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Presented By:

Aman Agrawal (68)

Amandeep Singh(69)
Amir Ahmed(70)
Amit Prakash (71)
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 Ôefining organizational culture
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 4mpact of culture
Culture gives identity, provides collective commitment, builds
social system stability and allows people to make sense of the
organization (Sannwald, 2000)
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 _he Blame culture:_his culture cultivates distrust and fear.
 Multi-directional culture:_his culture cultivates minimized cross-
department communication and cooperation
 Live and let live culture:_his culture is Complacency, it manifests
Mental Stagnation and Low Creativity.
 Brand congruent culture:People in this culture believe in the product or
service of the organization, they feel good about what their company
 Leadership enriched culture:People view the organization as an
extension of themselves, they feel good about what they personally
achieve
 ¢
_he Paradigm: What the organization is about; what it does; its mission; its values.
Control Systems: _he processes in place to monitor what is going on. Role cultures
would have vast rulebooks. _here would be more reliance on individualism in a power
culture.
Organizational Structures: Reporting lines, hierarchies, and the way that work flows
through the business.
Power Structures: Who makes the decisions, how widely spread is power, and on
what is power based?
Symbols: _hese include organizational logos and designs, but also extend to symbols
of power such as parking spaces and executive washrooms.
Rituals and Routines: Management meetings, board reports and so on may become
more habitual than necessary.
Stories and Myths: build up about people and events, and convey a message about
what is valued within the organization.

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 ofstede groups national cultures along

dimensions meaningful to business:
 Work related values not universal
 National values may persist over MNC efforts to
create culture
 Local values used to determine  policies
 MNC may create unnecessary morale problems
if it insists on uniform moral norms
 Starting point for understanding of business
situations across-cultures
 Effective international managers MUS_
understand own culture ANÔ other culture(s)
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ë Culture is more often a source of conflict than of synergy. Cultural
differences are a nuisance at best and often a disaster.ë Prof. Geert
ofstede, Emeritus Professor, Maastricht University.
Application on cultural differrences
For those who work in international business, it is sometimes amazing how
different people in other cultures behave. We tend to have a human instinct
that 'deep inside' all people are the same - but they are not. _herefore, if we
go into another country and make decisions based on how we operate in our
own home country - the chances are we'll make some very bad decisions.
Geert ofstede's research gives us insights into other cultures so that we can
be more effective when interacting with people in other countries. 4f
understood and applied properly, this information should reduce your level of
frustration, anxiety, and concern. But most important, Geert ofstede will give
you the 'edge of understanding' which translates to more successful results.
 CON_Ô««««.
example
 One example of cultural differences in business is between the Middle
Eastern countries and the Western countries, especially the United States.
 When negotiating in Western countries, the objective is to work toward a
target of mutual understanding and agreement and 'shake-hands' when
that agreement is reached - a cultural signal of the end of negotiations and
the start of 'working together'.
 4n Middle Eastern countries much negotiation takes place leading into the
'agreement', signified by shaking hands. owever, the deal is not complete
in the Middle Eastern culture. 4n fact, it is a cultural sign that 'serious'
negotiations are just beginning.
CON_Ô««.
„

 Power Ôistance 4ndex (PÔ4)
 _hat is the extent to which the less powerful members of organizations accept and
expect that power is distributed unequally. _his represents inequality . Power and
inequality, of course, are extremely fundamental facts of any society and anybody with
some international experience will be aware that 'all societies are unequal, but some
are more unequal than others'.
 4ndividualism (4Ô
) on the one side versus its opposite, collectivism,
 On the individualist side we find societies in which the ties between individuals are
loose: everyone is expected to look after him/herself and his/her immediate family.
 On the collectivist side, we find societies in which people from birth onwards are
integrated into strong, cohesive in-groups, often extended families (with uncles, aunts
and grandparents) which continue protecting them in exchange for unquestioning
loyalty.
 CON_Ô«..
  
