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Cross-Cultural Management. 2 Chapter 1 Meanings and Dimensions of Culture Outline Chap1-1 Cross-cultural management Chap1-2 Globalization Chap1-3 Definitions.

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Presentation on theme: "Cross-Cultural Management. 2 Chapter 1 Meanings and Dimensions of Culture Outline Chap1-1 Cross-cultural management Chap1-2 Globalization Chap1-3 Definitions."— Presentation transcript:

1 Cross-Cultural Management

2 2 Chapter 1 Meanings and Dimensions of Culture Outline Chap1-1 Cross-cultural management Chap1-2 Globalization Chap1-3 Definitions of culture Chap1-4 Nature of culture Chap1-5 Cultural values Chap1-6 Dimensions of culture Chap1-7 Attitudinal Dimensions of Culture Chap1-8 Trompenaars’ s Cultural Dimensions

3 Cross-Cultural Management 3 Chap1-1 Cross-cultural management : Managing different culture Issues of diversity(Gender, Generational, cultural Religion, caste, Income group)

4 Cross-Cultural Management 4 What is Cross-Cultural Management? CCM is a fairly new field that is based on theories and research from: Cross Cultural Psychology Cross-cultural psychology is the scientific study of human behavior and mental processes, including both their variability and invariance, under diverse cultural conditions.

5 Cross-Cultural Management 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. 5

6 Cross-Cultural Management 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) [1] 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) human behavior [1] 6

7 Cross-Cultural Management Human Resources Human 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".workforceorganization business sectoreconomyHuman capital 7

8 Cross-Cultural Management Anthropology Anthropology /ænθr ɵˈ p ɒ ləd ʒ i/ 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. 8

9 Cross-Cultural Management 9 Goals for Cross-Cultural Management Cross Cultural Management seeks to understand how national cultures affect management practices identify the similarities and differences across cultures in various management practices and organizational contexts increase effectiveness in global management

10 Cross-Cultural Management 10 Globalization and cross cultural issues Chap1-2

11 Cross-Cultural 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 basis Most of us have a close experience with only one or two cultures…=>

12 Cross-Cultural Management 12 Globalization We 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

13 Cross-Cultural Management 13 Definitions of culture Chap1-3

14 Cross-Cultural Management 14 Culture Definition: acquired knowledge that people use to interpret experience and generate social behavior. Culture forms values, creates attitude, influences behavior.

15 Cross-Cultural Management 15 Nature of culture Chap1-4

16 Cross-Cultural Management 16 Culture Characteristics of culture include:

17 Cross-Cultural Management 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. · 17

18 Cross-Cultural Management 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. · 18

19 Cross-Cultural Management 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. · · 19

20 Cross-Cultural Management 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. 20

21 Cross-Cultural Management 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. 21

22 Cross-Cultural Management 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.

23 Cross-Cultural Management 23 Cultural values Chap1-5

24 Cross-Cultural Management 24 Priorities of Cultural Values United States 1. Freedom 2. Independence 3. Self-reliance 4. Equality 5. Individualism 6. Competition 7. Efficiency 8. Time 9. Directness 10. Openness Arab Countries 1. Family security 2. Family harmony 3. Parental guidance 4. Age 5. Authority 6. Compromise 7. Devotion 8. Patience 9. Indirectness 10. Hospitality Japan 1. Belonging 2. Group harmony 3. Collectiveness 4. Age/seniority 5. Group consensus 6. Cooperation 7. Quality 8. Patience 9. Indirectness 10. Go-between

25 Cross-Cultural Management 25 Management Approaches Affected by Cultural Diversity Cultural Diversity 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. low organizational loyalty

26 Cross-Cultural Management 26 Introduction to the course of cross-cultural management and our international teaching team Goals for Cross-cultural management Nature of culture Summary of what we learned last week

27 Cross-Cultural Management 27 A model of culture: concentric circles Comparing culture as a normal distribution Values in culture Hofstede’s cultural dimensions We will learn today

28 Cross-Cultural Management 28 A model of culture: concentric circles Explicit artifacts and products of the society Implicit, basic assumptions that guide people’s behavior Norms and values that guide the society 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.

29 Cross-Cultural Management 29 Comparing Cultures as Overlapping Normal Distribution Chinese Culture ? U.S. Culture ?

30 Cross-Cultural Management 30 Stereotyping from the Cultural Extremes: Brugha and Du’s research Chinese Culture U.S. Culture How Americans see the Chinese in community avoid confrontation (keep in harmony) respect for authorities and seniors How Chinese see Americans individualism face confrontation (arguments and debates) respect for achievements

31 Cross-Cultural Management 31 Values in Culture Values: 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 alternatives Values in transition: work values change over time.

