Cross-

Cultural
Managemen
t
– Part Two –
Culture and Organization
Organizational Structure
Key Takeaways
 It talks about how the members of the organization relate to
each other, to their work.

 Organizational Structure is one of the most important

factors determining business performance. It dictates how
things are done in an organization, and it can be a powerful
force for good or bad.

 Successful organizational structures define each employee's

job and how it fits within the overall system. Put simply, the
organizational structure lays out who does what so the
company can meet its objectives.

 Not having proper organizational structure, employees may

face difficulties while reporting.

 Having a structure in place can help with efficiency and

provide clarity for everyone at every level. That also means
Organizational Structure
(Continuance)
Basic Model of Organizational Structure

Geographic Structure
• Employees are grouped according to region or organized geographically ( in
sense of multinationals organization).
• HQ maintain control of “strategic planning” to each subsidiaries.
Organizational Structure
(Continuance)
Basic Model of Organizational Structure

Functional Structure
• Dividing the firm into departments
• A person with the highest of responsibility position on the top and followed
with the employee according to the skills and specialty and each department
manage independently. • Functional organization allows
employee to focus on their own roles
and help teams and depts to feel self-
determine.
Organizational Structure
(Continuance)
Basic Model of Organizational Structure

Product Structure
• This model is organizing their staff according to the product lines and turn to
group according to the product divisions.
• All the functions relating to the
product being sold and the market
being served are controlled per each
divisions.
Organizational Structure
(Continuance)
Basic Model of Organizational Structure

Mixed Structure (Hybrid

Structure)
• It allows different structures to be combined, ie : functional division with product
division.
Organizational Structure
(Continuance)
Basic Model of Organizational Structure

Matrix Structure
• A matrix organization a company structure where team report to multiple leaders.
Effectively, it means that the employees of the organization have more than one
boss. • It allows the sharing of skilled
resources between functional units
and projects.

• It fosters better cross-functional

communications, which improves
team collaboration and builds a more
dynamic organization.

• This structure is great for employees

who are looking to widen their
experience and skill sets. It puts them
in an environment that facilitates
Organizational Structure
(Continuance)
Basic Model of Organizational Structure – Modern Concept

Network Structure
• Managers in this structure spend most of their time coordinating and controlling
external relation.

• Network organizational structures work for businesses that employ freelancers,

subcontractors, and vendors dispersed between satellite offices.

• It makes sense of the spread

resources

• It focuses more on open

communication rather than hierarchy
and allows companies to be more
flexible.

• It gives employee the power of

collaborate and make decision.
Organizational Structure
(Continuance)
Basic Model of Organizational Structure – Modern Concept

Transnational Structure
• Aims to make best use of specialist functional skills (i.e : HR ) in “shared-service”
but with growing complexity and interdependent.
• Knowledge is developed jointly and
shared worldwide.

• Contribute to integrate worldwide

operations
Corporate Culture

Key Takeaways
 Culture : How we do things around here!

 What is cultural brand of your place?

 Corporate culture is the collective behavior of people

using common corporate vision, goals, shared values,
beliefs, habits, working lingo, systems and symbols.

 Culture is shaped by : Corporate vision, shared values,

beliefs, Assumptions, past experiences, Learning,
Leadership and Communication.

 A company's culture will be reflected in its dress code,

business hours, office setup, employee benefits, turnover,
hiring decisions, treatment of clients, client satisfaction,
and every other aspect of operations.
Corporate Culture
(Continuance)
Corporate Culture Type
 Organization is composed of individual with different personalities who form and share a
culture.

 It talks about the ‘organizational relationship” between employees, employees and their
superiors and the relation within the group as a whole.

 Trompenaars and Wolliams ( 2003) come up with the “Four Culture Types” which is :

• Strictly hierarchical and focuses on the execution of

instructions from leaders
• The initiative and efforts of subordinates should correspond to
the leadership’s goals.
• Decisions, abilities, and even the mood of a leader determine
everything.
• Moreover, leaders conduct a policy of approaching themselves
often. That means they are carefully observing employees and
giving them broader powers after they prove their loyalty.
Corporate Culture Type
(Continuance)

• Standard feature of hierarchical, bureaucratic, and functional

companies
• Leaders regulate everything in companies, and they assign
roles and responsibilities; everyone acts are based on
instructions and stated rules.
• Unlike the family, personal relationships do not count, and
close friendships are rare.
• Country by example: France, Austria and Germany
• Has low degree of centralization and high degree on
formalization.
• Focus on the power of knowledge/expertise
• Commitment to tasks and pay for performance
• Country by example : Great Britain, USA, Norway

• Person-oriented and self-fulfillment of people as individuals

comes above organizations.
• Focus on self-realization and creativity (out of routine and out
of the box).
• It is an egalitarian culture, which cultivate equality.
•
Culture and Corporate Strategy
 Organizational strategy is influenced by the culture
set in the organization.

 A company’s culture is what determines the attitude

and the behaviors of any employee in a given
situation.

“Culture eats strategy for  Changing the strategy  HUMAN! Culture is HUMAN!
breakfast”
 Essential Element in implementing strategy :
1. Building an organizational culture which
facilitates and accelerates change.
2. Maintain a sense of personal accountability and
ownership towards strategy executions, from
head to toe levels.

 The most effective organizations understand

that simply writing a strategic plan does not
guarantee success – it is just a vision.
Cultural Change in Organization
Type of Change :

1. External
 Gov’t Rules and Regulations
 Competition ( Challenges posed by
competitors to survive in the market)
 Technological Advances – rapid changes of
updated technologies causes an organization
to change)
 Change in people requirements.

