Cross-Cultural Management

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Cross-Cultural Management
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Chapter 1 Meanings and Dimensions of Culture

• Outline
• Chap1-1 Cross-cultural management
• Chap1-2 Globalization
• Chap1-3 Definitions of culture
• Chap1-4 Nature of culture
• Chap1-5 Cultural values
• Chap1-6 Dimensions of culture
• Chap1-7 Attitudinal Dimensions of Culture
• Chap1-8 Trompenaars s Cultural Dimensions

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Chap1-1
Cross-cultural management
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What is Cross-Cultural Management?

• CCM is a fairly new field that is based on
  theories and research from
• Cross Cultural Psychology
• International Business
• Organizational Behaviour
• Human Resources
• Anthropology

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Goals for Cross-Cultural Management

• Cross Cultural Management seeks to
• understand how national cultures affect
  management practices
• identify the similarities and differences across
  cultures in various management practices and
  organizational contexts
• increase effectiveness in global management

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Chap1-2

• Globalization

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Globalization

• Like it or not, globalization is hereto stay.
• Most large companies have some kind of business
  relations with customers, companies, employees or
  various stake-holders in other countriesand
  cultures. (Global corporations)
• Many employees and managers deal with people from
  other cultures on a constant basis
• Most of us have a close experience with only one
  or two culturesgt

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Globalization

• We do not understand people from other cultures
  as readily and intuitively as people from our own
  culture gt
• Cross cultural management helps organization
  members to gain better understanding of other
  cultures, of their culture and of the
  consequences of people from different cultures
  working together

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Chap1-3

• Definitions of culture

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Culture

• Definition acquired knowledge that people use to
  interpret experience and generate social
  behavior.
• Culture forms values, creates attitude,
  influences behavior.

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Chap1-4

• Nature of culture

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Culture

• Characteristics of culture include
• Learned
• Shared
• Transgenerational
• Symbolic
• Patterned
• Adaptive

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Cultural diversity

• (P4 Culture and types of handshake)
• Cultural values
• (P5 Priorities of cultural values US, Japan)
• (P5 examples where culture can affect management
  approaches)
• Depict cultural diversity through concentric
  circles.

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Chap1-5

• Cultural values

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Priorities of Cultural Values
Arab Countries 1. Family security 2. Family
harmony 3. Parental guidance 4. Age 5.
Authority 6. Compromise 7. Devotion 8.
Patience 9. Indirectness 10. Hospitality
Japan 1. Belonging 2. Group harmony 3.
Collectiveness 4. Age/seniority 5. Group
consensus 6. Cooperation 7. Quality 8.
Patience 9. Indirectness 10. Go-between
United States 1. Freedom 2. Independence 3.
Self-reliance 4. Equality 5. Individualism
6. Competition 7. Efficiency 8. Time 9.
Directness 10. Openness
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Management Approaches Affected by Cultural
Diversity
Cultural Diversity
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Summary of what we learned last week

• Introduction to the course of cross-cultural
  management and our international teaching team
• Goals for Cross-cultural management
• Nature of culture

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We will learn today

• A model of culture concentric circles
• Comparing culture as a normal distribution
• Values in culture
• Hofstedes cultural dimensions

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A model of culture concentric circles
Outer layer observable, e.g. language, food,
buildings, art. Middle layer helps people
understand how they should behave. Inner layer
intangible, helpful for problem-solving and well
interactions with other people.
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Comparing Cultures as Overlapping Normal
Distribution
Chinese Culture
U.S. Culture
?
?
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Stereotyping from the Cultural Extremes Brugha
and Dus research

• How Americans see the Chinese
• in community
• avoid confrontation
• (keep in harmony)
• respect for authorities
• and seniors

• How Chinese see Americans
• individualism
• face confrontation
• (arguments and debates)
• respect for achievements

Chinese Culture
U.S. Culture
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Values in Culture

• Values basic convictions that people have
  regarding what is right and wrong, good and bad,
  important and unimportant.
• Value differences and similarities across
  cultures P 10 common personal values
• U.S. Values and possible alternatives
• Values in transition work values change over
  time.

