2 Chapter 1 Meanings and Dimensions of Culture OutlineChap1-1 Cross-cultural managementChap1-2 GlobalizationChap1-3 Definitions of cultureChap1-4 Nature of cultureChap1-5 Cultural valuesChap1-6 Dimensions of cultureChap1-7 Attitudinal Dimensions of CultureChap1-8 Trompenaars’ s Cultural Dimensions
3 Chap1-1 Cross-cultural management : Managing different culture Issues of diversity(Gender, Generational, culturalReligion, caste, Income group)
4 What is Cross-Cultural Management? CCM is a fairly new field that is based on theories and research from:Cross Cultural PsychologyCross-cultural psychology is the scientific study of human behavior and mental processes, including both their variability and invariance, under diverse cultural conditions.
5 International Business International Business comprises all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundaries.
6 Organizational Behaviour Organizational behavior (OB) is "the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself." (p.4)  OB can be divided into three levels: the study of (a) individuals in organizations (micro-level), (b) work groups (meso-level), and (c) how organizations behave (macro-level)
7 Human ResourcesHuman resources is the set of individuals who make up the workforce of an organization, business sector, or economy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and can contribute to an organization). Likewise, other terms sometimes used include "manpower", "talent", "labour", or simply "people".
8 AnthropologyAnthropology /ænθrɵˈpɒlədʒi/ is the study of humans, past and present, that draws and builds upon knowledge from the social sciences and biological sciences, as well as the humanities and the natural sciences.
9 Goals for Cross-Cultural Management Cross Cultural Management seeks tounderstand how national cultures affect management practicesidentify the similarities and differences across cultures in various management practices and organizational contextsincrease effectiveness in global management
11 Globalization Like it or not, globalization is here…to stay. Most large companies have some kind of business relations with customers, companies, employees or various stake-holders in other countries…and cultures. (Global corporations)Many employees and managers deal with people from other cultures on a constant basisMost of us have a close experience with only one or two cultures…=>
12 GlobalizationWe do not understand people from other cultures as readily and intuitively as people from our own culture =>Cross cultural management helps organization members to gain better understanding of other cultures, of their culture and of the consequences of people from different cultures working together
17 Culture is learned. It is not biological; we do not inherit it Culture is learned. It is not biological; we do not inherit it. Much of learning culture is unconscious. We learn culture from families, peers, institutions, and media. The process of learning culture is known as enculturation. While all humans have basic biological needs such as food, sleep, and sex, the way we fulfill those needs varies cross-culturally.·
18 Culture is shared. Because we share culture with other members of our group, we are able to act in socially appropriate ways as well as predict how others will act. Despite the shared nature of culture, that doesn’t mean that culture is homogenous (the same). The multiple cultural worlds that exist in any society are discussed in detail below.·
19 Culture is based on symbols Culture is based on symbols. A symbol is something that stands for something else. Symbols vary cross-culturally and are arbitrary. They only have meaning when people in a culture agree on their use. Language, money and art are all symbols. Language is the most important symbolic component of culture.· ·
20 Culture is dynamic. This simply means that cultures interact and change. Because most cultures are in contact with other cultures, they exchange ideas and symbols. All cultures change, otherwise, they would have problems adapting to changing environments. And because cultures are integrated, if one component in the system changes, it is likely that the entire system must adjust.
21 Culture is integrated. This is known as holism, or the various parts of a culture being interconnected. All aspects of a culture are related to one another and to truly understand a culture, one must learn about all of its parts, not only a few.
22 Cultural diversity (P4: Culture and types of handshake) Cultural values(P5: Priorities of cultural values: US, Japan)(P5: examples where culture can affect management approaches)Depict cultural diversity through concentric circles.
