Cross cultural management 5e by cullen CH02

Chapter Culture and Multinational Management © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Learning Objectives •• Define Define culture culture and and understand understand the the basic basic components components ofof culture culture •• Identify Identify instances instances ofof cultural cultural stereotyping stereotyping and and ethnocentrism ethnocentrism •• Understand Understand how how various various levels levels ofof culture culture influence influence multinational multinational operations operations © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Learning Objectives •• •• Understand Understand the the Hofstede, Hofstede, GLOBE, GLOBE, and and 7d 7d models models Appreciate Appreciate the the complex complex differences differences among among cultures cultures and and use use these these differences differences for for building building better better organizations organizations •• Recognize Recognize the the complexity complexity ofof understanding understanding new new cultures cultures and and the the dangers dangers ofof stereotyping stereotyping and and cultural cultural paradoxes paradoxes © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part What is Culture? •• Pervasive Pervasive and and shared shared beliefs, beliefs, norms, norms, values, values, and and symbols symbols that that guide guide everyday everyday life life •• Cultural Cultural norms: norms: both both prescribe prescribe and and proscribe proscribe behaviors behaviors •• What What we we should should do and and what what we we cannot cannot do •• Cultural Cultural values: values: what what isis good/beautiful/holy good/beautiful/holy and and what what are are legitimate legitimate goals goals for for life life © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part What is Culture? (cont.) •• Cultural Cultural beliefs: beliefs: represent represent our our understandings understandings about about what what isis true true •• Cultural Cultural symbols, symbols, stories, stories, and and rituals: rituals: communicate communicate the the norms, norms, values, values, and and beliefs beliefs ofof aa society society or or aa group group toto its its members members •• Culture Culture isis pervasive pervasive inin society: society: affects affects all all aspects aspects ofof life life •• Culture Culture isis shared: shared: similarity similarity inin values, values, beliefs, beliefs, norms norms © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Culture: Front Stage & Back Stage •• Front Front stage stage ofof culture: culture: easily easily observable observable aspect aspect ofof culture culture •• E.g., E.g., Japanese Japanese executive executive bows bows or or North NorthAmerican American robust robust handshake handshake •• Back Back stage stage ofof culture: culture: only only insiders insiders or or members members ofof the the culture culture understand understand other other aspects aspects ofof culture culture •• E.g., E.g., Japanese Japanese saying saying “it’s “it’s difficult” difficult” and and twisting twisting head head toto one one side side really really means means it’s it’s impossible impossible © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Three Levels of Culture 1.1 National National culture: culture: the the dominant dominant culture culture within within the the political political boundaries boundaries ofof the the nation-state nation-state 2.2 Business Business culture: culture: norms, norms, values, values, and and beliefs beliefs that that pertain pertain toto all all aspects aspects ofof doing doing business business inin aa culture culture –– Tells Tells people people the the correct, correct, acceptable acceptable ways ways toto conduct conduct business business inin aa society society © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Three Levels of Culture (cont.) 3.3 Occupational Occupational and and organizational organizational culture culture •• Occupational Occupational culture: culture: the the norms, norms, values, values, beliefs, beliefs, and and expected expected ways ways ofof behaving behaving for for people people inin the the same same occupational occupational group group •• Organizational Organizational culture: culture: the the set set ofof important important understandings understandings that that members members ofof an an organization organization share share © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 2.1: Three Levels of Culture © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Cultural Differences and Basic Values •• Three Three diagnostic diagnostic models models toto aid aid the the multinational multinational manager: manager: •• Hofstede Hofstede model model ofof national national culture culture •• Global Global Leadership Leadership and and Organizational Organizational Behavior Behavior Effectiveness Effectiveness (GLOBE) (GLOBE) project project •• 7d 7d culture culture model model © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 2.12: Managerial Implications of Universalism/Particularism © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Individualism vs Collectivism •• •• Similar Similardistinctions distinctionstotoHofstede’s Hofstede’sview view Collectivist Collectivistsocieties societies-•• People Peopledefined definedby bygroup groupmemberships membershipssuch suchas asfamily family •• Responsibility, Responsibility,achievement, achievement,and andrewards rewardsare aregroup-based group-based •• Individualist Individualistsocieties societies-•• People Peopletrained trainedtotobe beindependent independent •• Assume Assumeindividual individualresponsibility responsibilityfor forsuccess successor orfailure failure © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 2.13: Managerial Implications of Individualism/Collectivism © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Neutral