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Categories of organizational cultures in MNCs - Coggle Diagram
Categories of organizational cultures
in MNCs
Four steps in integration of organizational cultures resulting from international
expansion via mergers/acquisitions
To develop mechanisms to identify most important organizational structures and management roles.
To determine who has authority over the resources
to get things done.
Two groups have to establish purpose, goals,
and focus of their merger.
To identify expectations of all involved parties
and facilitate communication between both
departments and individuals in the structure.
Organizational cultures of MNCs
are shaped by
The hierarchical system of authority that defines
the roles of managers and subordinates.
The general views that employees hold about the MNC’s
purpose, destiny, goals, and their place in them
The general relationship between the employees
and their organization
Charles Handy's Model
Role Culture
Hierarchical bureaucracy
Power drives from a person's position
People have clearly delegated
authorities within a highly defined structure
Little scope exists for expert power
Decision making slow
Task Culture
No single power source
Power drives from expertise
Team are formed to solve particular problems
Matrix organization
Team may develop own objectives (a risk)
Power Culture
Concentrates power among a few
Few rules and little bureaucracy
Control radiates from the center
Swift decisions are possible
Found in entrepreneurial organizations
Person Culture
Business full of people with similar
training, background & expertise
Power lies in each group of individuals
People believe themselves to be
superior to the business
Success depends on retaining key personnel
Role-oriented culture
(Eiffel Tower Culture)
Everything is coordinated from the top
Unlike the Family culture, the person holding the
top position could be replaced at any time
Jobs are well defined, employees know what they
are supposed to do.
Managers seldom create off-the-job relationships
with their people.
A strong emphasis on hierarchy and orientation to
the task
Denmark, Germany, and the Netherlands
Power-oriented culture
(Power-oriented culture)
Personnel not only respect the leaders but look to
them for both guidance and approval as well
Management assumes a paternal relationship with
personnel, looks after employees
A family-type environment which is headed by a
leader who is regarded as a caring parent
May catalyze and multiply the energies of the
personnel or end up supporting a leader who is
ineffective and drains their energies and loyalties
A strong emphasis on hierarchy and
orientation to the person.
Turkey, Pakistan, Venezuela, China, Hong Kong,
and Singapore
Project-oriented culture
(Guided Missile)
Unlike the Eiffel Tower culture, personnel in this
culture do whatever it takes to get the job done.
Formal hierarchical considerations are given low
priority, and individual expertise is of greatest importance
A strong emphasis on equality in the workplace
and orientation to the task
USA, UK, Russia
Fullfillment-oriented culture
(Incubator)
Self-expression and self-fulfillment of the members
Organizations typically are entrepreneurial and
often founded and made up by a creative team
A strong emphasis on equality and personal orientation
Unlike family culture, leadership in this incubator
culture is achieved, not gained by position