Post on 04-Apr-2015
11/2/2007
THE MEANINGS & DIMENSIONS OF CULTURE
21/2/2007
MUSTANG JEANS (MANAGER’S HOT SEAT)
Kunisaga, 1786-1864
31/2/2007
GROUP DISCUSSION
How effective was Michael’s new approach to the situation?
What specific things should Michael have done to bring about a successful resolution to the situation?
How well did Michael handle this situation? What could or should have been done differently?
Throughout the interchange between Michael and the Japanese manager, what do you think went through the mind of the latter?
41/2/2007
How Cultures Affect Management Approaches
Centralized Decision Making
Risk Averse Individual Rewards Informal Procedures High Organizational
Loyalty Co-operation
Encouraged
Decentralized Decision Making
Risk Seeking Group Rewards Low Organizational
Loyalty Competition
Encouraged
51/2/2007
THEORETICAL PERSPECTIVES
HOFSTEDE’S VALUE SURVEY MODEL TROMPENAARS’ CULTURAL
DIMENSIONS RONEN & SHENKAR’S COUNTRY
CLUSTERS THE GLOBE STUDY
61/2/2007
Hofstede’s Dimensions of Culture
Power Distance (Large or Small) The extent to which less powerful members of
institutions accept that power is distributed unequally Large (Mexico, South Korea, India)
blindly obey order of superiors hierarchical organizational structure
Small (U.S., Denmark, Canada) decentralized decision making flat organizational structures
71/2/2007
Power Distance Index
0
20
40
60
80
100
Malaysia ArabNations
France USA G.BritainTable 3.1 in text
81/2/2007
Uncertainty Avoidance (High or Low) The extent to which people feel threatened by
ambiguous situations High( Germany, Japan, Spain)
high need for security strong beliefs in experts
Low (Denmark, UK) willing to accept risks less structuring of activities
91/2/2007
Uncertainty Avoidance Index
0
20
40
60
80
100
Japan Mexico Germany India SwedenTable 3.1 in text
101/2/2007
Individualism (vs. Collectivism)– The tendency of people to look after
themselves and their immediate family only strong work ethic promotions based on merit
• U.S., Canada, Australia
Collectivism– The tendency of people to belong to groups
and to look after each other in exchange for loyalty
weaker work ethic promotions based on seniority
• China, South American cultures
111/2/2007
Individualism Index
0
20
40
60
80
100
USA France India ArabNationsTable 3.1 in text
121/2/2007
Masculinity (Vs. Femininity)– the dominant values in society are success,
money and things emphasis on earning and recognition high stress workplace
• Japan
Femininity– the dominant values in society are caring for
others and the quality of life employment security employee freedom
• Scandinavian cultures
131/2/2007
Masculinity Index
0
20
40
60
80
100
Japan G.Britain USA ArabNations
SwedenTable 3.1 in text
141/2/2007
COUNTRY EXAMPLES
NEW ZEALAND - INDIVIDUALISTIC, LOW UNCERTAINTY, EQUALITY & MALE VALUES
ITALY - INDIVIDUALISTIC, LOW UNCERTAINTY, & EQUALITY (QUALIFIED) AND MALE VALUES
SINGAPORE - COLLECTIVIST, HIGH UNCERTAINTY, LOW MASCULINITY, RELATIVELY HIGH POWER DISTANCE
JAPAN - COLLECTIVIST, HIGH UNCERTAINTY AVOIDANCE & MASCULINITY, RELATIVELY HIGH POWER DISTANCE
151/2/2007
Hofstede - Caution!
Assumes one-to-one relationship between culture and the nation-state Note that many nation-states contain
various cultures (often extremely different from each other).
The research may have been culturally bound. Survey respondents were from a single industry
(computer) and a single company (IBM).
161/2/2007
APPLYING TO MANAGEMENT PROCESSES
PLANNING & DECISION-MAKING - individualism & collectivism?
STRUCTURING & ORGANIZING - high or low uncertainty avoidance?
STAFFING & DIRECTING - masculinity & femininity?
COMMUNICATING & CONTROLLING - power distance?
171/2/2007
Cultural Dimensions by Trompenaars
Universalism vs. ParticularismUniversalism: the belief that ideas and
practices can be applied everywhere without modification
– U. S., Germany, and Sweden
Particularism: the belief that circumstances dictate how ideas and practices should be applied.
