ORGANISATIONAL CULTURES & DIVERSITY

Dr.Sekhar Chattopadhyay
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Characteristics of Organizational Culture

Observed behavioral regularities Philosophy on treatment of employees/ customers Rules of employee behavior

Norms

Organizational Culture

Dominant values

Organizational climate

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Types of Organizational Cultures:

Family Eiffel Tower Guided Missile Incubator
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Equity

Fulfillment-oriented Project-oriented culture culture INCUBATOR GUIDED MISSILE

Person Emphasis
Task Emphasis

FAMILY Power-oriented culture

EIFFEL TOWER Rule-oriented culture

Hierarchy
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Family Culture
Strong emphasis on the hierarchy and orientation to the person

Leader is regarded as a caring parent who knows whats best for personnel Leader uses intuitive rather than rational knowledge Leader is motivated by praise rather than money Characterized by traditions, customs, and associations that bind together the personnel and make it difficult for outsiders to become members

Eiffel Tower Culture

Strong emphasis on the hierarchy and orientation to the task -- impersonal and efficient

Jobs are well defined Employees know what they are supposed to do Everything is coordinated from the top (hierarchy structure) Person holding top position could be replaced at any time without having an effect on the work being done

Guided Missile Culture

Strong emphasis on equality in the work place and orientation to the task

Teams and project groups are common Problem centered Focus on work, all committed to goal all team members equal Do whatever it takes to get the job done attitude Individual expertise is important 360-degree feedback systems are common Change comes quickly

Incubator Culture
Strong emphasis on equality and personal orientation

Organizations are the self-expression and fulfillment of individuals Little formal structure, creative work teams Intense emotional commitment to work All are co-creators, work 70 hr work weeks and love it Change is fast and spontaneous Leadership is achieved, not gained by position
Entrepreneurial companies

Managing Multiculturalism and Diversity

Phases

of Multicultural Development
Phase I - Domestic corporations Phase II - International corporations Phase III - Multinational corporations

Phase IV - Global corporations

Phases of Multicultural Development

Phase I Characteristics/ (Domestic Corporations) Activities
Primary orientation
Competitive strategy Importance of world business

Phase II (International Corporations)

Market
Multidomestic Important

Phase III (Multinational Corporations)

Price
Multinational Extremely important

Phase IV (Global Corporations)

Strategy
Global Dominant

Product/service
Domestic Marginal

Product/service

New, unique

More standardized
Few Large, multidomestic Domestic and primary markets

Completely standardized (commodity)

Many Larger, multinational Multinational, least cost

Mass-customized

Competitors Market Production location

None Small, domestic Domestic

Significant (few or many) Largest, global Imports and exports

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Managing Multiculturalism and Diversity Types of Multiculturalism

Domestic vs Group Multiculturalism
Homogeneous groups Bicultural groups Token groups Multicultural groups

Potential Problems Associated with Diversity

Lack of cohesion Mistrust of others Perceptions and preconceived stereotypes Miscommunication, attitudes and biases

Multicultural teams are potentially very effective or very ineffective

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Advantages of Diversity
Creativity
Generation of more and better ideas Prevents groupthink Culturally diverse groups can enhance creativity, lead to better decisions, and result in more effective and productive performance

Understanding the Conditions for Effectiveness

More effective when facing tasks requiring innovativeness

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Highly ineffective

Average effectiveness

Highly effective

Building Multicultural Team Effectiveness

Using the Proper Guidelines

Members must be selected for their task-related abilities Members must recognize and be able to deal with differences Leader must help group to identify its overall goal Members must have equal power and respect each other Managers must provide positive feedback to the team
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