Chap004005 The Meanings and Dimensions of CultureInternational Management Culture , Strateg.ppt

,The Meanings and Dimensions of Culture,chapter four,McGraw-Hill/Irwin,Copyright 2009 by The McGraw-Hill Companies,Inc.All Rights Reserved.,Chapter Objectives,DEFINE the term culture,and discuss some of the comparative ways of differentiating cultures.DESCRIBE the concept of cultural values,and relate some of the international differences,similarities,and changes occurring in terms of both work and managerial values.IDENTIFY the major dimensions of culture relevant to work settings,and discuss their effects on behavior in an international environment.DISCUSS the value of country cluster analysis and relational orientations in developing effective international management practices.,The Nature of Culture,Culture defined:Acquired knowledge that people use to interpret experience and generate social behavior.This knowledge forms values,creates attitudes,and influences behavior.,Characteristics of Culture,LearnedSharedTrans-generationalSymbolicPatternedAdaptive,Priorities of Cultural Values,How Culture Affects Managerial Approaches,Centralized vs.Decentralized Decision Making:In some societies,top managers make all important organizational decisions.In others,these decisions are diffused throughout the enterprise,and middle-and lower-level managers actively participate in,and make,key decisions.,How Culture AffectsManagerial Approaches,Safety vs.Risk:In some societies,organizational decision makers are risk averse and have great difficulty with conditions of uncertainty.In others,risk taking is encouraged,and decision making under uncertainty is common.,How Culture AffectsManagerial Approaches,Individual vs.Group Rewards:In some countries,personnel who do outstanding work are given individual rewards in the form of bonuses and commissions.In others,cultural norms require group rewards,and individual rewards are frowned upon.,How Culture AffectsManagerial Approaches,Informal Procedures vs.Formal Procedures:In some societies,much is accomplished through informal means.In others,formal procedures are set forth and followed rigidly.,How Culture AffectsManagerial Approaches,High Organizational Loyalty vs.Low Organizational LoyaltyIn some societies,people identify very strongly with their organization or employer.In others,people identify with their occupational group,such as engineer or mechanic.,How Culture AffectsManagerial Approaches,Cooperation vs.CompetitionSome societies encourage cooperation between their people.Others encourage competition between their people.,How Culture AffectsManagerial Approaches,Short-term vs.Long-term HorizonsSome culture focus most heavily on short-term horizons,such as short-range goals of profit and efficiency.Others are more interested in long-range goals,such as market share and technologic developments.,How Culture AffectsManagerial Approaches,Stability vs.InnovationThe culture of some countries encourages stability and resistance to change.The culture of others puts high value on innovation and change.,A Model of Culture,Business Customs in South Africa,Arrange meeting before discussing business over phone.Make appointments as far in advance as possible.Maintain eye contact,shake hands,provide business card Maintain a win-win situationKeep presentations short,Values in Culture,ValuesLearned from culture in which individual is rearedDifferences in cultural values may result in varying management practicesBasic convictions that people have aboutRight and wrongGood and badImportant and unimportant,Values in Culture,Values in Culture,Hofstedes Cultural Dimensions,Power distanceUncertainty avoidanceIndividualism/collectivismMasculinity/femininity,Hofstedes Cultural Dimensions,Power distance:Less powerful members accept that power is distributed unequallyHigh power distance countries:people blindly obey superiors;centralized,tall structures(e.g.,Mexico,South Korea,India)Low power distance countries:flatter,decentralized structures,smaller ratio of supervisor to employee(e.g.,Austria,Finland,Ireland),Hofstedes Cultural Dimensions,Uncertainty avoidance:people feel threatened by ambiguous situations;create beliefs/institutions to avoid such situationsHigh uncertainty avoidance countries:high need for security,strong belief in experts and their knowledge;structure organizational activities,more written rules,less managerial risk taking(e.g.,Germany,Japan,Spain)Low uncertainty avoidance countries:people more willing to accept risks of the unknown,less structured organizational activities,fewer written rules,more managerial risk taking,higher employee turnover,more ambitious employees(e.g.,Denmark and Great Britain),Hofstedes Cultural Dimensions,Individualism:People look after selves and immediate family onlyHigh individualism countries:wealthier,protestant work ethic,greater