Part One: Culture and Management CHAPTER 5 CULTURAL DIMENSIONS AND DILEMMAS Concept 5.1: Value orientations and dimensions Concept 5.2: Reconciling cultural dilemmas

Societal Culture and Organizations Culture is the shared values, understandings, assumptions and goals that are learned from earlier generations, imposed by present members of a society and passed on to succeeding generations. It often results in shared attitudes, codes of conduct, and expectations that subconsciously guide and control certain norms of behavior. As shown in this figure, national and sociocultural variables provide the context for cultural variables, which in turn determine attitudes toward work, time, materialism, individualism, and change. Attitudes affect behavior and, thus, individual’s motivation and expectations regarding work and workplace relations. © 2008 Pearson

Culture Culture is the shared values, understandings, assumptions and goals that are learned from earlier generations, imposed by present members of a society and passed on to succeeding generations. It often results in shared attitudes, codes of conduct, and expectations that subconsciously guide and control certain norms of behavior. As shown in this figure, national and sociocultural variables provide the context for cultural variables, which in turn determine attitudes toward work, time, materialism, individualism, and change. Attitudes affect behavior and, thus, individual’s motivation and expectations regarding work and workplace relations.

The value-orientation concept Kluckholn & Strodtbeck define value orientations as being complex principles resulting of interaction between 3 elements: - Cognitive, affective, directive Three assumptions: Universal nature of value orientations Many ways of solving problems Preferences in choosing solutions

Five problems common to all human groupings Five orientations Five problems common to all human groupings Human nature orientation (goodness or badness of human nature) Man-nature orientation (harmony-with- nature/mastery-over-nature) Time orientation (past/present/future) Activity orientation (being, being-in-becoming and doing) Relational orientation (Man’s relation to other men)

How does culture affect organizational processes? Exhibit 5.1 U.S. Culture Alternative Function Affected Individual influences future Life is preordained Planning, scheduling The environment is changeable People adjust to the environment Morale, productivity Hark work leads to success Wisdom and luck are also needed Motivation, rewards Employment can be ended Employment is for a lifetime Promotions, recruitment The extent to which culture affects organizational processes is a subject of debate. Some say that convergence is leading management styles to become more similar to one another due to issues such as industrialization and worldwide coordination. This slide is a condensed version of the information in Exhibit 3-2, and suggests ways that differences between US and other cultures might influence organizational functions.

Culture & Organizational Processes The extent to which culture affects organizational processes is a subject of debate. Some say that convergence is leading management styles to become more similar to one another due to issues such as industrialization and worldwide coordination. This slide is a condensed version of the information in Exhibit 5.1, and suggests ways that differences between US and other cultures might influence organizational functions.

Trompenaars’dimensions Trompenaars goes beyond the framework of anthropology/ sociology He shows how the following dimensions affect the process of managing cultures: - relations with other people - relations with time - relations with nature Trompenaars standpoint: - Each culture has its own specific solutions for universal problems

Relations to the others Seven dimensions Relations to the others Universalism vs Particularism Individualism vs collectivism Neutral vs affective relationships Specific vs diffuse relationships Achievement versus ascription Relation to time: Sequential/Synchronic Relation to the environment: Inner vs outer directed.

Relations to time and the environment Table 5.2 Relations to time and the environment Source: Trompenaars (1993: 8–11) and his other publications

Relations to the others Universalism/Particularism: societal versus personal obligation Individualism/Collectivism (Communitarianism): personal versus group goals Neutral/Affective relationships: emotional orientation Specific/Diffuse relationships: contract versus contact Achievement/Ascription: legitimating power and status

Management dilemmas & dimensions In practice dilemmas are typically between: Universalism-Particularism Legal contracts and loose interpretations Low cost strategies or premium strategy Extending rules or discovering exceptions Individualism- Collectivism (Communitarianism) Profit or market share strategy Originating ideas or refining useful products

Management’s dilemmas & dimensions (Continued) 3.  Neutral or Affectivity Long pauses or frequent interruptions Being professional or engaged 4.  Specific-Diffuse Data and codification or concepts and models Being results-oriented or process- oriented 5.  Achieved or ascribed status Pay for performance or vindication for worth Head-hunting or developing in-house

Management’s dilemmas & dimensions (Continued) 6.  Sequential or synchronic time Highly rational, standardized production or Just-in-time production Keeping to schedule or being easily distracted 7.  Inner or outer directed Strategically oriented or fusion oriented Dauntless entrepreneur or public benefactor

Trompenaars versus Hofstede dimensions The nature of Trompenaars’ dimensions and Hofstede dimensions is very different in approach: Trompenaars: cultures are more like circles with ‘preferred arcs joined together’ seen as a ‘model-to-learn-with’ Hofstede: - linear forms where cultures are positioned high or low or in the middle. - seeking ‘the perfect model’

Reconciling cultural dilemmas The dilemmas in each of the seven dimensions require some kind of resolution. Trompenaars’ methodology aims to reconcile what appear to be opposing values within the dimensions. Cultures are seen as ‘dancing’ from one preferred end of a dimension to another.

