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+ Chapter 4 The Meanings and Dimensions of Culture

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Page 1: Chapter 4 and 5 Powerpoint

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Chapter 4The Meanings and Dimensions of Culture

Page 2: Chapter 4 and 5 Powerpoint

+Culture

Article: Emphasis on face to face interaction in Japan

International managers need to keep in mind that practices around the world differ greatly

Culture: acquired knowledge that people use to interpret experience and generate social behavior; forms values, creates attitudes, and influences behaviors Can be learned, shared, transgenerational, symbolic,

patterned, and adaptive

Page 3: Chapter 4 and 5 Powerpoint

+Cultural Diversity

Centralized v. Decentralized Decision Making who makes the decisions?

Safety v. Risk should people make risky decisions?

Individual v. Group Rewards how does the culture reward success?

High v. Low Organizational Loyalty do people identify with the employer or the job more?

Cooperation v. Competition how should employees interact in the workplace?

Page 4: Chapter 4 and 5 Powerpoint

+US v. Japan v. Germany

Decision Making: US and Germany are more decentralized, Japan centralized

Safety v. Risk: US takes most risk, Germany moderate risk, Japan focuses on safety

Rewards: US and Germany focus on individual rewards, Japan focuses on group rewards

Loyalty: Japan is loyal to organization, US and Germany loyal to occupational group

Cooperation v. Competition: Japan likes cooperation, US and Germany prefer competition

Page 5: Chapter 4 and 5 Powerpoint

+Components of culture

The explicit artifacts and products of the society (buildings, language, food)

The norms and values that guide the society

The implicit , basic assumptions that guide people’s behavior

Page 6: Chapter 4 and 5 Powerpoint

+Values

Values are basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant

Can values change over time?

Japanese values seem to be changing after a long term recession; “era of personal responsibility”

Page 7: Chapter 4 and 5 Powerpoint

+Hofstede’s Four Dimensions

Dutch researcher Geert Hofstede identified four main dimensions of culture Power Distance: the extent to which less powerful members

of organizations accept that power is distributed unequally Uncertainty Avoidance: the extent to which people feel

threatened by ambiguous situations and have created beliefs and institutions that try to avoid these High uncertainty avoidance: high need for security and a

strong belief in experts; Germany, Japan Low uncertainty avoidance: more willing to accept risks;

Denmark, Great Britain

Page 8: Chapter 4 and 5 Powerpoint

+Hofstede’s Four Dimensions (cont.)

Individualism: the tendency of people to look after themselves and their immediate family only Opposite is collectivism,

which is the tendency to belong to groups and to look after each other in exchange for loyalty.

Masculinity: a cultural characteristic in which the dominant values in a society are success, money, and things. The contrary is femininity,

which is a cultural characteristic in which the dominant values are caring for others and the quality of life.

Page 9: Chapter 4 and 5 Powerpoint

+Trompenaars Cultural Dimensions

Another view is that of Fons Trompenaars, with five relationship orientations that address the ways in which people deal with each other Universalism v. Particularism

Universalism is the belief that ideas and practices can be applied everywhere without modification, so they focus on formal rules

Particularism is the idea that circumstances dictate how ideas and practice should be applied, so they focus more on relationships and trust

Individualism v. Communitarianism Communitarianism has the same idea as collectivism

Page 10: Chapter 4 and 5 Powerpoint

+ Neutral v. Emotional

Neutral culture is one in which emotions are held in check (United Kingdom)

Emotional culture is one in which emotions are expressed openly and naturally (Mexico and the Netherlands)

Specific v. Diffuse Specific culture is one in which individuals have a large public

space they readily let others enter and share and a small pricate space they guard closely and share with only close friends and associates. There is a strong separation of work and personal life.

Diffuse culture is one in which public space and private space are similar in size and individuals guard their public space carefully b/c entry into public space affords entry into private space. Work and private life are closely linked.

