1. Understanding the Role of Culture
Chapter 3

2. What is Culture?
The culture of a society comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations.

3. DEFINITIONS OF CULTURE
Culture is something -
shared by all or almost all members of some social group;
passed on to the younger members by the older members;
shapes behavior, or structures one’s perception of the world Carrol (1982)
The collective programming of the mind which distinguishes the members of one group or category of people from another.
----- Hofstede (1980)

4. Nature of Culture Learned Shared Transgenerational Symbolic Patterned
Adaptive

5. INFLUENCE OF CULTURE ON BEHAVIOR
Values
Culture
Attitudes
Behaviors
Source: Adler (1991)

6. Values in Culture U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples of Management Function Affected
Individuals can influence the future (when there is a will there is a way).
Life follows a preordained course, and, human action is determined by the will of God.
Planning and scheduling
Individuals should be realistic in their aspirations.
Ideals are to be pursued regardless of what is “reasonable.”
Goal setting and career development
We must work hard to accomplish our objectives (Puritan ethic).
Hard work is not the only prerequisite for success. Wisdom luck, and time also are required.
Motivation and reward system

7. Values in Culture U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples of Management Function Affected
A primary obligation of an employee is to the organization.
Individual employees have a primary obligation to their family and friends.
Loyalty, commitment, and motivation
Employees can be removed if they do not perform well.
The removal of an employee from a position involves a great loss of prestige and will rarely be done.
Promotion
Company information should be available to anyone who needs it within the organization.
Withholding information to gain or maintain power is acceptable.
Organization, communication, and managerial style

8. Values in Culture U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples of Management Function Affected
Competition stimulates high performance.
Competition leads to unbalances and disharmony.
Career development and marketing
What works is important..
Symbols and the process are more important than the end point.
Communication, planning, and quality control.

9. Environmental Variables Affect Management
National Sociolocultural
Economic Physical Religion
Legal Technological Education
Political know-how Language
Cultural Attitudes
Values Work Individualism
Norms Time Change
Beliefs Materialism
Employee Job Behavior
Motivation Commitment
Productivity Ethics

10. Cultural Orientations ---Individual
What is the basic nature of people?
* GOOD: People are generally to be
trusted
* EVIL: People are not to be trusted
without prior knowledge of them
* CHANGEABLE/UNCHANGEABLE:
Kluckhoha & Strodtbeck (1961)

11. Cultural Orientations ---World
What is our basic relationship to the environment around us ?
* MASTERY: To control and master nature and the environment around us.
* HARMONY: To be part of and to maintain the balance of forces in the world around us.
* SUBJUGATION: To follow our predetermined path and obey the natural and supernatural forces around us.

12. Cultural Orientations ---Human Relations
What is the natural relationships among humans?
* INDIVIDUAL: Our main responsibility is to and for ourselves and immediate family.
* COLLECTIVE: Our main responsibility is to and for a large group of people.
* HIERARCHY: Power and responsibility are unequally distributed, with those having power over others also having responsibility for them.

13. Cultural Orientations ---Activity
What is human’s naturally preferred of activity?
* DOING: To constantly work to achieve goals.
* BEING: To be spontaneous, do things in their own time, and live life to its fullest.
* THINKING: To be rational, think things through carefully and thoroughly before acting.

14. Cultural Orientations ---Time
What is human’s orientation to time?
* PAST: The past serves as the best precedent for the present and future and past experience is the most important criterion by which to make decisions.
* PRESENT: Current and short-term future needs provide the most important criteria by which to make decisions.
* FUTURE: Long-term future goals are most important, and current needs should be sacrificed willingly for future gains.

15. Cultural Orientations ---Space
What is human orientation to space?
* PRIVATE: Space and its contents belong to people, territories are important, and people cannot freely enter each other’s territories.
* PUBLIC: Space and its contents belong to no one in particular and can be used by everyone freely.

