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Group 1
What is Cross-Cultural Context ? Cross Cultural Communication in an
organization deals with understanding different business Customs , beliefs and communication Strategies
It becomes Strategically important due to the Impact of globalization in business
ORIGIN OF CROSS CULTURE During the Cold war, the economy of the United States was largely
self-contained because the world was polarized into two separate and competing powers: the East and the West
Business transformed from individual-country capitalism to Global Capitalism
Thus, the study of cross-cultural communication was originally found within businesses and government, both seeking to expand globally
They began to offer language training to their employees and and also to train employees to understand how to act in abroad
With this also came the development of the Foreign Service Institute or FSI, through the where government employees received trainings and prepared for overseas posts
ASPECTS OF CROSS CULTURE There are several parameters that may be
perceived differently by people of different cultures :
High Context Vs Low Context Cultures Non Verbal , Oral & Written Emblems Illustrators Regulators
High Vs Low Context Culture The concept of high- and low-context
culture relates to how an employee's thoughts, opinions, feelings and upbringing affect how they act within a given culture
NON VERBAL COMMUNICATION Gestures and eye contact are two areas
of nonverbal communication that are utilized differently across cultures
For eg : American workers tend to wave their hand and use a finger to point when giving nonverbal direction. Extreme gesturing is considered rude in some cultures. While pointing may be considered appropriate in some contexts in the United States, Japanese would never use a finger to point towards another person because that gesture is considered rude in Japan
LANGUAGE DIFFRENCES Linguistic differences between the employees
or with the management plays a vital role with companies which compete globally
Certain norms are followed by the organisation , when there is communication between the native employees and the Foreign Clients in order to bring out rapport between them
POWER DISTANCE Power Distance relates to how power is
distributed within the organization Typically , American Companies utilize a low
power distance and have more informal hierarchies that allow for interaction between subordinates and executives
Companies with high power distance are very hierarchal in nature and have severe differences in authority
Japanese companies use different power structure when compared to the American Companies
General Cross Culture Aspects Age Gender Country Values Ethnicity Customs
Leadership and Culture
Strategic Leadership: Embracing Change Telecommunications, computers, the
Internet, and one global marketplace have increased the pace of change exponentially during the past 10 years
The leadership challenge is to galvanize commitment among people within an organization as well as stakeholders outside the organization to embrace change and implement strategies intended to position the organization to succeed in a vastly different future
Clarifying Strategic Intent Leaders help their company embrace change
by setting for their strategic intent—a clear sense of where they want to lead the company and what results they expect to achieve
Leader’s vision—an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership
Make clear the performance expectations a leader has for the organization, and managers in it, as they seek to move toward that vision
Building an Organization1. Education and leadership development
is the effort to familiarize future leaders with the skills important to the company and to develop exceptional leaders among the managers you employ
2. Perseverance is the capacity to see a commitment through to completion long after most people would have stopped trying
3. Principles are your fundamental personal standards that guide your sense of honesty, integrity, and ethical behavior
Shaping Organizational Culture Passion, in a leadership sense, is a highly
motivated sense of commitment to what you do and want to do
Leaders also use reward systems, symbols, and structure among other means to shape the organization’s culture
Leaders look to managers they need to execute strategy as another source of leadership to accept risk and cope with the complexity that change brings about
Recruiting and Developing Talented Operational Leadership
New leaders will each be global managers, change agents, strategists, motivators, strategic decision makers, innovators, and collaborators if the business is to survive and prosper
Today’s need for fluid, learning organizations capable of rapid response, sharing, and cross-cultural synergy place incredible demands on young managers to bring important competencies to the organization
Ex. 12.5 What Competencies Should Managers Possess?
Sources of Power and InfluenceOrganizational
Power Position power Reward power Information power Punitive power
Personal Influence Expert influence Referent influence Peer influence
Ex. 12.6 Management Processes and Levels of Management
Organizational Culture Organizational culture is the set of
important assumptions (often unstated) that members of an organization share in common
Every organization has its own culture Assumptions become shared
assumptions through internalization among an organization’s individual members
The Role of the Organizational Leader The leader is the standard bearer, the
personification, the ongoing embodiment of the culture, or the new example of what it should become
How the leader behaves and emphasizes those aspects of being a leader become what all the organization sees are “the important things to do and value.”
