Occd

definition A formalized intentional structure of roles or positions. Formalised intentional structure means : People working together must fill certain roles. The roles people are asked to fill should be intentionally designed to ensure that required activities are done & that activities fit together so that people can work smoothly, effectively & in efficient groups. . Organisations may be defined as social entities that are goal directed,& are deliberately created and designed to achieve some specific stated objectives. Organisation;- includes all the behaviours of all participants.- it’s a total system of social & cultural relationships- its an enterprise.

Features of organisations They are deliberately created. They are linked to external environment. Thy are influence & are influenced by socio- economic & political envn,. They are made up of people & their relationships with one another. People interact with one another to perform essential functions that help attain common goals.they have permeable boundaries. They have symbiotic relationships with orgnisations of mutual interest.

Organisations as systems Closed system: it does not depend on its external envnm; it is autonomous, enclosed & sealed from the outside world. Open system : is that it must interact with the envnm to survive, simply because it consumes resources &exports resources to the envnm. It must continuously change & adapt to envnm.

Organisational role It must incorporate: Verifiable objectives as a major part of planning. A clear idea o the major duties or activities involved. An understood area of descretion or authority so that person filling the role knows wgat he/she can do to accomplish goals Supply needed information & other tools necessary for performance of the role.

Organising as The identification & classification of required activities. The grouping of activities necessary to attain objectives, The assignment of each group to a manager with authority ( delegation) necessary to supervise it. Tne provision for coordination horizontally( on the same or similar orgnal level) & vertically( e.g. betweem corporate H.Q., division & dept) in the orgn structure.

WHY ORGANISATIONS EXIST TO INCREASE SPECIALISATION & DIVISION OF LABOUR. TO USE LARGE SCALE TECHNOLOGY. TO MANAGE THE EXTERNAL ENVNM. TO ECONOMISE ON TRANSACTION COSTS. TO EXERT POWER & CONTROL.

Organisation structure-key components –defining OS OS designates formal reporting relationships, including-number of hierarchy levels & span of control for managers & supervisors. identifies the grouping together of individuals into departments & of depts into total organization. OS includes the design of systems to ensure effective communication ,coordination,& integration of efforts across departments.

Organization design alternatives The design of OS indicates three things- Defined/needed work activities. Reporting relationships-chain of command. Departmental grouping options

Departmental grouping options Functional -places employees together who perform similar functions or work processes or who bring similar knowledge & skills. Divisional- according to what the organization produces. Geographic - resources are organised to serve customers or clients in a particular geographical area Matrix - mutifocused grouping means an orgn., embraces two structural grouping alternatives simultaneously.

Functional structure Effective-when – in-depth expertise is critical to meeting orgn goals. The orgn needs to be controlled & coordinated through vertical hierarchy. Efficiency is important . strengths Promoted economy of scale within functions i.e. all employees are located in the same place & can share same facilities Promotes in-depth skill development of employees. Weakness Slow response to envm changes Innovation is slow. Poor coordination

Divisional structure –product structure or strategic business unit. It based on organizational inputs. Promotes flexibility Decentralizes decision making Achieves coordination across functional depts Effective when goals are oriented towards adaptation & change’ Provides high product visibility. Disadvantages-loses economies of scale-physical facilities have to be duplicated-coordination across product lines is difficult.

Geographical structure. Based on organisations users or customers. Self contained units. Can adapt to specific needs of its own region Employees identify with regional goals rather that national goals. Emphasizes on coordination within the region rather than linkages across regions or to the corporate office.

Matrix structure Both product division & functional structures ( horizontal & vertical) are implemented simultaneously. -product & functional managers have equal authority within the orgn. Conditions for matrix structure. Pressure exists to share scarce resources across product lines. Envntl pressure exists for two or more critical outputs such as for in-depth technical knowledge(functional structure) & frequent new products( divisional structure. The envntl domain is both comples & uncertain.

Emerging Organizational structures. NETWORK ORGNS.- blends concepts such as value of management planning & controls with market concepts such as exchange agreements.-rely on contracting & outsourcing in lieu of owning & operating functions internally. THE AMBIDEXTROUS ORGNISATION.-separate their new exploratory units from traditional exploitative ones allowing different processes ,structures, & cultures while maintainig a tight link across units at the senior level- they manage organisational separation through a tightly integrated senior team.

contd The Velcro organization: Shift roles depending on the tasks they performing. Relationships get rearranged quickly,easily &effectively. Manager plays several roles.-merck, mckensy,haverd business school. Managers have have major assignments in addition to their primary functional roles. Cos tend to be flat& are organised around operating units.

