Decision-Making and Cultural Values CLIPPER PROJECT GROUP Adapted from materials prepared by Mark F. Peterson, Florida Atlantic University and Peter B. Smith, University of Sussex. January 23, For details:

Culture Analysis Risks and Benefits Potential benefits: Potential benefits: –Handle ad hoc intercultural contacts when detailed briefing is impractical –Promote rapid self-directed learning by knowing what issues to consider –Anticipate likely reaction of large groups Potential Risks: Potential Risks: –Damaging or inflexible stereotypes

Avoiding Damaging Stereotypes Consciously held Consciously held Descriptive rather than evaluative Descriptive rather than evaluative Accurate Accurate Best “first guess” Best “first guess” Modified with experience Modified with experience In the face of problems, assume misunderstanding until disagreement is proven. Adapted from Adler, Nancy J. (1991): International Dimensions of Organizational Behavior (2nd ed.). Boston: PWS-Kent, p. 72.

Comparative Culture Projects Hofstede – Collective Programming Hofstede – Collective Programming –I/C, PD, M/F, UA Trompenaars – Riding the Waves Trompenaars – Riding the Waves –Achievement/Ascription, Obligation/Entitlement Inglehart – World Values Survey Inglehart – World Values Survey –Traditional/Secular, Survival/Self-Expression GLOBE – Update Hofstede, Leader Ideals GLOBE – Update Hofstede, Leader Ideals Schwartz Values Survey Schwartz Values Survey

Schwartz Individual Dimensions Benevolence Benevolence Conformity Conformity Traditionalism Traditionalism Security Security Power Power Achievement Achievement Hedonism Hedonism Stimulation Stimulation Self Direction Self Direction Universalism Universalism Selected best items (highest factor loading)

SVS Norms – English NA U.S.JamaCanaBarb Ben: 49. Helpful Con: 11. Politeness Tra: 36. Humble Sec: 8. Social Order Pow: 27. Authority Ach: 55. Successful Hed: 4. Pleasure Sti: 25.Varied Life Sel: 41. Own Goals Uni: 30. Social Justice

SVS Norms – Non-English NA BrazChinaMex Ben: 49. Helpful Con: 11. Politeness Tra: 36. Humble Sec: 8. Social Order Pow: 27. Authority Ach: 55. Successful Hed: 4. Pleasure Sti: 25.Varied Life Sel: 41. Own Goals Uni: 30. Social Justice

SVS Norms -- Regions M.A.FLS.A.PNWMARONTPRAB.C. Ben: 49. Helpful Con: 11. Polite Tra: 36. Humble Sec: 8. Soc. Ord Pow: 27. Author Ach: 55. Success Hed: 4. Pleasure Sti: 25.Var. Life Sel: 41. Own Gl Uni: 30. Soc. Jus M.A. – Mid Atlantic, FL – Florida, S.A. – South Atlantic, PNW – Pacific Northwest, MAR – Maritimes, ONT – Ontario, PRA – Prairies, B.C. – British Columbia High values mean high emphasis on a goal.

EVENT MEANING MANAGEMENT: EIGHT ORGANIZATIONAL EVENTS Appointing a New Subordinate Appointing a New Subordinate A Subordinate who is Doing Good Work A Subordinate who is Doing Good Work A Subordinate who is Doing Poor Work A Subordinate who is Doing Poor Work Equipment or Machinery Needs Replacement Equipment or Machinery Needs Replacement Another Department Does Not Provide Resources/Support Another Department Does Not Provide Resources/Support Differing Opinions within the Department Differing Opinions within the Department You see the need to Introduce New Work Procedures You see the need to Introduce New Work Procedures The Time Comes to Evaluate New Work Procedures The Time Comes to Evaluate New Work Procedures

SOURCES OF GUIDANCE Formal rules and procedures Formal rules and procedures Unwritten Rules: ‘How we do things around here’ Unwritten Rules: ‘How we do things around here’ My subordinates My subordinates Specialists outside my department Specialists outside my department Other people at my level Other people at my level My superior My superior Opinions based on own experience and training Opinions based on own experience and training Beliefs that are widely accepted in my country Beliefs that are widely accepted in my country Members of my family Members of my family Friends outside this organization Friends outside this organization

WHERE? Austria, Belarus, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Sweden, UK, Ukraine Austria, Belarus, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Sweden, UK, Ukraine Argentina, Brazil, Chile, Colombia, Jamaica, Mexico, USA Argentina, Brazil, Chile, Colombia, Jamaica, Mexico, USA Kenya, Nigeria, South Africa, Tanzania, Zimbabwe Kenya, Nigeria, South Africa, Tanzania, Zimbabwe Iran, Israel, Lebanon, Pakistan, India, Turkey Iran, Israel, Lebanon, Pakistan, India, Turkey China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand Australia, New Zealand Australia, New Zealand

Decision 1. New Subordinate: Anglo U.S.U.K.Oz.JamCanada Formal Rules Unwritten Rules Subordinates Staff specialists Colleagues Superior Own experience Widely accepted beliefs Scale: 1-5 where high values mean high use.

Decision 1. New Subordinate: Others FrancJapanChinNigeBela Formal Rules Unwritten Rules Subordinates Staff specialists Colleagues Superior Own experience Widely accepted beliefs Scale: 1-5 where high values mean high use.

Decision 1. New Subordinate: Latin America U.S.Braz.Colo.ChileMexico Formal Rules Unwritten Rules Subordinates Staff specialists Colleagues Superior Own experience Widely accepted beliefs Scale: 1-5 where high values mean high use.

