Chapter 2Culture and MultinationalManagement        © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copi...
Learning Objectives•• Define culture and understand the basic components    Define culture and understand the basic compon...
Learning Objectives•• Understand the Hofstede, GLOBE, and 7d models.   Understand the Hofstede, GLOBE, and 7d models.•• Ap...
What is Culture?•• Pervasive and shared beliefs, norms, values, and   Pervasive and shared beliefs, norms, values, and   s...
What is Culture?          (cont.)•• Cultural beliefs: represent our understandings about    Cultural beliefs: represent ou...
Culture: Front Stage & Back          Stage•• Front stage of culture: easily observable aspect of   Front stage of culture:...
Three Levels of Culture1. National culture: the dominant culture within the1. National culture: the dominant culture withi...
Three Levels of Culture          (cont.)3. Occupational and organizational culture3. Occupational and organizational cultu...
Exhibit 2.1: Three Levels ofCulture   © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicat...
Cultural Differences and         Basic Values•• Three diagnostic models to aid the multinational   Three diagnostic models...
Hofstede’s Model          of National Culture•• Five dimensions of basic cultural values   Five dimensions of basic cultur...
Hofstede’s Model Applied to         Organizations and         Management•• Management practices considered in the discussi...
Hofstede’s Model Applied to         Organizations2. Leadership styles2. Leadership styles3. Motivational assumptions3. Mot...
Power Distance•• Power distance concerns how cultures deal with    Power distance concerns how cultures deal with   inequa...
Power Distance (cont.)•• High power distance countries have norms, values,   High power distance countries have norms, val...
Exhibit 2.2: ManagerialImplications for PowerDistance   © 2011 Cengage Learning. All Rights Reserved. May not be scanned, ...
Uncertainty Avoidance•• Norms, values, and beliefs regarding tolerance for   Norms, values, and beliefs regarding toleranc...
Exhibit 2.3: ManagerialImplications of UncertaintyAvoidance   © 2011 Cengage Learning. All Rights Reserved. May not be sca...
Individualism/Collectivism•• Focus is on the relationship between the individual and    Focus is on the relationship betwe...
Individualism/Collectivism•• Collectivist countries have norms, values, and beliefs   Collectivist countries have norms, v...
Exhibit 2.4: ManagerialImplications ofIndividualism/Collectivism   © 2011 Cengage Learning. All Rights Reserved. May not b...
Masculinity•• Tendency of a culture to support traditional masculine   Tendency of a culture to support traditional mascul...
Exhibit 2.5: ManagerialImplications of Masculinity   © 2011 Cengage Learning. All Rights Reserved. May not be scanned, cop...
Long-Term (Confucian)          Orientation•• Orientation towards time that values patience.   Orientation towards time tha...
Long-Term (Confucian)            Orientation••   Eastern cultures rank highest on long-term orientation.     Eastern cultu...
Short-term Orientation•• Western cultures, which tend to have short-term    Western cultures, which tend to have short-ter...
Long-Term Orientation vs.          Short-Term Orientation•• The difference is apparent in the goals companies set    The d...
Exhibit 2.6: ManagerialImplications of Long-term(Confucian) Orientation   © 2011 Cengage Learning. All Rights Reserved. Ma...
GLOBE National Culture         Framework•• GLOBE (Global Leadership and Organizational   GLOBE (Global Leadership and Orga...
Performance Orientation•• Performance Orientation – refers to the degree to    Performance Orientation – refers to the deg...
Exhibit 2.8: ManagementImplication of PerformanceOrientation   © 2011 Cengage Learning. All Rights Reserved. May not be sc...
Humane Orientation•• Humane Orientation – an indication of the extent to which    Humane Orientation – an indication of th...
Exhibit 2.9: ManagementImplications of HumaneOrientation   © 2011 Cengage Learning. All Rights Reserved. May not be scanne...
7d Cultural Dimensions Model•• Builds on traditional anthropological approaches to   Builds on traditional anthropological...
7d Cultural Dimensions Model•• Dimensions that deal with relationships include:   Dimensions that deal with relationships ...
7d Cultural Dimension Model         (cont.)•• Dimensions dealing with how a culture manages time   Dimensions dealing with...
