Cross Culture Management

Mid-Term Review Class

Culture • the collective programming of the mind that

distinguishes the members of one group or category of people from another group or category of people.

• the mind refers to the head, hand and heart (thinking,feeling,acting)

• gives people a sense of who they are, of belonging, and of how they should behave

• Comprises the shared values, understandings, assumptions, and goals

The Study of Culture in Management Literature

• Culture as Learned Behavior: How to negotiate with the __

• Culture as a Dialectic: two heads are better than one/ two many cooks spoil the broth

• Culture in Context: Human behavior not determined by single cause (buyer/seller, occupation etc)

• Culture as Shared Values: Value orientations are determinant to behavior.

Values:• Basic convictions that people have regarding what

is:– Right or Wrong

– Good or Bad

– Important/Unimportant

– Should be avoided or accepted

• Values learned from culture • Differing cultural values have shown to produce

different management practice norms.

How Culture Affects Managerial Approaches

In some societies, top managers make all important organizational decisions. In others, these decisions are diffused throughout the enterprise, and middle- and lower-level managers actively participate in, and make, key decisions.

VS.Centralized

Decision MakingDecentralized

Decision Making

How Culture Affects Managerial Approaches

In some societies, organizational decision makers are risk averse and have great difficulty with conditions of uncertainty. In others, risk taking is encouraged, and decision making under uncertainty is common.

VS.Safety Risk

How Culture Affects Managerial Approaches

In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses and commissions. In others, cultural norms require group rewards, and individual rewards are frowned on.

VS.Individual Rewards

Group Rewards

How Culture Affects Managerial Approaches

In some societies, much is accomplished through informal means. In others, formal procedures are set forth and followed rigidly.

VS.Informal

ProceduresFormal

Procedures

How Culture Affects Managerial Approaches

In some societies, people identify very strongly with their organization or employer. In others, people identify with their occupational group, such as engineer or mechanic.

VS.High Organizational

LoyaltyLow Organizational

Loyalty

How Culture Affects Managerial Approaches

Some societies encourage cooperation between their people. Others encourage competition between their people.

VS.Cooperation Competition

How Culture Affects Managerial Approaches

Some cultures focus most heavily on short-term horizons, such as short-range goals of profit and efficiency. Others are more interested in long-range goals, such as market share and technologic development.

VS.Short-term Horizons

Long-term horizons

How Culture Affects Managerial Approaches

The culture of some countries encourages stability and resistance to change. The culture of others puts high value on innovation and change.

VS.Stability Innovation

Alternative Approaches to Cultural Study

• Emic:– Examines culture form the examinee’ perspective

• Etic: – views the study of multiple cultures through a

trans/meta perspective– requires a descriptive classification

scheme that allows differences and similarities of underlying constructs to be visible across cultures

Schwartz Value Theory (SVT)• Identifies 10 motivationally distinct value orientations

and specifies the dynamics of conflict and congruence.• This is the ‘structure of values’

– Conflicting: Benevolence and Power

– Compatible: Conformity and Security

• Value Priorities– Presumably these values encompass the range of

motivationally distinct values recognized across cultures

– Difference in behavior across cultures is the relative importance/priorities of one value to another

– (see Schwartz reading for in-depth analysis of SVT)

Kluckhohm and Strotbeck-VOM

Human Nature Evil Mixed Good

Man-Nature Relationship

Subordinate to Nature

Harmony with Nature

Dominant over Nature

Time Sense Past Present Future

Activity Being Becoming Doing

Social Relationship

Hierarchical Collateral Individual

Hofstede Cultural Dimensions:

•Individualism/Collectivism:• the relationship between the individual and group in society

•Uncertainty Avoidance: •Typical reactions to situations considered different and dangerous

•Power Distance : •Expectations regarding equality among people

•Masculinity/Femininity:•Tendency of a society to emphasize traditional gender roles

Are all Individualists/Collectivists?

Triandis: Within every culture there are people who are:

• Idiocentric- think feel, behave like people with individualistic tendencies

AND• Allocentric- think, feel, behave like people with

collectivist tendencies• Collectivist cultures: 0-35% Idiocentric • Individualistic cultures:0-35% allocentric

Idiocentrics vs. Allocentrics

• Idiocentrics (Ind) Allocentrics (Coll)

–High in expressiveness High on accommodating

–Dominance Avoidance of arguments

– Initiation of action Shift opinions easily–Logical arguments Emotional arguments–Strong opinions

Trompenaars Cultural Dimensions• The 7D model builds on the traditional

anthropological approaches to understanding culture.

• 5 dimensions deal with the challenges of how people relate with people.

• 1 dimension deals with how a culture manages time.

• 1 dimension deals with how a culture manages nature.

• Universalism vs. Particularism: the choice of dealing with other people based on rules or based on personal relationships.

• Collectivism vs. Individualism: the focus on group membership versus individual characteristics.

• Neutral vs.. Affective: the range of feelings outwardly expressed in the society

• Diffuse vs. Specific: the types of involvement people have with each other ranging from all aspects of life to specific components

• Achievement vs. Ascription: the assignment of status in the society based on performance (eg. college graduation) versus assignment based on heritage

• Control of ‘versus accommodation with’ nature: nature viewed as something to be controlled versus something to be accepted

• Time: Synchronous or Sequential: Importance given to time and its use and order of tasks.

• Seven Value Orientations. All societies confront and must cope with basic problems in regulating human activity in order to survive ((Kluckhohn & Strodtbeck, 1961; Parsons, 1951).

• Three societal problems as most critical: • (1) defining the boundaries between the person and the

group and the optimal relations between them;• (2) ensuring coordination among people to produce

goods and services in ways that preserve the social fabric;

• (3) regulating the utilization of human and natural resources. Cultural value emphases reflect and justify preferred societal responses to these problems.

Problem 1Embeddedness Embeddedness

Characteristic of societies based on interdependent social relations, where security, conformity and tradition are priorities. – emphasize the status and propriety, and try to avoid actions by individuals which

attempt to alter the traditional established order (social order, obedience, respect for tradition, family security, self-discipline).

Affective AutonomyAffective Autonomy Interest in promoting and protecting the attainment of positive affective experiences (pleasure, exciting life, varied life). – These values share with intellectual autonomy the same

concept of an autonomous person that implies relating to others

in terms of self-interest and negotiated agreements (Schwartz, 1994).

Intellectual Autonomy Intellectual Autonomy Comprises the values that situate the person as an autonomous entity to pursue his or

her goals and intellectual interests (curious, open minded, creative).

Problem 2Problem 2Hierarchy Hierarchy

Places emphasis in the legitimacy of the hierarchical ascription of roles and fixed resources (social power, authority, humility, wealth).

Together with the value type of embeddedness, this constitutes the nucleus of the collectivism dimension that has been widely used to describe cultures and societies (Hofstede,1984; Triandis, 1990).

EgalitarianismEgalitarianism Typical of societies that share a concern for the well-being of others (equality, social justice, responsible, help).

not very important in collectivist cultures where the identification with those who matter (in-groups) assures the preoccupation for well-being. positively related with intellectual and affective autonomy (individualism) and negatively related to collectivism.

Problem 3

HarmonyHarmony Harmonious fit with nature and perhaps as well with the environment (unity with nature, protection of the environment, world of beauty).

MasteryMastery Values give priority to the dominance of the surroundings through self-affirmation (ambition, success, risk).

– It is related with affective individualism through sharing the desire for activity and stimulation and presupposing the legitimacy of changing the status quo.