Chapter-OrganizationalCulturesandDiversity.ppt

Chapter 3-Organizational Cultures and Diversity Chapter 3(1): Organisational Culture, Diversity Multiculturalism Chapter 3(2): Organisational Culture Chapter 3(3): Diversity Chapter 3(1): Organisational Culture, Diversity Multiculturalism Acknowledging Culture Cultural diversity can exist on a national and cross-national level Often, managers assume that culture does not play an important role in shaping practices = Universalistic approach: ‘if it works here, it will work there’ Such approach contributed to high failure rates in expatriate missions and international mergers In order to manage cross-cultural differences, managers need to acknowledge and understand them Diversity-Related Problems Increased ambiguity Increased complexity and confusion Difficulty to converge meanings and Miscommunication Lower cohesiveness Harder to reach agreement Harder to make decisions and agree on specific actions Diversity-Related Advantages Expanding meanings and Broader cognitive frame resources Multiple perspectives Multiple interpretations Richer alternatives more ideas Increased creativity and problem solving skills Increased flexibility Diversity and Types of Organizations Organizational culture affects the acceptance and impact of diversity in organizations Parochial: Our is the only way Ethnocentric: Our way is best Pluralistic (synergetic): The best is combining our ways and their ways In large companies, different divisions may have different sub-cultures The more complex, unpredictable and global is the business environment of a company, the more competitive advantages cultural diversity has. Nature of Organizational Culture Organizational culture Pattern of basic assumptions that are developed by a group as it learns to cope with problems of external adaptation and internal integration and that are taught to new members as the correct way to perceive, think, and feel in relation to these problems An MNC’s organizational culture in one country’s facility may diff