Successful Velcro organiztsns have Their business unit & country managers understand what corporate strategy is & means in terms of purposes & priorities. Individual operations have a degree of functional excellence. Information systems can track performance across units for each individual involved in multiple projects /assignments. Compensation systems reward cross unit effort without diluting the incentive for local effort. Co culture develops senior executives who are comfortable with ambiguity required of a velcro orgn.

An organisation chart indicates how departments are tied together along the principal lines of authority An organisation chart shows formal authority Relationships & omits the many significant informal & informational relationships The effectiveness of organisation is Influenced by the organisation culture

Nature of culture Culture is understood as the customs, Beliefs, norms & values that guide the behavior of the people in a society & that are passed on from one generation to the next.

Core elements of culture Culture has normative value. It prescribes do’s & don'ts which are binding on the members of a society. Culture is a group phenomenon. Culture applies to the members of a society. Society’s normative values are binding on each member & not vice versa. Cultural practices are passed on from generation to generation .

Levels of culture Dominant culture-is pervasive & extends to the whole of a country. Sub-cultures-exist within dominant culture Organisational culture-is within the dominant culture. Every orgn,has its own distinct culture. Occupational culture-each profession carries its own culture& it cuts across dominant cultures.

Organisational culture The basic assumptions & beliefs shared by members of an organisation . These beliefs operate unconsiously & define in a basic taken-for-granted fashion an organisation’s view of itself & its environment.

Key elements of orgn., culture Observed behavioral regularities. When people interact, such as the language used & the ritual surrounding deference & demeanor. The norms- that evolve in working groups, such as the norm of a fairs day’s work for a fair day’s pay. The dominant values espoused by an organisation, such as product quality or low prices. The philosophy that guides an organization's policy towards employees & customers. The rules of the game for getting along in the organisation- “ the ropes “ that a newcomer must learn to become an accepted member. The feeling of climate that is conveyed in an orgn by the physical & the way in which members of the organisation interact with one another, customers,& outsiders.

Orgn culture underlying values Firms that make cultural adjustments to keep up with envnm changes normally outperform those whose culture is rigid & unresponsive to external jolts. Underlying values. Inherent in democracy. Informality in communication. The importance of individual dignity. Promotion based on performance.

illustrations of OC & mgmt practice Planning-Envnm A Goals are set in an autocratic manner. Decision making is centralised. Organising. Authority is centralised & narrowly defined. Staffing. People are selected on the basis of friendship. Trg is a narrowly defined speciality Envnm-B Goals are set with great participation. Decision making is decentralised. Authority is decentralised & broadly defined People are selected on the basis of performance criteria. Trg is in many functional areas.

Orgn culture & mgmt practice Leading-Envnm A Managers exercise directive leadership. Communication flow is primarily top-down Controlling. Superiors exercise strict control. Focus is on financial criteria. Envnm B Managers practice participative leadership. Communication flow is top-down,bottom-up,horizontal& diagonal. Individual exercise self control. Focus is on multiple criteria.

How orgnl culture is created It is an interaction of four factors . The personal & professional characteristics of people within the orgn,. Organisational ethics. The property rights that the orgn gives to its employees. The structure of the orgn.

Culture & orgnl effectiveness. Culture is essential for both successful orgnl change & maximizing the value of human capital. Cultural mgmt., should become a critical mgmt., competency. while the right culture may be a necessary condition for orgnlsucess, it is by no means a sufficient condition.

Culture & orgnl effectiveness. Orgnl culture can be used for increasing orgn effectiveness because: Culture controls the way members make decisions. The way they interpret & manage the orgn’s envmt. What they do with the information. How they behave.

Managing orgnl culture. Understand the interplay between the four factors that produce culture-the characteristics of the orgnl members ( particularly the founder & top managers)-orgnl ethics-the property rights system,& orgnl structure . Managing & changing a culture when a situation demands is difficult as the four factor interact & changes in one factoe can lead to changes in others. Major alterations are needed to change orgn’s values.

Some ways of managing orgn culture Promote the development of informal atmosphere in which people could develop strong working bonds. The co., should behave ethically towards its employees& customers.-ethics & property rights must interact & fit together to make orgn’s culture. Orgn must maintain& preserve its creative,entrepreneural values& prevent the development of inertia & complacency. Top managers must design its structure to offset control problems that occurwith large size & complexity.

multiculturism Means that people from many cultures ( frequently many countries) interact regularly build a common orgnl culturre having similar values & interests Global co’s are repositories of muticulturism. Domestic firms have many employees from different cultures& nationalities. Domestic co’s have multiculturism by choice mnc’s have it by design.

