Intercultural Aspects of Business Process Management

Agenda
Knowledge Intensive Business Process

Intercultural Aspects of Business Process Management

Business Process Management

Corporate Culture Intercultural Aspects in Organizations Intercultural Comparison of Knowledge Processing

Universitt Potsdam Lehrstuhl fr Wirtschaftsinformatik und Electronic Government Univ.-Prof. Dr.-Ing. Norbert Gronau August-Bebel-Str. 89 14482 Potsdam Tel. (0331) 977-3379 Fax (0331) 977-3406 http://wi.uni-potsdam.de

Msc in Wi.-Inform. Priscilla Heinze May 13, 2011

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Knowledge Intensive Business Process

Intercultural Aspects in Organizations

Knowledge Aspect of Business Process Management

(In)Accessibility of information

Key persons dependency

Flexible processes

Knowledge Intensive Business Process

Collective decision making

Business decentralization

External process participants

Team based process participants

Organizational knowledge leakage

Competence and skill allocation

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Integration of Knowledge into Business Process Management

Knowledge Intensive Business Process

Knowledge related Barriers in Phases of Business Process Mgt

Project justification

Characteristics of Knowledge Intensive Processes

Innovativeness Creativity Decision latitude Autonomy Multiple sources and media

Phases of business process management

Barriers

Projectmanagement

Analysis

Change Management

Conception

Realization

Integration

Project justification Analysis Conception

Unfamiliar technical terms Objectives are lacking in practical relevance Conflict of interest Experts profiles Contradictions between own and foreign knowledge Internal competition Ability to share Willingness to share Information flood "Not-invented-here"-Syndrome Pressure of tradition roles User unfriendly IT-System

Knowledge intensive processes

Realization

Integration

Undefined course of action

Several participants

Incompletely defined tasks

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Eppler et al. 1999, Remus 2002

Knowledge Intensive Business Process

Knowledge Intensive Business Process

List of Attributes of a Knowledge Intensive Process

Categories Process spanning Dimensions
Culture and organization Environment

Focus of Analysis
Classical Business Process Procedure Time order acceptance Costs

Attributes for knowledge intensive processes

Open organization culture Branches with high R&D dependence High amount of process branching High amount of exceptions Low structure Vague aim and its assessment Long learning time Wide decision latitude High competence of employees Complex and strongly context-dependence Knowledge is difficult to access Process knowledge Informal

Process orientation

Complexity Variability Level of structure

Task orientation

Controlling Learning time

Employee orientation

Decision latitude Competence

Resource orientation

Complexity Access Type of knowledge Knowledge exchange

Knowledge Intensive Processes Application, distribution and generation of information and knowledge order Integrated knowledge management methods Organization, culture and technology

Extended area of analysis in process oriented knowledge management.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Eppler et al. 1999, Remus 2002

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Corporate Culture

Corporate Culture

Definition of Culture
Perception Way of thinking
Culture

Has its root from childhood times Learned throughout one's lifetime

Corporate Culture

Desired values Appreciation Common behaviours

Interpretation Communication

Culture is as such only when shared by a group of people. Humans share and experience the world through culture.
c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Hofstede 1991, Pheysey 1993, Gronau/Eversheim 2008

Corporate Culture

Corporate Culture

Meaning of Culture
Definition
The term "culture" is an word of latin origin: "cultura" - care, culitvation and adoration Today it sums up societies (nations), ethical or regional groups Transmission among a group of people (e.g. organizations and families)

Cultural Layers

Realization

Speech, rituals, concrete manners, clothing etc.

Indicators
Passed on through socialization (e.g. family) Ideas and values in terms of ways of thinking, ideologies and emotions

Concretization and visualisation

Determined rules, behaviour principles etc.

