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PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University

The Nature of Culture

Culture
Acquired

knowledge that people use to interpret experience and generate social behavior
forms values creates attitudes influences behavior.

Priorities of Cultural Values

Table 4-1 Priorities of Cultural Values: United States, Japan, and Arab Countries
United States 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Freedom Independence Self-reliance Equality Individualism Competition Efficiency Time Directness Openness Japan 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Belonging Group harmony Collectiveness Age/seniority Group consensus Cooperation Quality Patience Indirectness Go-between Arab Countries 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Family security Family harmony Parental guidance Age Authority Compromise Devotion Patience Indirectness Hospitality

Note: 1 represents the most important cultural value, 10 the least.

Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries

How Culture Affects Managerial Approaches

Centralized Decision Making VS. Decentralized Decision Making In some societies, top managers make all important organizational decisions. In others, these decisions are diffused throughout the enterprise, and middleand lower-level managers actively participate in, and make, key decisions.

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.

How Culture Affects Managerial Approaches

Individual Rewards 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 on.

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.

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.

How Culture Affects Managerial Approaches

Cooperation VS. Competition Some societies encourage cooperation between their people. Others encourage competition between their people.

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How Culture Affects Managerial Approaches

Short-term Horizons VS. Long-term horizons Some cultures 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 technological development.

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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.

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A Model of Culture
The explicit artifacts and products of the society The norms and values that guide the society The implicit, basic assumptions that guide peoples behavior

Adapted from Figure 41: A Model of Culture

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Values in Culture
Values
Basic

convictions that people have

right and wrong good and bad important and unimportant

Learned

from the culture in which the individual is reared ones behavior

Influence

Differences in cultural values may result in varying

management practices

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Values in Culture
French culture U.S. culture

Adapted from Figure 42: Comparing Cultures as Overlapping Normal Distributions

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Values in Culture
French culture How the Americans see the French: arrogant flamboyant hierarchical emotional U.S. culture How the French see the Americans: nave aggressive unprincipled workaholic

Adapted from Figure 43: Stereotyping from the Cultural Extremes

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Values in Culture
Table 4-2 [Link] and Possible Alternatives
U.S. Cultural Values Individuals can influence the future (when there is a will there is a way). Individuals should be realistic in their aspirations. Alternative Values Examples of Management Function Affected

Life follows a preordained Planning and scheduling course, and, human action is determined by the will of God. Ideals are to be pursued regardless of what is reasonable. Goal setting and career development Motivation and reward system

We must work hard to Hard work is not the only accomplish our objectives prerequisite for success. (Puritan ethic). Wisdom luck, and time also are required.

Adapted from Table 4-2: U.S. Values and Possible Alternatives

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Values in Culture
Table 4-2 [Link] and Possible Alternatives
U.S. Cultural Values Alternative Values Examples of Management Function Affected Loyalty, commitment, and motivation Promotion

A primary obligation of an Individual employees have a employee is to the primary obligation to their organization. family and friends. Employees can be removed if they do not perform well. The removal of an employee from a position involves a great loss of prestige and will rarely be done. Withholding information to gain or maintain power is acceptable.

Company information should be available to anyone who needs it within the organization.

Organization, communication, and managerial style

Adapted from Table 4-2: U.S. Values and Possible Alternatives

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Values in Culture
Table 4-2 [Link] and Possible Alternatives
U.S. Cultural Values Competition stimulates high performance. Alternative Values Examples of Management Function Affected

Competition leads to Career development and unbalances and disharmony. marketing Communication, planning, and quality control.

What works is important.. Symbols and the process are more important than the end point.

Adapted from Table 4-2: U.S. Values and Possible Alternatives

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Values in Culture
There is a reasonably strong relationship between the

level of success achieved by managers and their personal values. Value patterns predict managerial success and could be used in selection and placement decisions. Although there are country differences in the relationships between values and success, findings across four countries (U.S., Japan, Australia, India) are quite similar. Values of more successful managers appear to favor Pragmatic, dynamic, achievement-oriented Active role in interaction with others Values of less successful managers tend toward Static and passive values

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Hofstedes Cultural Dimensions

Power Power Distance Distance

Extent to which less powerful members of

institutions and organizations accept that power is distributed unequally

High

power distance countries: people blindly obey the orders of their superiors, centralized and tall organization structures power distance countries: flatter and decentralized organization structures, smaller ratio of supervisors

Low

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Hofstedes Cultural Dimensions

Power Power Distance Distance Uncertainty Uncertainty Avoidance Avoidance Extent to which people feel threatened

by ambiguous situations and have created beliefs and institutions that try to avoid such situations High uncertainty avoidance countries: people have high need for security, strong belief in experts and their knowledge, structured organizational activities, more written rules, less risk taking by managers Low uncertainty avoidance countries: people are more willing to accept risks associated with the unknown, less structured organizational activities, fewer written rules, more risk taking by managers, higher employee turnover, more ambitious employees

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Hofstedes Cultural Dimensions

