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)
Confucius Dynamism (long term values) measures
employees’ devotion to the work ethic and their respect for tradition and long-term objectives.
Rapid economic growth in the Asian “Tiger Countries” is attributed to
Confucian work ethics according to Hofstede and Bond (1988), Ball and McCulloch (2002) and (Hill, 2000).
However Confucian culture might also harbor corruption as it discourages
citizens from questioning and scrutinizing authorities (Chen, 2002).
Values in Long Term Cultures
Persistence
Ordering relationships by status
Thrift
Having a sense of shame
Values in Short Term Cultures
Steadiness and stability
Protecting face
Respect for tradition
Reciprocation of greetings and gifts
According to Child, one reputable scholars’ research group indicated that national cultures are converging (being similar to each other; or
converging to the Western managerial style)
A second equally important research concluded that national cultures are
diverging.
The most important achievement in solving the dilemma is Child’s conclusion which states that:
While organizations worldwide operationally are becoming similar to each other, (organizations are similar in their structure and technology), the same organizations are dissimilar in the way businesses are managed and negotiated.
Childs’ conclusion leads us to believe that organizational cultures are both in a state of
convergence and divergence.
Trompenaars’ study shows that with modernism and economic growth, societies tend to:
move from collectivism to individualism
standardize their rules and regulations
preach and practice high achievements
view time as a continuum of past, present and future.
on the other hand, countries whose economies are traditional and stagnant or regressive, tend to manifest
the opposite of the previously listed directions.
How nations view: past, present and future
China (equal weight)
USA (present oriented)
France, Germany, Canada (equal)
Japan (present and future the most, past is still important)
Venezuela (focused more on past and present)
Past Oriented societies:
talk about history, origin of family, businesses and nation
are motivated to recreate a golden age
show respect for ancestors, predecessors and older people
view every thing in the context of tradition or history
Present Oriented:
Activities and enjoyments of the moment are most important
Plans not objected to but rarely executed
Show intense in present relationship
Everything viewed in terms of its contemporary impact and style
Future Oriented:
Much talk of prospects, potentials, aspirations and future achievement
Planning done enthusiastically
Show great interest in the youthful and in future potentials
Present and past exploited for future advantage
