This document discusses cultural dimensions that impact organizational structure and management styles. It summarizes findings from Hofstede on how culture influences power distance, individualism, masculinity and uncertainty avoidance. Countries are mapped into quadrants based on these dimensions. Additional concepts from Laurent are presented on political systems, role formalization and different management styles between Nordic, Latin American and Asian countries. Best practices emphasize participative management, adaptability, facilitating over directing, and a coaching leadership model.

1. -RAVITHEJA OLETY
Culture &
Organisation

2. Introduction
1. Culture is learned, not inherited. It derives from one's social
environment.
2. Historical perspective by Max Weber on German, French and
American.
3. Culture operates an organization and organization features
operates the structure, it is recognizable nationally. Structure
can be basically classified as:
 Mechanistic ~ favours more centralized.
 Organic ~ decentralized.

3. Hofstede’s Findings
Dimensions of culture
• Power distance:
-more levels of hierarchy and centralized decision
making when power distance is high.
-Countries such as Malaysia, Panama, Philippines
rank high in terms of high power distance.
• Individualism:
- Consensus and Cooperation has less value.
- It doesn’t contribute to improvise group culture.
-USA, Australia, Britain are top 3 places under
individualism.

4. Dimensions Continued…
• Masculinity:
-Nurturing social relationships.
- Ensures bottom line profits to satisfy share holders and set
targets.
- Japan, Australia & Venezuela rank high.
• Uncertainty Avoidance:
- Written rules and procedures
- Planning, organizing, coordinating and controlling.
- Greece and Finland stands on top.

5. Hofstead’s map

6. From the graph-
 In quadrant 1, high hierarchy- centralized but less formalized,
uncertainty avoidance is low, most of them are Asian
countries.
 In quadrant 2, less formalized, less hierarchy and
decentralized. Nordic and Anglo countries stands here.
 In quadrant 3, high formalized, less hierarchy and decisions
are decentralized also known as “Germanic cluster”.
 In quadrant 4, companies tend to be mechanistic with high
centralization and formalization, most of them are Latin
countries.

7. Laurent’s Concepts
Political system
- Managers play vital role.
- Power is more prioritized
than attaining specific
objectives.
- Latin European managers
are more inclined
power in order to get job
done in the
- Nordic and Anglo
managers oppose such
type of system.
Role Formalization
- Detailed, well-defined
roles and functions.
- Clarify complex
and tasks.
- Nordic and Anglo
managers argue that
defining roles and
functions is harder in
complex world.
- Interferes with
maintaining flexibility
achieving coordination.

8. Management types..
Viking Management
• Decentralized
• Avoids conflict
• Coordinated by values not
rules
• Goal formulation, long range
objectives.
Brazilian Management
• Centralized decision making.
• Personal relationships are
prioritized.
• Short term oriented
• Flexible and adaptable.
Indonesian Management
• Family oriented
• Friendly and helpful.
• Tolerant
• Decisions based on

9. Laurent findings..
 French and German are resistance to matrix structures
and violated the principle of “unity of command”.
 Management in Europe reject team approaches.
 Companies in Singapore, Hong Kong, Japan have
performed well in industries such as banking and has
hierarchy remaining firmly in a place.
 “Confucian dynamism” by “Five Asian Dragons”: China,
Hong Kong, Taiwan, Japan, South Korea transplanted
their culture of hard work, thrift and respect for one’s
social network for fast changing markets.

10. Best Practices
 Companies must inculcate participative management.
 They must get adapted easily to foreign systems
whenever necessary, to succeed.
 Facilitating and developing must be improvised rather
than directing and controlling.
 Instead of being more authoritative like a ‘boss’, the
model of being a ‘coach’ scores more.

11. THANK U
OPEN TO QUERIES