Power Power Distance Distance Uncertainty Uncertainty Avoidance Avoidance Individualism/ Individualism/ Collectivism Collectivism Individualism: Tendency of people to

look after themselves and their immediate family only

Countries high in individualism: tend to be wealthier, support protestant work ethic, greater individual initiative, promotions based on market value

Collectivism: Tendency of people to

belong to groups or collectives and to look after each other in exchange for loyalty

Countries high in collectivism: tend to be poorer, less support for protestant work ethic,

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Hofstedes Cultural Dimensions

Power Power Distance Distance Uncertainty Uncertainty Avoidance Avoidance Individualism/ Individualism/ Collectivism Collectivism Masculinity/ Masculinity/ Femininity Femininity Masculinity: a culture in which the

dominant social values are success, money and things

Countries high in masculinity: great importance on earnings, recognition, advancement, challenge, and wealth. High job stress.

Femininity: a culture in which the

dominate social values are caring for others and the quality of life

Countries high in femininity: great importance on cooperation, friendly atmosphere, employment security, group decision making, and living

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Attitudinal Dimensions of Culture

Work value and attitude similarities

Smallest space analysis (SSA) yields clusters of countries similar to each other

1. Anglo-American (U.S., U.K., Australia) 2. Nordic (Norway, Finland, Denmark) 3. South American (Venezuela, Mexico, Chile) 4. Latin European (France, Belgium) 5. Germanic (Germany, Austria, Switzerland)

Other researchers have found other clusters, depending on

variables used

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Synthesis of Country Clusters

Adapted from Figure 48: A Synthesis of Country Clusters

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Trompenaars Cultural Dimensions

Universalism VS. Particularism

Universalism: belief that ideas and practices can be

applied everywhere in the world without modification

In countries with high universalism, focus is more on formal rules, business contracts are adhered to closely, people believe a deal is a deal Includes Canada, U.S., Germany, U.K., Netherlands, France, Japan, Singapore, Thailand, and Hong Kong.

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Trompenaars Cultural Dimensions

Universalism VS. Particularism

Particularism: belief that circumstances dictate how ideas

and practices should be applied and something cannot be done the same everywhere

In countries with high particularism, legal contracts often modified, well-acquainted people often change the way in which deals are executed Includes China and South Korea

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Trompenaars Cultural Dimensions

Individualism VS. Communitarianism

Individualism: people regard themselves as individuals

In countries high on individualism, people stress personal and individual matters, and are more likely to make negotiated decisions on the spot by a representative, achieve things alone and assume great personal responsibility Includes Canada, Thailand, U.K., U.S., Netherlands, France, Japan, China, Singapore, and Hong Kong

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Trompenaars Cultural Dimensions

Individualism a group

VS.

Communitarianism

Communitarianism: people regard themselves as part of

In countries high on communitarianism, people value group-related issues, refer decisions to committees, achieve things in groups and jointly assume responsibility Includes Malaysia and Korea

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Trompenaars Cultural Dimensions

Neutral VS. Emotional

Neutral: culture in which emotions are held in

In high neutral culture countries, people try not to show their feelings, act stoically and maintain their composure Includes Japan and the U.K.

Emotional: culture in which emotions are expressed openly and

naturally

In high emotional culture countries, people smile a great deal, talk loudly when excited and greet each other with enthusiasm Includes Mexico, the Netherlands and Switzerland

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Trompenaars Cultural Dimensions

Specific VS. Diffuse

Specific culture: individuals have a large public space

shared with others and a small private space they guard closely and share only with close friends and associates

In high specific cultures, people are more open and extroverted, and there is a strong separation of work and private life Includes Austria, U.K., U.S. and Switzerland

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Trompenaars Cultural Dimensions

Specific VS. Diffuse

Diffuse culture: public and private space are similar in

size, individuals guard public space carefully because it is shared with private space

In high diffuse cultures, people often appear to be indirect and introverted, and work and private life often are closely linked Includes Venezuela, China, and Spain

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Trompenaars Cultural Dimensions

Achievement VS. Ascription

Achievement culture: status is accorded based on how

well people perform their functions

Includes Austria, U.S., Switzerland and the U.K.

Ascription culture: status is based on who or what a

person is

Includes Venezuela, Indonesia, and China

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Trompenaars Cultural Dimensions

Time
Sequential approach

People do only one activity at a time, keep appointments strictly, prefer to follow plans as laid out (United States) Synchronous approach People tend to multi-task, view appointments as approximate, schedules are seen as subordinate to relationships (France, and Mexico) Present oriented/future oriented Future is more important (U.S., Italy, and Germany Present is more important (Venezuela, Indonesia, and Spain All three time periods equally important (France and Belgium)

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Trompenaars Cultural Dimensions

The Environment
Inner-directed: people believe in controlling outcomes

Includes U.S., Switzerland, Australia, Belgium, Indonesia, Hong Kong, Greece, Singapore, and Japan

Outer-directed: people believe on letting things take their

own course

Includes China and many other Asian countries