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2CultureandMultinationalManagementLearningObjectives(1of2)Definecultureandunderstandthebasiccomponentsofculture.Identifyinstancesofculturalstereotypingandethnocentrism.Understandhowvariouslevelsofcultureinfluencemultinationaloperations.LearningObjectives(2of2)ApplytheHofstede,GLOBE,and7dmodelstodiagnoseandunderstandtheimpactofculturaldifferencesonmanagementprocesses.Appreciatethecomplexdifferencesamongculturesandusethesedifferencestobuildbetterorganizations.Recognizethecomplexityofunderstandingnewculturesandthedangersofstereotypingandculturalparadoxes.WhatisCulture?(1of2)Pervasiveandsharedbeliefs,norms,values,andsymbolsthatguidetheeverydaylifeofagroup.Culturalnorms:bothprescribeandproscribebehaviorsWhatwecanandcannotdo.Culturalvalues:whatisgood,whatisbeautiful,whatisholy,andwhatarelegitimategoalsforlife.WhatisCulture?(2of2)Culturalbeliefs:representourunderstandingsaboutwhatistrue.Culturalsymbols,stories,andrituals:communicatethenorms,values,andbeliefsofasocietyoragrouptoitsmembers.Cultureispervasiveinsociety:affectsallaspectsoflife.Cultureisshared:similarityinvalues,beliefs,norms.ThreeLevelsofCulture(1of2)Nationalculture:thedominantculturewithinthepoliticalboundariesofthenation-state.Buttheremaybesubcultureswithinthenationalculture.Businessculture:norms,values,andbeliefsthatpertaintoallaspectsofdoingbusinessinaculture.Tellspeoplethecorrect,acceptablewaystoconductbusinessinasociety.ThreeLevelsofCulture(2of2)3.OccupationalandorganizationalcultureOccupationalculture:thenorms,values,beliefs,andexpectedwaysofbehavingforpeopleinthesameoccupationalgroup,regardlessofemployer.Organizationalculture:thesetofimportantunderstandings(oftenunstated)thatmembersofanorganizationshare.CulturalDifferencesand
BasicValuesThreediagnosticmodelstoaidthemultinationalmanager:HofstedemodelofnationalcultureGlobalLeadershipandOrganizationalBehaviorEffectiveness(GLOBE)project7dculturemodelHofstede’sModelof
NationalCultureFivedimensionsofbasicculturalvalues:PowerdistanceUncertaintyavoidanceIndividualismMasculinityLong-termorientationHofstede’sModelAppliedtoOrganizationsandManagement
(1of2)FivemanagementpracticesconsideredinthediscussionofHofstede’smodelinclude:1. HumanresourcesmanagementManagementselectionTrainingEvaluationandpromotionRemunerationHofstede’sModelAppliedtoOrganizationsandManagement
(2of2)2.Leadershipstyleshowleadersbehave3.Motivationalassumptionsbeliefsrehowpeoplerespondtowork4.Decisionmakingandorganizationaldesignhowmanagersmakedecisionsandorganize5.StrategyeffectsofcultureonselectingstrategiesPowerDistance(1of2)Powerdistanceconcernshowculturesdealwithinequalityandfocuseson:Normsthattellsuperiors(e.g.,bosses)howmuchtheycandeterminethebehavioroftheirsubordinatesThebeliefthatsuperiorsandsubordinatesarefundamentallydifferentkindsofpeoplePowerDistance(2of2)Highpowerdistancecountrieshavenorms,values,andbeliefssuchas:Inequalityisfundamentallygood.Everyonehasaplace:somearehigh,somearelow.Mostpeopleshouldbedependentonaleader.Thepowerfulareentitledtoprivileges.Thepowerfulshouldnothidetheirpower.UncertaintyAvoidanceUncertaintyAvoidance:Norms,values,andbeliefsregardingtoleranceforambiguity:Conflictshouldbeavoided.Deviantpeopleandideasshouldnotbetolerated.Lawsareveryimportantandshouldbefollowed.Expertsandauthoritiesareusuallycorrect.Consensusisimportant.IndividualismIndividualism:Focusisontherelationshipbetweentheindividualandthegroup.Countrieshighonindividualismhavenorms,values,andbeliefssuchas:Peopleareresponsibleforthemselves.Individualachievementisideal.Peopleneednotbeemotionallydependentonorganizationsorgroups.CollectivismCollectivism:Collectivistcountrieshavenorms,values,andbeliefssuchas:One’sidentityisbasedongroupmembership.Groupdecisionmakingisbest.Groupsprotectindividualsinexchangefortheirloyaltytothegroup.MasculinityMasculinity:Tendencyofaculturetosupporttraditionalmasculineorientation.Highmasculinitycountrieshavebeliefssuchas:Genderrolesshouldbeclearlydistinguished.Menareassertiveanddominant.Machismoorexaggeratedmalenessinmenisgood.People–especiallymen-shouldbedecisive.Worktakespriorityoverotherduties,suchasfamily.Advancement,success,andmoneyareimportant.Long-Term