Multicultural manager characteristics. A global mindset-think- globally & act locally. The ability to work with people from diverse backgrounds:- aware of cultural differences . The ability to manage change & transition-skills to implement many orgnl changes. The ability to create systems for learning & changing orgns-coordinate complex interdependencies among business functions across national boundaries.

Multicultural manager characteristics. The talent to motivate all employees to achieve excellence-making with the orgn rather than with their country. Accomplished negotiation skills. The willingness to seek overseas assignments. An understanding of national cultures.

Cultural predispositions. Ethnocentricism: The home country’s culture is sought to be imposed on subsidiaries. MNC simply export its HR policies & practices from home office to foreign locations. Expatriates from MNC’s home country manage the affairs of the subsidiaries. Local employees occupy low-level & supporting jobs. past performance at home & technical competence govern selection criteria for overseas assignments from home office.

Ethnocentric policy justifications & disadvantages Perceived lack of competent HCN’s Need to maintain a unified corporate culture. Greater control & loyality of HCN’s. Key decisions are centralized. Disadvantages. HCN’s are denied promotional opportunities. Expatriate managers may not be able to adapt to local conditions. Expatriate managers are poorly trained for international assignments-hence make mistakes.

polycentricism MNC’s seek to adapt to local cultural needs of subsidiaries. Management policy is oriented to suit local needs. The products are customised to meet local tastes. Staffing operations outside the home country are managed by individuals from host country. In all matters relating to HR practices –appraisals –promotions etc , local needs outweigh other considerations.

Polycentricism advantages & draw backs Seeks to eliminate the high cost of relocating expatriate managers& families. Offers a degree of autonomy in decision making to subsidiaries, Subsidiary heads are in a better position to adapt to local conditions. Training costs are not high as HCN’s are engaged. HCN’s are cheaper than deputing PCN’s. Drawbacks. Tendency to lose control over susidiaries.- they become stand alone companies. HC managers lose the opportunity of exposure to overseas markets.

regiocentricism It operates the same way as polycentricism- the difference is polycentric adapts IHRM practises to countries & regiocentric to regions. Regiocentricism has similar features, advantages & limitations as polycentricism.

geocentricism Subsidiary operations are managed by best qualified individuals regardless of their nationality. Managers can be PCN’s , HCN’s or TCN’s. The capable manager can adapt to different cultures & are multilingual. Advantages Co becomes truly cosmopolitan. Global managers are able to adjust to any business envm’t.-cultural differences. Drawback. Additional costs of training& relocation of experts. Compensation is higher than HCN employees.

Cultural dimensions The basic tools for managers to analyse the cultures in which they do business; Three approaches. Globe project team. Hofstede’s model & Trompennar’s model.

Hofstede’s model This attempts to classify patterns of behaviour for individual countries without taking into account sub-cultural differences or ideological orientations. The model has changed the prevailing view of behaviour of various cultures & in particular how to understand work related values among many of world’s nations. This model is developed primarily base on differences in values & beliefs regarding work goals& forms a basis for research on cross-cultural management. Hofstede defined culture as the aggregate of values, beliefs & customs that define common characteristics of a human group. Culture therefore defines human group, much like personality explains an individual identity.

Hofstede’s-five dimensions of basic cultural values. Expectations regarding equality among people, called “ power distance”. Typical reactions to situations considered different & dangerous, called “ uncertain avoidance”. The relationship between the individual & the group in society, called “ Individualism”. Expectations regarding gender roles, called “ masculinity”. A basic orientation toward time, called “ Long-term orientation”.

Power distance It is the degree to which human inequalities are emphasised. It is the extent to which less powerful members of institutions & orgn’s accept that power is distributed unequally. Countries in which people blindly obey orders of superiors have high power distance. The basic motivational assumption in high power distance countries is that people dislike work & try to avoid it. In high power distance countries decision making is centralised. Orgn’s have tall structures. People at lower levels will have low qualifications.

Power distance High power distance countries have norms, values & beliefs – Inequality is fundamentally good. Everyone has a place ; some are high some are low. Most people should be dependent on a leader The powerful are entitled to privileges, The powerful should not hide their power.

Power distance-behavioural traits manifestations Respect for elders Corruption polarization Violence in national politics. Examples of nations which scored high on power distance: mexico,indonesia , pakistan, india ,france,Japan & brazil. US, Austria,ireland newzealand & norway represent cultures with low power distance.

