© 2008 Pearson Prentice Hall 3-1 Chapter 3: Understanding the Role of Culture PowerPoint by Hettie A. Richardson Louisiana State University

© 2008 Pearson Prentice Hall 3-2 Opening Profile: Saudi Arabian Culture The intersection of culture and business McDonald’s, Saks Fifth Avenue, Pizza Hut Women outnumber men in universities, own 20% of all businesses, but account for only 7% of the workforce 60% of workforce is foreign

© 2008 Pearson Prentice Hall 3-3 Organizational Culture Organizational cultures exist within and interact with societal culture Examples: KLM’s travel-benefits policy McDonald’s in Russia

© 2008 Pearson Prentice Hall 3-4 How does culture affect organizational processes? U.S. CultureAlternative 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

© 2008 Pearson Prentice Hall 3-5 Cultural Insensitivity Self-reference criterion Example: Japanese courtesy in the US Parochialism Ethnocentrism Example: Proctor & Gamble

© 2008 Pearson Prentice Hall 3-6 Influences on National Culture Kinship Education Economy Politics

© 2008 Pearson Prentice Hall 3-7 Influences on National Culture Religion Associations Health Recreation

© 2008 Pearson Prentice Hall 3-8 Management Focus: China Protects its Culture Restrictions against foreign books, the internet, video games, and performing acts Increased censorship of foreign television programs Joint operation of television channels by Chinese broadcasters and foreign investors banned

© 2008 Pearson Prentice Hall 3-9 Cultural Value Dimensions Values are ideas about what is good or bad Help managers anticipate likely cultural effects Allow for contingency management Can vary across subcultures

© 2008 Pearson Prentice Hall 3-10 Project GLOBE Dimensions Assertiveness Low: Sweden, New Zealand, Switzerland High: Greece, Austria, Germany Performance orientation Low: Russia, Argentina, Greece High: New Zealand, Hong Kong, Singapore

© 2008 Pearson Prentice Hall 3-11 Project GLOBE Dimensions Future orientation Low: Russia, Argentina, Poland High: Netherlands, Switzerland, Singapore Humane orientation Low: Germany, Spain, France High: Malaysia, Ireland, Philippines

© 2008 Pearson Prentice Hall 3-12 Hofstede’s Dimensions Power distance Low: Denmark, Israel, Austria High: Malaysia, Arab countries, Mexico Uncertainty avoidance Low: India, Denmark, Singapore High: Greece, Japan, France

© 2008 Pearson Prentice Hall 3-13 Hofstede’s Dimensions Individualism vs. collectivism Individual: Australia, US, UK Collective: Italy, Korea, Singapore Masculinity vs. femininity Masculine: Japan, Mexico, Germany Feminine: Denmark, Sweden, New Zealand

© 2008 Pearson Prentice Hall 3-14 Hofstede’s Dimensions Long-term/short-term orientation Long-term: China, Japan, Taiwan Short-term: US, Canada, UK

© 2008 Pearson Prentice Hall 3-15 Trompenaar’s Dimensions Universalism vs. particularism Universal: USA, Germany, Sweden Particular: Japan, Spain, China Neutral vs. affective Neutral: Japan, UK, Germany Affective: Spain, Italy, China

© 2008 Pearson Prentice Hall 3-16 Trompenaar’s Dimensions Specific vs. diffuse Specific: UK, US, France Diffuse: Sweden, Spain, China Achievement vs. ascription Achievement: US, UK, Sweden Ascription: Spain, Japan, China

© 2008 Pearson Prentice Hall 3-17 Variables Causing Problems for Americans Time “Tomorrow” Change China and power machinery Material factors Individualism

© 2008 Pearson Prentice Hall 3-18 The Internet and Culture 70% of Korean homes have high-speed internet service Sweden has refused to allow airline passenger information (e.g., meal preferences) to be transmitted to the US 75% of the world’s internet market lives outside the US

© 2008 Pearson Prentice Hall 3-19 Comparative Management in Focus: Japan “Wa”—peace and harmony A mix of authoritarianism and humanism in the workplace Emphasis on participative management, consensus, and duty Open expression and conflict discouraged

© 2008 Pearson Prentice Hall 3-20 Comparative Management in Focus: Germany Preference for rules and order, privacy Dislike of inefficiency and tardiness Assertive, but not aggressive Organizations are centralized but still favor consensus decision-making

© 2008 Pearson Prentice Hall 3-21 Comparative Management in Focus: South Korea Respect family, authority, formality, class Are demonstrative, friendly, aggressive, hard- working Connections vital for business, contracts are oral Honest criticism is rare

© 2008 Pearson Prentice Hall 3-22 Applying Cultural Profiles to Management: Saudi Arabia Tribalism Paternalism, nepotism Close friendships Person-orientation, Theory Y Honor, shame Conflict avoidance, positive reinforcement

© 2008 Pearson Prentice Hall 3-23 Applying Cultural Profiles to Management: Chinese Family Business Small, family businesses predominate “Guanxi”—connections People are put ahead of business Organizations do not include “middle management”