1. Mgt 485 CHAPTER 5
CULTURE
Irwin/McGraw-Hill [Modified by EvS]

2. FYI HTS Service Codes (still used by some countries, but not US)
4 digit code
Section 98 and 99 (after misc.)
9875 management consulting services
HTS Manual, 2004 / 2005 does not include service
Example of specific information
Irwin/McGraw-Hill [Modified by EvS]

3. Imports – through U.S. Intntl. Trade Commission (USITC)
Irwin/McGraw-Hill [Modified by EvS]

4. Exports – through the Census Bureau (no export qty restrictions)
Irwin/McGraw-Hill [Modified by EvS]

5. Additional Internet Sites:
Irwin/McGraw-Hill [Modified by EvS]

6. Understanding Culture
Individual
Group
Personality
Culture
Manners
Rituals
Symbols
Artifacts
Customs
Behavior
Rights
Traditions
Beliefs
Values
Assumptions
Expectations
Norms
Values
Expectations
Irwin/McGraw-Hill [Modified by EvS]

7. Perspectives on Culture
Interaction with our surroundings (and organizational systems)
Hofstede
Work values and roles (interaction with the organization)
Ronen, Kraut and Shenkar
Interpersonal relationships
Trompenaar
Irwin/McGraw-Hill [Modified by EvS]

8. The Nature of Culture (cont.)
Values in Culture
Values
Basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant
Research has identified both differences and similarities in values of different cultural groups
Values in transition
Changes taking place in managerial values as a result of both culture and technology
Research on Japanese managers
Individualism on the rise in Japan
Irwin/McGraw-Hill [Modified by EvS]

9. Management Approaches Affected by Cultural Diversity
Centralized vs.
Decentralized
decision making
Informal vs.
formal procedures
Safety vs. risk
High vs. low
organizational
loyalty
Individual vs.
group rewards
Cooperation vs.
competition
Sort-term vs.
long-term horizons
Stability vs.
innovation
Irwin/McGraw-Hill [Modified by EvS]

10. Nature of Culture Learned Shared Transgenerational Symbolic Patterned
Culture is acquired by learning and experience
Shared
People as a member of a group, organization ,or society share culture
Transgenerational
Culture is cumulative, passed down from generation to generation
Symbolic
Culture is based on the human capacity to symbolize
Patterned
Culture has structure and is integrated
Adaptive
Culture is based on the human capacity to change or adapt
Irwin/McGraw-Hill [Modified by EvS]

11. Comparing Cultures as Overlapping Normal Distribution Figure 5-2
French Culture
U.S. Culture
Irwin/McGraw-Hill [Modified by EvS]

12. Stereotyping from the Cultural Extremes
How Americans see the French
arrogant
flamboyant
hierarchical
emotional
How French see Americans
naive
aggressive
unprincipled
workaholic
French Culture
U.S. Culture
Irwin/McGraw-Hill [Modified by EvS]

13. Value Priorities United States Japan Arab Countries
1. Freedom Belonging Family Security
2. Independence Group Harmony Family Harmony
3. Self-Reliance Collectiveness Paternalism
4. Equality Age/Seniority 4. Age
5. Individualism Group Consensus Authority
6. Competition Cooperation Compromise
7. Efficiency Quality Devotion
8. Time Patience Patience
9. Directness Indirectness 9. Indirectness
10. Openness Go-between 10. Hospitality
Values- basic convictions that people have
regarding what is right and wrong, good
and bad, important or unimportant
Irwin/McGraw-Hill [Modified by EvS]

14. Value Differences and Similarities Across Cultures
U.S. managers value tactful acquisition of influence
Japanese managers value deference to superiors
Korean managers value forcefulness and aggressiveness
Indian managers value nonaggressive pursuit of objectives
Australian managers value low-key approach with high concern for others
Similarities
Strong relationship between managerial success and personal values
Value patterns predict managerial success
Successful managers favor pragmatic, achievement-oriented values while less successful managers
prefer static and
passive values
Irwin/McGraw-Hill [Modified by EvS]

15. Hofstede’s Dimensions of Culture
Power Distance (Large or Small)
The extent to which less powerful members of institutions accept that power is distributed unequally
Large (Mexico, South Korea, India)
blindly obey order of superiors
hierarchical organizational structure
Small (U.S., Denmark, Canada)
decentralized decision making
flat organizational structures
Irwin/McGraw-Hill [Modified by EvS]

