Post on 01-Nov-2014
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The Meanings and Dimensions of Culture and Managing Across
Culture
Mike, Roy, and Tianfan
What is Culture?• An acquired knowledge that people use to
interpret experiences and generate social behavior– Forms Values– Creates attitudes– Influences behaviors
• 6 Characteristics of Culture– Learned– Shared– Transgenerational– Symbolic– Patterned– Adaptive
Hofstede’s Model of Culture
The explicit artifacts and products of the society
The norms and values that guide the society
The implicit, basic
assumptions that guide people’s
behavior
How do you Shake Hands?• American Style
• Asian Style
• European Style
Discussion QuestionIn what ways can measuring attitudes
about the following help differentiate between cultures such as the U.S.,
Germany, and Japan?
– Centralized vs. Decentralized Decision Making
– Safety vs. Risk– Individual vs. Group rewards
– High vs. Low Organizational Loyalty– Cooperation vs. Competition
Dimensions of Culture• Hofstede
– Power Distance– Uncertainty Avoidance– Individualism– Masculinity– Time
• Trompenaar – Universialism vs. Particularism– Individualism vs. Communitarianism – Neutral vs. Emotional– Specific vs. Diffuse– Achievement vs. Ascription– Time
Discussion Question
In what way is time a cultural factor? In what way is the need to control the
environment a cultural factor?
Priorities of Cultural Values
United States Japan Arab Countries
Table 4-1Priorities of Cultural Values: United States, Japan, and Arab Countries
1. Freedom2. Independence3. Self-reliance4. Equality5. Individualism6. Competition7. Efficiency8. Time9. Directness10. Openness
1. Belonging2. Group harmony3. Collectiveness4. Age/seniority5. Group consensus6. Cooperation7. Quality8. Patience9. Indirectness10. Go-between
1. Family security2. Family harmony3. Parental guidance4. Age5. Authority6. Compromise7. Devotion8. Patience9. Indirectness10. Hospitality
Note: “1” represents the most important cultural value, “10” the least.
Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries
Discussion Question
Looking at the lists of these values for their respective countries what
kind of managing styles would managers from these countries have
and why?
Priorities of Cultural Values
United States Japan Arab Countries
Table 4-1Priorities of Cultural Values: United States, Japan, and Arab Countries
1. Freedom2. Independence3. Self-reliance4. Equality5. Individualism6. Competition7. Efficiency8. Time9. Directness10. Openness
1. Belonging2. Group harmony3. Collectiveness4. Age/seniority5. Group consensus6. Cooperation7. Quality8. Patience9. Indirectness10. Go-between
1. Family security2. Family harmony3. Parental guidance4. Age5. Authority6. Compromise7. Devotion8. Patience9. Indirectness10. Hospitality
Note: “1” represents the most important cultural value, “10” the least.
Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries
Parochialism
The tendency to view the world through one’s own eyes and
perspective.
Simplification
The process of exhibiting the same orientation toward different cultural
groups.
Discussion Question
In what way are parochialism and simplification barriers to effective
cross-cultural management?
Case Study
Beijing, here we come!
Doing Business in China• Technical competence
• Time concept and reluctance
• GUANXI! “who you know>what you know”! Very Important!
• #1 Priority=Personal well-being: think of Chinese negotiators as humans first
About the Case • A Canadian toy company wants to
invest in the PRC– 5 year contract and the PRC will take
control of the plant after 5 years– This would allow for maximized profit
• They were formerly contracted to a Taiwanese company which is becoming more expensive– They must renew before the end of 60
days– The contract there will be extended
another 24 months if renewed
DiscussionWhat is the likelihood that the Canadians will be able
to reach an agreement with the mainland Chinese and not have to go back to their Taiwanese
supplier?
Are the Canadians making a strategically wise decision in letting the Chinese from the PRC
handle the manufacturing, or should they insist on getting more actively involved in the
production process?
What specific cultural suggestions would you make to the Canadians regarding how to do business
with the mainland Chinese?
So what about this…As people engage in more international travel and become
more familiar with other countries, will cultural differences decline as a roadblock to international understanding, or
will they continue to be a major barrier?
What are potential benefits of cultural differences within the globalized business world?