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The Role of Culture in
International Management
HA 390 Module 2
Culture
 Helps us organize our world
 Shared values, understandings, assumptions
and goals (values, beliefs, norms)
 Learned from earlier generation
 Imposed by present members of society
Principles for Studying Other Cultures
 Individuals may not conform
 Differences may not be culturally based
 Understand your own culture first
 Continuums
– Few fall at the extremes, most are somewhere
in the middle
Stereotyping/ Sociotyping
 Mental files
 Natural
 Useful
 Can be misused
Ethnocentrism
 Belief that one's cultural values,
beliefs and norms are better than
those of another culture are
Principles Summary
 4 Principles for studying cultures
– Individuals may not conform
– Differences may not be culturally based
– Understand self first
– Continuums
 Stereotyping
– Natural, potentially useful or harmful
mental files
 Ethnocentrism
– Belief that one’s own culture is best
Team Work
 Find several examples that demonstrate
how culture affects management
functions such as planning, organizing,
directing and controlling
 Find examples of how culture affects
management style
 Find several examples of how business
practices differ across cultures
 Prepare to present findings to class
Country Profile
Cultural Characteristics
 Understand the ways culture can
differ
 Understand ourselves
 Understand others
 Value different points of view
 Develop shared values, beliefs and
norms
What do you think?
 Are subordinates the same kind of people as
management?
 Should the boss know all the answers?
 Is it ok for the boss to have privileges such as
drinking coffee on the job that the front line
workers do not have?
 Is it ok to call the boss by his/her first name?
 Which type of boss do you think is best - one that
is autocratic, persuasive or paternalistic, or
democratic?
Power Distance
High Power Distance
 Order of inequality
 Special privileges
 Subordinates are
different from
superiors
 Boss should know all
Low Power Distance
 Minimize inequalities
 Equal rights
 Subordinates and
superiors are equals
 Ok for boss to ask
subordinates for
answers
Power Distance Comparisons
81
61
54
49
40 38
35
28
0
10
20
30
40
50
60
70
80
90
Mexico
Taiwan
Japan
South
Africa
USA
Netherlands
Great
Britan
Ireland
High
Low
Average = 51
High Power Distance Employee
Expectations
 Wrong to disagree with the boss
 Paternalistic (father-like)
management style
 Boss should know all the answers
 Boss should have more privileges
What do you think?
 Do you think it is ok for employees to disagree and even argue
with their boss?
 Do you think time has a monetary value or it is something that just
exists?
 Do you prefer a boss who lays out the rules clearly and
specifically to you in written format or do you prefer one that only
sets out basic rules and assumes you will perform appropriately?
Why?
 If you needed a marketing plan, would you hire a hospitality
marketing specialist, a general marketing specialist or would you
do it yourself?
 How do you react when your boss tells you s/he is going to make
changes in the way things are done?
Uncertainty Avoidance
High
 Avoid risks
 Dissonance is
dangerous
 Time is money
 Need written rules
and regulations
 Believe in experts
Low
 Willing to take risks
 Accept disagreements
 Time is free
 Prefer common sense
to rules
 Logic and common
sense better than expert
opinions
112
92
82
69
53
49 46
35
29
0
20
40
60
80
100
120 Greece
Japan
Mexico
Taiwan
Netherlands
South
Africa
USA
Great
Britain
Hong
Kong
Uncertainty Avoidance
Average=64
High avoidance of risk Willing to take risks
Individualism Collectivism
 Responsible for self
and immediate family
 Identity based on the
individual
 Autonomy, variety,
pleasure and
individual financial
security
 Individual decisions
 Extended families,
loyalty, protection
 Identity in the
social system
 Expertise, order,
duty, security
provided by the in-
group
 Group decisions
Individualistic Collective
Average =51
89
80
46
30
25
17
91
0
10
20
30
40
50
60
70
80
90
100
USA
Great
Britain
Netherlands
Japan
Mexico
Hong
Kong
Taiwan
Collective
Individualistic
Affect of High Uncertainty
Avoidance on Employees
 Career stability
 Rules, regulations, direction
 Consistency
 Avoid conflict/disagreement
 Resist change
 Fear of failure
– May appear less ambitious
 Stable employees
1. Do you live to work or work to live?
2. What are your feelings about who should do what at
home? How do you view the responsible of each
spouse for taking care of the children?
