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WHAT IS CULTURE?. Culture is the pervasive and shared beliefs , norms , values , and symbols that guide everyday life Transmitted by symbols, stories and rituals Often taken-for-granted. NATIONAL. CULTURE. BUSINESS. CULTURE. ORGANIZATION. OCCUPATIONAL. CULTURE. CULTURE.
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WHAT IS CULTURE? • Culture is the pervasive and sharedbeliefs, norms, values, and symbols that guide everyday life • Transmitted by symbols, stories and rituals • Often taken-for-granted
NATIONAL CULTURE BUSINESS CULTURE ORGANIZATION OCCUPATIONAL CULTURE CULTURE MULTINATIONAL MANAGEMENT
TWO DIAGNOSTIC MODELS TO UNDERSTAND CULTURAL DIFFERENCES • Value Orientations Model • Hofstede’s Model of National Culture
HIGH POWER DISTANCE NORMS, VALUES, AND BELIEFS • Inequality is good • Everyone has a place • People should depend on a leader • The powerful are entitled to privileges • The powerful should not hide their power
UNCERTAINTY AVOIDANCENORMS, VALUES, AND BELIEFS • Avoid conflict • Low tolerance of deviant people and ideas • Respect for laws and rules • Experts and authorities are usually correct • Consensus is important
INDIVIDUALISM NORMS, VALUES, AND BELIEFS • People are responsible for themselves • Individual achievement is ideal • People are not emotionally dependent on organizations or groups
COLLECTIVISM HAVE NORMS, VALUES, AND BELIEFS • Self identity based on group membership • A belief that group decision making is best • A belief that groups protect you in exchange for loyalty
MASCULINITY NORMS, VALUES, AND BELIEFS • Clear definitions of gender roles • Men are assertive and dominant • Support for Machismo • Men should be decisive • Work is priority • Growth, success, and money are important
LONG TERM (CONFUCIAN) ORIENTATION • Belief in substantial savings • Willingness to invest • Acceptance of slow results • Persistence to achieve goals • Sensitivity to social relationships • Pragmatic adaptation
EXHIBIT 1 HOFSTEDE’S VALUE DIMENSIONS BY COUNTRIES • Anglo cultures (US, GB, Australia) • High on individualism and masculinity, low on power distance and uncertainty avoidance
Latin European • High uncertainty avoidance • Nordic • Low masculinity • Far Eastern • high power distance, low individualism