Understanding the Role of Culture

1. Understanding the Role of Culture Chapter 3

2. What is Culture? • The culture of a society comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations.

3. DEFINITIONS OF CULTURE Culture is something - • shared by all or almost all members of some social group; • passed on to the younger members by the older members; • shapes behavior, or structures one’s perception of the world. ----- Carrol (1982) The collective programming of the mind which distinguishes the members of one group or category of people from another. ----- Hofstede (1980)

4. Nature of Culture • Learned • Shared • Transgenerational • Symbolic • Patterned • Adaptive

5. INFLUENCE OF CULTURE ON BEHAVIOR Values Culture Attitudes Behaviors Source: Adler (1991)

6. Values in Culture 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

7. Values in Culture 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

8. Values in Culture 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.

9. Environmental Variables Affect Management NationalSociolocultural Economic Physical Religion Legal Technological Education Political know-how Language CulturalAttitudes Values Work Individualism Norms Time Change Beliefs Materialism Employee Job Behavior Motivation Commitment Productivity Ethics

10. Cultural Orientations---Individual • What is the basic nature of people? * GOOD: People are generally to be trusted * EVIL: People are not to be trusted without prior knowledge of them * CHANGEABLE/UNCHANGEABLE: Kluckhoha & Strodtbeck (1961)

11. Cultural Orientations---World • What is our basic relationship to the environment around us ? * MASTERY: To control and master nature and the environment around us. * HARMONY: To be part of and to maintain the balance of forces in the world around us. * SUBJUGATION: To follow our predetermined path and obey the natural and supernatural forces around us.

12. Cultural Orientations---Human Relations • What is the natural relationships among humans? * INDIVIDUAL: Our main responsibility is to and for ourselves and immediate family. * COLLECTIVE: Our main responsibility is to and for a large group of people. * HIERARCHY: Power and responsibility are unequally distributed, with those having power over others also having responsibility for them.

13. Cultural Orientations---Activity • What is human’s naturally preferred of activity? * DOING: To constantly work to achieve goals. * BEING: To be spontaneous, do things in their own time, and live life to its fullest. * THINKING: To be rational, think things through carefully and thoroughly before acting.

14. Cultural Orientations---Time • What is human’s orientation to time? * PAST: The past serves as the best precedent for the present and future and past experience is the most important criterion by which to make decisions. * PRESENT: Current and short-term future needs provide the most important criteria by which to make decisions. * FUTURE: Long-term future goals are most important, and current needs should be sacrificed willingly for future gains.

15. Cultural Orientations---Space • What is human orientation to space? * PRIVATE: Space and its contents belong to people, territories are important, and people cannot freely enter each other’s territories. * PUBLIC: Space and its contents belong to no one in particular and can be used by everyone freely.

16. Strengths of the Model • In general terms, cultures can be compared along distinct orientations; • Comparative models apply to cross-cultural management.

17. Weaknesses of the Model • The orientations and variations are imprecisely defined; • Interpretations are bound to be subjective. • Not centrally concerned with management studies, and did not describe the implications for management.

18. DIMENSIONS OF CULTURE BY HOFSTEDE • Power Distance • Individualism vs. Collectivism • Masculinity vs. Femininity • Uncertainty Avoidance • Long-term vs. Short-term Based on the survey of more than 116,000 managers and employees in over 60 countries (Hofstede, 1980) and the research by the Chinese Culture Connection team (1987).

19. POWER DISTANCE The extent to which the members of a society accept that power in institutions and organizations is distributed unequally.

20. High Power Distance • Managers should be careful not to ask the opinions of subordinates too frequently, otherwise the manager might appear to be weak and incompetent; • Higher level managers should receive more benefits and privileges than lower level managers; • Managers should make most decisions without consulting subordinates.

21. Small power distance Hierarchy - inequality of roles Decentralization Subordinates expect to be consulted Ideal boss is a resourceful democrat Large power distance Hierarchy - existential inequality Centralization Subordinates expect to be told what to do Ideal boss is a good father POWER DISTANCE IN THE WORKPLACE

22. INDIVIDUALISM VS. COLLECTIVISM Individualism relates to “societies in which the ties between individuals are loose”. Collectivism pertains to societies in which people are “integrated into strong, cohesive ingroups”

23. Collectivism • It is important for a manager to encourage loyalty and a sense of duty in subordinates; • Being an accepted member of the group is more important than having autonomy and independence on the job; • Individual rewards are not as important as group welfare; • Group success is more important than individual success.