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Dominant Western Values in Workforce
Career Stage
Entered the Workforce
Approximate Current Age
Dominant Work Values
Hard working loyal to firm conservative
Nonconforming seeks autonomy loyal to
self Ambitious, hard worker loyal to
career Flexible, values leisure loyal to
relationships
50 to 65 35 to 50 35 to 35 Under 25
1. Protestant Work Ethic 2.
Existential 3. Pragmatic 4. Generation X
Mid-1940s to Late 1950s 1960s to
Mid-1970s Mid-1970s to Mid-1980s Mid-1980s thro
ugh 1990s
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Chap1-6

• Dimensions of culture

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Hofstedes Cultural Dimensions

• Dutch researcher Geert Hofstede found there are
  four dimensions of culture.
• Hofstedes initial data questionnaire surveys
  with over 116000 respondents from over 70
  different countries who worked in the local
  subsidiaries of IBM.
• The fifth dimension was added later.
• Criticized because of its focus on just one
  company.
• Popular in the research field of cross-cultural
  management.

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• Power Distance
• Uncertainty Avoidance
• Individualism
• Masculinity
• Long-Term Orientation

Hofstedes Five Cultural Dimensions
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• Power Distance the extent to which less powerful
  members of organizations accept that power is
  distributed unequally.
• Low people treated as equals despite social
  status
• High people accept authority relations
• Uncertainty avoidance the extent to which people
  feel threatened by ambiguous situations and have
  created beliefs and institutions that try to
  avoid these.
• Low prefer few formal rules
• High want clear behavioral guides

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• Individualism/collectivism the tendency of
  people to look after themselves and their
  immediate family only (belong to groups or
  collectives and to look after each other in
  exchange for loyalty).
• Low group behavior important
• High individual behavior important
• A bipolar continuum

Individualism
Collectivism
Individualism
Collectivism
Individualism
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• Masculinity/femininity a situation in which the
  dominant values in society are success, money,
  and things (caring for others and the quality of
  life).
• Low cooperation friendly atmosphere employment
  security low stress warm interpersonal
  relationships.
• High competition challenge recognition
  wealth advancement high stress tight control.
• A continuum

Femininity
Masculinity
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• Longterm orientation value placed on
  persistence, status, thrift
• Low respect for tradition, personal stability,
  focused on the past
• High perseverance, thrift, focused on the future
• This dimension was added to depict the influence
  of Confucianism in Asia.
• This dimension is similar to Adjusting proposed
  by Brugha and Du.

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Examples of Cultural Dimensions
Country Power Distance Individualism Masculinity Uncertainty Avoidance Long-term Orientation
China High Low Moderate Moderate High
France High High Moderate High Low
Germany Low High High Moderate Moderate
Hong Kong High Low High Low High
Indonesia High Low Moderate Low Low
Japan Moderate Moderate High Moderate Moderate
Netherlands Low High Low Moderate Moderate
Russia High Moderate Low High Low
United States Low High High Low Low
West Africa High Low Moderate Moderate Low
A low score is synonymous with collectivism
A low score is synonymous with masculinity A
low score is synonymous with a short-term
orientation
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Additional Frameworks
Two additional perspectives, of
social/cross-cultural psychologists merit
attention Markus Kitayama Independent
Interdependent Construals Triandis
Individualism-Collectivism
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Vertical Horizontal Individualism Collectivism

• Harry Triandis Combination of Individualism vs.
  collectivism and power achievement vs.
  benevolence universalism
• VI achievement individualism (USA)
• HI universalism individualism (Sweden)
• VC power collectivism (India)
• HC benevolence collectivism (Israel rare)

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Schwartzs Values

• Universalism
• Benevolence
• Conformity tradition
• Security
• Power
• Achievement
• Hedonism
• Stimulation
• Self Direction

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Schwartzs Value Map
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Empirical test of the Theory

• 75,000 respondents, varied samples in 68
  countries
• Instrument lists 57 abstract value items
• How important is each item as a guiding
  principle in your life?

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• Tasks in the next session
• Students talks and presentations
• Discussion in groups how to learn Cross-cultural
  management?
• Assignment after class
• Read a paper on Hofstedes cultural dimensions.