16. Uncertainty Avoidance (High or Low)
The extent to which people feel threatened by ambiguous situations
High( Germany, Japan, Spain)
high need for security
strong beliefs in experts
Low (Denmark, UK)
willing to accept risks
less structuring of activities
Irwin/McGraw-Hill [Modified by EvS]

17. Individualism (vs. Collectivism)
The tendency of people to look after themselves and their immediate family only
strong work ethic
promotions based on merit
U.S., Canada, Australia
Collectivism
The tendency of people to belong to groups and to look after each other in exchange for loyalty
weaker work ethic
promotions based on seniority
China, South American cultures
Irwin/McGraw-Hill [Modified by EvS]

18. Masculinity (Vs. Femininity)
the dominant values in society are success, money and things
emphasis on earning and recognition
high stress workplace
Japan
Femininity
the dominant values in society are caring for others and the quality of life
employment security
employee freedom
Scandinavian cultures
Irwin/McGraw-Hill [Modified by EvS]

19. Attitudinal Dimensions of Culture
Work Value and Attitude Similarities
Research has revealed many similarities in both work values and attitudes
Ronen and Kraut
Smallest space analysis (SSA) - maps the relationship among countries by showing the distance between each on various cultural dimensions
Can identify country clusters
Ronen and Shenkar
Examined variables in four categories
Importance of work goals
Need deficiency, fulfillment, and job satisfaction
Managerial and organizational variables
Work role and interpersonal orientation
Identified eight country clusters and four independent countries
Irwin/McGraw-Hill [Modified by EvS]

20. A Synthesis of Country Cultures
Figure 5-8
NEAR
EASTERN
Turkey
Greece
Iran
NORDIC
Finland
Denmark
Sweden
ARAB
Oman
Bahrain
Abu-Dhabi
Saudi Arabia
GERMANIC
Austria
Germany
Switzerland
FAR
EASTERN
Malaysia
Singapore
Hong
Kong
Philippines
Indonesia
Taiwan
ANGLO
United Kingdom
Canada
United States
Ireland
South Africa
INDEPENDENT
India
Japan
Israel
Brazil
LATIN
AMERICAN
Argentina
Mexico
Chile
Peru
LATIN
EUROPEAN
France
Belgium
Italy
Spain
Irwin/McGraw-Hill [Modified by EvS]

21. Comparing Dimensions
Irwin/McGraw-Hill [Modified by EvS]

22. Trompenaar’s Cultural Dimensions Interpersonal Relationships
Universalism vs. Particularism
Universalism: the belief that ideas and practices can be applied everywhere without modification
U. S., Germany, and Sweden
Particularism: the belief that circumstances dictate how ideas and practices should be applied.
Spain and Japan
Irwin/McGraw-Hill [Modified by EvS]

23. Individualism Vs. Collectivism
Individualism: refers to people regarding themselves as individuals
U.S., UK, and Sweden
Collectivism: refers to people regarding themselves as part of a group
Japan and France
Irwin/McGraw-Hill [Modified by EvS]

24. Neutral Vs. Affective Specific Vs. Diffuse
Neutral: emotions are held in check
Japan and the U.S.
Affective: emotions are openly and naturally expressed
Mexico, Netherlands, and Switzerland
Specific Vs. Diffuse
Specific: individuals have a large public space and a small private space
UK, U. S., and Switzerland
Diffuse: both public and private space are similar in size
Venezuela, China, and Spain
Irwin/McGraw-Hill [Modified by EvS]

25. Achievement Vs. Ascription
Achievement: people are accorded status based on how well they perform their functions
U.S., Switzerland, and UK
Ascription: status is attributed based on who or what a person is
Venezuela and China
Irwin/McGraw-Hill [Modified by EvS]

26. Time Past or Present-Oriented Vs. Future-Oriented
Past or present-oriented : emphasize the history and tradition of the culture
Venezuela, Indonesia, and Spain
Future-oriented: emphasize the opportunities and limitless scope
that any agreement can have
U. S., Italy, and Germany
Irwin/McGraw-Hill [Modified by EvS]

27. Sequential Vs. Synchronous Time
Sequential: time is prevalent, people tend to do only one activity at a time, keep appointments strictly, and prefer to follow plans
U.S.
Synchronous: time is prevalent, people tend to do more than one activity at a time, appointments are approximate, and schedules are not important
Mexico and France
Irwin/McGraw-Hill [Modified by EvS]