individual initiative,promotions based on market value(e.g.,U.S.,Canada,Sweden)High collectivism countries:poorer,less support of Protestant work ethic,less individual initiative,promotions based on seniority(e.g.,Indonesia,Pakistan),Hofstedes Cultural Dimensions,Masculinity:dominant social values are success,money,and thingsHigh masculine countries:stress earnings,recognition,advancement,challenge,wealth;high job stress(e.g.,Germanic countries)High feminine countries:emphasize caring for others and quality of life;cooperation,friendly atmosphere.,employment security,group decision making;low job stress(e.g.,Norway),Trompenaars Cultural Dimensions,Universalism vs.ParticularismUniversalism:ideas/practices can be applied everywhereHigh 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 particularism countries often modify contracts(e.g.,China,South Korea),Trompenaars Cultural Dimensions,Individualism vs.CommunitarianismIndividualism:people as individualsCountries with high individualism:stress personal and individual matters;assume great personal responsibility(e.g.,Canada,Thailand,U.S.,Japan)Communitarianism:people regard selves as part of groupValue group-related issues;committee decisions;joint responsibility(e.g.,Malaysia,Korea),Trompenaars Cultural Dimensions,Neutral vs.EmotionalNeutral:culture in which emotions not shownHigh neutral countries,people act stoically and maintain composure(e.g.,Japan and U.K.)Emotional:Emotions are expressed openly and naturallyHigh emotion cultures:people smile a lot,talk loudly,greet each other with enthusiasm(e.g.,Mexico,Netherlands,Switzerland),Trompenaars Cultural Dimensions,Specific vs.DiffuseSpecific:large public space shared with others and small private space guarded closelyHigh 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 private space;people indirect and introverted,work/private life closely linked(e.g.,Venezuela,China,Spain),Trompenaars Cultural Dimensions,Achievement vs.AscriptionAchievement culture:status based on how well perform functions(Austria,Switzerland,U.S.)Ascription culture:status based on who or what person is(e.g.,Venezuela,China,Indonesia),Trompenaars Cultural Dimensions,TimeSequential:only one activity at a time;appointments kept strictly,follow plans as laid out(U.S.)Synchronous:multi-task,appointments are approximate,schedules subordinate to relationships(e.g.,France,Mexico)Present vs.Future:Future more important(Italy,U.S.,Germany)Present more important(Venezuela,IndonesiaAll 3 time periods equally important(France,Belgium,Trompenaars Cultural Dimensions,The EnvironmentInner-directed:people believe in control of outcomes(U.S.,Switzerland,Greece,Japan)Outer-directed:people believe in letting things take own course(China,many other Asian countries),Integrating Culture and Management:The GLOBE Project,GLOBE:Global Leadership and Organizational Behavior Effectiveness.Project extends and integrates previous analyses of cultural attributes and variables.Evaluates nine different cultural attributes using middle managers from 951 organizations in 62 countries.Multi-cultural team of 170 scholars from around the world worked together to survey 17,000 managers in 3 industries:financial services,food processing,and telecommunications.Covered every major geographic region of the world.,The GLOBE Project,The 9 Dimensions of the GLOBE Project:Uncertainty avoidancePower distanceCollectivism I:Social collectivismCollectivism II:In-group collectivismGender egalitarianismAssertivenessFuture orientationPerformance orientationHumane orientation,GLOBE Results,Corresponds generally with those of Hofstede and Trompenaars.Different from Hofstede in that many more researchers with varied perspectives were involved(vs.Hofstede workng alone);studied many companies vs.Hofstedes IBM.GLOBE provides a current comprehensive overview of general stereotypes that can be further analyzed for greater insight.,GLOBE Project,GLOBE Analysis,Managing Across Cultures,chapter five,McGraw-Hill/Irwin,Copyright 2009 by The McGraw-Hill Companies,Inc.All Rights Reserved.,Chapter Objectives,The specific objectives of this chapter are:EXAMINE the strategic dispositions that characterize responses to different cultures.DISCUSS cross-cultural differences and similarities.REVIEW cultural differences in select countries and regions,and note some of the important strategic guidelines for doing business in each.,Strategic Predispositions,Four distinct predispositions toward doing things in a particular way:EthnocentricPolycentricRegio-centricGeocentric,Strategic Predispositions,Ethnocentric predispositionA nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions.,Strategic Predispositions,Polycentric predispositionA philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates.,Strategic Predispositions,Regio-centric predispositionA philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis.,Strategic Predispositions,Geocentric predispositionA philosophy of management whereby the company tries to integrate a global systems approach to decision making.,Orientation of an MNC,Cross-Cultural Differences and Similarities,Parochialism and SimplificationParochialism:view world through own eyes and perspectivesSimplification:exhibit same orientation toward different cultural groups,Cross-Cultural Differences and Similarities,Similarities across cultures:Not possible to do business same way in every global locationProcedures and strategies that work well at home cant be adopted overseas without modificationsSome similarities have been foundRussia and U.S.