Post on 04-Jun-2018
8/13/2019 Lec 1 Culture
1/45
2006 Prentice Hall 3-1
Culture
INB-480
8/13/2019 Lec 1 Culture
2/45
2006 Prentice Hall 3-2
Overview
Culture and its effects on organizations
Cultural variables
Cultural value dimensions Developing cultural profiles
8/13/2019 Lec 1 Culture
3/45
2006 Prentice Hall 3-3
Culture and international
management
Cultureis very important to the practice ofinternational business. Culture impactsthe way strategic moves are presented.
Culture influences decisions. Culture isthe lens through which motivation occurs.Management, decision making, andnegotiations are all influenced throughculture. Culture influences nearly allbusiness functions from accounting tofinance to production to service.
8/13/2019 Lec 1 Culture
4/45
Culture and international
management
Marketing: Variation in attitudes and values
requires firms to use different marketing
mixes, Indian cokesadvertise
Human Resource Management: Evaluation of
managers
Production and Finance
Attitudes toward authority
Attitudes toward change
8/13/2019 Lec 1 Culture
5/45
2006 Prentice Hall 3-5
Culture does not explain
everything
While culture is very important to our understanding
of international business, it does not explain
everything that is different from one place to
another. While culture explains some, otherthings like corporate strategy, structure, rivalry,
governmental policy, and economics also help to
explain success or failure in international
business. Shenkar indicates that culture is not aresidual variable; it is useful to know that it is not
a primary variable either. It is one of many.
8/13/2019 Lec 1 Culture
6/45
Rules of Thumb for Cross
Culture Business
Be prepared
Slow down
Establish trust Understand the importance of language
Respect the culture
Understand the components of culture
8/13/2019 Lec 1 Culture
7/453-7
Culture and Its Effects on
Organizations
Once upon a time there was agreat flood, and involved in thisflood were two creatures, amonkey and a fish. The monkey,being agile and experienced,
was lucky enough to scrambleup a tree and escape the ragingwaters. As he looked down fromhis safe perch, he saw the poorfish struggling against the swift
current. With the best ofintentions, he reached down andlifted the fish from the water.The result was inevitable.
8/13/2019 Lec 1 Culture
8/453-8
Manifestations of Cross-Cultural
Risk
Ethnocentric orientation: using our own culture as
the standard for judging other cultures
Polycentric orientation: a host country mindset
where the manager develops a greater affinity withthe country in which she/he conducts business
Geocentric orientation: a global mindset where the
manager is able to understand a business or market
without regard to country boundaries
Managers should strive to adopt a ???????
8/13/2019 Lec 1 Culture
9/453-9
National culture
Culture relates to a system of shared assumptions,ideas, beliefs, and values that guide humanbehavior
Appears in statements, actions, material items
Culture is acquired
Culture is transmitted from generation to generation;with embellishment and adaptation over time
8/13/2019 Lec 1 Culture
10/45
THE ICEBERG ANALOGY OF CULTURE
Symbols
Rituals
and heroes
Values
and
Underlying Assumptions
Seen, Exp licit
Unseen, Impl ic i t
Ways of perceiving, thinking and evaluating the world around us
8/13/2019 Lec 1 Culture
11/453-11
Culture and Its Effects on
Organizations
8/13/2019 Lec 1 Culture
12/453-12
Cultural Variables
Never assume that a manager can transplant
American, or Japanese, or any other
countrysstyles, practices, expectations, and
processes
Managers need to develop a cultural profile
that identifies the specific differences found in
each country
8/13/2019 Lec 1 Culture
13/45
3-13
Subcultures
Residents of the country only conform to the
national character to a certain degree
Could be from ethnic, geographic, or other
variables
Good managers treat people as individuals
and they avoid any form of stereotyping
8/13/2019 Lec 1 Culture
14/45
3-14
Influences on National Culture
Kinship guides familyrelationships; Extendedfamily
Education formal orinformal education ofworkers affects workplaceexpectations
Aesthetics- Arts and Music
Economy means ofproduction and distribution
in a society influences allaspects of the resourceallocation
Politics system ofgovernment imposesvarying constraints on anorganization
8/13/2019 Lec 1 Culture
15/45
Influences on National Culture
Time
Problem forAmericans
Americans alwaysprompt
Siestas
Directness and drive
Perceived to be
rudeness Deadlines
Liability in Asiancultures
Achievement and Work
American live to work,
Germans and Mexicans
work to live.
