11/2/2007

THE MEANINGS & DIMENSIONS OF CULTURE

21/2/2007

MUSTANG JEANS (MANAGER’S HOT SEAT)

Kunisaga, 1786-1864

31/2/2007

GROUP DISCUSSION

How effective was Michael’s new approach to the situation?

What specific things should Michael have done to bring about a successful resolution to the situation?

How well did Michael handle this situation? What could or should have been done differently?

Throughout the interchange between Michael and the Japanese manager, what do you think went through the mind of the latter?

41/2/2007

How Cultures Affect Management Approaches

Centralized Decision Making

Risk Averse Individual Rewards Informal Procedures High Organizational

Loyalty Co-operation

Encouraged

Decentralized Decision Making

Risk Seeking Group Rewards Low Organizational

Loyalty Competition

Encouraged

51/2/2007

THEORETICAL PERSPECTIVES

HOFSTEDE’S VALUE SURVEY MODEL TROMPENAARS’ CULTURAL

DIMENSIONS RONEN & SHENKAR’S COUNTRY

CLUSTERS THE GLOBE STUDY

61/2/2007

Hofstede’s Dimensions of Culture

Power Distance (Large or Small) The extent to which less powerful members of

institutions accept that power is distributed unequally Large (Mexico, South Korea, India)

blindly obey order of superiors hierarchical organizational structure

Small (U.S., Denmark, Canada) decentralized decision making flat organizational structures

71/2/2007

Power Distance Index

0

20

40

60

80

100

Malaysia ArabNations

France USA G.BritainTable 3.1 in text

81/2/2007

Uncertainty Avoidance (High or Low) The extent to which people feel threatened by

ambiguous situations High( Germany, Japan, Spain)

high need for security strong beliefs in experts

Low (Denmark, UK) willing to accept risks less structuring of activities

91/2/2007

Uncertainty Avoidance Index

0

20

40

60

80

100

Japan Mexico Germany India SwedenTable 3.1 in text

101/2/2007

Individualism (vs. Collectivism)– The tendency of people to look after

themselves and their immediate family only strong work ethic promotions based on merit

• U.S., Canada, Australia

Collectivism– The tendency of people to belong to groups

and to look after each other in exchange for loyalty

weaker work ethic promotions based on seniority

• China, South American cultures

111/2/2007

Individualism Index

0

20

40

60

80

100

USA France India ArabNationsTable 3.1 in text

121/2/2007

Masculinity (Vs. Femininity)– the dominant values in society are success,

money and things emphasis on earning and recognition high stress workplace

• Japan

Femininity– the dominant values in society are caring for

others and the quality of life employment security employee freedom

• Scandinavian cultures

131/2/2007

Masculinity Index

0

20

40

60

80

100

Japan G.Britain USA ArabNations

SwedenTable 3.1 in text

141/2/2007

COUNTRY EXAMPLES

NEW ZEALAND - INDIVIDUALISTIC, LOW UNCERTAINTY, EQUALITY & MALE VALUES

ITALY - INDIVIDUALISTIC, LOW UNCERTAINTY, & EQUALITY (QUALIFIED) AND MALE VALUES

SINGAPORE - COLLECTIVIST, HIGH UNCERTAINTY, LOW MASCULINITY, RELATIVELY HIGH POWER DISTANCE

JAPAN - COLLECTIVIST, HIGH UNCERTAINTY AVOIDANCE & MASCULINITY, RELATIVELY HIGH POWER DISTANCE

151/2/2007

Hofstede - Caution!

Assumes one-to-one relationship between culture and the nation-state Note that many nation-states contain

various cultures (often extremely different from each other).

The research may have been culturally bound. Survey respondents were from a single industry

(computer) and a single company (IBM).

161/2/2007

APPLYING TO MANAGEMENT PROCESSES

PLANNING & DECISION-MAKING - individualism & collectivism?

STRUCTURING & ORGANIZING - high or low uncertainty avoidance?

STAFFING & DIRECTING - masculinity & femininity?

COMMUNICATING & CONTROLLING - power distance?

171/2/2007

Cultural Dimensions by Trompenaars

Universalism vs. ParticularismUniversalism: the belief that ideas and

practices can be applied everywhere without modification

– U. S., Germany, and Sweden

Particularism: the belief that circumstances dictate how ideas and practices should be applied.

