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The Meanings and Dimensions ofCulture

chapter four

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

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Chapter Objectives

1. DEFINE the term culture, and discuss some of thecomparative ways of differentiating cultures.

2. DESCRIBE the concept of cultural values, andrelate some of the international differences,similarities, and changes occurring in terms of bothwork and managerial values.

3. IDENTIFY the major dimensions of culture relevantto work settings, and discuss their effects on

behavior in an international environment.4. DISCUSS the value of country cluster analysis and

relational orientations in developing effectiveinternational management practices.

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The Nature of Culture

Culture defined: Acquired knowledgethat people use to interpret experienceand generate social behavior. Thisknowledge forms values, createsattitudes, and influences behavior.

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Characteristics of Culture

Learned

Shared

Trans-generational Symbolic

Patterned

Adaptive

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Priorities of Cultural Values

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How Culture AffectsManagerial Approaches

Centralized vs. Decentralized Decision

Making:

In some societies, top managers make all

important organizational decisions.

In others, these decisions are diffusedthroughout the enterprise, and middle- and

lower-level managers actively participate in,and make, key decisions.

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Safety vs. Risk:

In some societies, organizational decisionmakers are risk averse and have great

difficulty with conditions of uncertainty.

In others, risk taking is encouraged, anddecision making under uncertainty is

common.

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Individual vs. Group Rewards:

In some countries, personnel who dooutstanding work are given individual

rewards in the form of bonuses andcommissions.

In others, cultural norms require group

rewards, and individual rewards are frownedupon.

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Informal Procedures vs. Formal

Procedures:

In some societies, much is accomplished

through informal means.

In others, formal procedures are set forthand followed rigidly.

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High Organizational Loyalty vs. Low

Organizational Loyalty

In some societies, people identify very

strongly with their organization or employer.

In others, people identify with theiroccupational group, such as engineer or

mechanic.

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Cooperation vs. Competition

Some societies encourage cooperationbetween their people.

Others encourage competition betweentheir people.

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Short-term vs. Long-term Horizons

Some culture focus most heavily on short-term horizons, such as short-range goals of

profit and efficiency.

Others are more interested in long-rangegoals, such as market share and

technologic developments.

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Stability vs. Innovation

The culture of some countries encouragesstability and resistance to change.

The culture of others puts high value oninnovation and change.

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A Model of Culture

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Business Customs in South Africa

Arrange meeting before discussing

business over phone.

Make appointments as far in advance aspossible.

Maintain eye contact, shake hands,provide business card

Maintain a win-win situation

Keep presentations short

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Values in Culture

Values

Learned from culture in which individual isreared

Differences in cultural values may result invarying management practices

Basic convictions that people have about

Right and wrong Good and bad

Important and unimportant

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Values in Culture

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Values in Culture

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Values in Culture

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Value Similarities and DifferencesAcross Cultures

1. Strong relationship between level of managerialsuccess and personal values

2. Value patterns predict managerial success and canbe used in selection/placement decisions

3. Country differences in relationship between valuesand success; however, findings across U.S., Japan,Australia, India are similar

4. Values of more successful managers favorpragmatic, dynamic, achievement-oriented andactive role in interaction with others

5. Values of less successful managers tend towardstatic and passive values; relatively passive roles ininteracting with others

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Hofstedes Cultural Dimensions

1. Power distance

2. Uncertainty avoidance

3. Individualism/collectivism4. Masculinity/femininity

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Power distance: Less powerfulmembers accept that power is distributedunequally

High power distance countries: peopleblindly obey superiors; centralized, tallstructures (e.g., Mexico, South Korea, India)

Low power distance countries: flatter,

decentralized structures, smaller ratio ofsupervisor to employee (e.g., Austria,Finland, Ireland)

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Uncertainty avoidance: people feel threatened byambiguous situations; create beliefs/institutions toavoid such situations

High uncertainty avoidance countries: high need forsecurity, strong belief in experts and their knowledge;structure organizational activities, more written rules, lessmanagerial risk taking (e.g., Germany, Japan, Spain)

Low uncertainty avoidance countries: people more willingto accept risks of the unknown, less structured organizationalactivities, fewer written rules, more managerial risk taking,higher employee turnover, more ambitious employees (e.g.,Denmark and Great Britain)

