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UNIT IV

MEANING OF TRANS-CULTURAL VALUES VALUE SYSTEMS IN MANAGEMENT


CHAPTER 6:
VALUES IN MANAGERS

Today, let us try to understand the importance of trans-cultural They are statements about how the organization will value
values. customers, suppliers, and the internal community. Value
Points to be covered in this lesson:
statements describe actions, which are the living enactment
of the fundamental values held by most individuals within
• Concept of Organizational Culture and Values the organization.
• Trans-cultural values • The values of each of the individuals in your workplace, along
For understanding the meaning of Trans-cultural values, all of with their experience, upbringing, and so on, meld together
you have to understand the meaning of Organizational Culture to form your corporate culture. The values of your senior
and Values. leaders are especially important in the development of your
culture.
These leaders have a lot of power in your organization to set the
course and environment and they have selected the staff for your
workplace.
If you think about your own life, your values form the
cornerstones for all you do and accomplish. They define where
you spend your time, if you are truly living your values. Each of
you makes choices in life according to your most important four
– ten values. Why not take the time to identify what is most
important to you and to your organization.
Why Identify and Establish Values?
Effective organizations identify and develop a clear, concise and
shared meaning of values/beliefs, priorities, and direction so
that everyone understands and can contribute. Once defined,
values impact every aspect of your organization. You must
support and nurture this impact or identifying values will have
been a wasted exercise. People will feel fooled and misled unless
they see the impact of the exercise within your organization. If
you want the values you identify to have an impact, the
following must occur.
Organizational Culture
It has been described as “the dominant values espoused by an
• People demonstrate and model their values in action in their
personal work behaviors, decision-making, contribution, and
organization”.
interpersonal interaction.
Values • Organizational values help each person establish priorities in
“A specific mode of conduct or end state of existence is their daily work life.
personally or socially preferable to an opposite or converse • Values guide every decision that is made once the
mode of conduct or end state of existence is important.” organization has cooperatively created the values and the
• Values are concepts or beliefs about desirable end states or value statements.
behaviors that transcend specific situations guide selection or • Rewards and recognition within the organization are
evaluation of behavior and events and are ordered by relative structured to recognize those people whose work embodies
importance. the values the organization embraced.
• Beliefs of a person or social group in which they have an • Organizational goals are grounded in the identified values.
emotional investment (either for or against something); “he Adoption of the values and the behaviors that result is
has very conservatives values”. recognized in regular performance feedback.
• Values are traits or qualities that are considered worthwhile; • People hire and promote individuals whose outlook and
they represent an individual’s highest priorities and deeply held actions are congruent with the values.
driving forces. (Values are also known as core values and as
• Only the active participation of all members of the
governing values; they all refer to the same sentiment.)
organization will ensure a truly organization-wide, value-
• Value statements are grounded in values and define how based, shared culture.
people want to behave with each other in the organization.

