Very IMPORTANT topics today!!!
Part II
Defining the Manager’s Terrain
Ch.3 Organizational Culture
Ch.4 Global Environment
Ch.5 Managerial Ethics
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Today’s Agenda
Short review – basic concepts
(Ch.1) & development of
Management (Ch. 2)
 Ch.3 & 4 – Culture
(organizational and national)
 Ch.4 – Managing in a Global
environment
 Tutorial – video, discussions
(work with your teammates
starting today!)

© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Where We Are Today
Management (Robbins & Coulter)
Part 1
Basic
Concepts
(Ch1)
Part 1
Part 2
Retrospect
(ch2)
Context
(ch3-5)
Part 3
Part 4
Planning Organizing
(ch6-9) (Ch10-13)
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Summer 2006, HKUST
Part 5
Part 6
Leading
Controlling
(Ch 14-17) (Ch 18,19)
3
Ch.3 Organizational Culture
and the Environment
Learning objectives:
1.
2.
3.
4.
5.
6.
Contrast the omnipotent and symbolic
views of managers
Discuss what is organizational culture
Describe the seven dimensions of org.
culture.
Explain the source of an organization’s
culture and how that culture continues.
Describe how culture is transmitted to
employees.
Discuss the current Organizational
Issues Facing Managers
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Omnipotent vs. Symbolic view of managers
• Symbolic View of
Management
• Omnipotent View of
Management
– Managers are directly
responsible for an
organization’s success or
failure.
– The quality of the
organization is determined by
the quality of its managers.
– Managers are held most
accountable
for an organization’s
performance
yet it is difficult to attribute
good or poor performance
directly to their influence
on the organization.
– Much of an organization’s
success or failure is due to
external forces outside of
managers’ control.
– The ability of managers to
affect outcomes is influenced
and constrained by external
factors.
• The economy, customers,
governmental policies,
competitors, industry
conditions,
technology, and the actions of
previous managers
– Managers symbolize control
and
influence through their action.
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To what extent, managers are the
reasons?
Parameters of Managerial Discretion
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Do you “feel” the differences? Which is better??
• Company A
• Company B
We can work at home.
We have our own offices. It is
cozy like home.
We work together to solve
problems.
We are all colleagues and friends
here.
We feel free to voice when we
see bad things.
Those who have new ideas are
respected and awarded.
Work hours are strict.
We are clearly told what
to do next.
It is clear I get the pay if I
do as I’s told to do.
We don’t need much
“privacy” in work.
It is clear who is
supervisor and who is
subordinate.
We’d better follow the
current procedures in
our work.
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What is an Organizational Culture?

Organizational Culture

A system of shared meanings and
common beliefs held by organizational
members that determines, in a large
degree, how they act towards each other.

“The way we do things around here.”


Values, symbols, rituals, myths, and practices
Implications:

Culture is a perception.

Culture is shared.

Culture is descriptive.
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Culture: “that’s the way things
are done around here.”
1. Put 5 monkeys in a cage and place a banana in the
cage. One of the monkeys takes the banana
2. Next, do the same, but when the monkey takes the
banana, throw freezing water on all the monkeys
3. Now remove one of the monkeys and replace with a
new monkey. Place a banana in the cage. The new
monkey will attempt to get the banana, but the other
monkeys will attack it to stop it.
4. The new monkey doesn’t understand why, but it
doesn’t go for the banana.
NO!
NO!
NO!
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NO!
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• Again, replace an existing monkey with
a new monkey. Repeat the process.
The other monkeys, including the
monkey that doesn’t know why, will
attack the new monkey when it goes to
take the banana.
• Continue the process until none of the
original monkeys is left. Even though
they don’t know why, they will attack
any monkey going for the banana.
• Why ???
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this is what we call Organizational Culture !!!
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Dimensions of Organizational Culture
T
O
P
A
S
I
A
Exhibit 3.2
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Strong versus Weak Cultures

Strong Cultures

Are cultures in which key values are
deeply held and widely shared.

Have a strong influence on how
organizational members do things.
Why some org. cultures are strong?
size, age, founder....
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Sources of Organizational Culture

The organization’s founder


Past practices of the organization


Vision and mission
The way things have been done
The behavior of top management
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Continuation of the
Organizational Culture
– Recruitment of like-minded employees who
“fit”
– Socialization of new employees to help them
adapt to the culture
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How Employees Learn Culture

Stories


Rituals


Repetitive sequences of activities that express
and reinforce the values of the organization
Material Symbols


Narratives of significant events or actions of
people that convey the spirit of the organization
Physical assets distinguishing the organization
Language