Exhibit 2.11: Summary of 7dModel and Issues   © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or ...
Universalism vs. Particularism•• Pertain to how people treat each other based on rules   Pertain to how people treat each ...
Exhibit 2.12: ManagerialImplications ofUniversalism/Particularism   © 2011 Cengage Learning. All Rights Reserved. May not ...
Individualism vs. Collectivism•• Similar distinctions to Hofstede’s view    Similar distinctions to Hofstede’s view•• Coll...
Exhibit 2.13: ManagerialImplications ofIndividualism/Collectivism   © 2011 Cengage Learning. All Rights Reserved. May not ...
Neutral vs. Affective•• Concerns acceptability of expressing emotions   Concerns acceptability of expressing emotions•• Ne...
Exhibit 2.14: ManagerialImplications of Neutral vs.Affective   © 2011 Cengage Learning. All Rights Reserved. May not be sc...
Specific vs. Diffuse•• Extent to which an individual’s life is involved in work    Extent to which an individual’s life is...
Exhibit 2.15: ManagerialImplications of Specific vs.Diffuse   © 2011 Cengage Learning. All Rights Reserved. May not be sca...
Achievement vs. Ascription•• Manner in which society gives status   Manner in which society gives status•• Achievement -- ...
Exhibit 2.16: ManagerialImplications of Achievementvs. Ascription   © 2011 Cengage Learning. All Rights Reserved. May not ...
Time OrientationTime Horizon: How cultures deal with the past, presentTime Horizon: How cultures deal with the past, prese...
Exhibit 2.17: ManagerialImplications of Time Horizon   © 2011 Cengage Learning. All Rights Reserved. May not be scanned, c...
Internal vs. External Control•• Concerned with beliefs regarding control of one’s fate    Concerned with beliefs regarding...
Exhibit 2.18: ManagerialImplications of Internal vs.External   © 2011 Cengage Learning. All Rights Reserved. May not be sc...
Caveats and Cautions•• Stereotyping: assumes that all people within one   Stereotyping: assumes that all people within one...
Conclusion•• Chapter provides understanding of various ways to   Chapter provides understanding of various ways to   under...
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Chapter 2

  1. 1. Chapter 2Culture and MultinationalManagement © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  2. 2. Learning Objectives•• Define culture and understand the basic components Define culture and understand the basic components of culture. of culture.•• Identify instances of cultural stereotyping and Identify instances of cultural stereotyping and ethnocentrism. ethnocentrism.•• Understand how various levels of culture influence Understand how various levels of culture influence multinational operations. multinational operations. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  3. 3. Learning Objectives•• Understand the Hofstede, GLOBE, and 7d models. Understand the Hofstede, GLOBE, and 7d models.•• Appreciate the complex differences among cultures Appreciate the complex differences among cultures and use these differences for building better and use these differences for building better organizations. organizations.•• Recognize the complexity of understanding new Recognize the complexity of understanding new cultures and the dangers of stereotyping and cultural cultures and the dangers of stereotyping and cultural paradoxes. paradoxes. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  4. 4. What is Culture?•• Pervasive and shared beliefs, norms, values, and Pervasive and shared beliefs, norms, values, and symbols that guide everyday life. symbols that guide everyday life.•• Cultural norms: both prescribe and proscribe behaviors Cultural norms: both prescribe and proscribe behaviors •• What we should do and what we cannot do. What we should do and what we cannot do.•• Cultural values: what is good/beautiful/holy and what Cultural values: what is good/beautiful/holy and what are legitimate goals for life. are legitimate goals for life. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  5. 5. What is Culture? (cont.)•• Cultural beliefs: represent our understandings about Cultural beliefs: represent our understandings about what is true. what is true.•• Cultural symbols, stories, and rituals: communicate the Cultural symbols, stories, and rituals: communicate the norms, values, and beliefs of a society or a group to its norms, values, and beliefs of a society or a group to its members. members.•• Culture is pervasive in society: affects all aspects of Culture is pervasive in society: affects all aspects of life. life.•• Culture is shared: similarity in values, beliefs, norms. Culture is shared: similarity in values, beliefs, norms. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  6. 6. Culture: Front Stage & Back Stage•• Front stage of culture: easily observable aspect of Front stage of culture: easily observable aspect of culture culture •• E.g., Japanese executive bows or North American E.g., Japanese executive bows or North American robust handshake. robust handshake.•• Back stage of culture: only insiders or members of the Back stage of culture: only insiders or members of the culture understand other aspects of culture culture understand other aspects of culture •• E.g., Japanese saying “it’s difficult” and twisting E.g., Japanese saying “it’s difficult” and twisting head to one side really means it’s impossible. head to one side really means it’s impossible. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  7. 