Recreationthe use,
attitude, and choice of how
to use leisure time
Attitude Toward Change
The American firm is
accustomed to the rapid
acceptance by Americans of
something new.
Attitude & Beliefs:
8/13/2019 Lec 1 Culture
16/45
3-16
Influences on National Culture
Language
Religion spiritual beliefs of a society are so
powerful that they overpower all other cultural
aspects
Associations the formal and informal groups
that make up a society/ Social units based on
age, gender, or common interest, not on kinship. Healthsystem of health care affects employee
productivity
8/13/2019 Lec 1 Culture
17/45
3-17
National Culture
Classifications
Culture and Nation are not synonymous.
National and cultural boundaries overlap
partially, and there will be cultural
differences in almost all nations. To makethings simpler, however, scholars have
created cultural typologies that try to
describe cultural differences and ascribethem to national boundaries.
8/13/2019 Lec 1 Culture
18/45
3-18
Cultural Value Dimensions
Values are a societys ideas about what is
good or bad, right or wrong
8/13/2019 Lec 1 Culture
19/45
3-19
Hofstedes Classifications of National
Culture
1. Individualism versus collectivism refers towhether a person primarily functions as anindividual or within a group.
2. Power distance describes how a society deals
with inequalities in power that exist among people.3. Uncertainty avoidance refers to the extent to
which people can tolerate risk and uncertainty intheir lives.
4.
Masculinity versus femininity refers to asocietysorientation based on traditional male andfemale values.
8/13/2019 Lec 1 Culture
20/45
3-20
Individualistic vs. Collective
Societies
Individualistic societies: ties among people are relatively loose;each person tends to focus on his or her own self-interest;competition for resources is the norm; those who compete bestare rewarded financially.
Examples-Australia, Canada, the UK, and the U.S. tend to bestrongly individualistic societies.
Collectivist societies: ties among individuals are moreimportant than individualism; business is conducted in thecontext of a group where everyones views are stronglyconsidered; group is all-important, as life is fundamentally a
cooperative experience; conformity and compromise helpmaintain group harmony.
Examples-China, Panama, and South Korea tend to be stronglycollectivist societies.
8/13/2019 Lec 1 Culture
21/45
3-21
High vs. Low Power Distance
Highpower distancesocieties have substantial gaps between thepowerful and the weak; are relatively indifferent to inequalities andallow them to grow. Examples- Guatemala, Malaysia, the Philippines and several
Middle East countries
Low -power distancesocieties have minimal gaps between thepowerful and weak. Examples- Denmark and Sweden, governments instituted tax and
social welfare systems that ensure their nationals are relativelyequal in terms of income and power. The United States scoresrelatively low on power distance.
Social stratification affects power distance- in Japan almost
everybody belongs to the middle class, while in India the upperstratum controls decision-making and buying power.
In high-distance firms, autocratic management styles focuspower at the top and grant little autonomy to lower-levelemployees.
8/13/2019 Lec 1 Culture
22/45
3-22
High vs. Low Uncertainty Avoidance
Societies
High uncertainty avoidancesocieties create institutions thatminimize risk and ensure financial security; companiesemphasize stable careers and produce many rules to regulateworker actions and minimize ambiguity; decisions are madeslowly because alternatives are examined for potential
outcomes. Belgium, France, and Japan
Low uncertainty avoidance societies socialize theirmembers to accept and become accustomed to uncertainty;managers are entrepreneurial and comfortable with takingrisks; decisions are made quickly; people accept each day asit comes and take their jobs in stride; they tend to toleratebehavior and opinions different from their own because theydo not feel threatened by them.