Acronyms and jargon of terms, phrases, and
word meanings specific to an organization
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Remember these pictures?
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Ch.3 organizational culture and
the
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Do you want a logo for your group?
To reflect your distinct culture??
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How Culture Affects Leaders


establishes appropriate leader behavior
constrains decision making in all
management functions, P O L C
 P____ - degree of risk that plans should
contain
 O____ - degree of autonomy given
employees
 L____ - degree of concern for job
satisfaction
 C____ - reliance on external or internal
controls
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A visit to DisneyLand
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As you watch the video, think
about…
 What
is the culture of Disney?
 Who created this culture?
 What are some symbols,
languages, and rituals that
you see in this video?
 How is the culture of this
organization maintained and
transmitted?
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What are Disney’s Core
Values?
Show business
 Continuous improvement
and innovation
 Keep the magic and the
mystique
 Make people happy

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Language Used at Disney

“customers”

Guests/audienc

“employees”

cast

“at work”

Play role

“uniform”

Costume

“on duty”

On stage

“off duty”

Off stage
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How Does Disney Transmit
and Maintain its Culture?
Using symbols (Mickey),
stories, and languages
 New employee socialization
 Training, training, and more
training!!

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National Culture

Is the values and attitudes shared
by individuals from a specific
country that shape their behavior
and their beliefs about what is
important.

May have more influence on an
organization than the organization
culture.
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What are Americans,
Japanese, and Chinese like?
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Hofstede’s Framework for
Assessing Cultures





Individualism versus Collectivism
Power Distance
Uncertainty Avoidance
Quantity versus Quality of Life
Long-term versus Short-term
Orientation
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1. Individualism versus
Collectivism
• Individualism - values individual achievement,
freedom, and competition. The degree to which
people prefer to act as individuals rather than a
member of groups.
• Collectivism - values group harmony,
cohesiveness, and consensus. A tight social
framework in which people expect others in groups
of which they are a part to look after them and
protect them.
Examples?
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2. Power Distance
• the degree to which a country accepts the fact
that differences in its citizens’ physical and
intellectual capabilities give rise to inequalities in
their well-being. The extent to which a society
accepts that power in institutions and
organizations is distributed unequally.
low power distance: relatively equal distribution
high power distance: extremely unequal
distribution
Examples?
© Emily & Jian, MGTO120
Summer 2006, HKUST
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3. Quantity (Achievement orientation)
versus Quality (Nurturing) Orientation
Quantity or Achievement Orientation
valuing assertiveness, performance,
success, and competition. The extent to
which societal values are characterized by
assertiveness, materialism and competition
Quality or Nurturing Orientation valuing
quality of life, warm personal relationships,
and service and care for the weak. (M/F)
The extent to which societal values
emphasize relationships and concern for
others.
Examples?
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4.Uncertainty Avoidance
- degree of tolerance for uncertainty and
willingness to take risks. The extent to which a
society feels threatened by uncertain and
ambiguous situations and tries to avoid them.
Examples?
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5. Long versus Short term
orientation
• Long-Term Orientation – a culture that
emphasizes the future, thrift, and
persistence.
• Short-Term Orientation - valuing
personal stability and living for the present.
Examples?
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Examples of Hofstede’s Cultural
Dimensions (agree? How about HK?)
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• The GLOBE
(Global
Leadership and
Organizational
Behavior
Effectiveness)
Framework for
Assessing
Cultures
• Assertiveness
• Future Orientation
• Gender differentiation
• Uncertainty avoidance
• Power distance
• Individual/collectivism
• In-group collectivism
• Performance orientation
• Humane orientation
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See the differences?
List as many as possible.
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Where do they come from?
How did they come to HK?
© Emily & Jian, MGTO120 Summer 2006,
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Doing Business Globally

Adopting a Global Perspective
Ethnocentric Attitude

The parochialistic belief that the best work
approaches and practices are those of the home
country.
Polycentric Attitude

The view that the managers in the host country
know the best work approaches and practices for
running their business.
Geocentric Attitude

A world-oriented view that focuses on using the
best approaches and people from around the
globe.
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Different Types of Global
Organizations

Multinational Corporation (MNC)


Transnational Corporation (TNC)


A firm which maintains operations in multiple
countries but manages the operations from a
base in the home country.
A firm that maintains operations in several
countries but decentralizes management to the
local country.
Borderless Organization

A firm that has eliminated structural divisions
that impose artificial geographic barriers and is
organized along business lines.
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How Do Organizations Go Global
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Homework (remember, this course is
to HELP you to think critically, but it is
YOU who THINK):

Think about the national culture
differences. Using Hofstede’s and
the GLOBE frameworks to analyze
the countries you are familiar with.
Think about SPECIFIC examples.

Describe the cultures of companies
you know, using TOPASIA.

Search company histories in the
website, to see how they went global.
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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