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Team 4 Chp 4 & 5


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Team 4 Chp 4 & 5

  1. 1. The Meanings and Dimensions of Culture and Managing Across Cultures<br />Chapter 4 & 5<br />Dylan Parks,<br />Tara Kern,<br />Ashley Sanders<br />
  2. 2. Culture<br /><ul><li>Culture has a large impact on business</li></ul>Learned<br />Shared<br />Transgenerational<br />Symbolic<br />Patterned<br />Adaptive<br />
  3. 3. Culture cont.<br /><ul><li>Common practices in one culture may not be the same in others
  4. 4. The practice of handshaking is a good example</li></li></ul><li>Different Cultural Values<br /><ul><li>Centralized vs. Decentralized Decision Making
  5. 5. Safety vs. Risk
  6. 6. Individual vs. Group Reward
  7. 7. Informal vs. Formal Procedures
  8. 8. High vs. Low Organizational Loyalty
  9. 9. Cooperation vs. Competition
  10. 10. Short-term vs. Long-term horizons
  11. 11. Stability vs. Innovation</li></li></ul><li>Values<br /><ul><li>Value – Basic conviction people have regarding right and wrong, good and bad, etc
  12. 12. Different cultures have different values
  13. 13. There is a strong relationship between management values and success; more successful managers tend to favor pragmatic, dynamic, achievement orientated values, while less successful managers tend to have more static and passive values
  14. 14. Values are changing over time</li></li></ul><li>Hofstede’s Cultural Dimensions<br /><ul><li>Power Distance
  15. 15. Uncertainty Avoidance
  16. 16. Individualism/Collectivism
  17. 17. Masculinity/Femininity</li></li></ul><li>Power Distance<br /><ul><li>The extent to which less powerful members of institutions and organizations accept that power is distributed unequally
  18. 18. Higher power distance – strict obedience
  19. 19. Organizations in high power distance countries tend to centralized with tall organization structures
  20. 20. Lower power distance organizations tend to be decentralized and have flatter organizational structures</li></li></ul><li>Uncertainty Avoidance<br /><ul><li>The extent to which people feel threatened by ambiguous situations and have created institutions to try and avoid these
  21. 21. Low Uncertainty Avoidance – Less formal rules, more risks taken, more ambitious employees, less structure, more employee responsibility
  22. 22. High Uncertainty Avoidance – Very structured, more formal rules, less risks taken, less ambitious employees</li></li></ul><li>Individualism/Collectivism<br /><ul><li>Individualism - The tendency of people to look after themselves and their immediate family only
  23. 23. Collectivism – The tendency of people to belong to groups and look after each other in exchange for loyalty
  24. 24. Wealthy countries tend to be more individualistic, poorer countries tend to be more collectivistic
  25. 25. Individualistic countries value Protestant work ethic, more individual initiative, promotions based on market value
  26. 26. Collectivistic countries (opposite)… promotions based on seniority</li></li></ul><li>Masculinity/Femininity<br /><ul><li>Masculinity – Situation in which dominant values in society are success, money, and things
  27. 27. Great importance is placed on earnings, recognition, advancement, and challenge
  28. 28. Femininity – Situation in which the dominant values in society are caring for others and the quality of life
  29. 29. Importance is placed on cooperation, a friendly atmosphere, and employment security</li></li></ul><li>Trompenaar’s Dimensions<br /><ul><li>Universalism vs. Particularism
  30. 30. Individualism vs. Communitarianism
  31. 31. Neutral vs. Emotional
  32. 32. Specific vs. Diffuse
  33. 33. Achievement vs. Ascription</li></li></ul><li>Universalism vs. Particularism<br /><ul><li>Universalism – The belief that ideas and practices can be applied everywhere with no modification
  34. 34. Universalism – More emphasis on formal rules than on relationships and trust
  35. 35. Particularism – The belief that circumstances dictate how ideas and practices should be applied
  36. 36. Particularism – More emphasis on trust and relationships than formal rules; relationships affect how business deals are done</li></li></ul><li>Individualism vs. Communitarianism<br /><ul><li>Communitarianism – Refers to people regarding themselves as part of a group
  37. 37. Similar to the Individualism/Collectivism comparison of Hofstede
  38. 38. The two studies found different results; this could possibly be from changing cultural values</li></li></ul><li>Neutral vs. Emotional<br /><ul><li>Neutral Culture – Culture in which emotions should be kept in check and not shown
  39. 39. Emotional Culture – Culture in which emotions are shown freely</li></li></ul><li>Specific vs. Diffuse<br /><ul><li>Specific Culture – Large, shared public space and small private space shared only with close friends/associates
  40. 40. Diffuse culture – Public and private space are similar and both are guarded equally</li></li></ul><li>Achievement vs. Ascription<br />Achievement culture: status based on performance<br />Sales, promotions, experience<br />Ascription culture: status based on who/what person is<br />Age, gender, social connections<br />
  41. 41. Time<br />Perception of time = major cultural difference<br />Sequential <br />one task at a time, strictly abide by deadlines and show preference for following rules<br />Synchronous<br />multitasking, appointments are approximate (likely to change) and schedules are subordinate to relationships<br />
  42. 42. Strategic Predispositions<br />Ethnocentric<br />values and interests of parent co guide strategic decisions<br />Polycentric<br />decisions tailored to suit culture of country MNC is operating from<br />Regiocentric<br />tries to blend own interests w/ those of its subsidiaries on regional basis<br />Geocentric<br />tries to integrate global systems approach to decision making<br />
  43. 43. Globalization Imperative<br />belief one worldwide approach to doing business is the key to both effectiveness and efficiency<br />Study: most MNCs use same business strategy abroad as at home; effective MNCs take step further to address local needs as well<br />
  44. 44. Adjusting Global Strategies for Regional Markets<br />Challenges<br />MNCs must be aware of local market conditions & not assume all markets the same<br />MNCs must know strengths & weaknesses of its subsidiaries<br />MNCs must give subsidiaries more independence<br />
  45. 45. Parochialism<br />Tendency to view the world through one’s own eyes and perspectives<br />Problems?<br />
  46. 46. Simplification<br />Process of exhibiting the same orientation toward different cultural groups<br />Reflects one’s basic culture<br />Due to misunderstanding/not knowing the culture<br />
  47. 47. Similarities <br />How is it useful for businesses to know about cultural similarities?<br />Think about: individual employees; customers; business partners<br />
  48. 48. Differences<br />Why is it important for businesses to know about cultural differences?<br />Think about: individual employees; customers; business partners<br />
  49. 49. Name that Country<br />Labor laws in this country requires that employees receive full pay 365 days a year.<br />Some parts of this country have legislated pay equity (comparable worth).<br />In this country, compensation levels are determined by using age, length of service, and educational background (rather than skill, ability, and performance).<br />
  50. 50. Name that Country (cont.)<br />In this country, employees are allowed up to 40 weeks of maternity leave and employers must provide a government-mandated amount of pay for 18 of those weeks.<br />In about 87% of large companies in this country, the head of human resources is on the board of directors.<br />