Chapter 06 – Organizational Cultures and Diversity
4. What features of multicultural teams are most critical for successful global team
collaboration?
Answer: Companies can encourage successful global team collaboration by
ensuring that trust and cohesion among team members is established early on.
Key Terms
Bicultural group―A group in which two or more members represent each of two distinct
cultures, such as four Mexicans and four Taiwanese who have formed a team to investigate
the possibility of investing in a venture
Eiffel Tower culture―A culture that is characterized by strong emphasis on hierarchy and
orientation to the task
Family culture―A culture that is characterized by a strong emphasis on hierarchy and
orientation to the person
Groupthink―Consensus reached because of social conformity and pressures on individual
members of a group to conform to group norms
Guided missile culture―A culture that is characterized by strong emphasis on equality in the
workplace and orientation to the task
Homogeneous group―A group in which members have similar backgrounds and generally
perceive, interpret, and evaluate events in similar ways
Incubator culture―A culture that is characterized by strong emphasis on equality and
orientation to the person
Multicultural group A group in which there are individuals from three or more different ethnic
backgrounds, such as three U.S., three German, three Uruguayan, and three Chinese managers
who are looking into mining operations in South Africa
Organizational culture―Shared values and beliefs that enable members to understand their
roles in and the norms of the organization
Token group―A group in which all members but one have the same background, such as a
group of Japanese retailers and a British attorney
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Chapter 06 – Organizational Cultures and Diversity
Review and Discussion Questions
1. Some researchers have found that when Germans work for a U.S. MNC, they
become even more German, and when Americans work for a German MNC,
they become even more American. Why would this knowledge be important
to these MNCs?
Answer: It is important to point out that conventional wisdom stated that people
will adapt to the organizational culture in which they are working. Now we are
beginning to realize the tremendous impact that national cultures have on
problems before they happen.
2. When comparing the negotiating styles and strategies of French versus Spanish
negotiators, a number of sharp contrasts are evident. What are three of these,
and what could MNCs do to improve their position when negotiating with
either group?
Answer: The first part of the chapter lists several contrasts between French and
Spanish negotiators. This is just one illustration of why it is so important to
understand the perceptual process when doing business with different cultures. To
improve their position when negotiating, it is important for MNCs to understand
solutions in a way so as to not offend the other party.
3. In which of the four types of organizational cultures―family, Eiffel Tower, guided
missile, or incubator―would most people in the United States feel
comfortable? In which would most Japanese feel comfortable? Based on
your answers, what conclusions could you draw regarding the importance of
understanding organizational culture for international management?
Answer: In answering this question, students should justify their answer based upon
the previous culture dimensions by Hofstede and Trompenaars. For example, one
could argue that because the United States values individualism, the incubator
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4. Most MNCs need not enter foreign markets to face the challenge of dealing with
multiculturalism. Do you agree or disagree with this statement? Explain
your answer.
Answer: This was at one time a guideline followed by some firms. Now, with the
emergence of the global economy and diverse work groups at home, almost all
organizations need to deal with the issue of multiculturalism. At home, this is
primarily because of demographics. The workforce is much more diverse than it
a specific international division. This means that people of different cultures need to
interact.
Finally, you might discuss how the increased use of groups and teams in the
workplace are forcing organizations to focus more on diversity training.
5. What are some potential problems that must be overcome when using multicultural,
diverse teams in today’s organizations? What are some recognized advantages?
Identify and discuss two of each.
Answer: The increased use of self-managed teams and groups are forcing
organizations to focus more attention on diversity and multiculturalism in order to
form successful workgroups.
communications to be present in a diverse team. The cited benefits of diverse teams
include enhanced creativity, better decisions, the generation of more ideas, and less
groupthink.
The solution is proper multicultural training. In addition to reducing conflicts, this
training will help ensure that organizations see the benefits of diverse workgroups.
6. A number of guidelines can be valuable in helping MNCs to make diverse
teams more effective. What are five of these? Additionally, what underlying
principles guided NUMMI in its effective use of multicultural teams? Were the
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Chapter 06 – Organizational Cultures and Diversity
principles used by NUMMI similar to the general guidelines identified in this
chapter, or were they significantly different? Explain your answer.
