1. Chapter 3 Understanding the Role of Culture
PowerPoint by
Kristopher Blanchard
North Central University
Dr Asma Abdullah (Malaysia)
Hodgetts & Luthans
© 2006 Prentice Hall

2. Overview Culture and its effects on organizations Cultural variables
Cultural value dimensions
The Internet and culture
Developing cultural profiles
Culture and management styles around the world
© 2006 Prentice Hall

3. Key Terms
Culture Savvy A working knowledge of the cultural variables affecting management decisions
Cultural Sensitivity or Cultural Empathy An awareness and an honest caring about another individual’s culture.
© 2006 Prentice Hall

4. Culture
The acquired knowledge that people use to interpret experience and generate social behavior
Cultural knowledge forms values, creates attitudes, and influences behavior
Characteristics of culture include:
Learned
Shared
Transgenerational
Symbolic
Patterned
Adaptive
© 2006 Prentice Hall

5. Key Terms
Culture of a society Comprises 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.
What would be occasion in Canada that you considered cultural? Canada Day?
What does it mean to you, your family/society. Explain to a foreigner.
© 2006 Prentice Hall

6. Key Terms
Self reference criterion The unconscious reference point of one’s own cultural values
© 2006 Prentice Hall

7. Key Terms
Parochialism Occurs when a Frenchman, for example, expects those of French origins in another country to automatically fall into patterns of behavior common in France
Ethnocentrism Describes the attitude of those who operate from the assumption that their ways of doing things are best – no matter where or under what conditions they are applied
© 2006 Prentice Hall

8. Culture and Its Effects on Organizations
A manager assigned to a foreign subsidiary, for example, must expect to find large and small differences in the behavior of individuals and groups within that organization. As depicted on this slide, these differences result from the societal, or sociocultural, variables of the culture, such as religion and language, in addition to prevailing national variables, such as economic, legal, and political factors. National and sociocultural variables thus provide the context for the development and perpetuation of cultural variables. These cultural variables, in turn, determine basic attitudes toward work, time, materialism, individualism, and change. Such attitudes affect an individual’s motivation and expectations regarding work and group relations, and they ultimately affect the outcomes that can be expected from that individual
© 2006 Prentice Hall

9. Culture and Its Effects on Organizations
Once upon a time there was a great flood, and involved in this flood were two creatures, a monkey and a fish. The monkey, being agile and experienced, was lucky enough to scramble up a tree and escape the raging waters. As he looked down from his safe perch, he saw the poor fish struggling against the swift current. With the best of intentions, he reached down and lifted the fish from the water. The result was inevitable.
What you do if you happen to see a man and a woman having a fight in a quiet street in a foreign country? The woman seems frightened and wanting to get away from the man. There are few local residents passing by, but they don’t seem disturbed by the scene.
© 2006 Prentice Hall

10. Cultural Variables
Never assume that a manager can transplant American, or Japanese, or any other country’s styles, practices, expectations, and processes
Managers need to develop a cultural profile that identifies the specific differences found in each country
Given the great variety of cultures and subcultures around the world, how can a student of cross-cultural management, or a manager wishing to be culturally savvy, develop an understanding of the specific nature of a certain people? With such an understanding, how can a manager anticipate the probable effects of an unfamiliar culture within an organizational setting and thereby manage human resources productively and control outcomes?
© 2006 Prentice Hall

11. Subcultures
Residents of the country only conform to the national character to a certain degree
Could be from ethnic, geographic, or other variables
Good managers treat people as individuals and they avoid any form of stereotyping
Managers should recognize, of course, that generalizations in cultural profiles will produce only an approximation, or stereotype, of national character. Many countries comprise diverse subcultures whose constituents conform only in varying degrees to the national character.
© 2006 Prentice Hall

12. Influences on National Culture
Kinship – guides family relationships
Education – formal or informal education of workers affects workplace expectations
Economy – means of production and distribution in a society influences all aspects of the resource allocation
Politics – system of government imposes varying constraints on an organization
To develop cultural profiles we first need to be familiar with the kinds of universal cultural variables found in most societies that make up unique clusters and provide a snapshot of the overall character of a specific group. Although there are countless individual variables, one approach to categorizing interdependent variables is given by Harris and Moran, who have identified eight categories that form the subsystems in any society.
© 2006 Prentice Hall

