Cross cultural management

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  • Chinese culture and American culture have quite different norms and values. The normal distribution curves for the two cultures have only limited overlap. When looking at the tail ends of the two curves, it is possible to identify stereotypical views held by Chinese about Americans and Americans about Chinese. Give some examples.
  • Workers who grew up influenced by the Great Depression, World War II, U.S. leadership in world manufacturing, the Andrews sisters, and the Berlin blockade entered the workforce from the mid-1940s to the late 1950s. They believed in the Protestant work ethic. Once hired, they tend to be loyal to an employer. They are likely to value family security and a comfortable life. Employees who entered the workforce from the 1960s to the mid-1970s were influenced by John F. Kennedy, the civil rights movement, the Beatles, and the war in Vietnam. They brought with them a large measure of the “ hippie ethic ” and existential philosophy. Quality of life is more important to them than money and possessions. They value autonomy, freedom, and equality. Those who entered the workforce from the mid-1970s through the mid-1980s reflect society ’ s return to more traditional values but with a greater emphasis on achievement and material success. They were influenced by Ronal Reagan, the defense build-up, dual-career households, and $150,000 starter homes. They are pragmatists who believe that ends can justify means. A sense of accomplishment and social recognition rank high for them. The lives of the members of Generation X have been shaped by globalization, the fall of Communism, MTV, AIDS, and computers. They value flexibility, life options, job satisfaction, family, and relationships. Money is important as an indicator of career performance, but they are willing to trade off leisure time for increases in salary, titles, security, and promotions.
  • 10 According to Hofstede, culture can be classified according to five dimensions. Power distance is the extent to which people accept unequal distributions of power. In higher power distance cultures, there is a wider gap between the powerful and the powerless. Uncertainty avoidance is the extent to which the culture tolerates ambiguity and uncertainty. High uncertainty avoidance leads to low tolerance for uncertainty and a search for absolute truths. Individualism is the extent to which either individuals or closely-knit social structures are the basis for social systems. Individualism leads to self-reliance and individual achievement. Masculinity is the extent to which assertiveness and independence are valued. High masculinity fosters high sex-role differentiation and focuses on ambition, independence, and material goods. Long-term orientation is the extent to which people focus of the past, the present, or the future. Present orientation focuses on short-term performance. Hofstede ’ s five dimensions can help managers classify cultures and predict organizational and managerial styles. But while his model provides a general ranking for a country, there may be many differences among the groups within a country.
  • Hofstede measured this cultural difference on a bipolar continuum with individualism at one end and collectivism at the other.
  • Hofstede measured this dimension on a continuum ranging from masculinity to femininity.
  • Different countries have different scores in terms of Hofstede ’ s cultural dimensions.
  • Cross cultural management

    1. 1. Cross-Cultural Management 西安电子科技大学 杜 荣
    2. 2. Chapter 1 Meanings and Dimensions of CultureOutline• 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 Cross-Cultural Management2
    3. 3. Chap1-1 Cross-cultural management Cross-Cultural Management3
    4. 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 Cross-Cultural Management4
    5. 5. Goals for Cross-Cultural ManagementCross 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 Cross-Cultural Management5
    6. 6. Chap1-2 Globalization Cross-Cultural Management6
    7. 7. GlobalizationLike it or not, globalization is here…to stay.• Most large companies have some kind of business relations with customers, companies, employees or various stake-holders in other countries…and 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 cultures…=> Cross-Cultural Management 7
    8. 8. Globalization• We do not understand people from other cultures as readily and intuitively as people from our own culture =>• 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 Cross-Cultural Management8
    9. 9. Chap1-3 Definitions of culture Cross-Cultural Management9