Answer: A number of suggestions were listed at the end of this chapter. What is
Internet Exercise: Lenovo’s International Focus
Suggestion for Using the Exercise
1. After your students have completed their assignment for Lenovo, ask them to repeat
the steps in the exercise for Apple, a U.S. firm with similar products. Ask your
students to compare the strategies of Lenovo and Apple, and try to determine if
cultural differences between the U.S. and China have any influence on the different
strategies of the two companies.
2. Websites: {http://www.lenovo.com}
{http://www.apple.com}
In The International Spotlight: Japan
Questions & Suggested Answers
1. Based on their home country, how might the organizational cultures of the four
companies mentioned be distinct from one another, and in what ways could they be
the same?
Answer: Organizational culture can be defined as the shared values and beliefs that
enable members to understand their roles and the norms of the organization. Zara is
a Spanish-based company, and in Spain a contract is viewed as a long-lasting
relationship and trust is developed on the basis of frequent and warm interpersonal
contact and transaction. In Spain, social competence is very important. Spain
diversity and multiculturism.
2. If the first two companies and the last two companies want to form joint ventures
(Zara with H&M, and Louis Vuitton with Tiffany & Co.), what could be some
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Chapter 06 – Organizational Cultures and Diversity
potential ways the organizational cultures interact?
Answer: According to Hofstede’s research, the national cultural values of
employees have a significant impact on their organizational performance, and
3. What types of problems might the culturally diverse top-management team at
headquarters create for the joint venture? Give some specific examples. How could
these problems be overcome?
Answer: There are a number of possible problems for the joint venture. One is that
each has a different attitude toward authority. The Japanese ascribe status to parent
figures; the Americans give it based on the contribution of the individual to the
4. How could work structures and schedules of these companies at their respective
headquarters affect operations in Japan? In what ways are they different or similar?
Answer: According to research performed by Hofstede and supported by Laurent,
when employees work for a multinational corporation, it appears that Germans
become more German, Americans become more American, and Swedes become
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Chapter 06 – Organizational Cultures and Diversity
You Be the International Consultant: A Good Faith Effort Is Needed
Questions & Suggested Answers
1. What do you think some of the main organizational culture differences between the
two companies would be?
Answer: Using Figure 6-3 as a basis for comparison, it is easy to see that there are a
number of cultural differences between the two groups. Americans tend to be highly
2. Why might the cultural diversity in the Spanish firm not be as great as that in the
U.S. firm, and what potential problems could this create?
Answer: The main reason why the amount of cultural diversity might be less in the
Spanish firm is that they tend to use a Family Culture in which people work
3. What would you recommend be done to effectively merge the two organizational
cultures and ensure they operate harmoniously? Offer some specific
recommendations.
Answer: One of the first things that needs to be done is for both sides to examine
their goals and agree on what they collectively want to achieve if they move
International Management in Action
Doing Things the Walmart Way; Germans Say, “Nein, vielen Dank”
Summary
1. While Walmart has a global presence, not every country allows the company to
open stores there; Germany is one of those countries. When Walmart simply
translated their workplace code of ethics from English to German, the resulting
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Chapter 06 – Organizational Cultures and Diversity
pamphlet warned employees of potential supervisor-employee relationships,
implying sexual harassment, and encouraged reports of “improper behavior,” which
spoke more to legal matters. Germans saw this as a ban on romantic relationships in
the workplace and the reporting as ratting out. In addition, Walmart’s anti-union
approach did not sit well; reactions against the company’s resistance to suggestions
for improving working conditions were followed by issues with customer relations
and the unavailability of desired items. By ignoring local customs, Walmart lost its
place in the German market.
2. It may add to the class discussion to elicit pros and cons regarding Walmart from
the students’ experience, reading knowledge, and values.
3. Websites: {http://www.walmart.com}
{http://www.businessweek.com}
International Management in Action
Matsushita Goes Global
Summary
1. Matsushita, a Japanese MNC, handles the culture(s) issue with its macromicro
approach. The company complements its macro operational guidelines with on-site
micro techniques that help create the most appropriate organizational culture in the
subsidiary. Each local unit is allowed to create its own culture.
2. Matsushita’s macro guidelines:
(1) Be a good corporate citizen in every country by, among other things, respecting
cultures, customs, and languages.
(2) Give overseas operations the best manufacturing technology the company has
(4) Let operating plants set their own rules, fine-tuning manufacturing processes to
match the skills of the workers.
(5) Create local research and development to tailor products to markets.
(6) Encourage competition between overseas outposts and plants back home.
3. Websites: {http://www.panasonic.com}
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