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Chapter 3: Ethics and Social Resonsibility

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Title: Chapter 3: Ethics and Social Resonsibility


1
PowerPoint slides by R. Dennis Middlemist,
Professor of Management, Colorado State University
2
Additional Internet Sites
  • http//dir.yahoo.com/regional/countries/
  • http//globaledge.msu.edu/ibrd/ibrd.asp
  • http//www.ciesin.org/IC/wbank/wtables.html
  • http//lcweb2.loc.gov/frd/cs/cshome.html
  • http//www.atlapedia.com/index.html
  • http//www.nationmaster.com/
  • http//www.census.gov/foreign-trade/faq/sb/sb0008.
    html
  • http//www.usitc.gov/tata/index.htm
  • http//www.trade.gov/td/tic/tariff/resources.htm
  • http//unstats.un.org/unsd/cr/registry/
  • http//www.census.gov/foreign-trade/statistics/pro
    duct/enduse/exports/index.html
  • http//library.uncg.edu/depts/docs/international/i
    ntermkt.html

3
Understanding Culture
Individual
Group
Personality
Culture
Manners Rituals Symbols Artifacts Customs Behavior
Rights Traditions
Beliefs Values Assumptions Expectations
Norms Values Expectations
4
Perspectives on Culture
  • Interaction with our surroundings (and
    organizational systems)
  • Hofstede
  • Work values and roles (interaction with the
    organization)
  • Ronen, Kraut and Shenkar
  • Interpersonal relationships
  • Trompenaar

5
The Nature of Culture (cont.)
  • Values in Culture
  • Values
  • Basic convictions that people have regarding what
    is right and wrong, good and bad, important and
    unimportant
  • Research has identified both differences and
    similarities in values of different cultural
    groups
  • Values in transition
  • Changes taking place in managerial values as a
    result of both culture and technology
  • Research on Japanese managers
  • Individualism on the rise in Japan

6
Management Approaches Affected by Cultural
Diversity
Cultural Diversity
7
Nature of Culture
Learned Culture is acquired by learning and
experience Shared People as a member of a group,
organization ,or society share culture Transgenera
tional Culture is cumulative, passed down from
generation to generation Symbolic Culture is
based on the human capacity to symbolize Patterned
Culture has structure and is integrated Adaptive
Culture is based on the human capacity to change
or adapt
8
Value Priorities
United States Japan
Arab Countries
1. Freedom 1. Belonging 1. Family
Security 2. Independence 2. Group Harmony
2. Family Harmony 3. Self-Reliance 3.
Collectiveness 3. Paternalism 4.
Equality 4. Age/Seniority 4. Age 5.
Individualism 5. Group Consensus 5.
Authority 6. Competition 6. Cooperation
6. Compromise 7. Efficiency 7.
Quality 7. Devotion 8. Time
8. Patience 8. Patience 9. Directness
9. Indirectness 9. Indirectness 10.
Openness 10. Go-between 10. Hospitality
Values- basic convictions that people have
regarding what is right and wrong, good and
bad, important or unimportant
9
The Nature of Culture
  • Culture
  • Acquired knowledge that people use to interpret
    experience and generate social behavior
  • forms values
  • creates attitudes
  • influences behavior.

10
Characteristics of Culture
Learned
Shared
Adaptive
Culture
Transgenerational
Patterned
Symbolic
11
Priorities of Cultural Values
Table 4-1 Priorities of Cultural Values United
States, Japan, and Arab Countries
United States Japan Arab Countries
  1. Freedom
  2. Independence
  3. Self-reliance
  4. Equality
  5. Individualism
  6. Competition
  7. Efficiency
  8. Time
  9. Directness
  10. Openness
  1. Belonging
  2. Group harmony
  3. Collectiveness
  4. Age/seniority
  5. Group consensus
  6. Cooperation
  7. Quality
  8. Patience
  9. Indirectness
  10. Go-between
  1. Family security
  2. Family harmony
  3. Parental guidance
  4. Age
  5. Authority
  6. Compromise
  7. Devotion
  8. Patience
  9. Indirectness
  10. Hospitality

Note 1 represents the most important cultural
value, 10 the least.
Adapted from Table 4-1 Priorities of Cultural
Values United States, Japan, and Arab Countries
12
How Culture Affects Managerial Approaches
Centralized Decision Making
Decentralized Decision Making
VS.
  • 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.