13. Influences on National Culture
Religion – spiritual beliefs of a society are so powerful that they overpower all other cultural aspects
Associations – the formal and informal groups that make up a society
Health – system of health care affects employee productivity
Recreation – the use, attitude, and choice of how to use leisure time
© 2006 Prentice Hall

14. Cultural Value Dimensions
Values are a society’s ideas about what is good or bad, right or wrong
© 2006 Prentice Hall

15. Performance Orientation Humane Orientation
Project GLOBE (Global Leadership & Org Beh. Effectiveness Cultural Dimensions- 170 researchers, 7 years data collection on 18,00 mgrs in 62 countries.
Assertiveness
Future Orientation
Performance Orientation
Humane Orientation
© 2006 Prentice Hall

16. Cultural Clusters Gupta et al (2002 – GLOBE res team)
9 cultural dimensions to assess cluster similarity geographically
Result in 10 culture clusters: South Asia, Anglo, Arab, Germanic Europe, Latin Europe, Eastern Europe, Confucian Asia, Latin America, Sub-Sahara Africa & Nordic Europe. Exb. 3-4.
-Germanic cluster: masculine, assertive, individualistic & result-oriented.
-Latin America: high power distance, low performance orientation, uncertainty avoidance & collective.
© 2006 Prentice Hall

17. Hofstede’s Value Dimensions: 116,000 people in 50 countries
Power Distance. The level of acceptance by a society of power inequality in institution
Uncertainty Avoidance. Extent to which people in society feel threatened by ambiguous situations. Strict laws & procedures
Individualism. People tend to look after themselves & their immediate families. Independence & achievement oriented.
Collectivism. Group comes first. Strong sense of belongingness. Saving face culture.
Which cultures dominate each of the dimensions?
© 2006 Prentice Hall

18. Femininity - dominant values are caring for others and quality of life
Masculinity - culture in which the dominant values are success, money, and things
Femininity - dominant values are caring for others and quality of life
© 2006 Prentice Hall

19. Trompenaar’ Value Dimensions
Research produced five cultural dimensions that are based on relationship orientations and attitudes toward both time and the environment
Universalism vs. Particularism
Universalism - belief that ideas and practices can be applied everywhere in the world without modification
Focus on formal rules and rely on business contacts
Particularism - belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere
Focus on relationships, working things out to suit the parties
© 2006 Prentice Hall

20. Individualism vs. Communitarianism
Individualism - people regard themselves as individuals
Rely on individuals to make decisions
Communitarianism - people regard themselves as part of a group
Seek consultation and mutual consent before making decisions
Neutral vs. Emotional
Neutral - culture in which emotions are held in check
People try not to show their feelings
Emotional - culture in which emotions are expressed openly and naturally
People smile, talk loudly, greet each other with enthusiasm
© 2006 Prentice Hall

21. Specific vs. Diffuse
Specific - culture in which individuals have a large public space they readily share with others and a small private space they guard closely and share with only close friends and associates
People often are open and extroverted
Work and private life are separate
Diffuse - culture in which both public and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well
People often appear indirect and introverted, and work and private life often are closely linked
© 2006 Prentice Hall

22. Achievement vs. Ascription
Achievement - culture in which people are accorded status based on how well they perform their functions
Ascription - culture in which status is attributed based on who or what a person is
For example, status may be accorded on the basis of age, gender, or social connections
Time
Sequential approach to time - people do one thing at a time, keep appointments strictly, follow plans to the letter
Synchronous approach - people do more than one thing at a time, appointments are approximate
© 2006 Prentice Hall

23. People believe in controlling environmental outcomes Outer-directed
Inner-directed
People believe in controlling environmental outcomes
Outer-directed
People believe in allowing things to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the five dimensions and the orientations toward time and the environment
© 2006 Prentice Hall

24. Critical Operational Value Differences
Time: the concept of time. “rubber time”
Change: control: internal or external
Material factors: materialistic vs non materialistic. How one values material things. How one values nature, the aesthetic & the spiritual realism.
Individualism: I vs we culture.
© 2006 Prentice Hall