India, Ireland, Jamaica, and the U.S.
8/13/2019 Lec 1 Culture
23/45
2006 Prentice Hall 3-23
8/13/2019 Lec 1 Culture
24/45
3-24
Masculine vs. Feminine Cultures
Masculine culturesvalue competitiveness, assertiveness,ambition, and the accumulation of wealth; both men and womenare assertive, focused on career and earning money, and maycare little for others.
Examples- Australia, Japan. The U.S. is a moderately masculine
society; as are Hispanic cultures that display a zest for action,daring, and competitiveness.
In business, the masculinity dimension manifests as self-confidence, proactiveness and leadership.
Feminine culturesemphasize nurturing roles, interdependenceamong people, and caring for less fortunate people- for both men
and women. Examples-Scandinavian countries- welfare systems are highly
developed, and education is subsidized.
8/13/2019 Lec 1 Culture
25/45
3-25
The Fif th Dimens ion:
Long -Term versus Short-Term Orientat ion
Hofstede added a fifth dimension -- long-term vs. short-termorientation -- which was not identified in his earlier study. Thisdimension describes the degree to which people and organizationsdefer gratification to achieve long-term success.
Long-term orientationtends to take the long view to planning andliving, focusing on years and decades.
Examples- traditional Asian cultures-China, Japan, andSingapore, which partly base these values on the teachings of theChinese philosopher Confucius (Kung-fu-tzu) (500 B.C.), whoespoused: long-term orientation, discipline, loyalty, hard work,
regard for education, esteem for the family, focus on groupharmony, and control over onesdesires.
Short-term orientation - the U.S. and most other Westerncountries.
8/13/2019 Lec 1 Culture
26/45
3-26
(Over) simplifying matters:
Hofstede chooses to focus on culture at the
national level as a means to help us
understand/predict individualsbehavior.
Problems/limitations with this unit of analysis
Why did Hofstede choose national level?
What arguments can support its use?
8/13/2019 Lec 1 Culture
27/45
3-27
Hofstede: Criticisms
Hofstede has been subject to broad criticism. Among
the criticisms:
Single companys data, with a large Multinational
Enterprise having a strong corporate culture. Time dependent results, which are an artifact of
the time of data collection and analysis.
Business culture, not values culture, representing a
reflection of business culture at IBM and notnational culture of the countries IBM operates
within.
8/13/2019 Lec 1 Culture
28/45
3-28
Hofstede: Criticisms
Non-exhaustive, doesnt identify all the culturaldimensions possible, but just a few.
Partial geographic coverage; cover only a portionof the worldscultures and countries.
Western bias, which values western businessideals.
Ecological fallacy, national level data generalizedinto individual behavior.
8/13/2019 Lec 1 Culture
29/45
Relationship
with Nature
Relationship
with people
Relationship
with God
1. Harmony ......Control/Mastery
2. Relationships .................Task
3. Hierarchy ......Equality4. Shame....Guilt
5. High Context Comm. .Low Context
6. Polychronic time.....Monochronic
7. Collectivism .....Individualism
8. Secular...................Spirituality, Religious
KEY UNDERLYING CULTURAL ASSUMPTIONS
At the unconscious level of social programm ing
8/13/2019 Lec 1 Culture
30/45
Live in harmony with nature and co-
exist with the non-physical aspects
of the unseen world
Less likely to challenge existing
boundaries
Difficult to be friends with those we
disagree with
Status quo Flexible
Accommodating
Conflict avoidance
Cooperation
Take control over environment and
harness forces of nature to meet
ones needs
Challenge existing boundaries
Can be friends with those we
disagree with
Firm
DemandingAssertive
Confrontational
Competitive
1. HARMONY
2. MASTERY/CONTROL
UNDERLYING ASSUMPTIONS and
VALUES
8/13/2019 Lec 1 Culture
31/45
Impersonal
ObjectiveTask driven
Critical thinking
Non-negotiable
Having good relationships and trust
are important in doing business with
your partner.
