A power point presentation on impact of Globalization on organization culture


Editor - CoolAvenues Jan 13,2014

 A power point presentation on impact of Globlization on organization culture.

Embedded Scribd iPaper - Requires Javascript and Flash Player
Impact of Globalization on organizational culture
Contents ……
Organisational culture Globalisation Impact of Globalisation on organizational culture Case studies Conclusion
Organizational culture
 The set of values, guiding beliefs, understandings, ways of thinking, and norms shared by members of an organization.  The result of common learning experiences.
 Affects the regulates the way members of the organization think, feel and act within the framework of the organization.
 Functions of culture
 Internal integration  External adaptation
Emergence of Culture
Generally begins with a founder or early leader who articulates and implements particular ideas and values as a vision, philosophy, or business strategy. When these ideas and values lead to success, they become institutionalized and an organizational culture emerges that reflects the vision and strategy of the founder or leader. Culture is dynamic and evolves with new experiences
The Strength of Culture
 The degree of agreement among members about the importance of specific cultural values, beliefs, norms.
 The degree to which cultural elements (values, beliefs, norms) are shared by members.  Subculture
Culture is strong only when there exist both intensity and consensus.
Corporate Cultures
Family culture
Emphasizes personal, face-to-face relationships
Hierarchical with authority structure based on power differentials commonly experienced between parents and children
Eiffel Tower culture
 Emphasizes division of labor and coordination through hierarchy of authority  Relies on planning to accomplish its goals
Guided missile culture
 Egalitarian, impersonal, task oriented
Incubator culture
 Attempts to minimize organizational structure and culture
What Organizational Culture Does
 Provides an external identity  Creates a sense of commitment  Acts as source of high reliability  Defines an interpretive scheme  Acts as a social control mechanism
 Can create barriers to change  Can create conflict within the organization  Subcultures can change at different rates than other units  Can clash when two companies merge  Can become "cultural Tower of Babel"
Some Underlying Dimensions of Organizational Culture Dimension
1. The organization’s relationship to its environment
Questions to be answered
Does the organization perceive itself to be dominant, submissive, harmonizing, searching out a niche? Is the “correct” way for humans to behave to be dominant/proactive. harmonizing, or passive/fatalistic?
2. The nature of human activity
3. The nature of reality and truth
How do we define what is true and what is not true; and how is truth ultimately determined both in the physical and social world?
Questions to be answered
4. The nature of time
What is our basic orientation in terms of past, present, and future, and what kinds of time units are most relevant for the conduct of daily affairs? Are humans basically good, neutral, or evil, and is human nature perfectible or fixed?
5. The nature of human nature
Questions to be answered
6. The nature of human relationships What is the “correct” way for people to relate to each other, to distribute power and affection? Is life competitive or cooperative? Is the best way to organize society on the basis of individualism or groupism? Is the best authority system autocratic/paternalistic or collegial/participative? 7. Homogeneity versus diversity Is the group best off if it is highly diverse or if it is highly homogeneous, and should individuals in a group be encouraged to innovate or conform?
National and Global Culture
Relationship between national and corporate culture complex “Logic of industrialization" may affect all organizations the same way
National culture and other elements in an organization's environment may determine internal organizational culture Globalization also affects organizational culture
Globalization – The difficult issue
Physical World becomes smaller Expatriates Global Companies Business Travelers Virtual Internet Mobile Communication
 Globalization: This characteristic of the Cybernetic Revolution qualifies the tendency of any entity/activity/technology to acquire a dimension that grows beyond any "frontier" that would be imposed by such criteria as geography, culture, religion, gender, age, etc. Anything and/or anybody can have a worldwide impact.
Barriers / Challenges to Managing Diversity
 Inaccurate stereotypes and prejudice  Ethnocentrism  Poor career planning  Unsupportive and hostile work environment  Lack of political savvy by diverse workers  Balancing career and family issues  Fears of reverse discrimination  Diversity not seen as a priority  Outdated performance appraisal and reward systems  Resistance to change
Competitive Advantages of Managing Diversity
 Lower Costs and Improved Employee Attitudes  Improved Recruiting Efforts  Increased Sales, Market Share and Corporate Profits  Increased Creativity and Innovation  Increased Group Problem-Solving and Productivity
Approaching Globalization at two levels The corporate level – A Global Corporate Culture
The individual level – A Global Identity
Global Corporate Culture:
The shared understanding of the visible rules, regulations and behaviors, and the deeper values and ethics of the global work context, beyond national borders
Study Question : Why is globalization significant for organizational culture?
 Forces of globalization.  Rapid growth in information technology and electronic communication.  Movement of valuable skills and investments.  Increasing cultural diversity.  Implications of immigration.  Increasing job migration among nations.  Impact of multicultural workforces.
 Culture.  The learned, shared way of doing things in a particular society.  Helps define boundaries between different groups and affects how their members relate to one another.  Cultural intelligence is the ability to identify, understand, and act with sensitivity and effectiveness in cross-cultural situations.
Why is globalization significant for organizational ?
 Outsourcing.
 Contracting out of work rather than
