Intro To Intercultural Management - Pp01 1t4o49

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Part 1 Culture and management

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Introduction Introduces • A theoretical issue in each chapter Outlines • Research in the field of culture in management Provides • Some understanding of business culture in international environment Helps to develop • Desirable behaviours in a specific cross-cultural context

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Chapter 1 Determinants of culture

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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• Preface: Organisational culture and ethnography – Role of ethnography in organisational research

• Concept 1.1: Facets of culture – Concept of culture – Norms and values – Cultural assumptions in management

• Concept 1.2: Levels of cultures – From national culture to culture and management.

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Culture as organisational methaphor

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Common metaphors for organisations

Source: adapted from Tietze et al., 2003: 39. Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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The concept of culture What culture is?/is not? • Culture is a code of attitudes, norms and values, the way of thinking... • Culture determines: – How we see ourselves – How we see the world

• Culture is not right or wrong, inherited, about individual behaviour...

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Three layers The concept of culture has three layers: 1) Artefacts and attitudes – Behavioural or explicit level

2) Norms (rules) and values – Every culture has its own system

3) Basic assumptions – Difficult to describe or explain.

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Comparison of value systems of societies Four categories (Ruano-Borbalan, 2002) • Traditional society (Arab countries) – Religion plays an important role

• Rational society () – Interests of the individual come first

• Society where materialism is predominant (ex-communist countries) • Post-modern society (Scandinavia) – Tolerant and democratic

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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European culture What is important in the forming process of a European culture? •Meeting of diversity •Complementarity of ideas •Interaction and interference within opposite values: – Religion/rationality – Mythical thought/critical thought – Humanism/science (Morin, 1987)

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Levels of cultures in a business context Cultures can develop at different levels: • Culture and nation • National culture • Organisational culture • Corporate culture • Professional culture • Culture and management.

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Culture and nation Influence of culture/nation on organisations: • Macro level – Laws and economic institutions – The nation must be considered by organisations going about their business.

• Micro level – The organisation is influenced through a number of cultural elements relating to: • employer–employee relationships • behaviour among employees. Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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National culture • Elements that contribute to the creation of a national culture: – Physical environment – History of the nation

• Institutions that contribute to the establishment of a national culture – Family/Religion/Education – Mass communication media – The multinational company as culture-building institution. (Tabey, 2003) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Organisational culture • In organisations, culture affects the way: – Strategy is determined – Goals are established – How the organisation operates.

• The personnel of the organisation: – are influenced by their cultural backgrounds; – share their own values and perceptions. (Schein, 1999)

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Cultural assumptions in management Edgar Schein defines culture as: ‘a set of basic assumptions – shared solutions to universal problems of external adaptation (how to survive) and internal integration (how to stay together) – which have evolved over time and are handed down from one generation to the next’. (Schein, 2004, p.14)

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Corporate culture • Corporate culture is a combination of: – Organisational culture – National/regional culture

• Two differing views about the influence of corporate culture on a (multi-) national company: – Success depends on it having either 1. A clearly defined corporate culture, or 2. A flexible culture

• Internal factors play an important role, in particular the extent of cultural control. Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Professional culture Three professional cultures in management: • Operators – involved in production (goods/services)

• Engineers – design and monitor the technology

• Executives – senior managers (Schein, 1996)

The question remains: how do these professional cultures co-exist? Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Culture and management Cross-cultural management • Explains the behaviour of people in organisations around the world • Describes and compares organisational behaviour across countries and cultures • Seeks to understand and improve the interaction of : co-workers, managers, executives, clients, suppliers and alliance partners. (Adler, 2002)

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015

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Conclusion • Chapter 1 shows how difficult it is to give a definition of the word ‘culture’. • Chapter 1 also shows that the individuals in a group form a culture that can be national, organisational or professional.

Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015