Emphasis on social competencies (beingfriendly, accommodating)
Build rapport and understandingbefore the task gets down
Personable
Tolerant
Friendliness
Accommodating
Compromising
Having a written contract is key to
doing business with your partner
Focus on cognitive competencies(problem solving, critical thinking)
The task is the boss; relationships are
not so important
4. TASK
UNDERLYING ASSUMPTIONS and VALUES
3. RELATIONSHIP
8/13/2019 Lec 1 Culture
32/45
5. HIERARCHY
Work, duties and responsibilities aredistributed according to seniority
Superiors addressed and respected
Tolerance of differences in status and
wealth
Subordinates accept directions fromsuperiors without questions
Most competent will be rewarded
Superiors addressed on first name basis
Differences in status and wealth minimised
Subordinates not afraid to question
instructions of superiors
Respect for elders
Status and power
Protocol and
ceremonies
Politeness
MeritocracyEgalitarian
Less ceremonies
6. EQUALITY
UNDERLYING ASSUMPTIONS and VALUES
8/13/2019 Lec 1 Culture
33/45
External locus of control: Rely on externalsanctions (group, family, and team and authority) to
get things done
Concern with what will people say if they do
something wrong
Truth depends on values, and religious teachings
7. SHAME
Internal locus of control: Do things own volition
and guided by inner conscience
Not concerned with what others may say about
me
Has a code of ethics - absolute sense of right
and wrong
Face saving
Group
accountability
IndependentAutonomous
Personal
accountability
8. GUILT
UNDERLYING ASSUMPTIONS and VALUES
8/13/2019 Lec 1 Culture
34/45
Say what you mean mean what you sayexpl ic i t meaning and direct
Behaviour is separated from the person
Not afraid to speak up when they have
something to say
9. HIGH CONTEXT
What you see is not what you get - needto consider the context Impl ic i t and indirect
Behaviour and person cannot be
separated
Guarded in stating views and opinions
Direct
Specific
Time saver
Factual
Data-oriented
Indirect
Not so specific
Time waster
Face saving
Collective agreement
10. LOW CONTEXT
UNDERLYING ASSUMPTIONS and VALUES
8/13/2019 Lec 1 Culture
35/45
11. POLYCHRONIC
12. MONOCHRONIC
Time as flexible and part of life
Do many things at one time
Circuitous, non-sequential
Non-linear
Punctuality and deadlines are notabsolute
Time as a scarce and finite resource
Do one thing at a timeSequential
Linear oriented
Punctual and adhere to schedules and
meeting datelines
Diffused
Analog
Flexible
Multi tasking
UNDERLYING ASSUMPTIONS and VALUES
DisplacedDigital
Focus on targets
Timeliness
Efficiency driven
8/13/2019 Lec 1 Culture
36/45
13. WE -Collectivism
14. I- Individualism
Part of a group with common grounds- ethnicity, language, religion
Group achievement more important
than personal goals
Value cooperation, interdependenceand collaboration and communal
responsibility
Unique and independent individuals
Personal goals more important
than group goals
Value competition, achievement,
and independence
My way
Our way
UNDERLYING ASSUMPTIONS and VALUES
We: Related selfCommunitarianism
Concern for welfare
of others
Obedience, Loyalty,
Duty, Sacrifice
I: Separated self
Self-reliance
Self-actualizationSelf-esteem
Privacy
Autonomy
Competition
8/13/2019 Lec 1 Culture
37/45
15. RELIGIOUS
16. SECULAR
Important to combine both religious andmaterial dimensions in ones life
Workplace ethics are guided by ones religion
Religious commitments be blended with
productive work
Religion is separated from work matters
Workplace ethics influenced by code of
conduct and set of principles
Work targets more important than meeting
religious commitments
Religious
Work is a form
of worship
kerja sebagai
ibadah
Work and religion
not to be mixed
UNDERLYING ASSUMPTIONS and VALUES
8/13/2019 Lec 1 Culture
38/45
1. Harmony
2. Control/Mastery3. Relationships
4. Task
5. Hierarchy
6. Equality
7. Shame
8. Guilt
9. High Context
10. Low Context
11. Polychronic time
12. Monochronic
13. WeCollectivism14. Individualism
15. Religious
16. Secular
16 UNDERLYING CULTURAL ASSUMPTIONS
1 2 3 4 5 6 7
Not likely More likely Most likely
Cultural DimensionsNo. Country A Country B Country C
8/13/2019 Lec 1 Culture
39/45
3-39
Are Cultures Converging?