  
 

 4t refers to the distribution of roles between the genders which is
another fundamental issue for any society to which a range of
solutions are found. _he 4BM studies revealed that (a) women's values
differ less among societies than men's values; (b) men's values from
one country to another contain a dimension from very assertive and
competitive and maximally different from women's values on the one
side, to modest and caring and similar to women's values on the other.
 _he assertive pole has been called 'masculine' and the modest, caring
pole 'feminine'.
 _he women in feminine countries have the same modest, caring
values as the men; in the masculine countries they are somewhat
assertive and competitive, but not as much as the men, so that these
countries show a gap between men's values and women's values.
CON_Ô««
 Uncertainty Avoidance 4ndex (UA4)
 4t deals with a society's tolerance for uncertainty and ambiguity
 it ultimately refers to man's search for _ruth.
 4t indicates to what extent a culture programs its members to feel either
uncomfortable or comfortable in unstructured situations.
 Unstructured situations are novel, unknown, surprising, different from usual.
Uncertainty avoiding cultures try to minimize the possibility of such
situations by strict laws and rules, safety and security measures.
 People in uncertainty avoiding countries are also more emotional, and
motivated by inner nervous energy.
 _he opposite type, uncertainty accepting cultures, are more tolerant of
opinions different from what they are used to; they try to have as few rules
as possible, and on the philosophical and religious level they are relativist
and allow many currents to flow side by side.
CON_Ô«..
 Long-_erm Orientation (L_O) versus short-term orientation:
 this fifth dimension was found in a study among students in 23
countries around the world, using a questionnaire designed by
Chinese scholars 4t can be said to deal with
irtue regardless
of _ruth.

alues associated with Long _erm Orientation are thrift and
perseverance.
 values associated with Short _erm Orientation are respect for
tradition, fulfilling social obligations, and protecting one's
'face'.

  !!

 Not just R¶s business, 4t¶s everybody¶s business
 Can we risk the consequences of intolerance?
By Stephanie uappe and Giovanna Cantatore
 uappe and Cantatore discuss the dynamics of cultural
differences in today¶s workplace.
 Whether cultural differences will be a help or hindrance to the
building of a global village is increasingly a key issue for everyone
in today¶s environment.
 What is the challenge?
_he challenge for R professionals is to understand and leverage cultural
diversity as powerful resource for increasing productivity and meeting the needs
of the global market on a daily basis.
_o many, this means getting the results that  wants. But this perspective is
not the only reality.

 Why? Because people are threatened by differences they can not

understand. Cultural diversity within any team can be identified as a key
factor in the evolution of conflicts.
4gnoring cultural differences diminishes our ability to manage them.
_he emerging needs:
Since a multicultural workforce is a reality, it is crucial for the members of the
organization to:
- Perceive and understand the nature of cultural differences.
- Understand their own cultural assumptions and behaviours.
- Understanding others¶ cultural assumptions and behaviours.
-See how these differing assumptions can create multicultural conflicts that
cost time, money and efficiency.

_he emerging multicultural society poses new questions:

ow can we understand each other better?
ow can we avoid misinterpretations?
ow can we manage our differences?
ow can we use our differences to produce creative solutions for the
organization?
_he new attitude:

4t is time to understand that valuing cultural differences is everybody¶s

responsibility, not just that of a selected few.

Every employee needs to understand his/her participatory role within the

organization and society at large.

Ôowell, 4nternational Growth Strategies and Structured Responses:

Ethnocentric means that few foreign subsidiaries have any autonomy, strategic
decisions are made at  s, key jobs are held by  s management personnel,
subsidiaries are managed by expatriates. Geocentric means that the
organization ignores nationality in favor of ability, accompanied by a worldwide
integrated business strategy

  "
 ïc# $

Workplace diversity refers to the variety of differences between people in an
organization. _hat sounds simple, but diversity encompasses race, gender, ethnic
group, age, personality, cognitive style, tenure, organizational function, education,
background and more.
Ôiversity not only involves how people perceive themselves, but how they perceive
others. _hose perceptions affect their interactions. For a wide assortment of employees
to function effectively as an organization, human resource professionals need to deal
effectively with issues such as communication, adaptability and change.
Benefits of Workplace Ôiversity
An organization's success and competitiveness depends upon its ability to embrace diversity
and realize the benefits. When organizations actively assess their handling of workplace
diversity issues, develop and implement diversity plans, multiple benefits are reported such as:
 4ncreased adaptability