Uncertain avoidance . This dimension reflects the degree to which ambiguity prompts anxiety in society. Is the extent to which people feel threatened by ambiguous situations,& have created beliefs & institutions that try to avoid these. Countries with citizens who do no like uncertainty tend to have a high need for security & a strong belief in experts & their knowledge. Countries with low uncertainty avoidance have people who are more willing to accept risks associated with the unknown, & that life must go on inspite of this

Uncertain avoidance countries – norms , beliefs-accept that Conflict should be avoided. Deviant people & ideas should not be tolerated Laws are very important & should be followed. Experts & authorities are usually correct. Consensus is important.

Manifestations of countries with high uncertainty avoidance cultures. Have great deal of structuring of orgn’l activities. More written rules. Less risk taking managers. Low labour turnover Less ambitious employees. The opposite is true for countries with low uncertainty avoidance culture. these type of orgn’s encourage employees to take initiative, assume responsibility for their actions.

Categorization of countries based on their power distance(PC) & uncertainty avoidance.(UA) Small PC weak UA Nordiccountries. (finland,iceland, scandinavia ) Anglo countries. USA,netherlands Large PC weak UA. China,hongkong, singapore.india, bangladesh, indonesia& Malaysia. Small PC strong UA german speaking countries,hungary, Israel. Large PC strong UA Taiwan,thailand, pakistan. latin countries E-europe,japan,korea

Individualism This dimension is the degree to which independent initiative is valued relative to collective effort. It is a tendency of people to,look after themselves & their family only . the opposite of this is collectivism which refers to the tendency of people to belong to groups & look after each other in exchange for loyalty. A culture high on individualism would emphizise personal achievement, innovation, autonomy & adventure.

Values & beliefs which are accepted by countries high on individualism. People are responsible for themselves. Individual achievement is ideal. People need not be emotionally dependent on orgn’s or groups. In contrast collectivist societies believe that Ones identity is based on ones group identity. Group decision making is the best. Groups protect individuals in exchange for their loyality to the group.

Effect of individualism on orgn’s Favoritism shown to friends & relatives. in selecting managers is considered to be unfair & even illegal. Promotions are based on ones performance Decision making is individuals responsibility. The opposite is true in case of collectivism

masculinity It is the degree to which motivational behaviour is associated with value systems as described in masculine Vs feminine terms. This dimension is not concerned with biological contrasts, but with behaviour conveniently described in gender terms. It refers to a situation in which dominant values in a society are success, money & other material things.

Norms ,values & beliefs of high masculine cultures. Gender roles should be clearly distinguished. Men are assertive & dominant. Machismo or exaggerated maleness is good People- especially men- should be decisive. Work takes priority over othe duties ,such as family & Advancement ,success & money are important.

In highly masculine societies Jobs are clearly defined by gender. Men choose jobs that are associated with long term careers. Women choose jobs of short term nature before marriage.

Individualism is manifested by GNP per capita; Faster walking; Weak family ties & Frequency of using the word “I” Masculinity is seen as: Assertiveness Performance vs solidarity Fewer women elected & homophobe

Country classification Collectivist, feminine Thailand,korea, veitam,indonesia, malaysia singapore, costarica,chile ,portugal,russia. Collectivist, masculine Hongkong,china, japan,phlippines,india Bangladesh, Mexico Venezueala,greece Arab world Individualist,feminine Spain,france Netherlands Nordic countries. Individualist,masculine Czech,hungary,poland Italy,german speaking Countries,anglo Countries,USA

Implications for managers on foreign assignment Adapt behaviour to be effective members of multicultural organisations. Failure is because of intercultural problems & not technical incompetence. International education , Co sponsored training orientation of expat’s have reduced failures. Achieve a conscious understanding of the cultural diversity to resolve cultural adaptation Understand the contrasting value orientations to reduce cultural shocks.

Cross cultural communication Language & culture. It determines control patterns. High & low context languages-languages in which people state things directly & explicitly are called low context & languages in which people state things indirectly & implicitly are called high context. Communication between high & low context people is a challenge for international managers.

Communication dimensions contd Use of interpreters. Non verbal communication-facial gestures , voice intonation ,physical distance, smile, batting of eyelid ,kiss , handshake, & even silence.

Effective communication across cultures practical aspects Learn the language of the host country. Learn to neutralize language accents, Be aware of the fact that cross cultural barriers do exist. Use straight forward language & speak clearly, Be sensitive to non verbal communication. Develop cultural sensitivity, Use the most common words with there most common meaning. Avoid attributing factors. Avoid slang.