    10. 10. CultureDefinition: acquired knowledge that people use to interpret experience and generate social behavior.Culture forms values, creates attitude, influences behavior. Cross-Cultural Management10
    11. 11. Chap1-4 Nature of culture Cross-Cultural Management11
    12. 12. CultureCharacteristics of culture include: • Learned • Shared • Transgenerational • Symbolic • Patterned • Adaptive Cross-Cultural Management12
    13. 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. Cross-Cultural Management13
    14. 14. Chap1-5 Cultural values Cross-Cultural Management14
    15. 15. Priorities of Cultural ValuesUnited 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. Parental guidance 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. Indirectness10. Openness 10. Go-between 10. Hospitality Cross-Cultural Management15
    16. 16. Management Approaches Affected by Cultural Diversity Centralized vs. Decentralized Cultural Informal vs. formal procedures decision making Diversity Safety vs. risk High vs. low organizational loyalty Individual vs. group rewards Cooperation vs. competition Stability vs. Sort-term vs. innovation long-term horizons Cross-Cultural Management16
    17. 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 Cross-Cultural Management17
    18. 18. We will learn today • A model of culture: concentric circles • Comparing culture as a normal distribution • Values in culture • Hofstede’s cultural dimensions Cross-Cultural Management18
    19. 19. A model of culture: concentric circles Explicit artifacts and products of the society Outer layer: observable, Norms and values e.g. language, food, that guide the society buildings, art. Middle layer: helps Implicit, basic people understand how assumptions that guide people’s behavior they should behave. Inner layer: intangible, helpful for problem- solving and well interactions with other people. Cross-Cultural Management19
    20. 20. Comparing Cultures as Overlapping Normal Distribution Chinese Culture U.S. Culture ? ? Cross-Cultural Management20
    21. 21. Stereotyping from the CulturalExtremes: Brugha and Du’s research How Americans see the Chinese How Chinese see Americans • in community • individualism • avoid confrontation • face confrontation (keep in harmony) (arguments and debates) • respect for authorities • respect for achievements and seniors Chinese Culture U.S. Culture Cross-Cultural Management 21
    22. 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. Cross-Cultural Management22
    23. 23. Dominant Western Values in Workforce Career Entered the Approximate Dominant Stage Workforce Current Age Work Values 1. Protestant Mid-1940s to 50 to 65 Hard working; loyal to Work Ethic Late 1950s firm; conservative 2. Existential 1960s to 35 to 50 Nonconforming; seeks Mid-1970s autonomy; loyal to self 3. Pragmatic Mid-1970s to 35 to 35 Ambitious, hard worker; Mid-1980s loyal to career 4. Generation X Mid-1980s Under 25 Flexible, values leisure; through 1990s loyal to relationships Cross-Cultural Management23
    24. 24. Chap1-6 Dimensions of culture Cross-Cultural Management24
    25. 25. Hofstede’s Cultural Dimensions • Dutch researcher Geert Hofstede found there are four dimensions of culture. • Hofstede’s 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. Cross-Cultural Management25
    26. 26. Power Distance Uncertainty Avoidance Hofstede ’s IndividualismFive Cultural MasculinityDimensions Long-Term Orientation Cross-Cultural Management26
    27. 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 Cross-Cultural Management 27
    28. 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 continuumIndividualism Collectivism Cross-Cultural Management 28
    29. 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 continuumMasculinity Femininity Cross-Cultural Management29
    30. 30. • Long–term 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. Cross-Cultural Management30
    31. 31. Examples of Cultural Dimensions Power Uncertainty Long-term Country Individualism* Masculinity** Distance Avoidance 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
    32. 32. Additional FrameworksTwo additional perspectives, of social/cross-cultural psychologists merit attention:Markus & Kitayama: Independent & Interdependent ConstrualsTriandis: Individualism-Collectivism Cross-Cultural Management32
    33. 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) Cross-Cultural Management 33
    34. 34. Schwartz’s Values • Universalism • Benevolence • Conformity & tradition • Security • Power • Achievement • Hedonism • Stimulation • Self Direction Cross-Cultural Management34