 Broader service range


ariety of viewpoints

 More effective execution



  % &   ï  
_aking full advantage of the benefits of diversity in the workplace is not without its challenges.
Some of those challenges are:
Communication - Perceptual, cultural and language barriers need to be overcome for diversity
programs to succeed. 4neffective communication of key objectives results in confusion, lack of
teamwork, and low morale.
Resistance to change - _here are always employees who will refuse to accept the fact that the
social and cultural makeup of their workplace is changing. _he ëwe've always done it this wayë
mentality silences new ideas and inhibits progress
'' % &   (  
 :
Ward off change resistance with inclusion. - 4nvolve every employee possible in
formulating and executing diversity initiatives in your workplace.
Foster an attitude of openness in your organization. - Encourage employees to
express their ideas and opinions and attribute a sense of equal value to all.
Promote diversity in leadership positions. - _his practice provides visibility and
realizes the benefits of diversity in the workplace.
Utilize diversity training. - Use it as a tool to shape your diversity policy.
 SUMMARY OF CASE S_UÔY
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4N _4S CASE S_UÔY, _ERE ARE _WO ORGAN4A_4ON ± SOU_WES_ A4RL4NE ANÔ
ALUE
L4NE
CEO OF SOU_WES_ A4RL4NE± ERBER_ KELLEER
CEO OF
ALUE L4NE--- JEAN BU__NER

Ôifferences between the culture between southwest airline and value line
CUL_URE FOLLOWEÔ 4N SOU_WES_ A4RL4NE
1 FOUR _4MES A YEAR SOU_ WES_ MANAGERS WORK AS BAGGAGE ANÔLERS, _4CKE_
AGEN_S, ANÔ FL4G_ A__ENÔAN_S SO _A_ _EY GE_ A F4LL FOR _E PROBLEMS
FAC4NG O_ER EMPLOYEES
2 AN 4NFORMAL NORM MAKES 4_ POSS4BLE FOR EMPLOYEES _O GA_ER W4_ KELLEER
E
ERY FR4ÔAY A_ NOON 4N _E COMPANY¶S ÔALLAS PARK4NG LO__ FOR A COMPANY
COOK OU_.
2 KELLEER KEEPS _E ORGAN4SA_4ON AS FLA_ ANÔ 4NFORMAL AS POSS4BLE, ANÔ
MANAGERS ENCOURAGE EMPLOYEES _O BE CREA_4
E ANÔ _O ÔE
ELOP RULES ANÔ
NORMS _O SOL
E _E4R OWN PROBLEMS
3 _O PLEASE CUS_OMER, FOR EXAMPLE, EMPLOYEES ÔRESS UP ON SPEC4AL ÔAYS L4KE
ALOWEEN ANÔ
ALEN_4NES ÔAY ANÔ WEAR ³FUN UN4FORMS´ E
ERY FR4ÔAY
 CON_Ô««.CASE S_UÔY
 4N AÔÔ4_4ON, _EY _RY _O ÔE
ELOP 4NNO
A_4
E WAYS _O 4MPRO
E CUS_OMER
SER
4CE ANÔ SA_4SFAC_4ON.
 ALL EMPLOYEES PAR_4C4PA_E, 4N A BONUS SYS_EM _A_ BASES REWARÔS ON COMPANY
PERFORMANCE, ANÔ EMPLOYEES OWN O
ER 18% OF _E A4RL4NES S_OCK
 _E EN_RANCE ALL A_ COMPANY EAÔ UAR_ERS A_ LO
E F4ELÔ 4N ÔALLAS 4S FULL OF
PLA UES EARNEÔ BY EMPLOYEES FOR _E4R OU_SA_NÔ4NG PERFORMANCE.
 . E
ERYBOÔY 4N _E ORGAN4SA_4ON COPERA_ES _O AC4E
E SOU_ WES_¶S GOAL OF
PRO
4Ô4NG LOW COS_, 4G UAL4_Y SER
4CE.

