ESLSCA39E

UNDERSTANDING CROSS-CULTURAL MANAGEMENT

Dr. Hassan Wagih

CULTURE AND ORGANIZATIONS

Organizational Structure

Organizational structure forms the basis of the organization’s culture:

Formalizes the tasks, jobs and positions of its personnel, as well as the limits and responsibilities of the work units

Indicates the kind of hierarchy within the organization, the levels of authority and power as well as the formal lines of communication between the employees

Forms of corporate structures

Geographic

structure

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Forms of corporate structures

Functional

structure

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Forms of corporate structures

Product structur

e

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Forms of corporate structures

Mixed structur

e

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Forms of corporate structures

Matrix structur

e

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Recent forms of organizational structureNetwork structure A network of company units which has a horizontal system of communication

Responsibility is dispersed to local subsidiaries

Facilitates cross-cultural transfer of knowledge and organizational learning

Facilitates organizational learning.

E.g. Coffee Beans

Recent forms of organizational structure

Transnational structure

• a multi-faceted organization which can respond to international, multinational and global environment

• dispersed, interdependent, and specialized• its national units make differentiated contributions to integrated

worldwide operations• its knowledge is developed jointly and shared worldwide.• Examples of transnational companies? GM & Ford

Impact of cultural diversity

STRUCTURE

• Domestic: services or products offered only in the domestic market

• Multidomestic: Autonomous sub-units situation in several countries

• Multinational: Diversity is inherent through geographical spread

• Transnational: generates its own evolution: heterogeneity indispensable.

CULTURAL DIVERSITY• no impact on the organization

• Strongly affects relations external to the organization (clients & employees)

• Can cause problems, but can also benefit organization

• allows mutually beneficial relations to be created

Deal & Kennedy (2000) are among the first to examine in details the phenomenon of corporate culture

They present a classification of types of corporate culture using two factors:

Identifying Corporate Cultures

The Business environment in which the company operates as a considerable

influence on the culture of the company

How much risk is involved in the firm’s activities?

How much time is needed before a company & its employees know how successful their decisions or strategies have been (feedback)?

Artifacts

• Everything which is visible within the Organization.

Espoused Value

• Strategies , Objectives & philosophies of organization.

Shared tacit assumption

• Thought & perception driving the overt behavior.

Level Of Corporate Culture

Categories of Culture…..Example Description Type

• Police• Hospitals• Cosmetics

Lots of risk-taking , Quick feedback Emphasis on youth and speed. Quick decisions needed , even if not always right.

The Tough Guy , Macho Culture

• Company Sales Dept.

Fun and action with Quick feedback . Low-risk activities (strict control system preventing

major risks). Consumers very important.

Work Hard / Play Hard Culture

• Exploration Companies (Oil)

High risk , Slow feedback . Years before pay-off or failure. Much discussion to ensure the right decision is

taken.

Bet Your Company Culture

• Banks• Insurance• Pharmaceutical

Low-risk activities with little feedback . Focus on how things are done rather than what

needs to be achieved.

Process Culture

Stereotyping corporate culture“ Trompenaars & Woolliams, 2003 based on Organization Relationships”

- Self-realization.

- commitment to oneself

& professional recognition.

- Task-oriented , focus on power of

knowledge / expertise.

- Commitment to tasks ,

pay for performanc

e.- Power-oriented

with stress on personal relationship

s & entreprene

urial character

- Role-oriented

with power attached to the position

or role.

Incubator

Guided

Missile

High Formalization

Hig

h C

entralizatio

nL

ow

C

entr

aliz

atio

n

Low Formalization

FamilyEiffel Tower

What are the corporate values?

“The basic concepts & beliefs of an organization” (Deal & Kennedy) .

Form the very basis of corporate culture. Give direction and guidelines for day-to-day behaviour . Lack of concern for these values can undermine leadership

and commitment . Values are an indispensable guide for making day-to-day

choices.

Relationship between Organizational Structure & Culture

Organizational structure is a mechanism through which effort and work is coordinated with supervision to produce the results that are hoped for from organizational culture.

The structure seems to be the channels or lines of authority, the system set into place through which individuals can come together to fulfill the expectations of organizational culture.

What is the most important aspect of the relationship?

To make sure that each individual understands the full extent of responsibilities and work expected out of them.

THE BOTTOM LINEA strong culture is more likely

to have a strong and efficient organizational structure. A weak culture is more likely to have a weak and less efficient organizational structure.

Mr Takahashi and the perfumeLekan; a large wholesaler specializing in interior furnishings,

needed to boost its sales, Its domestic market was stagnant and, its export sales, although increasing gradually, were not delivering the anticipated volume: The company desperately, needed to make a large deal, preferably in the expanding Asian market.

