Copyright © 2000 by Harcourt, Inc. All rights reserved. Organizational Culture The shared values and norms that exist in an organization that are taught to incoming employees The shared values and norms that exist in an organization that are taught to incoming employees Involves common beliefs and feelings, regularities in behavior, historical process for transmitting values and norms Involves common beliefs and feelings, regularities in behavior, historical process for transmitting values and norms –“The way we do things around here”

Copyright © 2000 by Harcourt, Inc. All rights reserved. Organizational Culture (Cont.) Rituals and stories play key roles in maintaining organizational cultures Rituals and stories play key roles in maintaining organizational cultures Stories or myths may convey beliefs of company’s founder, or other major values Stories or myths may convey beliefs of company’s founder, or other major values

Copyright © 2000 by Harcourt, Inc. All rights reserved. Creation of Organizational Culture Beliefs and values of the organization’s founder Beliefs and values of the organization’s founder Societal norms of firm’s native/host country Societal norms of firm’s native/host country Problems of external adaptation and survival Problems of external adaptation and survival Problems of internal integration Problems of internal integration

Copyright © 2000 by Harcourt, Inc. All rights reserved. Cultural Differences Research on pace of life in various countries suggest that Westerners have fairly precise measures of time and a stronger concern for punctuality than most other people Research on pace of life in various countries suggest that Westerners have fairly precise measures of time and a stronger concern for punctuality than most other people –Monochronic style individuals focus on one thing at a time; characteristic of USA –Polychronic style individuals focus on several things at one time; characteristics of Latin American countries

Copyright © 2000 by Harcourt, Inc. All rights reserved. Dimensions of Cultural Differences Research has shown that countries differ significantly in Research has shown that countries differ significantly in –Interpersonal trust –Power-distance –Avoidance of uncertainty –Individualism v. Collectivism –Masculinity v. Femininity

Copyright © 2000 by Harcourt, Inc. All rights reserved. Doing Business in Latin America Few people rush into business Few people rush into business Men and women congregate into separate groups at social functions Men and women congregate into separate groups at social functions Latin Americans stand more closely to each other than North Americans when in conversation Latin Americans stand more closely to each other than North Americans when in conversation Men may embrace Men may embrace

Copyright © 2000 by Harcourt, Inc. All rights reserved. Doing Business in Latin America (Cont.) Guests are expected to arrive late, with exception of American guests Guests are expected to arrive late, with exception of American guests Little concern about deadlines Little concern about deadlines Machismo - expectation that businessmen will display forcefulness, self-confidence, leadership with flourish Machismo - expectation that businessmen will display forcefulness, self-confidence, leadership with flourish Fatalism Fatalism

Copyright © 2000 by Harcourt, Inc. All rights reserved. Doing Business in East Asia Japan, Korea, China Japan, Korea, China Meetings devoted to pleasantries; serving tea, engaging in chitchat Meetings devoted to pleasantries; serving tea, engaging in chitchat Seniors and elders command respect Seniors and elders command respect Consciously use slow down techniques as bargaining ploys Consciously use slow down techniques as bargaining ploys Business cards should be bilingual Business cards should be bilingual

Copyright © 2000 by Harcourt, Inc. All rights reserved. Doing Business in Russia Protocol-conscious Protocol-conscious Do business only with highest ranking executives Do business only with highest ranking executives Appear stiff and dull Appear stiff and dull More expressive in private than in public More expressive in private than in public Hard to draw up contracts due to language barriers Hard to draw up contracts due to language barriers Have no advertising experience Have no advertising experience

Copyright © 2000 by Harcourt, Inc. All rights reserved. Doing Business in the Middle East Prefer to act through trusted third parties Prefer to act through trusted third parties Personal honor given high premium Personal honor given high premium Fatalism Fatalism Emotionally expressive Emotionally expressive Intense eye contact Intense eye contact Guests should avoid discussing politics, religion, host’s family and personal professions Guests should avoid discussing politics, religion, host’s family and personal professions

Artifacts/Symbols -Visible objects, actions, stories that represent the culture -Most easily changed -Rites, rituals, ceremonies -Stories, myths, legends -Symbols -Language/jargon/gestures

Behavior Patterns - Shared ways of interacting, approaching a task - Shared ways of responding to something new

Norms - Socially constructed preferences -Group expectations about how things should be done

Values - Preferred states - Feelings & beliefs about what’s good or right

Shared Assumptions - Taken for granted - Not conscious - Hard to change

Assessing Your Cultural Identity This questionnaire is to help you think about the degree to which you identify with your culture group. Use the following scale to indicate the degree to which each statement is true of the way you typically think about yourself. “Always False” (1), “Mostly False” (2), “Sometimes True and Sometimes False” (3), “Mostly True” (4), or “Always True” (5). Cultural Identity 1. Being a member of my culture is important to me. 2. Membership in my culture is central to how I define myself. 3. If I were born again, I would want to be born as a member of my culture. 4. I often think about being a member of my culture 5. Being a member of my culture plays a large role in my life.

This questionnaire is to help you think about the degree to which you identify with your ethnic group. Use the following scale to indicate the degree to which each statement is true of the way you typically think about yourself. “Always False” (1), “Mostly False” (2), “Sometimes True and Sometimes False” (3), “Mostly True” (4), or “Always True” (5). 1. If I were born again, I would want to be born as a member of my ethnic group. 2. Being a member of my ethnic group is important to me. 3. I often think about being a member of my ethnic group. 4. Being a member of my ethnic group plays a large role in my life. 5. Thinking about myself as a member of my ethnic group is central to how I define myself. To find your scores, add the numbers you wrote next to each of the statements. Compute separate scores for cultural and ethnic identity. Scores range from 5 to 25. The higher the score, the more you identify with the group. Adapted from Hofman’s (1985) measures of “civic” and ethnic identities Assessing Your Ethnic Identity

Use the following scale to indicate the degree to which each statement is true of the way you typically think about yourself. “Always False” (1), “Mostly False” (2), “Sometimes True and Sometimes False” (3), “Mostly True” (4), or “Always True” (5). 1. I apply my values when judging people who are different. 2. I see people who are similar to me as virtuous. 3. I do not cooperate with people who are different. 4. I prefer to associate with people who are like me. 5. I do not trust people who are different from me. To find your score, add the numbers you wrote next to each of the statements. Scores range from 5 to 25. The higher the score, the more ethnocentric you are. SOURCE: The items on this questionnaire are drawn from Brewer’s (1981) description of ethnocentrism. Assessing Your Ethnocentrism