The Role of Culture in International Management HA 390 Module 2

Culture  Helps us organize our world  Shared values, understandings, assumptions and goals (values, beliefs, norms)  Learned from earlier generation  Imposed by present members of society

Principles for Studying Other Cultures  Individuals may not conform  Differences may not be culturally based  Understand your own culture first  Continuums –Few fall at the extremes, most are somewhere in the middle

Stereotyping/ Sociotyping  Mental files  Natural  Useful  Can be misused

Ethnocentrism  Belief that one's cultural values, beliefs and norms are better than those of another culture are

Principles Summary  4 Principles for studying cultures –Individuals may not conform –Differences may not be culturally based –Understand self first –Continuums  Stereotyping –Natural, potentially useful or harmful mental files  Ethnocentrism –Belief that one’s own culture is best

Team Work  Find several examples that demonstrate how culture affects management functions such as planning, organizing, directing and controlling  Find examples of how culture affects management style  Find several examples of how business practices differ across cultures  Prepare to present findings to class

Country Profile

Cultural Characteristics  Understand the ways culture can differ  Understand ourselves  Understand others  Value different points of view  Develop shared values, beliefs and norms

What do you think?  Are subordinates the same kind of people as management?  Should the boss know all the answers?  Is it ok for the boss to have privileges such as drinking coffee on the job that the front line workers do not have?  Is it ok to call the boss by his/her first name?  Which type of boss do you think is best - one that is autocratic, persuasive or paternalistic, or democratic ?

Power Distance High Power Distance  Order of inequality  Special privileges  Subordinates are different from superiors  Boss should know all Low Power Distance  Minimize inequalities  Equal rights  Subordinates and superiors are equals  Ok for boss to ask subordinates for answers

Power Distance Comparisons High Low Average = 51

High Power Distance Employee Expectations  Wrong to disagree with the boss  Paternalistic (father-like) management style  Boss should know all the answers  Boss should have more privileges

What do you think?  Do you think it is ok for employees to disagree and even argue with their boss?  Do you think time has a monetary value or it is something that just exists?  Do you prefer a boss who lays out the rules clearly and specifically to you in written format or do you prefer one that only sets out basic rules and assumes you will perform appropriately? Why?  If you needed a marketing plan, would you hire a hospitality marketing specialist, a general marketing specialist or would you do it yourself?  How do you react when your boss tells you s/he is going to make changes in the way things are done?

Uncertainty Avoidance High  Avoid risks  Dissonance is dangerous  Time is money  Need written rules and regulations  Believe in experts Low  Willing to take risks  Accept disagreements  Time is free  Prefer common sense to rules  Logic and common sense better than expert opinions

Uncertainty Avoidance Average=64 High avoidance of risk Willing to take risks

Individualism Collectivism  Responsible for self and immediate family  Identity based on the individual  Autonomy, variety, pleasure and individual financial security  Individual decisions  Extended families, loyalty, protection  Identity in the social system  Expertise, order, duty, security provided by the in- group  Group decisions

Individualistic Collective Average =51

Collective Individualistic

Affect of High Uncertainty Avoidance on Employees  Career stability  Rules, regulations, direction  Consistency  Avoid conflict/disagreement  Resist change  Fear of failure –May appear less ambitious  Stable employees

1.Do you live to work or work to live? 2.What are your feelings about who should do what at home? How do you view the responsible of each spouse for taking care of the children? 3.Do you feel a sense of responsibility to help when you see a homeless person begging? What is your philosophy on giving to the poor? 4. Would you take your family out of a home and community they love where they are surrounded by friends and family for a new position that offers you a considerably higher salary? 5.How would you rank yourself on the masculine/feminine continuum? 6.How do your feelings contrast with others you know? What do you think?

Masculine/Feminine Masculine  Material success  Ambition, assertive  Competitive  Live to work  Women are nurturers  Achievement Feminine  Quality of life  Relationships  Concern for weak  Work to live  Men & Women nurture  Disapprove of high achievers

MasculineFeminine Average = 51

Particularistic Universalistic  Focus more on relationships than rules  Legal contracts easily modified  Changing mutualities honored  Reality is relative to participant  Relationships evolve  Focus on rules rather than relationships  Legal contracts should be honored  Word and legal contracts honored  One reality, one truth  A deal is a deal

Percent who prefer universalistic system

Team Discussion  How would the expectations of employees from a particularistic culture differ from those of a universalistic culture?  Which system do you prefer? Why? What is the value of each of these systems?

What do you think? 1.Do you think Americans respected John Kennedy, Jr. because of what he accomplished or because of his family? 2.Do you think many people voted for our current president because of his father? 3.Would you have the same level of respect as a hospitality manager as a relative of Bill Marriott or Roy Crock would? 4.What difference do you think the school you attended make in your career after you have been working in the field at least five years?

Achievement Ascription  Respected for what you do  Respect of superior based on performance  Limited use of titles  Senior managers vary in age and gender, qualified by achievements  Respected for who you are  Respect for superior seen as commitment to the organization  Extensive use of titles  Senior managers are male, middle- aged, qualified by background (who they are)

Ascription Achievement Respect depends on family background Percent who disagree

What do you think? 1. Do you believe you can control your life or do you believe you have to accept the ways things are? 2. Is your life pre-destined? 3. Do you have a fate over which you have little or no control? 4. How do other people you know differ in their believes about controlling fate or destiny?

Locus of Control Internal  Belief in one’s ability to control fate  Respect for conflict and resistance  Focus on self rather than others  Discomfort with lack of control External  Belief that something outside oneself is in control  Harmony and responsiveness  Focus on other  Comfortable with changes

Control Fate: Percent who believe they are captains of their fate

Neutral/Affective Neutral  Hide feelings  Tension accidentally revealed  Admire poise  Avoid hugs, broad smiles and broad gestures  Monotone Affective  Openly reveal emotions  Expressive  Animated expressions  Touching, and broad gestures admired  Expression and emotion

Diffuse (High context) /Specific (low context) Diffuse (high context)  Indirect  Evasive, tactful, ambiguous  Context more important than words  Highly situational morality  Prefer neutral expressiveness  Report conclusions at end Specific (low context)  Direct, to the point  Precise, blu8nt  Words more important than context  Consistent moral stands regardless of circumstances  Prefer animated expression  Report conclusions and important points first

Cultural Dimensions Summary  Power Distance – how should the boss act  Uncertainty Avoidance – rules or common sense  Masculine/Feminine – material rewards or quality of life  Individualism/Collectivism – I versus we  Universalistic/Particularistic – treat all equally versus do favors for friends

Cultural Dimensions Summary  Achievement/Ascription – respect for what you do or respect for who you are  Locus of Control – I am in control of my destiny versus outside forces are in control  Neutral/Affective – hide versus display emotions  Diffuse/Specific (high/low context) – indirect versus direct communication