Saudi Electronic University Euro Disneyland Decision Matrix Analysis

This week you were introduced to several decision-making tools in the course
content. Using the Decision Matrix Analysis along with the Decision Matrix
Analysis video, make the following decisions relative to the case study
about Euro Disneyland (p. 262):
The first section of your paper should be an explanation of this process and
how you decided on each of the factors in the matrix.
1.
2.
3.
List all of the cultural challenges posed by Disney’s expansion into Europe. (Side of matrix.)
Next, list the variables that influenced these challenges. (Top of matrix.)
Decide on a score (1-5) for each of these challenges according to the relative importance of the factors. Multiply each of these
scores by 2 to find the weighted scores for each option/factor combination.
Next, respond to the following questions in the rest of your essay:
1.
2.
3.
Using Hofstede’s four cultural dimensions as a point of reference noted in the case, what are some of the main cultural
differences between the United States and France?
In managing its Euro Disneyland operations, what are three mistakes that the company made? Explain your response with
examples.
As a conclusion, reflect on your overall thoughts on this case.
Your well-written paper should meet the following requirements:
•
•
•
Be 7 pages in length, which does not include the title page, abstract, or required reference page, which is never a part of the
content minimum requirements.
Use Saudi Electronic University academic writing standards and APA (7th ed) style guidelines.
Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly,
peer-reviewed journal articles.
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Chapter 6
Organizational Cultures and Diversity
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Learning Objectives
• Define exactly what is meant by
organizational culture, and discuss the
interaction of national and MNC cultures
• Identify the four most common categories of
organizational culture that have been found
through research, and discuss the
characteristics of each
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Learning Objectives (continued)
• Provide an overview of the nature and degree
of multiculturalism and diversity in today’s
MNCs
• Discuss common guidelines and principles
that are used in building multicultural
effectiveness at the team and the
organizational levels
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Deloitte: Key Findings regarding Culture
and Global Leadership
• Cultural diversity
– Lies in the eye of the beholder
– Positively contributes to professional and
personal enjoyment of the project and project
outcome
– Indirectly encourages project members to rethink
their usual working habits and expectations
– Dominance amongst team members reduces bias
to interact with people who have common
characteristics
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Advantages of Global Virtual
Teams
• Working virtually can reduce team process losses associated with any
cliques commonly experienced by face-to-face teams
• Having members span many different time zones can literally keep a
project moving around the clock
• Cohesive teams that are capable of quickly solving complex problems
and making effective decisions provide a competitive advantage
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Organizational Culture
• Pattern of shared basic assumptions that:
– Is learned by the group as it solves problems of
external adaptation and internal integration
– Have worked well enough to be considered valid
– Are to be taught to new members as the correct
way to perceive, think, and feel in relation to
those experiences
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Characteristics of Organizational
Culture
• Observed behavioral regularities, as typified
by common language, terminology, and rituals
• Norms, as reflected by things such as:
– Amount of work to be done
– Degree of cooperation between management and
employees
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Characteristics of Organizational
Culture (continued 1)
• Dominant values that the organization
advocates and expects participants to share
– Include high product and service quality, low
absenteeism, and high efficiency
• Philosophy that is set forth in the MNC’s
beliefs regarding how employees and
customers should be treated
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Characteristics of Organizational
Culture (continued 2)
• Rules that dictate the dos and don’ts of
employee behavior
– Relate to areas such as productivity, customer
relations, and intergroup cooperation
• Organizational climate or overall atmosphere
of the enterprise
– Reflected in the participants’ interaction with
others, behavior with customers, and perception
of how the higher-level management treats them
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Interaction between National
and Organizational Cultures
• Diagnosing Organizational Culture for
Strategic Application (DOCSA)
– Set of proprietary cultural-analysis techniques and
programs that help identify the dimensions of
organizational culture
– Proposed by Hofstede
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Table 6.1 – Dimensions of Corporate
Culture
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Table 6.1 – Dimensions of Corporate
Culture (continued)
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Interaction between National
and Organizational Cultures (continued)
• Even in the presence of multinational
alliances, partners will bring different
organizational cultures with them
• Difficult for an MNC with a strong
organizational culture to break into foreign
markets
– Unfamiliarity with divergent national cultures
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Steps to Integrate Organizational