13
How Culture Affects Managerial Approaches
VS.
Safety
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.

14
How Culture Affects Managerial Approaches
Individual Rewards
Group Rewards
VS.
  • 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 on.

15
How Culture Affects Managerial Approaches
Informal Procedures
Formal Procedures
VS.
  • In some societies, much is accomplished through
    informal means. In others, formal procedures are
    set forth and followed rigidly.

16
How Culture Affects Managerial Approaches
High Organizational Loyalty
Low Organizational Loyalty
VS.
  • 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.

17
How Culture Affects Managerial Approaches
VS.
Cooperation
Competition
  • Some societies encourage cooperation between
    their people. Others encourage competition
    between their people.

18
How Culture Affects Managerial Approaches
Short-term Horizons
Long-term horizons
VS.
  • Some cultures 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 development.

19
How Culture Affects Managerial Approaches
Stability
Innovation
VS.
  • The culture of some countries encourages
    stability and resistance to change. The culture
    of others puts high value on innovation and
    change.

20
A Model of Culture
The explicit artifacts and products of the society
The norms and values that guide the society
The implicit, basic assumptions that guide
peoples behavior
Adapted from Figure 41 A Model of Culture
21
Values in Culture
  • Values
  • Basic convictions that people have
  • right and wrong
  • good and bad
  • important and unimportant
  • Learned from the culture in which the individual
    is reared
  • Influence ones behavior
  • Differences in cultural values may result in
    varying management practices

22
Values in Culture
French culture
U.S. culture
Adapted from Figure 42 Comparing Cultures as
Overlapping Normal Distributions
23
Values in Culture
French culture
U.S. culture
How the Americans see the French
How the French see the Americans
  • arrogant
  • flamboyant
  • hierarchical
  • emotional
  • naïve
  • aggressive
  • unprincipled
  • workaholic

Adapted from Figure 43 Stereotyping from the
Cultural Extremes
24
Values in Culture
Table 4-2 U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples
of Management Function Affected
Individuals can influence the future (when there
is a will there is a way).
Life follows a preordained course, and, human
action is determined by the will of God.
Planning and scheduling
Individuals should be realistic in their
aspirations.
Ideals are to be pursued regardless of what is
reasonable.
Goal setting and career development
We must work hard to accomplish our objectives
(Puritan ethic).
Hard work is not the only prerequisite for
success. Wisdom luck, and time also are required.
Motivation and reward system
Adapted from Table 4-2 U.S. Values and Possible
Alternatives
25
Values in Culture
Table 4-2 U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples
of Management Function Affected
A primary obligation of an employee is to the
organization.
Individual employees have a primary obligation to
their family and friends.
Loyalty, commitment, and motivation
Employees can be removed if they do not perform
well.
The removal of an employee from a position
involves a great loss of prestige and will rarely
be done.
Promotion
Company information should be available to anyone
who needs it within the organization.
Withholding information to gain or maintain power
is acceptable.
Organization, communication, and managerial style
Adapted from Table 4-2 U.S. Values and Possible
Alternatives
26
Values in Culture
Table 4-2 U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples
of Management Function Affected
Competition stimulates high performance.
Competition leads to unbalances and disharmony.
Career development and marketing
What works is important..
Symbols and the process are more important than
the end point.
Communication, planning, and quality control.
Adapted from Table 4-2 U.S. Values and Possible
Alternatives
27
Values in Culture
  • There is a reasonably strong relationship between
    the level of success achieved by managers and
    their personal values.
  • Value patterns predict managerial success and
    could be used in selection and placement
    decisions.
  • Although there are country differences in the
    relationships between values and success,
    findings across four countries (U.S., Japan,
    Australia, India) are quite similar.
  • Values of more successful managers appear to
    favor
  • Pragmatic, dynamic, achievement-oriented
  • Active role in interaction with others
  • Values of less successful managers tend toward
  • Static and passive values
  • Relatively passive roles in interacting with
    others