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The following are examples of values: personal fulfillment as well as organizational success. They
Ambition, competency, individuality, equality, integrity, service, should want to work in this organization. Shareowners should
responsibility, accuracy, respect, dedication, diversity, improve- be motivated to buy and hold equity in the company.
ment, enjoyment/fun, loyalty, credibility, honesty, innovativeness, When a company is prospering, little attention is paid to values.
teamwork, excellence, accountability, empower- ment, quality, People assume the organizational values must be right. Top
efficiency, dignity, collaboration, stewardship, empathy, management typically rethinks values only when it becomes
accomplishment, courage, wisdom, independence, security, necessary to support a change in strategy and organizational
challenge, influence, learning, compassion, friendliness, culture. This may not call for describing totally new values but
discipline/order, generosity, persistence, optimism, dependabil- rather reinterpreting old values in the light of a changing
ity, flexibility. business environment. For example, a number of technical
Although important aspects of your life and attention, these are companies are learning that the meaning of customer focus has
not values: family, church, professionalism. If you define what changed from selling boxes or meeting specs to understanding
you value about each of these, you are identifying the core value. how to customize solutions that help the customer to succeed.
As an example, the core value in family might be close relation- The CEO, consulting with senior executives, typically proposes
ships; in church, spirituality. new values or ideals. Together they agree on the relationship
These managers are not wrong about the importance of shared between the values and organizational strategy. For these ideals
values. Shared values lead to consistent behavior. They provide a to be internalized and truly shared, everyone in the organization
basis for trust and minimization of transaction costs within an should be able to interpret them and through a dialogue, test
organization. Particularly, when work calls for discretion, that interpretation with the organization’s leadership. The same
judgment, cooperation and relationship - building, values dialogue started by the CEO with direct reports must be
determine the kind of work management can expect. cascaded down the organization.
But the understanding of values by managers is usually Values as Behavior
superficial. In my experience managers can improve their ability Closing the gap between ideal vs. the actual behavior requires
to lead effective change if they will take the trouble to under- that the team understand that behavior is shaped and sustained
stand the relationship of values to both individual and by the corporate culture, which is a social system. If customer
organizational behavior. focus is an essential value, the first question to be asked is: What
The process of instilling organizational values requires an is the meaning of customer focus? The next question is: what
interactive dialogue which: kind of behavior does customer focus require of us? Does top
• Develops a shared logic of what kind of behavior is essential management in fact model this behavior? Is this behavior
for the organization’s success. recognized, measured and rewarded? Does the
behavior require knowledge and skills that are lacking? Does the
• Educates people about the organization as a social system so behavior require different kinds of information about custom-
that recruitment, training, measurements, and incentives can be ers? Does the structure of the organization; the roles and
aligned with goals, authority support this behavior?
• Improves communication and trust At every level, leaders have the opportunity to teach, and to
• Develops leadership develop a common understanding of what kind of behavior is
What makes it difficult for managers to make values work is that required, so that this behavior is shaped by the whole corporate
there are three different meanings of the concept: values. social system. Partial solutions like training, or recognition will
Managers need to understand these different meanings and not be enough, if other parts of the system are not aligned.
address them. One meaning of values describes ideals. Another Thus, the interactive dialogue both educates and develops a new
describes behavior. And the third describes character. When all model of leadership. The leader has the responsibility of
three of these meanings are aligned with an organization’s facilitating the dialogue, teaching and making decisions about
strategies, the result is a highly motivated corporate culture. When how to close the value gaps on the basis of full discussion. By
they are not, the result is sub-optimal organizational performance, explaining the logic of these decisions, the leader will diminish
costly conflict, frustration, and bad faith or cynicism. Aligning the resistance and equip those he leads to explain decisions to their
three meanings of values begins with understanding that each has own subordinates.
its own logic. Each requires different kinds of dialogue. Values as Character
Values as Ideals The difference between a value as behavior and character gets at
What are the right ideals for an organization? The answer is that emotional attitudes that can resist logic. This can be illustrated in
they should motivate customers, employees, and owners (or relation to the value of teamwork. Suppose there is agree- ment
other stakeholders) to behave in ways that strengthen the that a certain type of teamwork is essential to reach corporate
organization and are essential for its success. These ideals goals. The behavior required is described, recognized, and
should inspire the right kind of behavior. Customers should rewarded. There is training in team skills. Yet, an individual with
want your products. Employees should be motivated to work a strong value of autonomy and strong drive for control resists
together to satisfy customers and continually improve the becoming a team player.
organization. Their work should be meaningful in terms of

