2What 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.
3DEFINITIONS 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)
4Nature of Culture Learned Shared Transgenerational Symbolic Patterned Adaptive
5INFLUENCE OF CULTURE ON BEHAVIOR ValuesCultureAttitudesBehaviorsSource: Adler (1991)
6Values in Culture U.S.Values and Possible Alternatives U.S. Cultural Values Alternative Values Examples of Management Function AffectedIndividuals 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 schedulingIndividuals should be realistic in their aspirations.Ideals are to be pursued regardless of what is “reasonable.”Goal setting and career developmentWe 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
7Values in Culture U.S.Values and Possible Alternatives U.S. Cultural Values Alternative Values Examples of Management Function AffectedA primary obligation of an employee is to the organization.Individual employees have a primary obligation to their family and friends.Loyalty, commitment, and motivationEmployees 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.PromotionCompany 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
8Values in Culture U.S.Values and Possible Alternatives U.S. Cultural Values Alternative Values Examples of Management Function AffectedCompetition stimulates high performance.Competition leads to unbalances and disharmony.Career development and marketingWhat works is important..Symbols and the process are more important than the end point.Communication, planning, and quality control.
9Environmental Variables Affect Management National SocioloculturalEconomic Physical ReligionLegal Technological EducationPolitical know-how LanguageCultural AttitudesValues Work IndividualismNorms Time ChangeBeliefs MaterialismEmployee Job BehaviorMotivation CommitmentProductivity Ethics
10Cultural Orientations ---Individual What is the basic nature of people?* GOOD: People are generally to betrusted* EVIL: People are not to be trustedwithout prior knowledge of them* CHANGEABLE/UNCHANGEABLE:Kluckhoha & Strodtbeck (1961)
11Cultural 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.
12Cultural 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.
13Cultural 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.
14Cultural 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.
15Cultural 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.
16Strengths of the ModelIn general terms, cultures can be compared along distinct orientations;Comparative models apply to cross-cultural management.
17Weaknesses 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
18DIMENSIONS OF CULTURE BY HOFSTEDE Power DistanceIndividualism vs. CollectivismMasculinity vs. FemininityUncertainty AvoidanceLong-term vs. Short-termBased 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).
19POWER DISTANCE organizations is distributed unequally. The extent to which the members of a society accept that power in institutions andorganizations is distributed unequally.
20High Power DistanceManagers 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.
21POWER DISTANCE IN THE WORKPLACE Small power distanceHierarchy - inequality of rolesDecentralizationSubordinates expect to be consultedIdeal boss is a resourceful democratLarge power distanceHierarchy - existential inequalityCentralizationSubordinates expect to be told what to doIdeal boss is a good father
22INDIVIDUALISM 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”
23CollectivismIt 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.
24INDIVIDUALISM AND COLLECTIVISM IN THE WORKPLACE CollectivistRelationship is perceived in moral termsManagement of groupsRelationship more important than taskReward given to the groupIndividualistRelationship is a contract based on mutual advantageManagement of individualsTask more important than relationshipReward linked to individual’s performance
25Masculinity/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.
26MasculinityIt 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.
27MASCULINITY/FEMININITY IN WORKPLACE FeminineWork in order to liveStress on equality and quality of work lifeManagers use intuition and strive for consensusResolution of conflicts by compromise and negotiationMasculineLive in order to workStress on equity, competition, and performanceManagers expect to be decisive and assertiveResolution of conflicts by fighting them out
28Uncertainty 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.
29Strong 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.
30UNCERTAINTY AVOIDANCE IN WORKPLACE Weak UANo more rules than is strictly necessaryTime is a framework for orientationComfortable feeling when lazyMotivation by achievement and esteemStrong UAEmotional need for rulesTime is moneyInner urge to work hardMotivation by security and esteem or belongingness
31Long-Term vs. Short-Term Orientation The degree of values oriented towards the future or towards the past and present.
32Key Differences between Long-Term and Short-Term Orientation Societies Respect for social and status obligations regardless of costSmall savings quoteConcern with possessing the truthRespect for traditionsLong-TermRespect for social and status obligation within limitsLarge savings quoteConcern with respecting the demands of VirtueAdaptation of traditions to a modern context
33Weaknesses 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.
34Strengths 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.
35Trompenaars’ 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.
36Trompenaars’ Cultural Dimensions VS.UniversalismParticularismUniversalism: belief that ideas and practices can be applied everywhere in the world without modificationIn 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.
