Culture and Management Chapter 2

Outline What is culture? Hofstede's model of culture Trompenaars' model of culture

What is Culture? Pervasive and shared beliefs, norms, values, and symbols that guide everyday life. Cultural norms: both prescribe and proscribe behaviors What we should do and what we cannot do. Cultural values: what is good/beautiful/holy, and what are legitimate goals for life. Cultural folkways: customs with no moral significance

What is Culture? (2) Cultural beliefs: represent our understandings about what is true. Culture is pervasive in society Affects all aspects of life Not all aspects are observable Culture is learned

Sub-cultures and Cultural Change Groups within a culture may form a sub- culture that varies in some ways from the national culture. Cultures can change gradually over time. People who have worked outside their own country or have friends from other cultures may pick up some attitudes or behaviors from the other culture.

How Cultures View Each Other Stereotyping: assumes that all people within one culture behave, believe, feel, and act the same. Ethnocentrism: occurs when people from one culture believe that theirs are the only correct norms, values, and beliefs. Self-reference criterion: the assumption that people in another culture will behave like people in your culture

Culture and Ethics Moral universalism: the belief that there are universal standards for right and wrong Cultural relativism: the belief that all cultures, no matter how different, are correct and moral for the people of those cultures.

Hofstede’s Model of National Culture Five dimensions of basic values Power distance Uncertainty avoidance Individualism Masculinity Long-term orientation

Power Distance Power distance concerns how cultures deal with inequality and focuses on Norms that tell superiors (e.g., bosses) how much they can determine the behavior of their subordinates Values and beliefs that superiors and subordinates are different kinds of people

Power Distance (2) High power distance countries have norms, values, and beliefs such as Inequality is fundamentally good Everyone has a place: some are high, some are low Most people should be dependent on a leader The powerful are entitled to privileges The powerful should not hide their power

Exhibit 2.2: Managerial Implications for Power Distance

High Uncertainty Avoidance Norms, values, and beliefs regarding tolerance for ambiguity Conflict should be avoided Deviant people and ideas should not be tolerated Laws are very important and should be followed Experts and authorities are usually correct Clear rules and procedures are important. Consensus is important

Exhibit 2.3: Managerial Implications of Uncertainty Avoidance

Individualism/Collectivism Focus is on the relationship between the individual and the group Countries high on individualism have norms, values, and beliefs such as People are responsible for themselves. Individual achievement is ideal. People need not be emotionally dependent on organizations or groups.

Individualism/Collectivism Collectivist countries have norms, values, and beliefs such as One’s identity is based on group membership. Group decision making is best. Groups protect individuals in exchange for their loyalty to the group.

Exhibit 2.4: Managerial Implications of Individualism/Collectivism

Masculinity Tendency of a culture to support traditional masculine orientation High masculinity countries have beliefs such as Gender roles should be clearly distinguished. Men are assertive and dominant. Machismo/exaggerated maleness in men is good. Men should be decisive. Work takes priority over other duties. Advancement, success, and money are important.

Exhibit 2.5: Managerial Implications of Masculinity

Long-Term Orientation Belief in substantial savings Willingness to invest Acceptance of slow results Persistence to achieve goals Sensitivity to social relationships Pragmatic adaptation

Exhibit 2.6: Managerial Implications of Long-term Orientation

Exhibit 2.7 Hofstede’s Classification of Countries by Clusters

Trompenaars' Dimensions of Culture Universalism vs. Particularism Neutral vs. Affective Specific vs. Diffuse Achievement vs. Ascription

Exhibit 3.9 Universalism vs. Particularism UniversalismParticularism

Exhibit 2.11 : Neutral vs. Affective Exhibit 2.11 in the book is backward NeutralAffective

Exhibit 2.12: Specific vs. Diffuse SpecificDiffuse

Achievement vs. Ascription Exhibit 2.13 Achievement Ascription

Exhibit 2.16: 7d Percentile Rankings for Selected Countries