28
Hofstedes Cultural Dimensions
  • Extent to which less powerful members of
    institutions and organizations accept that power
    is distributed unequally
  • High power distance countries people blindly
    obey the orders of their superiors, centralized
    and tall organization structures
  • Low power distance countries flatter and
    decentralized organization structures, smaller
    ratio of supervisors

Power Distance
29
Hofstedes Cultural Dimensions
  • Extent to which people feel threatened by
    ambiguous situations and have created beliefs and
    institutions that try to avoid such situations
  • High uncertainty avoidance countries people have
    high need for security, strong belief in experts
    and their knowledge, structured organizational
    activities, more written rules, less risk taking
    by managers
  • Low uncertainty avoidance countries people are
    more willing to accept risks associated with the
    unknown, less structured organizational
    activities, fewer written rules, more risk taking
    by managers, higher employee turnover, more
    ambitious employees

Power Distance
Uncertainty Avoidance
30
Hofstedes Cultural Dimensions
  • Individualism Tendency of people to look after
    themselves and their immediate family only
  • Countries high in individualism tend to be
    wealthier, support protestant work ethic, greater
    individual initiative, promotions based on market
    value
  • Collectivism Tendency of people to belong to
    groups or collectives and to look after each
    other in exchange for loyalty
  • Countries high in collectivism tend to be
    poorer, less support for protestant work ethic,
    less individual initiative, promotions based on
    seniority

Power Distance
Uncertainty Avoidance
Individualism/Collectivism
31
Hofstedes Cultural Dimensions
  • Masculinity a culture in which the dominant
    social values are success, money and things
  • Countries high in masculinity great importance
    on earnings, recognition, advancement, challenge,
    and wealth. High job stress.
  • Femininity a culture in which the dominate
    social values are caring for others and the
    quality of life
  • Countries high in femininity great importance on
    cooperation, friendly atmosphere, employment
    security, group decision making, and living
    environment. Low stress and more employee freedom.

Power Distance
Uncertainty Avoidance
Individualism/Collectivism
Masculinity/ Femininity
32
Attitudinal Dimensions of Culture
  • Work value and attitude similarities
  • Smallest space analysis (SSA) yields clusters of
    countries similar to each other
  • Anglo-American (U.S., U.K., Australia)
  • Nordic (Norway, Finland, Denmark)
  • South American (Venezuela, Mexico, Chile)
  • Latin European (France, Belgium)
  • Germanic (Germany, Austria, Switzerland)
  • Other researchers have found other clusters,
    depending on variables used

33
Synthesis of Country Clusters
Adapted from Figure 48 A Synthesis of Country
Clusters
34
Trompenaars Cultural Dimensions
VS.
Universalism
Particularism
  • Universalism belief that ideas and practices can
    be applied everywhere in the world without
    modification
  • In countries with high universalism, focus is
    more on formal rules, business contracts are
    adhered to closely, people believe a deal is a
    deal
  • Includes Canada, U.S., Germany, U.K.,
    Netherlands, France, Japan, Singapore, Thailand,
    and Hong Kong.

