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Arab Open University Bahrain Branch Faculty of Business Studies T205 – Systems Thinking: Principles and Practice Culture and globalization A key consequence of globalization is that more and more of us are directly affected by other cultures in our work places Multi-nationals often bring in the influences of their country of origin To be able to cope with the complexity of the environment, we have no option but to filter the mass of information it bombards us with. Culture acts as an important biasing factor in the filter – we tend to adopt the filters we have learned and been brought up with and that are characteristic of the society we live in Changing culture Changing culture may involve a mixture of many ‘soft’ issues (attitudes, beliefs, strategies, etc.) and ‘hard’ issues (structures, processes, etc.). it may take a long time; it may need several change processes going on in parallel, and will need the full and active support of key people in the organization Culture-change can be accessed via: o Replacement (changing the people) Depends heavily on the availability of suitable people within the organization’s environment Using ‘fresh start’ as a chance to build new structures o Re-education (changing the way the people operate) Through training, workshop programmes, etc. o Re-design (changing organizational systems: reward, appraisal, etc.) Tend to depend on the organization’s environment, since they usually have to draw on the ideas and techniques that organizational gurus and consultants are currently offering Dimensions of national culture: Hofstede’s studies Hofstede identified four basic dimensions along which the cultures of different nations could be arranged. The four dimensions provide a useful insight into the ways in which patterns of values and attitudes can vary in quite systematic ways between nations. High vs. low power-distance o This dimension is concerned with how far the culture encourages superiors to exercise and display power o In high power-distance cultures the exercise of power is what being a boss means Working relationships are based on having power over someone, or being dependent on someone Employees are frequently afraid to express disagreement, and prefer to work for managers who take decisions (and responsibility) and tell them what to do o In low power-distance cultures Superiors and subordinates consider each other to be colleagues and have values that mean that inequality in society should be minimized Superiors are accessible because organization members are interdependent Employees are seldom afraid to disagree, and expect to be consulted before decisions are made High vs. low uncertainty-avoidance o This dimension concerns the degree to which the culture encourages risktaking o In strong uncertainty-avoidance cultures People feel threatened by uncertain situations, and experience greater anxiety and stress from them. This is countered by hard work, career stability and intolerance of deviancy There is a search for ultimate values and a great respect for age Employees agree that rules should not be broken and look forward to staying with the firm until they retire o In weak uncertainty-avoidance cultures Life’s inherent uncertainty is more easily accepted. Each day is taken as it comes and so people experience less stress There is less need for rules, and people take a very pragmatic view of keeping or changing the existing rules Individualism vs. collectivism o This dimension concerns the degree to which the culture encourages individual, as opposed to collectivist or group, concerns o In an individualist culture Identity is based on the individual. The emphasis is on individual initiative or achievement and everyone is supposed to take care of themselves plus only their immediate family Everybody has the right to a private life and opinion, and may well have only a calculated involvement with the work organization Very important to have time for personal and family life Job training carries much less value, since it increases commitment to the company o In a collectivist culture A 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 value of group decisions 2 The value standards applied to members of one’s own group, clan or organization can differ considerably from those applied to others Employees value good physical working conditions, while personal challenge in work is of little importance Masculinity vs. femininity o This dimension is based on a form of gender stereotype o In masculine cultures Performance is what counts, ambition is the driving force, and high earnings, money, material standards and the opportunity to achieve are valued Big and fast are beautiful, ‘machismo’ is admired The manager is assertive, decisive, slightly macho and ‘aggressive’ A 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 assertive and dominating, and women to be caring and nurturing A dominant woman is regarded as unfeminine – although she is allowed to be manipulative in the background o In feminine cultures It is the quality of life that matters. People and the environment are important, service provides motivation Small is beautiful The manager is less visible, intuitive rather that decisive, and accustomed to seeking consensus Sex roles in society are more flexible, unisex is attractive, and there is a belief in equality between the sexes Not considered ‘unmusculine’ for a man to take a caring role Working co-operatively may well be valued highly Living in a pleasant area is important There is less value on gaining recognition for a good job done Hofstede on internal organizational culture Hofstede argues that national culture is to do with basic values, which are instilled in individuals through socialization within the family. However, organizational culture is more to do with the attitudes and orientations associated with workplace practices. He identified six dimensions of organizational culture: Transformation orientation vs. output orientation o In transformation-oriented organizations people avoid risks and make limited efforts in their jobs o In output-oriented organizations people put in a large effort and are ready to take on new challenges People orientation vs. task orientation 3 o A people-oriented culture will encourage concern for personal and group welfare o A task-oriented culture will be concerned with getting the job done Organizational orientation vs. occupational orientation o Organizational orientation is where employees identify themselves primarily as employees of a particular organization o Occupational orientation is where employees tend to identify themselves by their job, occupation or profession Open vs. closed communication climate o In an open climate information is easy to find and communication is clear and straightforward. The organization is accessible to outsiders, and new people find it easy to settle in o A closed climate tends to be secretive, with only special people who have been there a long time, fitting in Loose vs. tight internal control structure o In tight organizations, costs are closely controlled, meetings are punctual and jokes about the organization are rare o Loose organizations tend to have a more relaxed atmosphere Normative vs. market (i.e. customer) driven orientation o In normative cultures, complying with organizational procedures and meeting high standards of honesty and ethics are regarded as crucial o In the market-driven cultures, priority is given to understanding and meeting customers’ demands and achieving results, and doing whatever is needed to achieve this Hofstede’s analysis of cultural dimensions can serve various practical purposes: It can help you, as an individual, to reflect on where you stand on each dimension It can help to describe and explain practices in organizations other than your own It is usually easier to plan changes in ways that are likely to go with the culture, rather than across it Knowledge management (four modes of knowledge conversion) Two types of knowledge Tacit knowledge (e.g. intuitions, unarticulated mental models and embodied technical skills) Explicit knowledge (i.e. a meaningful set of information articulated in clear language, including numbers or diagrams) These two types of are mutually complementary. They interact with one another and may be transformed from one type to another through individual or collective human creative activities Dynamic theory of organizational knowledge o ‘New organizational knowledge is created by human interactions among individuals who have different types (tacit or explicit) of knowledge’ 4 Tacit knowledge Tacit knowledge Tacit knowledge Tacit knowledge Socialization Externalization Internalization Combination Explicit knowledge Explicit knowledge 5 Explicit knowledge Explicit knowledge Four modes of knowledge conversion Four modes of knowledge conversion o Socialization Private experiences become shared You need to arrange situations where participants share a common experience at the same time and the same place Tacit knowledge has two dimensions Technical: young apprentices work with old master craftsmen, thereby acquiring technical skills through observation, imitation and practice Cognitive: by setting up informal meetings outside the workplace, where participants chat over a meal. Through this informal process they create common tacit knowledge o Externalization Tacit, unarticulated knowledge is converted into explicit concepts by using metaphors, analogies, concepts, hypotheses or models o Combination Isolated bits and pieces of new or existing explicit knowledge become combined into an integrated and systemic package of knowledge such as a set of specifications for a new product prototype This mode starts with linking different bodies of previously independent explicit knowledge. But it can also start from the other end o Internalization Explicit knowledge is converted into tacit, operational ‘hands-on’ know-how, e.g. from ‘learning by doing’ The knowledge spiral Organizational knowledge is created through what we call a knowledge spiral across these four modes of knowledge conversion. A knowledge spiral may start from any mode, but usually begins with socialization. 6 List of readings and resources: 1. Concept file 5 (Networks): - Readings 2, 3, 4, 5, 6 & 7 7