1. Culture and Values Frameworks Used to Characterize Cultures

2. Class Outline
Mini debate on the implications of cultural values in different economies
Mini-lecture on Frameworks for assessing dimensions of culture
Hofstede
Bond
Trompenaars
Ronen & Shenkar

3. What is culture? Umbrella term often used for differences in:
etiquette (e.g. greetings)
individual customs (e.g. routines for sleeping, bathing)
ways of thinking
Definition: the way people understand their
world and make sense of it, a shared system of meanings.
Culture is learned and imprinted (it is a collective phenomenon). Cultural programming deals with both values and practices.
There are different layers of cultural programming: national culture, professional culture, corporate culture.

4. Resolution
Let it be resolved that distinct Chinese values explain the extraordinary growth rates of China

5. Culture is Difficult to Study
Ethnic, religious, class, age and other sources of heterogeneity
Individual variation within groups
Danger of ethnocentric stereotypes
Intra-cultural vs. cross-cultural behaviour
Evolution as circumstances change

6. “Measuring” Culture
Cultural differences can be inferred from data about a collectivity of people:
Direct measurement through asking well designed questions about people’s values or beliefs.
Data “clustering” methods
Matched samples can then be compared to discover similarities and differences.
At the individual level we speak of cultural attitudes and orientations (but these may not be representative of one’s culture).

7. Cultural Classifications
Hofstede
Bond
Trompenaars
By and large, these classifications show similar dimensions and classify countries in the same clusters.
Ronen and Shenkar – “Country Clusters” based on multiple studies

8. Hofstede
A study of IBM employees in 50 countries. Studying values (“the broad tendencies to prefer certain states over others”
Four dimensions
power distance
uncertainty avoidance
individualism/collectivism
femininity/masculinity

9. Power Distance
The extent to which less powerful members of institutions and organizations accept that power is distributed unequally.
A bottom-up view of power differences
Large: Mexico, South Korea, India
Small: U.S. “

10. Uncertainty Avoidance
The extent to which members are intolerant of ambiguity and rely on formal rules
A proxy for risk propensity and tolerance
High (i.e. risk averse): Japan, Greece
Low (i.e. risk taking): U.S., Hong-Kong

11. Individualism/Collectivism
The tendency of people to look after themselves and their immediate family versus belonging to groups or collectives and looking after each other in exchange for loyalty
There is an association between collectivism and wealth per capita
High individualism: U.S.
High collectivism: China, Brazil, Venezuela

12. Applications of PD & UA Small PD, Weak UA Small PD, Strong UA
Examples: USA, UK
Less formal rules, less “unnecessary layers of hierarchy”. Control and coordination through mutual adjustment of people through informal coordination
Small PD, Strong UA
Examples: Israel, Austria, Germany
Clearly defined rules and procedures without imposing strong hierarchy
Large PD, Strong UA
Examples: Japan, Korea, Portugal, Mexico
Pyramids, clear authority lines
Large Power Distance, Weak UA
Examples: Singapore, Hong Kong
Family structure. Allocation of duties, strong patriarch

13. Masculinity/Feminity
Values concerning work goals and assertiveness (masculinity) as opposed to personal goals (getting along, having friendly atmosphere) and nurturance (femininity).
A proxy for assertiveness
High: Brazil, Chile, Sweden
Low: Japan, Mexico

14. Bond: The Chinese Connection
Confucian Dynamism
Important:
persistence
ordering relationship by status and observing this order
thrift
having a sense of shame (sensitivity to social contacts)
Less important:
personal steadiness and stability
protecting your face
respect for tradition
reciprocation of greetings, favors and gifts.

15. Trompenaars Individualism versus collectivism
Universalism versus particularism
Neutral versus affective relationships
Specific versus diffuse relationships
Achievement versus ascription

16. Universalism/Particularism
Universalism is the belief that ideas and practices can be applied everywhere without modification.
Universalistic: Germany, U.K.
Particularism is the belief that circumstances dictate how ideas and practices should be applied.
Particularistic: China, Hong-Kong, Venezuela

17. Neutral vs. Affective
A neutral culture is one where emotions are held in check (repressed)
Neutral: Japan, U.K.
An affective country is one in which emotions are openly and naturally expressed
Affective: Mexico, Netherlands, Switzerland

18. Specific Vs. Diffuse Public versus private spaces
In specific cultures people tend to have a larger public area and small private area. They prefer to keep private life separate.
Highly mobile; Separate work and private life
Direct, open
“To the point” – may appear abrasive
In diffuse cultures the private space is usually larger while the public area is smaller and more guarded. People come across as cool initially the private space is more accessible.
Low mobility; Work and private life closely linked
Indirect, close and introvert
Flexibility is very important

19. Achievement vs. Ascription
Achievement: people are accorded status based on how well they perform their functions.
Achievement: U.K., Argentina
An ascription culture in one in which status is attributed based on who or what a person is.
Ascription: China

20. Questions for Discussion
What are the similarities and differences between the dimensions of uncertainty avoidance and universalism/particularism?
What are the similarities and differences between masculinity/feminity and neutral/affective?
What are the similarities and differences between power distance and achievement/ascription?