The Role of Culture in International Management

The Role of Culture in International Management

HA 390 Module 2

Culture

Helps us organize our world Shared values, understandings, assumptions

and goals (values, beliefs, norms) Learned from earlier generation Imposed by present members of society

Principles for Studying Other Cultures

Individuals may not conform Differences may not be culturally based Understand your own culture first Continuums

– Few fall at the extremes, most are somewhere in the middle

Stereotyping/ Sociotyping

Mental files Natural Useful Can be misused

Ethnocentrism

Belief that one's cultural values, beliefs and norms are better than those of another culture are

Principles Summary

4 Principles for studying cultures– Individuals may not conform– Differences may not be culturally based– Understand self first– Continuums

Stereotyping– Natural, potentially useful or harmful

mental files Ethnocentrism

– Belief that one’s own culture is best

Team Work

Find several examples that demonstrate how culture affects management functions such as planning, organizing, directing and controlling

Find examples of how culture affects management style

Find several examples of how business practices differ across cultures

Prepare to present findings to class

Country Profile

Cultural Characteristics

Understand the ways culture can differ

Understand ourselves Understand others Value different points of view Develop shared values, beliefs and

norms

What do you think? Are subordinates the same kind of people as

management? Should the boss know all the answers? Is it ok for the boss to have privileges such as

drinking coffee on the job that the front line workers do not have?

Is it ok to call the boss by his/her first name? Which type of boss do you think is best - one that

is autocratic, persuasive or paternalistic, or democratic?

Power Distance

High Power Distance Order of inequality Special privileges Subordinates are

different from superiors

Boss should know all

Low Power Distance Minimize inequalities Equal rights Subordinates and

superiors are equals Ok for boss to ask

subordinates for answers

Power Distance Comparisons

81

6154

49

40 3835

28

0

10

20

30

40

50

60

70

80

90

Mex

ico

Tai

wan

Jap

an

Sou

th A

fric

a

US

A

Net

her

lan

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Gre

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n

Irel

and

HighLow

Average = 51

High Power Distance Employee Expectations

Wrong to disagree with the boss Paternalistic (father-like)

management style Boss should know all the answers Boss should have more privileges

What do you think? Do you think it is ok for employees to disagree and even argue

with their boss? Do you think time has a monetary value or it is something that

just exists? Do you prefer a boss who lays out the rules clearly and

specifically to you in written format or do you prefer one that only sets out basic rules and assumes you will perform appropriately? Why?

If you needed a marketing plan, would you hire a hospitality marketing specialist, a general marketing specialist or would you do it yourself?

How do you react when your boss tells you s/he is going to make changes in the way things are done?

Uncertainty AvoidanceHigh Avoid risks Dissonance is

dangerous Time is money Need written rules

and regulations Believe in experts

Low Willing to take risks Accept disagreements Time is free Prefer common sense

to rules Logic and common

sense better than expert opinions

112

92

82

69

5349 46

3529

0

20

40

60

80

100

120G

reec

e

Jap

an

Mex

ico

Tai

wan

Net

her

lan

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Sou

th A

fric

a

US

A

Gre

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in

Hon

g K

ong

Uncertainty AvoidanceAverage=64

High avoidance of risk Willing to take risks

Individualism Collectivism Responsible for self

and immediate family Identity based on the

individual Autonomy, variety,

pleasure and individual financial security

Individual decisions

Extended families, loyalty, protection

Identity in the social system

Expertise, order, duty, security provided by the in-group

Group decisions

Individualistic Collective Average =51

89

80

46

3025

17

91

0

10

20

30

40

50

60

70

80

90

100U

SA

Gre

at B

rita

in

Net

herl

ands

Japa

n

Mex

ico

Hon

g K

ong

Tai

wan

Collective

Individualistic

Affect of High Uncertainty Avoidance on Employees

Career stability Rules, regulations, direction Consistency Avoid conflict/disagreement Resist change Fear of failure

– May appear less ambitious Stable employees

1. Do you live to work or work to live?

2. What are your feelings about who should do what at home? How do you view the responsible of each spouse for taking care of the children?

