irwin/mcgraw-hill [modified by evs] mgt 485 chapter 5 culture
TRANSCRIPT
Irwin/McGraw-Hill [Modified by EvS]
Mgt 485CHAPTER 5
CULTURE
Irwin/McGraw-Hill [Modified by EvS]
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FYI HTS Service Codes (still used by some
countries, but not US)– 4 digit code– Section 98 and 99 (after misc.)
9875 management consulting services
– HTS Manual, 2004 / 2005 does not include service Example of specific information
– http://www.sellingtothegovernment.net/form_product_codes.asp
– http://www.officialexportguide.com/
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Imports – through U.S. Intntl. Trade Commission (USITC)
http://www.ita.doc.gov/td/tic/tariff/country_tariff_info.htmhttp://r0.unctad.org/trains/2001%20Egypt.htmhttp://www.amcham.org.eg/dbe/trade.asp
Irwin/McGraw-Hill [Modified by EvS]
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Exports – through the Census Bureau (no export qty restrictions)
Mgt 470-5-5Irwin/McGraw-Hill [Modified by EvS]
Additional Internet Sites: http://dir.yahoo.com/regional/countries/ http://globaledge.msu.edu/ibrd/ibrd.asp http://www.ciesin.org/IC/wbank/wtables.html http://lcweb2.loc.gov/frd/cs/cshome.html http://www.atlapedia.com/index.html http://www.nationmaster.com/ http://www.census.gov/foreign-trade/faq/sb/sb0008.html http://www.usitc.gov/tata/index.htm http://www.trade.gov/td/tic/tariff/resources.htm http://unstats.un.org/unsd/cr/registry/ http://www.census.gov/foreign-trade/statistics/product/enduse/
exports/index.html http://library.uncg.edu/depts/docs/international/intermkt.html
Irwin/McGraw-Hill [Modified by EvS]
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Understanding Culture
BeliefsBeliefsValuesValuesAssumptionsAssumptionsExpectationsExpectations
MannersMannersRitualsRitualsSymbolsSymbolsArtifactsArtifactsCustomsCustomsBehaviorBehaviorRightsRightsTraditionsTraditions
IndividualIndividual GroupGroup
Personality Culture
NormsNormsValuesValuesExpectationsExpectations
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Perspectives on Culture
Interaction with our surroundings (and organizational systems)– Hofstede
Work values and roles (interaction with the organization)– Ronen, Kraut and Shenkar
Interpersonal relationships– Trompenaar
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The Nature of Culture (cont.)
Values in Culture– Values
Basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant
– Research has identified both differences and similarities in values of different cultural groups
– Values in transition Changes taking place in managerial values as a result of
both culture and technology– Research on Japanese managers
• Individualism on the rise in Japan
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Management Approaches Affected by Cultural Diversity
CulturalDiversity
Sort-term vs.long-term horizons
Stability vs.innovation
Individual vs.group rewards Cooperation vs.
competition
Centralized vs. Decentralized
decision making
Informal vs.formal procedures
Safety vs. risk High vs. loworganizational
loyalty
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Nature of CultureLearned
Culture is acquired by learning and experience
SharedPeople as a member of a group, organization ,or society share
culture
TransgenerationalCulture is cumulative, passed down from generation to generation
SymbolicCulture is based on the human capacity to symbolize
PatternedCulture has structure and is integrated
AdaptiveCulture is based on the human capacity to change or adapt
Irwin/McGraw-Hill [Modified by EvS]
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Comparing Cultures as Overlapping Normal Distribution Figure 5-2
French Culture U.S. Culture
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Stereotyping from the Cultural Extremes
French Culture U.S. Culture
How Americans see the French• arrogant• flamboyant• hierarchical• emotional
How French see Americans• naive• aggressive• unprincipled• workaholic
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Value Priorities
United States Japan Arab Countries 1. Freedom 1. Belonging 1. Family Security 2. Independence 2. Group Harmony 2. Family Harmony 3. Self-Reliance 3. Collectiveness 3. Paternalism 4. Equality 4. Age/Seniority 4. Age 5. Individualism 5. Group Consensus 5. Authority 6. Competition 6. Cooperation 6. Compromise 7. Efficiency 7. Quality 7. Devotion 8. Time 8. Patience 8. Patience 9. Directness 9. Indirectness 9. Indirectness10. Openness 10. Go-between 10. Hospitality
Values- basic convictions that people have regarding what is right and wrong, good and bad, important or unimportant
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Value Differences and Similarities Across Cultures
Differences– U.S. managers value tactful
acquisition of influence
– Japanese managers value deference to superiors
– Korean managers value forcefulness and aggressiveness
– Indian managers value nonaggressive pursuit of objectives
– Australian managers value low-key approach with high concern for others
Similarities– Strong relationship between
managerial success and personal values
– Value patterns predict managerial success
– Successful managers favor pragmatic, achievement-oriented values while less successful managers
prefer static and
passive values
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Hofstede’s Dimensions of Culture
Power Distance (Large or Small)– The extent to which less powerful members of
institutions accept that power is distributed unequallyLarge (Mexico, South Korea, India)
– blindly obey order of superiors– hierarchical organizational structure
Small (U.S., Denmark, Canada)
– decentralized decision making– flat organizational structures
Irwin/McGraw-Hill [Modified by EvS]
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Uncertainty Avoidance (High or Low)– The extent to which people feel threatened by
ambiguous situationsHigh( Germany, Japan, Spain)
– high need for security– strong beliefs in experts
Low (Denmark, UK)
– willing to accept risks– less structuring of activities
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Individualism (vs. Collectivism)– The tendency of people to look after themselves and
