The Meanings and Dimensions of Culture


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The Meanings and Dimensions of Culture

  1. 1. The Meanings and Dimensions of Culture chapter four McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
  2. 2. 4-3 Chapter Objectives 1. DEFINE the term culture, and discuss some of the comparative ways of differentiating cultures. 2. DESCRIBE the concept of cultural values, and relate some of the international differences, similarities, and changes occurring in terms of both work and managerial values. 3. IDENTIFY the major dimensions of culture relevant to work settings, and discuss their effects on behavior in an international environment. 4. DISCUSS the value of country cluster analysis and relational orientations in developing effective international management practices.
  3. 3. 4-4 The Nature of Culture • Culture defined: Acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior.
  4. 4. 4-5 Characteristics of Culture • Learned • Shared • Trans-generational • Symbolic • Patterned • Adaptive
  5. 5. 4-6 Priorities of Cultural Values
  6. 6. 4-7 How Culture Affects Managerial Approaches • Centralized vs. Decentralized Decision Making: – 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.
  7. 7. 4-8 How Culture Affects Managerial Approaches • Safety vs. 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.
  8. 8. 4-9 How Culture Affects Managerial Approaches • Individual vs. Group Rewards: – 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 upon.
  9. 9. 4-10 How Culture Affects Managerial Approaches • Informal Procedures vs. Formal Procedures: – In some societies, much is accomplished through informal means. – In others, formal procedures are set forth and followed rigidly.
  10. 10. 4-11 How Culture Affects Managerial Approaches • High Organizational Loyalty vs. Low Organizational Loyalty – 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.
  11. 11. 4-12 How Culture Affects Managerial Approaches • Cooperation vs. Competition – Some societies encourage cooperation between their people. – Others encourage competition between their people.
  12. 12. 4-13 How Culture Affects Managerial Approaches • Short-term vs. Long-term Horizons – Some culture 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 developments.
  13. 13. 4-14 How Culture Affects Managerial Approaches • Stability vs. Innovation – The culture of some countries encourages stability and resistance to change. – The culture of others puts high value on innovation and change.
  14. 14. 4-15 A Model of Culture
  15. 15. 4-16 Business Customs in South Africa • Arrange meeting before discussing business over phone. • Make appointments as far in advance as possible. • Maintain eye contact, shake hands, provide business card • Maintain a win-win situation • Keep presentations short
  16. 16. 4-17 Values in Culture • Values – Learned from culture in which individual is reared – Differences in cultural values may result in varying management practices – Basic convictions that people have about • Right and wrong • Good and bad • Important and unimportant
  17. 17. 4-18 Values in Culture
  18. 18. 4-19 Values in Culture
  19. 19. 4-20 Values in Culture
  20. 20. 4-21 Value Similarities and Differences Across Cultures 1. Strong relationship between level of managerial success and personal values 2. Value patterns predict managerial success and can be used in selection/placement decisions 3. Country differences in relationship between values and success; however, findings across U.S., Japan, Australia, India are similar 4. Values of more successful managers favor pragmatic, dynamic, achievement-oriented and active role in interaction with others 5. Values of less successful managers tend toward static and passive values; relatively passive roles in interacting with others
  21. 21. 4-22 Hofstede’s Cultural Dimensions 1. Power distance 2. Uncertainty avoidance 3. Individualism/collectivism 4. Masculinity/femininity
  22. 22. 4-23 Hofstede’s Cultural Dimensions • Power distance: Less powerful members accept that power is distributed unequally – High power distance countries: people blindly obey superiors; centralized, tall structures (e.g., Mexico, South Korea, India) – Low power distance countries: flatter, decentralized structures, smaller ratio of supervisor to employee (e.g., Austria, Finland, Ireland)
  23. 23. 4-24 1. Power/Distance (PD) – This refers to the degree of inequality that exists – and is accepted – among people with and without power. A high PD score indicates that society accepts an unequal distribution of power and people understand "their place" in the system. Low PD means that power is shared and well dispersed. It also means that society members view themselves as equals. Application: According to Hofstede's model, in a high PD country like Malaysia (104), you would probably send reports only to top management and have closed door meetings where only a select few, powerful leaders were in attendance. • Characteristics Tips High PD •Centralized companies. •Strong hierarchies. •Large gaps in compensation, authority, and respect. •Acknowledge a leader's power. •Be aware that you may need to go to the top for answers Low PD •Flatter organizations. •Supervisors and employees are considered almost as equals. •Use teamwork •Involve as many people as possible in decision making.
