Transcript Chap12.ppt
Part Two: Culture and organizations CHAPTER 12 CULTURAL DIVERSITY IN ORGANIZATIONS • Concept 12.1: Cultural competence in transnational organizations Slide 12.1 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Management of cultural differences • Globalization of companies seems to be: - linked to cultural diversity of organizations - connected to internationalization of organizations • Effects of the globalization process on managerial functions • The way executives conceive the interaction between different cultures • Strategy of proclamation or strategy of learning? Slide 12.2 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Management culture There are three types in multinationals: • Dominant management culture – a copy of the multinational’s home country • Dominant transnational management culture – created by the mother’s company • Minimum management culture – leaving room for national culture Two Roles: Integrating & adapting Slide 12.3 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Transnational company • ‘Transnational’ combines the abilities: - flexibility, efficiency, transfer of expertise • of a - multinational, global, international firm • Role of top management is to: - Create a common vision - Shared set of values to reflect managers’ goals Slide 12.4 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 What is diversity? • Notion of diversity • Individual characteristics • Characteristics of an individual such as: - Work background - Geographical situation - Education • In the business life managers see their employees: - As individuals - With the characteristics of a specific group Slide 12.5 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Diversity and transnational organization • Managers perceive diversity as a source of both problems and advantages • Problems caused by cultural diversity - communication and integration-esp when employees required to think & act in the same way. - practices adopted by the organization across the board-eg same mrktg campaign • Diversity among employees : - may cause misunderstandings - obstruct team work and productivity Slide 12.6 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Advantages of cultural diversity • Multinationals are described as being - More flexible - Open to new ideas - More aware of consumers needs • Diversity is considered an advantage when the concern needs to: - Reposition itself - Generate ideas - Develop projects - Open itself to fresh perspectives Alder (2002) Slide 12.7 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Intercultural management • To act effectively at international level: • Management which adapts its way of communicating, negotiating and leading to the cultural context of the country in question. • What is needed? – Dos and don’ts are not the answer – Nor is providing instruments for ‘cracking’ cultural codes • Applying a global approach across the board or a country-by-country approach • Involving manager-shd be aware of their oe cultural preferences. Look for working strategies adaptable to another cuture. Slide 12.8 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Transcultural competence Ability to bridge the differences between the native and destination culture • Developing the propensity to reconcile seemingly opposing values • Some cultures start from their own orientation & accommodate the opposing dimension in reconciliation • At the heart of transcultural competence: principle of reconciliation (Trompenaars & Williams, 2000) • Acquiring a transcultural competence. Success: peer feedback on bus performance-degree of success achieved abroad. Experience on international assignments & working with diversity Slide 12.9 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 What is competence? Figure II.1 What is competence? Figure based on the concept developed by Le Boterf (1994) Slide 12.10 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Competence • Competence cannot be defined as the capacity to solve a problem. • Competence involved a full range of resources: - Knowledge, skills, cognitive abilities • Key to competence: - ability to integrate these resources - through the channel of communication and human interaction Slide 12.11 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 How to acquire transcultural competence? • Development of cognitive abilities (memory) • Integration of knowledge and know-how in a particular situation - Knowledge (database of cases) - Know-how (identification of a problem) Goal of a transnational manager • Appropriate attitude in a specific situation • Building up a ‘memory’ of case-studies/ critical incidents Slide 12.12 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Conclusion to Chapter 12 • Internationalization has reinforced cultural diversity • Management can use the intercultural situations within/outside the companies • Managers need to acquire tools and working methods • They have to develop competence in a crosscultural context • Intercultural competence is everyone’s business Slide 12.13 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009