PROJECT

MANAGEMENT and
PRINCIPLES of
MANAGEMENT
Ignasi CAPDEVILA
[email protected]
Organizational Culture
National Culture
 Part 1

Organizational Culture
 Organizational Culture

• Organizational culture is the personality of the

organization
• Organizational culture shapes behavior and influences
performance
• The observable culture is what you see and hear as an
employee or customer
• The core culture is found in the underlying values of the
organization
• Value-based management supports a strong
organizational culture
 Organizational Culture

• Culture is the personality of the organization

• Shared beliefs and values that guide behavior
of organization members

Looking at the picture,

what kind of culture do you
imagine?
What is
Zappos.com’s
organizational
culture like?
 VIDEOS: ZAPPOS.COM
• A Tour of Zappos.com
https://www.youtube.com/watch?v=C5ZJE9zDpm0

• Zappos Company Culture - The Zappos Family on

Nightline
https://www.youtube.com/watch?time_continue=15&v=tFyW5s_7ZWc

• Why Zappos Pays New Employees to Quit–And

You Should Too
https://hbr.org/2008/05/why-zappos-pays-new-employees
 ZAPPOS.COM

At the corporate headquarters of Zappos, weirdness is encouraged and having fun is job number one. Zappos CEO Tony
Hsieh believes that an office environment that employees enjoy is vital for company success. To keep employees smiling,
Zappos offers free employee lunches, in-house massages, and even a nap room. There is a company concierge service and
a life coach on staff. Zappos “Keep them happy” approach to business seems to be working. The ten-year-old company
has more than 1,500 employees, and sales recently topped $1 billion. According to Tony, maintaining strong employee
morale not only makes it more enjoyable to go to work, it also makes business sense.

Concepts
• The Management Process
• Manager
• Quality of work life
• Social capital
• Top management
• Upside-down pyramid view

Discussion Questions
Describe Zappos’ organizational structure using the upside-down pyramid view. What does Zappos do to serve the
company individuals at the top of the pyramid?
1. Describe the Three Essential Managerial Skills and how the importance of each skill varies across organizational
levels. Which skills are most important to Tony? Which are most important to entry-level customer service
employees?
2. What likely effect do Zappos’ employee-focused programs have on workforce diversity?
 STRONG CULTURES

• Organizational culture shapes behavior and

influences performance
• Strong cultures are clear, well defined and widely
shared among members
• Socialization helps new
members learn the
culture
 Observable Culture

• Observable culture is what you see and hear

 Organizational Culture & Values

• Core culture is the underlying values of the

organization
• Core values are the beliefs that shape behavior
• Values based management makes sure the core
values are communicated and put in action
• Symbolic leaders use language and symbols to
establish and reinforce organizational culture
 WORKPLACE SPIRITUALITY

• Workplace spirituality involves creating meaning

and community for employees

• Common elements are meaningful work, respect for

diversity, work life balance and ethical behavior
• Symbolic leaders model and teach the culture and
values
 DEFINITION OF CULTURE

“The pattern of basic assumptions a group has

invented, developed and taught to new members
as the correct way to perceive, think and feel”

• Cultures have tangible and intangible components

• Cultures help to integrate people into an organisation
COMPONENTS OF CULTURE

• Tangible components
• Physical layout, buildings
• Logos, trademarks Tangible
• Furniture, equipment

• Intangible components Intangible

• Shared values
• Shared knowledge
• Shared experience of past events
and people
• *Tangible:
• 1. capable of being touched; discernible by the touch; material or substantial.
• 2. real or actual, rather than imaginary or visionary: the tangible benefits of sunshine.
• 3. definite; not vague or elusive: no tangible grounds for suspicion.
• 4. (of an asset) having actual physical existence, as real estate or chattels, and therefore
capable of being assigned a value in monetary terms.

• http://dictionary.reference.com/browse/tangible

• *Intangible
• 1. not tangible; incapable of being perceived by the sense of touch.
• 2. not definite or clear to the mind: intangible arguments.
• 3. existing only in connection with something else, as the goodwill of a business.

• http://dictionary.reference.com/browse/intangible?s=t
 FAMOUS TYPES OF CULTURE

Many types of organisational culture have been identified. Some

may be re-inventing the same wheel!