35
Trompenaars Cultural Dimensions
VS.
Universalism
Particularism
  • Particularism belief that circumstances dictate
    how ideas and practices should be applied and
    something cannot be done the same everywhere
  • In countries with high particularism, legal
    contracts often modified, well-acquainted people
    often change the way in which deals are executed
  • Includes China and South Korea

36
Trompenaars Cultural Dimensions
VS.
Individualism
Communitarianism
  • Individualism people regard themselves as
    individuals
  • In countries high on individualism, people stress
    personal and individual matters, and are more
    likely to make negotiated decisions on the spot
    by a representative, achieve things alone and
    assume great personal responsibility
  • Includes Canada, Thailand, U.K., U.S.,
    Netherlands, France, Japan, China, Singapore, and
    Hong Kong

37
Trompenaars Cultural Dimensions
VS.
Individualism
Communitarianism
  • Communitarianism people regard themselves as
    part of a group
  • In countries high on communitarianism, people
    value group-related issues, refer decisions to
    committees, achieve things in groups and jointly
    assume responsibility
  • Includes Malaysia and Korea

38
Trompenaars Cultural Dimensions
VS.
Neutral
Emotional
  • Neutral culture in which emotions are held in
  • In high neutral culture countries, people try not
    to show their feelings, act stoically and
    maintain their composure
  • Includes Japan and the U.K.
  • Emotional culture in which emotions are
    expressed openly and naturally
  • In high emotional culture countries, people smile
    a great deal, talk loudly when excited and greet
    each other with enthusiasm
  • Includes Mexico, the Netherlands and Switzerland

39
Trompenaars Cultural Dimensions
VS.
Specific
Diffuse
  • Specific culture individuals have a large public
    space shared with others and a small private
    space they guard closely and share only with
    close friends and associates
  • In high specific cultures, people are more open
    and extroverted, and there is a strong separation
    of work and private life
  • Includes Austria, U.K., U.S. and Switzerland

40
Trompenaars Cultural Dimensions
VS.
Specific
Diffuse
  • Diffuse culture public and private space are
    similar in size, individuals guard public space
    carefully because it is shared with private space
  • In high diffuse cultures, people often appear to
    be indirect and introverted, and work and private
    life often are closely linked
  • Includes Venezuela, China, and Spain

41
Trompenaars Cultural Dimensions
VS.
Achievement
Ascription
  • Achievement culture status is accorded based on
    how well people perform their functions
  • Includes Austria, U.S., Switzerland and the U.K.
  • Ascription culture status is based on who or
    what a person is
  • Includes Venezuela, Indonesia, and China

42
Trompenaars Cultural Dimensions
Time
  • Sequential approach
  • People do only one activity at a time, keep
    appointments strictly, prefer to follow plans as
    laid out (United States)
  • Synchronous approach
  • People tend to multi-task, view appointments as
    approximate, schedules are seen as subordinate to
    relationships (France, and Mexico)
  • Present oriented/future oriented
  • Future is more important (U.S., Italy, and
    Germany
  • Present is more important (Venezuela, Indonesia,
    and Spain
  • All three time periods equally important (France
    and Belgium)

43
Variations in Time Orientation
44
Trompenaars Cultural Dimensions
The Environment
  • Inner-directed people believe in controlling
    outcomes
  • Includes U.S., Switzerland, Australia, Belgium,
    Indonesia, Hong Kong, Greece, Singapore, and
    Japan
  • Outer-directed people believe on letting things
    take their own course
  • Includes China and many other Asian countries

Related to psychological construct L.O.C.
45
GLOBE Project
  • Multi-country study and evaluation of cultural
    attributes and leadership behavior
  • 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

46
GLOBE Project
Table 4-6 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
Adapted from Table 4-6 GLOBE Cultural Variable
Results
47
Other Cultural Dimensions
  • Institutional Collectivism
  • In-group Collectivism
  • Gender Egalitarianism
  • Assertiveness
  • Power Distance
  • Performance Orientation
  • Future Orientation
  • Uncertainty Avoidance
  • Humane Orientation

48
Variations in Human Nature
49
(No Transcript)
50
Variations in Relations to Nature
51
Variations in Activities
52
Variations in Relationships
53
Variations in Spacial Orientation
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