3. Do you feel a sense of responsibility to help when you
see a homeless person begging? What is your
philosophy on giving to the poor?
4. Would you take your family out of a home and
community they love where they are surrounded by
friends and family for a new position that offers you a
considerably higher salary?
5. How would you rank yourself on the
masculine/feminine continuum?
6. How do your feelings contrast with others you know?
What do you think?
Masculine/Feminine
Masculine
 Material success
 Ambition,
assertive
 Competitive
 Live to work
 Women are
nurturers
 Achievement
Feminine
 Quality of life
 Relationships
 Concern for weak
 Work to live
 Men & Women
nurture
 Disapprove of high
achievers
95
69
66
63 62
57
45
14
5
0
10
20
30
40
50
60
70
80
90
100
Japan
Mexico
Great
Britain
South
Africa
USA
Hong
Kong
Taiwan
Netherlands
Sweden
Masculine Feminine
Average = 51
Particularistic Universalistic
 Focus more on
relationships than rules
 Legal contracts easily
modified
 Changing mutualities
honored
 Reality is relative to
participant
 Relationships evolve
 Focus on rules rather
than relationships
 Legal contracts should
be honored
 Word and legal
contracts honored
 One reality, one truth
 A deal is a deal
Percent who prefer universalistic
system
93
90
88
68
64
37
U
S
A
U
K
N
e
t
h
e
r
l
a
n
d
s
J
a
p
a
n
M
e
x
i
c
o
S
o
u
t
h
K
o
r
e
a
Team Discussion
 How would the expectations of
employees from a particularistic
culture differ from those of a
universalistic culture?
 Which system do you prefer? Why?
What is the value of each of these
systems?
What do you think?
1. Do you think Americans respected John Kennedy,
Jr. because of what he accomplished or because of
his family?
2. Do you think many people voted for our current
president because of his father?
3. Would you have the same level of respect as a
hospitality manager as a relative of Bill Marriott
or Roy Crock would?
4. What difference do you think the school you
attended make in your career after you have been
working in the field at least five years?
Achievement Ascription
 Respected for what
you do
 Respect of superior
based on performance
 Limited use of titles
 Senior managers vary
in age and gender,
qualified by
achievements
 Respected for who
you are
 Respect for
superior seen as
commitment to the
organization
 Extensive use of
titles
 Senior managers
are male, middle-
aged, qualified by
background (who
they are)
Ascription Achievement
58
79
81
81
87
89
Hong Kong
Japan
China
Mexico
USA
UK
Respect depends on family background
Percent who disagree
What do you think?
1. Do you believe you can control your life
or do you believe you have to accept the
ways things are?
2. Is your life pre-destined?
3. Do you have a fate over which you have
little or no control?
4. How do other people you know differ in
their believes about controlling fate or
destiny?
