ORGANIZATIONAL

CULTURES
AND DIVERSITY
CHAPTER 6
THE NATURE OF ORGANIZATIONAL CULTURE

 According to organizational cultural theorist

Edgar Schein, organizational culture is a pattern
of shared basic assumptions that the group
learned as it solved its problems of external
adaptation and internal integration, and that has
worked well enough to be considered valid and,
therefore, to be taught to new members as the
correct way to perceive, think, and feel in relation
to those problems.
CHARACTERISTICS

1. Observed behavioral regularities, as typified by

common language, terminology, and rituals.
2. Norms, as reflected by things such as the amount
of work to be done and the degree of cooperation
between management and employees.
3. Dominant values that the organization advocates
and expects participants to share, such as high
product and service quality, low absenteeism, and
high efficiency.
4. A philosophy that is set forth in the MNC’s beliefs
regarding how employees and customers should be treated.
5. Rules that dictate the dos and don’ts of employee behavior
relating to areas such as productivity, customer relations,
and intergroup cooperation.
6. Organizational climate, or the overall atmosphere of the
enterprise, as reflected by the way that participants interact
with each other, conduct themselves with customers, and
feel about the way they are treated by higher-level
management.
INTERACTION BETWEEN NATIONAL AND ORGANIZATIONAL
CULTURES

 Table 6–1
 Dimensions of Corporate Culture
FRENCH AND SPANISH
NEGOTIATORS
TABLE 6–2
EUROPEAN MANAGEMENT CHARACTERISTICS
ORGANIZATIONAL CULTURES IN MNCS
Numeroff and Abrahams have suggested that there are four steps that
are critical for international merger and acquisition process:
1. The two groups have to establish the purpose, goal, and focus of
their merger.
2. Then they have to develop mechanisms to identify the most
important organizational structures and management roles.
3. They have to determine who has authority over the resources
needed for getting things done.
4. They have to identify the expectations of all involved parties and
facilitate communication between both departments and
individuals in the structure
DETERMINING MNC CULTURE
There are three aspects of organizational functioning that is
especially important in determining MNC organizational
culture:
 (1) the general relationship between the employees and

their organization;
 (2) the hierarchical system of authority that defines the

roles of managers and subordinates; and

 (3) the general views that employees hold about the

MNC’s purpose, destiny, goals, and their place in them.

TROMPENAARS TWO CONTINUA OF ORGANIZATIONAL
CULTURE

 One distinguishes between equity and hierarchy; the

other examines orientation to the person and the task.
 Along these continua, four different types of
organizational cultures identified :
1. Family culture
2. Eiffel Tower culture,
3. guided missile culture, and
4. Incubator culture.
 Table 6–3
 Summary Characteristics of the Four Corporate
Cultures
MANAGING MULTICULTURALISM AND DIVERSITY

 Phases of Multicultural Development

 Phase 1- Domestic firms

 Phase 2- International firms

 Phase 3- Multinational firms

 Phase 4- Global firms

Figure 6–4
 International Corporation Evolution
 FIGURE 6–5
LOCATIONS OF INTERNATIONAL
CROSS-CULTURAL INTERACTION
TYPES OF MULTICULTURALISM
 Domestic Multiculturalism
 Group Multiculturalism
 1. Homogeneous groups,
 2. Token groups,
 3. Bicultural groups,
 4. Multicultural groups,
POTENTIAL PROBLEMS ASSOCIATED WITH DIVERSITY

 mistrust of others
 preconceived stereotypes
 inaccurate biases
 miscommunication or inaccurate communication
ADVANTAGES OF DIVERSITY
 generation of more and better ideas
 prevent groupthink
 enhances relationships
BUILDING MULTICULTURAL TEAM EFFECTIVENESS

 Understanding the Conditions for

Effectiveness
 Using the Proper Guidelines
 6 guidelines