Part Seven Emerging Aspects of Organizational Behavior
Chapter 16
Presented By: Aiza D. Puavin
McGraw-Hill
ELM 309
Chapter Sixteen Part 7
Productivity and Cultural Contingencies
Chapter Objectives
This chapter aims to equip a comprehensive understanding
of the challenges and opportunities related to achieving
productivity in diverse cultural contexts. Specifically, the
objectives are:
Define Productivity and its Importance
Examine the Global Gap in Understanding Productivity
Introduce the Concept of Cultural Contingency
Explore Theory Z as a Case Study
Discuss the Role of Expatriate Managers
Analyze Cross-Cultural Communication Challenges
Define and Discuss Transcultural Managers
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Introduction
Productivity, the efficient achievement of high-quality
results, is crucial for national progress. Without a
commitment to productivity, poverty, inefficiency, and
resource waste persist. Increased education alone is
insufficient; true advancement requires improved
productivity. Individual gains often come at the expense
of others without overall productivity improvements.
This challenge is particularly acute internationally,
where cultural differences and varying understandings
of productivity create significant obstacles.
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The Challenge of Achieving Productivity
The challenge of achieving productivity revolves around the
need for a country’s population to embrace the concept of
efficiently achieving high-quality results while managing
inputs. Without a strong focus on productivity, issues such as
poverty, inefficiency, and resource waste persist, and simply
increasing education may lead to individuals seeking personal
status rather than contributing to collective progress.
Expatriates often encounter local managers who either
misunderstand productivity or struggle to convey its
importance to their teams. While many view productivity
merely as a rise in output, successful nations emphasize
quality and customer satisfaction. This gap in understanding
is exacerbated by local managers’ tendencies to rely on
subjective decision-making rather than rational methods,
making it challenging to implement effective changes despite
training and communication efforts.
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Cultural Contingencies
highlight the complexities of implementing effective
business practices across different nations. Even when
countries aim to reduce resource waste and improve the
availability of goods and services, achieving results is
challenging due to cultural differences. The most
productive practices for a nation are heavily influenced
by its unique culture, social systems, economic
development levels, and employee values. Both
expatriate and local managers must recognize that
neither the productivity approaches from their home
country nor the host country's traditional practices
should be used in isolation. Instead, a hybrid set of
practices should be developed, integrating the most
effective ideas from both cultures, benefiting both the
new firm and the host nation.
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Theory Z
proposed by William Ouchi, exemplifies how organizational
behavior must be tailored to fit cultural contexts. This integrative
model combines American and Japanese management concepts,
adapting certain Japanese practices to suit American culture.
While traditional Japanese management includes features that may
not align with U.S. practices, Theory Z fosters cooperative and
trusting relationships among employees and managers,
emphasizing teamwork within a stable work environment. It
addresses employee needs for affiliation, independence, and control
while also ensuring high-quality work for the organization. A key
aspect of Theory Z is the development of a humanistic corporate
philosophy that guides company policies, with notable examples
seen in companies like Eli Lilly, Rockwell International, and
automotive plants operated by Toyota, Honda, and Nissan in the
U.S.
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Theory Z
Evaluations of Theory Z reveal both advantages and drawbacks.
Positively, Theory Z successfully adapts Japanese management
concepts to fit organizational contexts, emphasizing employee needs
and fostering supportive, consensus-driven environments. Evidence
suggests that companies implementing Theory Z can achieve
productivity, as seen in examples like the Fremont plant. However,
critics argue that Theory Z is not a new concept but rather an
extension of earlier theories, particularly McGregor’s Theory Y,
and express concerns over limited research supporting its
effectiveness. Key criticisms include its lack of clear guidelines for
application, challenges in volatile industries regarding workforce
flexibility, and potential frustration among employees due to slower
promotion rates. Despite these challenges, Theory Z has prompted
many managers to reevaluate their organizational behavior
practices.
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Features of Theory Z
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Managerial Implications
The concept of cultural contingency emphasizes that
expatriate managers must effectively navigate and adapt
to new environments. While they need to adhere to
home-office policies, flexibility is crucial for responding
to local conditions. This includes adjusting labor
policies, personnel practices, and production methods to
align with the local workforce. Additionally,
organizational structures and communication patterns
should be tailored for both local operations and
coordination with the home office. By adapting to host-
country conditions, businesses significantly enhance
their chances of achieving productivity improvements.
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Management’s Integrating Role
Once managers are situated in a host country, their
focus should be on integrating technological approaches
with local cultures. When local practices hinder
productivity, they may need to be bypassed or adapted
within a modified production plan. For instance, if a
one-hour siesta is customary, managers could stagger
the hours to maintain operational efficiency.
International managers should blend familiar and new
cultural elements in their practices, allowing employees
to benefit from a mix of security and enhanced
productivity. Technological changes often accompany
social changes, and while science can facilitate
technological adaptation, effective leadership is essential
for managing social dynamics.
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Management’s Integrating Role
Managers should avoid imposing complex systems from
their home country that may exceed the local
workforce's skills or understanding. Instead, simpler
systems tailored to local conditions may yield better
results. A case in point involved a human resource
specialist who implemented a complicated performance
appraisal system, believing local supervisors understood
it. However, the supervisors rated all employees
similarly, not out of comprehension, but to avoid
offending the specialist. This situation underscored the
importance of cultural sensitivity and understanding
when introducing new management practices.
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The Community Role of Expatriate Managers
Expatriate managers must carefully consider their role
within the local community, as they are often seen as
respected figures with economic influence but are still
guests in the country. Despite potentially speaking the
local language and living in the community for years,
they may not fully integrate into its social structure.
Their marginal position can lead to misunderstandings
of the community's values and norms. Cultural
missteps, though seemingly minor to outsiders, can be
significant to local citizens. To succeed, expatriate
managers should respect local culture while ensuring
compatibility with their parent company's culture.
Balancing these two aspects is essential, as ignoring local
culture can disrupt social systems and hinder
productivity, while complete submission to it may lead
to inefficiencies in organizational practices.
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Chapter Sixteen Part 7
CROSS-CULTURAL COMMUNICATION
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CROSS-CULTURAL COMMUNICATION
Expatriate managers must not only learn the language of their host
country but also understand key differences in nonverbal
communication to avoid damaging relationships with employees,
partners, and customers. Important areas of cross-cultural
communication include attitudes toward time, thought patterns,
personal space, eye contact, physical appearance, gestures, silence,
and touch. These differences complicate effective communication in
international settings and should be carefully considered by
managers. While it is beneficial for American managers to learn
local languages, English is increasingly becoming the dominant
language of business in Europe, with 69% of Western European
managers speaking it and over 90% of students studying it. This
trend is driven by English's adaptability and rich vocabulary, as
well as the influence of technology, particularly through email and
the Internet.
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Transcultural Managers
It is evident that careful attention should be given to cultural
preparation of expatriate employees. Eventually a cadre of employees
with cross-cultural adaptability can be developed in organizations with
large international operations. These employees are transcultural
employees because they operate effectively in several cultures. They
are low in ethnocentrism and adapt readily to different cultures without
major cultural shock. They usually can communicate fluently in more
than one language. Transcultural employees are especially needed in
large, multinational firms that operate in a variety of national cultures.
For a firm to be truly multinational in character, it should have
ownership, operations, markets, and managers truly diversified without
primary dominance of any one of these four items by any one nation.
Its leaders look to the world as an economic and social unit; but they
recognize each local culture, respect its integrity , acknowledge its
benefits, and use its differences effectively in their organization.
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