16. Strengths of the Model
In general terms, cultures can be compared along distinct orientations;
Comparative models apply to cross-cultural management.

17. Weaknesses of the Model
The orientations and variations are imprecisely defined;
Interpretations are bound to be subjective.
Not centrally concerned with management studies, and did not describe the implications for management.
Anthropology

18. DIMENSIONS OF CULTURE BY HOFSTEDE
Power Distance
Individualism vs. Collectivism
Masculinity vs. Femininity
Uncertainty Avoidance
Long-term vs. Short-term
Based on the survey of more than 116,000 managers and employees in over 60 countries (Hofstede, 1980) and the research by the Chinese Culture Connection team (1987).

19. POWER DISTANCE organizations is distributed unequally.
The extent to which the members of a society accept that power in institutions and
organizations is distributed unequally.

20. High Power Distance
Managers should be careful not to ask the opinions of subordinates too frequently, otherwise the manager might appear to be weak and incompetent;
Higher level managers should receive more benefits and privileges than lower level managers;
Managers should make most decisions without consulting subordinates.

21. POWER DISTANCE IN THE WORKPLACE
Small power distance
Hierarchy - inequality of roles
Decentralization
Subordinates expect to be consulted
Ideal boss is a resourceful democrat
Large power distance
Hierarchy - existential inequality
Centralization
Subordinates expect to be told what to do
Ideal boss is a good father

22. INDIVIDUALISM VS. COLLECTIVISM
Individualism relates to “societies in which the ties between individuals are loose”.
Collectivism pertains to societies in which people are “integrated into strong, cohesive ingroups”

23. Collectivism
It is important for a manager to encourage loyalty and a sense of duty in subordinates;
Being an accepted member of the group is more important than having autonomy and independence on the job;
Individual rewards are not as important as group welfare;
Group success is more important than individual success.

24. INDIVIDUALISM AND COLLECTIVISM IN THE WORKPLACE
Collectivist
Relationship is perceived in moral terms
Management of groups
Relationship more important than task
Reward given to the group
Individualist
Relationship is a contract based on mutual advantage
Management of individuals
Task more important than relationship
Reward linked to individual’s performance

25. Masculinity/Femininity
Masculinity is the extent to which the dominant values in society emphasize assertiveness and the acquisition of money and things.
Femininity is the extent to which the dominant values in society emphasize relationships among people, concern for others, and the overall quality of life.

26. Masculinity
It is more important for men to have a professional career than it is for women.
Women do not value recognition and promotion in their work as much as men do.
It is preferable to have a man in higher level position rather than a woman.
There are some jobs in which a man can always do better than a woman.

27. MASCULINITY/FEMININITY IN WORKPLACE
Feminine
Work in order to live
Stress on equality and quality of work life
Managers use intuition and strive for consensus
Resolution of conflicts by compromise and negotiation
Masculine
Live in order to work
Stress on equity, competition, and performance
Managers expect to be decisive and assertive
Resolution of conflicts by fighting them out

28. Uncertainty Avoidance
The extent to which the people in a society feel threatened by ambiguous situations, and have created beliefs and institutions that try to avoid these.

29. Strong Uncertainty Avoidance
It is important to have job requirements and instructions spelled out in details so that people always know what they are expected to do.
It is better to have a bad situation that you know about than to have an uncertain situation which might be better.
People should avoid making changes because things could get worse.

30. UNCERTAINTY AVOIDANCE IN WORKPLACE
Weak UA
No more rules than is strictly necessary
Time is a framework for orientation
Comfortable feeling when lazy
Motivation by achievement and esteem
Strong UA
Emotional need for rules
Time is money
Inner urge to work hard
Motivation by security and esteem or belongingness

31. Long-Term vs. Short-Term Orientation
The degree of values oriented towards the future or towards the past and present.