24 Priorities of Cultural Values United States1. Freedom2. Independence3. Self-reliance4. Equality5. Individualism6. Competition7. Efficiency8. Time9. Directness10. OpennessJapan1. Belonging2. Group harmony3. Collectiveness4. Age/seniority5. Group consensus6. Cooperation7. Quality8. Patience9. Indirectness10. Go-betweenArab Countries1. Family security2. Family harmony3. Parental guidance4. Age5. Authority6. Compromise7. Devotion8. Patience9. Indirectness10. Hospitality
25 Management Approaches Affected by Cultural Diversity Centralized vs.Decentralizeddecision makingCulturalDiversityInformal vs.formal proceduresSafety vs. riskHigh vs. loworganizationalloyaltyIndividual vs.group rewardsCooperation vs.competitionSort-term vs.long-term horizonsStability vs.innovation
26 Summary of what we learned last week Introduction to the course of cross-cultural management and our international teaching teamGoals for Cross-cultural managementNature of culture
27 We will learn today A model of culture: concentric circles Comparing culture as a normal distributionValues in cultureHofstede’s cultural dimensions
28 A model of culture: concentric circles Outer layer: observable, e.g. language, food, buildings, art.Middle layer: helps people understand how they should behave.Inner layer: intangible, helpful for problem-solving and well interactions with other people.Explicit artifacts andproducts of the societyImplicit, basicassumptions that guidepeople’s behaviorNorms and valuesthat guide the society
29 Comparing Cultures as Overlapping Normal Distribution Chinese CultureU.S. Culture??Chinese culture and American culture have quite different norms and values. The normal distribution curves for the two cultures have only limited overlap. When looking at the tail ends of the two curves, it is possible to identify stereotypical views held by Chinese about Americans and Americans about Chinese. Give some examples.
30 Stereotyping from the Cultural Extremes: Brugha and Du’s research How Americans see the Chinesein communityavoid confrontation(keep in harmony)respect for authoritiesand seniorsHow Chinese see Americansindividualismface confrontation(arguments and debates)respect for achievementsChinese CultureU.S. Culture
31 Values in CultureValues: basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant.Value differences and similarities across cultures: P 10: “common personal values”U.S. Values and possible alternativesValues in transition: work values change over time.
32 Dominant Western Values in Workforce CareerStageEntered theWorkforceApproximateCurrent AgeDominantWork Values1. ProtestantWork Ethic2. Existential3. Pragmatic4. Generation XMid-1940s toLate 1950s1960s toMid-1970sMid-1970s toMid-1980sthrough 1990s50 to 6535 to 5035 to 35Under 25Hard working; loyal tofirm; conservativeNonconforming; seeksautonomy; loyal to selfAmbitious, hard worker;loyal to careerFlexible, values leisure;loyal to relationshipsWorkers who grew up influenced by the Great Depression, World War II, U.S. leadership in world manufacturing, the Andrews sisters, and the Berlin blockade entered the workforce from the mid-1940s to the late 1950s. They believed in the Protestant work ethic. Once hired, they tend to be loyal to an employer. They are likely to value family security and a comfortable life.Employees who entered the workforce from the 1960s to the mid-1970s were influenced by John F. Kennedy, the civil rights movement, the Beatles, and the war in Vietnam. They brought with them a large measure of the “hippie ethic” and existential philosophy. Quality of life is more important to them than money and possessions. They value autonomy, freedom, and equality.Those who entered the workforce from the mid-1970s through the mid-1980s reflect society’s return to more traditional values but with a greater emphasis on achievement and material success. They were influenced by Ronal Reagan, the defense build-up, dual-career households, and $150,000 starter homes. They are pragmatists who believe that ends can justify means. A sense of accomplishment and social recognition rank high for them.The lives of the members of Generation X have been shaped by globalization, the fall of Communism, MTV, AIDS, and computers. They value flexibility, life options, job satisfaction, family, and relationships. Money is important as an indicator of career performance, but they are willing to trade off leisure time for increases in salary, titles, security, and promotions.
34 Hofstede’s Cultural Dimensions Dutch researcher Geert Hofstede found there are four dimensions of culture.Hofstede’s initial data: questionnaire surveys with over respondents from over 70 different countries who worked in the local subsidiaries of IBM.The fifth dimension was added later.Criticized because of its focus on just one company.Popular in the research field of cross-cultural management.
