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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
66 ©2005 Prentice Hall
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.
88 ©2005 Prentice Hall
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
99 ©2005 Prentice Hall
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.
1010 ©2005 Prentice Hall
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)
1111 ©2005 Prentice Hall
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
1212 ©2005 Prentice Hall
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)
1313 ©2005 Prentice Hall
Basic Assumptions and Their Basic Assumptions and Their Managerial AssumptionsManagerial AssumptionsSpecific
AssumptionsSpecific
Assumptions
Managerial Implications
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
1414 ©2005 Prentice Hall
Basic Assumptions and Their Basic Assumptions and Their Managerial AssumptionsManagerial AssumptionsSpecific
AssumptionsSpecific
Assumptions
Managerial Implications
Managerial Implications
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
Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications
1515 ©2005 Prentice Hall
Basic Assumptions and Their Basic Assumptions and Their Managerial AssumptionsManagerial AssumptionsSpecific
AssumptionsSpecific
Assumptions
Managerial Implications
Managerial Implications
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
Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications
1616 ©2005 Prentice Hall
Basic Assumptions and Their Basic Assumptions and Their Managerial AssumptionsManagerial AssumptionsSpecific
AssumptionsSpecific
Assumptions
Managerial Implications
Managerial Implications
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
Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications
1717 ©2005 Prentice Hall
Basic Assumptions and Their Basic Assumptions and Their Managerial AssumptionsManagerial AssumptionsSpecific
AssumptionsSpecific
Assumptions
Managerial Implications
Managerial Implications
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
Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications
1818 ©2005 Prentice Hall
Basic Assumptions and Their Basic Assumptions and Their Managerial AssumptionsManagerial AssumptionsSpecific
AssumptionsSpecific
Assumptions
Managerial Implications
Managerial Implications
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
Adapted from Exhibit 4.3: Basic Assumptions and Their Management Implications
2121 ©2005 Prentice Hall
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
2222 ©2005 Prentice Hall
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.
2323 ©2005 Prentice Hall
Social people
Classification of ValuesClassification of Values
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?
2424 ©2005 Prentice Hall
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)
2525 ©2005 Prentice Hall
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
2626 ©2005 Prentice Hall
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
2727 ©2005 Prentice Hall
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
2828 ©2005 Prentice Hall
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.
2929 ©2005 Prentice Hall
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.
3030 ©2005 Prentice Hall
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.
3131 ©2005 Prentice Hall
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.
3232 ©2005 Prentice Hall
Classification of ValuesClassification of Values
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
3333 ©2005 Prentice Hall
Classification of ValuesClassification of Values
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
3434 ©2005 Prentice Hall
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
3535 ©2005 Prentice Hall
Strong and Weak CulturesStrong 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
3636 ©2005 Prentice Hall
Strong and Weak CulturesStrong and Weak Cultures
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
3737 ©2005 Prentice Hall
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
3838 ©2005 Prentice Hall
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.
3939 ©2005 Prentice Hall
Creating and Changing Creating and Changing Organization CultureOrganization Culture
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
4040 ©2005 Prentice Hall
Creating and Changing Creating and Changing Organization CultureOrganization Culture
Socialization Orientation Training Arranged interactions
with experienced organizational members
Sel
ectio
n
Socialization
Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture
4141 ©2005 Prentice Hall
Creating and Changing Creating and Changing Organization CultureOrganization Culture
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
Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture
4242 ©2005 Prentice Hall
Creating and Changing Creating and Changing Organization CultureOrganization Culture
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
Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture
4343 ©2005 Prentice Hall
Creating and Changing Creating and Changing Organization CultureOrganization Culture
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
Adapted from Exhibit 4.10: Strategies to Manage Organizational Culture
4444 ©2005 Prentice Hall
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
4545 ©2005 Prentice Hall
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
4646 ©2005 Prentice Hall
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?
4747 ©2005 Prentice Hall
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
4848 ©2005 Prentice Hall
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
4949 ©2005 Prentice Hall
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
5050 ©2005 Prentice Hall
Challenges managers face Challenges managers face with diverse populationswith diverse populations
Changing demographics Global spotlight Ethnocentrism and stereotypes Discrimination Tokenism
5151 ©2005 Prentice Hall
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
5252 ©2005 Prentice Hall
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?
5353 ©2005 Prentice Hall
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
5454 ©2005 Prentice Hall
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
5555 ©2005 Prentice Hall
Levels of organizational Levels of organizational commitmentcommitment
Ignoring Differences Complying with External Policies Enforcing External Policies Responding Inadequately Implementing Adequate Programs Taking Effective Action
5656 ©2005 Prentice Hall
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
5757 ©2005 Prentice Hall
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.
5858 ©2005 Prentice Hall
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
5959 ©2005 Prentice Hall
Stages in Managing Stages in Managing a Diverse Workforcea Diverse Workforce
“Unconscious incompetence” “Conscious incompetence” “Consciously competent’’ “Unconscious competence”
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