vs Affective •• •• Concerns Concerns acceptability acceptability ofof expressing expressing emotions emotions Neutral Neutral -•• Interactions Interactions are are objective objective and and detached detached •• Focus Focus isis on on tasks tasks rather rather than than emotional emotional nature nature ofof interaction interaction •• Affective Affective -•• Emotions Emotions are are appropriate appropriate inin all all situations situations •• Prefer Prefer toto find find immediate immediate outlet outlet for for emotions emotions © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 2.14: Managerial Implications of Neutral vs Affective © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Specific vs Diffuse •• Extent Extent toto which which an an individual’s individual’s life life isis involved involved inin work work relationships relationships •• Specific Specific -•• Business Business segregated segregated from from other other parts parts ofof life life •• Contracts Contracts often often prescribe prescribe and and delineate delineate relationships relationships •• Diffuse Diffuse -•• Business Business relationships relationships encompassing/inclusive encompassing/inclusive •• Private Private and and segregated segregated space space isis small small © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 2.15: Managerial Implications of Specific vs Diffuse © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Achievement vs Ascription •• •• Manner Manner inin which which society society gives gives status status Achievement Achievement -•• People People earn earn status status based based on on performance performance and and accomplishments accomplishments •• Ascription Ascription -•• Characteristics Characteristics or or associations associations define define status status •• E.g., E.g., status status based based on on schools schools or or universities universities © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 2.16: Managerial Implications of Achievement vs Ascription © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Time Orientation Time Time Horizon: Horizon: How How cultures cultures deal deal with with the the past, past, present present and and future future •• Future-oriented Future-oriented societies, societies, such such as as the the U.S., U.S., consider consider organizational organizational change change as as necessary necessary and and beneficial beneficial Believe Believe aa static static organization organization isis aa dying dying organization organization •• Past-oriented Past-oriented societies societies assume assume that that life life isis predetermined predetermined based based on on traditions traditions or or will will ofof God God Revere Revere stability stability and and are are suspicious suspicious ofof change change © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 2.17: Managerial Implications of Time Horizon © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Internal vs External Control •• •• Concerned Concerned with with beliefs beliefs regarding regarding control control ofof one’s one’s fate fate Best Best reflected reflected with with how how people people interact interact with with the the environment environment •• Does Does nature nature dominate dominate us us or or do we we dominate dominate nature? nature? •• InIn societies societies where where people people dominate dominate nature, nature, managers managers are are more more proactive proactive and and believe believe situations situations can can be be changed changed © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 2.18: Managerial Implications of Internal vs External © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Caveats and Cautions •• Stereotyping: Stereotyping: assumes assumes that that all all people people within within one one culture culture behave, behave, believe, believe, feel, feel, and and act act the the same same •• Ethnocentrism: Ethnocentrism: occurs occurs when when people people from from one one culture culture believe believe that that theirs theirs are are the the only only correct correct norms, norms, values, values, and and beliefs beliefs •• Cultural Cultural Intelligence: Intelligence: ability ability toto interact interact effectively effectively inin multiple multiple cultures cultures •• Cultural Cultural relativism: relativism: all all cultures, cultures, no no matter matter how how different, different, are are correct correct and and moral moral for for the the people people ofof those those cultures cultures © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Conclusion •• Chapter Chapter provides provides understanding understanding ofof various various ways ways toto understand understand national national cultures cultures •• Sensitize Sensitize toto complex complex and and subtle subtle influences influences ofof culture culture on on multinational multinational management management •• Variety Variety ofof cultural cultural levels levels affect affect multinational multinational managers managers •• Astute Astute managers managers realize realize that that understanding understanding cultures cultures isis aa never-ending never-ending learning learning process process © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ... What is Culture? (cont.) •• Cultural Cultural beliefs: beliefs: represent represent our our understandings understandings about about what what isis true true •• Cultural Cultural symbols, symbols,... Hofstede’s model model include: include: •• 1.1 Human Human resources resources management management •• Management Management selection selection •• Training Training •• Evaluation Evaluation and... accessible website, in whole or in part Hofstede’s Model Applied to Organizations and Management •• Management Management practices practices considered considered inin the the discussion discussion