Cultural Env.models

CULTURAL ENVIRONMENT

CROSS CULTURAL MANAGEMENT &MODELS

An Understanding of Culture & its Impact on

Business

• CultureCulture is “a set of beliefs and values about what is desirable and undesirable in a community of people and a set of formal or informal practices to support the values.”

• Acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior.

Priorities of Cultural Values

Material Life

Value System

Education Religion

Aesthetics

Language

Social Interaction

Components of culture

language has two parts: the spoken and the silent language

social interactions among people; nuclear family, extended family; reference groups

ideas and perceptions that a culture upholds in terms of beauty and good taste

community’s set of beliefs that relate to a reality that cannot be verified empirically

One of the major vehicles to channel from one generation to the next

technologies that are used to produce, distribute, and consume goods and services

values shape people’s norms and standards

Components of Culture

How Culture Affects Managerial Approaches

• Centralized vs. Decentralized Decision Making:– In some societies, top managers make all

important organizational decisions. – In others, these decisions are diffused throughout

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

How Culture AffectsManagerial Approaches

• Safety vs. Risk:– In some societies, organizational decision makers

are risk averse and have great difficulty with conditions of uncertainty.

– In others, risk taking is encouraged, and decision making under uncertainty is common.


• Individual vs. Group Rewards:– In some countries, personnel who do outstanding

work are given individual rewards in the form of bonuses and commissions.

– In others, cultural norms require group rewards, and individual rewards are frowned upon.


• Informal Procedures vs. Formal Procedures:– In some societies, much is accomplished through

informal means.– In others, formal procedures are set forth and

followed rigidly.


• High Organizational Loyalty vs. Low Organizational Loyalty– In some societies, people identify very strongly

with their organization or employer. – In others, people identify with their occupational

group, such as engineer or mechanic.


• Cooperation vs. Competition– Some societies encourage cooperation between

their people.– Others encourage competition between their

people.


• 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-range goals, such as market share and technologic developments.


• Stability vs. Innovation– The culture of some countries encourages stability

and resistance to change.– The culture of others puts high value on

innovation and change.

The dilemma:The culture theory jungle

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HOFSTEDE’S CULTURAL DIMENSIONS

• . It is based upon a study of 100,000 IBM employees who work in IBM divisions throughout the world. Hofstede’s survey revealed five underlying dimensions of culture: Power Distance, Uncertainty Avoidance, Individualism/Collectivism, and Masculinity/Femininity, long term vs short term

Cultural dimensions: Hofstede

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EDWARD T HALL STUDY

• Edward T. Hall’s concept of polychronic versus monochronic time orientation describes how cultures structure their time. The monochronic time concept follows the notion of “one thing at a time”, while the polychronic concept focuses on multiple tasks being handled at one time, and time is subordinate to interpersonal relations.

Cultural dimensions: Hall

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Cultural dimensions: Trompenaars

GLOBE- INTEGRATING CULTURE AND MANAGEMENT

• GLOBAL LEADERSHIP AND ORGANISATIONAL BEHAVIOUR EFFECTIVENESS

• A Multi country study and evaluation of cultural attributes and leadership behaviors among more than 17000 managers from 825 organizations in 62 countries.

Seeking convergence for managers:Core cultural dimensions

Core cultural dimensions

IndividualisticIndividualistic CollectivisticCollectivisticSocial RelationshipsSocial Relationships

MasteryMastery HarmonyHarmonyEnvironment RelationshipsEnvironment Relationships

MonochronicMonochronic PolychronicPolychronicTime/work patternsTime/work patterns

Rule-basedRule-based Relationship-based

Relationship-based

Uncertainty and social control


HierarchicalHierarchical EgalitarianEgalitarianPower DistributionPower Distribution

Power distribution

Hierarchical• Centralized.

• Belief that power should be distributed hierarchically across society.

• Belief in ascribed or inherited power with ultimate authority residing in institutions.

• Emphasis on organizing vertically and autocratic or centralized decision-making.

• Emphasis on who is in charge.

• Acceptance of authority; reluctance to question authority.

Egalitarian• Decentralized.

• Belief that power should be distributed relatively equally across society.

• Belief in shared or elected power with ultimate authority residing in the people.

• Emphasis on organizing horizontally and participatory or decentralized decision-making.

• Emphasis on who is best qualified.

• Rejection or skepticism of authority; willingness to question authority.

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Social relationships

Individualistic• Person-centered.

• Belief that people achieve self-identity through individual accomplishment.

• Focus on accomplishing individual goals.

• Sanctions reinforce independence and personal responsibility.

• Contract-based agreements.

• Tendency toward low-context (direct, frank) communication and individual decision-making.

Collectivistic• Group-centered.

• Belief that people achieve self-identity through group membership.

• Preference for preserving social harmony over individual rights.

• Focus on accomplishing group goals.

• Sanctions reinforce conformity to group norms.

• Relationship-based agreements.

• Tendency toward high-context (subtle, indirect) communication and group or participative decision-making.

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Environmental relationships

Mastery-oriented

• Dominance over nature. • Focus on changing or controlling one’s

natural and social environment. • Achievement valued over relationships.• Emphasis on competition in the pursuit

of personal or group goals. • Embraces change and unquestioned

innovation. • Emphasis on material possessions as

symbols of achievement. • Emphasis on assertive, proactive,

“masculine” approach. • Preference for performance-based

extrinsic rewards.

Harmony-oriented• Accommodation with nature. • Focus on living in harmony with nature

and adjusting to the natural and social environment.

• Relationships valued over achievement.

• Emphasis on social progress, quality of life, and the welfare of others.

• Defends traditions; skepticism towards change.

• Emphasis on economy, harmony, and modesty.

• Emphasis on passive, reactive, “feminine” approach.

• Preference for seniority-based intrinsic rewards.

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Time and work patterns

Monochronic• Linear.

• Sequential attention to individual tasks.

• Single-minded approach to work, planning, and implementation.

• Precise concept of time; punctual.

• Job-centered; commitment to the job and often to the organization.

• Separation of work and personal life.

• Approach to work is focused and impatient.

Polychronic• Non-linear.

• Simultaneous attention to multiple tasks.

• Interactive approach to work, planning, and implementation.

• Flexible concept of time; often late.

• People-centered; commitment to people and human relationships.

• Integration of work and personal life.

• Approach to work is at times unfocused and patient.

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Rule-based• Individual behavior should be largely

regulated by rules, laws, formal policies, standard operating procedures, and social norms that are widely supported by societal members and applied uniformly to everyone.

• Emphasis on legal contracts and meticulous record keeping.

• Low tolerance for rule breaking.

• Decisions based largely on objective criteria (e.g., legal constraints, data, policies).

Relationship-based• While rules and laws are important,

they often require flexibility in their application or enforcement by influential people (e.g., parents, peers, superiors, government officials) or unique circumstances.

• Emphasis on interpersonal relationships and trust; less emphasis on record keeping.

• Moderate tolerance for rule breaking.

• Decisions often based on subjective criteria (e.g., hunches, personal connections).

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