2. Internal
 Change in Leadership
 Merger or Acquisition
 For meeting crisis ( self-assessment to
overcome the crisis before it occurs).
Culture and Leadership

Key Takeaways
 A cultural leader defines and uses signals and symbols to
influence corporate culture.

 Cultural leaders influence culture in two key areas : Vision and

Action
a. Vision : the leader address a vision for the organizational
culture that employee can believe in, means the leader
needs to define and communicate the central values that
employee can rely on.
b. Action : the cultural leader heeds the day-to-day activities
that reinforce the cultural vision. Make sure that work
procedure & rewards system are match and reinforce the
value. Action speak louder than words, so the cultural
leader “WALK THEIR TALK”.

 A leader take responsibility for shaping and managing

Different Conceptions of Leadership

 Douglas McGregor, an American social psychologist created two theories on

human motivation and management in the 1960s “ The X and Y Theory” (1) –
Manager’s viewpoint.

 Called as “transactional leader” traditional leader who was more of a “biz like”
relation to subordinates, give-and-take approach.

 Theory X assumes the employee are unmotivated, lazy, hate working and must be
supervised constantly throughout the day for work to get done.
 Theory X the managers and supervisors called as “Micro Manager”. The Micro Managers
believes they must oversee every single tasks assigned to the employee, and they
believe that the employee will try to avoid work and must be forced with the threat of
punishment in order to do their job and pessimistic to their subordinates.
 The authority is rarely delegated, and control remains firmly centralized and largely
 fallen
TheoryoutY of fashionthe
assumes in recent times.
employee are happy to work, are creative and enjoy taking an
additional duties.
 Theory Y, the managers and supervisors called as “hands-off manager”. The hands-off
manages has an optimistic, positive opinions to their people, and they tend to use a
decentralized and participative management style.
 This encourages a more collaborative, trust-based relationship between managers and
their team members.
Different Conceptions of Leadership

 William Ouchi, a Japanese Management professor which born and educated in US.“ The Z
Theory(2) – attitudes and responsibility of subordinates.

 This theory Z is a development beyond theory X & Y, they blended the best of eastern and
western management practices. First appeared of Ouchi's theory in 1980s “the theory Z’s book –
how American management can meet the Japanese challenge.

 Called as “transformational leader” communicate and embodies a vision that can influence
changes in the attitudes and assumptions of subordinates, build their commitment to the
organization and inspires trust, confidence and loyalty”.
Assumption about workers :
Principals :
• Employees seek to build cooperative
• Collective-decision • Focus on training
and intimate working relationships with
making • Care for personal
their co-worker.
• Long-term circumstances
• Employees expect reciprocity and
employment • Formalize measures
support from the company.
• Job rotation • Individual responsibility
• When given the right management
• Slow promotion
support, employees can be trusted to
do their job
Global Leadership Dimension Scale
Global Leadership Dimension Scale
(Continuance)
Conflict Inducer : a conflict
inducer is an individual who
interacting with others might
generate (induce) conflict

As a strong person structured

toward masculinity, elitism,
risk taking, selfish,
individualistic, exercising
power and dominance.

Cooperation Inducer: an
individual who interacting
with the others might
generate (induce)
cooperation.
Culture and International Marketing Management

Key Takeaways
 In order for firms to have a competitive edge in
international bussiness, they have to understand the
differences in culture.

 There is no best choice of standardization strategy for multi-

national companies, due to cultural differences.

 The cultural diffusion is the matter in Global Marketing.

Cultural Diffusion is the ability of company to merge its
host’s nation culture OR cultural characteristics (lingo,
foods, etc… ) are spread within or between cultures or
communities.
Culture and International Marketing Management
(Continuance)

Culture barriers in cross-border market:

 Lingo, barrier to communicate

 Religion, impact on consumer behavious,

purchasing pattern and lifestyle.

 Education, shows the literacy level in term of

product usage and appreciation

 Law and policies, shows the customs and rules

applicable and acceptable for the people.

 Technology, shows how sophisticated of the people

and readiness for innovation
Cultural Diversity in Organizations
Key Takeaways
 Cultural diversity is when differences in race, ethnicity,
language, nationality, religion, and sexual orientation are
represented within a community

 Bartlett and Goshal (1989) introducing the applicable type

of globalization company : “The Transnational” is a
management mentality combining the abilities of the
multinational, global or international firm : flexibility,
efficiency and the transfer of knowledge.
Cultural Diversity in Organization
(Continuance)

Diversity-Related Problems Diversity-Related

Advantages
o Increased ambiguity
o Increased complexity and confusion o Improve moral
o Difficulty to converge meanings and o Broader perspective and resources
miscommunication o Help companies establish roots and
o Lower cohesiveness develop business in foreign
o Harder to reach agreement markets.
o Harder to make decisions and agree on o Increased creativity and problem-
specific actions solving skills
Cultural Diversity in Organization
(Continuance)
Diversity Initiatives :
 Performance and Accountability
 Communications:
 Link rewards to achieving diversity
 CEO Speeches objectives
 Written diversity policy; diversity  Monitor and report on diversity progress
brochures  Employee Involvement
 Second lingo publications
 Press releases
 Task forces on diversity
 Career Development  Company time provided for diversity
planning
 Mentoring  Networking group
 Individual development plans
 Assign people to diverse jobs  Education and Training

 Diversity briefings for managers

 Awareness training for every staff
 Diversity skills training
 Multicultural team training
 Sexual harassment training