8/8/2019 4206 Chap 004
1/39
8/8/2019 4206 Chap 004
2/39
The Meanings and Dimensions ofCulture
chapter four
McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
8/8/2019 4206 Chap 004
3/39
4-3
Chapter Objectives
1. DEFINE the term culture, and discuss some of thecomparative ways of differentiating cultures.
2. DESCRIBE the concept of cultural values, andrelate some of the international differences,similarities, and changes occurring in terms of bothwork and managerial values.
3. IDENTIFY the major dimensions of culture relevantto work settings, and discuss their effects on
behavior in an international environment.4. DISCUSS the value of country cluster analysis and
relational orientations in developing effectiveinternational management practices.
8/8/2019 4206 Chap 004
4/39
4-4
The Nature of Culture
Culture defined: Acquired knowledgethat people use to interpret experienceand generate social behavior. Thisknowledge forms values, createsattitudes, and influences behavior.
8/8/2019 4206 Chap 004
5/39
4-5
Characteristics of Culture
Learned
Shared
Trans-generational Symbolic
Patterned
Adaptive
8/8/2019 4206 Chap 004
6/39
4-6
Priorities of Cultural Values
8/8/2019 4206 Chap 004
7/39
4-7
How Culture AffectsManagerial Approaches
Centralized vs. Decentralized Decision
Making:
In some societies, top managers make all
important organizational decisions.
In others, these decisions are diffusedthroughout the enterprise, and middle- and
lower-level managers actively participate in,and make, key decisions.
8/8/2019 4206 Chap 004
8/39
4-8
How Culture AffectsManagerial Approaches
Safety vs. Risk:
In some societies, organizational decisionmakers are risk averse and have great
difficulty with conditions of uncertainty.
In others, risk taking is encouraged, anddecision making under uncertainty is
common.
8/8/2019 4206 Chap 004
9/39
4-9
How Culture AffectsManagerial Approaches
Individual vs. Group Rewards:
In some countries, personnel who dooutstanding work are given individual
rewards in the form of bonuses andcommissions.
In others, cultural norms require group
rewards, and individual rewards are frownedupon.
8/8/2019 4206 Chap 004
10/39
4-10
How Culture AffectsManagerial Approaches
Informal Procedures vs. Formal
Procedures:
In some societies, much is accomplished
through informal means.
In others, formal procedures are set forthand followed rigidly.
8/8/2019 4206 Chap 004
11/39
4-11
How Culture AffectsManagerial Approaches
High Organizational Loyalty vs. Low
Organizational Loyalty
In some societies, people identify very
strongly with their organization or employer.
In others, people identify with theiroccupational group, such as engineer or
mechanic.
8/8/2019 4206 Chap 004
12/39
4-12
How Culture AffectsManagerial Approaches
Cooperation vs. Competition
Some societies encourage cooperationbetween their people.
Others encourage competition betweentheir people.
8/8/2019 4206 Chap 004
13/39
4-13
How Culture AffectsManagerial Approaches
Short-term vs. Long-term Horizons
Some culture focus most heavily on short-term horizons, such as short-range goals of
profit and efficiency.
Others are more interested in long-rangegoals, such as market share and
technologic developments.
8/8/2019 4206 Chap 004
14/39
4-14
How Culture AffectsManagerial Approaches
Stability vs. Innovation
The culture of some countries encouragesstability and resistance to change.
The culture of others puts high value oninnovation and change.
8/8/2019 4206 Chap 004
15/39
4-15
A Model of Culture
8/8/2019 4206 Chap 004
16/39
4-16
Business Customs in South Africa
Arrange meeting before discussing
business over phone.
Make appointments as far in advance aspossible.
Maintain eye contact, shake hands,provide business card
Maintain a win-win situation
Keep presentations short
8/8/2019 4206 Chap 004
17/39
4-17
Values in Culture
Values
Learned from culture in which individual isreared
Differences in cultural values may result invarying management practices
Basic convictions that people have about
Right and wrong Good and bad
Important and unimportant
8/8/2019 4206 Chap 004
18/39
4-18
Values in Culture
8/8/2019 4206 Chap 004
19/39
4-19
Values in Culture
8/8/2019 4206 Chap 004
20/39
4-20
Values in Culture
8/8/2019 4206 Chap 004
21/39
4-21
Value Similarities and DifferencesAcross Cultures
1. Strong relationship between level of managerialsuccess and personal values
2. Value patterns predict managerial success and canbe used in selection/placement decisions
3. Country differences in relationship between valuesand success; however, findings across U.S., Japan,Australia, India are similar
4. Values of more successful managers favorpragmatic, dynamic, achievement-oriented andactive role in interaction with others
5. Values of less successful managers tend towardstatic and passive values; relatively passive roles ininteracting with others
8/8/2019 4206 Chap 004
22/39
4-22
Hofstedes Cultural Dimensions
1. Power distance
2. Uncertainty avoidance
3. Individualism/collectivism4. Masculinity/femininity
8/8/2019 4206 Chap 004
23/39
4-23
Hofstedes Cultural Dimensions
Power distance: Less powerfulmembers accept that power is distributedunequally
High power distance countries: peopleblindly obey superiors; centralized, tallstructures (e.g., Mexico, South Korea, India)
Low power distance countries: flatter,
decentralized structures, smaller ratio ofsupervisor to employee (e.g., Austria,Finland, Ireland)
8/8/2019 4206 Chap 004
24/39
4-24
Hofstedes Cultural Dimensions
Uncertainty avoidance: people feel threatened byambiguous situations; create beliefs/institutions toavoid such situations
