Lecture 2 Flashcards
Studies demonstrate that organizational behavior is__ affected by the national cultural value system of corporate leaders and managers.
directly
McGregor’s theory “X”
This theory assumes that managers don’t trust their subordinates; as a result, strict control over subordinate employees by managers is considered an effective and proper management style.
Although, this management style has historically been practiced, almost in every country, the tendency in most corporations today (especially in developed nations) is to move to a more participatory or co-managerial model.
McGregor’s theory “Y”
Indicates that Western cultures, including US tend to believe that employees will be more productive if they work autonomously and have little control from their bosses.
Impact of theory “X” on business organization:
EXCESSIVE CONTROL
leads to
MISTRUST
leads to
LIMITED MOTIVATION
leads to
LOW PRODUCTIVITY
leads to
HIGH COSTImpact of theory “Y” on business organization:
LIMITED CONTROL ON SUBORDINATES
leads to
MUTUAL TRUST BETWEEN BOSSES AND SUBORDINATES
leads to
SELF MOTIVATED AND SELF CONTROLLING EMPLOYEES
leads to
HIGH PRODUCTIVITY
leads to
LIMITED SUPERVISION LEADS TO LOWER COST
McGregor’s Theory “y“ stresses on the overall goals and tasks without applying tight control systems or close supervision.
Workers are motivated not by strict control, but through self confidence and personal independence.
Theory “Y” mostly takes place in advanced and dynamic economies, and in larger organizations
Two models of organizational structure as related to cultural background of nations:
Model 1: Strict hierarchy
Model 2: Bypassing the hierarchical line
Strict hierarchy
is needed in order to know who has authority over whom. Southern European and most Asian countries’ management styles are portrayed as followers of strict hierarchy. This model might not include the management styles of foreign businesses
Bypassing the hierarchical line
is often necessary for having efficient work relationships. North European and US management styles are known for disliking hierarchy and authoritarian management. Hence, the national culture encourages bypassing the hierarchical line in order to have efficient work relationships. This model might not include small or family owned traditional businesses.
According to Laurent’s hierarchical analysis, there are three distinguished regional categories
- North America and North European Model
- Southern Europe Model
- Asian, Latin American and African Models
- North America and North European Model
( flatter organizational structure is encouraged)
- Southern Europe Model
(controlled hierarchy is encouraged)
- Asian, Latin American and African Models
(strong hierarchy is a norm)
North American and Northern European Model: (details)
Roles and tasks should be clearly defined
More emphasis should be on tasks and goals rather than on staffing
Managers should treat subordinates as colleagues
Bosses shouldn’t and can’t know everything, thus, bypassing hierarchy is a rational action
Non-North American and Non-Northern European Perception about Managerial Responsibilities
Managers should know “most of the functional area of the company and should have answers to all questions that might arise”.
Projects are initiated or driven by personality rather than by reasonable objectives.
Chain of Command is very important.
Decisions and responsibilities are top-bottom.
Hofstede’s Five Dimensions of Cultural Differences Help in Explaining the Management Styles of Nations
- individual/collective
- power distance
- uncertainty avoidance
- masculinity/femininity
- Confucian dynamism (fifth dimension: Hofstede & Bond)
Masculinity measures
the extent to which the society emphasizes assertiveness and the acquisition of material things and applies a rigid gender definition.
(most Western including US management styles reflect such cultural behavior)
Femininity emphasizes
relationship among people, concern for others, and the overall quality of life. (Scandinavian social and corporate cultures are good examples of such behavior)
Even though, Masculinity and Femininity here are not strict gender related definitions, there is a correlation between
male and Masculinity cultural traits as much as there is a strong relationship between being female and manifesting feminine cultural traits.
Individualism
implies to loosely knit social framework in which individuals are expected to take care of themselves and can make autonomous decisions whenever required.
(This kind of cultural trait is widely manifested in countries where free market system is practiced).
Collectivism:
implies to a tight social frameworks, where the needs of the group/many outweigh the needs of one/individuals
(Such managerial behavior takes place in traditional societies or in totalitarian systems).
Power Distance
“measures the extent to which the subordinates/followers accept the unequal distribution of power”
high power distance culture accepts
unequal distribution of power. (Such value system exists in traditional and less developed countries)
low power distance culture rejects
unequal distribution of power. (Practiced in advanced and democratic systems)