Hofstede’s Dimensions Power distance Low: Denmark, Israel, Austria High: Malaysia, Arab countries, Mexico Uncertainty avoidance Low: India, Denmark, Singapore High: Greece, Japan, France Hofstede’s research, which was conducted prior to the GLOBE project, is based on 116,000 people in 50 countries. Nonetheless, all of the research was conducted in a single firm—IBM. As such, the result should be interpreted with caution. Power distance is a society’s acceptance of unequal power distribution. In high power distance cultures, formal authority and hierarchy are very respected. Thus leadership tends to be autocratic and centralized. In low power distance cultures superiors and subordinates are more likely to view one another as equals, leading to more cooperation. Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations. High uncertainty avoidance cultures are very uncomfortable with ambiguity and tend to have strict laws and closely followed procedures. In businesses, managers tend to make low-risk decisions, employees are not aggressive, and lifetime employment is common. Low uncertainty avoidance cultures are more comfortable with ambiguity. In these cultures, company activities are less formal and structured, managers take more risks, and employees have more job mobility.

Hofstede’s Dimensions Individualism vs. collectivism Individual: Australia, US, UK Collective: Italy, Korea, Singapore Individualism is the tendency for people to look after themselves and their immediate families only and to neglect the needs of society. Democracy, individual initiative, and achievement are valued. Collectivism entails tight social frameworks, emotional dependence on the organization, and strong belief in group decisions. Countries scoring higher on individualism tend to have higher GNPs and freer political systems. Social loafing is more common in individual than in collective cultures. Individualism is the tendency for people to look after themselves and their immediate families only and to neglect the needs of society. Democracy, individual initiative, and achievement are valued. Collectivism entails tight social frameworks, emotional dependence on the organization, and strong belief in group decisions. Countries scoring higher on individualism tend to have higher GNPs and freer political systems. Social loafing is more common in individual than in collective cultures. Masculinity refers to the degree to which traditionally masculine values (e.g., assertiveness, materialism, and lack of concern for others) prevail. Femininity emphasizes the traditionally feminine values of concern for others, relationships, and quality of life. In more feminine cultures one tends to find less work-family conflict, less job stress, more women in high-level jobs, and a reduced need for assertiveness.

Hofstede’s Dimensions Masculinity vs. femininity Masculine: Japan, Mexico, Germany Feminine: Denmark, Sweden, New Zealand Masculinity refers to the degree to which traditionally masculine values (e.g., assertiveness, materialism, and lack of concern for others) prevail. Femininity emphasizes the traditionally feminine values of concern for others, relationships, and quality of life. In more feminine cultures one tends to find less work-family conflict, less job stress, more women in high-level jobs, and a reduced need for assertiveness.

Hofstede’s Dimensions Long-term/short-term orientation Long-term: China, Japan, Taiwan Short-term: US, Canada, UK Long-term orientation is the extent to which people accept delayed gratification of material, social, and emotional needs. These cultures focus on long-term goals, investment in the future, and are prepared to sacrifice short-term profit. It is important to note that Hofstede’s value dimensions are interdependent and interactive. Long-term orientation is the extent to which people accept delayed gratification of material, social, and emotional needs. These cultures focus on long-term goals, investment in the future, and are prepared to sacrifice short-term profit. It is important to note that Hofstede’s value dimensions are interdependent and interactive.

Trompenaar’s Dimensions Universalism vs. particularism Universal: USA, Germany, Sweden Particular: Japan, Spain, China Universalistic cultures apply rules and systems objectively, without consideration of individual circumstances. Particularistic cultures tend to put more emphasis on relationships and apply rules more subjectively. Neutral vs. affective Neutral: Japan, UK, Germany Affective: Spain, Italy, China Affective cultures tend to express emotions openly, whereas neutral cultures do not. Trompenaar’s research gathered data from 15,000 managers from 28 countries, representing 47 national cultures. Some of these are similar to other dimensions already discussed, and are not addressed here. Universalistic cultures apply rules and systems objectively, without consideration of individual circumstances. Particularistic cultures tend to put more emphasis on relationships and apply rules more subjectively. Affective cultures tend to express emotions openly, whereas neutral cultures do not.

Trompenaar’s Dimensions Specific vs. diffuse Specific: UK, US, France Diffuse: Sweden, Spain, China People in specific cultures compartmentalize their work and private lives, and they are more open and direct. In diffuse cultures work spills over into personal relationships and vice versa Achievement vs. ascription Achievement: US, UK, Sweden Ascription: Spain, Japan, China In achievement-oriented cultures individual achievement is the source of status and influence. In ascription-oriented cultures status and influence come from class, age, gender, etc. People in specific cultures compartmentalize their work and private lives, and they are more open and direct. In diffuse cultures work spills over into personal relationships and vice versa. In achievement-oriented cultures individual achievement is the source of status and influence. In ascription-oriented cultures status and influence come from class, age, gender, etc.

How does reconciliation work? The process of reconciliation leads to a dynamic equilibrium between seemingly opposed values, which make up a dilemma. There are different alternatives: 1. processing: a dilemma is made into two processes. 2. contextualising: what is text and what is context. 3. sequencing: every process of reconciliation is a sequence. 4. synergizing: adding the word through between the two opposite alternative orientations.

Conclusion Chapter 5 The Trompenaars’ dimensions reflect the value-orientation concept proposed by Kluckholn and Strodtbeck. The cross-cultural manager has to face universal dilemmas, but the way they are resolved is culturally determined. Rather than the dimensions themselves, it is the concept of reconciliation which distinguishes the work of Trompenaars (and Hampden-Turner) from that of Hofstede.