• Four famous views are:

1. Organic vs mechanistic cultures
2. Strong vs weak cultures
3. Low context vs high context cultures
4. Cameron & Quinn’s cultures (competing framework)
 VIEW NO 1 - BURNS & STALKER, 1961

Mechanistic versus Organic

• OK in static, predictable • OK in change situations

situations • Complex teams, people do
• Individual specialised working range of jobs
• Centralised, hierarchical, • Decentralised, delegated,
standardised authority. Status lateral, unpredictable. Status
based on empire based on ideas
• Written communication; many • Spoken communication; mutual
rules adjustment
 VIEW NO 2 - MID 1980S

Strong vs Weak

• Clear system of beliefs etc. • Beliefs etc. unclear or

• Beliefs widely shared contradictory
&enforced • Beliefs differ among groups
• Beliefs aligned to • Beliefs poorly related to
organisational goals organisational goals

NB Strong is not necessarily better than Weak

 VIEW NO 3 - HALL 1976 – TENDS
TO BE APPLIED TO COUNTRIES
RATHER THAN ORGANISATIONS
High Context versus Low Context

• Close relationships over long time: • Many short-term relationships; task

important in decisions is important in decisions
• Expectations are implicit • Expectations are explicit
• Knowledge is situational & relational • Knowledge is universal
• Only part of the message is in words, • Messages are precise and
the rest is understood through the understood on their own
context, body language and recent • Use of verbal media of written and
events spoken word
• E.g. Japan, China, France • E.g. UK, Australia, Germany, USA
 VIEW NO 4: CAMERON & QUINN 2006

Competing Values

Cameron & Quinn identified TWO dimensions

1. Stability & control vs Flexibility & discretion

2. Internal focus & integration vs External focus &

differentiation

They then constructed a 2 x 2 matrix

 CAMERON & QUINN’S 4
ORGANISATIONAL CULTURES
Flexibility & Discretion

Internal & Integration External & Differentiation

Stability & Control

* Latin “ad hoc”, meaning "for the purpose", and the suffix -cracy, from the
ancient Greek kratein, meaning "to govern“.
IMPORTANCE OF
ORGANISATIONAL CULTURE

1 Develop culture that suits business and its

environment

2 Choose management and work style that

suits the culture

3 Consider organisational culture carefully in

mergers and acquisitions
Keys to an Organizational Culture That
Fosters Success
 Part 2

National Culture
• Have you heard the expression
« culture shock »?
• Have you experienced one?
Five alternative definitions of culture handout

Below are five alternative definitions of cultures. Which definition(s) of

culture do you prefer? You can choose as many as they wish.

1. Objective visible artefacts such as rituals, superstitions, heroes, myths,

symbols and taboos.
2. Basic truths about identity and relationships, time and space, ways of
thinking and learning, ways of working and organizing, and ways of
communicating.
3. Ideals shared by group members to which strong emotions are
attached.
4. The `right' and 'wrong' ways of doing things. The rules people live by in
practice.
5. Subjective behavioral orientations to do things in one way, rather than
another. They are most noticeable in relationship styles, thinking and
learning styles, organization and work styles and communication styles.
EXERCICE: Get to know another student’s culture
Non verbal communication
1. Should I expect differences in what is thought of as appropriate 'personal space'?
2. Should I anticipate differences in the way my counterparts use touch?
3. Is there anything particular I need to be careful about in giving or receiving business cards?
4. Should I avoid any particular gestures?
5. Should I expect differences in the level of acceptable eye contact?
6. Do I know what body language is taboo?

Communication
1. Should I anticipate different attitudes about the acceptability of asking personal questions?
2. Should I anticipate different attitudes towards the acceptability of humour and emotions?
3. Should I anticipate different attitudes towards the acceptability of interrupting?
4. Do I know what type of argument is likely to be most persuasive?
5. Should I anticipate a different attitude towards addressing difficult issues directly?
6. Do I know what style of feedback is acceptable?
7. Should I anticipate different expectations about the expression of criticism?
8. Should I anticipate different expectations about the expression of anger?
9. Should I anticipate different expectations about the formality of feedback?
10. Do I know the range of ways in which disagreement is likely to be expressed?
11. Should I expect a different style of conflict resolution?
12. Should I anticipate different expectations about the use of silence?
13. Should I anticipate different communication styles to be in use?
14. Do I know when to use first names and surnames?
15. Do I know what professional titles to use?
16. Should I anticipate different attitudes towards small-talk?
17. Should I anticipate different attitudes towards the importance of saving face?
18. Should I anticipate a different use of tone or pitch when speaking?
19. Should I expect different attitudes towards displays of affection?
 GLOBAL CULTURES