– Spain and Japan

181/2/2007

Neutral Vs. AffectiveNeutral: emotions are held in check

– Japan and the U.S. Affective: emotions are openly and naturally expressed

– Mexico, Netherlands, and Switzerland

Specific Vs. DiffuseSpecific: individuals have a large public space and a

small private space – UK, U. S., and Switzerland

Diffuse: both public and private space are similar in size

– Venezuela, China, and Spain

191/2/2007

Achievement Vs. AscriptionAchievement: people are

accorded status based on how well they perform their functions

– U.S., Switzerland, and UK

Ascription: status is attributed based on who or what a person is

– Venezuela and China

201/2/2007

Time

Past or Present-Oriented Vs. Future-Oriented Past or present-oriented : emphasize the history and

tradition of the culture Venezuela, Indonesia, and Spain

Future-oriented: emphasize the opportunities and limitless scope

that any agreement can have U. S., Italy, and Germany

211/2/2007

Sequential Vs. Synchronous Time

Sequential: time is prevalent, people tend to do only one activity at a time, keep appointments strictly, and prefer to follow plans

–U.S. Synchronous: time is prevalent, people tend to do more than one activity at a time, appointments are approximate, and schedules are not important

– Mexico and France

221/2/2007

Environment

Inner DirectedBelieve in controlling outcomes

– U.S.

Outer DirectedBelieve in letting things take their

own course– Asian Cultures

231/2/2007

Individualism Vs. Collectivism

Individualism: refers to people regarding themselves as individuals

–U.S., UK, and Sweden

Collectivism: refers to people regarding themselves as part of a group

– Japan and France

241/2/2007

EURO DISNEYLAND

251/2/2007

CASE QUESTIONS: 4 GROUPS (EACH ANSWERING ONE)

Using Hofstede’s four cultural dimensions as a point of reference, what are some of the main cultural differences between the US & France?

In what way has Trompenaars’s research helped explain cultural differences between the US & France?

In managing its Euro Disneyland operations, what are three mistakes that the company made? Explain.

Based on its experience, what are the three lessons the company should have learned about how to deal with diversity? Describe each.

261/2/2007

COUNTRY CLUSTERS

STUDY BY SIMCHA RONEN & ODED SHENKAR DEVELOPED CLUSTERS OF COUNTRIES

STUDIED COUNTRIES WITHIN A CLUSTER ARE

CONSIDERED SIMILAR WITH REGARD TO THEIR CULTURAL VALUES

CLUSTERS ARRANGED IN APPROXIMATE ORDER OF CLUSTER SIMILARITY

271/2/2007

A Synthesis of Country Cultures

NORDIC

FinlandDenmark

Sweden

NEAREASTERN

Turkey

GreeceIranARAB

Oman

Bahrain

Abu-Dhabi

Saudi Arabia

GERMANIC

Austria

Germany

Switzerland

FAREASTERN

MalaysiaSingaporeHongKong

PhilippinesIndonesia

Taiwan

INDEPENDENTIndiaJapan

IsraelBrazil

ANGLO

United Kingdom

Canada

United States

Ireland

South AfricaLATIN

AMERICAN

Argentina

MexicoChile

Peru

LATINEUROPEAN

France

Belgium

Italy Spain

281/2/2007

GLOBE PROJECT: JUST COMPLETED Built on previous work of Hofstede and Ronen &

Shenkar – especially Hofstede 6 of their 9 dimensions are from Hofstede

Focus on leadership – goal was to develop an empirically based theory to describe, understand & predict the impact of specific cultural variables upon leadership & organizational processes

Large study – 170 scholars with a sample of 17,000 managers in three industries located in many countries

291/2/2007

CULTURE & COMPETITIVE ADVANTAGE

VALUE SYSTEMS & NORMS OF A COUNTRY INFLUENCE THE COSTS OF DOING BUSINESS IN THAT COUNTRY.

INFLUENCES WHICH COUNTRIES WILL BE THE MOST VIABLE COMPETITORS

IMPLICATIONS FOR THE CHOICE OF COUNTRIES IN WHICH TO LOCATE PRODUCTION & DO BUSINESS

301/2/2007

ASSIGNMENT FOR 6/2/2007

TOPIC: Managing across Cultures

Cross-Cultural Conflicts in the Corning-Vitro Joint Venture: read the case (pp. 211-215) & the simulation (pp. 553-556)

311/2/2007

PROCEDURE

Read both case & simulation pages prior to class Divide the class into four groups: Vitro (supports keeping JVs),

Vitro (against keeping JVs), Corning (supports keeping JVs), Corning (against keeping JVs)

At the beginning of class, the Vitro and Corning groups will meet separately to decide whether or not the joint venture should be kept or dissolved (must be a collective decision) – 30 minutes

Also need to formulate a position to bring forward to the partner Then two representatives from each side meet to inform the

other of their decision, state their position, and come to a decision – be sure to reflect cultural differences between the Mexican & U.S. cultures in your negotiation – 15 minutes

Wrap-up & general discussion of managing in different cultures