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Reading 2: Culture and globalization #-./* +, ()% '&#$% " !

Reading 0: 1ational 2ulture: di3en4ion4 and 4torie4 Reading 5: 6o74tede on international 2ultural di77eren2e4 8ue4tion: di42u44 6o74tede94 di3en4ion4 o7 national 2ulture and t:;i2al <ue4tion4 on ea2= di3en4ion> ?@ 6ig= A4@ loB ;oBerCdi4tan2e This dimension is concerned with how far the culture encourages superiors to exercise and display power In high power-distance cultures the exercise of power is what being a boss means Working relationships are based on ha ing power o er someone! or being dependent on someone "mployees are fre#uently afraid to express disagreement! and prefer to work for managers who take decisions $and responsibility% and tell them what to do In low power-distance cultures &uperiors and subordinates consider each other to be colleagues and ha e alues that mean that ine#uality in society should be minimi'ed &uperiors are accessible because organi'ation members are interdependent "mployees are seldom afraid to disagree! and expect to be consulted before decisions are made

2@ 6ig= A4@ loB un2ertaint:CaAoidan2e This dimension concerns the degree to which the culture encourages risk-taking In strong uncertainty-a oidance cultures

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(eople feel threatened by uncertain situations! and experience greater anxiety and stress from them+ This is countered by hard work! career stability and intolerance of de iancy There is a search for ultimate alues and a great respect for age "mployees agree that rules should not be broken and look forward to staying with the firm until they retire In weak uncertainty-a oidance cultures ,ife-s inherent uncertainty is more easily accepted+ "ach day is taken as it comes and so people experience less stress There is less need for rules! and people take a ery pragmatic iew of keeping or changing the existing rules
+ -

0@ DndiAiduali43 A4@ 2olle2tiAi43 This dimension concerns the degree to which the culture encourages indi idual! as opposed to collecti ist or group! concerns In an individualist culture Identity is based on the indi idual+ The emphasis is on indi idual initiati e or achie ement and e eryone is supposed to take care of themsel es plus only their immediate family " erybody has the right to a pri ate life and opinion! and may well ha e only a calculated in ol ement with the work organi'ation .ery important to ha e time for personal and family life /ob training carries much less alue! since it increases commitment to the company In a collectivist culture 0 much tighter societal framework! where people are members of extended families or clans which protect them and which! in return! expect loyalty from them The emphasis is on belonging and the aim is to be a good member There is a belief in the alue of group decisions The alue standards applied to members of one-s own group! clan or organi'ation can differ considerably from those applied to others "mployees alue good physical working conditions! while personal challenge in work is of little importance 5@ Ea42ulinit: A4@ 7e3ininit: This dimension is based on a form of gender stereotype
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In masculine cultures (erformance is what counts! ambition is the dri ing force! and high earnings! money! material standards and the opportunity to achie e are alued 1ig and fast are beautiful! 2machismo- is admired The manager is asserti e! decisi e! slightly macho and 2aggressi e 0 lonely decision-maker looking for facts rather than a group discussion leader The sex roles tend to be clearly differentiated! with men expected to be asserti e and dominating! and women to be caring and nurturing 0 dominant woman is regarded as unfeminine 3 although she is allowed to be manipulati e in the background In feminine cultures It is the #uality of life that matters+ (eople and the en ironment are important! ser ice pro ides moti ation &mall is beautiful The manager is less isible! intuiti e rather that decisi e! and accustomed to seeking consensus &ex roles in society are more flexible! unisex is attracti e! and there is a belief in e#uality between the sexes 4ot considered 2unmusculine- for a man to take a caring role Working co-operati ely may well be alued highly ,i ing in a pleasant area is important There is less alue on gaining recognition for a good 5ob done #-./* + ()% '&#$% " ! Reading F: 6o74tede on internal organizational 2ulture4 8ue4tion ?: di42u44 t=e di77erent betBeen national and organizational 2ulture> 6ofstede argues that national culture is to do with basic values! which are instilled in indi iduals through sociali'ation within the family+ 6owe er! organizational culture is more to do with the attitudes and orientations associated with workplace practices+

