The Role of Culture The Role of Culture Managing Across National and Organizational Cultures Chapters 5 and 6, Hodgetts, Luthans and Doh, International Management: Culture, Strategy and Behavior , 6 th edition (New York: McGraw-Hill Irwin, 2006) Adapted from PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University Mark McKenna BUS 162 (6), International and Comparative Management San Jose State University www.StudsPlanet.com
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The Role of CultureThe Role of CultureManaging Across National and Organizational Cultures
Chapters 5 and 6, Hodgetts, Luthans and Doh, International Management: Culture, Strategy and Behavior , 6th edition (New York: McGraw-Hill Irwin, 2006)
Adapted from PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University
Mark McKennaBUS 162 (6), International and Comparative ManagementSan Jose State University
www.StudsPlanet.com
OVERVIEWOVERVIEW
1. Applying Hofstede’s Cultural Dimensions
2. Organizational Cultures
3. Multiculturalism
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APPLYING APPLYING HOFSTEDE’S HOFSTEDE’S CULTURAL CULTURAL DIMENSIONSDIMENSIONS1. Cross-Cultural Differences
and Similarities
2. Six Basic Cultural Variations
3. Exercise: A Jumping Off Place
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Differences and Differences and SimilaritiesSimilaritiesChallenges for effective cross-cultural
management◦ 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
Similarities across cultures◦ In US and Russian firms organizational
behavior modifications led to performance improvements
◦ Antecedents of organizational commitment were similar in US and Korea firms
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Differences and Differences and SimilaritiesSimilaritiesDifferences across cultures
◦ In the criteria used in evaluating personnelNetherlands France Germany Britain
RealityAnalysisHelicopterLeadershipImagination
ImaginationAnalysisLeadershipHelicopterReality
LeadershipAnalysisRealityImaginationHelicopter
HelicopterImaginationRealityAnalysisLeadership
◦ In the norms and rules regulating wages, compensation, pay equity, and maternity leave
◦ In labor relations, job design, and the design of employee training programs
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Basic Cultural VariationsBasic Cultural Variations1) What is the nature of people?2) What is the person’s relationship to
nature?3) What is the person’s relationship to
other people?4) What is the modality of human
activity?5) What is the temporal focus of human
activity?6) What is the conception of space?
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A Jumping Off PlaceA Jumping Off PlaceA successful, mid-sized Ohio-based US
manufacturing firm decides to open a plan near Madrid, Spain.
Factors in the decision include:◦ The end of its licensing agreement with a
German firm◦ New patents and technology◦ Lower labor costs in Spain
The Spanish partner will provide on-site support; the US firm will provide capital, technology and training
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A Jumping Off PlaceA Jumping Off PlaceIf the venture in Spain is successful, the
US manufacturer plans to use this experience to open plants first in Italy, then in France
Put yourself in the position of an international consultant or manager◦ What differences would you anticipate
between Spain and the US?◦ How might lessons learned in Spain need to
be adapted for operations in Italy?◦ How would France differ from both, and
from the U.S.?www.StudsPlanet.com
Figure 4-5: A Power-Distance Figure 4-5: A Power-Distance and Individualism-Collectivismand Individualism-Collectivism
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Figure 4-6: A Power-Distance Figure 4-6: A Power-Distance and Uncertainty-Avoidanceand Uncertainty-Avoidance
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Figure 4-7: A Masculinity-Figure 4-7: A Masculinity-Femininity and Uncertainty-Femininity and Uncertainty-AvoidanceAvoidance
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A Jumping Off PlaceA Jumping Off PlacePower
Distance
Indivi-dualism
Uncertainty
Avoidance
Masculinity
USALow(40)
High(91)
Low(46)
Mid(62)
SpainMid(57)
Low(51)
High(86)
Low(42)
Italy Low(50)
High(76)
High(75)
Mid(70)
France Mid(68)
Mid(71)
High(86)
Low(43)
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Caveats and an ObservationCaveats and an ObservationCaveats…
◦ What is typical?◦ How discrete are subcultures?◦ Are values and beliefs fixed or fluid?◦ What are the significant “dimensions”?◦ Are attributes generalizable or situation
specific?Observation…
◦ “Understanding the properties and prospects of nations requires openness to the richness and diversity of national practices and institutions” (Brendan McSweeney, http://geert-hofstede.international-business-center.com/mcsweeney.shtml)
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ORGANIZATIONAL ORGANIZATIONAL CULTURESCULTURES
1. Definition
2. Interactions between National and Organizational Cultures
3. Strategic Predispositions of International Organizations
4. A Typology of Organizational Cultures
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DefinitionsDefinitionsHodgetts, Luthans and Doh (p. 154)
◦ “shared values and beliefs that enable members to understand their roles and the norms of the organization.”
Edgar Schein (1997, p. 12)◦ “a pattern of shared basic assumptions that
the group learned as it solved its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems.”
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InteractionsInteractionsThe values and beliefs employees
bring to the workplace affect their behavior within the workplace
Working for MNC may accentuate rather than moderate or erase cultural differences
Cultural differences across subsidiaries often cause coordination problems
Important dimensions of cultural difference within organizations include: motivation, relationship, identity, communication, control, and conductwww.StudsPlanet.com
European’s Perceptions of Cultural European’s Perceptions of Cultural Dimensions of U.S. Operations/Same Dimensions of U.S. Operations/Same MNCMNC
Activities
Job
Corporate
Open
Tight
Conventional
Outputs
Person
Professional
Closed
Loose
Pragmatic
30 31 32 33 34 35 36 37 38 39 40 41 42
Adapted from Figure 6–1 Europeans’ Perception of the Cultural Dimensions of U.S. Operations (A) and European Operations (B) of the Same MNC
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European’s Perceptions of Cultural European’s Perceptions of Cultural Dimensions of European Operations/Same Dimensions of European Operations/Same MNCMNC
Activities
Job
Corporate
Open
Tight
Conventional
Outputs
Person
Professional
Closed
Loose
Pragmatic
30 31 32 33 34 35 36 37 38 39 40 41 42
Adapted from Figure 6–1 Europeans’ Perception of the Cultural Dimensions of U.S. Operations (A) and European Operations (B) of the Same MNC