  24. 24. 4-25 Hofstede’s Cultural Dimensions • Uncertainty avoidance: people feel threatened by ambiguous situations; create beliefs/institutions to avoid such situations – High uncertainty avoidance countries: high need for security, strong belief in experts and their knowledge; structure organizational activities, more written rules, less managerial risk taking (e.g., Germany, Japan, Spain) – Low uncertainty avoidance countries: people more willing to accept risks of the unknown, less structured organizational activities, fewer written rules, more managerial risk taking, higher employee turnover, more ambitious employees (e.g., Denmark and Great Britain)
  25. 25. 4-26 4. Uncertainty/Avoidance Index (UAI) – This relates to the degree of anxiety society members feel when in uncertain or unknown situations. High UAI-scoring nations try to avoid ambiguous situations whenever possible. They are governed by rules and order and they seek a collective "truth". Low UAI scores indicate the society enjoys novel events and values differences. There are very few rules and people are encouraged to discover their own truth. Application: Hofstede's Cultural Dimensions imply that when discussing a project with people in Belgium, whose country scored a 94 on the UAI scale, you should investigate the various options and then present a limited number of choices, but have very detailed information available on your contingency and risk plans. (Note that there will be cultural differences between French and Dutch speakers in Belgium!) Characteristics Tips High UAI •Very formal business conduct with lots of rules and policies. •Need and expect structure. •Sense of nervousness spurns high levels of emotion and expression. •Differences are avoided. •Be clear and concise about your expectations and parameters. •Plan and prepare, communicate often and early, provide detailed plans and focus on the tactical aspects of a job or project. •Express your emotions through hands gestures and raised voices. Low UAI •Informal business attitude. •More concern with long term strategy than what is happening on a daily basis. •Accepting of change and risk. •Do not impose rules or structure unnecessarily. •Minimize your emotional response by being calm and contemplating situations before speaking. •Express curiosity when you discover differences. •
  26. 26. 4-27 Hofstede’s Cultural Dimensions • Individualism: People look after selves and immediate family only – High individualism countries: wealthier, protestant work ethic, greater individual initiative, promotions based on market value (e.g., U.S., Canada, Sweden) – High collectivism countries: poorer, less support of Protestant work ethic, less individual initiative, promotions based on seniority (e.g., Indonesia, Pakistan)
  27. 27. 4-28 2. Individualism (IDV) – This refers to the strength of the ties people have to others within the community. A high IDV score indicates a loose connection with people. In countries with a high IDV score there is a lack of interpersonal connection and little sharing of responsibility, beyond family and perhaps a few close friends. A society with a low IDV score would have strong group cohesion, and there would be a large amount of loyalty and respect for members of the group. The group itself is also larger and people take more responsibility for each other's well being. Application: Hofstede's analysis suggests that in the Central American countries of Panama and Guatemala where the IDV scores are very low (11 and 6, respectively), a marketing campaign that emphasized benefits to the community or that tied into a popular political movement would likely be understood and well-received. Characteristics Tips High IDV •High valuation on people's time and their need for freedom. •An enjoyment of challenges, and an expectation of rewards for hard work. •Respect for privacy. •Acknowledge accomplishments. •Don't ask for too much personal information. •Encourage debate and expression of own ideas. Low IDV •Emphasis on building skills and becoming masters of something. •Work for intrinsic rewards. •Harmony more important than honesty. •Show respect for age and wisdom. •Suppress feelings and emotions to work in harmony. •Respect traditions and introduce change slowly. •
  28. 28. 4-29 Hofstede’s Cultural Dimensions • Masculinity: dominant social values are success, money, and things – High masculine countries: stress earnings, recognition, advancement, challenge, wealth; high job stress (e.g., Germanic countries) – High feminine countries: emphasize caring for others and quality of life; cooperation, friendly atmosphere., employment security, group decision making; low job stress (e.g., Norway)
