Organizational culture. Andrea Martone
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1 Organizational culture Andrea Martone 1
2 Introduction The Merchant has no Country. Three ambiguous considerations: Thomas Jefferson Does the money and profit culture trascend the national and regional borders? Is the language of profit as the final result recognized all around the world? Is a good affair always the same in New York, in Beijing, in Rome? 2
3 What s the culture? The culture is a set of behaviour models, explicit and implicit, acquired and conveyed by symbols, which formed the distinguishing results of the different human groups and which includes their incorporation in artefacts; The essential concept consists of the set of the traditional ideas (i.e., derived by personal and social history) and in particular in values connected to them. The cultural system can be considered, on one hand, as the result of the actions, and on the other hand, as the influencing element of the future actions. Alfred Louis Kroeber and Clyde Kluckholn 3
4 Definition of culture A shared mental model or a world map; A congruent system of creeds, values, strategies and cultural background; Each aspect is linked to the others, within a system, which forms a unique context, which identifies a person and his culture 4
5 Importance of the definition of a culture It isn t an academic exercise It defines how the business is perceived and acquired 5
6 The organizational culture functions Organizational identity Means for the meaning construction Organizational culture Collective committment Stability of the social system 6
7 Organizational culture Ideologies; Myths; Languages; Symbols; Habits and cerimonies. 7
8 Organizational culture and Country-culture 8
9 Country-culture Two base levels OUTWARD Behaviours Products Languages, gestures, behaviours, habits literature, folklore art, music, artefacts INWARD Ideas Values, institutions, beliefs 9
10 Iceberg model Orientative Value 10
11 OUTWARD LEVEL 11
12 Country-Culture The shows of the inward level: Structure Time perception Space distance 12
13 Structures Complex First, defining a level of social trust Relationship and good will are promoted An agreement based on trust is set Slow and ritualistic negotiations Linear First of all: affairs Experience and results are promoted An agreement based on a binding legally contract Effectiveness negotiations 13
14 Linear and complex structures 14
15 Time perception Monochronic Orientatation towards doing things one at a time because time is limited, divided in precise parts and regulated by timetibles Polichronic Orientation towards doing many thing at a time because time is flexible and multidimensional 15
16 Space distance 1. Inner area 2. Personal area 3. Social area 4. Space area Pag
17 INNER LEVEL 17
18 CULTURAL DIFFERENCES IN MANAGEMENT fstede, 1989) There are 4 dimensions from which it is possible to design an distinctive outline of the cultural differences and, consequently, of the different managerial practises, that exist among the nations HIERARCHY DISTANCE UNCERTAINTY CONTROL INDIVIDUALISM MASCULINITY LONG TERM ORIENTATION INDULGENCE 18
19 Hofstede s cultural dimensions Long-term vs. short-term orientation. Long-term emphasizes practice and practical value. Short-term focus their content on truth and the certainty of beliefs. Femininity vs. masculinity. cooperation vs competition, but also gender roles,: high-femininity countries blur the lines between gender roles, while high-masculinity countries display traditional role expectations. Hhigh-masculinity: Japan, Low-masculinity: Sweden. Power-distance. differences in people accept or expect access to power. A a high power-distance country, like Malaysia, displays customers and average citizens less prominently. Authority roles are enforced by such images as official certification logos. A low power-distance country would emphasize equality among social and age groupings.
20 Collectivism vs. individualism. Collectivism: people integrated into strong groups that protect them in exchange for unbridled loyalty. Individualism: a person s strong sense of self and that of his or her immediate blood relations. A collectivist country would show groups of people in images, Individualistic countries would most likely find site content and images with a single person accomplishing a challenge more appealing. The United States is an example of an individualistic country. Uncertainty avoidance. Tolerance for ambiguity. High uncertainty-avoidance countries would respond better to a simple manner of navigation. A low uncertainty-avoidance country would prefere a site with complex navigation with a multitude of link choices. An example of a high uncertainty-avoidance country would be Belgium; a low uncertainty-avoidance country would be Singapore
21 POWER DISTANCE INDEX (PDI) That is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Power and inequality are extremely fundamental facts of any society and anybody with some international experience will be aware that all societies are unequal, but some are more unequal than others.
22 MASCULINITY (MAS) versus its opposite, femininity, refers to the distribution of roles between the genders Masculinity stands for a society in which social gender roles are clearly distinct: Men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life. (Hofstede, 2001) Women's values differ less among societies than men's values;.
23 23
24 INDIVIDUALISM (IDV) Individualism versus its opposite, collectivism, that is the degree to which individuals are integrated into groups. On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty.
25 NDIVIDUALISM
26 UNCERTAINTY AVOIDANCE INDEX (UAI) It indicates if people feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, The uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible. People within these cultures are more phlegmatic and contemplative.
27 UNCERTAINTY AVOIDANCE INDEX (UAI)
28 Europe
29 LONG-TERM ORIENTATION (LTO) Versus short-term orientation. It can be said to deal with Virtue regardless of Truth. This fifth dimension was found in a study, using a questionnaire designed by Chinese scholars Values associated with Long Term Orientation are thrift and perseverance; Values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's face. The values of this dimension are found in the teachings of Confucius, however, the dimension also applies to countries without a Confucian heritage.
30 Long term orientation 30
31 INDULGENCE VS RESTRAIN (IDL) INDULGENCE: "Stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun". RESTRAINT: "Stands for a society that supresses gratification of needs and regulates it by mean of strict social norms".
32 INDULGENCE
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