1. Business and People Management
INTERNATIONAL MANAGEMENT
GLOBAL
Business and People Management
Professor H. Michael Boyd, Ph.D.

3. The Meanings and Dimensions of Culture
Chapter 4
The Meanings and Dimensions of Culture

4. The Meanings and Dimensions of Culture
The specific objectives of this chapter are to
DEFINE the term culture, and discuss some of the comparative ways of differentiating cultures.
DESCRIBE the concept of cultural values, and relate some of the international differences, similarities, and changes occurring in terms of both work and managerial values.
IDENTIFY the major dimensions of culture relevant to work settings, and discuss their effects on behavior in an international environment.
DISCUSS the value of country cluster analysis and relational orientations in developing effective international management practices.

5. The Nature of Culture Culture is
Acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior.

6. The Nature of Culture Characteristics of culture Learned Shared
Transgenerational
Symbolic
Patterned
Adaptive

7. Priorities of Cultural Values United States, Japan, and Arab Countries

8. Cultural Diversity How Culture Affects Managerial Approaches
Centralized vs. Decentralized Decision Making
Centralized: In some societies, top managers make all important organizational decisions.
Decentralized: In others, these decisions are diffused throughout the enterprise, and middle- and lower-level managers actively participate in, and make, key decisions.

9. Cultural Diversity How Culture Affects Managerial Approaches
Safety vs. Risk
Safety: In some societies, organizational decision makers are risk-averse and have great difficulty with conditions of uncertainty.
Risk: In others, risk taking is encouraged, and decision making under uncertainty is common.

10. Cultural Diversity How Culture Affects Managerial Approaches
Individual vs. Group Rewards
Individual: In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses and commissions.
Group rewards: In others, cultural norms require group rewards, and individual rewards are frowned upon.

11. Cultural Diversity How Culture Affects Managerial Approaches
Informal vs. Formal Procedures
Informal: In some societies, much is accomplished through informal means.
Formal: In others, formal procedures are set forth and followed rigidly.

12. Cultural Diversity How Culture Affects Managerial Approaches
High vs. Low Organizational Loyalty
High: In some societies, people identify very strongly with their organization or employer.
Low: In others, people identify with their occupational group, such as engineer or mechanic.

13. Cultural Diversity How Culture Affects Managerial Approaches
Cooperation vs. Competition
Cooperation: Some societies encourage cooperation between their people.
Competition: Others encourage competition between their people.

14. Cultural Diversity How Culture Affects Managerial Approaches
Short-term vs. Long-term Horizons
Short-term: Some cultures focus most heavily on short-term horizons, such as short-range goals of profit and efficiency.
Long-term: Others are more interested in long-range goals, such as market share and technological developments.

15. Cultural Diversity How Culture Affects Managerial Approaches
Stability vs. Innovation
Stability: The culture of some countries encourages stability and resistance to change.
Innovation: The culture of others puts high value on innovation and change.

16. A Model of Culture

17. Business Customs in South Africa
Arrange a meeting before discussing business over the phone.
Make appointments as far in advance as possible.
Maintain eye contact, shake hands, provide business cards for everyone.
Be respectful of women, while aware that in their society they may be “tested.”
Maintain a win-win situation.
Be patient; don’t interrupt.
Keep presentations short; avoid flashy visuals.

18. Values in Culture Values Basic convictions that people have about
Right and wrong
Good and bad
Important and unimportant
Learned from culture in which the individual is reared
Differences in cultural values may result in varying management practices.

19. Comparing Cultures as Overlapping Normal Distributions

20. Stereotyping from the Cultural Extremes

21. U.S. Values and Possible Alternatives

22. Value Similarities and Differences Across Cultures
Strong relationship between level of managerial success and personal values
Value patterns predict managerial success and can be used in selection/placement decisions
Country differences in relationship between values and success; however, findings across U.S., Japan, Australia, India are similar
Values of more successful managers favor pragmatic, dynamic, achievement-oriented, and active role in interaction with others Values of less successful managers tend toward static and passive values; relatively passive roles in interacting with others

23. Hofstede’s Cultural Dimensions
Power Distance
Uncertainty Avoidance
Individualism―Collectivism
Masculinity―Femininity
Time Orientation
Indulgence vs. Restraint