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8ue4tion 2: di42u44 6o74tede94 4iG di3en4ion4 o7 organizational 2ulture> ?@ Hran47or3ation orientation A4@ out;ut orientation )% In transformation-oriented organi'ations people a oid risks and make limited efforts in their 5obs 2% In output-oriented organi'ations people put in a large effort and are ready to take on new challenges 2@ Ieo;le orientation A4@ ta4J orientation )% 0 people-oriented culture will encourage concern for personal and group welfare 2% 0 task-oriented culture will be concerned with getting the 5ob done 0@ Krganizational orientation A4@ o22u;ational orientation )% Organizational orientation is where employees identify themsel es primarily as employees of a particular organi'ation 2% Occupational orientation is where employees tend to identify themsel es by their 5ob! occupation or profession 5@ K;en A4@ 2lo4ed 2o33uni2ation 2li3ate )% In an open climate information is easy to find and communication is clear and straightforward+ The organi'ation is accessible to outsiders! and new people find it easy to settle in 2% 0 closed climate tends to be secreti e! with only special people who ha e been there a long time! fitting in F@ Loo4e A4@ tig=t internal 2ontrol 4tru2ture )% In tight organi'ations! costs are closely controlled! meetings are punctual and 5okes about the organi'ation are rare 2% Loose organi'ations tend to ha e a more relaxed atmosphere M@ 1or3atiAe A4@ 3arJet Ni@e@ 2u4to3erO driAen orientation )% In normative cultures! complying with organi'ational procedures and meeting high standards of honesty and ethics are regarded as crucial 2% In the market-driven cultures! priority is gi en to understanding and meeting customers- demands and achie ing results! and doing whate er is needed to achie e this+

*S PQ$/R' #-./ Reading T: Uour enAiron3ental 2=allenge4 8ue4tion: di42u44 t=e 7our 2=allenge4 an organization =a4 to deal Bit=V al4o di42u44 t=e ;o44ible re4;on4e4 to ea2= 2=allenge>
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?@ H=e 2=allenge o7 in4tabilit: 0 dynamic! unstable en ironment! may follow from factors such as o 8apidly changing technology o &udden changes in customer tastes or demands o The rate at which new products come into the market o 1roader macro-economic changes and unpredictable go ernment inter entions The unstable ariability and unpredictability of a dynamic en ironment creates uncertainty! and with it many kinds of management problems within organi'ations Dnternal re4;on4e4 to enAiron3ental in4tabilit:9 this refers to strategies an organi'ation can adopt internally! to make it better able to cope with whate er en ironmental challenges impinge upon it! as distinct from 2external responses- that attempt to tackle the challenge itself o Wdo;ting a 3ore 7leGible 4tru2ture9 :ynamic organi'ational en ironment demand ersatile! organic structures that can cope with fre#uent changes of suppliers! products! staff! markets! and so on better than traditional bureaucracies+ ;albraith $)<=7% ad ocates two pairs of strategies to achie e this flexibility9 >ake it easier for small ad5ustments to be made locally to cope with local ariations by9 6a ing sufficient 2slack- in the system to ensure that there is always a little spare capacity in hand ?rgani'ing the work into self-contained tasks $e+g+ the use of semi-autonomous work-groups% >ake it easier for the organi'ation to process the large amount of information in ol ed in managing rapid changes by9 "nhancing capacity to handle information flowing ertically up and down the organi'ation $e+g+ IT-based management information systems! or special people dedicated to information management% "nhanced capacity for information to flow laterally $e+g+ using special liaison staff! multi-functional teams! etc+% o Developing a more flexible workforce9 0 flexible workforce is as important as a flexible structure+ ?ptions include9 @se of team-working of arious kinds 8educing 5ob demarcation through 5ob design

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(lacing greater emphasis on skills that allow switching between tasks $multi-skilling% "mpowerment Increasing managerial direction Introducing pay and incenti e systems Increasing use of part-time staff o Adopting organizational cultures that support change9 4ew ways of thinking about organi'ational life that are better adapted to coping with a turbulent en ironment The learning organi'ation9 this sees the organi'ation as an 2organism- that is continually meeting changes in its en ironment Coping rather than optimi'ing9 coping becomes more important than perfection Thri ing on the edge of chaos XGternal re4;on4e4 to enAiron3ental in4tabilit:9 If my organi'ation depends ery strongly on another! then I am ulnerable to uncertainties in their en ironment as well as to those in my own+ 2@ H=e 2=allenge o7 2o3;leGit: :ecentrali'ing decision-making o 0 common response to complexity is to decentralize decisionmaking+ There are two main reasons for this9 The periphery offers more options :ecentrali'ed decision-making minimi'es information transmission &elf-contained tasks o If a market is ery di erse! it makes sense to split the organi'ation into market-based units so that the different units can de elop appropriate responses to their own markets Aocusing on core processes o The essence of this strategy is to 2stick to the knitting-! i+e+ 2stick to the business you know best and are best at-+ ,imit your organi'ation to doing what you do best! and buy in any other materials or ser ices you need from others who are doing what they do best o In a sense! you are exporting some of the en ironmental complexity and uncertainty to other organi'ations! so simplifying what your own organi'ation has to deal with