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Suppose this is affirmed by a 360° evaluation by the individual’s Large organizations have a dominant culture and numerous
boss, colleagues, subordinates, and, perhaps customer. sets of subcultures.
Can people change their character values? Dominant Culture expresses the core values that are shared by
This depends on how strong the values are and how much the a majority of the organization’s members.
person experiences the need to change. Some character values, Subculture tends to develop in large organizations to reflect
which are shaped and reinforced by a national or professional common problems, situations, or experiences that members
culture, are particularly resistant to change. face. Subculture tends to be defined by departmental designa-
tions or geographical separation.
Framework for Assessing Cultures
Mergers and Acquisitions
Five Value Dimensions of National Culture are:
The acquisition of Electronic Data systems for $ 2.5 bn in 1984
• Power distance: Degree to which people in a country accept by GM has been a mixed blessing for GM. On the positive side,
that power in institutions and organizations is distributed it has helped to diversify the large automaker & given it a strong
unequally. Ex: Philippines and Mexico have high power
source of automation expertise that GM felt it needs to
distance and Austria and Denmark have low power distance
modernize its production plants. However GM has had
• Individualism vs. collectivism: Individualism is the degree to problems integrating EDS into its operations. The basic
which people in a country prefer to act as individuals rather problem seemed to be that while GM’s culture sought to
than as members of group. minimize the conflict, risk & personal independence, the EDS
• Quantity of life vs. Quality of life: Degree to which values such culture thrived on competitiveness & aggressiveness. This
as assertiveness, the acquisition of money& material goods, & example illustrates that if the two organizations have strong
competition prevail is known as Quantity of life. Quality of life culture then the potential for “culture clash” becomes very real.
is the degree to which people value relationships, & show The two most critical factors determining whether a merger or
sensitivity & concern for the welfare of others. acquisition is successful Is the strength of each organization’s
• Uncertainty avoidance: Degree to which people in a country culture & the degree of differences that exist between the
prefer structured over unstructured situations. Ex: Culture organization’s key cultural diff.
Of Greece & Japan show high uncertainty avoidance, while Cultural differences between countries constrain cross-national
Singapore shows low uncertainty avoidance. diffusion. Corporate culture within an MNC can help in
• Long term vs. short-term orientation: People in cultures with diffusion of practices across borders through the forging of
long term orientations look to the future & value thrift shared understandings and values. Performance related pay is an
& persistence. A short-term orientation values the past & example of a practice that operates more easily in some cultures
present, & emphasizes respect for tradition & fulfilling social than in others. (Accepted in Anglo-Saxon business cultures but
obligations. not in France, Germany or Italy).

The Key Characteristics along which Culture Differ: Why should you know about Transcultural Values
• Individual initiative: Degree of responsibility, freedom and Globalization: Globalization affects a manager’s people skills
independence that individuals have. in lot many ways. At the managerial level you have to work with
people who are born and raised in different cultures. What is
• Risk tolerance: Degree to which employees are encouraged to
right according to you may be is wrong according to them. So
be aggressive, innovative and risk-seeking.
managers have to become capable of working with people from
• Direction: Degree to which organization create clear diff. Cultures and because values differ across cultures, an
objectives and performance expectations. understanding of these differences should be helpful in
• Integration: Degree to which units within the organization explaining and predicting behavior of employees from different
are encouraged to operate in a coordinated manner. countries.
• Management support Trans-cultural Values
• Control: Number of rules and regulations, and the amount
of direct supervision that are used to oversee and control
employee behavior.
• Identity: Degree to which members identify with the
organization as a whole rather than with their particular work
group.
• Reward system
• Conflict tolerance: Degree to which employee’s are
encouraged to air conflicts and criticisms seriously.
• Communication patterns: Degree to which organizational
communications r restricted to the formal hierarchy of Trans-cultural values are those beliefs that people across the
authority. world are associating themselves with. These beliefs have come
in various people because of social changes brought by