7. Three Levels of Culture1. National culture: the dominant culture within the1. National culture: the dominant culture within the political boundaries of the nation-state. political boundaries of the nation-state.2. Business culture: norms, values, and beliefs that2. Business culture: norms, values, and beliefs that pertain to all aspects of doing business in a culture. pertain to all aspects of doing business in a culture. – Tells people the correct, acceptable ways to – Tells people the correct, acceptable ways to conduct business in a society. conduct business in a society. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  8. 8. Three Levels of Culture (cont.)3. Occupational and organizational culture3. Occupational and organizational culture •• Occupational culture: the norms, values, beliefs, Occupational culture: the norms, values, beliefs, and expected ways of behaving for people in the and expected ways of behaving for people in the same occupational group. same occupational group. •• Organizational culture: the set of important Organizational culture: the set of important understandings that members of an organization understandings that members of an organization share. share. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  9. 9. Exhibit 2.1: Three Levels ofCulture © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  10. 10. Cultural Differences and Basic Values•• Three diagnostic models to aid the multinational Three diagnostic models to aid the multinational manager: manager: •• Hofstede model of national culture Hofstede model of national culture •• Global Leadership and Organizational Behavior Global Leadership and Organizational Behavior Effectiveness (GLOBE) project Effectiveness (GLOBE) project •• 7d culture model 7d culture model © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  11. 11. Hofstede’s Model of National Culture•• Five dimensions of basic cultural values Five dimensions of basic cultural values •• Power distance Power distance •• Uncertainty avoidance Uncertainty avoidance •• Individualism Individualism •• Masculinity Masculinity •• Long-term orientation Long-term orientation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  12. 12. Hofstede’s Model Applied to Organizations and Management•• Management practices considered in the discussion of Management practices considered in the discussion of Hofstede’s model include: Hofstede’s model include:•• 1. Human resources management 1. Human resources management •• Management selection Management selection •• Training Training •• Evaluation and promotion Evaluation and promotion •• Remuneration Remuneration © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  13. 13. Hofstede’s Model Applied to Organizations2. Leadership styles2. Leadership styles3. Motivational assumptions3. Motivational assumptions4. Decision making and organizational design4. Decision making and organizational design5. Strategy5. Strategy © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  14. 14. Power Distance•• Power distance concerns how cultures deal with Power distance concerns how cultures deal with inequality and focuses on inequality and focuses on •• Norms that tell superiors (e.g., bosses) how much Norms that tell superiors (e.g., bosses) how much they can determine the behavior of their they can determine the behavior of their subordinates subordinates •• Values and beliefs that superiors and subordinates Values and beliefs that superiors and subordinates are fundamentally different kinds of people are fundamentally different kinds of people © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  15. 15. Power Distance (cont.)•• High power distance countries have norms, values, High power distance countries have norms, values, and beliefs such as: and beliefs such as: •• Inequality is fundamentally good. Inequality is fundamentally good. •• Everyone has a place: some are high, some are Everyone has a place: some are high, some are low. low. •• Most people should be dependent on a leader. Most people should be dependent on a leader. •• The powerful are entitled to privileges. The powerful are entitled to privileges. •• The powerful should not hide their power. The powerful should not hide their power. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  16. 16. Exhibit 2.2: ManagerialImplications for PowerDistance © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  17. 17. Uncertainty Avoidance•• Norms, values, and beliefs regarding tolerance for Norms, values, and beliefs regarding tolerance for ambiguity: ambiguity: •• Conflict should be avoided. Conflict should be avoided. •• Deviant people and ideas should not be tolerated. Deviant people and ideas should not be tolerated. •• Laws are very important and should be followed. Laws are very important and should be followed. •• Experts and authorities are usually correct. Experts and authorities are usually correct. •• Consensus is important. Consensus is important. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  18. 18. Exhibit 2.3: ManagerialImplications of UncertaintyAvoidance © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  19. 19. Individualism/Collectivism•• Focus is on the relationship between the individual and Focus is on the relationship between the individual and the group. the group.