32 Cross-Cultural Management 32 Dominant Western Values in Workforce Career Stage Entered the Workforce Approximate Current Age Dominant Work Values 1. Protestant Work Ethic 2. Existential 3. Pragmatic 4. Generation X Mid-1940s to Late 1950s 1960s to Mid-1970s Mid-1970s to Mid-1980s through 1990s 50 to to to 35 Under 25 Hard working; loyal to firm; conservative Nonconforming; seeks autonomy; loyal to self Ambitious, hard worker; loyal to career Flexible, values leisure; loyal to relationships

33 Cross-Cultural Management 33 Dimensions of culture Chap1-6

34 Cross-Cultural Management 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 Cross-Cultural Management 35 Hofstede ’ s Five Cultural Dimensions u Power Distance u Uncertainty Avoidance u Individualism u Masculinity u Long-Term Orientation

36 Cross-Cultural Management 36 Power Distance: the extent to which less powerful members of organizations accept that power is distributed unequally.  Low: people treated as equals despite social status  High: people accept authority relations Uncertainty 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 rules  High: want clear behavioral guides

37 Cross-Cultural Management 37 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 important  High: individual behavior important A bipolar continuum IndividualismCollectivismIndividualismCollectivismIndividualism

38 Cross-Cultural Management 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 continuum FemininityMasculinity

39 Cross-Cultural Management 39 Long–term orientation: value placed on persistence, status, thrift  Low: respect for tradition, personal stability, focused on the past  High: perseverance, thrift, focused on the future This 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 Country Power Distance Individualism*Masculinity** Uncertainty Avoidance Long-term Orientation*** IndiaHighLowModerateModerateHigh FranceHighHighModerateHighLow GermanyLowHighHighModerateModerate Hong Kong HighLowHighLowHigh IndonesiaHighLowModerateLowLow JapanModerateModerateHighModerateModerate NetherlandsLowHighLowModerateModerate RussiaHighModerateLowHighLow United States LowHighHighLowLow West Africa HighLowModerateModerateLow * 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 Cross-Cultural Management 41 Additional Frameworks Two additional perspectives, of social/cross-cultural psychologists merit attention: Markus & Kitayama: Independent & Interdependent Construals Triandis: Individualism-Collectivism

42 Cross-Cultural Management 42 Vertical & Horizontal Individualism & Collectivism Harry Triandis: Combination of Individualism vs. collectivism and power & achievement vs. benevolence & universalism VI: achievement + individualism (USA) HI: universalism + individualism (Sweden) VC: power + collectivism (India) HC: benevolence + collectivism (Israel; rare)

43 Cross-Cultural Management 43 Schwartz’s Values Universalism Benevolence Conformity & tradition Security Power Achievement Hedonism Stimulation Self Direction

44 Cross-Cultural Management 44 Schwartz’s Value Map

45 Cross-Cultural Management 45 Empirical test of the Theory 75,000 + respondents, varied samples in 68 countries Instrument lists 57 abstract value items “How important is each item as a guiding principle in your life?”

46 Cross-Cultural Management 46 Tasks in the next session:  Students’ talks and presentations  Discussion in groups: how to learn Cross-cultural management? Assignment after class: Read a paper on Hofstede’s cultural dimensions.

47 Cross-Cultural Management 47 Preview Integrating Hofstede’s cultural dimensions Attitudinal dimensions of culture Trompenaars’s cultural dimensions Integrating culture and management

48 Cross-Cultural Management 48 Chap1-7 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

49 Cross-Cultural Management 49 A Synthesis of Country Cultures

50 Cross-Cultural Management 50 GLOBE Project Multi-country study and evaluation of cultural attributes and leadership behavior Are transformational characteristics of leadership universally endorsed? 170 country co-investigators 65 different cultures 17,500 middle managers 800 organisations

51 Cross-Cultural Management 51 GLOBE Project What traits are universally viewed as impediments to leadership effectiveness? Based on beliefs that –Certain attributes that distinguish one culture from others can be used to predict the most suitable, effective and acceptable organizational and leader practices within that culture –Societal culture has direct impact on organizational culture –Leader acceptance stems from tying leader attributes and behaviors to subordinate norms

52 VariableHighestMediumLowest RankingRankingRanking GLOBE Cultural Variable Results AssertivenessSpain, U.S.Egypt, IrelandSweden, New Zealand Future orientationDenmark, CanadaSlovenia, EgyptRussia, Argentina Gender differentiationSouth Korea, Italy, BrazilSweden Denmark Egypt Uncertainty avoidanceAustria, DenmarkIsrael, U.S.Russia, Hungary Power distanceRussia, SpainEngland, FranceDemark, Netherlands Collectivism/SocietalDenmark, Hong Kong, U.S.Greece, Hungary Singapore In-group collectivismEgypt, ChinaEngland, FranceDenmark, Netherlands Performance orientationU.S., TaiwanSweden, IsraelRussia, Argentina Humane orientationIndonesia, EgyptHong Kong, Germany, Spain Sweden

53 Cross-Cultural Management 53 Chap1-8 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

54 Cross-Cultural Management 54 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

55 Cross-Cultural Management 55 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 Trompenaars’ Cultural Dimensions (cont.)

56 Cross-Cultural Management 56 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

57 Cross-Cultural Management 57 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

58 Cross-Cultural Management 58 Trompenaars’ 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

59 Cross-Cultural Management 59 Trompenaars’ 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

60 Cross-Cultural Management 60 Trompenaars’ 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

61 Cross-Cultural Management 61 Trompenaars’ 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

62 Cross-Cultural Management 62 Trompenaars’ 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

63 Cross-Cultural Management 63 Culture Maps - Frameworks Edward T. Hall Geert Hofstede Kluckhohn & Strodbeck time space things friendships agreements & interpersonal behavior power risk individualism masculinity long term orientation & management theories - practice relation to nature orientation to time belief about human nature mode of human activity relationships space & Int’l. business practice Value Patterns Variations in Value Orientations Culture Elements Trompenaars universalism– particularism collectivism– individualism affective–neutral relationships specificity– diffuseness achievement– ascription time orientation Internal–external control & Int’l. business practice Value Patterns

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