Basis

Basic orientation manners and behaviour patterns

Corporate philosophy and corporate climate are parts of culture.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Each activity in an organisation is characterized and influenced by its own culture.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Lehner 2000, S.67

Lehner 2000 as suggested by Schein 1995

Corporate Culture

Corporate Culture

Corporate Culture
Corporate culture

Symbols of Corporate Culture

Speech
Verbal symbols Slogans, key sentences, formulation of targets (all communicative expressions of organizational members)

= Entirety
common values, norms and attitudes characterize the decisions, actions und behaviour of the organizational members

Actions
Interpersonal symbols Communication among employees and between hierarchical layers, handling of conflicts and critics, acceptance of failures, tendency to single- or groupwork, behaviour of employees among themselves and toward clients and suppliers etc.

represent the basic elements of the corporate culture are embodied and applied by organizational procedures, symboles and symbolic actions

Corporate culture

Artefacts
Organigrammes, description of roles, standards of service, status symbols, company logo, design and arrangement of new products, special services etc.

Knowledge and culture are interdependent.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Dill 1986

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Lehner 2000, S.70

Corporate Culture

Intercultural Aspects in Organizations

Characteristics of Corporate Culture

Barriers of Knowledge Sharing

Individual barriers System related barriers
Focus only on information system Lack of acceptance of the system Inadequate technical communication structure

Characteristics is not fixed, but arises in the course of social interaction electronic media becomes more and more important is influenced by the suprasystem "society" (nation) could feature subcultures extreme characteristics of culture could impede innovations expression in behaviour, beliefs, speech, symbols and rituals consists of visible customs, common values and principles of behaviour and also invisible influences

Lack of time Fear of prestige loss Lack of competence "Not-invented-here"-Syndrome Lack of acceptance

Barriers of knowledge sharing

Organizational barriers
New concepts meet old structures Conventional management Pushed knowledge management implementation

Organization members should be aware of the advantages of knowledge sharing.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Lehner 2000, S.74

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Intercultural Aspects in Organizations

Kultur am Lehrstuhl

Cultural Study as Theoretical Basis

Who is Professor Geert Hofstede? A Dutch expert for culture studies Emeritus Professor for Organization Anthropologie und International Management

Intercultural Aspects in Organizations

Relevance of study
Fundamental influence of national and regional culture groups on the behaviour of companies, their organizations and leadership Most comprehensive study about culture (and organizational culture)

Enorm diversity of ways of thinking, yet only one structure, which serves as foundation of mutual understanding.
c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Hofstede 2006

Intercultural Aspects in Organizations

Intercultural Aspects in Organizations

Cultural Dimensions (Hofstede)

Powerdistance

Power Distance Indicators (excerpt) Large Power Distance

Inequalities among people are both expected and desired Parents teach children obedience Hierarchy in organizations reflects the existential inequality between higher-ups and lower-downs Subordinates expect to be told what to do Wide salary range between top and bottom of organization
c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Decision making Wishful thinking and actual condition

Uncertainty avoidance

Small Power Distance

Inequalities among people should be minimized Parents treat children as equals Hierarchy in organizations means an inequality of roles, established for convenience Subordinates expect to be consulted Narrow salary range between top and bottom of organization

Measure of (in-) tolerance towards the ambiguity in a society

Masculinity and femininity

Gender roles Traditional values

Collectivism and Individualism

Single combat Teamwork

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Hofstede 2006

Hofstede 19991

Intercultural Aspects in Organizations

Intercultural Aspects in Organizations

Uncertainty Avoidance Indicators (excerpt)

Weak uncertainty avoidance
Uncertainty is a normal feature of life and each day is accepted as it comes Low stress; subjective feeling of well-being Comfortable in ambiguous aisutations and with unfamilier risks Teachers may say 'I don't know' Comfortable feeling when lazy; hard-working only when needed Precision and punctuality have to be learned Tolerance of deviant and innovative ideas and behaviour

Masculinity and Femininity Indicators (excerpt)

Feminine
Dominant values in society are caring for others and preservation Everybody is supposed to be modest In the family, both fathers and mothers deal with facts and feelings Failing in school is a minor accident Work in order to live Managers use intuition and strive for consensus Resolution of conflicts by compromise and negotiation

Strong uncertainty avoidance

The uncertainty inherent in life is felt as a continuous threat which must be fought High stress; subjective feeling of anxiety Acceptance of familier risks; fear of ambiguous situations and of unfamiliar risks Teachers supposed to have all the answers Emotional need to be busy; inner urge to work hard Precision and punctuality come naturally Suppression of deviant ideas and behavior; resistance to innovation
Hofstede 19991

