Team 4 Chp 4 & 5
Transcript of Team 4 Chp 4 & 5
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The Meanings and Dimensions of Culture and Managing Across
CulturesChapter 4 & 5Dylan Parks,Tara Kern,
Ashley Sanders
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Cultureo Culture has a large impact on
business1. Learned2. Shared3. Transgenerational4. Symbolic5. Patterned6. Adaptive
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Culture cont.o Common practices in one culture
may not be the same in otherso The practice of handshaking is a
good example
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Different Cultural Values
o Centralized vs. Decentralized Decision Making
o Safety vs. Risko Individual vs. Group Rewardo Informal vs. Formal Procedureso High vs. Low Organizational Loyaltyo Cooperation vs. Competitiono Short-term vs. Long-term horizonso Stability vs. Innovation
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Valueso Value – Basic conviction people have
regarding right and wrong, good and bad, etco Different cultures have different valueso There is a strong relationship between
management values and success; more successful managers tend to favor pragmatic, dynamic, achievement orientated values, while less successful managers tend to have more static and passive values
o Values are changing over time
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Hofstede’s Cultural Dimensions
o Power Distanceo Uncertainty Avoidanceo Individualism/Collectivismo Masculinity/Femininity
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Power Distanceo The extent to which less powerful
members of institutions and organizations accept that power is distributed unequally
o Higher power distance – strict obedienceo Organizations in high power distance
countries tend to centralized with tall organization structures
o Lower power distance organizations tend to be decentralized and have flatter organizational structures
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Uncertainty Avoidanceo The extent to which people feel threatened
by ambiguous situations and have created institutions to try and avoid these
o Low Uncertainty Avoidance – Less formal rules, more risks taken, more ambitious employees, less structure, more employee responsibility
o High Uncertainty Avoidance – Very structured, more formal rules, less risks taken, less ambitious employees
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Individualism/Collectivism
o Individualism - The tendency of people to look after themselves and their immediate family only
o Collectivism – The tendency of people to belong to groups and look after each other in exchange for loyalty
o Wealthy countries tend to be more individualistic, poorer countries tend to be more collectivistic
o Individualistic countries value Protestant work ethic, more individual initiative, promotions based on market value
o Collectivistic countries (opposite)… promotions based on seniority
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Masculinity/Femininityo Masculinity – Situation in which dominant
values in society are success, money, and things
o Great importance is placed on earnings, recognition, advancement, and challenge
o Femininity – Situation in which the dominant values in society are caring for others and the quality of life
o Importance is placed on cooperation, a friendly atmosphere, and employment security
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Trompenaar’s Dimensions
o Universalism vs. Particularismo Individualism vs.
Communitarianismo Neutral vs. Emotionalo Specific vs. Diffuseo Achievement vs. Ascription
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Universalism vs. Particularism
o Universalism – The belief that ideas and practices can be applied everywhere with no modification
o Universalism – More emphasis on formal rules than on relationships and trust
o Particularism – The belief that circumstances dictate how ideas and practices should be applied
o Particularism – More emphasis on trust and relationships than formal rules; relationships affect how business deals are done
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Individualism vs. Communitarianism
o Communitarianism – Refers to people regarding themselves as part of a group
o Similar to the Individualism/Collectivism comparison of Hofstede
o The two studies found different results; this could possibly be from changing cultural values
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Neutral vs. Emotionalo Neutral Culture – Culture in which
emotions should be kept in check and not shown
o Emotional Culture – Culture in which emotions are shown freely
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Specific vs. Diffuseo Specific Culture – Large, shared
public space and small private space shared only with close friends/associates
o Diffuse culture – Public and private space are similar and both are guarded equally
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Achievement vs. Ascription
O Achievement culture: status based on performanceO Sales, promotions, experience
O Ascription culture: status based on who/what person isO Age, gender, social connections
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TimeO Perception of time = major cultural
differenceO Sequential
O one task at a time, strictly abide by deadlines and show preference for following rules
O SynchronousO multitasking, appointments are
approximate (likely to change) and schedules are subordinate to relationships
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Strategic Predispositions
O EthnocentricO values and interests of parent co guide strategic
decisionsO Polycentric
O decisions tailored to suit culture of country MNC is operating from
O RegiocentricO tries to blend own interests w/ those of its
subsidiaries on regional basisO Geocentric
O tries to integrate global systems approach to decision making
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Globalization Imperative
O belief one worldwide approach to doing business is the key to both effectiveness and efficiencyO Study: most MNCs use same business
strategy abroad as at home; effective MNCs take step further to address local needs as well
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Adjusting Global Strategies for Regional Markets
O ChallengesO MNCs must be aware of local market
conditions & not assume all markets the same
O MNCs must know strengths & weaknesses of its subsidiaries
O MNCs must give subsidiaries more independence
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ParochialismO Tendency to view the world through
one’s own eyes and perspectives
O Problems?
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SimplificationO Process of exhibiting the same
orientation toward different cultural groupsO Reflects one’s basic culture
O Due to misunderstanding/not knowing the culture
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Similarities O How is it useful for businesses to
know about cultural similarities?O Think about: individual employees;
customers; business partners
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DifferencesO Why is it important for businesses to
know about cultural differences?O Think about: individual employees;
customers; business partners
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Name that CountryO Labor laws in this country requires
that employees receive full pay 365 days a year.
O Some parts of this country have legislated pay equity (comparable worth).
O In this country, compensation levels are determined by using age, length of service, and educational background (rather than skill, ability, and performance).
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Name that Country (cont.)
O In this country, employees are allowed up to 40 weeks of maternity leave and employers must provide a government-mandated amount of pay for 18 of those weeks.
O In about 87% of large companies in this country, the head of human resources is on the board of directors.