32. Key Differences between Long-Term and Short-Term Orientation Societies
Respect for social and status obligations regardless of cost
Small savings quote
Concern with possessing the truth
Respect for traditions
Long-Term
Respect for social and status obligation within limits
Large savings quote
Concern with respecting the demands of Virtue
Adaptation of traditions to a modern context

33. Weaknesses of Hofstede’s Model
It assumes that national territory and the limits of the culture correspond.
The respondents worked within a single industry and a single multinational.
Inappropriate assumption of bipolarity in two dimensions: Individualism and masculinity.

34. Strengths of Hofstede’s Model
The information populations controlled across countries.
The four dimensions tap into deep cultural values and make significant comparisons between national cultures.
The connotations of each dimension are highly relevant.
No other study compares so many cultures in so much details.

35. Trompenaars’ Cultural Dimensions
Trompenaar’s research was conducted over a 10-year period and published in 1994.
He gathered data from 15,000 managers from 28 countries, representing 47 national cultures.

36. Trompenaars’ Cultural Dimensions
VS.
Universalism
Particularism
Universalism: belief that ideas and practices can be applied everywhere in the world without modification
In countries with high universalism, focus is more on formal rules, business contracts are adhered to closely, people believe “a deal is a deal”
Includes Canada, U.S., Germany, U.K., Netherlands, France, Japan, Singapore, Thailand, and Hong Kong.

37. Trompenaars’ Cultural Dimensions
VS.
Universalism
Particularism
Particularism: belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere
In countries with high particularism, legal contracts often modified, well-acquainted people often change the way in which deals are executed
Includes China and South Korea

38. Trompenaars’ Cultural Dimensions
VS.
Individualism
Communitarianism
Individualism: people regard themselves as individuals
In countries high on individualism, people stress personal and individual matters, and are more likely to make negotiated decisions on the spot by a representative, achieve things alone and assume great personal responsibility
Includes Canada, Thailand, U.K., and U.S.

39. Trompenaars’ Cultural Dimensions
VS.
Individualism
Communitarianism
Communitarianism: people regard themselves as part of a group
In countries high on communitarianism, people value group-related issues, refer decisions to committees, achieve things in groups and jointly assume responsibility
Includes Singapore, Malaysia and Korea

40. Trompenaars’ Cultural Dimensions
VS.
Neutral
Affective
Neutral: culture in which emotions are held in
In high neutral culture countries, people try not to show their feelings, act stoically and maintain their composure
Includes Japan and the U.K.
Affective: culture in which emotions are expressed openly and naturally
In high emotional culture countries, people smile a great deal, talk loudly when excited and greet each other with enthusiasm
Includes Mexico and China

41. Trompenaars’ Cultural Dimensions
VS.
Specific
Diffuse
Specific culture: individuals have a large public space shared with others and a small private space they guard closely and share only with close friends and associates
In high specific cultures, people are more open and extroverted, and there is a strong separation of work and private life
Includes U.K., U.S. and France

42. Trompenaars’ Cultural Dimensions
VS.
Specific
Diffuse
Diffuse culture: public and private space are similar in size, individuals guard public space carefully because it is shared with private space
In high diffuse cultures, people often appear to be indirect and introverted, and work and private life often are closely linked
Includes China and Spain

43. Trompenaars’ Cultural Dimensions
VS.
Achievement
Ascription
Achievement culture: status is accorded based on how well people perform their functions
Includes U.S., Switzerland and the U.K.
Ascription culture: status is based on who or what a person is
Includes Spain, Japan, and China

44. Trompenaars’ Cultural Dimensions
Time
Sequential approach
People do only one activity at a time, keep appointments strictly, prefer to follow plans as laid out (United States)
Synchronous approach
People tend to multi-task, view appointments as approximate, schedules are seen as subordinate to relationships (France, and Mexico)
Present oriented/future oriented
Future is more important (U.S., Italy, and Germany)
Present is more important (Venezuela, Indonesia, and Spain)
All three time periods equally important (France and Belgium)

