MGMT544 Managing across Cultures Professor Xiao-Ping Chen Spring 2005

Culture and Cultural Differences Agenda The meaning of culture Cross-cultural theories Kluckhohn & Strodtbeck (1961) Hofstede (1980,1991)

What is the meaning of culture?

The meaning of culture Culture is a shared system of meanings. It dictates what we pay attention to, how we act and what we value. Culture organizes such values into “mental programs”. Culture is the way in which a group of people solves problems and reconciles dilemmas

The layers of culture The outer layer: explicit products Explicit culture is the observable reality of the language, food, buildings, houses, monuments, agriculture, markets, fashions and art. Each opinion we voice regarding explicit culture usually says more about where we come from than about the community we are judging

Layers of culture The middle layer: norms and values Norms are the mutual sense a group has of what is “right” and “wrong”. Values determine the definition of “good and bad,” and are closely related to the ideals shared by a group The core: assumptions about existence

A model of culture Artifacts, products explicit Norms, values Basic assumptions ( Artifacts, products explicit Artifacts and products Norms, values Basic assumptions implicit

The cultural “iceberg”

So what is culture? Culture is man-made, confirmed by others, conventionalized and passed on for younger people or newcomers to learn. It provides people with a meaningful context in which to meet, to think about themselves and face the outer world. Culture is the means by which people communicate, perpetuate, and develop their knowledge about attitudes towards life. Culture is the fabric of meaning in terms of which human beings interpret their experience and guide their action.

Culture as a “normal distribution”

Culture quiz

How do we distinguish cultures? Culture can be distinguished from each other by the differences in shared meanings they expect and attribute to their environment. One culture can be distinguished from another by the specific solution it chooses for a limited number of general, universally shared human problems.

Cross cultural theories Kluckhoun & Strodbeck’s value orientations Hosftede’s cross-cultural dimensions

Kluckhohn & Strodbeck’s (1961) six value orientations The nature of people Person’s relationship to the external environment Person’s relationship with other people Primary mode of activity How do people see space Person’s temporal orientation

Kluckhohn & Strodbeck’s (1961) six value orientations ------------------------------------------------------------------------------------------------------------ Cultural Dimension American Contrasting Cultural Orientation Cultural Orientation ------------------------------------------------------------------------------------------------------------- What is the nature of people Mixture of good and evil Good (Evil) Change is possible Change is impossible  What is person’s relationship People dominant Harmony (Subjugation) to the external environment? over nature  What is a person’s relationship Individualistic Group(Hierarchical) with other people?  What is the primary mode Doing Being(Controlling) of activity?  How do people see space? Private Public   What is a person’s temporal Future/Present Past(Present) orientation? Sequential Synchronic -------------------------------------------------------------------------------------------------------------  

Recognizing the differences Past: Practical tips for doing business in past-, present- and future-oriented cultures Recognizing the differences Past: Talk about history, origin of family, business and nation Motivated to recreate a golden age Show respect for ancestors, predecessors and older people Everything viewed in the context of tradition or history

Recognizing the differences Present: Practical tips for doing business in past-, present- and future-oriented cultures Recognizing the differences Present: Activities and enjoyments of the moment are most important Plans not objected to, but rarely executed Show intense interest in present relationships Everything viewed in terms of its contemporary impact and style

Recognizing the differences Future: Practical tips for doing business in past-, present- and future-oriented cultures Recognizing the differences Future: Much talk of prospects, potentials, aspirations, future achievements Planning and strategizing done enthusiastically Show great interest in the youthful and in future potentials Present and part used, even exploited for future advantage

Practical tips for doing business with … Past- and present-oriented Emphasize the history, tradition and rich cultural heritage of those you deal with as evidence of their great potential Discover whether internal relationships will sanction the kind of changes you seek to encourage Agree future meetings in principle but do not fix deadlines for completion Do your homework on the history, traditions and past glories of the company; consider what re-enactments you might propose

Practical tips for doing business with… Future-oriented Emphasize the freedom, opportunity and limitless scope for that company and its people in the future Discover what core competence or continuity the company intends to carry with it into the envisioned future Agree specific deadlines and do not expect work to be complete unless you do Do your homework on the future, the prospects and the technological potentials of the company; consider mounting a sizeable challenge

Recognizing time orientation Sequential: Do only one activity at a time Time is sizeable and measurable Keep appointments strictly; schedule in advance and do not run late Relationships are generally subordinate to schedule Strong preference for following initial plans

Recognizing time orientation Synchronic Do more than one activity at a time Appointments are approximate and subject to “giving time” to significant others Schedules are generally subordinate to relationships Strong preference for following where relationships lead

Hofstede’s cultural dimensions Individualism-collectivism Power distance Uncertainty avoidance Career success and quality of life Confucian dynamism

Hofstede’s cultural dimensions Individualism-Collectivism The extent to which people value their group membership and group goals (collectivism) or value their individuality and personal goals (individualism)

Hofstede’s cultural dimensions Power Distance The extent to which people accept unequal distribution of power in a society  

Hofstede’s cultural dimensions Uncertainty Avoidance The degree to which people tolerate ambiguity (low uncertainty avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance)  

Hofstede’s cultural dimensions Career Success and Quality of Life The extent to which the culture values assertiveness, competitiveness and materialism or emphasizes relationships and the well-being of others

Hofstede’s cultural dimensions Long-term Orientation (Confucian Dynamism)

Hofstede’s cultural dimensions Cultural Country Dimension China Korea India USA Individualism 21 18 48 91 Power distance 63 60 77 40 Uncertainty av. 49 85 40 46 Masculinity 51 79 56 62 LTO 118 75 61 29 LTO is also termed Confucius dynamism, which includes two essential elements: thrift and persistence Chinese being more collectivistic does not mean they are less competitive: higher scores for the Chinese on VI than the US and Australia Chinese make more competitive decisions than do Australians