1. MULTINATIONAL MANAGEMENT
CHAPTER 2
CULTURE
AND
MULTINATIONAL MANAGEMENT

2. What Is Culture?
Culture is the pervasive and shared beliefs, norms, values, and symbols that guide everyday life
transmitted by symbols, stories and rituals
often taken-for-granted

3. Levels of Culture

4. NATIONAL
CULTURE

5. NATIONAL
CULTURE
BUSINESS
CULTURE

6. NATIONAL
CULTURE
BUSINESS
CULTURE
ORGANIZATION
OCCUPATIONAL
CULTURE
CULTURE

7. NATIONAL
CULTURE
BUSINESS
CULTURE
ORGANIZATION
OCCUPATIONAL
CULTURE
CULTURE
MULTINATIONAL
MANAGEMENT

8. Caveats and Cautions
Stereotyping
Ethnocentrism
Cultural relativism

9. Two Diagnostic Models to Aid the Multinational Manager
Hofstede’s Model of National Culture
7d Cultural Dimensions Model

10. Hofstede’s Model of National Culture
Issues of equality - “power distance”
What is different and dangerous - “uncertainty avoidance”

11. Hofstede’s Model of National Culture, continued
The individual and the group in society - “collectivism/individualism”
Gender roles - “masculinity”
Confucian values - “long term orientation”

12. POWER DISTANCE Inequality is good Everyone has a place
People should depend on a leader
The powerful are entitled to privileges
The powerful should not hide their power

13. Exhibit 2.2 Management Implications Of Power Distance

15. Uncertainty Avoidance
Avoid conflict
Low tolerance of deviant people and ideas
Respect for laws and rules
Experts and authorities are usually correct
Consensus is important

16. Exhibit 2.3 Management Implications of Uncertainty Avoidance

18. Individualism People are responsible for themselves
Individual achievement is ideal
People are not emotionally dependent on organizations or groups

19. Collectivism Self identity based on group membership
A belief that group decision making is best
A belief that groups protect you in exchange for loyalty

20. Exhibit 2.4 Management Implications of Individualism

22. Masculinity Clear definitions of gender roles
Men are assertive and dominant
Support for Machismo
Men should be decisive
Work is priority
Growth, success, and money are important

23. Exhibit 2.5 Management Implications Of Masculinity

25. Long Term (Confucian) Orientation
Belief in substantial savings
Willingness to invest
Acceptance of slow results
Persistence to achieve goals
Sensitivity to social relationships
Pragmatic adaptation

26. Exhibit 2.6 Management Implications Of Long Term Orientation

28. Hofstede’s Dimensions By Countries Exhibit 2.4
Anglo cultures (US, GB, Australia)
high on individualism and masculinity, low on power distance and uncertainty avoidance

29. Latin European
high uncertainty avoidance
Nordic
low masculinity
Far Eastern
high power distance, low individualism

30. The 7d Model of Culture Cultural Dimensions and Critical Questions
Relationships with People:
universalism vs. particularlism
Do we consider rules or relationships more important?

31. The 7d model, continued individualism vs. communitarianism
Do we act mostly as individuals or as groups?
specific vs. diffuse
How extensively are we involved with the lives of other people?

32. The 7d model, continued emotional vs. neutral
Are we free to express our emotions or are we restrained?
achievement vs. ascription
Do we achieve status through accomplishment or is it part of our situation in life (e.g., gender, age, social class)?

33. The 7d model, continued Perspective on Time: sequential vs. snchronic
Do we do tasks in sequence or several tasks at once?
Relationship with the Environment:
internal vs. external control
Do we control the environment or does it control us?

34. Exhibit 2.9 Universalism versus Particularism: Differences and Managerial Implications

36. Exhibit 2.10 Individualism versus Collectivism: Differences and Managerial Implications

38. Exhibit 2.11 Neutral versus Affective: Differences and Managerial Implications

40. Exhibit 2.12 Specific versus Diffuse: Differences and Managerial Implications

42. Exhibit 2.13 Achievement versus Ascription: Differences and Managerial Implications

44. Exhibit 2.14 Time Horizon: Differences and Managerial Implications

46. Exhibit 2.15 Internal versus External Control: Differences and Managerial Implications

48. Conclusions Culture has a variety of levels that affect multinationals
Models provide starting point to understand culture
Learning another culture is a never ending process