35 Hofstede’s Five Cultural Dimensions Power Distance Uncertainty AvoidanceIndividualismMasculinityLong-Term OrientationHofstede’sFive CulturalDimensionsAccording to Hofstede, culture can be classified according to five dimensions.Power distance is the extent to which people accept unequal distributions of power. In higher power distance cultures, there is a wider gap between the powerful and the powerless.Uncertainty avoidance is the extent to which the culture tolerates ambiguity and uncertainty. High uncertainty avoidance leads to low tolerance for uncertainty and a search for absolute truths.Individualism is the extent to which either individuals or closely-knit social structures are the basis for social systems. Individualism leads to self-reliance and individual achievement.Masculinity is the extent to which assertiveness and independence are valued. High masculinity fosters high sex-role differentiation and focuses on ambition, independence, and material goods.Long-term orientation is the extent to which people focus of the past, the present, or the future. Present orientation focuses on short-term performance.Hofstede’s five dimensions can help managers classify cultures and predict organizational and managerial styles. But while his model provides a general ranking for a country, there may be many differences among the groups within a country.10
36 Low: people treated as equals despite social status Power Distance: the extent to which less powerful members of organizations accept that power is distributed unequally.Low: people treated as equals despite social statusHigh: people accept authority relationsUncertainty avoidance: the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these.Low: prefer few formal rulesHigh: want clear behavioral guides
37 A bipolar continuum Low: group behavior important Individualism/collectivism: the tendency of people to look after themselves and their immediate family only (belong to groups or collectives and to look after each other in exchange for loyalty).Low: group behavior importantHigh: individual behavior importantA bipolar continuumHofstede measured this cultural difference on a bipolar continuum with individualism at one end and collectivism at the other.IndividualismIndividualismIndividualismCollectivismCollectivism
38 Masculinity/femininity: a situation in which the dominant values in society are success, money, and things (caring for others and the quality of life).Low: cooperation; friendly atmosphere; employment security; low stress; warm interpersonal relationships.High: competition; challenge; recognition; wealth; advancement; high stress; tight control.A continuumHofstede measured this dimension on a continuum ranging from masculinity to femininity.MasculinityFemininity
39 Low: respect for tradition, personal stability, focused on the past Long–term orientation: value placed on persistence, status, thriftLow: respect for tradition, personal stability, focused on the pastHigh: perseverance, thrift, focused on the futureThis dimension was added to depict the influence of Confucianism in Asia.This dimension is similar to “Adjusting” proposed by Brugha and Du.
40 Examples of Cultural Dimensions CountryPower DistanceIndividualism*Masculinity**Uncertainty AvoidanceLong-term Orientation***IndiaHighLowModerateFranceGermanyHong KongIndonesiaJapanNetherlandsRussiaUnited StatesWest AfricaDifferent countries have different scores in terms of Hofstede’s cultural dimensions.* A low score is synonymous with collectivism** A low score is synonymous with masculinity*** A low score is synonymous with a short-term orientation
41 Additional Frameworks Two additional perspectives, of social/cross-cultural psychologists merit attention:Markus & Kitayama: Independent & Interdependent ConstrualsTriandis: Individualism-Collectivism
42 Vertical & Horizontal Individualism & Collectivism Harry Triandis: Combination of Individualism vs. collectivism and power & achievement vs. benevolence & universalismVI: achievement + individualism (USA)HI: universalism + individualism (Sweden)VC: power + collectivism (India)HC: benevolence + collectivism (Israel; rare)
43 Schwartz’s Values Universalism Benevolence Conformity & tradition SecurityPowerAchievementHedonismStimulationSelf Direction
45 Empirical test of the Theory 75,000 + respondents, varied samples in 68 countriesInstrument lists 57 abstract value items“How important is each item as a guiding principle in your life?”
46 Tasks in the next session: Students’ talks and presentationsDiscussion in groups: how to learn Cross-cultural management?Assignment after class:Read a paper on Hofstede’s cultural dimensions.
47 Preview Integrating Hofstede’s cultural dimensions Attitudinal dimensions of cultureTrompenaars’s cultural dimensionsIntegrating culture and management
48 Chap1-7 Attitudinal Dimensions of Culture Work Value and Attitude SimilaritiesResearch has revealed many similarities in both work values and attitudesRonen and KrautSmallest space analysis (SSA) - maps the relationship among countries by showing the distance between each on various cultural dimensionsCan identify country clustersRonen and ShenkarExamined variables in four categoriesImportance of work goalsNeed deficiency, fulfillment, and job satisfactionManagerial and organizational variablesWork role and interpersonal orientation
50 GLOBE ProjectMulti-country study and evaluation of cultural attributes and leadership behaviorAre transformational characteristics of leadership universally endorsed?170 country co-investigators65 different cultures17,500 middle managers800 organisations