•• Countries high on individualism have norms, values, Countries high on individualism have norms, values, and beliefs such as: and beliefs such as: •• People are responsible for themselves. People are responsible for themselves. •• Individual achievement is ideal. Individual achievement is ideal. •• People need not be emotionally dependent on People need not be emotionally dependent on organizations or groups. organizations or groups. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  20. 20. Individualism/Collectivism•• Collectivist countries have norms, values, and beliefs Collectivist countries have norms, values, and beliefs such as: such as: •• One’s identity is based on group membership. One’s identity is based on group membership. •• Group decision making is best. Group decision making is best. •• Groups protect individuals in exchange for their Groups protect individuals in exchange for their loyalty to the group. loyalty to the group. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  21. 21. Exhibit 2.4: ManagerialImplications ofIndividualism/Collectivism © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  22. 22. Masculinity•• Tendency of a culture to support traditional masculine Tendency of a culture to support traditional masculine orientation. orientation.•• High masculinity countries have beliefs such as: High masculinity countries have beliefs such as: •• Gender roles should be clearly distinguished. Gender roles should be clearly distinguished. •• Men are assertive and dominant. Men are assertive and dominant. •• Machismo/exaggerated maleness in men is good. Machismo/exaggerated maleness in men is good. •• Men should be decisive. Men should be decisive. •• Work takes priority over other duties. Work takes priority over other duties. •• Advancement, success, and money are important. Advancement, success, and money are important. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  23. 23. Exhibit 2.5: ManagerialImplications of Masculinity © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  24. 24. Long-Term (Confucian) Orientation•• Orientation towards time that values patience. Orientation towards time that values patience. •• Managers are selected based on the fit of their Managers are selected based on the fit of their personal and educational characteristics. personal and educational characteristics. •• A prospective employee’s particular skills have less A prospective employee’s particular skills have less importance in the hiring decision. importance in the hiring decision. •• Training and socialization for a long-term Training and socialization for a long-term commitment to the organization compensate for any commitment to the organization compensate for any initial weaknesses in work-related skills. initial weaknesses in work-related skills. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  25. 25. Long-Term (Confucian) Orientation•• Eastern cultures rank highest on long-term orientation. Eastern cultures rank highest on long-term orientation.•• Value synthesis in organizational decisions. Value synthesis in organizational decisions.•• Belief in substantial savings. Belief in substantial savings.•• Willingness to invest. Willingness to invest.•• Acceptance of slow results. Acceptance of slow results.•• Persistence to achieve goals. Persistence to achieve goals.•• Sensitivity to social relationships. Sensitivity to social relationships.•• Pragmatic adaptation. Pragmatic adaptation. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  26. 26. Short-term Orientation•• Western cultures, which tend to have short-term Western cultures, which tend to have short-term orientations, value logical analysis in their approach to orientations, value logical analysis in their approach to organizational decisions. organizational decisions.•• Designed and managed purposefully to respond to Designed and managed purposefully to respond to immediate pressures from the environment. immediate pressures from the environment.•• Often use quick layoffs of “excess” employees to Often use quick layoffs of “excess” employees to adjust to shrinking demand for products. adjust to shrinking demand for products. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  27. 27. Long-Term Orientation vs. Short-Term Orientation•• The difference is apparent in the goals companies set The difference is apparent in the goals companies set in strategic decision making. in strategic decision making.•• Managers in countries (short-term) want immediate Managers in countries (short-term) want immediate financial returns, and fast, measurable success (e.g., financial returns, and fast, measurable success (e.g., U.S.). U.S.).•• Managers in countries (long-term) prioritize growth and Managers in countries (long-term) prioritize growth and long-term paybacks. long-term paybacks.•• Long time horizons allow managers to experiment, seek Long time horizons allow managers to experiment, seek success by developing “game plans” as they go along. success by developing “game plans” as they go along. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  28. 28. Exhibit 2.6: ManagerialImplications of Long-term(Confucian) Orientation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  29. 29. GLOBE National Culture Framework•• GLOBE (Global Leadership and Organizational GLOBE (Global Leadership and Organizational Behavior Studies) involves 170 researchers who Behavior Studies) involves 170 researchers who collected data from 17,000 managers in 62 countries collected data from 17,000 managers in 62 countries•• Seven dimensions of GLOBE are similar to Hofstede Seven dimensions of GLOBE are similar to Hofstede•• Unique dimensions Unique dimensions •• Performance orientation Performance orientation •• Humane orientation Humane orientation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  30. 