24. Hofstede’s Cultural Dimensions
Power Distance
The extent to which less powerful members accept that power is distributed unequally
High power distance countries: people blindly obey superiors; centralized, tall organizational structures (Mexico, South Korea, India)
Low power distance countries: flatter, decentralized organizational structures, smaller ratio of supervisor to employee (Austria, Finland, Ireland)

25. Hofstede’s Cultural Dimensions
Uncertainty Avoidance
The extent to which people feel threatened by ambiguous situations; create beliefs/institutions to try to avoid such situations
High uncertainty avoidance countries: high need for security, strong belief in experts and their knowledge; structure organizational activities, more written rules, less managerial risk taking (Germany, Japan, Spain)
Low uncertainty avoidance countries: people more willing to accept risks related to unknown, less structured organizational activities, fewer written rules, more managerial risk taking, higher labor turnover, more ambitious employees (Denmark and Great Britain)

26. Hofstede’s Cultural Dimensions
Individualism
The extent to which people look after themselves and immediate family only
Collectivism
The tendency of people to belong to groups and to look after each other in exchange for loyalty
High individualism countries: wealthier, Protestant work ethic, greater individual initiative, promotions based on market value (U.S., Canada, Sweden)
High collectivism countries: poorer, less support of Protestant work ethic, less individual initiative, promotions based on seniority (Indonesia, Pakistan)

27. Hofstede’s Cultural Dimensions
Masculinity
A cultural characteristic in which the dominant social values are success, money, and things
Femininity
A cultural characteristic in which the dominant social values are caring for others and quality of life
High masculine countries: stress earnings, recognition, advancement, challenge, wealth; high job stress (Germanic countries)
High feminine countries: cooperation, friendly atmosphere, employment security, group decision making; low job stress (Norway)

28. Hofstede’s Cultural Dimensions
Time Orientation (1988)
A cultural characteristic dealing with society’s search for virtue
Long-term oriented societies: focus on the future, able to adapt traditions when conditions change, tend to save and invest, focus on achieving long-term results (Asian countries)
Short-term oriented cultures: focus on quick results, do not tend to save, service to others, belief in absolutes, value stability and leisure (U.S., UK, Spain)

29. Hofstede’s Cultural Dimensions
Indulgence vs. Restraint (2010)
Indulgent: trait related to relative happiness based on instant gratification
Restraint: a cultural characteristic based on regulating and controlling behavior according to social norms
Indulgent societies: perceived happiness, life in control, positive emotions, basic needs satisfied (U.S., UK, Australia, Chile)
Restrained societies: less happiness, sense of helplessness, less likely to remember positive emotions, basic needs not always met (China, Egypt, Romania)

30. Trompenaars’s Cultural Dimensions
Universalism vs. Particularism
Universalism: belief that ideas/practices can be applied everywhere
High universalism countries: formal rules, close adherence to business contracts (U.S., UK, Germany, Sweden, Australia)
Particularism: belief that circumstances dictate how ideas/practices apply
High particularism countries: legal contracts often modified, the way deals executed change as people get to know each other (China, Indonesia, Venezuela)

31. Trompenaars’s Cultural Dimensions
Individualism vs. Communitarianism
Individualism: people regard themselves as individuals
Countries with high individualism: stress personal and individual matters; assume great personal responsibility (U.S., UK, Argentina, Mexico, Thailand)
Communitarianism: people regard themselves as part of a group
Value group-related issues; committee decisions; joint responsibility (Malaysia, Korea)

32. Trompenaars’s Cultural Dimensions
Neutral vs. Emotional
Neutral: culture in which emotions are held in check
High neutral countries: people act stoically and maintain composure (Japan and UK)
Emotional: emotions are expressed openly and naturally
High emotion cultures: people smile a lot, talk loudly, greet each other with enthusiasm (Mexico, Netherlands, Switzerland)

33. Trompenaars’s Cultural Dimensions
Specific vs. Diffuse
Specific: large public space shared with others and small private space guarded closely
High specific cultures: people open and extroverted, strong separation of work and personal life (Austria, UK, U.S., Switzerland)
Diffuse: public and private spaces have similar size, public space guarded because shared with private space
Diffuse cultures: people indirect and introverted, work/private life closely linked (Venezuela, China, Spain)