45. Trompenaars’ Cultural Dimensions
The Environment
Inner-directed: people believe in controlling outcomes
Includes U.S., Switzerland, Australia, Belgium, Indonesia, Hong Kong, Greece, Singapore, and Japan
Outer-directed: people believe on letting things take their own course
Includes China and many other Asian countries

46. GLOBE Project
The GLOBE (Global Leadership and Organizational Behavior Effectiveness)
Multi-country study and evaluation of cultural attributes and leadership behavior
Dimensions are based on data gathered by 170 researchers over seven years. The data were collected from 18,000 managers in sixty-two countries.

47. GLOBE Project 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

48. GLOBE Project: Nine Dimensions
Assertiveness
Future orientation
Performance orientation
Humane orientation
Gender differentiation
Uncertainty avoidance
Power distance
Institutional collectivism vs. individualism
In-group collectivism

49. GLOBE Dimensions
Assertiveness concerns how much people are expected to be tough, confrontational, and competitive versus modest and tender. Low assertiveness countries have sympathy for the weak and emphasize loyalty and solidarity.
Low: Sweden, New Zealand, Switzerland
High: Greece, Austria, Germany

50. GLOBE Dimensions
Performance orientation concerns the importance of performance improvement and excellence and refers to whether people are encouraged to strive for continued improvement. Low performance orientation countries place priority on things like tradition, loyalty, family, and background. They associate competition with defeat.
Low: Russia, Argentina, Greece
High: New Zealand, Hong Kong, Singapore

51. GLOBE Dimensions
Future orientation Future orientation refers to the importance a society attaches to future-oriented behaviors, such as planning and investing in the future. High future orientation countries tend to save and have a longer time horizon for decisions. Low future orientation countries are the opposite.
Low: Russia, Argentina, Poland
High: Netherlands, Switzerland, Singapore

52. GLOBE Dimensions
Humane orientation concerns the extent to which a society encourages and rewards being fair, altruistic, generous, caring, and kind. Paternalism and patronage, tolerance, and harmony are values in high humane orientation cultures. In low humane orientation cultures people value power, material possessions, and self-enhancement.
Low: Germany, Spain, France
High: Malaysia, Ireland, Philippines

53. Cultural Clusters

54. How Culture Affects Managerial Approaches
Centralized Decision Making
Decentralized Decision Making
VS.
In some societies, top managers make all important organizational decisions. In others, these decisions are diffused throughout the enterprise, and middle- and lower-level managers actively participate in, and make, key decisions.

55. How Culture Affects Managerial Approaches
VS.
Safety
Risk
In some societies, organizational decision makers are risk averse and have great difficulty with conditions of uncertainty. In others, risk taking is encouraged, and decision making under uncertainty is common.

56. How Culture Affects Managerial Approaches
VS.
Individual Rewards
Group Rewards
In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses and commissions. In others, cultural norms require group rewards, and individual rewards are frowned on.

57. How Culture Affects Managerial Approaches
VS.
Informal Procedures
Formal Procedures
In some societies, much is accomplished through informal means. In others, formal procedures are set forth and followed rigidly.

58. How Culture Affects Managerial Approaches
High Organizational Loyalty
Low Organizational Loyalty
VS.
In some societies, people identify very strongly with their organization or employer. In others, people identify with their occupational group, such as engineer or mechanic.

59. How Culture Affects Managerial Approaches
VS.
Cooperation
Competition
Some societies encourage cooperation between their people. Others encourage competition between their people.

60. How Culture Affects Managerial Approaches
Short-term Horizons
Long-term Horizons
VS.
Some cultures focus most heavily on short-term horizons, such as short-range goals of profit and efficiency. Others are more interested in long-range goals, such as market share and technologic development.

61. How Culture Affects Managerial Approaches
Stability
Innovation
VS.
The culture of some countries encourages stability and resistance to change. The culture of others puts high value on innovation and change.