Cross-Cultural Management

1. Cross-Cultural Management 西安电子科技大学 杜 荣

2. Chapter 1 Meanings and Dimensions of Culture Outline • Chap1-1 Cross-cultural management • Chap1-2 Globalization • Chap1-3 Definitions of culture • Chap1-4 Nature of culture • Chap1-5 Cultural values • Chap1-6 Dimensions of culture • Chap1-7 Attitudinal Dimensions of Culture • Chap1-8 Trompenaars’ s Cultural Dimensions

3. Chap1-1 Cross-cultural management

4. What is Cross-Cultural Management? CCM is a fairly new field that is based on theories and research from: • Cross Cultural Psychology • International Business • Organizational Behaviour • Human Resources • Anthropology

5. Goals for Cross-Cultural Management Cross Cultural Management seeks to • understand how national cultures affect management practices • identify the similarities and differences across cultures in various management practices and organizational contexts • increase effectiveness in global management

6. Globalization Chap1-2

7. Globalization Like it or not, globalization is here…to stay. • Most large companies have some kind of business relations with customers, companies, employees or various stake-holders in other countries…and cultures. (Global corporations) • Many employees and managers deal with people from other cultures on a constant basis • Most of us have a close experience with only one or two cultures…=>

8. Globalization • We do not understand people from other cultures as readily and intuitively as people from our own culture => • Cross cultural management helps organization members to gain better understanding of other cultures, of their culture and of the consequences of people from different cultures working together

9. Definitions of culture Chap1-3

10. Culture Definition: acquired knowledge that people use to interpret experience and generate social behavior. Culture forms values, creates attitude, influences behavior.

11. Nature of culture Chap1-4

12. Culture Characteristics of culture include: • Learned • Shared • Transgenerational • Symbolic • Patterned • Adaptive

13. Cultural diversity (P4: Culture and types of handshake) • Cultural values (P5: Priorities of cultural values: US, Japan) (P5: examples where culture can affect management approaches) Depict cultural diversity through concentric circles.

14. Cultural values Chap1-5

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

16. Centralized vs. Decentralized decision making Informal vs. formal procedures Safety vs. risk High vs. low organizational loyalty Individual vs. group rewards Cooperation vs. competition Sort-term vs. long-term horizons Stability vs. innovation Management Approaches Affected by Cultural Diversity Cultural Diversity

17. Summary of what we learned last week • Introduction to the course of cross-cultural management and our international teaching team • Goals for Cross-cultural management • Nature of culture

18. We will learn today • A model of culture: concentric circles • Comparing culture as a normal distribution • Values in culture • Hofstede’s cultural dimensions

19. Explicit artifacts and products of the society Norms and values that guide the society Implicit, basic assumptions that guide people’s behavior A model of culture: concentric circles Outer layer: observable, e.g. language, food, buildings, art. Middle layer: helps people understand how they should behave. Inner layer: intangible, helpful for problem-solving and well interactions with other people.

20. Comparing Cultures as Overlapping Normal Distribution Chinese Culture U.S. Culture ? ?

21. Stereotyping from the Cultural Extremes: Brugha and Du’s research How Americans see the Chinese • in community • avoid confrontation (keep in harmony) • respect for authorities and seniors How Chinese see Americans • individualism • face confrontation (arguments and debates) • respect for achievements Chinese Culture U.S. Culture

22. Values in Culture Values: basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant. • Value differences and similarities across cultures: P 10: “common personal values” U.S. Values and possible alternatives • Values in transition: work values change over time.

23. Dominant Western Values in Workforce Career Stage Entered the Workforce Approximate Current Age Dominant Work Values Hard working; loyal to firm; conservative Nonconforming; seeks autonomy; loyal to self Ambitious, hard worker; loyal to career Flexible, values leisure; loyal to relationships 50 to 65 35 to 50 35 to 35 Under 25 1. Protestant Work Ethic 2. Existential 3. Pragmatic 4. Generation X Mid-1940s to Late 1950s 1960s to Mid-1970s Mid-1970s to Mid-1980s Mid-1980s through 1990s

24. Dimensions of culture Chap1-6

25. Hofstede’s Cultural Dimensions • Dutch researcher Geert Hofstede found there are four dimensions of culture. • Hofstede’s initial data: questionnaire surveys with over 116000 respondents from over 70 different countries who worked in the local subsidiaries of IBM. • The fifth dimension was added later. • Criticized because of its focus on just one company. • Popular in the research field of cross-cultural management.

26. Power Distance • Uncertainty Avoidance • Individualism • Masculinity • Long-Term Orientation Hofstede’s Five Cultural Dimensions

27. Power Distance:the extent to which less powerful members of organizations accept that power is distributed unequally. • Low: people treated as equals despite social status • High: people accept authority relations • Uncertainty avoidance:the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. • Low: prefer few formal rules • High: want clear behavioral guides

28. Individualism/collectivism:the tendency of people to look after themselves and their immediate family only (belong to groups or collectives and to look after each other in exchange for loyalty). • Low: group behavior important • High: individual behavior important A bipolar continuum Individualism Individualism Individualism Collectivism Collectivism

29. Masculinity/femininity:a situation in which the dominant values in society aresuccess, money, and things (caring for others and the quality of life). • Low: cooperation; friendly atmosphere; employment security; low stress; warm interpersonal relationships. • High: competition; challenge; recognition; wealth; advancement; high stress; tight control. A continuum Masculinity Femininity

30. Long–term orientation:value placed on persistence, status, thrift • Low: respect for tradition, personal stability, focused on the past • High: perseverance, thrift, focused on the future This dimension was added to depict the influence of Confucianism in Asia. This dimension is similar to “Adjusting” proposed by Brugha and Du.