(Confucian)Orientation(1of2)Long-TermOrientation:Orientationtowardstimethatvaluespatience.Managersareselectedbasedonthefitoftheirpersonalandeducationalcharacteristics.Aprospectiveemployee’sparticularskillshavelessimportanceinthehiringdecision.Trainingandsocializationforalong-termcommitmenttotheorganizationcompensateforanyinitialweaknessesinwork-relatedskills.Long-Term
(Confucian)Orientation(2of2)Easternculturesrankhighestonlong-termorientation.Valuesynthesisinorganizationaldecisionsratherthansearchforcorrectanswer.Designedtomanageinternalsocialrelationships.Investmentinlong-termemploymentskills.Focusonlong-termindividualandcompanygoals.Short-termOrientationShort-TermOrientation:focusisonimmediatelyusableskillsWesterncultures,whichtendtohaveshort-termorientations,valuelogicalanalysisintheirapproachtoorganizationaldecisions.Designedandmanagedpurposefullytorespondtoimmediatepressuresfromtheenvironment.Wantimmediatefinancialreturns.GLOBENationalCultureFrameworkGLOBE(GlobalLeadershipandOrganizationalBehaviorStudies)involves170researcherswhocollecteddatafrom17,000managersin62countries7of9dimensionsofGLOBEaresimilartoHofstedeGLOBE’s2Uniquedimensions:PerformanceorientationHumaneorientationPerformanceOrientationPerformanceOrientationreferstothedegreetowhichthesocietyencouragessocietalmemberstoinnovate,toimprovetheirperformance,andtostriveforexcellence.E.g.,theUnitedStatesandSingaporehavehighscoreswhileRussiaandGreecehavelowscoresonthedimension.HumaneOrientationHumaneOrientationisanindicationoftheextenttowhichindividualsareexpectedtobefair,altruistic,caring,andgenerous.Needforbelongingnessandaffiliationisemphasizedmorethanmaterialpossessions,self-fulfillment,andpleasure.Lesshumane-orientedsocietiesaremorelikelytovalueself-interestandself-gratification.MalaysiaandEgypthavehighhumaneorientationscores,whileFranceandGermanyhavelowscores.7dCulturalDimensionsModel
(1of3)Buildsontraditionalanthropologicalapproachestounderstandingculture.Cultureexistsbecausepeopleneedtosolvebasicproblemsofsurvival.Challengesinclude:HowpeoplerelatetoothersHowpeoplerelatetotimeHowpeoplerelatetotheirenvironment7dCulturalDimensionsModel
(2of3)5ofthe7dimensionsofthismodeldealwithrelationshipsamongpeople:Universalismvs.ParticularismCollectivismvs.IndividualismNeutralvs.AffectiveDiffusevs.SpecificAchievementvs.Ascription7dCulturalDimensionsModel
(3of3)The2remainingdimensionsdealwithhowaculturemanagestimeandhowitdealswithnature:Time:Past,Present,Future,orMixtureNature:Controlofvs.AccommodationwithNatureUniversalismvs.ParticularismTheseconceptspertaintohowpeopletreateachother:Universalism:Basedonabstractprinciplessuchasrulesoflaw,religion,orculturalprinciples.Particularism:Rulesareonlyaroughguide.Eachjudgmentrepresentsauniquesituation,whichmusttakeintoaccountwhothepersonis,andhisrelationshiptotheonemakingthejudgment.Individualismvs.CollectivismSimilardistinctionstoHofstede’sviewCollectivistsocieties:Focusonrelationships.“Deals”areflexible,basedonsituationandperson.Contractsareeasytomodify.Individualistsocieties:Focusonrules.“Deals”areobligations.Contractsaredifficulttobreak.Neutralvs.AffectiveConcernstheacceptabilityofexpressingemotions.Neutral:Interactionsshouldbeobjectiveanddetached.Focusismoreontasksratherthanemotionalnatureofinteraction.Affective:Emotionsareappropriateinalmostallsituations.Preferredtofindimmediateoutletforemotions.Specificvs.DiffuseAddressestheextenttowhichanindividual’slifeisinvolvedinworkrelationshipsSpecific:BusinessissegregatedfromotherpartsoflifeContractsoftenprescribeanddelineaterelationshipsDiffuse:BusinessrelationshipsencompassingandinclusivePrefertoinvolvemultiplelifeareassimultaneously.Achievementvs.AscriptionAddressesthemannerinwhichsocietyaccordsstatusAchievement:PeopleearnstatusbasedonperformanceandaccomplishmentsAscription:CharacteristicsorassociationsdefinestatusE.g.,statusbasedonschoolsoruniversitiesTimeOrientationTimeHorizon:Howculturesdealwiththepast,presentandfutureFuture-orientedsocieties,suchastheU.S.,considerorganizationalchangeasnecessaryandbeneficial. Believeastaticorganizationisadyingorganization.Past-orientedsocietiesassumethatlifeispredeterminedbasedontraditionsorwillofGod. Reverestabilityandaresuspi
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