Organizational culture refers to the shared values and beliefs within an organization that guide employee behavior. There are four main categories of organizational culture: family culture with a strong hierarchy; Eiffel tower culture with emphasis on tasks; guided missile culture prioritizing individuals; and incubator culture focusing on objectives. Managing diversity and multiculturalism is important for international companies. Potential problems include communication issues and lack of trust, while advantages involve increased creativity and avoiding groupthink. Guidelines for building effective multicultural teams focus on overcoming attitudes and perceptions.

1. Ch. 6 – Organizational Cultures and Diversity Jeremy Bourne and Hannah Smith

2. Dedicated to Paul Taylor (What a Bro)

3. Define what is meant by organizational culture and discuss the interaction of national and MNC cultures. Identify the four most common categories of organizational culture. Review the nature and degree of multiculturalism and diversity in today’s MNCs. Discuss common guidelines and principles used in building multicultural effectiveness at team and organizational levels. Objectives

4. Organizational culture – the shared values and beliefs that enable members to understand their roles and the norms of the organization. Characteristics: (not an all-inclusive list) Observed behavioral regularities Norms Dominant values MNC philosophy Rules Organizational climate Organizational Culture

5. 1. 2. 3. 4. 5. 6. 7. What Characteristics do you look for in an organization?

6. National cultural values have a significant impact on organizational performance. Cultural values employees bring to the workplace with them are not easily changed by the organization. “Far from reducing national differences, organizational culture maintains and enhances them.” - National and Organizational Cultures

7. Some researchers have found that when Germans work for a US MNC, they become even more German, and when Americans work for a German MNC, they become even more American. Why would this knowledge be important to these MNCs? Discussion

8. Hofstede’s Dimensions of Corporate Culture

9. Differences in European Management Characteristics It can be difficult to do business with two or more of these groups. Ex: Pg. 163 – French and Spanish negotiators Differences in culture can reduce the ability of units to work well together. An organization really needs to know national and organizational cultures when breaking into foreign markets. Cultural differences should be discussed, and activities carefully coordinated.

10. Family Culture Eiffel Tower Culture Guided Missile Culture Incubator Culture Four Types of CultureBased on Dimension of Equity and Task

11. Organizational Cultures According to Trompenaars

13. Family types environment that is power-oriented and headed by leader who is regarded as a caring parent.

14. Organization personnel respect the individuals who are in charge

15. Foreign to most managers in the in the United States, who believe in

17. Characterized by strong emphasis on equality in the workplace and orientation to the task Teams or project groups are prevalent Formal hierarchy are given low priority and a great focus on individual expertise. Motivation is more intrinsic than just concern for money and benefits. Guided Missile Culture

18. Strong emphasis on equality and personal orientation Organizations are secondary to the fulfillment of the individuals within them. Creates environments where participants thrive on an intense, emotional commitment to the nature of the work All participants are working toward the same objective Incubator Culture

19. In which of the four types of organizational cultures (family, Eiffel Tower, guided missile, incubator) would most people in the US feel comfortable? In which would most Japanese feel comfortable? Based on your answer, what conclusions could you draw regarding the importance of understanding organizational culture for international management? What kind of culture did you choose? Discussion

20. Countries plotted on chart

21. Table 6-3

22. What Type of Culture is this? Google Company Information

23. Southwest Company Website What Culture is This?

24. SouthWestCompany Culture Click Southwest Logo to Watch a Video

25. Success in the international arena often is greatly determined by an MNC’s ability to manage multiculturalism and diversity. Evolution of International Companies – Domestic, International, Multinational, Global Multiculturalism and Diversity

26. Domestic – culturally distinct population within an organization within the same country. (New York, Miami, San Francisco, etc.) Group – Homogeneous groups – members have similar backgrounds and generally perceive, interpret, and evaluate events in similar ways. Token groups – all members but one have the same background. Bicultural groups – two or more members represent each of two distinct cultures. Multicultural groups – three or more different ethnic backgrounds within the group. Types of Multiculturalism

27. Most MNCs need not enter foreign markets to face that challenge of dealing with multiculturalism. Do you agree or disagree with this statement? Explain your answer. “Lack of diversity in corporate America.” Discussion

28. What Do you ThinkOf Diversity?

29. Attitudinal - mistrust of others Perceptual – preconceived stereotypes Inaccurate communications – different word meanings, misinterpreted nonverbal communication, different perceptions of time Potential Problems with Diversity

30. Enhance creativity Better ideas Better decisions – prevent groupthink (social conformity and pressures on individual members of a group to conform and reach consensus) More effective and productive performance – connect with customers from different cultures Advantages of Diversity

31. Effectiveness of Diversity Displayed Diagrammatically

32. What are some potential problems that must be overcome when using multicultural, diverse teams in today’s organizations? What are some recognized advantages? Identify and discuss two of each. Discussion

33. Questions: What do you think some of the main organizational culture differences between the two companies would be? Why might the cultural diversity in the Spanish firm not be as great as that in the US firm, and what potential problems could this create? What would you recommend be done to effectively merge the two cultures and ensure they cooperate harmoniously? Offer some specific recommendations. Case Study, pg. 183:“A Good-Faith Effort Is Needed”