Little consensus about globalizationseffects on culture,however, it is a major influence in the emergence ofcommon worldwide culture.
Critics charge that globalization is harmful to local
cultures, their artistic expressions and sensibilities, andtheir replacement by a homogeneous, oftenAmericanized,culture.
Others argue that increased global communications ispositive because it permits the flow of cultural ideas,beliefs, and values.
The homogenization of culture is demonstrated by thegrowing tendency of people in much of the world toconsume the same Big Macs and Coca-Colas, watch thesame movies, listen to the same music, drive the samecars, and stay in the same hotels.
8/13/2019 Lec 1 Culture
40/45
3-40
Convergence of Cultures
Cultural homogeneity and heterogeneity are notmutually exclusive alternatives or substitutes; theymay exist simultaneously. Cross-cultural exchangepromotes innovation and creativity.
Cultural flows originate in many places; just asMcDonalds hamburgers have become popular inJapan, so has Vietnamese food in the United Statesand Japanese sushi in Europe.
While some past ways of life will be eclipsed in
globalization, the process is also liberating peopleculturally by undermining the ideological conformityof nationalism.
8/13/2019 Lec 1 Culture
41/45
3-41
www.geert-hofstede.com
http://www.geert-hofstede.com/http://www.geert-hofstede.com/http://www.geert-hofstede.com/http://www.geert-hofstede.com/8/13/2019 Lec 1 Culture
42/45
3-42
Critical Incident Analysis
One way to minimize cross-cultural bias and the self-reference criterion is to engage in critical incident analysis,a method that helps managers develop empathy for otherpoints of view.
An illustration: Engineers from Ford (United States) andMazda (Japan) are collaborating on a joint project. Thecounterparts from the Ford team are baffled by theJapanese teams silence and in different reactions whichcould, in fact, be a function of :
(1) the Japanese engineers could not explainthemselves easily or understand the Ford teamsbriefings, which all took place in English;
(2) Japanese usually refrain from speaking outbefore the entire team meets in private and reachesconsensus.
S C
8/13/2019 Lec 1 Culture
43/45
3-43
Steps in the Critical Incident
Analysis
Step One: Identify the situations where you need to beculturally aware to interact effectively with people fromanother culture.
Step Two: When confronted with a strangeor awkward
behavior, discipline yourself not to make value judgments.Learn to suspend judgment.
Step Three: Learn to make a variety of interpretations ofthe foreigners behavior, to select the most likelyinterpretation, and then formulate your own response.
Step Four: Learn from this process and continuouslyimprove.
8/13/2019 Lec 1 Culture
44/45
3-44
8/13/2019 Lec 1 Culture
45/45
Cultural Stereotyping:
What It Takes to Be a Global Manager (!)
Heaven is where the cooks are French, the
police are British, the mechanics are
German, the lovers are Italian and everythingis organized by the Swiss.
Hellis where the cooks are British, the police
are German, the mechanics are French, thelovers are Swiss, and everything is
organized by the Italians.