• Culture shock comes from discomfort in cross-cultural

situations

• Cultural intelligence is the capacity to adapt to foreign

cultures

• The “silent” languages of cultures include context, time

and space

• Hofstede identifies five value differences among national

cultures
 CULTURE SHOCK

• Culture shock comes from discomfort in cross-

cultural situations. Stages include:

Confusion first contact with the new culture that leaves you
anxious, uncomfortable and in the need of information

Small victories continued interaction bring successes and

your confidence grow

Honeymoon a time of cultural absorption

Irritation and anger new culture becomes a target of your

criticism

Reality a time of rebalancing, you are able to enjoy the

new culture while accommodating its less desirable
elements
 CULTURAL INTELLIGENCE

• Cultural intelligence – the capacity to adapt to

foreign cultures. It includes:
• Self awareness
• Flexibility
• Sensitivity
• Willingness to learn
• Willingness to
modify behavior
 CULTURES

• Low-context
• Emphasize communication via spoken or written
words
• High-context
• Rely on unspoken or situational
cues as well as spoken or
written words in communication
 EXERCISE:
MEETING AT THE PALACE HOTEL

• Please read the short situation and answer the

questions.
• First do it individually, then discuss the answers
with your neighbour
The director is one hour late for an important meeting and no one knows
whether he is going to arrive or not. The meeting has been called at his
request and he is the key decision maker. What should the managers
participating in the meeting do?

a. Start the meeting without the director.

b. Wait for the director to arrive

Imagine that the director arrives two hours later and discovers that
everyone left. Does he have the right to be upset and to reprimand its
subordinates?

a. He has every right to be upset and to reprimand his subordinates

b. He has no right to be upset and to reprimand his subordinates
c. He has some right to be upset and to reprimand his subordinates

Imagine that the director arrives two hours late and discovers that
everyone is waiting for him. What do you think he should do?

a. Start the meeting straight

b. Apologise for being late and then start the meeting
c. Apologise for being late explaining the reason for his late arrival and
then start the meeting.
 CULTURES
• Monochronic
• People tend to do one thing at a time
• Scheduled appointments are a priority
• Time is seen as inflexible
• Work and personal life are clearly separated
• Working hours are followed even under environmental pressures
• Time controls the activities
• Polychronic
• People accomplish many different things at once
• Relationships are priority
• Time is seen as infinite, flexible, negotiable
• Work and personal life are not clearly separated
• Working hours are flexible and respond to unexpected situations
• Activities control the time
 CULTURES

• Proxemics
• How people use interpersonal
space to communicate
 GEERT HOFSTEDE

• Surveyed cultures at IBM in 72 Countries

• Organisational culture held constant hence
differences would be mainly national differences
• Results in book ‘Culture’s Consequences’ 1980
• Identified 5 dimensions of national cultures
• Was first in field therefore very influential
 EXERCISE:
THE BEST BOSS TO HAVE

• Please read the short situation and

answer the questions.
• First do it individually, then discuss
the answers with your neighbour
Exercise: The best boss to have

Anna thinks that the best boss to have is the one who
gives clear guidelines, oversees and supervises your
work closely and verifies the results. The boss is the
decision maker and others follow the orders.

John thinks that the best boss to have is the one who
gives the task but no precise guidelines. The employees
are free to fulfil the task in their own way and the boss
then judges the result.

Peter believes that the best boss to have is the one who
consults with the employees before making a decision.
The task is then carried out collectively.

Whose type of a boss do you prefer?

 Exercise: Painting the house

• Please read the short situation and answer

the questions.
• First do it individually, then discuss the
answers with your neighbour
Exercise: Painting the house

A boss asks a subordinate to help him paint his house. The

subordinate, who does not feel like doing it, discusses the situation
with a colleague. The colleague argues: “You don’t have to paint if
you don’t feel like it. He is your boss at work. Outside he has little
authority.” The subordinate argues: “Despite the fact that I don’t feel
like it, I will paint it. He is my boss and you can’t ignore that outside
work either.”