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0@ H=e 2=allenge o7 =o4tilit: 6ostility may come from arious sources o Competition arising from the number and the power of other competitors in the market o ;o ernment regulatory pressure o &ocial pressure by pressure groups 6ostility from competitors $three types of threat% o The threat of new entrants o The threat of substitution o The threat from existing competitors+ 8esponses to this may be :o nothing Try to impro e position Collaborate with others Control the market place 8esponses to extreme hostility o In the face of extreme hostility! organi'ations tend to centrali'e their structures! particularly if sur i al is at stake+ The idea behind this strategy is that a faster response will be possible if decisions are all handled at the centre 5@ H=e 2=allenge o7 de;enden2: :ependency has the effect of mo ing power away from the dependent person or organi'ation! towards the person or organi'ation depended on+ &ome of the possible responses to dependency include o The dependent organi'ation may centralize and formalize its structure o Diversification9 to reduce its dependence! the supplier might find other customers! or de elop other products for the same customer o Increase mutual dependence9 a small supplier organi'ation might try to make itself indispensable to its dominant customer

CDE FGH IJKL MNOPDQKL RJST UPQVWLX YZV[ \]^KL _` aObVE ?@ Dn;ut4V Hran47or3ationV and Kut;ut4

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This way is to consider your organi'ation as a transformation process+

0 well constructed input-output diagram should be a simple! compact and informati e way of answering the #uestion cWhat do we dodc 3 0nswer9 we take e! f and g and transform them to (! h and 8 8emember that in any input-output diagram mass and energy are conser ed+ If 500 tones go in one side! 500 tons ha e to come out of the other side+ 2@ Wuditing Eintzberg94 YtaJe=older4 If we you want to understand what is going on in a situation! or if you want to inter ene in a situation in some way! itis ery useful to think about the stakeholders! as they are the people who matter in the situation+ >int'berg has arranged his $>int'berg &takeholders% diagram to look like a clownis face+ 0@ X2ono3i2 Ye2tor Wnal:4i4 "conomists group economic acti ities according to sectors+ 0ll the organi'ations in a particular sector produce similar products or ser ices! and ten to be affected by similar influences+ &o it-s a useful way to explore an organi'ationis en ironment is to identify its sector $ other organi'ations in the same sector! customers! the differences! competiti e ad antage! the net work of supply chain and distribution channels work% Z[ #-./ Reading ?0: Dnter;enetration 3e2=ani434 8ue4tion: inter;enetration 3e2=ani434 are a ter3 u4ed to de42ribe Ba:4 o7 eGerting 2ontrol a2ro44 organizational boundarie4@ \i42u44 ea2= 3e2=ani43> ?@ Dnter;enetration t=roug= ]oint Aenture4 /oint entures ha e traditionally been thought of as de ices for securing some of the ad antages of a merger $economies of scale!
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for instance% while at the same time preser ing the identity and autonomy of the organi'ation &tern saw them as mechanisms for reducing conflict between organi'ations (ennings $)<j)% saw collaborati e entures between two organi'ations as a way of bringing them together 2@ Dnter;enetration t=roug= 4ta77 eG2=ange4 In ol es the formal exchange of staff for a specified length of time+ This can occur at different le els in an organi'ation 0@ Dnter;enetration t=roug= t=e role4 o7 boundar: ;eo;le 1oundary people are those within an organi'ation who are concerned primarily with external relations with other organi'ations &ome boundary people may actually carry out work on the premises of a linked organi'ation+ Aor instance! computer manufacturers may station personnel at a customer-s premises for a long time to perform engineering work 5@ Ddeologi2al ;enetration In ol es sharing certain basic standards and alues F@ Dnter;enetration t=roug= 2oCo;tion Co-option is essentially a defensi e strategy! adopted because some other group or organi'ation appears to threaten your organi'ation-s stability or existence It in ol es in iting an outsider from another organi'ation into the organi'ation+ 1ut! unlike other forms of cross-membership! the moti e is to transform the attitudes of the co-opted person! and hence to reduce the threat that his or her organi'ation represents Co-option doesn-t always work as intended9 It can easily become a purely symbolic gesture without any real communication or influence If communication is good! the co-opted person may be re5ected by the former organi'ation as ha ing 2gone o er to the other side &ometimes co-opting and co-opted organi'ations may each be seeking to influence the other! so that the co-opted person may become a 2mole- or a 2pawn-+ Co-option may then ha e a high price