High uncertainty avoidance countries: high need forsecurity, strong belief in experts and their knowledge;structure organizational activities, more written rules, lessmanagerial risk taking (e.g., Germany, Japan, Spain)
Low uncertainty avoidance countries: people more willingto accept risks of the unknown, less structured organizationalactivities, fewer written rules, more managerial risk taking,higher employee turnover, more ambitious employees (e.g.,Denmark and Great Britain)
8/8/2019 4206 Chap 004
25/39
4-25
Hofstedes Cultural Dimensions
Individualism: People look after selvesand immediate family only High individualism countries: wealthier,
protestant work ethic, greater individualinitiative, promotions based on market value(e.g., U.S., Canada, Sweden)
High collectivism countries: poorer, less
support of Protestant work ethic, lessindividual initiative, promotions based onseniority (e.g., Indonesia, Pakistan)
8/8/2019 4206 Chap 004
26/39
4-26
Hofstedes Cultural Dimensions
Masculinity: dominant social values aresuccess, money, and things
High masculine countries: stress earnings,
recognition, advancement, challenge, wealth; highjob stress (e.g., Germanic countries)
High feminine countries: emphasize caring forothers and quality of life; cooperation, friendlyatmosphere., employment security, group decisionmaking; low job stress (e.g., Norway)
8/8/2019 4206 Chap 004
27/39
4-27
Trompenaars Cultural Dimensions
Universalism vs. Particularism Universalism: ideas/practices can be
applied everywhere
High universalism countries: formal rules,close adhere to business contracts (e.g.,Canada, U.S., Netherlands, Hong Kong)
Particularism: circumstances dictate how
ideas/practices apply; high particularismcountries often modify contracts (e.g., China,South Korea)
8/8/2019 4206 Chap 004
28/39
4-28
Trompenaars Cultural Dimensions
Individualism vs. Communitarianism
Individualism: people as individuals
Countries with high individualism: stress personal
and individual matters; assume great personalresponsibility (e.g., Canada, Thailand, U.S., Japan)
Communitarianism: people regard selves as part ofgroup
Value group-related issues; committee decisions;joint responsibility (e.g., Malaysia, Korea)
8/8/2019 4206 Chap 004
29/39
4-29
Trompenaars Cultural Dimensions
Neutral vs. Emotional
Neutral: culture in which emotions not shown
High neutral countries, people act stoically and
maintain composure (e.g., Japan and U.K.) Emotional: Emotions are expressed openly
and naturally
High emotion cultures: people smile a lot, talk
loudly, greet each other with enthusiasm (e.g.,Mexico, Netherlands, Switzerland)
8/8/2019 4206 Chap 004
30/39
4-30
Trompenaars Cultural Dimensions
Specific vs. Diffuse
Specific: large public space shared with others andsmall private space guarded closely
High specific cultures: people open, extroverted;strong separation work and personal life (e.g.,Austria, U.K., U.S.)
Diffuse: public and private spaces similar size,public space guarded because shared with privatespace; people indirect and introverted, work/privatelife closely linked (e.g., Venezuela, China, Spain)
8/8/2019 4206 Chap 004
31/39
4-31
Trompenaars Cultural Dimensions
Achievement vs. Ascription
Achievement culture: status based on howwell perform functions (Austria, Switzerland,
U.S.) Ascription culture: status based on who or
what person is (e.g., Venezuela, China,Indonesia)
8/8/2019 4206 Chap 004
32/39
4-32
Trompenaars Cultural Dimensions
Time Sequential: only one activity at a time;
appointments kept strictly, follow plans as laid out(U.S.)
Synchronous: multi-task, appointments areapproximate, schedules subordinate torelationships (e.g., France, Mexico)
Present vs. Future: Future more important (Italy, U.S., Germany)
Present more important (Venezuela, Indonesia All 3 time periods equally important (France,
Belgium
8/8/2019 4206 Chap 004
33/39
4-33
Trompenaars Cultural Dimensions
The Environment
Inner-directed: people believe in control ofoutcomes (U.S., Switzerland, Greece,
Japan) Outer-directed: people believe in letting
things take own course (China, many otherAsian countries)
I t ti C lt d M t
8/8/2019 4206 Chap 004
34/39
4-34
Integrating Culture and Management:The GLOBE Project
GLOBE: Global Leadership and OrganizationalBehavior Effectiveness.
Project extends and integrates previous analyses ofcultural attributes and variables.
Evaluates nine different cultural attributes using middlemanagers from 951 organizations in 62 countries.
Multi-cultural team of 170 scholars from around theworld worked together to survey 17,000 managers in 3
industries: financial services, food processing, andtelecommunications.
Covered every major geographic region of the world.
8/8/2019 4206 Chap 004
35/39
4-35
The GLOBE Project
The 9 Dimensions of the GLOBE
Project: Uncertainty avoidance
Power distance Collectivism I: Social collectivism
Collectivism II: In-group collectivism
Gender egalitarianism
Assertiveness
Future orientation
Performance orientation
Humane orientation
8/8/2019 4206 Chap 004
36/39
4-36
GLOBE Results
Corresponds generally with those of Hofstedeand Trompenaars.
Different from Hofstede in that many more
researchers with varied perspectives wereinvolved (vs. Hofstede workng alone); studiedmany companies vs. Hofstedes IBM.
GLOBE provides a current comprehensiveoverview of general stereotypes that can befurther analyzed for greater insight.
8/8/2019 4206 Chap 004
37/39
4-37
GLOBE Project
8/8/2019 4206 Chap 004
38/39
4-38
GLOBE Analysis
8/8/2019 4206 Chap 004
39/39
4 39
Review and Discuss
1. What is meant by culture?
2. What is meant by value?
3. What are the dimensions of Hofstedesmodel?
4. Will cultural differences decline orintensify as roadblock to international
understanding?
5. Describe Trompenaars research.