Build Time in the Organization Some leaders have been with the
organization for a long time
Many leaders in recent years, and inevitably in any organization, are new to the top post of the organization
In the other situation, a new leader who is not an “initiated” member of the culture faces a much more challenging task
Ethics Ethical standards are a person’s basis for
differentiating right from wrong The culture of an organization, and
particularly the link between the leader and the culture’s very nature, is inextricably tied to the ethical standards of behavior, actions, decisions, and norms that leader personifies
Shaping Organizational Culture Emphasize key themes or dominant values Encourage dissemination of stories and legends
about core values Institutionalize practices that systematically
reinforce desired beliefs and values Adapt some very common themes in their own
unique ways Manage organizational culture in a global
organization: Social norms Values and attitudes Religion Education
Ex. 12.9 Managing the Strategy-Culture Relationship
Manage the Strategy-Culture Relationship
Link to mission
Maximize synergy
Manage around the culture
Reformulate strategy or culture
Organizational Structure and Culture
Organizational Structure and Culture
OrganizationalStructure
OrganizationalCulture
The formal system of work roles andauthority relationships that govern
how associates and managersinteract with one another.
Involves the values and normsshared by managers and associates
that influence behavior. It is apowerful force in organizations.
Fundamental Elements of Organizational Structure
Structural Characteristics
Structuring Characteristics
Hierarchy
Structural Characteristics
Span of Control
HeightDepartmentation
Functional Organization
VPResearch andDevelopment
VPResearch andDevelopment
VPOperations
VPHuman
Resources
VPFinance
VPMarketing
CEO
Divisional OrganizationCEO
Head of Operations
Head of R&D
Head of Human
Resources
Head of Finance
Head of Marketing
V.P. Product/Service
Area 1
Head of Operations
Head of R&D
Head of Human
Resources
Head of Finance
Head of Marketing
V.P. Product/Service
Area 1
Head of Operations
Head of R&D
Head of Human
Resources
Head of Finance
Head of Marketing
V.P. Product/Service
Area 1
Structuring Characteristics
Centralization Standardization
Formalization Specialization
FreedomSubstantial freedom may exist, but1. Freedom is not unlimited2. Alternative mechanisms are used to ensure that
individuals are working for the good of the organization
3. Values are shared4. Reward systems are used to promote appropriate
behavior
Factors Affecting Structure
CorporateStrategy Growth
Diversification
Developing Organizational Culture
Organizational Culture
NormsReinforcing Outcomes
Shared Values
Individual and Group Behavior
Organizational Culture
EffectivenessCohesion and Morale
LeadershipMentors and Coaches
Clan
EffectivenessCreativity and Innovation
LeadershipEntrepreneurs and
Innovators
Adhocracy
EffectivenessGoal Achievement and
Winning
LeadershipHard Drivers and
Competitors
Market
EffectivenessEfficiency and Order
LeadershipMonitors and Organizers
Hierarchy
Internal Focus/Integration External Focus/Differentiation
Stab
ility
/Con
trol
Flex
ibili
ty/
Dis
cret
ion
Cultural AuditA tool for assessing and understanding the culture of an organization. Use these five steps for conducting the cultural audit:
Analyze process
and content
Analyze responses to critical incidents
Analyze values
and beliefs of culture
creators
Explore anomalies
or puzzling features
Examine linkage – culture
with goals
Subcultures – groups that share values that differ from the main values of the
organization.
CULTURE AND STRATEGY
Strategy and corporate culture
The relationship between company culture and strategy:
- Strategy is a product of culture- Culture is a product of strategy
Definition of culture could also be used as the definition of strategy:
- solution to the problems of external adaptation and internal integration
Cultural models of strategy
Strategic management: - Two main types according to their behaviours,
values and assumptions: Controlling model- information about its environment - quantitative and objective Adapting model- Information from personal sources - qualitative and subjective
Culture shock
Culture shock refers to unpleasant experience with other cultures
International managers experience culture shock at three levels:
- Emotions - Thinking - Social skills and identity