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Preview

• Integrating Hofstedes cultural dimensions
• Attitudinal dimensions of culture
• Trompenaarss cultural dimensions
• Integrating culture and management

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Chap1-7 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

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A Synthesis of Country Cultures
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GLOBE Project

• Multi-country study and evaluation of cultural
  attributes and leadership behavior
• Are transformational characteristics of
  leadership universally endorsed?
• 170 country co-investigators
• 65 different cultures
• 17,500 middle managers
• 800 organisations

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GLOBE Project

• What traits are universally viewed as impediments
  to leadership effectiveness?
• Based on beliefs that
• Certain attributes that distinguish one culture
  from others can be used to predict the most
  suitable, effective and acceptable organizational
  and leader practices within that culture
• Societal culture has direct impact on
  organizational culture
• Leader acceptance stems from tying leader
  attributes and behaviors to subordinate norms

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GLOBE Cultural Variable Results
Variable Highest Medium Lowest Ranking Ranking Ra
nking
Assertiveness Spain, U.S. Egypt, Ireland Sweden,
New Zealand
Future orientation Denmark, Canada Slovenia,
Egypt Russia, Argentina
Gender differentiation South Korea, Italy,
Brazil Sweden Denmark Egypt
Uncertainty avoidance Austria, Denmark Israel,
U.S. Russia, Hungary
Power distance Russia, Spain England,
France Demark, Netherlands
Collectivism/Societal Denmark, Hong Kong,
U.S. Greece, Hungary Singapore
In-group collectivism Egypt, China England,
France Denmark, Netherlands
Performance orientation U.S., Taiwan Sweden,
Israel Russia, Argentina
Humane orientation Indonesia, Egypt Hong Kong,
Germany, Spain Sweden
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Chap1-8 Trompenaars Cultural Dimensions

• Research produced five cultural dimensions that
  are based on relationship orientations and
  attitudes toward both time and the environment
• Universalism vs. Particularism
• Universalism - belief that ideas and practices
  can be applied everywhere in the world without
  modification
• Focus on formal rules and rely on business
  contacts
• Particularism - belief that circumstances dictate
  how ideas and practices should be applied and
  something cannot be done the same everywhere
• Focus on relationships, working things out to
  suit the parties

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Trompenaars Cultural Dimensions (cont.)

• Individualism vs. Communitarianism
• Individualism - people regard themselves as
  individuals
• Rely on individuals to make decisions
• Communitarianism - people regard themselves as
  part of a group
• Seek consultation and mutual consent before
  making decisions
• Neutral vs. Emotional
• Neutral - culture in which emotions are held in
  check
• People try not to show their feelings
• Emotional - culture in which emotions are
  expressed openly and naturally
• People smile, talk loudly, greet each other with
  enthusiasm

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Trompenaars Cultural Dimensions (cont.)

• Specific vs. Diffuse
• Specific - culture in which individuals have a
  large public space they readily share with others
  and a small private space they guard closely and
  share with only close friends and associates
• People often are open and extroverted
• Work and private life are separate
• Diffuse - culture in which both public and
  private space are similar in size and individuals
  guard their public space carefully, because entry
  into public space affords entry into private
  space as well
• People often appear indirect and introverted, and
  work and private life often are closely linked

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Trompenaars Cultural Dimensions (cont.)

• Achievement vs. Ascription
• Achievement - culture in which people are
  accorded status based on how well they perform
  their functions
• Ascription - culture in which status is
  attributed based on who or what a person is
• For example, status may be accorded on the basis
  of age, gender, or social connections
• Time
• Sequential approach to time - people do one thing
  at a time, keep appointments strictly, follow
  plans to the letter
• Synchronous approach - people do more than one
  thing at a time, appointments are approximate

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Trompenaars Cultural Dimensions (cont.)

• 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

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Trompenaars Cultural Groups
Individualism
x
x Communitarianism Specific
relationship x

x Diffuse relationship
Universalism
x
x Particularism
Neutral relationship

x Emotional relationship
x Achievement
x
x Ascription
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Trompenaars Cultural Groups
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
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Trompenaars Cultural Groups
Individualism x
x
x Communitarianism Specific
relationship Diffuse relationship
x x x
x Universalism Particular
ism x
x x
x Neutral relationship x
x
x Emotional relationship

x Achievement
x x Ascription

x x

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Trompenaars Cultural Groups
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
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Trompenaars Cultural Groups
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
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Culture Maps - Frameworks
Edward T. Hall
Geert Hofstede
Kluckhohn Strodbeck
Trompenaars
Variations in Value Orientations
Value Patterns
Value Patterns
Culture Elements

• universalism particularism
• collectivism individualism
• affectiveneutral relationships
• specificitydiffuseness
• achievement ascription
• time orientation
• Internalexternal control
• Intl. business practice

• relation to nature
• orientation to time
• belief about human nature
• mode of human activity
• relationships
• space
• Intl. business practice

• power
• risk
• individualism
• masculinity
• long term orientation
• management
• theories - practice

• time
• space
• things
• friendships
• agreements
• interpersonal
• behavior