Masculine
Dominant values in society are material success and progress Men are supposed to be assertive, ambitious and tough; women are supposed to be tender and to take care of relationships In the family, fathers deal with facts and mothers with feelings Failing in school is a disaster Live in order to work Managers expected to be decisive and assertive Resolution of conflicts by fighting them out

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Hofstede 19991

Intercultural Aspects in Organizations

Intercultural Aspects in Organizations

Collectivism and Individualism Indicators (excerpt) Collectivist

Children learn to think in terms of 'we' Harmony should always be maintained and direct confrontations avoided Purpose of education is learning how to do Relationship employer-employee is perceived in moral terms, like a family link Relationship prevails over task

Cultural Differences
Differences and their meaning Own culture in comparison to other cultures Finding differences and common grounds Different Cultures... ...have different ideals ...can meet and get to know each other ...have to think and act intercultural
GRNL AN D
I SAND L SCH EEN WD FI NLAD N N NOR EGN W E

Individualist
Children learn to think in terms of 'I' Speaking one's mind is a characteristic of an honest person Purpose of education is learning how to learn Relationship employer-employee is a contract supposed to be based on mutual advantage Task prevails over relationship

KANADA

GROBRTANEN I NI

DNM AK E R

I RLAD N

NEDRLAND I E E

DEUSCHLAD T N

POLEN

BEORUSS L . RE. P

BELGI N E TSCHEHI CHE C S LUXEM URG REPUBI K BO L SOW L AKEI SERRI CH T E UNGAR N SLOW I EN E N KOATI N R E

UKRI NE A

FRNKREI H SCHW Z A C EI

M OL AW EN D I

I TAL EN I

RM U NI E N

BOSNI N E SERBI N E

BLGARI N U E

POTUGAL R

SPANEN I

M AZEDONEN I ABANI N L E

VEREINIGTE STAATE N

GRI CHENAND E L

TR KEI

TUNES EN I

S YRIEN

MAR OKKO

J ORD ANIEN

KU BA

ALGER IEN

L BI N Y E

GYPTEN

ME XIKO

HA T I I

W ES T S AHAR A

BELI Z E

D OM I I K N ANI S CHE R EPU K BLI

HON RAS DU

M URET ANIEN A MALI

BUR KI A N

NI GERIA

P ANA MA

GU E A AT M LA EL SA V O R L AD NI C ARA GUA

SEN EG AL

TSC HAD SU DAN

ER TREA I

C S A RI C O T A

GU YANA VEN E UELA Z

G MA A BI

DJI O B UTI

FRAN ZSISCH GU YANA

G UI EA- SSA U N B I

G NEA UI

TO O G

NI E RI G A

S ER RA- E O I L NELI

KOLUMBIEN

BER A I

ELE NBEI NF K STE BENI N G ANA H

ZENTRA L A FRI A NI C HE REPU BLI K S K

THIOPIEN

KA M ERU N

UG ANDA

S O ALI A M

EQUAD OR

EQ TR AL UA O I G NE A UI

KENI A

SUR INAM

G ABUN

KO O NG

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RUAND AS

AO T M U NDP RI C PE O E N I

AN G LA O

TA N A I A SN

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BRASILIEN

ANGOLA

BOL IVIEN

ZA A MB I

M A W A L I

M SAM Q E O B IU

PARAGUAY

ZI B ABW E M

MAD AGA SKA R

NA M IBIA

B WA N OTS A

CH LE I

S WA L A D ZI N

U RUGUAY

S DA K FR I A

L E OTH O S

AR GENTIN E N I

Intercultural communication Communication partners belong to different cultures Mutual experience of oneself as "different" or "foreign"

Intercultural communication as a big challenge for enterprises.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Hofstede 19991

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Gronau/Eversheim 2008

Intercultural Aspects in Organizations

Intercultural Aspects in Organizations

International Enterprises
Effects of globalization N Global expansion is widely performed Influences by internal values and external as well as E W country-specific features
S

Challenges through Demographic Change

Increasing number of senior employees
Loss of tacit knowledge when senior employees leave the company Necessity of structures to prevent the loss of tacit knowledge

Communication between senior and junior employees has proven to be difficult

Similar problem: communication between members of different (national) cultures Possible reason is the different backgrounds of life and experiences of people from different generations

Challenges Finding the balance between accepting other cultures and accomplishing a standardized corporate culture Considering the adequate handling of knowledge in different cultures

How should knowledge as resource be dealt with in international operating companies?