30. Performance Orientation•• Performance Orientation – refers to the degree to Performance Orientation – refers to the degree to which the society encourages societal members to which the society encourages societal members to innovate, to improve their performance, and to strive innovate, to improve their performance, and to strive for excellence for excellence •• E.g., the United States and Singapore have high E.g., the United States and Singapore have high scores while Russia and Greece have low scores on scores while Russia and Greece have low scores on the dimension. the dimension. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  31. 31. Exhibit 2.8: ManagementImplication of PerformanceOrientation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  32. 32. Humane Orientation•• Humane Orientation – an indication of the extent to which Humane Orientation – an indication of the extent to which individuals are expected to be fair, altruistic, caring, and individuals are expected to be fair, altruistic, caring, and generous generous •• Need for belongingness and affiliation is emphasized more Need for belongingness and affiliation is emphasized more than material possessions, self-fulfillment, and pleasure. than material possessions, self-fulfillment, and pleasure. •• Less humane-oriented societies are more likely to value Less humane-oriented societies are more likely to value self-interest and self-gratification. self-interest and self-gratification. •• E.g., Malaysia and Egypt score highly while France and E.g., Malaysia and Egypt score highly while France and Germany have low scores. Germany have low scores. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  33. 33. Exhibit 2.9: ManagementImplications of HumaneOrientation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  34. 34. 7d Cultural Dimensions Model•• Builds on traditional anthropological approaches to Builds on traditional anthropological approaches to understanding culture. understanding culture.•• Culture exists because people need to solve basic Culture exists because people need to solve basic problems of survival. problems of survival.•• Challenges include: Challenges include: •• How people relate to others. How people relate to others. •• How people relate to time. How people relate to time. •• How people relate to their environment. How people relate to their environment. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  35. 35. 7d Cultural Dimensions Model•• Dimensions that deal with relationships include: Dimensions that deal with relationships include: •• Universalism vs. Particularism Universalism vs. Particularism •• Collectivism vs. Individualism Collectivism vs. Individualism •• Neutral vs. Affective Neutral vs. Affective •• Diffuse vs. Specific Diffuse vs. Specific •• Achievement vs. Ascription Achievement vs. Ascription © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  36. 36. 7d Cultural Dimension Model (cont.)•• Dimensions dealing with how a culture manages time Dimensions dealing with how a culture manages time and how it deals with nature: and how it deals with nature: •• Past, Present, Future, or Mixture Past, Present, Future, or Mixture •• Control of vs. Accommodation with Nature Control of vs. Accommodation with Nature © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  37. 37. Exhibit 2.11: Summary of 7dModel and Issues © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  38. 38. Universalism vs. Particularism•• Pertain to how people treat each other based on rules Pertain to how people treat each other based on rules or personal relationships. or personal relationships.•• Universalistic -- Universalistic •• Right way is based on abstract principles such as Right way is based on abstract principles such as rules, law, religion. rules, law, religion.•• Particularistic -- Particularistic •• Each judgment represents a unique situation, with Each judgment represents a unique situation, with exceptions for rules based on relationships or exceptions for rules based on relationships or circumstances. circumstances. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  39. 39. Exhibit 2.12: ManagerialImplications ofUniversalism/Particularism © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  40. 40. Individualism vs. Collectivism•• Similar distinctions to Hofstede’s view Similar distinctions to Hofstede’s view•• Collectivist societies -- Collectivist societies •• People defined by group memberships such as family People defined by group memberships such as family •• Responsibility, achievement, and rewards are group-based Responsibility, achievement, and rewards are group-based•• Individualist societies -- Individualist societies •• People trained to be independent People trained to be independent •• Assume individual responsibility for success or failure Assume individual responsibility for success or failure © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  41. 41. Exhibit 2.13: ManagerialImplications ofIndividualism/Collectivism © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  42. 