– Spain and Japan
181/2/2007
Neutral Vs. AffectiveNeutral: emotions are held in check
– Japan and the U.S. Affective: emotions are openly and naturally expressed
– Mexico, Netherlands, and Switzerland
Specific Vs. DiffuseSpecific: individuals have a large public space and a
small private space – UK, U. S., and Switzerland
Diffuse: both public and private space are similar in size
– Venezuela, China, and Spain
191/2/2007
Achievement Vs. AscriptionAchievement: people are
accorded status based on how well they perform their functions
– U.S., Switzerland, and UK
Ascription: status is attributed based on who or what a person is
– Venezuela and China
201/2/2007
Time
Past or Present-Oriented Vs. Future-Oriented Past or present-oriented : emphasize the history and
tradition of the culture Venezuela, Indonesia, and Spain
Future-oriented: emphasize the opportunities and limitless scope
that any agreement can have U. S., Italy, and Germany
211/2/2007
Sequential Vs. Synchronous Time
Sequential: time is prevalent, people tend to do only one activity at a time, keep appointments strictly, and prefer to follow plans
–U.S. Synchronous: time is prevalent, people tend to do more than one activity at a time, appointments are approximate, and schedules are not important
– Mexico and France
221/2/2007
Environment
Inner DirectedBelieve in controlling outcomes
– U.S.
Outer DirectedBelieve in letting things take their
own course– Asian Cultures
231/2/2007
Individualism Vs. Collectivism
Individualism: refers to people regarding themselves as individuals
–U.S., UK, and Sweden
Collectivism: refers to people regarding themselves as part of a group
– Japan and France
241/2/2007
EURO DISNEYLAND
251/2/2007
CASE QUESTIONS: 4 GROUPS (EACH ANSWERING ONE)
Using Hofstede’s four cultural dimensions as a point of reference, what are some of the main cultural differences between the US & France?
In what way has Trompenaars’s research helped explain cultural differences between the US & France?
In managing its Euro Disneyland operations, what are three mistakes that the company made? Explain.
Based on its experience, what are the three lessons the company should have learned about how to deal with diversity? Describe each.
261/2/2007
COUNTRY CLUSTERS
STUDY BY SIMCHA RONEN & ODED SHENKAR DEVELOPED CLUSTERS OF COUNTRIES
STUDIED COUNTRIES WITHIN A CLUSTER ARE
CONSIDERED SIMILAR WITH REGARD TO THEIR CULTURAL VALUES
CLUSTERS ARRANGED IN APPROXIMATE ORDER OF CLUSTER SIMILARITY
271/2/2007
A Synthesis of Country Cultures
NORDIC
FinlandDenmark
Sweden
NEAREASTERN
Turkey
GreeceIranARAB
Oman
Bahrain
Abu-Dhabi
Saudi Arabia
GERMANIC
Austria
Germany
Switzerland
FAREASTERN
MalaysiaSingaporeHongKong
PhilippinesIndonesia
Taiwan
INDEPENDENTIndiaJapan
IsraelBrazil
ANGLO
United Kingdom
Canada
United States
Ireland
South AfricaLATIN
AMERICAN
Argentina
MexicoChile
Peru
LATINEUROPEAN
France
Belgium
Italy Spain
281/2/2007
GLOBE PROJECT: JUST COMPLETED Built on previous work of Hofstede and Ronen &
Shenkar – especially Hofstede 6 of their 9 dimensions are from Hofstede
Focus on leadership – goal was to develop an empirically based theory to describe, understand & predict the impact of specific cultural variables upon leadership & organizational processes
Large study – 170 scholars with a sample of 17,000 managers in three industries located in many countries
291/2/2007
CULTURE & COMPETITIVE ADVANTAGE
VALUE SYSTEMS & NORMS OF A COUNTRY INFLUENCE THE COSTS OF DOING BUSINESS IN THAT COUNTRY.
INFLUENCES WHICH COUNTRIES WILL BE THE MOST VIABLE COMPETITORS
IMPLICATIONS FOR THE CHOICE OF COUNTRIES IN WHICH TO LOCATE PRODUCTION & DO BUSINESS
301/2/2007
ASSIGNMENT FOR 6/2/2007
TOPIC: Managing across Cultures
Cross-Cultural Conflicts in the Corning-Vitro Joint Venture: read the case (pp. 211-215) & the simulation (pp. 553-556)
311/2/2007
PROCEDURE
Read both case & simulation pages prior to class Divide the class into four groups: Vitro (supports keeping JVs),
Vitro (against keeping JVs), Corning (supports keeping JVs), Corning (against keeping JVs)
At the beginning of class, the Vitro and Corning groups will meet separately to decide whether or not the joint venture should be kept or dissolved (must be a collective decision) – 30 minutes
Also need to formulate a position to bring forward to the partner Then two representatives from each side meet to inform the
other of their decision, state their position, and come to a decision – be sure to reflect cultural differences between the Mexican & U.S. cultures in your negotiation – 15 minutes
Wrap-up & general discussion of managing in different cultures