28. Variations in Time Orientation
Irwin/McGraw-Hill [Modified by EvS]

29. Cultural Patterns or Clusters
Environment
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
Irwin/McGraw-Hill [Modified by EvS]

30. Trompenaars’ Cultural Groups Table 5-5
Anglo cluster
Relationship United States United Kingdom
Individualism x x
Communitarianism
Specific relationship x x
Diffuse relationship
Universalism x x
Particularism
Neutral relationship x
Emotional relationship x
Achievement x x
Ascription
Irwin/McGraw-Hill [Modified by EvS]

31. Trompenaars’ Cultural Groups Table 5-5
Asian cluster
Relationship Japan China Indonesia Hong Kong Singapore
Individualism
Communitarianism x x x x x
Specific relationship
Diffuse relationship x x x x x
Universalism
Particularism x x x x x
Neutral relationship x x x x
Emotional relationship x
Achievement
Ascription x x x x x
Irwin/McGraw-Hill [Modified by EvS]

32. Trompenaars’ Cultural Groups Table 5-5
Latin American cluster
Relationship Argentina Mexico Venezuela Brazil
Individualism x x x
Communitarianism
Specific relationship
Diffuse relationship x x x x
Universalism
Particularism x x x x
Neutral relationship x x x
Emotional relationship x
Achievement x x
Ascription x x
Irwin/McGraw-Hill [Modified by EvS]

33. Trompenaars’ Cultural Groups Table 5-5
Latin-European cluster
Relationship France Belgium Spain Italy
Individualism x
Communitarianism x x x
Specific relationship x x
Diffuse relationship x x
Universalism x x x
Particularism x
Neutral relationship x
Emotional relationship x x x
Achievement x
Ascription x x x
Irwin/McGraw-Hill [Modified by EvS]

34. Trompenaars’ Cultural Groups Table 5-5
Germanic cluster
Relationship Austria Germany Switzerland Czechoslovakia
Individualism x
Communitarianism x x x
Specific relationship x x x
Diffuse relationship x
Universalism x x x x
Particularism
Neutral relationship x x
Emotional relationship x x
Achievement x x x
Ascription x
Irwin/McGraw-Hill [Modified by EvS]

35. Environment Inner Directed Outer Directed
Believe in controlling outcomes
U.S.
Outer Directed
Believe in letting things take their own course
Asian Cultures
Irwin/McGraw-Hill [Modified by EvS]

36. Other Cultural Dimensions
Institutional Collectivism
In-group Collectivism
Gender Egalitarianism
Assertiveness
Power Distance
Performance Orientation
Future Orientation
Uncertainty Avoidance
Humane Orientation
Irwin/McGraw-Hill [Modified by EvS]

37. Variations in Human Nature
Irwin/McGraw-Hill [Modified by EvS]

38. Irwin/McGraw-Hill [Modified by EvS]

39. Variations in Relations to Nature
Irwin/McGraw-Hill [Modified by EvS]

40. Variations in Activities
Irwin/McGraw-Hill [Modified by EvS]

41. Variations in Relationships
Irwin/McGraw-Hill [Modified by EvS]

42. Variations in Spacial Orientation
Irwin/McGraw-Hill [Modified by EvS]

43. IKEA case Strength from mastery of value chain
unique design capabilities
unique sourcing
tightly controlled logistic
Irwin/McGraw-Hill [Modified by EvS]

44. IKEA case
Can a company’s “national culture” become a source of competitive advantage?
Irwin/McGraw-Hill [Modified by EvS]

45. IKEA case
Can a company’s “national culture” become a source of competitive advantage?
If yes, then it also must be that a company’s national culture can become a source of competitive disadvantage
Irwin/McGraw-Hill [Modified by EvS]

46. IKEA case Strategic Sourcing Marketing Mix
Irwin/McGraw-Hill [Modified by EvS]

47. IKEA case Management - Informal, open, caring Participatory HR
How did Germany react?
France?
U.S.?
Irwin/McGraw-Hill [Modified by EvS]

48. IKEA case Lessons? Appeal to customer’s needs & wants convenience
Staged
Focused
“Potato field” approach
Luck & boldness
Irwin/McGraw-Hill [Modified by EvS]