Page 11: Chapter 4 and 5 Powerpoint

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Achievement v. Ascription: Achievement cultures focus on how well people perform Ascription cultures focus on who or what the person is

Page 12: Chapter 4 and 5 Powerpoint

+US v. Japan v. Germany

US has high individualism and low power distance, weak uncertainty avoidance, moderate degree of masculinity

Japan has moderate individualism and moderate power distance, strong uncertainty avoidance, and a very high degree of masculinity

Germany has slightly lower individualism and low power distance, moderate uncertainty avoidance, and a high degree of masculinity

Page 13: Chapter 4 and 5 Powerpoint

+Time

Sequential time v. Synchronous time In cultures that have sequential approaches, people tend to

do one thing at a time, and they follow plans strictly. (United States)

In cultures with synchronous approaches, people do multiple things at a time and things like appointments are subject to change. (France and Mexico)

Example: People in the US will keep an appointment, while in Mexico they might change it if something else comes up.

Page 14: Chapter 4 and 5 Powerpoint

+Environment

Two views of the environment Idea that managers are in control of their fate and

environment Dominant in US thought

Idea that they must “go with the flow” Dominant in Asian nations

Example: US govt urging Japanese car companies to purchase component parts in order to balance the flow of trade (quid pro quo)

Page 15: Chapter 4 and 5 Powerpoint

+GLOBE Project

Global Leadership and Organizational Behavior Effectiveness: a multicountry study and evaluation of cultural attributes and leadership behaviors among more than 17,000 managers from 951 organizations and 62 countries; measures cultural differences

Meta-goal was to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes.

Page 16: Chapter 4 and 5 Powerpoint

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Chapter 5Managing Across Cultures

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+Strategic Predispositions

Ethnocentric predisposition: a nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions

Polycentric predisposition: a philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates

Regiocentric predisposition: a philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis

Geocentric predisposition: a philosophy of management whereby the company tries to integrate a global systems approach to decision making

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+Meeting the Challenge

Globalization imperative: a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness

A large number of companies use a large number use the same strategies abroad as they do at home (US, Canada, France, Germany, Japan, UK)

Page 19: Chapter 4 and 5 Powerpoint

+Meeting the Challenge

Factors that help facilitate the need to develop unique strategies for different cultures, including: The diversity of worldwide industry standards A continual demand by local customers for differentiated

products The importance of being an insider The difficulty of managing global organizations The need to allow subsidiaries to use their own abilities

and talents and not be restrained by headquarters

Page 20: Chapter 4 and 5 Powerpoint

+Cross- Cultural Differences and Similarities

Parochialism: the tendency to view the world through one’s own eyes and perspectives

Simplification: process of exhibiting the same orientation toward different cultural groups

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+Example of Similarities

Korean firms and US firms As organizational size inc, commitment declined As structure became more employee-focused, commitment

increased the more positive the perception of organizational climate,

the greater the employee commitment

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+Differences Across Cultures

Different clusters require a different approach to forming an effective compensation strategy Pacific rim countries – incentive plans should be group-based EU nations (France, Spain, Italy, and Belgium) – similar

compensation strategies Great Britain, Ireland, and the United States – managers value

their individualism and are motivated by the opportunity for earnings, recognition, advancement, and challenge

Study – US affiliates used a hybrid form of HRM practices, where they closely follow local practices when dealing with the rank and file but even more closely approximate parent- company when dealing with upper-level management

Page 23: Chapter 4 and 5 Powerpoint

+Doing Business in China Technical competence – send

engineers to answer questions in precise detail

Punctual

Nod to show that they understand

Guanxi; “good connections”

Guanxi represents nepotism, where individuals in authority make decisions on the basis of family ties or social connections rather than objective indices

Good listening skills

Collective society in which people pride themselves on being members of a group

Page 24: Chapter 4 and 5 Powerpoint

+Doing Business in Russia Build personal relationship with

partners – personal relationships are very important

Use local consultants

Different business ethics (giving bribes)

Could take months for something to get done, so be patient

Stress exclusivity

Be careful about compromising or settling things too quickly, because this is often seen as a sign of weakness

Page 25: Chapter 4 and 5 Powerpoint

+Doing Business in India

Be on time for meetings

Unless close, personal questions shouldn’t be asked

Public displays of affection are considered inappropriate

The namaste gesture can be used to greet people

Bargaining for goods and services is common

Pointing is done with the chin and beckoning is done with the palm turned down

Page 26: Chapter 4 and 5 Powerpoint

+Doing Business in Brazil Physical contact is an acceptable

form of communication

Face-to-face is preferred as a way to communicate, so avoid simply e-mailing or calling

Form a strong relationship before bringing up business issues (tend not to trust people)

Appearance is very important

Patience, because many processes are drawn out

Still be prepared despite the slow processes and relaxed environments