WORKING TOGETHER: USA AND UK

WORKING TOGETHER: JAMAICA AND BARBADOS

Implications for International Alliances Diagnose sources used most heavily in collaborating organizations. Diagnose sources used most heavily in collaborating organizations. Consider whether differences are readily management or if they should affect decision to collaborate. Consider whether differences are readily management or if they should affect decision to collaborate. Look for complementary strengths, especially for different kinds of projects or different facets of joint projects. Look for complementary strengths, especially for different kinds of projects or different facets of joint projects. Decide which sources will be most central in implementing collaboration. Decide which sources will be most central in implementing collaboration. Identify collaboration barriers and plan steps to overcome them. Identify collaboration barriers and plan steps to overcome them.

Implications for IB Programs Send procedures manuals where rules are used, and train in application of procedures Send procedures manuals where rules are used, and train in application of procedures Plan organization culture change programs where informal norms are used; transformational leaders; visible symbols of change Plan organization culture change programs where informal norms are used; transformational leaders; visible symbols of change Provide for supervisor training where supervisors are used; transfer supervisors with technology; bring supervisors to headquarters for training Provide for supervisor training where supervisors are used; transfer supervisors with technology; bring supervisors to headquarters for training Provide opportunities for discussion and participation where subordinates and colleagues are used Provide opportunities for discussion and participation where subordinates and colleagues are used Carefully coordinate programs with national norms where national norms are used Carefully coordinate programs with national norms where national norms are used

World Bank Example Application: Managing Government Size The nature of efficient government may be culturally dependent: Change the sources used, or use preferred sources more efficiently? The nature of efficient government may be culturally dependent: Change the sources used, or use preferred sources more efficiently? Extensive staff bureaucrats to write and/or enforce regulations where rules are used heavily? Extensive staff bureaucrats to write and/or enforce regulations where rules are used heavily? Ideological monitors where societal norms are used heavily? Ideological monitors where societal norms are used heavily? Extensive staff experts to advise about projects where experts are used heavily? Extensive staff experts to advise about projects where experts are used heavily? Large line organizations where conferring with subordinates or colleagues is used heavily? Large line organizations where conferring with subordinates or colleagues is used heavily?

OWN EXPERIENCE & TRAINING

WIDESPREAD BELIEFS AS TO WHAT IS RIGHT

FORMAL RULES AND PROCEDURES

US PROFILE

ARGENTINE PROFILE

BRAZILIAN PROFILE

CZECH PROFILE

BELARUS PROFILE

HONG KONG PROFILE

CHINESE PROFILE

TANZANIAN PROFILE

UGANDAN PROFILE

References Smith, P.B., Peterson, M.F. & Schwartz, S. Cultural values, sources of guidance and their relevance to managerial behavior: A 47 nation study. Journal of Cross Cultural Psychology, 2002, 33(1), Smith, P.B., Peterson, M.F. & Schwartz, S. Cultural values, sources of guidance and their relevance to managerial behavior: A 47 nation study. Journal of Cross Cultural Psychology, 2002, 33(1), Smith, P.B., Peterson, M.F., D’Amorim, M.A., Davila, C., Gamas, E., Malvezzi, S & Saiz, J.L. Leadership in Latin American organizations: An event management perspective. Interamerican Journal of Psychology, 1999, 33 (2), Smith, P.B., Peterson, M.F., D’Amorim, M.A., Davila, C., Gamas, E., Malvezzi, S & Saiz, J.L. Leadership in Latin American organizations: An event management perspective. Interamerican Journal of Psychology, 1999, 33 (2), Peterson, M.F. & Smith, P. B. Meanings, organizations and culture: Using sources of meaning to make sense of organizational events. In Neal Ashkanasy, Celeste Wilderom & Mark F. Peterson (eds.), Handbook of organizational culture and climate. Thousand Oaks, CA: Sage Press, 2000, pp Peterson, M.F. & Smith, P. B. Meanings, organizations and culture: Using sources of meaning to make sense of organizational events. In Neal Ashkanasy, Celeste Wilderom & Mark F. Peterson (eds.), Handbook of organizational culture and climate. Thousand Oaks, CA: Sage Press, 2000, pp Peterson, M.F., Elliott, J.R., Bliese, P.D. & Radford, M.H.B. Profile analysis of the sources of meaning reported by U.S. and Japanese local government managers. Research in the Sociology of Organizations. Peter Bamberger, Miriam Erez and Samuel B. Bacharach (eds.). Greenwich, CT: JAI Press, 1996, pp Peterson, M.F., Elliott, J.R., Bliese, P.D. & Radford, M.H.B. Profile analysis of the sources of meaning reported by U.S. and Japanese local government managers. Research in the Sociology of Organizations. Peter Bamberger, Miriam Erez and Samuel B. Bacharach (eds.). Greenwich, CT: JAI Press, 1996, pp

Schwartz National Value Dimensions Hierarchy vs. egalitarianism - legitimacy of unequal distribution vs. transcendence of selfish interests. Mastery vs. harmony - getting ahead vs. fitting harmoniously. Conservatism vs. intellectual and affective individualism - maintaining the status quo vs. individuals pursuing their own ideas and affectively positive experience.

Schwartz Nation Scores: Examples ConservatismHierarchyMastery ConservatismHierarchyMastery ( National security,(Authority)(Independent, Honor parents)Ambitious) Slovakia Germany Holland Israel Jews Israel Arabs Japan Spain U.S From Schwartz, 1994; high values mean a high level of the culture dimension