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Cross-Cultural Management

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Title: Cross-Cultural Management


1
Cross-Cultural Management
???????? ? ?
2
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

3
Chap1-1
Cross-cultural management
4
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

5
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

6
Chap1-2
  • Globalization

7
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

8
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

9
Chap1-3
  • Definitions of culture

10
Culture
  • Definition acquired knowledge that people use to
    interpret experience and generate social
    behavior.
  • Culture forms values, creates attitude,
    influences behavior.

11
Chap1-4
  • Nature of culture

12
Culture
  • Characteristics of culture include
  • Learned
  • Shared
  • Transgenerational
  • Symbolic
  • Patterned
  • Adaptive

13
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.

14
Chap1-5
  • Cultural values

15
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
16
Management Approaches Affected by Cultural
Diversity
Cultural Diversity
17
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

18
We will learn today
  • A model of culture concentric circles
  • Comparing culture as a normal distribution
  • Values in culture
  • Hofstedes cultural dimensions

19
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.
20
Comparing Cultures as Overlapping Normal
Distribution
Chinese Culture
U.S. Culture
?
?
21
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
22
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.

23
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
24
Chap1-6
  • Dimensions of culture

25
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.

26
  • Power Distance
  • Uncertainty Avoidance
  • Individualism
  • Masculinity
  • Long-Term Orientation

Hofstedes Five Cultural Dimensions
27
  • 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

28
  • 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
29
  • 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
30
  • 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.

31
Examples of Cultural Dimensions
A low score is synonymous with collectivism
A low score is synonymous with masculinity A
low score is synonymous with a short-term
orientation
32
Additional Frameworks
Two additional perspectives, of
social/cross-cultural psychologists merit
attention Markus Kitayama Independent
Interdependent Construals Triandis
Individualism-Collectivism
33
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)

34
Schwartzs Values
  • Universalism
  • Benevolence
  • Conformity tradition
  • Security
  • Power
  • Achievement
  • Hedonism
  • Stimulation
  • Self Direction

35
Schwartzs Value Map
36
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?

37
  • 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.

38
Preview
  • Integrating Hofstedes cultural dimensions
  • Attitudinal dimensions of culture
  • Trompenaarss cultural dimensions
  • Integrating culture and management

39
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

40
A Synthesis of Country Cultures
41
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

42
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

43
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
44
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

45
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

46
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

47
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

48
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

49
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
50
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
51
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

52
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
53
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
54
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
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