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globalization, increased mobility and ethnic intermingling. upon with suspicion from other cultures, which are equally
As you work with people from multicultural backgrounds, you biased.
will find that these differences raise barriers to trans-cultural The belief that one’s own culture or traditions are better than
communication. those of other cultures is called ethnocentrism. The person who
is ethnocentric tends to antagonize and alienate people from
There are some barriers, which are discussed in detail in the
other cultures.
following paragraphs.
Cultural biases can distort your perception of other people’s
Fear: Each person perceives the other person as different and,
values and behavior, and thus damage your ability to communi-
therefore, dangerous. Usually as people become better ac-
quainted with each other, the fear gradually dissipates, only to be cate. To overcome your biases, you must first acknowledge that
replaced by dislike. they exist.
Dislike: Group members have a tendency to dislike people Stereotyping
who behave or communicate differently from what is consid- A cultural stereotype is the unsubstantiated assumption that all
ered “the norm” in that culture or group. For example, a people of a certain racial and ethnic group are alike.
working class black person might dislike a middleclass white For example: All sindhis are businessmen. A son of a doctor is
person because white people tend to be less vocal and expres- a doctor.
sive than many black people, and thus appear insincere and
Stereotyping is particularly destructive when negative traits or
weak.
characteristics are imposed on all members of a cultural group.
Distrust: People from different cultures are often suspicious of Ritualistic Behavior
each other’s actions and motives because they lack information.
A ritual is a set procedure for performing a task. Every culture
Unfortunately, unless there is pressure to change their attitudes,
has its own ways to perform a task. It might happen that
some people never do progress beyond fear, dislike, and
different people may do same things differently. For example
distrust to the next stage of acceptance. we can see that management style of U.S.A differs from Indian
Acceptance: Usually if two people from different cultures share management style, this happens just because of rituals taught
enough good experiences over a period of time, they will begin to to Indians by their family members and the society.
accept each other rather than resent each other. Respect: If
Language Barriers
individuals from diverse cultures are open minded, they would
Language provides the tools (words) that allow people to
allow themselves to see and admire qualities in one another.
express their thoughts and feelings. Thus, language barriers
Trust: Once people from diverse cultures have spent enough present a grave threat to transcultural communication among
quality time together, they usually are able to trust each other. different individuals.
Like: For people to like each other, they must share many
things in common. To reach this final stage, individuals from Conflicting Perceptions and Expectations
diverse cultures must be able to concentrate on the human When people from different cultures try to communicate, their
qualities that bind people together, rather than the differences best efforts may be thwarted by misunderstandings and even
that pull people apart serious conflicts. Misunderstandings due to cultural differences
commonly arise in situations involving food and drink.
Racism
To prevent conflicts and misunderstandings, make sure that the
Individual racism: Individuals are discriminated against message you send is the same message that the receiver receives.
because of their visible biological characteristics; for example, When there is a language barrier, you will need to work closely
black skin or the epicanthic fold of the eyelid in Asians. with an interpreter.
Cultural racism: An individual or institution claims that its
cultural heritage is superior to that of other individuals or So, I hope now you must have understood that what are trans-
institutions. cultural values and what are the barriers faced by them at the
Institutional racism: Institutions (universities, businesses, time of implementation.
hospitals) manipulate or tolerate policies that unfairly restrict the Overview
opportunities of certain races, cultures, or groups. • Organizational Culture has been described as “the dominant
One of the flaws in the profession is an unwillingness to values espoused by an organization.”
recognize that racism is endemic. This unwillingness results in a
• Values imply “a specific mode of conduct or end state of
lack of discussion about racism and leads to responses that
existence is personally or socially preferable to an opposite or
exacerbate the problem.
converse mode of conduct or end state of existence is
Bias and Ethnocentrism important.”
Whatever their cultural background, people have a tendency to be • Trans-cultural values are those beliefs that people across the
biased toward their own cultural values, and to feel that their world are associating themselves with. These beliefs have
values are right and the values of others are wrong or not as good. come in various people because of social changes brought by
Many people are surprised to discover that the values and actions
globalization, increased mobility and ethnic intermingling.
people so admire in their own culture may look them
Activity
Discuss the barriers to cross-cultural communication?

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