Managing Across Managing Across CulturesCultures

Definition: Involves the ability to Definition: Involves the ability to recognize and embrace recognize and embrace similarities and differences among similarities and differences among nations and cultures and then nations and cultures and then approach key organizational and approach key organizational and strategic issues with an open and strategic issues with an open and curious mind curious mind

L.DINESH M.B.AL.DINESH M.B.A

ValuesValues

CultureCulture - The dominant pattern of living, thinking, - The dominant pattern of living, thinking, and believing that is developed and transmitted by and believing that is developed and transmitted by people, consciously or unconsciously, to people, consciously or unconsciously, to subsequent generations. subsequent generations.

Cultural valuesCultural values - Those consciously and - Those consciously and subconsciously deeply held beliefs that specify subconsciously deeply held beliefs that specify general preferences, behaviors, and define what is general preferences, behaviors, and define what is right and wrong. right and wrong.

L.DINESH M.B.AL.DINESH M.B.A

CHARACTERISTICS OF CULTURECHARACTERISTICS OF CULTURE

Innovations & risk takingInnovations & risk taking Attention to detail Attention to detail Outcome orientation Outcome orientation People OrientationPeople Orientation Team orientationTeam orientation AggressivenessAggressiveness StabilityStability

L.DINESH M.B.AL.DINESH M.B.A

HOW ORGANIZATIONAL HOW ORGANIZATIONAL CULTURE STARTS ?CULTURE STARTS ?

Develop a new idea. Develop a new idea. Bring key people together & share a Bring key people together & share a

common vision common vision Act of creation of an organization Act of creation of an organization Collaborate Collaborate Take accountability Take accountability

L.DINESH M.B.AL.DINESH M.B.A

CORE ABILITIES OF THE MANAGING CORE ABILITIES OF THE MANAGING ACROSS CULTURESACROSS CULTURES

• Understand, Understand, • Appreciate andAppreciate and• use cultural factors use cultural factors • motivate the employeemotivate the employee• Global mindsetGlobal mindset• Strong culture -> Employee behaviorStrong culture -> Employee behavior -> reduced turnover-> reduced turnover

L.DINESH M.B.AL.DINESH M.B.A

STRATEGY FOR MANAGING STRATEGY FOR MANAGING ACROSS CULTURESACROSS CULTURES

MNC strategies must address the MNC strategies must address the cultural similarities and differences in cultural similarities and differences in their varied markets their varied markets

Globalization Globalization National responsivenessNational responsiveness Need to understand the difference Need to understand the difference

consumer tasteconsumer taste Regional market -> response -> national Regional market -> response -> national

standards & regulations by governmentstandards & regulations by government

L.DINESH M.B.AL.DINESH M.B.A

Rearch on OcRearch on Oc

How Employee see the organisation in How Employee see the organisation in terms of OCterms of OC

Does it encourage teamwork?Does it encourage teamwork? Does it reward innovation ?Does it reward innovation ? Does the initiative appreciated?Does the initiative appreciated?

L.DINESH M.B.AL.DINESH M.B.A

eg.Class room cultureeg.Class room culture

• My classmates – friendly & supportiveMy classmates – friendly & supportive• My instructor – friendly & supportiveMy instructor – friendly & supportive• My instructor clearly expresses his/her My instructor clearly expresses his/her

explanation to the classexplanation to the classGrade system -> performanceGrade system -> performance

L.DINESH M.B.AL.DINESH M.B.A

CASE STUDY OF MC DONALDSCASE STUDY OF MC DONALDS Ray Kroc worked as a salesmanRay Kroc worked as a salesman

Started a sideline business with partner Took the rights for franchisee Started a sideline business with partner Took the rights for franchisee of McDonald and then bought McDonald.of McDonald and then bought McDonald.

Culture Followed in MC Donald Culture Followed in MC Donald

Four basic concepts-Quality, Cleanliness, Price & Services Four basic concepts-Quality, Cleanliness, Price & Services

Training at McDonald University Training at McDonald University

How to manage the business How to manage the business

Ray died but left the culture behindRay died but left the culture behind

“ “If you’ve got the time to lean, you’ve got time to clean”. If you’ve got the time to lean, you’ve got time to clean”.

L.DINESH M.B.AL.DINESH M.B.A