accomplishing it with a full-time permanent workforce.
 Off shoring.
 Contracting out work to persons in other
 Job migration.
 Movement of jobs from one location or country to
another. Organizational Behavior:
Global Work Context  Geographical dispersion
Global Values
 High Interdependence -Networks  Openness to Diversity  Trust & Ethical Behavior  Low Power Distance (Partnership)
 Cultural Diversity
 High Uncertainty
 Openness to Change  Learning
 Competitive Performance  Quality and Innovation  Customer Orientation
 Global Competition
 Threat to one’s cultural Identity –  People focus Getting Lost
Cultural Interface: How Local Subsidiaries & Employees Adapt to the Global Corporate Context?
How to bridge between Cultural icebergs?
International Alliances MNC International Mergers & Acquisitions
The Functional role of values: Adaptation to the Environment
The Functional role of values: Adaptation to the Environment More competition Balanced workforce Flexible working hour Desire to outperform other Intelligent recruiting
Cultural Adaptation
(Berry, 1992)
Attractiveness to the Global Corporate Culture
Preservation of Own Values
High High Low Integration Glocal Separation
Low Assimilation
Key success factors (KSFs) affecting structural cooperations outcome
Business environment
Deal strategy
National culture
Deal motivations Proceeding of the deal Organizational culture
Enhancing success in Structural Cooperations - a system model
Synthesis Integration
KSFs Success
Identifying gaps in KSFs is a necessary but insufficient action for success
How does globalization affect people at work?
 Multinational employers.  Multinational corporation (MNC).
A business firm that has extensive international operations in
more than one foreign country.
 MNC characteristics.
Missions and strategies are worldwide in scope. Has a total world view without allegiance to any one national
home. Has enormous economic power and impact.
Organizational Behavior:
How does globalization affect people at work?
 Multicultural workforces.  Styles of leadership, motivation, decision making, planning, organizing, and controlling vary from country to country.  Domestic multiculturalism.
Describes cultural diversity within a specific national
population. Reflected in the workforces of local organizations.
Organizational Behavior:
How does globalization affect people at work?
 Ethical behavior across cultures.  Ethical challenges result from:
Cultural diversity. Variations in governments and legal systems.
 Prominent current issues:
Corruption and bribery. Poor working conditions. Child and prison labor. Support of repressive governments.
Organizational Behavior:
How does globalization affect people at work?
 Ethical behavior across cultures — cont.  Cultural relativism.
The position that there is no universal moral standard. Ethical behavior is determined by cultural context.
 Ethical absolutism.
The position that there is a single moral standard that fits all
situations. Ethical behavior transcends cultural context.
Organizational Behavior:
Adaptation to Cultural Interface by
 Developing Global Corporate Values  Acceptance of Diversity  Interdependence  Openness to change  Balancing the global corporate values with the local cultural values.  Think Global Interact Local  Creating a sense of belongingness to the MNC and strengthening employees’ Global Identity  Creating opportunities for involvement in global activities  Facilitating the integration/Duality of a Global and a Local Identity by a supportive corporate culture
Impact of Globalisation on Indian Organisation Culture.
24x7 Organisations Customer Centric Approach Organic to Inorganic Growth Competitive work environment. Work Force Diversity. Technology Friendly Organisation Professionalism
Impact of Globalisation on Govt. Organisations Culture.
Babu’s (Govt. Officers) are becoming Manager’s. Professionalism(Greater work Efficiency). Single Window System.(Faster execution of Work). Profit Generation and self-reliance are equally importance as social obligation.
Case Study on SBI Impact of Globalisation on Organisation Culture e-Banking ,Core Banking(Adaptation of Technology) Professionalism among employee. Flatter Organisation structure. Customer Centric Approach. Competing with Private Player (Competitiveness). Good Physical work settings.
Before Globalization  Did not want to execute overseas projects.  Image of Company was not a Important Issue for the Company.  Did not want to compete with Private Player.  Rely on Government money for operation and expansion.  Professionalism was Missing among employee.  Company did not bother about Share Price and Share Holders.
After Globalisation  Global Expansion with JV’s with Foreign Companies.  Global Organisation with Corporate Global culture.  Image of Company is Equally Important.  Directly Competing with Private Players.  Professionalism  Profit Generation is equally Important as social obligation.  Company is highly sensitive to Market Capitalization and Shareholders.
CONCLUSION Globalisation is influencing significantly to organisational culture and a new corporate global culture is emerging. Global organsations are expanding rapidly with highly competent and diversified workforce. Now organisational culture is highly professional and competetive.
BOOKS Organisational Behaviour by Stevenson Robinson WEBSITES  www.wikipedia.com/globalisation accessed on April 4,2008  www.wikipedia.com/organisational_cultural accessed on April 4,2008  www.google.com/9.OrganizationalCulture_TN, “Strategic Management: Competitiveness and Globalisation” by R. Dennis Middlemist, accessed on April 4,2008  www.google.com/12.ppt, “Global Dimensions of Organisational Behaviour” by Micheal K. McCuddy accessed on April 5, 2008  www.google.com/ch03.ppt, “Organisational Behaviour Across Cultures” by Micheal K. McCuddy accessed on April 5,2008  www.google.com/chapter-13.ppt, “Org Culture”, by Gang Li , accessed on April 6,2008
 http://www.theliffepress.com/Corporate%20Culture%20&%20White%20 Collar%20Crime.htm April 6, 2008  www.google.com/OB270402Globalization.ppt, “Impact of Globalisation on Organisional Behaviour”, by Lukas Ritzel, accessed on April 6,2008  www.google.comPeterHarmsworth.ppt, by Ben Crokpitt, accessed on April 6,2008  www.sbi.co.in accessed on April 6,2008  www.ongcindia.com accessed on April 6,2008