Leadership across cultures Leadership is the ability to influence group members to achieve organizational goals. Traits/skills/abilities for a leader of MNC Cosmopolitan Skilled at international communication. Culturally sensitive . Capable of rapid acculturation. Knowledge about cultural & institutional influences on mgmt. A facilitator of subordinates’ intercultural performance.

Contd. Use of cultural synergy. A promoter & user of the growing world culture. A commitment to continous improvement in self awareness & renewal.- understanding & questioning oneself.

Leadership traits & behaviours & their acceptability Positive- trustworthy, just . Honest , plans ahead, encouraging, positive, good bargaining, dynamic, motivator , confidence builder, dependable , intelligent decisive , win-win problem solver, skilled communicator,informed,&team builder. Negative- loner, asocial, not cooperative,non-explicit, egocentric,ruthless, dictatorial. Culture specific- group orientation, self-protectiveness, participative skills, humaneness, autonomy,charisma,humility

Some highlights of globe findings A participative leader is more acceptable in Canada, brazil,& Australia. Americans like two kinds of leaders- those who provide employees with empowerment, autonomy& authority & those who are bold, fearful , confident & risk takers Malaysians expect their leaders to be humble , modest,dignified & group oriented. Arabs treat their leaders as heros & worship them as long as they live, Iranians expect their leaders to exhibit power & strength. The french appreciate the finer aspects of french culture ,arts & to be good in maths. The dutch are not favorable inclined to the terms leader & manager as they believe in equality

Leaders role & cultural impact. At head quarters. Visioneering.-sets the corporate vision & mission. Energizing: establishing enabling environment to achieve orgn’l objectives. Efficiency: initiating the necessary tools & practices that drive productivity Results driving for results. Rules & procedures. Country & industry specific

Leaders role & cultural impact. At subsidiary Visioneering.-enforces the corporate vision & mission & sets unit goals. Energizing: ability to emulate similar energy & have the host unit achieve its objectives. Efficiency: abilityto emulate & where necessary, deviate from parent Co’s tools & practices. Results : driving for results. Rules & procedures. Ensuring coordination & control as desired by the HO

Dimensions of multicultural management Multicultural mgmt motivation leadership communication HR practices teams Work values

Motivation across cultures Motivation refers to the way an individual engages himself or herself in need fulfilling activities. At the heart of motivation is ‘ felt needs’ which drives the individual to act. He/she selects the best course & engages in behaviors that beget rewards which help satisfy felt needs. Which needs activate the individual to act , what course of action he/she engages in & what rewards the person expects vary from culture to culture. Rich country citizens are motivated by needs like achievement, growth & realizing one’s potential. In developing countries base level needs like food clothing & shelter needs are the main motivators

Successful motivational strategies. In some societies , work is very central & absorbs much of a person’s life. All people hope to receive certain benefits from work. The benefits from the jobs vary by national context. Understand the differences among countries in the functions of work, work centrality, & the priorities given to different job characteristics. Multinational managers must understand that people from different countries have often different reasons for working & priorities regarding the important attributes of their jobs.

Work values & the meaning of work Why do people work? Providing needed income. Security. Contact with other people. Feeling of accomplishment . What do people value at work? Generous holidays. Good hours An opportunity to use initiative.. A job respected by people. A responsible job. A job in which you feel you can achieve something. A job that meets one’s abilities. Good job security, good pay.

National context & work motivation Culture & social institutions influence motivational process. Cultural values, norms, & supporting social institutions influence the priority people attach to work in general & types of need that people hope to satisfy at work. The national context also helps in defining what behaviors at work provide legitimate ways to satisfy needs. It influences reactions to goal-directed behaviors at work. They also influence the levels of satisfaction workers expect form the orgn,& how committed are they to the orgnl goals

Needs & national context . There are both similarities & divergence in the needs of people from divergent nations seek to satisfy from working. People from different nations do give the same priorities to the needs that might be satisfied at work. Even if workers from different countries have similar needs they may not give the same level of importance to satisfy these needs.

Hofstede’s dimensions of national cultur & motivators at work. Cultural context : high power distance Dominant work motivators: conform to norms & rules meet moral obligations to leader. Eg mexico Cultural context:high individualism Dominant work motivators. autonomy, challenging work , advancement. Eg USA Cultural context :High uncertainty avoidance. Dominant work motivators:security,clear orgn’l hierarchy. Eg belgium. Cultural context: high masculinity. Dominant work motivators: tgn opportunities, acheivement. Eg japan.

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