37Trompenaars’ Cultural Dimensions VS.UniversalismParticularismParticularism: belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhereIn countries with high particularism, legal contracts often modified, well-acquainted people often change the way in which deals are executedIncludes China and South Korea
38Trompenaars’ Cultural Dimensions VS.IndividualismCommunitarianismIndividualism: people regard themselves as individualsIn 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 responsibilityIncludes Canada, Thailand, U.K., and U.S.
39Trompenaars’ Cultural Dimensions VS.IndividualismCommunitarianismCommunitarianism: people regard themselves as part of a groupIn countries high on communitarianism, people value group-related issues, refer decisions to committees, achieve things in groups and jointly assume responsibilityIncludes Singapore, Malaysia and Korea
40Trompenaars’ Cultural Dimensions VS.NeutralAffectiveNeutral: culture in which emotions are held inIn high neutral culture countries, people try not to show their feelings, act stoically and maintain their composureIncludes Japan and the U.K.Affective: culture in which emotions are expressed openly and naturallyIn high emotional culture countries, people smile a great deal, talk loudly when excited and greet each other with enthusiasmIncludes Mexico and China
41Trompenaars’ Cultural Dimensions VS.SpecificDiffuseSpecific 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 associatesIn high specific cultures, people are more open and extroverted, and there is a strong separation of work and private lifeIncludes U.K., U.S. and France
42Trompenaars’ Cultural Dimensions VS.SpecificDiffuseDiffuse culture: public and private space are similar in size, individuals guard public space carefully because it is shared with private spaceIn high diffuse cultures, people often appear to be indirect and introverted, and work and private life often are closely linkedIncludes China and Spain
43Trompenaars’ Cultural Dimensions VS.AchievementAscriptionAchievement culture: status is accorded based on how well people perform their functionsIncludes U.S., Switzerland and the U.K.Ascription culture: status is based on who or what a person isIncludes Spain, Japan, and China
44Trompenaars’ Cultural Dimensions TimeSequential approachPeople do only one activity at a time, keep appointments strictly, prefer to follow plans as laid out (United States)Synchronous approachPeople tend to multi-task, view appointments as approximate, schedules are seen as subordinate to relationships (France, and Mexico)Present oriented/future orientedFuture 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)
45Trompenaars’ Cultural Dimensions The EnvironmentInner-directed: people believe in controlling outcomesIncludes U.S., Switzerland, Australia, Belgium, Indonesia, Hong Kong, Greece, Singapore, and JapanOuter-directed: people believe on letting things take their own courseIncludes China and many other Asian countries
46GLOBE ProjectThe GLOBE (Global Leadership and Organizational Behavior Effectiveness)Multi-country study and evaluation of cultural attributes and leadership behaviorDimensions are based on data gathered by 170 researchers over seven years. The data were collected from 18,000 managers in sixty-two countries.
47GLOBE 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 cultureSocietal culture has direct impact on organizational cultureLeader acceptance stems from tying leader attributes and behaviors to subordinate norms
48GLOBE Project: Nine Dimensions AssertivenessFuture orientationPerformance orientationHumane orientationGender differentiationUncertainty avoidancePower distanceInstitutional collectivism vs. individualismIn-group collectivism
49GLOBE DimensionsAssertiveness 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, SwitzerlandHigh: Greece, Austria, Germany
50GLOBE DimensionsPerformance 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, GreeceHigh: New Zealand, Hong Kong, Singapore
51GLOBE DimensionsFuture 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, PolandHigh: Netherlands, Switzerland, Singapore
52GLOBE DimensionsHumane 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, FranceHigh: Malaysia, Ireland, Philippines
54How Culture Affects Managerial Approaches Centralized Decision MakingDecentralized Decision MakingVS.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.
55How Culture Affects Managerial Approaches VS.SafetyRiskIn 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.
56How Culture Affects Managerial Approaches VS.Individual RewardsGroup RewardsIn 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.
57How Culture Affects Managerial Approaches VS.Informal ProceduresFormal ProceduresIn some societies, much is accomplished through informal means. In others, formal procedures are set forth and followed rigidly.
58How Culture Affects Managerial Approaches High Organizational LoyaltyLow Organizational LoyaltyVS.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.
59How Culture Affects Managerial Approaches VS.CooperationCompetitionSome societies encourage cooperation between their people. Others encourage competition between their people.
60How Culture Affects Managerial Approaches Short-term HorizonsLong-term HorizonsVS.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.
61How Culture Affects Managerial Approaches StabilityInnovationVS.The culture of some countries encourages stability and resistance to change. The culture of others puts high value on innovation and change.