51 GLOBE ProjectWhat traits are universally viewed as impediments to leadership effectiveness?Based on beliefs thatCertain attributes that distinguish one culture from others can be used to predict the most suitable, effective and acceptable organizational and leader practices within that cultureSocietal culture has direct impact on organizational cultureLeader acceptance stems from tying leader attributes and behaviors to subordinate norms
52 GLOBE Cultural Variable Results Variable Highest Medium LowestRanking Ranking RankingAssertiveness Spain, U.S. Egypt, Ireland Sweden, New ZealandFuture orientation Denmark, Canada Slovenia, Egypt Russia, ArgentinaGender differentiation South Korea, Italy, Brazil Sweden DenmarkEgyptUncertainty avoidance Austria, Denmark Israel, U.S. Russia, HungaryPower distance Russia, Spain England, France Demark, NetherlandsCollectivism/Societal Denmark, Hong Kong, U.S. Greece, HungarySingaporeIn-group collectivism Egypt, China England, France Denmark, NetherlandsPerformance orientation U.S., Taiwan Sweden, Israel Russia, ArgentinaHumane orientation Indonesia, Egypt Hong Kong, Germany, SpainSweden
53 Chap1-8 Trompenaars’ Cultural Dimensions Research produced five cultural dimensions that are based on relationship orientations and attitudes toward both time and the environmentUniversalism vs. ParticularismUniversalism - belief that ideas and practices can be applied everywhere in the world without modificationFocus on formal rules and rely on business contactsParticularism - belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhereFocus on relationships, working things out to suit the parties
54 Trompenaars’ Cultural Dimensions (cont.) Individualism vs. CommunitarianismIndividualism - people regard themselves as individualsRely on individuals to make decisionsCommunitarianism - people regard themselves as part of a groupSeek consultation and mutual consent before making decisionsNeutral vs. EmotionalNeutral - culture in which emotions are held in checkPeople try not to show their feelingsEmotional - culture in which emotions are expressed openly and naturallyPeople smile, talk loudly, greet each other with enthusiasm
55 Trompenaars’ Cultural Dimensions (cont.) Specific vs. DiffuseSpecific - 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 associatesPeople often are open and extrovertedWork and private life are separateDiffuse - 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 wellPeople often appear indirect and introverted, and work and private life often are closely linked
56 Trompenaars’ Cultural Dimensions (cont.) Achievement vs. AscriptionAchievement - culture in which people are accorded status based on how well they perform their functionsAscription - culture in which status is attributed based on who or what a person isFor example, status may be accorded on the basis of age, gender, or social connectionsTimeSequential approach to time - people do one thing at a time, keep appointments strictly, follow plans to the letterSynchronous approach - people do more than one thing at a time, appointments are approximate
57 Trompenaars’ Cultural Dimensions (cont.) EnvironmentInner-directedPeople believe in controlling environmental outcomesOuter-directedPeople believe in allowing things to take their natural courseCultural Patterns or ClustersDefined groups of countries that are similar to each other in terms of the five dimensions and the orientations toward time and the environment
58 Trompenaars’ Cultural Groups Anglo clusterRelationship United States United KingdomIndividualism x xCommunitarianismSpecific relationship x xDiffuse relationshipUniversalism x xParticularismNeutral relationship xEmotional relationship xAchievement x xAscription
59 Trompenaars’ Cultural Groups Asian clusterRelationship Japan China Indonesia Hong Kong SingaporeIndividualismCommunitarianism x x x x xSpecific relationshipDiffuse relationship x x x x xUniversalismParticularism x x x x xNeutral relationship x x x xEmotional relationship xAchievementAscription x x x x x
60 Trompenaars’ Cultural Groups Latin American clusterRelationship Argentina Mexico Venezuela BrazilIndividualism x x xCommunitarianismSpecific relationshipDiffuse relationship x x x xUniversalismParticularism x x x xNeutral relationship x x xEmotional relationship xAchievement x xAscription x x
61 Trompenaars’ Cultural Groups Latin-European clusterRelationship France Belgium Spain ItalyIndividualism xCommunitarianism x x xSpecific relationship x xDiffuse relationship x xUniversalism x x xParticularism xNeutral relationship xEmotional relationship x x xAchievement xAscription x x x
62 Trompenaars’ Cultural Groups Germanic clusterRelationship Austria Germany Switzerland CzechoslovakiaIndividualism xCommunitarianism x x xSpecific relationship x x xDiffuse relationship xUniversalism x x x xParticularismNeutral relationship x xEmotional relationship x xAchievement x x xAscription x
63 Culture Maps - Frameworks Edward T. HallGeert HofstedeKluckhohn & StrodbeckTrompenaarsValue PatternsVariations in Value OrientationsCulture ElementsValue Patternsuniversalism– particularismcollectivism– individualismaffective–neutral relationshipsspecificity–diffusenessachievement– ascriptiontime orientationInternal–external control&Int’l. business practicerelation to natureorientation to timebelief about human naturemode of human activityrelationshipsspace&Int’l. business practicetimespacethingsfriendshipsagreements&interpersonalbehaviorpowerriskindividualismmasculinitylong term orientation&managementtheories - practice