After Intensive efforts by its marketing department, Lekan was eventually contacted by a Japanese company, Ligato, which was interested in purchasing floor coverings. The two companies met on several occasions in Tokyo and a large deal was finally made. A dinner was arranged to celebrate the successful conclusion of business.

Mr Roberts, the senior sales manager who had headed the Lekan team of negotiators had brought along gifts for Mr Takahashi, his Japanese counterpart. With heartfelt expressions of gratitude, Mr Roberts handed ever a bottle of 25-year-old malt whisky and then Chanel perfume which, he said, was intended for Mrs Takahashi. Mr Takahashi did his best to conceal his anger and disappointment. He left the celebrations, however, without signing the contract.

Why did Mr Takahashi react the way he did?

Leadership is

Process whereby an individual

influences a group of

individuals to achieve a

common goal

Leader’s Role

- Decide what is important

- Set Examples for reactions

- Assign priorities for resource allocation

- Reinforce values that must be followed

- Set Criteria to allocate rewards

- Set Guidelines for recruitment, promotion

& dismissal

Scientific Leadership

BureaucraticOrganization

Defined Responsibilitie

s

Hierarchy of

Authority

Control Centrali

zed

•   Female EntrepreneursEmphasizes that a leader must

have a certain set of traits to be

viewed as an effective leader

Leadership Traits ApproachHigh Intelligence

Considerable Verbal Fluency

Overall Knowledge

Energetic

Ambitious

Persistence

Theories X Vs. Theories Y (McGregor)

The Contingency Theory

•The degree of confidence, trust and respect

Leader-member

relationship

•The extent to which goals, procedure and guidelines need to be spelled out to the workers

Task Structure

•The extent to which the leader or the group holds the power

Position Power

“A Leader Is Best When People Barely Know He Exists, Not So Good When People Obey

And Acclaim Him, Worse When They DespiseHim. But Of A Good Leader Who Talks Little

When His Work Is Done, His Aim Fulfilled, They

Will Say: We Did It Ourselves”

Collective Leader

• Well known internet entrepreneur

• Age 22• 2004• Youngest recorded billionaire• By 2010, the site had an

estimated 500 million users worldwide

• The Social Network

Mark Zuckerberg

Cultural Contingency Factors

Cultural Attributes & Values can have a big effect

on Styles of LeadershipPower

Evenly Distributed

Wide Variation

Uncertainty

Cultural Contingency Factors

Uncertainty PowerCultures with strong Uncertainty Avoidance prefer to work by the book, to rely on rules, regulations & Instructions.Leaders may need to show direction & make sure that tasks are well-structured.

Cultures where there is large Power Distance, an Ideal Leader may be expected to display great authority to the benefits of those being Led.

Charismatic / Value Based Leadership

Ability to inspire, motivate and to expect high performance outcomes from others

Participative Leadership

Degree to which managers involve others in making & implementing Decisions.

Humane Oriented Leadership

Supportive & Considerate Leadership but also includes compassion & generosity.

Autonomous Leadership Independent & Individualistic Leadership.

Self-protective Leadership Ensuring Safety & Security of individuals.

Global Leadership Dimensions

Cultural Dimensions as predictors of Leadership Style

Charismatic/ Value Based Leadership

• Performance Oriented

Team Oriented

Leadership

• In-group collectivism

• Humane Orientation

• Uncertainty Avoidance

Effect of Gender on Universal Attributes of Leadership

Male Female

Less Interpersonal-oriented & more focused on the task.

Stereotype Traits:DecisivenessAggressionIndependence Objectivity

Concentrate on the welfare of others democratic & charismatic

Stereotype Traits: WarmSensitiveconsiderate expressive

Gender VS Job Performance

Series of Transactions with subordinates whereby rewards were given for satisfactory performance and punishments given for inadequate performance

Formal, hierarchical position within the company

Getting subordinates to see the bigger picture, to move beyond self-interest and consider the interest of groups as a whole.

Their position in org. & their own character (charisma, interpersonal skills, ability to work hard)

Male Female

The way in which these attributes are expressed in actual behavior can vary considerably from culture to culture.

The differences in leadership style between males and females observed in one country are also seen in other countries, but the ways in which behavior tends to reflect these differences is based more on culture than gender.

Conclusion

• What are the forms of corporate structures, elaborate on the two recent ones?Culture and

Corporate Structure

• Compare and contrast between X and Y leadership theories?

Culture and Leadership

Sahar Al-JoburyMarwa Mohamed

Naglaa AshourYasmin Nafie