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Cultural differences exist not only between different nations!

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Gronau/Eversheim 2008

Gronau/Eversheim 2008

Intercultural Comparison of Knowledge Processing

Intercultural Comparison of Knowledge Processing

Different Cultures of Learning

Individualistic cultures Resistance to collectivism Preference to work alone Concentration on individual success, "protection" of own ideas Collectivistic cultures Live values, which include care for other people Collectivistic interests come before individual interests Rules, values and artefacts are noticed in a similar way by all members of the group

Intercultural Comparison of Knowledge Processing

Collectivism sustains learning experience and generation of knowledge.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Bouncken, Lotter 2008

Intercultural Comparison of Knowledge Processing

Intercultural Comparison of Knowledge Processing

Encouraging collectivistic learning culture by...

(India): Historical development of a diversity of knowledge cultures

Pre-colonial knowledge culture: Hindu and Buddhist Spread of islamic knowledge culture through the islamic capture of North India in the 13th century British colonial rule (18th - 20th century)
Import of "western" knowledge cultures Fallback to pre-colonial traditions to preserve the own identity

...rapidly integrating new team members

...facilitating social contacts between the employees ...increasing intensive and direct communication and interaction

Post independency (1947)

Enforcement of western knowledge cultures (to support scientific and economical progress)

...creating overlapping groups

...making time for problem solving

Collectivistic learning culture is fundamental for intercultural team

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Today knowledge cultures exist multifaceted side by side, their combination often leads to synergy effects.
c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Bouncken, Lotter 2008

Hartnack 2008

Intercultural comparison

Intercultural comparison

What should employees consider when working in India?

No universal recipes

Handling with knowledge in the USA and Germany

Germany

Every meeting between people is unique because of their different backgrounds

Cultural factors of success

USA
pragmatic solutions, improvisation und creativity

Confidence about history and culture is especially important for working success
Digesting new impressions

Collateral coaching to reflect on experiences The aim is better processing and comprehension
Personal attitude

holistic approach: everything is related to each other and will be considered

Tolerance, receptiveness, openness and inquisitiveness as guarantee for success during intercultural meetings

Diversity and changes in India prevent the development of obligatory hints of behaviour.
c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Deductive vs. inductive way of thinking.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Hartnack 2008

Reisach 2008

Intercultural comparison

Literatur

Cultural differences in gaining knowledge in China, Germany and the USA

Germany Focus Method of gaining knowledge preparation practice Way of thinking Type and Structure item USA idea China person, relationship research (internet, authorities, Guanxi) trial and error Examples (inductive), individual orientated network of coherences