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Individualism: People look after selvesand immediate family only High individualism countries: wealthier,

protestant work ethic, greater individualinitiative, promotions based on market value(e.g., U.S., Canada, Sweden)

High collectivism countries: poorer, less

support of Protestant work ethic, lessindividual initiative, promotions based onseniority (e.g., Indonesia, Pakistan)

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Masculinity: dominant social values aresuccess, money, and things

High masculine countries: stress earnings,

recognition, advancement, challenge, wealth; highjob stress (e.g., Germanic countries)

High feminine countries: emphasize caring forothers and quality of life; cooperation, friendlyatmosphere., employment security, group decisionmaking; low job stress (e.g., Norway)

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Trompenaars Cultural Dimensions

Universalism vs. Particularism Universalism: ideas/practices can be

applied everywhere

High universalism countries: formal rules,close adhere to business contracts (e.g.,Canada, U.S., Netherlands, Hong Kong)

Particularism: circumstances dictate how

ideas/practices apply; high particularismcountries often modify contracts (e.g., China,South Korea)

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Individualism vs. Communitarianism

Individualism: people as individuals

Countries with high individualism: stress personal

and individual matters; assume great personalresponsibility (e.g., Canada, Thailand, U.S., Japan)

Communitarianism: people regard selves as part ofgroup

Value group-related issues; committee decisions;joint responsibility (e.g., Malaysia, Korea)

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Neutral vs. Emotional

Neutral: culture in which emotions not shown

High neutral countries, people act stoically and

maintain composure (e.g., Japan and U.K.) Emotional: Emotions are expressed openly

and naturally

High emotion cultures: people smile a lot, talk

loudly, greet each other with enthusiasm (e.g.,Mexico, Netherlands, Switzerland)

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Specific vs. Diffuse

Specific: large public space shared with others andsmall private space guarded closely

High specific cultures: people open, extroverted;strong separation work and personal life (e.g.,Austria, U.K., U.S.)

Diffuse: public and private spaces similar size,public space guarded because shared with privatespace; people indirect and introverted, work/privatelife closely linked (e.g., Venezuela, China, Spain)

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Achievement vs. Ascription

Achievement culture: status based on howwell perform functions (Austria, Switzerland,

U.S.) Ascription culture: status based on who or

what person is (e.g., Venezuela, China,Indonesia)

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Time Sequential: only one activity at a time;

appointments kept strictly, follow plans as laid out(U.S.)

Synchronous: multi-task, appointments areapproximate, schedules subordinate torelationships (e.g., France, Mexico)

Present vs. Future: Future more important (Italy, U.S., Germany)

Present more important (Venezuela, Indonesia All 3 time periods equally important (France,

Belgium

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The Environment

Inner-directed: people believe in control ofoutcomes (U.S., Switzerland, Greece,

Japan) Outer-directed: people believe in letting

things take own course (China, many otherAsian countries)

I t ti C lt d M t

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Integrating Culture and Management:The GLOBE Project

GLOBE: Global Leadership and OrganizationalBehavior Effectiveness.

Project extends and integrates previous analyses ofcultural attributes and variables.

Evaluates nine different cultural attributes using middlemanagers from 951 organizations in 62 countries.

Multi-cultural team of 170 scholars from around theworld worked together to survey 17,000 managers in 3

industries: financial services, food processing, andtelecommunications.

Covered every major geographic region of the world.

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The GLOBE Project

The 9 Dimensions of the GLOBE

Project: Uncertainty avoidance

Power distance Collectivism I: Social collectivism

Collectivism II: In-group collectivism

Gender egalitarianism

Assertiveness

Future orientation

Performance orientation

Humane orientation

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GLOBE Results

Corresponds generally with those of Hofstedeand Trompenaars.

Different from Hofstede in that many more

researchers with varied perspectives wereinvolved (vs. Hofstede workng alone); studiedmany companies vs. Hofstedes IBM.

GLOBE provides a current comprehensiveoverview of general stereotypes that can befurther analyzed for greater insight.

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GLOBE Project

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GLOBE Analysis

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Review and Discuss

1. What is meant by culture?

2. What is meant by value?

3. What are the dimensions of Hofstedesmodel?

4. Will cultural differences decline orintensify as roadblock to international

understanding?

5. Describe Trompenaars research.

4206 Chap 004

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