Lec 1 Culture

8/13/2019 Lec 1 Culture

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2006 Prentice Hall 3-1

Culture

INB-480


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Overview

Culture and its effects on organizations

Cultural variables

Cultural value dimensions Developing cultural profiles


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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.


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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


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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.


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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


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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.


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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 ???????


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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


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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


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Culture and Its Effects on

Organizations


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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


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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


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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


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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:


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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


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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.


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Cultural Value Dimensions

Values are a societys ideas about what is

good or bad, right or wrong


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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.


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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.


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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.


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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.


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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.


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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.


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(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?


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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.


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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.


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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


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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


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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


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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



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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



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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



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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


DisplacedDigital

Focus on targets

Timeliness

Efficiency driven


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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


We: Related selfCommunitarianism

Concern for welfare

of others

Obedience, Loyalty,

Duty, Sacrifice

I: Separated self

Self-reliance

Self-actualizationSelf-esteem

Privacy

Autonomy

Competition


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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



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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


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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.


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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.


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www.geert-hofstede.com
http://www.geert-hofstede.com/http://www.geert-hofstede.com/http://www.geert-hofstede.com/http://www.geert-hofstede.com/


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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


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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.


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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.

Documents

Lec 1 Culture