1. MGMT544 Managing across Cultures
Professor Xiao-Ping Chen
Spring 2005

2. Culture and Cultural Differences
Agenda
The meaning of culture
Cross-cultural theories
Kluckhohn & Strodtbeck (1961)
Hofstede (1980,1991)

3. What is the meaning of culture?

4. The meaning of culture
Culture is a shared system of meanings. It dictates what we pay attention to, how we act and what we value. Culture organizes such values into “mental programs”.
Culture is the way in which a group of people solves problems and reconciles dilemmas

5. The layers of culture The outer layer: explicit products
Explicit culture is the observable reality of the language, food, buildings, houses, monuments, agriculture, markets, fashions and art.
Each opinion we voice regarding explicit culture usually says more about where we come from than about the community we are judging

6. Layers of culture The middle layer: norms and values
Norms are the mutual sense a group has of what is “right” and “wrong”.
Values determine the definition of “good and bad,” and are closely related to the ideals shared by a group
The core: assumptions about existence

7. A model of culture Artifacts, products explicit Norms, values
Basic assumptions (
Artifacts, products explicit
Artifacts and products
Norms, values
Basic assumptions
implicit

8. The cultural “iceberg”

9. So what is culture?
Culture is man-made, confirmed by others, conventionalized and passed on for younger people or newcomers to learn. It provides people with a meaningful context in which to meet, to think about themselves and face the outer world.
Culture is the means by which people communicate, perpetuate, and develop their knowledge about attitudes towards life. Culture is the fabric of meaning in terms of which human beings interpret their experience and guide their action.

10. Culture as a “normal distribution”

11. Culture quiz

12. How do we distinguish cultures?
Culture can be distinguished from each other by the differences in shared meanings they expect and attribute to their environment.
One culture can be distinguished from another by the specific solution it chooses for a limited number of general, universally shared human problems.

13. Cross cultural theories
Kluckhoun & Strodbeck’s value orientations
Hosftede’s cross-cultural dimensions

14. Kluckhohn & Strodbeck’s (1961) six value orientations
The nature of people
Person’s relationship to the external environment
Person’s relationship with other people
Primary mode of activity
How do people see space
Person’s temporal orientation

15. Kluckhohn & Strodbeck’s (1961) six value orientations
Cultural Dimension American Contrasting Cultural Orientation Cultural Orientation
What is the nature of people Mixture of good and evil Good (Evil) Change is possible Change is impossible 
What is person’s relationship People dominant Harmony (Subjugation) to the external environment? over nature 
What is a person’s relationship Individualistic Group(Hierarchical) with other people? 
What is the primary mode Doing Being(Controlling) of activity? 
How do people see space? Private Public  
What is a person’s temporal Future/Present Past(Present) orientation? Sequential Synchronic  

16. Recognizing the differences Past:
Practical tips for doing business in past-, present- and future-oriented cultures
Recognizing the differences
Past:
Talk about history, origin of family, business and nation
Motivated to recreate a golden age
Show respect for ancestors, predecessors and older people
Everything viewed in the context of tradition or history

17. Recognizing the differences Present:
Practical tips for doing business in past-, present- and future-oriented cultures
Recognizing the differences
Present:
Activities and enjoyments of the moment are most important
Plans not objected to, but rarely executed
Show intense interest in present relationships
Everything viewed in terms of its contemporary impact and style

18. Recognizing the differences Future:
Practical tips for doing business in past-, present- and future-oriented cultures
Recognizing the differences
Future:
Much talk of prospects, potentials, aspirations, future achievements
Planning and strategizing done enthusiastically
Show great interest in the youthful and in future potentials
Present and part used, even exploited for future advantage

19. Practical tips for doing business with …
Past- and present-oriented
Emphasize the history, tradition and rich cultural heritage of those you deal with as evidence of their great potential
Discover whether internal relationships will sanction the kind of changes you seek to encourage
Agree future meetings in principle but do not fix deadlines for completion
Do your homework on the history, traditions and past glories of the company; consider what re-enactments you might propose

20. Practical tips for doing business with…
Future-oriented
Emphasize the freedom, opportunity and limitless scope for that company and its people in the future
Discover what core competence or continuity the company intends to carry with it into the envisioned future
Agree specific deadlines and do not expect work to be complete unless you do
Do your homework on the future, the prospects and the technological potentials of the company; consider mounting a sizeable challenge

21. Recognizing time orientation
Sequential:
Do only one activity at a time
Time is sizeable and measurable
Keep appointments strictly; schedule in advance and do not run late
Relationships are generally subordinate to schedule
Strong preference for following initial plans

22. Recognizing time orientation
Synchronic
Do more than one activity at a time
Appointments are approximate and subject to “giving time” to significant others
Schedules are generally subordinate to relationships
Strong preference for following where relationships lead

23. Hofstede’s cultural dimensions
Individualism-collectivism
Power distance
Uncertainty avoidance
Career success and quality of life
Confucian dynamism

24. Hofstede’s cultural dimensions
Individualism-Collectivism
The extent to which people value their group membership and group goals (collectivism) or value their individuality and personal goals (individualism)

25. Hofstede’s cultural dimensions
Power Distance
The extent to which people accept unequal distribution of power in a society

26. Hofstede’s cultural dimensions
Uncertainty Avoidance
The degree to which people tolerate ambiguity (low uncertainty avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance)

27. Hofstede’s cultural dimensions
Career Success and Quality of Life
The extent to which the culture values assertiveness, competitiveness and materialism or emphasizes relationships and the well-being of others

28. Hofstede’s cultural dimensions
Long-term Orientation
(Confucian Dynamism)

29. Hofstede’s cultural dimensions
Cultural Country
Dimension China Korea India USA
Individualism
Power distance
Uncertainty av
Masculinity
LTO
LTO is also termed Confucius dynamism, which includes two essential elements: thrift and persistence
Chinese being more collectivistic does not mean they are less competitive: higher scores for the Chinese on VI than the US and Australia
Chinese make more competitive decisions than do Australians