    35. 35. Schwartz’s Value Map Openness to Self- Change Direction Universalism Self- Creativity, Social Justice, Transcendence Stimulation Freedom Equality Exciting Life Benevolence Helpfulness Hedonism Pleasure Conformity Tradition Obedience Humility Devoutness Achievement Success, Ambition Security Social Order Power Conservation Authority, Self- Wealth Enhancement Organized by motivational similarities and dissimilarities Cross-Cultural Management35
    36. 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?” Cross-Cultural Management36
    37. 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 Hofstede’s cultural dimensions. Cross-Cultural Management37
    38. 38. Preview • Integrating Hofstede’s cultural dimensions • Attitudinal dimensions of culture • Trompenaars’s cultural dimensions • Integrating culture and management Cross-Cultural Management38
    39. 39. Chap1-7 Attitudinal Dimensions of CultureWork 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 Cross-Cultural Management39
    40. 40. A Synthesis of Country Cultures Cross-Cultural Management40
    41. 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 Cross-Cultural Management41
    42. 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 Cross-Cultural Management42
    43. 43. GLOBE Cultural Variable ResultsVariable Highest Medium Lowest Ranking Ranking RankingAssertiveness Spain, U.S. Egypt, Ireland Sweden, New ZealandFuture orientation Denmark, Canada Slovenia, Egypt Russia, ArgentinaGender differentiation South Korea, Italy, Brazil Sweden Denmark EgyptUncertainty avoidance Austria, Denmark Israel, U.S. Russia, HungaryPower distance Russia, Spain England, France Demark, NetherlandsCollectivism/Societal Denmark, Hong Kong, U.S. Greece, Hungary SingaporeIn-group collectivism Egypt, China England, France Denmark, NetherlandsPerformance orientation U.S., Taiwan Sweden, Israel Russia, Argentina Humane orientation Indonesia, Egypt Hong Kong, Germany, Spain Sweden
    44. 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 Cross-Cultural Management44
    45. 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 Cross-Cultural Management 45
    46. 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 Cross-Cultural Management46
    47. 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 Cross-Cultural Management47
    48. 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 Cross-Cultural Management48
    49. 49. Trompenaars’ Cultural Groups Anglo clusterRelationship United States United KingdomIndividualism x xCommunitarianismSpecific relationship x xDiffuse relationshipUniversalism x xParticularismNeutral relationship xEmotional relationship xAchievement x xAscription Cross-Cultural Management 49
    50. 50. Trompenaars’ Cultural Groups Asian clusterRelationship Japan China Indonesia Hong Kong SingaporeIndividualismCommunitarianism x x x x xSpecific relationshipDiffuse relationship x x x x xUniversalismParticularism x x x x xNeutral relationship x x x xEmotional relationship xAchievementAscription x x x x x Cross-Cultural Management 50
    51. 51. Trompenaars’ Cultural Groups Latin American clusterRelationship Argentina Mexico Venezuela BrazilIndividualism x x xCommunitarianismSpecific relationshipDiffuse relationship x x x xUniversalismParticularism x x x xNeutral relationship x x xEmotional relationship xAchievement x xAscription x x Cross-Cultural Management 51
    52. 52. Trompenaars’ Cultural Groups Latin-European clusterRelationship France Belgium Spain ItalyIndividualism xCommunitarianism x x xSpecific relationship x xDiffuse relationship x xUniversalism x x xParticularism xNeutral relationship xEmotional relationship x x xAchievement xAscription x x x Cross-Cultural Management 52
    53. 53. Trompenaars’ Cultural Groups Germanic clusterRelationship Austria Germany Switzerland CzechoslovakiaIndividualism xCommunitarianism x x xSpecific relationship x x xDiffuse relationship xUniversalism x x x xParticularismNeutral relationship x xEmotional relationship x xAchievement x x xAscription x Cross-Cultural Management 53
    54. 54. Culture Maps - Frameworks Edward Geert Trompenaar Kluckhohn & T. Hall Hofstede s Strodbeck Culture Value Value VariationsElements Pattern Patterns in Value s • universalism– Orientation particularism s • collectivism– • relation to• time • power individualism nature• space • risk • affective–neutral • orientation to• things • individualism relationships time• friendships • masculinity • specificity– • belief about• • long term diffuseness human natureagreements orientation • achievement– • mode of human & & ascriptioninterpersonal management • time orientation activity behavior theories - •Internal–external • relationships practice control • space & & Int’l. business practice Int’l. business practice 54 Cross-Cultural Management

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