team 4 chp 4 & 5
TRANSCRIPT
The Meanings and Dimensions of Culture and Managing Across
CulturesChapter 4 & 5Dylan Parks,Tara Kern,
Ashley Sanders
Cultureo Culture has a large impact on
business1. Learned2. Shared3. Transgenerational4. Symbolic5. Patterned6. Adaptive
Culture cont.o Common practices in one culture
may not be the same in otherso The practice of handshaking is a
good example
Different Cultural Values
o Centralized vs. Decentralized Decision Making
o Safety vs. Risko Individual vs. Group Rewardo Informal vs. Formal Procedureso High vs. Low Organizational Loyaltyo Cooperation vs. Competitiono Short-term vs. Long-term horizonso Stability vs. Innovation
Valueso Value – Basic conviction people have
regarding right and wrong, good and bad, etco Different cultures have different valueso There is a strong relationship between
management values and success; more successful managers tend to favor pragmatic, dynamic, achievement orientated values, while less successful managers tend to have more static and passive values
o Values are changing over time
Hofstede’s Cultural Dimensions
o Power Distanceo Uncertainty Avoidanceo Individualism/Collectivismo Masculinity/Femininity
Power Distanceo The extent to which less powerful
members of institutions and organizations accept that power is distributed unequally
o Higher power distance – strict obedienceo Organizations in high power distance
countries tend to centralized with tall organization structures
o Lower power distance organizations tend to be decentralized and have flatter organizational structures
Uncertainty Avoidanceo The extent to which people feel threatened
by ambiguous situations and have created institutions to try and avoid these
o Low Uncertainty Avoidance – Less formal rules, more risks taken, more ambitious employees, less structure, more employee responsibility
o High Uncertainty Avoidance – Very structured, more formal rules, less risks taken, less ambitious employees
Individualism/Collectivism
o Individualism - The tendency of people to look after themselves and their immediate family only
o Collectivism – The tendency of people to belong to groups and look after each other in exchange for loyalty
o Wealthy countries tend to be more individualistic, poorer countries tend to be more collectivistic
o Individualistic countries value Protestant work ethic, more individual initiative, promotions based on market value
o Collectivistic countries (opposite)… promotions based on seniority
Masculinity/Femininityo Masculinity – Situation in which dominant
values in society are success, money, and things
o Great importance is placed on earnings, recognition, advancement, and challenge
o Femininity – Situation in which the dominant values in society are caring for others and the quality of life
o Importance is placed on cooperation, a friendly atmosphere, and employment security
Trompenaar’s Dimensions
o Universalism vs. Particularismo Individualism vs.
Communitarianismo Neutral vs. Emotionalo Specific vs. Diffuseo Achievement vs. Ascription
Universalism vs. Particularism
o Universalism – The belief that ideas and practices can be applied everywhere with no modification
o Universalism – More emphasis on formal rules than on relationships and trust
o Particularism – The belief that circumstances dictate how ideas and practices should be applied
o Particularism – More emphasis on trust and relationships than formal rules; relationships affect how business deals are done
Individualism vs. Communitarianism
o Communitarianism – Refers to people regarding themselves as part of a group
o Similar to the Individualism/Collectivism comparison of Hofstede
o The two studies found different results; this could possibly be from changing cultural values
Neutral vs. Emotionalo Neutral Culture – Culture in which
emotions should be kept in check and not shown
o Emotional Culture – Culture in which emotions are shown freely
Specific vs. Diffuseo Specific Culture – Large, shared
public space and small private space shared only with close friends/associates
o Diffuse culture – Public and private space are similar and both are guarded equally
Achievement vs. Ascription
O Achievement culture: status based on performanceO Sales, promotions, experience
O Ascription culture: status based on who/what person isO Age, gender, social connections
TimeO Perception of time = major cultural
differenceO Sequential
O one task at a time, strictly abide by deadlines and show preference for following rules
O SynchronousO multitasking, appointments are
approximate (likely to change) and schedules are subordinate to relationships
Strategic Predispositions
O EthnocentricO values and interests of parent co guide strategic
decisionsO Polycentric
O decisions tailored to suit culture of country MNC is operating from
O RegiocentricO tries to blend own interests w/ those of its
subsidiaries on regional basisO Geocentric
O tries to integrate global systems approach to decision making
Globalization Imperative
O belief one worldwide approach to doing business is the key to both effectiveness and efficiencyO Study: most MNCs use same business
strategy abroad as at home; effective MNCs take step further to address local needs as well
Adjusting Global Strategies for Regional Markets
O ChallengesO MNCs must be aware of local market
conditions & not assume all markets the same
O MNCs must know strengths & weaknesses of its subsidiaries
O MNCs must give subsidiaries more independence
ParochialismO Tendency to view the world through
one’s own eyes and perspectives
O Problems?
SimplificationO Process of exhibiting the same
orientation toward different cultural groupsO Reflects one’s basic culture
O Due to misunderstanding/not knowing the culture
Similarities O How is it useful for businesses to
know about cultural similarities?O Think about: individual employees;
customers; business partners
DifferencesO Why is it important for businesses to
know about cultural differences?O Think about: individual employees;
customers; business partners
Name that CountryO Labor laws in this country requires
that employees receive full pay 365 days a year.
O Some parts of this country have legislated pay equity (comparable worth).
O In this country, compensation levels are determined by using age, length of service, and educational background (rather than skill, ability, and performance).
Name that Country (cont.)
O In this country, employees are allowed up to 40 weeks of maternity leave and employers must provide a government-mandated amount of pay for 18 of those weeks.
O In about 87% of large companies in this country, the head of human resources is on the board of directors.