31. Examples of Cultural Dimensions * A low score is synonymous with collectivism ** A low score is synonymous with masculinity *** A low score is synonymous with a short-term orientation

32. Additional Frameworks Two additional perspectives, of social/cross-cultural psychologists merit attention: Markus & Kitayama: Independent & Interdependent Construals Triandis: Individualism-Collectivism

33. Vertical & Horizontal Individualism & Collectivism Harry Triandis: Combination of Individualism vs. collectivism and power & achievement vs. benevolence & universalism • VI: achievement + individualism (USA) • HI: universalism + individualism (Sweden) • VC: power + collectivism (India) • HC: benevolence + collectivism (Israel; rare)

34. Schwartz’s Values • Universalism • Benevolence • Conformity & tradition • Security • Power • Achievement • Hedonism • Stimulation • Self Direction

35. Schwartz’s Value Map

36. Empirical test of the Theory • 75,000 + respondents, varied samples in 68 countries • Instrument lists 57 abstract value items • “How important is each item as a guiding principle in your life?”

37. Tasks in the next session: • Students’ talks and presentations • Discussion in groups: how to learn Cross-cultural management? Assignment after class: Read a paper on Hofstede’s cultural dimensions.

38. Preview • Integrating Hofstede’s cultural dimensions • Attitudinal dimensions of culture • Trompenaars’s cultural dimensions • Integrating culture and management

39. Chap1-7 Attitudinal Dimensions of Culture Work Value and Attitude Similarities • Research has revealed many similarities in both work values and attitudes • Ronen and Kraut • Smallest space analysis (SSA) - maps the relationship among countries by showing the distance between each on various cultural dimensions • Can identify country clusters • Ronen and Shenkar • Examined variables in four categories • Importance of work goals • Need deficiency, fulfillment, and job satisfaction • Managerial and organizational variables • Work role and interpersonal orientation

40. A Synthesis of Country Cultures

41. GLOBE Project • Multi-country study and evaluation of cultural attributes and leadership behavior • Are transformational characteristics of leadership universally endorsed? • 170 country co-investigators • 65 different cultures • 17,500 middle managers 800 organisations

42. GLOBE Project • What traits are universally viewed as impediments to leadership effectiveness? • 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

43. GLOBE Cultural Variable Results Variable Highest Medium Lowest Ranking Ranking Ranking Assertiveness Spain, U.S. Egypt, Ireland Sweden, New Zealand Future orientation Denmark, Canada Slovenia, Egypt Russia, Argentina Gender differentiation South Korea, Italy, Brazil Sweden Denmark Egypt Uncertainty avoidance Austria, Denmark Israel, U.S. Russia, Hungary Power distance Russia, Spain England, France Demark, Netherlands Collectivism/Societal Denmark, Hong Kong, U.S. Greece, Hungary Singapore In-group collectivism Egypt, China England, France Denmark, Netherlands Performance orientation U.S., Taiwan Sweden, Israel Russia, Argentina Humane orientation Indonesia, Egypt Hong Kong, Germany, Spain Sweden

44. Chap1-8 Trompenaars’ Cultural Dimensions • Research produced five cultural dimensions that are based on relationship orientations and attitudes toward both time and the environment • Universalism vs. Particularism • Universalism - belief that ideas and practices can be applied everywhere in the world without modification • Focus on formal rules and rely on business contacts • Particularism - belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere • Focus on relationships, working things out to suit the parties

45. Trompenaars’ Cultural Dimensions (cont.) • Individualism vs. Communitarianism • Individualism - people regard themselves as individuals • Rely on individuals to make decisions • Communitarianism - people regard themselves as part of a group • Seek consultation and mutual consent before making decisions • Neutral vs. Emotional • Neutral - culture in which emotions are held in check • People try not to show their feelings • Emotional - culture in which emotions are expressed openly and naturally • People smile, talk loudly, greet each other with enthusiasm

46. Trompenaars’ Cultural Dimensions (cont.) • Specific vs. Diffuse • Specific - culture in which individuals have a large public space they readily share with others and a small private space they guard closely and share with only close friends and associates • People often are open and extroverted • Work and private life are separate • Diffuse - culture in which both public and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well • People often appear indirect and introverted, and work and private life often are closely linked

47. Trompenaars’ Cultural Dimensions (cont.) • Achievement vs. Ascription • Achievement - culture in which people are accorded status based on how well they perform their functions • Ascription - culture in which status is attributed based on who or what a person is • For example, status may be accorded on the basis of age, gender, or social connections • Time • Sequential approach to time - people do one thing at a time, keep appointments strictly, follow plans to the letter • Synchronous approach - people do more than one thing at a time, appointments are approximate

48. Trompenaars’ Cultural Dimensions (cont.) • Environment • Inner-directed • People believe in controlling environmental outcomes • Outer-directed • People believe in allowing things to take their natural course • Cultural Patterns or Clusters • Defined groups of countries that are similar to each other in terms of the five dimensions and the orientations toward time and the environment

49. Anglo cluster Relationship United States United Kingdom Trompenaars’ Cultural Groups Individualism x x Communitarianism Specific relationship x x Diffuse relationship Universalism x x Particularism Neutral relationship x Emotional relationship x Achievement x x Ascription

50. Asian cluster Relationship Japan China Indonesia Hong Kong Singapore Trompenaars’ Cultural Groups Individualism Communitarianism x x x x x Specific relationship Diffuse relationship x x x x x Universalism Particularism x x x x x Neutral relationship x x x x Emotional relationship x Achievement Ascription x x x x x