  29. 29. 4-30 3. Masculinity (MAS) – This refers to how much a society sticks with, and values, traditional male and female roles. High MAS scores are found in countries where men are expected to be tough, to be the provider, to be assertive and to be strong. If women work outside the home, they have separate professions from men. Low MAS scores do not reverse the gender roles. In a low MAS society, the roles are simply blurred. You see women and men working together equally across many professions. Men are allowed to be sensitive and women can work hard for professional success. Application: Japan is highly masculine with a score of 95 whereas Sweden has the lowest measured value (5). According to Hofstede's analysis, if you were to open an office in Japan, you might have greater success if you appointed a male employee to lead the team and had a strong male contingent on the team. In Sweden, on the other hand, you would aim for a team that was balanced in terms of skill rather than gender. Characteristics Tips High MAS •Men are masculine and women are feminine. •There is a well defined distinction between men's work and women's work. •Be aware that people may expect male and female roles to be distinct. •Advise men to avoid discussing emotions or making emotionally-based decisions or arguments. Low MAS •A woman can do anything a man can do. •Powerful and successful women are admired and respected. •Avoid an "old boys' club" mentality. •Ensure job design and practices are not discriminatory to either gender. •Treat men and women equally. •
  30. 30. 4-31 Trompenaars’ Cultural Dimensions • Universalism vs. Particularism – Universalism: ideas/practices can be applied everywhere – High universalism countries: formal rules, close adhere to business contracts (e.g., Canada, U.S., Netherlands, Hong Kong) – Particularism: circumstances dictate how ideas/practices apply; high particularism countries often modify contracts (e.g., China, South Korea)
  31. 31. 4-32 Trompenaars’ Cultural Dimensions • Individualism vs. Communitarianism – Individualism: people as individuals – Countries with high individualism: stress personal and individual matters; assume great personal responsibility (e.g., Canada, Thailand, U.S., Japan) – Communitarianism: people regard selves as part of group – Value group-related issues; committee decisions; joint responsibility (e.g., Malaysia, Korea)
  32. 32. 4-33 Trompenaars’ Cultural Dimensions • Neutral vs. Emotional • Neutral: culture in which emotions not shown – High neutral countries, people act stoically and maintain composure (e.g., Japan and U.K.) • Emotional: Emotions are expressed openly and naturally – High emotion cultures: people smile a lot, talk loudly, greet each other with enthusiasm (e.g., Mexico, Netherlands, Switzerland)
  33. 33. 4-34 Trompenaars’ Cultural Dimensions • Specific vs. Diffuse – Specific: large public space shared with others and small private space guarded closely • High specific cultures: people open, extroverted; strong separation work and personal life (e.g., Austria, U.K., U.S.) – Diffuse: public and private spaces similar size, public space guarded because shared with private space; people indirect and introverted, work/private life closely linked (e.g., Venezuela, China, Spain)
  34. 34. 4-35 Trompenaars’ Cultural Dimensions • Achievement vs. Ascription – Achievement culture: status based on how well perform functions (Austria, Switzerland, U.S.) – Ascription culture: status based on who or what person is (e.g., Venezuela, China, Indonesia)
  35. 35. 4-36 Trompenaars’ Cultural Dimensions • Time – Sequential: only one activity at a time; appointments kept strictly, follow plans as laid out (U.S.) – Synchronous: multi-task, appointments are approximate, schedules subordinate to relationships (e.g., France, Mexico) – Present vs. Future: • Future more important (Italy, U.S., Germany) • Present more important (Venezuela, Indonesia • All 3 time periods equally important (France, Belgium
  36. 36. 4-37 Trompenaars’ Cultural Dimensions • The Environment – Inner-directed: people believe in control of outcomes (U.S., Switzerland, Greece, Japan) – Outer-directed: people believe in letting things take own course (China, many other Asian countries)
  37. 37. 4-38 Integrating Culture and Management: The GLOBE Project • GLOBE: Global Leadership and Organizational Behavior Effectiveness. • Project extends and integrates previous analyses of cultural attributes and variables. • Evaluates nine different cultural attributes using middle managers from 951 organizations in 62 countries. • Multi-cultural team of 170 scholars from around the world worked together to survey 17,000 managers in 3 industries: financial services, food processing, and telecommunications. • Covered every major geographic region of the world.
  38. 38. 4-39 The GLOBE Project • The 9 Dimensions of the GLOBE Project: – Uncertainty avoidance – Power distance – Collectivism I: Social collectivism – Collectivism II: In-group collectivism – Gender egalitarianism – Assertiveness – Future orientation – Performance orientation – Humane orientation
  39. 39. 4-40 GLOBE Results • Corresponds generally with those of Hofstede and Trompenaars. • Different from Hofstede in that many more researchers with varied perspectives were involved (vs. Hofstede workng alone); studied many companies vs. Hofstede’s IBM. • GLOBE provides a current comprehensive overview of general stereotypes that can be further analyzed for greater insight.
  40. 40. 4-41 GLOBE Project
  41. 41. 4-42 GLOBE Analysis
  42. 42. 4-43 Review and Discuss 1. What is meant by culture? 2. What is meant by value? 3. What are the dimensions of Hofstede’s model? 4. Will cultural differences decline or intensify as roadblock to international understanding? 5. Describe Trompenaar’s research.