international soco-cultural environment

8/13/2019 International Soco-Cultural Environment

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Lecture 7

International Socio-Cultural

Environment


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Session Outline

Definitions Elements of Culture

Corporate Culture

Importance of Culture in Different BusinessContext

Managing Cultural Diversity


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Definitions

Culture:the sum total of the beliefs, rules,techniques, institutions and artifacts that characterize

human populations or the collective programming of

the mind.

Socialization Process:The process of enculturation or

the adoption of the behaviour patterns of the

surrounding culture.


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World population percentages in terms of home

region, language and religion

Sources: www.census.gov; www.adherents.com


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Language

Language is critical to culture because it is theprimary means used to transmit information and

ideas.

Knowledge of local language can:

permit a clearer understanding of a situation;

provide access to local people;

allows the person to pick up nuances, impliedmeanings, and other information that is not stated

outright.


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Religion

Religions influence lifestyles, beliefs, values andattitudes and can have a dramatic effect on the way

people in a society act toward each other and towards

those in other societies.

Religion also influences:

the work habits of people;

the work and social customs (from the days of theweek on which people work to their dietary habits);

politics and business.


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Values and Attitudes

Values:basic convictions that people have regardingwhat is right and wrong, good and bad, important

and unimportant.

Attitude:a persistent tendency to feel and behave in

a particular way toward some object.


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Customs and Manners

Customs: common or established practices.

Manners:behaviour regarded as appropriate in

a particular society.


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Corporate Culture

Corporate culture is a term used to characterise, howthe managers and employees of particular companiestend to behave.

Corporate culture is also used by human resourcemanagers and senior management in their attempts toproactively shape the kind of behaviour (innovative,open, dynamic, etc.) they hope to nurture in theirorganizations.

Promoting a distinctive corporate culture is alsoexpected to enhance the sense of community andshared identity that underpins effective organizations.


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Influences of Culture on Management

Work attitudes

For example, work ethics, organizationcommitment, etc.

Achievement motivation

The desire to accomplish objectives andachieve success.

Time and future

For example: punctuality, decision-making time

constraints, time expectations on implementationof plans, etc.

Ethics

Standards of conduct and morality.


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Cross Cultural Management issues

Within a firm: Work attitudes, achievementmotivation, time and future and ethics, etc.

Between firms: M&As, joint ventures, alliances

and buyer-supplier relationships. Between a firm and customers: Dealing with

customers.

Cf.) Dealing with national institutions.


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Cross-cultural business contexts


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Two Approaches to Culture

The psychic or psychological level, whichfocuses on the internalised norms, attitudes

and behaviour of individuals from a particular

culture;

the institutional level, which looks at national

(or group) cultureembodied

in institutions(government, education, economic institutions

as well as in business organizations).


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Geert HofstedesFour Cultural Dimensions

Power distance:measures the degree to whichless powerful members of organizations and

institutions accept the fact that power is not

distributed equally.

Uncertainty avoidance:measures the extent to

which people feel threatened by ambiguoussituations and have created institutions and

beliefs for minimizing or avoiding those

uncertainties.


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Hofstedespower distance against individualism for 20 countries

Source: Hofstede, G. (1983). The cultural relativity of

organizational practices and theories, Journal of International

Business Studies, Fall, p. 92. Copyright Geert Hofstede


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Individualism:

The tendency of people to look after

themselves and their immediate family only.

Collectivism

The tendency of people to belong to groups

who look after each other in exchange for

loyalty.

Individualism vs. Collectivism


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Masculinity

The degree to which the dominant values of

a society are success, money and material

goods.

Femininity

The degree to which the dominant values of

a society are caring for others and the quality

of life.

Masculinity vs. Femininity


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Fons Trompenaars Seven

Cultural Dimensions

1.Universalism vs. Particularism Universalism: the belief that ideas and practices can

be applied everywhere in the world without

modification.

Particularism:the belief that circumstances dictate

how ideas and practices should be applied and

something cannot be done the same everywhere.


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2. Individualism vs. collectivism: centres on whether

individual rights and values are dominant or

subordinate to those of the collective society.

3. Neutral culture vs. emotionalculture:

Neutral culture:A culture in which emotions are held

in check.

Emotional culture: A culture in which emotions are

expressed openly and naturally.


Cultural Dimensions


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4. Specific vs. Diffuse: measures whether workrelationships (e.g. the hierarchical relationshipbetween a senior manager and a subordinate)are workplace specific or extend (diffuse) into

the social context outside the workplace.

5. Achievement vs. Ascription: measures

whether ones status within organizations isbased on merit (achieved) or on class,gender, education or age (ascribed).


Cultural Dimensions


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6. Attitudes toward time Sequential:cultures that view time in a

sequential or linear fashion; order comes

from separating activities andcommitments.

Synchronic:cultures that view events inparallel over time; order comes from

coordinating multiple activities and

commitments.


Cultural Dimensions


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7. Attitudes toward the environment:measures the emphasis, a particular

culture places on peoples relationship

with nature and the natural environment.


Cultural Dimensions


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The GLOBE projects Nine

Dimensions of culture

1. Assertiveness.2. Future orientation:A propensity for planning,

investing, and delayed gratification.

3. Gender differentiation:The degree to which genderrole differences are maximized.

4. Uncertainty avoidance:A reliance on societal norms

and procedures to improve predictability, a

preference for order, structure and formality.

5. Power distance.


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6. Institutional collectivism:individualism vs.collectivism.

7. In-group/family collectivism:A pride in small-

group membership, family, close friends etc.8. Performance orientation:(much like

achievement orientation).

9. Humane orientation:An emphasis on fairness,altruism and generosity.

The GLOBE projects Nine

Dimensions of Culture


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Management Dimensions of Culture


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Organization Types Reflecting Cultural

Predispositions


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Culture Embodied in National Institutions

Western Pluralism: emphasizes individualcompetitiveness, commonly represented byseparate ventures competing in price-definedmarkets for success.

Command Economies: are centrally plannedhierarchies with less individualism and less

individual incentive.


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Organic Ordering: refers to the family-centredhierarchies of Asia, Southern Europe and LatinAmerica, Africa

Structured Networks: reflect the more equal,

structured relationships between companies

and with public sector organizations that exist

in some countries.

Culture Embodied in National

Institutions


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Useful Strategies for Managing Cultural Diversity

Build diversity issues into recruitment, HRM planning,strategy, location decisions, alliances and partnerships.

Identify where and to what degree local divisions

should be encouraged or empowered to take the lead

in expressing and managing diversity. Encourage cross-border discussion and interaction as

well as focused training.

Aim for a cultural balance in particular areas of

strategic and tactical decision-making.

Lead from the top.


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Seminar Questions

Read relevant case study posted on VLE

In what ways have socio-cultural factors

impacted on the success/failure of firms?

international soco-cultural environment

Documents