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M@ Dnter;enetration t=roug= interlo2Jing elite4 ?rgani'ations often depend on one another for intangibles! such as sustaining business confidence! getting information and ad ice! locating good contacts! or building goodwill and gaining legitimi'ation+ This is one of the reasons why many large organi'ations try to de elop links between their senior people and those in other organi'ations The 2interlocking elites- concept is based on two assumptions9 That most organi'ations ha e an elite made up of indi iduals who ha e a great deal of experience! and exercise a good deal of influence That useful flows of information! confidence! esteem! and so on! will be generated if these indi iduals are simultaneously parttime members of the elite of other organi'ations Interlocking elites can become established both formally and informally9 ormal mechanisms9 large pri ate companies may encourage senior people in their company and another one to take on parttime directorships in one another-s companies+ 4ot only does each side benefit from the skills and prestige of the other company-s director! but they also ac#uire knowledge and exert influence with in the other organi'ation Informal mechanisms9 contacts formed in places where managers meet socially .i.$' 'h^ fg% de% cR' Q P'b( a "`_ '" Q^ Reading ?T: EarJet4 @8ue4tion ?: t=e ter3 3arJet i4 u4ed in di77erent Ba:4@ j=at are t=e:> ?@ It can be used rather loosely to refer to the ways in which capital! labor! goods! ser ices and commodities are allocated in the modern economy+ &o there are markets for goods! ser ices and commodities! capital markets! and a labor market for employees and the unemployed+ In this sense! 2market- really 5ust means9 2the system of flows of capital- $or labor! or whate er%+ 2@ 2>arket- is also used in a more specific way! to identify a particular area of competition between firms! as when we speak of 2the market for personal computers-+ 0@ The most general and abstract sense of 2market- is its use as a description of a philosophy or set of operational principles+ The

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market concept en isages a set or relationships in which member organi'ations compete amongst themsel es for the resources they want! and where competition allocates resources according to price+ 8ue4tion 2: B=at are t=e underl:ing a44u3;tion4 o7 t=e 3arJet 8ue4tion 0: di42u44 t=e li3itation4 o7 t=e 3arJet 2on2e;t> ?@ It is easy to 5udge the nature and #uality of goods and resources! 2@ Information about prices! #uality! alternati e suppliers! alternati e purchasers! etc+! is freely a ailable! and information flows are reasonable+ 0@ The market is dynamically self-correcting so that profit leads to competition! which leads to less profit and less competition+ 5@ ?wnership of goods and resources is distributed throughout the market! and there are many competing buyers and sellers+ F@ It is fairly easy for new firms to enter the market! and for ineffecti e ones to lea e it! M@ "xternalities $such as effects of third parties! en ironmental conser ation concerns! go ernment regulation! and so on%! are minimal and may be ignored by the market! k@ There is an agreed framework for fair dealing! redress! what constitutes illegal beha ior! and so on+ 8ue4tion 5: B=at i4 t=e 3eaning o7 <ua4iC 3arJet> 8ua4iC3arJet4 and t=e ;ubli2 4e2tor &er ices are often purchased by the state on behalf of the public $e+g+ to pro ide care for older people%+ In recent years it has become common for this to be talked about in terms of the market concept! for instances tendering for residential care pro ision 2on the open market 1ut there are some important differences here from what happens when! say! a company buys the ser ices or supplies it needs on the open market @sers of those ser ices are not who buy them+ There is a $purchaser-pro ider-user% relationship rather than the simpler purchaser-pro ider relationship of the con entional market+ If something goes wrong with the ser ice! the purchaser is no longer the person who is directly affected! so undermining one of the fundamental assumptions of the market model

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There are other differences from the 2classic market- and it may be better to regard this sort of relationship as a "uasi-market with the following characteristics9 :emand is influenced and structured by a ariety of factors other than strict market ones There may be few buyers of ser ices apart from the state! so ser ice pro iders may be few in number! competition between them may be ery limited! and the 2market- may be opa#ue! problematic to enter! and structured in an uncon entional way >easuring the performance and #uality of institutions such as schools! hospitals! prisons! etc+ is ery much more difficult than measuring the #uality of most normal commercial products or ser ices #-./ Reading 2l: 1etBorJ4 8ue4tion 2: di42u44 t=e ;ro;ertie4 o7 a netBorJ@> )+ #he position of an organization in the network+ Is it in contact with a large number of other nodesd Is it a communication gateway between two ma5or groups of nodesd Is it merely a peripheral member of the networkd 2+ $ow much control does an organization exert% Is it a dominant or minor player in the networkd This is partly a matter of position in the network! but also of how much it contributes! and how important its role is to other players+ *+ &hether the network is loosely or tightly coupled+ This depends on the strength and intensity of relationships and the fre#uency of interactions+ Aor instance! a supply network is likely to be tightly coupled to the organi'ation being supplied $and in the case of 25ust-intime- supply! the coupling is ery tight indeed%+ 6owe er a network of old buddies and Internet contacts you occasionally e-mail for bits of information are likely to be ery loosely coupled indeed+ 'cm #-./ Reading 2?: EarJet4V 6ierar2=ie4 and 1etBorJ4 8ue4tion: B=at are t=e Je: di77eren2e4 betBeen 3arJet4V =ierar2=:V and netBorJ4>

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