3. Do you feel a sense of responsibility to help when you see a homeless person begging? What is your philosophy on giving to the poor?

4.  Would you take your family out of a home and community they love where they are surrounded by friends and family for a new position that offers you a considerably higher salary?

5. How would you rank yourself on the masculine/feminine continuum?

6. How do your feelings contrast with others you know?

What do you think?

Masculine/Feminine

Masculine Material success Ambition,

assertive Competitive Live to work Women are

nurturers Achievement

Feminine Quality of life Relationships Concern for weak Work to live Men & Women

nurture Disapprove of high

achievers

95

69 6663 62

57

45

14

5

0

10

20

30

40

50

60

70

80

90

100

Japa

n

Mex

ico

Gre

at B

rita

in

Sout

h A

fric

a

USA

Hon

g K

ong

Tai

wan

Net

herl

ands

Swed

en

Masculine FeminineAverage = 51

Particularistic Universalistic Focus more on

relationships than rules Legal contracts easily

modified Changing mutualities

honored Reality is relative to

participant Relationships evolve

Focus on rules rather than relationships

Legal contracts should be honored

Word and legal contracts honored

One reality, one truth A deal is a deal

Percent who prefer universalistic system

93

90

88

68

64

37

Team Discussion

How would the expectations of employees from a particularistic culture differ from those of a universalistic culture?

Which system do you prefer? Why? What is the value of each of these systems?

What do you think?

1. Do you think Americans respected John Kennedy, Jr. because of what he accomplished or because of his family?

2. Do you think many people voted for our current president because of his father?

3. Would you have the same level of respect as a hospitality manager as a relative of Bill Marriott or Roy Crock would?

4. What difference do you think the school you attended make in your career after you have been working in the field at least five years?

Achievement Ascription

Respected for what you do

Respect of superior based on performance

Limited use of titles Senior managers vary

in age and gender, qualified by achievements

Respected for who you are

Respect for superior seen as commitment to the organization

Extensive use of titles Senior managers are

male, middle-aged, qualified by background (who they are)

Ascription Achievement58

79

81

81

87

89

Hong Kong

Japan

China

Mexico

USA

UK

Respect depends on family backgroundPercent who disagree

What do you think?

1. Do you believe you can control your life or do you believe you have to accept the ways things are?

2. Is your life pre-destined? 3. Do you have a fate over which you have

little or no control? 4. How do other people you know differ in

their believes about controlling fate or destiny?

Locus of Control

Internal Belief in one’s ability

to control fate Respect for conflict

and resistance Focus on self rather

than others Discomfort with lack

of control

External Belief that something

outside oneself is in control

Harmony and responsiveness

Focus on other Comfortable with

changes

Control Fate: Percent who believe they are captains of their fate

Venezuela

JapanHong Kong

S Korea Netherlands UKUSA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Neutral/Affective

Neutral Hide feelings Tension accidentally

revealed Admire poise Avoid hugs, broad

smiles and broad gestures

Monotone

Affective Openly reveal

emotions Expressive Animated expressions Touching, and broad

gestures admired Expression and

emotion

Diffuse (High context)/Specific (low context)

Diffuse (high context) Indirect Evasive, tactful,

ambiguous Context more important

than words Highly situational

morality Prefer neutral

expressiveness Report conclusions at end

Specific (low context) Direct, to the point Precise, blu8nt Words more important

than context Consistent moral stands

regardless of circumstances

Prefer animated expression

Report conclusions and important points first

Cultural Dimensions Summary Power Distance – how should the boss act Uncertainty Avoidance – rules or

common sense Masculine/Feminine – material rewards or

quality of life Individualism/Collectivism – I versus we Universalistic/Particularistic – treat all

equally versus do favors for friends

Cultural Dimensions Summary

Achievement/Ascription – respect for what you do or respect for who you are

Locus of Control – I am in control of my destiny versus outside forces are in control

Neutral/Affective – hide versus display emotions

Diffuse/Specific (high/low context) – indirect versus direct communication