(for example)Traditional managementCommunicationHuman resourcesNetworking activitiesOB Mod,Cross-Cultural Differences and Similarities,Differences across culturesFar more differences than similarities found in cross-cultural researchWages,compensation,pay equity,maternity leaveImportance of criteria used in evaluation of employees,Cultural Clusters,International Human Resource Management,Cultural Differences in SelectedCountries and Regions,Doing Business in ChinaThe Chinese place values and principles above money and expediency.Business meetings typically start with pleasantries such as tea and general conversation about the guests trip to the country,local accommodations,and family.The Chinese host will give the appropriate indication for when a meeting is to begin and when the meeting is over.Once the Chinese decide who and what is best,they tend to stick with these decisions.Although slow in formulating a plan of action,once they get started,they make fairly good progress.,Cultural Differences in SelectedCountries and Regions:China,In negotiations,reciprocity is important.If the Chinese give concessions,they expect some in return.Because negotiating can involve a loss of face,it is common to find Chinese carrying out the whole process through intermediaries.During negotiations,it is important not to show excessive emotion of any kind.Anger or frustration is viewed as antisocial and unseemly.Negotiations should be viewed with a long-term perspective.Those who will do best are the ones who realize they are investing in a long-term relationship.,Cultural Differences in SelectedCountries and Regions,Doing Business in RussiaBuild personal relationships with partners.When there are contract disputes,there is little protection for the aggrieved party because of the time and effort needed to legally enforce the agreement.Use local consultants.Because the rules of business have changed so much in recent years,it pays to have a local Russian consultant working with the company.Ethical behavior in the United States is not always the same as in Russia.For example,it is traditional in Russia to give gifts to those with whom one wants to transact business.Be patient.In order to get something done in Russia,it often takes months of waiting.,Cultural Differences in SelectedCountries and Regions:Russia,Russians like exclusive arrangements and often negotiate with just one firm at a time.Russians like to do business face-to-face.So when they receive letters or faxes,they often put them on their desk but do not respond to them.Keep financial information personal.Russians wait until they know their partner well enough to feel comfortable before sharing financial data.Research the company.In dealing effectively with Russian partners,it is helpful to get information about this company,its management hierarchy,and how it typically does business.,Cultural Differences in SelectedCountries and Regions:Russia,Stress mutual gain.The Western idea of“winwin”in negotiations also works well in Russia.Clarify terminology.The language of business is just getting transplanted in Russia so double-check and make sure that the other party clearly understands the proposal,knows what is expected and when,and is agreeable to the deal.Be careful about compromising or settling things too quickly because this is often seen as a sign of weakness.Russians view contracts as binding only if they continue to be mutually beneficial,so continually show them the benefits associated with sticking to the deal.,Cultural Differences in SelectedCountries and Regions,Doing business in India It is important to be on time for meetings.Personal questions should not be asked unless the other individual is a friend or close associate.Titles are important,so people who are doctors or professors should be addressed accordingly.Public displays of affection are considered to be inappropriate,so one should refrain from backslapping or touching others.,Cultural Differences in SelectedCountries and Regions:India,Beckoning is done with the palm turned down;pointing often is done with the chin.When eating or accepting things,use the right hand because the left is considered to b