Literature (1/2)
Bouncken, R.B., Lotter, F.: Typen interkultureller Lernprozesse - Ein Vergleich individualistischer und kollektivistischer Kulturen. In: Gronau, N., Eversheim, W. (Hrsg.): Umgang mit Wissen im interkulturellen Vergleich - Beitrge aus Forschung und Unternehmenspraxis. acatech Deutsche Akademie der Technikwissenschaften, 2008, S. 27-48. Dill, P.: Unternehmenskultur: Grundlagen und Anknpfungspunkte fr ein Kulturmanagement. BDW (Mnchen), 1986. Eppler, M., Seifried, M.: Improving Knowledge Intensive Processes through an Enterprise Knowledge Medium. Proceedings of the 1999 ACM SIGCPR conference on Computer personnel research. New Orleans 1999. Gronau, N., Bahrs J., Schmid S.: Anwendungen und Systeme fr das Wissensmanagement. GITO-Verlag (Berlin), 2005. Gronau, N., Bahrs, J., Schmid, S., Mller, C., Frming, J.: Wissensmanagement in der Praxis - Ergebnisse einer empirischen Untersuchung. GITO-Verlag (Berlin), 2007. Gronau, N., Eversheim, W.: Umgang mit Wissen im interkulturellen Vergleich - Beitrge aus Forschung und Unternehmenspraxis. acatech Deutsche Akademie der Technikwissenschaften, 2008 Grunig, J. E., Hunt, T.: Managing Public Relations. Rinehart and Wiston (New York), 1984. Hartnack, C.: Saraswati und "Western Science": Interdisziplinre Annherung an Wissenkulturen in Indien. In: Gronau, N., Eversheim, W. (Hrsg.): Umgang mit Wissen im interkulturellen Vergleich - Beitrge aus Forschung und Unternehmenspraxis, acatech Deutsche Akademie der Technikwissenschaften, 2008, S. 79-96. Hofstede, G.: Cultures and Organizations. Software of the mind. McGraw Hill (London), 1991. Hofstede, G.: Lokales Denken, globales Handeln. Deutscher Taschenbuchverlag GmbH & Co.Kg (Mnchen), 2006 Lehner, F.: Organisational Memory. Hanser Fachbuch (Mnchen), 2000. Mast, C.: Unternehmenskommunikation - Ein Leitfaden. Lucius und Lucius (Stuttagrt), 2002. North, K.: Wissensorientierte Unternehmensfhrung. Gabler Verlag (Wiesbaden), 2002. Oelsnitz, D., Hahmann, M.: Wissensmanagement: Strategie und Lernen in wissensbasierten Unternehmen. Kohlhammer (Stuttgart), 2003. Pheysey, D.C.: Organizational Cultures. Types and Transformations. Routledge (London and New York), 1993.

hermeneutic, empiricism, empiricism phenomenology analysis, structuring statistic, PR / Marketing deductive derivation chain of reasoning, cleary structured, overview serious, formal network of experts quality, stringency inductive argumentation humorous, rich of anecdotes, core statement: "KISS" dynamic, rousing business partner "Its usefull, it sells." databases, meetings

Representation Transfer Evaluation criterion

ritual, indirect, associative official channel, friends / Guanxi confidence, field test internet, colleagues, email

Most important sources professional literatur, internet

There is no global solution fr economic success.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Reisach 2008

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Intercultural Aspects of Business Process Management

Literature (2/2)
Reimer, A.: Die Bedeutung der Kulturtheorie von Geert Hofstede fr das internationale Management. Wismarer Diskussionspapiere, Heft 20/2005. Reisach, U.: Kulturelle Unterschiede im Umgang mit Wissen - Beispiele aus der Wirtschaftspraxis in Deutschland, USA und China. In: Gronau, N., Eversheim, W. (Hrsg.): Umgang mit Wissen im interkulturellen Vergleich Beitrge aus Forschung und Unternehmenspraxis, acatech Deutsche Akademie der Technikwissenschaften, 2008, S. 97-126. Remus, U.: Prozessorientiertes Wissensmanagement - Konzepte und Modellierung. Dissertation, Universitt Regensburg, 2002. Roehl, H.: Instrumente der Wissensorganisation. Perspektiven fr eine differenzierende Interventionspraxis. Gabler-Verlag (Wiesbaden), 2000. Schein, E.: Unternehmenskultur - Ein Handbuch fr Fhrungskrfte. Campus (Frankfurt), 1995. Schick, S:. Interne Unternehmenskommunikation. Strategien entwickeln, Strukturen schaffen, Prozesse steuern. Schffer-Poeschel (Stuttgart), 2007. Schtt, P.: Wissensmanagement. Niedernhausen, 2000. Weaver, W., Shannon, C. E.: The Mathematical Theory of Communication. Univ. of Illinois Press, 1963. Winterstein, H.: Mitarbeiterinformation. Informationsmanahmen und erlebte Transparenz in Organisationen. Hampp Verlag GmbH (Mnchen), 1996. Zillich, S.: Warum Mitarbeiter Ihr Wissen zurckhalten. In: Wissensmanagement, Heft 5, 2003, S.8-11.

Group assignment (30')

Form a group of 5 to 7 people. If your group were a company, discuss with your members what kind of corporate culture you are practicing. Look for as many aspects as possible! Write them on a piece of paper and read them outloud. Tell a story about the company all-day activities that characterize the culture.

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

c Prof. Dr.-Ing. Norbert Gronau, Universitt Potsdam

Hartnack 2008