34. Trompenaars’s Cultural Dimensions
Achievement vs. Ascription
Achievement culture: people accorded status based on how well they perform functions
High status to high achievers (Austria, Switzerland, U.S., UK)
Ascription culture: status based on who or what a person is
Status based on age, gender, social connections (Venezuela, China, Indonesia)

35. Trompenaars’s Cultural Dimensions
Time
Sequential: only one activity at a time, appointments kept strictly, follow plans as laid out (U.S.)
Synchronous: multitask, appointments are approximate and easily changed, schedules subordinate to relationships (France, Mexico)
Past/Present vs. Future:
Future more important (Italy, U.S., Germany)
Past/Present more important (Venezuela, Indonesia, Spain)
All 3 time periods equally important (France, Belgium)

36. Trompenaars’s Cultural Dimensions
The Environment
Inner-directed: people believe in controlling outcomes
Dominant (sometimes aggressive) attitude toward environment (U.S., Switzerland, Australia)
Outer-directed: people believe in letting things take their course
“Go with the flow,” flexible attitude, willingness to compromise and maintain harmony (China, many other Asian countries)

37. Integrating Culture and Management: The GLOBE Project
GLOBE: Global Leadership and Organizational Behavior Effectiveness
Project extends and integrates previous analyses of cultural attributes and variables
Evaluates nine different cultural attributes using middle managers from 951 organizations in 62 countries
First two phases: middle management
Multi-cultural team of 170 scholars from around the world worked together to survey 17,000 managers in 3 industries: financial services, food processing, and telecommunications
Covered every major geographic region of the world
Third phase: upper-level management
Team of 40 researchers from 24 countries surveyed 5,000 reports from 1,000 CEOs

38. The GLOBE Project The Nine Dimensions of the GLOBE Project
Uncertainty avoidance
Power distance
Collectivism I: Societal collectivism
Collectivism II: In-group collectivism
Gender egalitarianism
Assertiveness
Future orientation
Performance orientation
Humane orientation

39. GLOBE Country Analysis
The results of the GLOBE project
Correspond generally with those of Hofstede and Trompenaars
Different from Hofstede in that many more researchers with varied perspectives were involved (vs. Hofstede working alone); studied many companies (vs. Hofstede studied one company)
GLOBE provides a current comprehensive overview of general stereotypes that can be further analyzed for greater insight

40. GLOBE Cultural Variable Results

41. GLOBE Analysis Managerial Perspectives in the United States and Brazil

42. Review and Discuss
What is meant by the term culture? In what way can measuring attitudes about the following help differentiate between cultures: centralized or decentralized decision making, safety or risk, individual or group rewards, high or low organizational loyalty, cooperation or competition? Use these attitudes to compare the United States, Germany, and Japan. Based on your comparisons, what conclusions can you draw regarding the impact of culture on behavior?

43. Review and Discuss
What is meant by the term value? Are cultural values the same worldwide, or are there marked differences? Are these values changing over time, or are they fairly constant? How does your answer relate to the role of values in a culture?

44. Review and Discuss
What are the four major dimensions of culture studied by Geert Hofstede? Identify and describe each. What is the cultural profile of the United States? Of Asian countries? Of Latin American countries? Of Latin European countries? Based on your comparisons of these four profiles, what conclusions can you draw regarding cultural challenges facing individuals in one group when they interact with individuals in one of the other groups? Why do you think Hofstede added the fifth dimension of time orientation and the sixth dimension related to indulgence versus restraint?

45. Review and Discuss
As people engage in more international travel and become more familiar with other countries, will cultural differences decline as a roadblock to international understanding, or will they continue to be a major barrier? Defend your answer.
What are the characteristics of each of the following pairs of cultural characteristics derived from Trompenaars’s research: universalism vs. particularism, neutral vs. emotional, specific vs. diffuse, achievement vs. ascription? Compare and contrast each pair.

46. Review and Discuss
How did project GLOBE build on and extend Hofstede’s analysis? What unique contributions are associated with project GLOBE?
In what way is time a cultural factor? In what way is the need to control the environment a cultural factor? Give an example for each.