Organisational Culture - MGMT 100

Week on Culture & International: Organisational Culture

• Overview of Organisational Culture

  • Definition: A system of shared beliefs, values, and norms that develops within an organization, guiding members' behaviors.

  • It can be described as "the way we do things around here."

• Importance of Culture

  • Organizations are social entities made up of individuals working toward a common purpose, thereby exhibiting social characteristics, including culture.

• Characteristics of Strong Cultures

  • Clear and well-defined principles, values, and norms.

  • Norms represent standards of conduct guiding behaviors.

  • Commitment to organizational best interests, reinforcing positive habits.

• Levels of Organisational Culture

  • 1. Visible (Observable) Culture

  • Observable aspects of culture, such as:

    • Artefacts: Physical items (e.g., dress, office layout, symbols, slogans, ceremonies).

  • Examples: The layout of the office, the dress code.

  • 2. Invisible (Core) Culture

  • Core values and beliefs affecting behavior:

    • Deeper values are shared understandings among members (e.g., caring like a family).

• Ways to Build Organisational Culture

  • Observable Culture

  • Stories: Narratives that convey core values.

  • Rites and Rituals: Events that display and celebrate core values.

  • Core Culture:

    • Core Values: Fundamental beliefs about right behaviors.

    • Heroes: Influential people (past/present) embodying the organization’s values.

    • Symbols: Objects or language that represent values (e.g., logos, jargon, dress codes).

• Details of Cultural Elements

  • Symbols: Convey meaning about interactions (e.g., dress code, logo).

  • Stories: Repeated narratives that illustrate and reinforce vision/values (e.g., cases of heroes, achievements, mistakes).

  • Heroes: Exemplary figures representing organizational character, serving as role models.

  • Rites and Rituals: Planned activities to exemplify values, bond members (e.g., awards, social gatherings).

• Cultural Leadership

  • Role of Symbolic Leaders:

  • Utilize symbols to influence culture.

  • Articulate a relatable vision for employees.

  • Consistent actions that reflect cultural values ("walk the talk").

• Take home messages

  • Understanding and fostering a strong organizational culture contributes to operational success and employee satisfaction.

  • Cultural leadership is critical in influencing and nurturing a productive organizational culture.

• Defined as the trading of goods, services, technology, capital, and knowledge across international borders at a global or transnational scale.

• Economic Transactions Include:

  • Capital, skills, and personnel

  • International production of physical goods and services (e.g., finance, banking, insurance, construction)

International Management

• Focuses on managing organizations that operate in multiple countries.

• Requirements for global managers:

  • Awareness of international developments

  • Transnational approach

  • Cultural competence

  • Understanding of regional developments

Multinational Corporations (MNCs)

• MNC: A corporation with extensive operations in more than one foreign country.

• Characteristic features:

  • Usually has a corporate headquarters in one country

  • Examples include transnational corporations (no one national home) and virtual companies like Microsoft and Facebook.

Ethical Issues for MNCs

• Corruption: Engaging in illegal and unethical practices (e.g., bribery).

• Labor Practices: Usage of sweatshops and child labor, with examples such as Nike changing its policies.

• Sustainability: Concerns over pollution and depletion of resources affecting future generations.

Culture and Global Diversity

• Managing practices vary across cultures. Challenges include:

  • Ethnocentrism: Viewing one's own culture as superior.

  • Cultural Shock: Confusion experienced in unfamiliar cultures.

Hofstede’s Model of National Culture

• Developed through research in the 1960s and 70s.

• Five Dimensions of culture:

  1. Individualism vs. Collectivism: Value placed on self vs. group.

  2. Power Distance: Acceptance of unequal distribution of power.

  3. Achievement vs. Nurturing: Focus on quality of life vs. accomplishments.

  4. Uncertainty Avoidance: Tolerance for ambiguity and uncertainty.

  5. Time Orientation: Preference for short-term vs. long-term planning.

Application to Bi-Cultural Aotearoa NZ

Te Ao Māori (Māori Worldview)

• Values balanced relationships and interconnectedness inherent to whānau (family) and iwi (tribe).

• Promotes long-term thinking reflected in traditions of whakapapa (genealogy).

  • Core Values:

  • Mana: Authority and spiritual power.

  • Rangatiratanga: Leadership based on descent.

  • Kaitiakitanga: Sustainable stewardship of resources.

Hofstede’s Dimensions in Māori Context:

• Collectivism vs. Individualism: High emphasis on obligations to community.

• Long-term Orientation: Deep respect for ancestry and future generations (e.g., the saying "Mō tātou, ā, mō kā uri ā muri ake nei").

• Uncertainty Avoidance: Acceptance of fate influenced by ancestral connections.

Implications for Management

• Management practices effective in one culture may not work in another.

• Sensitivity to value systems and norms is crucial in multicultural environments.

• A diverse management team can strengthen a company operating globally.

Takeaway Messages

/

• Embrace cultural differences in management styles.

• Recognize the significance of ethical responsibilities in international operations.