Locus of Control
Internal
 Belief in one’s ability
to control fate
 Respect for conflict
and resistance
 Focus on self rather
than others
 Discomfort with lack
of control
External
 Belief that something
outside oneself is in
control
 Harmony and
responsiveness
 Focus on other
 Comfortable with
changes
Control Fate: Percent who believe
they are captains of their fate
Venezuela
Japan
Hong Kong
S Korea Netherlands UK
USA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Neutral/Affective
Neutral
 Hide feelings
 Tension accidentally
revealed
 Admire poise
 Avoid hugs, broad
smiles and broad
gestures
 Monotone
Affective
 Openly reveal
emotions
 Expressive
 Animated expressions
 Touching, and broad
gestures admired
 Expression and
emotion
Diffuse (High context)
/Specific (low context)
Diffuse (high context)
 Indirect
 Evasive, tactful,
ambiguous
 Context more important
than words
 Highly situational
morality
 Prefer neutral
expressiveness
 Report conclusions at end
Specific (low context)
 Direct, to the point
 Precise, blu8nt
 Words more important
than context
 Consistent moral
stands regardless of
circumstances
 Prefer animated
expression
 Report conclusions
and important points
first
Cultural Dimensions Summary
 Power Distance – how should the boss act
 Uncertainty Avoidance – rules or
common sense
 Masculine/Feminine – material rewards or
quality of life
 Individualism/Collectivism – I versus we
 Universalistic/Particularistic – treat all
equally versus do favors for friends
Cultural Dimensions Summary
 Achievement/Ascription – respect for what
you do or respect for who you are
 Locus of Control – I am in control of my
destiny versus outside forces are in control
 Neutral/Affective – hide versus display
emotions
 Diffuse/Specific (high/low context) – indirect
versus direct communication

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Culture Dimensions.pptx

  • 1. The Role of Culture in International Management HA 390 Module 2
  • 2. Culture  Helps us organize our world  Shared values, understandings, assumptions and goals (values, beliefs, norms)  Learned from earlier generation  Imposed by present members of society
  • 3. Principles for Studying Other Cultures  Individuals may not conform  Differences may not be culturally based  Understand your own culture first  Continuums – Few fall at the extremes, most are somewhere in the middle
  • 4. Stereotyping/ Sociotyping  Mental files  Natural  Useful  Can be misused
  • 5. Ethnocentrism  Belief that one's cultural values, beliefs and norms are better than those of another culture are
  • 6. Principles Summary  4 Principles for studying cultures – Individuals may not conform – Differences may not be culturally based – Understand self first – Continuums  Stereotyping – Natural, potentially useful or harmful mental files  Ethnocentrism – Belief that one’s own culture is best
  • 7. Team Work  Find several examples that demonstrate how culture affects management functions such as planning, organizing, directing and controlling  Find examples of how culture affects management style  Find several examples of how business practices differ across cultures  Prepare to present findings to class
  • 9. Cultural Characteristics  Understand the ways culture can differ  Understand ourselves  Understand others  Value different points of view  Develop shared values, beliefs and norms
  • 10. What do you think?  Are subordinates the same kind of people as management?  Should the boss know all the answers?  Is it ok for the boss to have privileges such as drinking coffee on the job that the front line workers do not have?  Is it ok to call the boss by his/her first name?  Which type of boss do you think is best - one that is autocratic, persuasive or paternalistic, or democratic?
  • 11. Power Distance High Power Distance  Order of inequality  Special privileges  Subordinates are different from superiors  Boss should know all Low Power Distance  Minimize inequalities  Equal rights  Subordinates and superiors are equals  Ok for boss to ask subordinates for answers
  • 12. Power Distance Comparisons 81 61 54 49 40 38 35 28 0 10 20 30 40 50 60 70 80 90 Mexico Taiwan Japan South Africa USA Netherlands Great Britan Ireland High Low Average = 51
  • 13. High Power Distance Employee Expectations  Wrong to disagree with the boss  Paternalistic (father-like) management style  Boss should know all the answers  Boss should have more privileges
  • 14. What do you think?  Do you think it is ok for employees to disagree and even argue with their boss?  Do you think time has a monetary value or it is something that just exists?  Do you prefer a boss who lays out the rules clearly and specifically to you in written format or do you prefer one that only sets out basic rules and assumes you will perform appropriately? Why?  If you needed a marketing plan, would you hire a hospitality marketing specialist, a general marketing specialist or would you do it yourself?  How do you react when your boss tells you s/he is going to make changes in the way things are done?
