source of both problems and advantages •Problems – Communication and integration – Practices adopted by the organization across the board – Diversity among employees may: • cause misunderstandings • obstruct team work and productivity Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.7 Perceived pros of ‘diversity’ • Advantages – Multinationals are: more flexible open to new ideas more aware of consumers’ needs – Diversity is advantageous when the concern must: reposition itself generate ideas develop projects open itself to fresh perspectives Adler (2002) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.8 What is competence? • Competence: – involves a full range of resources: – Knowledge, skills, cognitive abilities • Key to competence: – Ability to integrate these resources – Through the channel of communication and human interaction Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.9 What is competence? Figure II.1 What is competence? Source: Figure based on the concept developed by Le Boterf (1994) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.10 Intercultural management • Intercultural management is required: – one which can adapt its way of communicating, negotiating and leading to the cultural context of the country concerned • Managers: – must become aware of their own cultural preferences – case by case: • search for ways of working that are adapted to those of the other culture • In short, develop the competences necessary Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.11 Transcultural competence Transcultural competence: - the ability to bridge the differences between the native and destination culture – To develop the propensity to reconcile seemingly opposing values • At the heart of transcultural competence: – principle of reconciliation – Success of such competence • Determined by feedback from peers on business performance • Correlated to degree of business success abroad Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.12 Hypercultural competence (Continued) Sub-levels of competence: Cross-cultural competence: – functioning according to rules of more than one cultural system – responding in a culturally sensitive and appropriate manner – Intercultural competence: – communicating and collaborating successfully and effectively with others, – recognizing and respecting differences • Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.13 Hypercultural competence (Continued) Transcultural competence: • bridging differences between the native and destination culture • developing the propensity (tendency) to reconcile (settle) seemingly opposing values 4.Intracultural competence: – capability to leverage cultural and/or ethnic diversity within teams Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12.14 Cultural diversity and competitive advantage • Internationalisation: – has reinforced the importance of cultural diversity rather than reduce it • Need managers: – who can use the intercultural situations within/outside the companies to the company’s advantage • Managers need to: – acquire tools – acquire working methods to develop sufficient competence in a cross-cultural context to turn diversity into a competitive advantage End Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 ... Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12. 3 Management culture in multinationals Théry (2002) distinguishes three types of management. .. Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12. 12 Hypercultural competence (Continued) Sub-levels of competence: Cross- cultural. .. the Web, 3rd edition, © Pearson Education Limited 2015 Slide 12. 10 Intercultural management • Intercultural management is required: – one which can adapt its way of communicating, negotiating and