25. Developing Cultural Profiles
What would be the 10 most valued values amongst your own racial/ethnic groups? See Next slide. Have u done the exercise on Wk 2:2
What be the 5 top valued values amongst your own racial/ethnic groups? You will get the handout, A Survey on Values & Cultural Dimensions
© 2006 Prentice Hall

26. Cultural Dimensions
Harmony (flexible, cooperative) vs Control/Mastery (firm,assertive)
Relationship (accomodating) vs Task (accomplishment)
Hierarchy (respect, seniority) vs Equality (merit, equal access)
Shame (face saving, ext locus of control) vs Guilt (personal accountability)
High Context (indirect) vs Low Contact (direct, specific)
Ploychronic (multi tasking, non-linear) vs Monochronic (time bound)
Group Orientation (we-ness) vs Individual (I, personal achievement)
Religious (holistic, spiritual) vs Secular (religion separates from work related issues)
© 2006 Prentice Hall

27. Comparative management in Focus
Profiles in Culture: Japan, Germany & South Korea.
Japanese entering United States. Cultural shock? See Exh. 3-8 p 104
Patience vs Action
Harmony vs Freedom
Hierarchy vs Equality.
© 2006 Prentice Hall

28. Culture and Management Styles
Cultural Values & Managerial Behaviors in Saudi Arabia
Family loyalty
Language
Islam
Honor & shame
An idealised self (decision making!!)
Use of time-polychronic
Independence
Male dominance.
© 2006 Prentice Hall

29. Negotiations across Cultures Americans
- linear, fact driven and numbers oriented
- impatient and the contract is their central focus
Asians
- avoid conflict
- express opinions indirectly and maintain a face of surface harmony
when too direct can be seen as rude
French
- enjoy emphasising distinctions and differences
- blunt and logical approach to conflicting points of views that can seem
antagonistic to people from other cultures
Middle Easterners and Latinos
- passionate expression of differences
- save face and preserve dignity
Russians
a great deal of posturing and theatrics
© 2006 Prentice Hall

30. Guidelines on Negotiation across Cultures
Check whether they think like you
Spend time on non-task sounding matters to establish personal relationships
Know the differences between your opponent’s social, political and economic systems and yours
Know how the above differences affect his thinking, authority and negotiating methods
Know your opponent’s legal, technical and financial systems
Know how the above will affect our choice of tactics
Know the effects of ethical standards (right, wrong,reasonable)
Know the importance of face saving
© 2006 Prentice Hall

31. Guidelines on Negotiation across Cultures Recognize the role of status
Understand the role of government in the affairs of your opponent
Identify the levels of approval
Ask questions, but don’t put pressure
Ensure there is a suitable communication system with Head Office
Identify the right leader for the situation
Make sure when using an interpreter he is skilled in both languages and negotiation.
Have a dummy run with him. Get him to translate gestures etc
Avoid using jargon
Confirm in writing and use words carefully to avoid ambiguity
Use team approach by using experts
Recognize differences in perceiving contractual differences and agreements
Make concessions only after issues are discussed.
© 2006 Prentice Hall

32. Behaviours of Successful Negotiators
Have greater flexibility - wider range of influence styles
Recognize that an agreement can only be reached through exchange
Label their behaviors
- I want to propose.....
- I want to give three reasons why..
Limit their reasons to two or three strongest points and repeat them if necessary
Evaluate behavior they like positively attributing it to themselves
Use incentives and find alternative currencies of value to the other party
Summarize and test understanding
Identify areas of agreement not on areas of conflict
Avoid provoking the other party
Use both verbal and nonverbal techniques to support ideas e.g. Use “ I”
language to convey that the speaker accepts responsibility for what he or she is
saying
Maintain eye contact with others as eye contact communicates sincerity,
concern and involvement
Show a relaxed attitude towards time and do not place unnecessary pressure on
themselves by creating artificial deadlines
Have persistence and see a difficult task through its completion
Value organizational goals above and over their own
© 2006 Prentice Hall

33. Looking Ahead Chapter 4 - Communicating Across Cultures
The Communication Process
The Culture – Communication Link
Information Technology
© 2006 Prentice Hall