International Management, 5th ed. Part Two: The Role of Culture

International Management, The Meanings and Dimensions Hodgetts and Luthans International Management, 5th ed. Chapter Five The Meanings and Dimensions of Culture

Objectives of the Chapter DEFINE the term “culture,” and discuss some of the comparative ways of differentiating cultures DESCRIBE the concept of cultural values, and relate some of the international differences, similarities, and changes occurring in terms of both work and managerial values IDENTIFY the major dimensions of culture relevant to work settings, and discuss their effect on behavior in an international environment DISCUSS the value of country cluster analysis and relational orientations in developing effective international management practices

The Nature of Culture Culture The acquired knowledge that people use to interpret experience and generate social behavior Cultural knowledge forms values, creates attitudes, and influences behavior Characteristics of culture include: Learned Shared Transgenerational Symbolic Patterned Adaptive

Table 5-1 Priorities of Cultural Values United States 1. Freedom 2. Independence 3. Self-reliance 4. Equality 5. Individualism 6. Competition 7. Efficiency 8. Time 9. Directness 10. Openness Japan 1. Belonging 2. Group harmony 3. Collectiveness 4. Age/seniority 5. Group consensus 6. Cooperation 7. Quality 8. Patience 9. Indirectness 10. Go-between Arab Countries 1. Family security 2. Family harmony 3. Parental guidance 4. Age 5. Authority 6. Compromise 7. Devotion 8. Patience 9. Indirectness 10. Hospitality

Management Approaches Affected by Cultural Diversity Centralized vs. Decentralized decision making Informal vs. formal procedures Safety vs. risk High vs. low organizational loyalty Individual vs. group rewards Cooperation vs. competition Sort-term vs. long-term horizons Stability vs. innovation

Figure 5-1 A Model of Culture Explicit artifacts and products of the society Implicit, basic assumptions that guide people’s behavior Norms and values that guide the society

The Nature of Culture (cont.) Values in Culture Values Basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant Research has identified both differences and similarities in values of different cultural groups Values in transition Changes taking place in managerial values as a result of both culture and technology Research on Japanese managers Individualism on the rise in Japan

Figure 5-2 Comparing Cultures as Overlapping Normal Distribution French Culture U.S. Culture

Figure 5-3 Stereotyping from the Cultural Extremes How Americans see the French arrogant flamboyant hierarchical emotional How French see Americans naive aggressive unprincipled workaholic French Culture U.S. Culture

Cultural Dimensions Geert Hofstede Power distance - extent to which less powerful members of organizations accept the unequal power distribution Uncertainty avoidance - extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these Individualism - tendency of people to look after themselves and their immediate family only Collectivism - tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty Masculinity - culture in which the dominant values are success, money, and things Femininity - dominant values are caring for others and quality of life

Attitudinal Dimensions of Culture Work Value and Attitude Similarities Research has revealed many similarities in both work values and attitudes Ronen and Kraut Smallest space analysis (SSA) - maps the relationship among countries by showing the distance between each on various cultural dimensions Can identify country clusters Ronen and Shenkar Examined variables in four categories Importance of work goals Need deficiency, fulfillment, and job satisfaction Managerial and organizational variables Work role and interpersonal orientation Identified eight country clusters and four independent countries

Figure 5-8 A Synthesis of Country Cultures NEAR EASTERN Turkey Greece Iran NORDIC Finland Denmark Sweden ARAB Oman Bahrain Abu-Dhabi Saudi Arabia GERMANIC Austria Germany Switzerland FAR EASTERN Malaysia Singapore Hong Kong Philippines Indonesia Taiwan ANGLO United Kingdom Canada United States Ireland South Africa INDEPENDENT India Japan Israel Brazil LATIN EUROPEAN France Belgium Italy Spain LATIN AMERICAN Argentina Mexico Chile Peru

Trompenaars’ Cultural Dimensions Research produced five cultural dimensions that are based on relationship orientations and attitudes toward both time and the environment Universalism vs. Particularism Universalism - belief that ideas and practices can be applied everywhere in the world without modification Focus on formal rules and rely on business contacts Particularism - belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere Focus on relationships, working things out to suit the parties

Trompenaars’ Cultural Dimensions (cont.) Individualism vs. Communitarianism Individualism - people regard themselves as individuals Rely on individuals to make decisions Communitarianism - people regard themselves as part of a group Seek consultation and mutual consent before making decisions Neutral vs. Emotional Neutral - culture in which emotions are held in check People try not to show their feelings Emotional - culture in which emotions are expressed openly and naturally People smile, talk loudly, greet each other with enthusiasm

Trompenaars’ Cultural Dimensions (cont.) Specific vs. Diffuse Specific - culture in which individuals have a large public space they readily share with others and a small private space they guard closely and share with only close friends and associates People often are open and extroverted Work and private life are separate Diffuse - culture in which both public and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well People often appear indirect and introverted, and work and private life often are closely linked

Trompenaars’ Cultural Dimensions (cont.) Achievement vs. Ascription Achievement - culture in which people are accorded status based on how well they perform their functions Ascription - culture in which status is attributed based on who or what a person is For example, status may be accorded on the basis of age, gender, or social connections Time Sequential approach to time - people do one thing at a time, keep appointments strictly, follow plans to the letter Synchronous approach - people do more than one thing at a time, appointments are approximate

Trompenaars’ Cultural Dimensions (cont.) Environment Inner-directed People believe in controlling environmental outcomes Outer-directed People believe in allowing things to take their natural course Cultural Patterns or Clusters Defined groups of countries that are similar to each other in terms of the five dimensions and the orientations toward time and the environment

Table 5-5 Trompenaars’ Cultural Groups Anglo cluster Relationship United States United Kingdom Individualism x x Communitarianism Specific relationship x x Diffuse relationship Universalism x x Particularism Neutral relationship x Emotional relationship x Achievement x x Ascription

Table 5-5 Trompenaars’ Cultural Groups Asian cluster Relationship Japan China Indonesia Hong Kong Singapore Individualism Communitarianism x x x x x Specific relationship Diffuse relationship x x x x x Universalism Particularism x x x x x Neutral relationship x x x x Emotional relationship x Achievement Ascription x x x x x

Table 5-5 Trompenaars’ Cultural Groups Latin American cluster Relationship Argentina Mexico Venezuela Brazil Individualism x x x Communitarianism Specific relationship Diffuse relationship x x x x Universalism Particularism x x x x Neutral relationship x x x Emotional relationship x Achievement x x Ascription x x

Table 5-5 Trompenaars’ Cultural Groups Latin-European cluster Relationship France Belgium Spain Italy Individualism x Communitarianism x x x Specific relationship x x Diffuse relationship x x Universalism x x x Particularism x Neutral relationship x Emotional relationship x x x Achievement x Ascription x x x

Table 5-5 Trompenaars’ Cultural Groups Germanic cluster Relationship Austria Germany Switzerland Czechoslovakia Individualism x Communitarianism x x x Specific relationship x x x Diffuse relationship x Universalism x x x x Particularism Neutral relationship x x Emotional relationship x x Achievement x x x Ascription x