2. © 2006 Prentice Hall3-1 Chapter 3 Understanding the Role of Culture PowerPoint by Kristopher Blanchard North Central University

3. © 2006 Prentice Hall3-2 Overview Culture and its effects on organizations Cultural variables Cultural value dimensions The Internet and culture Developing cultural profiles Culture and management styles around the world

4. © 2006 Prentice Hall3-3 Key Terms Culture Savvy Cultural Sensitivity or Cultural Empathy Culture of a society Self reference criterion Parochialism Ethnocentrism

5. © 2006 Prentice Hall3-4 Culture and Its Effects on Organizations

6. © 2006 Prentice Hall3-5 Culture and Its Effects on Organizations Once upon a time there was a great flood, and involved in this flood were two creatures, a monkey and a fish. The monkey, being agile and experienced, was lucky enough to scramble up a tree and escape the raging waters. As he looked down from his safe perch, he saw the poor fish struggling against the swift current. With the best of intentions, he reached down and lifted the fish from the water. The result was inevitable.

7. © 2006 Prentice Hall3-6 Cultural Variables Never assume that a manager can transplant American, or Japanese, or any other country’s styles, practices, expectations, and processes Managers need to develop a cultural profile that identifies the specific differences found in each country

8. © 2006 Prentice Hall3-7 Subcultures Residents of the country only conform to the national character to a certain degree Could be from ethnic, geographic, or other variables Good managers treat people as individuals and they avoid any form of stereotyping

9. © 2006 Prentice Hall3-8 Influences on National Culture Kinship – guides family relationships Education – formal or informal education of workers affects workplace expectations Economy – means of production and distribution in a society influences all aspects of the resource allocation Politics – system of government imposes varying constraints on an organization

10. © 2006 Prentice Hall3-9 Influences on National Culture Religion – spiritual beliefs of a society are so powerful that they overpower all other cultural aspects Associations – the formal and informal groups that make up a society Health – system of health care affects employee productivity Recreation – the use, attitude, and choice of how to use leisure time

11. © 2006 Prentice Hall3-10 Cultural Value Dimensions Values are a society’s ideas about what is good or bad, right or wrong

12. © 2006 Prentice Hall3-11 Project GLOBE Cultural Dimensions Assertiveness Future orientation Performance orientation Human orientation Gender differentiation Uncertainty avoidance Power distance Institutional collectivism vs individualism In-group collectivism

13. © 2006 Prentice Hall3-12 Cultural Clusters Ex. 3-3 & Ex 3-4. Globe Project Assertiveness & Non Assertiveness: Most Spain, USA, Greece. Least Sweden, NZ Perf Orientation. Most USA, Taiwan. Least Russia, Argentina Future Orientation. Most Denmark, Ca. Least Russia, Argentina Humane Orientation. Most Indonesia, Egypt, Malaysia. Least Germany (Former West), Spain 3.4 Geographic Culture Clusters. Southern Asia, Confucian Asia, Anglo, Latin America, to some extent, these specify the cultural clusters

14. © 2006 Prentice Hall3-13 Hofstede’s Value Dimensions Power distance. To what extent, unequal dist. of power accepted by the society Uncertainty Avoidance. To what extent people feel threaten by ambiguity Individualism. Tendency to look for themselves & their family Masculinity. The degree typical values such as assertiveness, materialism & lack of concern for others. Femininity emphasizes concerns for others, relationships with others, & quality of life.

15. © 2006 Prentice Hall3-14 Trompenaar’ Value Dimensions Universalistic vs particularistic. Applying rules objectively or subjectively Neutral vs Affective. Specific or diffuse in relationship.. Specific oriented separate work personal vs diffuse mix work &personal. Achievement vs ascription Source of power in achievement is individual-how well one performs the job & what level of experience & education one offers

16. © 2006 Prentice Hall3-15 Critical Operational Value Differences Time: temporal vs non linear Change: some forms of control over the future vs destiny or will of Allah Material factors Individualism

17. © 2006 Prentice Hall3-16 The Internet and Culture Affecting many social variables: associations, education, & the economy. For example, in S Korea, the desire for technology in syn: economy & daily habits. Affecting how internet is used. Attitude toward information privacy-the right to control information about oneself. See Exh. 3.8

18. © 2006 Prentice Hall3-17 Developing Cultural Profiles Mgsr to gather info considerable info on cultural variables from current research, personal observation, & discussions with people. Develop cultural profiles of various countries- composite pics of working environ, people attitudes etc. Exh 3.7- a basic comparison with other cultures on 10 dimensions http://www.bspage.com/1netiq.html

19. © 2006 Prentice Hall3-18 Comparative management in Focus Japan-principle of wa (peace & harmony) embedded in amae (indulgent love) Japan’s cultural roots produced a very homogeneous managerial value system, with strong middle management, strong working relationship, a strong seniority system. Wa emphasises participative mgmt, consensus problem solving, & decision making within a patient & long term prospective. Evidence of some convergence bet western business culture & Japan. Group, lifetime employment focus has given way to more competitive bus environment with no guaranteed job security & emphasis on perf based pay.

20. © 2006 Prentice Hall3-19 Comparative management in Focus 2. Germany. Ranks high on ind. (less individualistic than the uS), high on uncertainty avoidance & masculinity, relatively small need for power distance. Thus, Manifest preferences to be around familiar people & situations, & for detailed evaluation of business before committing themselves. Christianity domination- perpetuates their need for rule & order in their lives. Assertive but not aggressive. Have a strict sense & use of time & follow hierarchical org structures with power at the top. Want detailed info. http://www.germany-info.or/ http://www.germany-info.or/ 3. South Korea. Ranks high on collectivism & pragmatism, fairly low on masculinity, moderate on power distance & quite high on uncertainty avoidance. Priority on family, respect for authority, formality, class & rank. Aggressive, hardworking, friendly & hospitable.

21. © 2006 Prentice Hall3-20 Culture and Management Styles Korea. Bus based on honor & trust, most contracts are oral. http://www.1.kcci.or.kr/eng/dbdefault.htm

22. © 2006 Prentice Hall3-21 Looking Ahead Chapter 4 - Communicating Across Cultures –The Communication Process –The Culture – Communication Link –Information Technology

23. © 2006 Prentice Hall3-22 Culture Savvy A working knowledge of the cultural variables affecting management decisions Return

24. © 2006 Prentice Hall3-23 Cultural Sensitivity or Cultural Empathy An awareness and an honest caring about another individual’s culture. Return

25. © 2006 Prentice Hall3-24 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. Return

26. © 2006 Prentice Hall3-25 Self reference criterion The unconscious reference point of one’s own cultural values Return

27. © 2006 Prentice Hall3-26 Parochialism Occurs when a Frenchman, for example, expects those from or in another country to automatically fall into patterns of behavior common in France. Return

28. © 2006 Prentice Hall3-27 Ethnocentrism Describes the attitude of those who operate from the assumption that their ways of doing things are best – no matter where or under what conditions they are applied Return