24. Collectivist Relationship is perceived in moral terms Management of groups Relationship more important than task Reward given to the group Individualist Relationship is a contract based on mutual advantage Management of individuals Task more important than relationship Reward linked to individual’s performance INDIVIDUALISM AND COLLECTIVISM IN THE WORKPLACE

25. Masculinity/Femininity Masculinity is the extent to which the dominant values in society emphasize assertiveness and the acquisition of money and things. Femininity is the extent to which the dominant values in society emphasize relationships among people, concern for others, and the overall quality of life.

26. Masculinity • It is more important for men to have a professional career than it is for women. • Women do not value recognition and promotion in their work as much as men do. • It is preferable to have a man in higher level position rather than a woman. • There are some jobs in which a man can always do better than a woman.

27. Feminine Work in order to live Stress on equality and quality of work life Managers use intuition and strive for consensus Resolution of conflicts by compromise and negotiation Masculine Live in order to work Stress on equity, competition, and performance Managers expect to be decisive and assertive Resolution of conflicts by fighting them out MASCULINITY/FEMININITY IN WORKPLACE

28. Uncertainty Avoidance The extent to which the people in a society feel threatened by ambiguous situations, and have created beliefs and institutions that try to avoid these.

29. Strong Uncertainty Avoidance • It is important to have job requirements and instructions spelled out in details so that people always know what they are expected to do. • It is better to have a bad situation that you know about than to have an uncertain situation which might be better. • People should avoid making changes because things could get worse.

30. Weak UA No more rules than is strictly necessary Time is a framework for orientation Comfortable feeling when lazy Motivation by achievement and esteem Strong UA Emotional need for rules Time is money Inner urge to work hard Motivation by security and esteem or belongingness UNCERTAINTY AVOIDANCE IN WORKPLACE

31. Long-Term vs. Short-Term Orientation The degree of values oriented towards the future or towards the past and present.

32. Short-Term Respect for social and status obligations regardless of cost Small savings quote Concern with possessing the truth Respect for traditions Long-Term Respect for social and status obligation within limits Large savings quote Concern with respecting the demands of Virtue Adaptation of traditions to a modern context Key Differences between Long-Term and Short-Term Orientation Societies

33. Weaknesses of Hofstede’s Model • It assumes that national territory and the limits of the culture correspond. • The respondents worked within a single industry and a single multinational. • Inappropriate assumption of bipolarity in two dimensions: Individualism and masculinity.

34. Strengths of Hofstede’s Model • The information populations controlled across countries. • The four dimensions tap into deep cultural values and make significant comparisons between national cultures. • The connotations of each dimension are highly relevant. • No other study compares so many cultures in so much details.

35. Trompenaars’ Cultural Dimensions • Trompenaar’s research was conducted over a 10-year period and published in 1994. • He gathered data from 15,000 managers from 28 countries, representing 47 national cultures.

36. 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

37. 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

38. 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., and U.S. Individualism Communitarianism

39. 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 Singapore, Malaysia and Korea Individualism Communitarianism

40. 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. • Affective: 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 and China Neutral Affective

41. 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 U.K., U.S. and France Specific Diffuse

42. 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 China and Spain Specific Diffuse

43. Trompenaars’ Cultural Dimensions VS. • Achievement culture: status is accorded based on how well people perform their functions • Includes U.S., Switzerland and the U.K. • Ascription culture: status is based on who or what a person is • Includes Spain, Japan, and China Achievement Ascription

44. 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

45. 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

46. GLOBE Project • The GLOBE (Global Leadership and Organizational Behavior Effectiveness) • Multi-country study and evaluation of cultural attributes and leadership behavior • Dimensions are based on data gathered by 170 researchers over seven years. The data were collected from 18,000 managers in sixty-two countries.

47. GLOBE Project • 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

48. GLOBE Project: Nine Dimensions • Assertiveness • Future orientation • Performance orientation • Humane orientation • Gender differentiation • Uncertainty avoidance • Power distance • Institutional collectivism vs. individualism • In-group collectivism

49. GLOBE Dimensions • Assertiveness concerns how much people are expected to be tough, confrontational, and competitive versus modest and tender. Low assertiveness countries have sympathy for the weak and emphasize loyalty and solidarity. • Low: Sweden, New Zealand, Switzerland • High: Greece, Austria, Germany

50. GLOBE Dimensions • Performance orientation concerns the importance of performance improvement and excellence and refers to whether people are encouraged to strive for continued improvement. Low performance orientation countries place priority on things like tradition, loyalty, family, and background. They associate competition with defeat. • Low: Russia, Argentina, Greece • High: New Zealand, Hong Kong, Singapore