CULTURE AND MULTINATIONAL MANAGEMENT

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CHAPTER 2 CULTURE AND MULTINATIONAL MANAGEMENT
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WHAT IS CULTURE?

• Culture is the pervasive and shared beliefs,
  norms, values, and symbols that guide everyday
  life
• Transmitted by symbols, stories and rituals
• Often taken-for-granted

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NATIONAL
CULTURE
BUSINESS
CULTURE
ORGANIZATION
OCCUPATIONAL
CULTURE
CULTURE
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NATIONAL
CULTURE
BUSINESS
CULTURE
ORGANIZATION
OCCUPATIONAL
CULTURE
CULTURE
MULTINATIONAL
MANAGEMENT
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CAVEATS AND CAUTIONS

• Stereotyping
• Ethnocentrism
• Cultural relativism

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TWO DIAGNOSTIC MODELS TO UNDERSTAND CULTURAL
DIFFERENCES

• Value Orientations Model
• Hofstedes Model of National Culture

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HOFSTEDES MODEL OF NATIONAL CULTURE

• Issues of equality - power distance
• What is different and dangerous - uncertainty
  avoidance
• The individual and the group in society -
  collectivism/individualism

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• Gender roles - masculinity
• Confucian values - long term orientation

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HIGH POWER DISTANCE NORMS, VALUES, AND BELIEFS

• Inequality is good
• Everyone has a place
• People should depend on a leader
• The powerful are entitled to privileges
• The powerful should not hide their power

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UNCERTAINTY AVOIDANCE NORMS, VALUES, AND BELIEFS

• Avoid conflict
• Low tolerance of deviant people and ideas
• Respect for laws and rules
• Experts and authorities are usually correct
• Consensus is important

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INDIVIDUALISM NORMS, VALUES, AND BELIEFS

• People are responsible for themselves
• Individual achievement is ideal
• People are not emotionally dependent on
  organizations or groups

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COLLECTIVISM HAVE NORMS, VALUES, AND BELIEFS

• Self identity based on group membership
• A belief that group decision making is best
• A belief that groups protect you in exchange for
  loyalty

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MASCULINITY NORMS, VALUES, AND BELIEFS

• Clear definitions of gender roles
• Men are assertive and dominant
• Support for Machismo
• Men should be decisive
• Work is priority
• Growth, success, and money are important

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LONG TERM (CONFUCIAN) ORIENTATION

• Belief in substantial savings
• Willingness to invest
• Acceptance of slow results
• Persistence to achieve goals
• Sensitivity to social relationships
• Pragmatic adaptation

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HOFSTEDES VALUE DIMENSIONS BY COUNTRIES

• Anglo cultures (US, GB, Australia)
• High on individualism and masculinity, low on
  power distance and uncertainty avoidance

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• Latin European
• High uncertainty avoidance
• Nordic
• Low masculinity
• Far Eastern
• high power distance, low individualism

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MANAGEMENT IMPLICATIONS OF POWER DISTANCE
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MANAGEMENT IMPLICATIONS OF UNCERTAINTY AVOIDANCE
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MANAGEMENT IMPLICATIONS OF INDIVIDUALISM
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MANAGEMENT IMPLICATIONS OF MASCULINITY
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MANAGEMENT IMPLICATIONS OF LONG TERM ORIENTATION
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CONCLUSIONS

• Culture has a variety of levels that affect
  multinationals
• Models provide starting point to understand
  culture
• Learning another culture is a never ending process