Cultures
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Determining Organizational
Culture
• Important aspects
– General relationship between the employees and
their organization
– Hierarchical system of authority that defines the
roles of managers and subordinates
– General views that employees hold about the
MNC’s purpose, destiny, goals, and their place in
them
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Figure 6.2 – Organizational Cultures
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Family Culture
• Strong emphasis on hierarchy and orientation
to the person
– Results in a family-type environment that is
power-oriented and headed by a leader who is
regarded as a caring parent
• Management assumes a parental relationship
with personnel
– Ensures proper treatment of employees and their
continued employment
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Family Culture (continued)
• Characterized by traditions, customs, and
associations
– Bind the personnel together
– Make it difficult for outsiders to become members
• Can catalyze and multiply energies of
personnel and appeal to their deepest feelings
and aspirations
• Foreign to most managers in the United State
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Eiffel Tower Culture
• Strong emphasis on hierarchy and orientation
to the task
• Jobs are well defined, employees know what
they are supposed to do, and all activities are
coordinated from the top
– Culture is narrow at the top and broad at the base
• Relationships are specific, and status remains
with the job
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Eiffel Tower Culture (continued 1)
• Managers seldom create off-the-job
relationships with employees
• Operates like a formal hierarchy, which is
impersonal and efficient
– Each role is described, rated for difficulty,
complexity, and responsibility and has a salary
attached to it
– Jobs are awarded to the best fit between role and
person
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Eiffel Tower Culture (continued 2)
• Learning involves the accumulation of skills
necessary to fit a role, and organizations:
– Use qualifications in deciding how to schedule,
deploy, and reshuffle personnel to meet needs
– Employ assessment centers, appraisal systems,
training and development programs, and job
rotation to manage personnel
• Ill-equipped to handle things when changes
need to be made
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Guided Missile Culture
• Strong emphasis on equality in the workplace
and orientation to the task
– Work-oriented culture where the work is
undertaken by teams or project groups
• Egalitarian and task-driven
• Changes can happen quickly
– Loyalty to profession and project are often greater
than loyalty to the organization itself
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Motivation in Guided Missile Culture
• Tends to be more intrinsic
– Team members become enthusiastic about, and
identify with, the struggle toward attaining their
goal
– Helps minimize both intragroup and intergroup
conflicts
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Incubator Culture
• Strong emphasis on equality and personal
orientation
• Little formal structure
– Based on the premise that an organization’s role
is to serve as incubators for self-expression and
self-fulfillment of their members
• Participants confirm, criticize, develop, and
find resources for, or to help complete, the
development of an innovation
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Incubator Culture (continued)
• Creates an environment where participants
thrive on an intense, emotional commitment
to the nature of work
• Changes are fast and spontaneous
• Motivation remains highly intrinsic and
intense
• Leadership is achieved and not gained by
position
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Table 6.3 – Summary Characteristics of the
Four Corporate Cultures
Characteristi
c
Family
Eiffel Tower
Guided Missile
Incubator
Relationship
s between
employees
Diffuse
relationships
to organic
whole to
which one is
bonded
Specific role
in
mechanical
system of
required
interaction
Specific tasks
in cybernetic
system
targeted on
shared
objectives
Diffuse,
spontaneous
relationships
growing out of
shared creative
process
Attitude
toward
authority
Status is
Status is
Status is
Status is
ascribed to
ascribed to
achieved by
achieved by
parent
superior
project group
individuals
figures who
roles that
members who exemplifying
are close
are distant
contribute to
creativity and
andFons
powerful
yetCharles
powerful
targeted
goal
growth
Source: Adapted from
Trompenaars and
Hampden-Turner,
Riding the
Waves of Culture:
Understanding Diversity in Global Business, 2nd ed. (New York: McGraw-Hill, 1998), p. 183.
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Table 6.3 – Summary Characteristics of the
Four Corporate Cultures (continued 1)
Characteristi Family
c
Eiffel Tower
Guided Missile
Incubator
Ways of
thinking and
learning
Intuitive,
holistic, lateral,
and error
correcting
Logical,
analytical,
vertical, and
rationally
efficient
Problem centered,
professional,
practical, and
cross-disciplinary
Process oriented,
creative, ad hoc,
and inspirational
Attitudes
toward people
Family
members
Human
resources
Specialists and
experts
Co-creators
Ways of
changing
“Father”
changes
course
Change rules
and
procedures
Shift aim as target
moves
Improvise and
attune
Ways of
motivating
and rewarding
Intrinsic
Promotion to
Pay or credit for
Participation in
satisfaction in
greater
performance and
the process of
being loved
position,
problems solved
creating new
Source: Adapted and
from Fons
Trompenaars and
Charles
Hampden-Turner, Riding the Waves of Culture:
respected
larger
role
realities
Understanding Diversity in Global Business, 2nd ed. (New York: McGraw-Hill, 1998), p. 183.
