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Part Two:

The Role of Culture

International Management,5th ed.

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International Management,

5th ed.

Hodgetts and Luthans

Chapter Five

The Meanings and Dimensions of Culture

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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 effect on behavior in an international environment

DISCUSS the value of country cluster analysis and relational orientations in developing effective international management practices

Objectives of the Chapter

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The Nature of Culture

Culture The acquired knowledge that people use to interpret

experience and generate social behavior Cultural knowledge forms values, creates attitudes, and

influences behavior Characteristics of culture include:

Learned Shared Transgenerational Symbolic Patterned Adaptive

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Table 5-1 Priorities of Cultural Values

United States 1. Freedom 2. Independence 3. Self-reliance 4. Equality 5. Individualism 6. Competition 7. Efficiency 8. Time 9. Directness10. Openness

Arab Countries 1. Family security 2. Family harmony 3. Parental guidance 4. Age 5. Authority 6. Compromise 7. Devotion 8. Patience 9. Indirectness10. Hospitality

Japan 1. Belonging 2. Group harmony 3. Collectiveness 4. Age/seniority 5. Group consensus 6. Cooperation 7. Quality 8. Patience 9. Indirectness10. Go-between

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Management Approaches Affected by Cultural Diversity

CulturalDiversity

Sort-term vs.long-term horizons

Stability vs.innovation

Individual vs.group rewards Cooperation vs.

competition

Centralized vs. Decentralized

decision making

Informal vs.formal procedures

Safety vs. risk High vs. loworganizational

loyalty

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Figure 5-1 A Model of Culture

Explicit artifacts andproducts of the society

Implicit, basic assumptions that guide

people’s behavior

Norms and valuesthat guide the society

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The Nature of Culture (cont.)

Values in Culture Values

Basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant

Research has identified both differences and similarities in values of different cultural groups

Values in transition Changes taking place in managerial values as a result of both

culture and technology Research on Japanese managers

Individualism on the rise in Japan

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Figure 5-2 Comparing Cultures as Overlapping Normal Distribution

French Culture U.S. Culture

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Figure 5-3 Stereotyping from the Cultural Extremes

French Culture U.S. Culture

How Americans see the French• arrogant•flamboyant•hierarchical•emotional

How French see Americans• naive

•aggressive•unprincipled

•workaholic

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Cultural Dimensions

Geert Hofstede Power distance - extent to which less powerful members of

organizations accept the unequal power distribution Uncertainty avoidance - extent to which people feel

threatened by ambiguous situations and have created beliefs and institutions that try to avoid these

Individualism - tendency of people to look after themselves and their immediate family only Collectivism - tendency of people to belong to groups or

collectives and to look after each other in exchange for loyalty Masculinity - culture in which the dominant values are

success, money, and things Femininity - dominant values are caring for others and quality of

life

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Attitudinal Dimensions of Culture

Work Value and Attitude Similarities Research has revealed many similarities in both work

values and attitudes Ronen and Kraut

Smallest space analysis (SSA) - maps the relationship among countries by showing the distance between each on various cultural dimensions

Can identify country clusters Ronen and Shenkar

Examined variables in four categories Importance of work goals Need deficiency, fulfillment, and job satisfaction Managerial and organizational variables Work role and interpersonal orientation

Identified eight country clusters and four independent countries

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Figure 5-8 A Synthesis of Country Cultures

NORDIC

FinlandDenmark

Sweden

NEAREASTERN

Turkey

GreeceIranARAB

Oman

Bahrain

Abu-Dhabi

Saudi Arabia

GERMANIC

Austria

Germany

Switzerland

FAREASTERN

MalaysiaSingaporeHongKong

PhilippinesIndonesia

Taiwan

INDEPENDENTIndiaJapan

IsraelBrazil

ANGLO

United Kingdom

Canada

United States

Ireland

South AfricaLATIN

AMERICAN

Argentina

MexicoChile

Peru

LATINEUROPEAN

France

Belgium

Italy Spain

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Trompenaars’ Cultural Dimensions

Research produced five cultural dimensions that are based on relationship orientations and attitudes toward both time and the environment

Universalism vs. Particularism Universalism - belief that ideas and practices can be

applied everywhere in the world without modification Focus on formal rules and rely on business contacts

Particularism - belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere Focus on relationships, working things out to suit the parties

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Trompenaars’ Cultural Dimensions (cont.)

Individualism vs. Communitarianism Individualism - people regard themselves as individuals

Rely on individuals to make decisions Communitarianism - people regard themselves as part

of a group Seek consultation and mutual consent before making decisions

Neutral vs. Emotional Neutral - culture in which emotions are held in check

People try not to show their feelings Emotional - culture in which emotions are expressed

openly and naturally People smile, talk loudly, greet each other with enthusiasm

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Trompenaars’ Cultural Dimensions (cont.)

Specific vs. Diffuse Specific - culture in which individuals have a large

public space they readily share with others and a small private space they guard closely and share with only close friends and associates People often are open and extroverted Work and private life are separate

Diffuse - culture in which both public and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well People often appear indirect and introverted, and work and

private life often are closely linked

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Trompenaars’ Cultural Dimensions (cont.)

Achievement vs. Ascription Achievement - culture in which people are accorded

status based on how well they perform their functions Ascription - culture in which status is attributed based

on who or what a person is For example, status may be accorded on the basis of age,

gender, or social connections

Time Sequential approach to time - people do one thing at a

time, keep appointments strictly, follow plans to the letter

Synchronous approach - people do more than one thing at a time, appointments are approximate

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Trompenaars’ Cultural Dimensions (cont.)

Environment Inner-directed

People believe in controlling environmental outcomes

Outer-directed People believe in allowing things to take their natural course

Cultural Patterns or Clusters Defined groups of countries that are similar to each

other in terms of the five dimensions and the orientations toward time and the environment

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Table 5-5Trompenaars’ Cultural Groups

Anglo cluster

Relationship United States United Kingdom

Individualism x x

Communitarianism

Specific relationship x x

Diffuse relationship

Universalism x x

Particularism

Neutral relationship x

Emotional relationship x

Achievement x x

Ascription

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Table 5-5Trompenaars’ Cultural Groups

Asian cluster

Relationship Japan China Indonesia Hong Kong Singapore

Individualism

Communitarianism x x x x x

Specific relationship

Diffuse relationship x x x x x

Universalism

Particularism x x x x x

Neutral relationship x x x x

Emotional relationship x

Achievement

Ascription x x x x x

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Table 5-5Trompenaars’ Cultural Groups

Latin American cluster

Relationship Argentina Mexico Venezuela Brazil

Individualism x x x

Communitarianism

Specific relationship

Diffuse relationship x x x x

Universalism

Particularism x x x x

Neutral relationship x x x

Emotional relationship x

Achievement x x

Ascription x x

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Table 5-5Trompenaars’ Cultural Groups

Latin-European cluster

Relationship France Belgium Spain Italy

Individualism x

Communitarianism x x x

Specific relationship x x

Diffuse relationship x x

Universalism x x x

Particularism x

Neutral relationship x

Emotional relationship x x x

Achievement x

Ascription x x x

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Table 5-5Trompenaars’ Cultural Groups

Germanic cluster

Relationship Austria Germany Switzerland Czechoslovakia

Individualism x

Communitarianism x x x

Specific relationship x x x

Diffuse relationship x

Universalism x x x x

Particularism

Neutral relationship x x

Emotional relationship x x

Achievement x x x

Ascription x