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

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

2. The Role of Culture The specific objectives of this chapter are: DEFINE the term culture, and discuss some of the comparative ways of differentiating cultures. DESCRIBEthe concept of cultural values, and relate some of the international differences, similarities, and changes occurring in terms of both work and managerial values.

3. The Role of Culture The specific objectives of this chapter are: IDENTIFY the major dimensions of culture relevant to work settings, and discuss their effect on behavior in an international environment. DISCUSS the value of country cluster analysis and relational orientations in developing effective international management practices.

4. The Nature of Culture • Culture • Acquired knowledge that people use to interpret experience and generate social behavior • forms values • creates attitudes • influences behavior.

5. Characteristics of Culture Learned Adaptive Shared Culture Patterned Transgenerational Symbolic

6. Priorities of Cultural Values Table 4-1 Priorities of Cultural Values: United States, Japan, and Arab Countries United States Japan Arab Countries • Freedom • Independence • Self-reliance • Equality • Individualism • Competition • Efficiency • Time • Directness • Openness • Belonging • Group harmony • Collectiveness • Age/seniority • Group consensus • Cooperation • Quality • Patience • Indirectness • Go-between • 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

7. How Culture Affects Managerial Approaches Centralized Decision Making Decentralized Decision Making VS. 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.

8. How Culture Affects Managerial Approaches VS. 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. Safety Risk

9. How Culture Affects Managerial Approaches Individual Rewards Group Rewards VS. 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.

10. How Culture Affects Managerial Approaches Informal Procedures Formal Procedures VS. In some societies, much is accomplished through informal means. In others, formal procedures are set forth and followed rigidly.

11. How Culture Affects Managerial Approaches High Organizational Loyalty Low Organizational Loyalty VS. 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.

12. How Culture Affects Managerial Approaches VS. Some societies encourage cooperation between their people. Others encourage competition between their people. Cooperation Competition

13. How Culture Affects Managerial Approaches Short-term Horizons Long-term horizons VS. 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 technologic development.

14. How Culture Affects Managerial Approaches Stability Innovation VS. The culture of some countries encourages stability and resistance to change. The culture of others puts high value on innovation and change.

15. 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 people’s behavior Adapted from Figure 4–1: A Model of Culture

16. 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 • Influence one’s behavior • Differences in cultural values may result in varying management practices

17. Values in Culture French culture U.S. culture Adapted from Figure 4–2: Comparing Cultures as Overlapping Normal Distributions

18. Values in Culture French culture U.S. culture How the Americans see the French: How the French see the Americans: • arrogant • flamboyant • hierarchical • emotional • naïve • aggressive • unprincipled • workaholic Adapted from Figure 4–3: Stereotyping from the Cultural Extremes

19. Values in Culture Table 4-2 U.S.Values and Possible Alternatives U.S. Cultural Values Alternative Values Examples of Management Function Affected Individuals can influence the future (when there is a will there is a way). Life follows a preordained course, and, human action is determined by the will of God. Planning and scheduling Individuals should be realistic in their aspirations. Ideals are to be pursued regardless of what is “reasonable.” Goal setting and career development We must work hard to accomplish our objectives (Puritan ethic). Hard work is not the only prerequisite for success. Wisdom luck, and time also are required. Motivation and reward system Adapted from Table 4-2: U.S. Values and Possible Alternatives

20. Values in Culture Table 4-2 U.S.Values and Possible Alternatives U.S. Cultural Values Alternative Values Examples of Management Function Affected A primary obligation of an employee is to the organization. Individual employees have a primary obligation to their family and friends. Loyalty, commitment, and motivation 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. Promotion Company information should be available to anyone who needs it within the organization. Withholding information to gain or maintain power is acceptable. Organization, communication, and managerial style Adapted from Table 4-2: U.S. Values and Possible Alternatives

21. Values in Culture Table 4-2 U.S.Values and Possible Alternatives U.S. Cultural Values Alternative Values Examples of Management Function Affected Competition stimulates high performance. Competition leads to unbalances and disharmony. Career development and marketing What works is important.. Symbols and the process are more important than the end point. Communication, planning, and quality control. Adapted from Table 4-2: U.S. Values and Possible Alternatives

22. 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 • Relatively passive roles in interacting with others

23. Hofstede’s Cultural Dimensions • 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 • Low power distance countries: flatter and decentralized organization structures, smaller ratio of supervisors Power Distance

24. Hofstede’s Cultural Dimensions • 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 Power Distance Uncertainty Avoidance

25. Hofstede’s Cultural Dimensions • 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, less individual initiative, promotions based on seniority Power Distance Uncertainty Avoidance Individualism/Collectivism

26. Hofstede’s Cultural Dimensions • 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 environment. Low stress and more employee freedom. Power Distance Uncertainty Avoidance Individualism/Collectivism Masculinity/ Femininity

27. Attitudinal Dimensions of Culture • Work value and attitude similarities • Smallest space analysis (SSA) yields clusters of countries similar to each other • Anglo-American (U.S., U.K., Australia) • Nordic (Norway, Finland, Denmark) • South American (Venezuela, Mexico, Chile) • Latin European (France, Belgium) • Germanic (Germany, Austria, Switzerland) • Other researchers have found other clusters, depending on variables used

28. Synthesis of Country Clusters Adapted from Figure 4–8: A Synthesis of Country Clusters

29. Trompenaars’ Cultural Dimensions VS. • 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. Universalism Particularism

30. Trompenaars’ Cultural Dimensions VS. • 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 Universalism Particularism

31. Trompenaars’ Cultural Dimensions VS. • 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 Individualism Communitarianism

32. Trompenaars’ Cultural Dimensions VS. • Communitarianism: people regard themselves as part of a group • 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 Individualism Communitarianism

33. Trompenaars’ Cultural Dimensions VS. • 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 Neutral Emotional

34. Trompenaars’ Cultural Dimensions VS. • 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 Specific Diffuse

35. Trompenaars’ Cultural Dimensions VS. • 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 Specific Diffuse

36. Trompenaars’ Cultural Dimensions VS. • 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 Achievement Ascription

37. Trompenaars’ Cultural Dimensions • 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) Time

38. Trompenaars’ Cultural Dimensions • 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 The Environment

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

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 working 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.

41. GLOBE Project • Multi-country study and evaluation of cultural attributes and leadership behavior • Based on beliefs that • Certain attributes that distinguish one culture from others can be used to predict the most suitable, effective and acceptable organizational and leader practices within that culture • Societal culture has direct impact on organizational culture • Leader acceptance stems from tying leader attributes and behaviors to subordinate norms

42. GLOBE Project

43. GLOBE Analysis

44. Cases A Jumping Off Place (pg. 123) Corning Vitro (pg. 211)