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Table 6.3 – Summary Characteristics of the
Four Corporate Cultures (continued 2)
Characteristi Family
c
Eiffel Tower
Managemen Management by
t by
job description
subjectives
Criticism
and conflict
resolution
Guided Missile
Incubator
Management
by objectives
Management
by
enthusiasm
Turn other
cheek, save
other’s face,
do not lose
power game
Criticism is
Constructive
Improve
accusation of
task-related
creative idea,
irrationalism
only, then
not negate it
unless there are admit error and
procedures to
correct fast
conflicts Riding the Waves of Culture:
Source: Adapted from Fons Trompenaarsarbitrate
and Charles Hampden-Turner,
Understanding Diversity in Global Business, 2nd ed. (New York: McGraw-Hill, 1998), p. 183.
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Multiculturalism and Diversity
• Effect varies depending on the stage of the
firm in its international evolution
– Phase I – Domestic corporations
– Phase II – International corporations
– Phase III – Multinational corporations
– Phase IV – Global corporations
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Figure 6.4 – International Corporation
Evolution
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Figure 6.5 – Locations of International
Cross-Cultural Interaction
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Impact of International Cultural Diversity
Domestic firms
• Affect neither the firm’s organizational culture nor its
relationship with its customers or clients
• Can be impacted only by domestic multiculturalism
International firms
• Strongly impact external relationships with potential buyers
and foreign employees
• Diversity focus is from the inside out
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Domestic Multiculturalism
• Culturally distinct populations can be found
within organizations almost everywhere in the
world
• Can be examined within the same ethnic
groups
– Example – Among small Chinese family businesses,
the viewpoints of the older generation differ
sharply from those of the younger generation
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• Members
Group
Multiculturalism
have
similar
backgroun
ds and
Homogen generally
perceive,
eous
groups • interpret,
All
and
members
evaluate
but
onein
events
Token
have
the
similar
groups
same
• ways
Two or
backgroun
more
d
Bicultural members
represent
Composed
groups • each
of
of
two distinct
individuals
Multicultu cultures
from three
or more
ral
different
groups
ethnic
backgroun
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Potential Problems of Diversity
• Rooted in people’s attitudes
• Include:
– Erroneous perceptions caused by preconceived
stereotypes
– Inaccurate biases
– Inaccurate communication or miscommunication
• Result of using unclear words, manner in which
situations are interpreted, and differences in
perceptions of time
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Advantages of Diversity
• Enhances creativity, leads to better decisions,
and results in more effective and productive
performance
• Helps generate more and better ideas
• Prevents groupthink
– Social conformity and pressures on individual
members of a group to conform and reach
consensus
• Enhances relationships with customers
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Figure 6.6 – Group Effectiveness and
Culture
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Multicultural Team Effectiveness
• Focus of attention must be determined by the
stage of team development
– Entry stage – Focus on building trust and
developing team cohesion
– Work stage – Focus is directed toward describing
and analyzing the problem or task that has been
assigned
– Action stage – Focus shifts to decision making and
implementation
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Multicultural Team Effectiveness Guidelines
• Select team members based on task-related abilities and not based
on ethnicity
• Team members must recognize and be prepared to deal with their
differences
• Team leader must help the group to identify and define its overall goal
• Distribute power according to each person’s ability to contribute to the
task
• Provide the team with positive feedback on their process and output
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In the International Spotlight – Nigeria
• If you were a consultant for Filmhouse, how
would you advise Kene Mpkaru regarding his
next moves in Nigeria?
• What specific aspects of the country would be
positive for the company? What factors are
negatives?
• How would you deal with the wealth gap in
the country?
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In the International Spotlight – Nigeria
(continued)
• Would you advise Filmhouse to concentrate
on Nollywood productions or would you try to
attract Hollywood movies?
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Review and Discuss
1. Some researchers have found that when
Germans work for a U.S. MNC, they become
even more German, and when Americans
work for a German MNC, they become even
more American
– Why would this knowledge be important to these
MNCs?
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Review and Discuss (continued 1)
2. When comparing the negotiating styles and
strategies of French versus Spanish
negotiators, a number of sharp contrasts are
evident
– What are three of these, and what could MNCs do
to improve their position when negotiating with
either group?
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Review and Discuss (continued 2)
3. In which of the four types of organizational
cultures—family, Eiffel Tower, guided missile,
incubator—would most people in the United
States feel comfortable?
– In which would most Japanese feel comfortable?
– Based on your answers, what conclusions could
you draw regarding the importance of
understanding organizational culture for
international management?
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Review and Discuss (continued 3)
4. Most MNCs need not enter foreign markets
to face challenges of dealing with
multiculturalism
– Do you agree or disagree with this statement?
– Explain your answer
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Review and Discuss (continued 4)
5. What are some potential problems that must
be overcome when using multicultural,
diverse teams in today’s organizations?
– What are some recognized advantages?
– Identify and discuss two of each
6. A number of guidelines can be valuable in
helping MNCs to make diverse teams more
effective
– What are five of these?
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