42. Neutral vs. Affective•• Concerns acceptability of expressing emotions Concerns acceptability of expressing emotions•• Neutral -- Neutral •• Interactions are objective and detached Interactions are objective and detached •• Focus is on tasks rather than emotional nature of Focus is on tasks rather than emotional nature of interaction interaction•• Affective -- Affective •• Emotions are appropriate in all situations Emotions are appropriate in all situations •• Prefer to find immediate outlet for emotions Prefer to find immediate outlet for emotions © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  43. 43. Exhibit 2.14: ManagerialImplications of Neutral vs.Affective © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  44. 44. Specific vs. Diffuse•• Extent to which an individual’s life is involved in work Extent to which an individual’s life is involved in work relationships relationships•• Specific -- Specific •• Business segregated from other parts of life Business segregated from other parts of life •• Contracts often prescribe and delineate relationships Contracts often prescribe and delineate relationships•• Diffuse -- Diffuse •• Business relationships encompassing/inclusive Business relationships encompassing/inclusive •• Private and segregated space is small Private and segregated space is small © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  45. 45. Exhibit 2.15: ManagerialImplications of Specific vs.Diffuse © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  46. 46. Achievement vs. Ascription•• Manner in which society gives status Manner in which society gives status•• Achievement -- Achievement •• People earn status based on performance and People earn status based on performance and accomplishments accomplishments•• Ascription -- Ascription •• Characteristics or associations define status Characteristics or associations define status •• E.g., status based on schools or universities E.g., status based on schools or universities © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  47. 47. Exhibit 2.16: ManagerialImplications of Achievementvs. Ascription © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  48. 48. Time OrientationTime Horizon: How cultures deal with the past, presentTime Horizon: How cultures deal with the past, present and future and future •• Future-oriented societies, such as the U.S., Future-oriented societies, such as the U.S., consider organizational change as necessary and consider organizational change as necessary and beneficial. beneficial. Believe a static organization is a dying organization. Believe a static organization is a dying organization. •• Past-oriented societies assume that life is Past-oriented societies assume that life is predetermined based on traditions or will of God. predetermined based on traditions or will of God. Revere stability and are suspicious of change. Revere stability and are suspicious of change. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  49. 49. Exhibit 2.17: ManagerialImplications of Time Horizon © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  50. 50. Internal vs. External Control•• Concerned with beliefs regarding control of one’s fate Concerned with beliefs regarding control of one’s fate•• Best reflected with how people interact with the Best reflected with how people interact with the environment environment •• Does nature dominate us or do we dominate Does nature dominate us or do we dominate nature? nature?•• In societies where people dominate nature, managers In societies where people dominate nature, managers are more proactive and believe situations can be are more proactive and believe situations can be changed. changed. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  51. 51. Exhibit 2.18: ManagerialImplications of Internal vs.External © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  52. 52. Caveats and Cautions•• Stereotyping: assumes that all people within one Stereotyping: assumes that all people within one culture behave, believe, feel, and act the same. culture behave, believe, feel, and act the same.•• Ethnocentrism: occurs when people from one culture Ethnocentrism: occurs when people from one culture believe that theirs are the only correct norms, values, believe that theirs are the only correct norms, values, and beliefs. and beliefs.•• Cultural Intelligence: ability to interact effectively in Cultural Intelligence: ability to interact effectively in multiple cultures multiple cultures•• Cultural relativism: all cultures, no matter how different, Cultural relativism: all cultures, no matter how different, are correct and moral for the people of those cultures. are correct and moral for the people of those cultures. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  53. 53. Conclusion•• Chapter provides understanding of various ways to Chapter provides understanding of various ways to understand national cultures understand national cultures•• Sensitize to complex and subtle influences of culture Sensitize to complex and subtle influences of culture on multinational management on multinational management•• Variety of cultural levels affect multinational managers Variety of cultural levels affect multinational managers•• Astute managers realize that understanding cultures is Astute managers realize that understanding cultures is a never-ending learning process. a never-ending learning process. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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