their immediate family only strong work ethic promotions based on merit
• U.S., Canada, Australia
Collectivism– The tendency of people to belong to groups and to look
after each other in exchange for loyalty weaker work ethic promotions based on seniority
• China, South American cultures
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Masculinity (Vs. Femininity)– the dominant values in society are success,
money and thingsemphasis on earning and recognitionhigh stress workplace
• Japan
Femininity– the dominant values in society are caring for
others and the quality of lifeemployment securityemployee freedom
• Scandinavian cultures
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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
– Identified eight country clusters and four independent countries
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A Synthesis of Country CulturesNORDIC
FinlandDenmark
Sweden
NEAREASTERN
Turkey
GreeceIran
ARAB
Oman
Bahrain
Abu-Dhabi
Saudi Arabia
GERMANICAustria
Germany
Switzerland
FAREASTERN
MalaysiaSingaporeHongKong
PhilippinesIndonesia
Taiwan
INDEPENDENTIndiaJapan
IsraelBrazil
ANGLO
United Kingdom
Canada
United States
Ireland
South AfricaLATINAMERICAN
Argentina
MexicoChile
Peru
LATINEUROPEAN
France
Belgium
Italy Spain
Figure 5-8
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Comparing Dimensions
Hofstede TrompenaarsPower Distance (high / low)Uncertainty Avoidance (high / low)Individualism / Collectivism Individualism / CollectivismMasculine / Feminine (Success/ Quality)Time Orientation (Long / Short) Time (sequential / synchronous)
Neutral / Emotional (emotional control)Universalism / Particularism Specific / Diffuse (sharing space)Achievement / Ascription (ability / status)Environmental (control / laissez faire)
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Trompenaar’s Cultural DimensionsInterpersonal Relationships
Universalism vs. ParticularismUniversalism: the belief that ideas and practices
can be applied everywhere without modification– U. S., Germany, and Sweden
Particularism: the belief that circumstances dictate how ideas and practices should be applied.
– Spain and Japan
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Individualism Vs. Collectivism
Individualism: refers to people regarding themselves as individuals
–U.S., UK, and Sweden
Collectivism: refers to people regarding themselves as part of a group
– Japan and France
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Neutral Vs. AffectiveNeutral: emotions are held in check
– Japan and the U.S. Affective: emotions are openly and naturally expressed
– Mexico, Netherlands, and Switzerland
Specific Vs. DiffuseSpecific: individuals have a large public space and a
small private space – UK, U. S., and Switzerland
Diffuse: both public and private space are similar in size
– Venezuela, China, and Spain
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Achievement Vs. AscriptionAchievement: people are accorded status based
on how well they perform their functions– U.S., Switzerland, and UK
Ascription: status is attributed based on who or what a person is
– Venezuela and China
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Time
Past or Present-Oriented Vs. Future-Oriented– Past or present-oriented : emphasize the history and
tradition of the culture Venezuela, Indonesia, and Spain
– Future-oriented: emphasize the opportunities and limitless scope
that any agreement can have U. S., Italy, and Germany
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Sequential Vs. Synchronous Time Sequential: time is prevalent, people tend to do only one activity at a time, keep appointments strictly, and prefer to follow plans
– U.S.
Synchronous: time is prevalent, people tend to do more than one activity at a time, appointments are approximate, and schedules are not important
– Mexico and France
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IssueTime
orientationPast Present Future
GeneralPlanning Extension of past
behaviorShort-term Long-term
Emphasis in decision criteria
Precedence Current impact
Desired effects
Reward systems
Historically determined
Currently contracted
Contingent on performance
Variations
Managerial ImpactSpecific by Variation
Variations in Time Orientation
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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
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Trompenaars’ Cultural GroupsTable 5-5
Anglo cluster
Relationship United States United Kingdom
Individualism x xCommunitarianism Specific relationship x xDiffuse relationship Universalism x xParticularism Neutral relationship xEmotional relationship xAchievement x xAscription
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Trompenaars’ Cultural GroupsTable 5-5
Asian cluster
Relationship Japan China Indonesia Hong Kong Singapore
IndividualismCommunitarianism x x x x xSpecific relationshipDiffuse relationship x x x x xUniversalismParticularism x x x x xNeutral relationship x x x xEmotional relationship xAchievementAscription x x x x x
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Latin American cluster
Relationship Argentina Mexico Venezuela Brazil
Individualism x x xCommunitarianismSpecific relationshipDiffuse relationship x x x xUniversalismParticularism x x x xNeutral relationship x x xEmotional relationship xAchievement x x Ascription x x
Trompenaars’ Cultural GroupsTable 5-5
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Latin-European cluster
Relationship France Belgium Spain Italy
Individualism xCommunitarianism x x xSpecific relationship x xDiffuse relationship x xUniversalism x x xParticularism xNeutral relationship xEmotional relationship x x xAchievement xAscription x x x
Trompenaars’ Cultural GroupsTable 5-5
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Germanic cluster
Relationship Austria Germany Switzerland Czechoslovakia
Individualism xCommunitarianism x x xSpecific relationship x x x Diffuse relationship xUniversalism x x x xParticularism Neutral relationship x xEmotional relationship x x Achievement x x xAscription x
Trompenaars’ Cultural GroupsTable 5-5
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Environment
Inner DirectedBelieve in controlling outcomes
– U.S.
