Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.1 Part One: Culture and Management CHAPTER 2 DIMENSIONS OF CULTURE IN BUSINESS Concept 2.1: National cultural dimensions in the business context Concept 2.2: The influence of national culture on business culture

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.2 Figure 1.2 Dimensions of culture Source: Schneider and Barsoux (2003): 34 Dimensions of culture

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.3 Understanding culture and management Research on communication - Edward Hall Research on different organizational functions - Nancy Adler Research on organizational culture - Schein Research on national culture - Geert Hofstede - Fons Trompenaars

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.4 Basic cultural orientations Kluckholn & Strodtbeck (1961) (Field of social anthropology) Basic cultural orientations: –the nature of people (bad or good) –relationship to nature –relationship to other people –modality of human activity (doing and being) –temporal focus of human activity (Past-Future) –conception of space

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.5 Variations in value orientations Table 2.1 Variations in value orientations Source: adapted from Kluckholn and Strodtbeck (1961): 11–12.

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.6 Hofstede’s dimensions (1980) One of the first researchers to analyze the influence of NATIONAL culture on management practices Empirical study at large multinational company (IBM) –66 national subsidiaries – questionnaires –60 out of 150 questions concerned values and opinions

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.7 Four aspects of national culture Four aspects of national culture that affect our thinking about organizations Power distance Avoidance of insecurity Individualism/Collectivism Masculinity/Femininity

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.8 The Fifth Dimension Short-term versus long-term orientation This dimension was NOT found in de data used to determine the original dimensions (Hofstede, 2001) This dimension emerges from a survey: - the Chinese Values Survey (1985) - Confucian dynamism scale

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.9 Low/High power distance Table 2.2 Extremes of Hofstede’s ‘power distance’ dimension

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.10 Individualism/ Collectivism Table 2.3 Extremes of Hofstede’s ‘collectivist/individualist’ dimension

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.11 Masculinity/Femininity Table 2.4 Extremes of the ‘masculine/feminine’ dimension

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.12 Low/High Uncertainty avoidance Table 2.5 Extremes for Hofstede’s ‘uncertainty avoidance’ dimension

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.13 Short/Long Term Orientation Table 2.7 Hofstede’s fifth dimension

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.14 Values and practices GLOBE Research programme (House et al., 2004): - Examine the practices/values at industrial, organizational and societal level Additional dimensions of societal cultural variation to Hofstede’s dimensions: - Humane orientation - Assertiveness - Gender egalitarianism - Future orientation - Performance orientation

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.15 National culture values in organizations Predominance of national culture values over organizational culture values Laurent’s investigation (1983): –national differences in concepts of management in several countries Laurent’s conclusion: –employees do not leave their national culture behind at the company entrance

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.16 Figure 2.1 Agreement with statement: a manager should have precise answers Source: based on figures in Laurent (1983: 86) Laurent’s role of manager

Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 2.17 Conclusion chapter 2 The chapter: explained the cultural dimensions of Hofstede and some criticisms of his model (read pp.27-29) outlined the relationship between national cultural values and those of organizational cultures. gave a better understanding of the relations between organizational practices and social values (GLOBE project/ Laurent’s research)