 CUL_URE FOLLOWEÔ 4N
ALUE L4NE

 . EMPLOYEES MUS_ S4GN 4N BY 9 AM E
ERYÔAY ANÔ S4GN OU_ WEN LEA
4NG. 4F _EY
FAKE _E4R ARR4
AL OR ÔEPAR_URE _4ME, _EY FACE Ô4SM4SSAL
 PUBL4SER OF _E
ALUE L4NE 4N
ES_MEN_ SUR
EY, AS FA4SONEÔ A CUL_URE _A_
_E COMPANY¶S EMPLOYEES APPAREN_LY A_E ANÔ _A_ NO ONE EN
4ES
 4N ER A__EMP_ _O REÔUCE COS_S ANÔ 4MPRO
E EFF4C4ENCY, SE AS CREA_EÔ
4NS_RUMEN_AL
ALUES OF FRUGAL4_Y ANÔ ECONOMY _A_ ARE PO4SON4NG
EMPLOYEES A__4_UÔES _OWARÔS _E ORGAN4SA_4ON.
 CON_Ô««.CASE S_UÔY
 BECAUSE A_
ALUE L4NE MESSY ÔESKS ARE CONS4ÔEREÔ S4GNS OF UNPROÔUC_4
4_Y,
BU__NER RE U4RES ÔEPAR_MEN_ MANGERS _O F4LE A ³CLEAN SURFACES REPOR_´
E
ERYÔAY , CER_4FY4NG _A_ EMPLOYEES A
E _4Ô4EÔ _E4R ÔESKS.
 SE KEEP SALARY 4NCREASES AS SMALL AS POSS4BLE ANÔ AS KEP_ _E COMPAN4ES
BONUS PLAN ANÔ EAL_ PLAN UNÔER _4G_ RE4N .

 Conclusion
 SOU_WES_ A4RL4NE
 _E CUL_URE OF EXCELLENCE _A_ SOU_ AS CREA_EÔ SEEMS _O BE WORK4NG _O
4_S AÔ
AN_AGE. SOU_ WES_ 4NCREASEÔ 4_S OPERA_4NG ROO_S ANÔ PROF4_S E
ERY
YEAR 4N 1990¶S ANÔ 4S ONE OF _E MOS_ PROF4_ABLE A4RL4NES FLY4NG _OÔAY.


ALUE L4NE
 MANY 4GLY _RA4NEÔ, PROFESS4ONAL WORKERS A
E LEF_
ALUE L4NE BECAUSE OF
_E OS_4LE A_MOSPERE PROÔUCEÔ BY _ESE ³ECONOM4CAL´
ALUES ANÔ BY WORK
RULES _A_ ÔE
ALUE EMPLOYEES
 CON_Ô««..CASE S_UÔY
 SO BAÔ A
E F4LL4NGS BE_WEEN EMPLOYEES ANÔ BU__NER BECOME _A_
EMPLOYEES REPOR_EÔLY PU_ UP A NO_4CE ON _E4R BULLE_4N BOARÔ
CR4_4C4S4NG BU__NERS MANAGEMEN_ S_YLE ANÔ SUGGES_4NG _A_ _E
COMPANY COULÔ USE SOME NEW LEAÔERS4P.
 _URNO
ER OF COMPANY FELL ÔOWN

 Ôiscussions------
 Reasons why southwest¶s and value line¶s cultures differ so
sharply
 Southwest airline
alue line
4nformal way of communication Formal way of communication

Meeting between ceo and employees on friday No meeting between ceo and employees

Managers encourage employees to be creative and No such norms are followed

to develop rules and norms to solve their own
problem

For understanding the problem of employees Problems of employees are not discussed
managers are envolved in baggage handling, ticket
agents, and flight attendents

Employees outstanding performance are kept in No such norms are followed

company¶s headquarter entrance hall.

Employees has to participate in company¶s bonus Employees are not benifited by bonus system
system. employees hold 18% of airlines stock