Outer DirectedBelieve in letting things take their own
course– Asian Cultures
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Other Cultural Dimensions
Institutional Collectivism In-group Collectivism Gender Egalitarianism Assertiveness Power Distance Performance Orientation Future Orientation Uncertainty Avoidance Humane Orientation
Irwin/McGraw-Hill [Modified by EvS]
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IssueBasic human
natureEvil Neutral or
mixedGood
GeneralControl system
Tight, suspicion-based
Moderate, experienced-
based
Loose, information-
basedManagement
styleClose
supervision, Top-down
Moderate supervision, consultative
Laissez-faire , participative
Organization climate
Adversarial, contractual
Collaborative, informal
Variations
Managerial ImpactSpecific by Variation
Variations in Human Nature
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FIGURE 2 Influence Pattern of Culture on Assumptions, Perceptions, and Management Behavior
Potential for success or conflict, and unintended consequences
Interpersonal communication
and management situations
Different interpretation (perceptions) of events,
interactions, and behavior of other people
Different shared mental programs and assumptions
about the “shoulds” or “ought-to’s” (both content and process
assumptions)
Different backgrounds
Person “a” from culture “x”
Person “b” from culture “y”
Individual perceptions
Social, legal, political, economic
institutions
Social, legal, political, economic
institutions
Individual perceptions
Culture “x” Value orientations:
Systemic Learned Shared
Contributing factors History
Language Religion
Environment
Contributing factors History
Language Religion
Environment
Culture “y” Value orientations:
Systemic Learned Shared
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Issue
Relation to nature
Subjugation to nature
Harmony with nature
Mastery over nature
GeneralGoal setting Qualified,
hesitant, vagueContingent, moderated
Specific, confident,
unambiguous, high level
Budget systems
Futile, outcomes predetermined
Exercise, "actuals" are
real
Real, relevant, useful
Variations
Managerial ImpactSpecific by Variation
Variations in Relations to Nature
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IssueActivity Being Containing
and controlling
Doing
GeneralDecision criteria
Emotional Rational Pragmatic
Rewards system
Feelings-based Logic-based Results-based
Concern for output
Spontaneous Balanced objectives
Compulsive
Information and
measurement systems
Vague, feeling-based, intuitive
Complex, qualitative,
broad
Simple, operational, few
indices
Variations
Managerial ImpactSpecific by Variation
Variations in Activities
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IssueRelationships Hierarchical Group Individualistic
GeneralOrganizational
structureAttention on
vertical differentiation
Attention on horizontal
differentiation
Informal, flexible behavior vis-à-vis structures
Communication and influence
patterns
Authority-based Within group emphasis
Multiple, as-needed, open
Reward system Status-based Group-based Individually based
Teamwork Regulated, formal
Normative, routine
Voluntary, informal
Variations
Managerial ImpactSpecific by Variation
Variations in Relationships
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Variations in Spacial OrientationIssueSpace Private Mixed Public
GeneralCommunication
and influence patterns
One-to-one, secret
Selective, semiprivate
Wide, open
Office layout Emphasis on barriers (closed
doors, large desks, ets.)
Specialized spaces (informal furniture next to
formal desk)
Open concept
Interaction patterns
Physically distant, one-to-
one, serial
Moderately spaced,
moderated numbers, organized
Physically close, frequent touching,
multiple relations (sometimes
spontaneously)
Variations
Managerial ImpactSpecific by Variation
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IKEA case
Strength from mastery of value chain– unique design capabilities– unique sourcing– tightly controlled logistic
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IKEA case
Can a company’s “national culture” become a source of competitive advantage?
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IKEA case
Can a company’s “national culture” become a source of competitive advantage?– If yes, then it also must be that a
company’s national culture can become a source of competitive disadvantage
Irwin/McGraw-Hill [Modified by EvS]
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IKEA case
Strategic SourcingMarketing Mix
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IKEA case
Management - Informal, open, caring– Participatory HR
How did Germany react? France?U.S.?
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IKEA case
Lessons?
– Appeal to customer’s needs & wantsconvenience
– Staged– Focused– “Potato field” approach– Luck & boldness