-RAVITHEJA OLETY

Culture & Organisation

Introduction

1. Culture is learned, not inherited. It derives from one's social environment.

2. Historical perspective by Max Weber on German, French and American.

3. Culture operates an organization and organization features operates the structure, it is recognizable nationally. Structure can be basically classified as:

Mechanistic ~ favours more centralized. Organic ~ decentralized.

Hofstede’s FindingsDimensions of culture• Power distance: -more levels of hierarchy and centralized decision making when power distance is high. -Countries such as Malaysia, Panama, Philippines rank high in terms of high power distance. • Individualism: - Consensus and Cooperation has less value. - It doesn’t contribute to improvise group culture. -USA, Australia, Britain are top 3 places under

individualism.

Dimensions Continued…• Masculinity: -Nurturing social relationships.

- Ensures bottom line profits to satisfy share holders and set targets.

- Japan, Australia & Venezuela rank high.

• Uncertainty Avoidance: - Written rules and procedures - Planning, organizing, coordinating and controlling. - Greece and Finland stands on top.

Hofstead’s map

From the graph-

In quadrant 1, high hierarchy- centralized but less formalized, uncertainty avoidance is low, most of them are Asian countries.

In quadrant 2, less formalized, less hierarchy and decentralized. Nordic and Anglo countries stands here.

In quadrant 3, high formalized, less hierarchy and decisions are decentralized also known as “Germanic cluster”.

In quadrant 4, companies tend to be mechanistic with high centralization and formalization, most of them are Latin countries.

Laurent’s ConceptsPolitical system- Managers play vital role.

- Power is more prioritized than attaining specific objectives.

- Latin European managers are more inclined towards power in order to get job done in the organizations.

- Nordic and Anglo managers oppose such type of system.

Role Formalization- Detailed, well-

defined roles and functions.

- Clarify complex situations and tasks.

- Nordic and Anglo managers argue that defining roles and functions is harder in this complex world.

- Interferes with maintaining flexibility and achieving coordination.

Management types..Viking Management• Decentralized• Avoids conflict• Coordinated by values not

rules• Goal formulation, long

range objectives.

Brazilian Management• Centralized decision

making.• Personal relationships are

prioritized.• Short term oriented• Flexible and adaptable.

Indonesian Management• Family oriented• Friendly and helpful.• Tolerant• Decisions based on

compromise.

Laurent findings.. French and German are resistance to matrix

structures and violated the principle of “unity of command”.

Management in Europe reject team approaches. Companies in Singapore, Hong Kong, Japan

have performed well in industries such as banking and has hierarchy remaining firmly in a place.

“Confucian dynamism” by “Five Asian Dragons”: China, Hong Kong, Taiwan, Japan, South Korea transplanted their culture of hard work, thrift and respect for one’s social network for fast changing markets.

Best Practices Companies must inculcate participative

management. They must get adapted easily to foreign

systems whenever necessary, to succeed. Facilitating and developing must be improvised

rather than directing and controlling. Instead of being more authoritative like a ‘boss’,

the model of being a ‘coach’ scores more.

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