(Trompenaars, 2011,86-87)
 CULTURE
• Hofstede’s five value differences among national cultures:

Power Distance
•The degree to which a society accepts unequal distribution of power

Uncertainty Avoidance
•The degree to which a society tolerates risk and uncertainty and avoids unstructured, unusual,
unknown situations

Individualism-collectivism
•The degree to which a society emphasizes individuals and their self-interests, i.e. look after self
and family - opposite of collectivism

Masculinity-femininity
•The degree to which a society values assertiveness and materialism versus relationships,
feelings and quality of life

Time Orientation
•The degree to which a society values short term or long term goals
SOME NATIONAL DIFFERENCES
 CRITICISMS OF HOFSTEDE

1 Surveys too insensitive to measure culture

2 4-5 dimensions too crude to reflect culture
3 Cultures not homogeneous – several in 1 nation
4 Results based on one organisation – IBM
5 Statistical analysis poor
6 Results old & out of date – e.g. masculinity
TROMPENAAR’S 3 MEGA-DIMENSIONS

• Trompenaar’s work was more scientific:

• 47 Countries, 15,000 people

• Identified 3 mega-dimensions:
1 relationship with people
2 relationship with time
3 relationship with environment
 EXERCISE: A CAR ACCIDENT

• Please read the short situation and answer the

questions.
• First do it individually, then discuss the answers
with your neighbour
 Exercise: A car accident

You are riding in a car driven by a close friend. He hits a pedestrian. You know he
was going at least 35 miles per hour in an area of the city where the maximum
allowed speed is 20 miles per hour. There are no witnesses. His lawyer says that if
you testify under oath that he was only driving 20 miles per hour it may save him
from serious consequences. What right has your friend to expect you to protect
him?

a My friend has a definite right as a friend to expect me to testify to the lower

figure.
1b He has some right as a friend to expect me to testify to the lower figure.
1c He has no right as a friend to expect me to testify to the lower figure.

What do you think you would do in view of the obligations of a sworn witness and
the obligation to your friend?

d Testify that he was going 20 miles an hour.

e Not testify that he was going 20 miles an hour

(Trompenaars, 2011,33-34).
 EXERCISE: GOALS IN LIFE

• In your opinion, what is the order of importance of

the following goals in one’s life?

a) Go after what you want from life

b) Have the respect of your family and friends
c) Have the respect of your colleagues
d) Be respected by your superiors at work
e) It does not really matter, because one’s life is mainly
determined by luck or fate.
 TROMPENAAR’S MEGA-DIMENSION:
RELATIONS WITH PEOPLE

• Universalism–particularism : consistent vs flexible

application of rules
• Individualism–collectivism: emphasis on group rights or
individuals’ rights
• Unemotional–emotional: detached objectivity or
subjective interpretation
• Specific–diffuse: few deep relationships or many
shallow ones
• Achievement–prescription: rewards for achievement or
status
 TROMPENAAR’S 2ND & 3RD:
MEGA-DIMENSIONS OF CULTURE

2. Relationship with time

• Linear & synchronic; clear past, present future;
precious hence quick decisions needed – Western
view
• Sequential; events & opportunities will recur;
relaxed attitude to time and appointments
3. Relationship with environment
• Inner-directed; people see themselves as
separate and attempt to control environment for
personal benefit
• Outer-directed; people see themselves as a part
of nature and try to be in harmony with it
 CONFLICT AND HARMONY

Has been identified (e.g. Leung, 1997)as an important

cultural difference between West and East

• CONFLICT: some cultures resolve disagreements by ‘arguing it out’

– i.e. letting the two sides conflict so that ‘the best’ wins. Claims to
arrive at the optimal solution. Typical of western societies –
especially Anglo-Americans.
• HARMONY: conflict is avoided because it can damage relationships
which are valued in themselves and because it is thought that, in the
long run, good relationships bring the best results. It has roots in
Confucianism. Saving one own ‘face’ and the ‘face’ of others is
important. Very important in Chinese and many Asian cultures.
WHERE ARE THEY FROM?
 CULTURES: ECOLOGICAL FALLACY

• Ecological fallacy
• Mistaken belief that a generalization about a culture
applies equally to everyone in that culture
• Do the individuals on the previous slide represent all
their compatriots?
• Would you like to be associated with the image of the
Frenchman above?
Ignasi CAPDEVILA
[email protected]

Paris School of Business

+33 (0)1 53 36 44 00
www.psbedu.paris
59 rue Nationale
75013 Paris