Culture: What is it? n Value system n Norms, beliefs, behaviors n Common way of thinking n Society’s communicable knowledge n Society’s characteristics passed on generation by generation

General Issues n Differences in culture n Measurement n Adaptation and Acculturation n Similarities in culture

Hofstede’s Dimensions of Culture Power Distance Small - trusting, less formal organizations Large - mistrusting, hierarchical organizations Uncertainty Avoidance Weak - risk is non-threatening; diversity is appreciated Strong - risk averse, diversity is threatening Individualism Collectivist - belonging to groups ideal; group decision making Individualist - individual initiative and achievement; leadership is the ideal Masculinity Feminine - quality of life; people and relationships come first Masculine - performance; money and transactions come first

Implications for Management INTERPERSONAL n Punctuality n Interpersonal distance n Tempo of business n Negotiations n Bribery n Linear vs. circular communication n High vs. low context communication ORGANIZATIONAL n Organizational structure n Decision making n Leadership n Adaptation of products n HRM policies n Entry mode choice n Location of value- creating activities

Leadership n Perceived levels of power n Quality/characteristics of exchange with subordinates n Communication patterns n Trust (both ways) n Delegation of tasks

Organizational Structures/Systems n Formality of policies and rules n Hierarchical vs. “flat” organizational chart n Mechanistic vs. organic n Authoritative vs. concensual decision making n HRM systems n Accounting systems

Interpersonal Relationships With … n Customers n Suppliers n Subordinates/superiors n Co-workers

Motivation and Reward n Formation/role of setting goals n Achievements n Compensation system n Job satisfaction n Organizational commitment

Communication and Meaning ( Aside from Language) Meaning Explicit: Written/ Spoken Context: Surroundings/ Non-verbal High Context Low Context