  • 15. Uncertainty Avoidance High  Avoid risks  Dissonance is dangerous  Time is money  Need written rules and regulations  Believe in experts Low  Willing to take risks  Accept disagreements  Time is free  Prefer common sense to rules  Logic and common sense better than expert opinions
  • 17. Individualism Collectivism  Responsible for self and immediate family  Identity based on the individual  Autonomy, variety, pleasure and individual financial security  Individual decisions  Extended families, loyalty, protection  Identity in the social system  Expertise, order, duty, security provided by the in- group  Group decisions
  • 20. Affect of High Uncertainty Avoidance on Employees  Career stability  Rules, regulations, direction  Consistency  Avoid conflict/disagreement  Resist change  Fear of failure – May appear less ambitious  Stable employees
  • 21. 1. Do you live to work or work to live? 2. What are your feelings about who should do what at home? How do you view the responsible of each spouse for taking care of the children? 3. Do you feel a sense of responsibility to help when you see a homeless person begging? What is your philosophy on giving to the poor? 4. Would you take your family out of a home and community they love where they are surrounded by friends and family for a new position that offers you a considerably higher salary? 5. How would you rank yourself on the masculine/feminine continuum? 6. How do your feelings contrast with others you know? What do you think?
  • 22. Masculine/Feminine Masculine  Material success  Ambition, assertive  Competitive  Live to work  Women are nurturers  Achievement Feminine  Quality of life  Relationships  Concern for weak  Work to live  Men & Women nurture  Disapprove of high achievers
  • 24. Particularistic Universalistic  Focus more on relationships than rules  Legal contracts easily modified  Changing mutualities honored  Reality is relative to participant  Relationships evolve  Focus on rules rather than relationships  Legal contracts should be honored  Word and legal contracts honored  One reality, one truth  A deal is a deal
  • 25. Percent who prefer universalistic system 93 90 88 68 64 37 U S A U K N e t h e r l a n d s J a p a n M e x i c o S o u t h K o r e a
  • 26. Team Discussion  How would the expectations of employees from a particularistic culture differ from those of a universalistic culture?  Which system do you prefer? Why? What is the value of each of these systems?
  • 27. What do you think? 1. Do you think Americans respected John Kennedy, Jr. because of what he accomplished or because of his family? 2. Do you think many people voted for our current president because of his father? 3. Would you have the same level of respect as a hospitality manager as a relative of Bill Marriott or Roy Crock would? 4. What difference do you think the school you attended make in your career after you have been working in the field at least five years?
  • 28. Achievement Ascription  Respected for what you do  Respect of superior based on performance  Limited use of titles  Senior managers vary in age and gender, qualified by achievements  Respected for who you are  Respect for superior seen as commitment to the organization  Extensive use of titles  Senior managers are male, middle- aged, qualified by background (who they are)
  • 30. What do you think? 1. Do you believe you can control your life or do you believe you have to accept the ways things are? 2. Is your life pre-destined? 3. Do you have a fate over which you have little or no control? 4. How do other people you know differ in their believes about controlling fate or destiny?
  • 31. Locus of Control Internal  Belief in one’s ability to control fate  Respect for conflict and resistance  Focus on self rather than others  Discomfort with lack of control External  Belief that something outside oneself is in control  Harmony and responsiveness  Focus on other  Comfortable with changes
  • 32. Control Fate: Percent who believe they are captains of their fate Venezuela Japan Hong Kong S Korea Netherlands UK USA 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
  • 33. Neutral/Affective Neutral  Hide feelings  Tension accidentally revealed  Admire poise  Avoid hugs, broad smiles and broad gestures  Monotone Affective  Openly reveal emotions  Expressive  Animated expressions  Touching, and broad gestures admired  Expression and emotion
  • 34. Diffuse (High context) /Specific (low context) Diffuse (high context)  Indirect  Evasive, tactful, ambiguous  Context more important than words  Highly situational morality  Prefer neutral expressiveness  Report conclusions at end Specific (low context)  Direct, to the point  Precise, blu8nt  Words more important than context  Consistent moral stands regardless of circumstances  Prefer animated expression  Report conclusions and important points first
  • 35. Cultural Dimensions Summary  Power Distance – how should the boss act  Uncertainty Avoidance – rules or common sense  Masculine/Feminine – material rewards or quality of life  Individualism/Collectivism – I versus we  Universalistic/Particularistic – treat all equally versus do favors for friends
  • 36. Cultural Dimensions Summary  Achievement/Ascription – respect for what you do or respect for who you are  Locus of Control – I am in control of my destiny versus outside forces are in control  Neutral/Affective – hide versus display emotions  Diffuse/Specific (high/low context) – indirect versus direct communication