the impact of national culture

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The Impact of National Culture

Dimitar Bakardzhiev




What is culture?

• Definition: the way people understand their world and make sense of it, a shared system of meanings.

• Culture is learned and imprinted. Cultural programming deals with both values and practices.

• There are different layers of cultural programming: national culture, professional culture, corporate culture.




“Measuring” Culture

Cultural differences can be inferred from data about a collectivity of people:

Direct measurement through asking well designed questions about people’s values or beliefs.

Data “clustering” methods Matched samples can then be compared to

discover similarities and differences.

At the individual level we speak of cultural attitudes and orientations (but these may not be representative of one’s culture)




Definition 1

• “Knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society” – Sir Edward Taylor, English anthropologist, 1832-1917




Definition 2

• “A set of distinctive spiritual, material, intellectual and emotional features of society or a social group” & includes art and literature, lifestyles, ways of living together, value systems, traditions and beliefs – UNESCO 2002




Definition 3

• Collective programming of the minds – Geert Hofstede




Definition 4

• ”Culture is the way in which a group of

people solves problems” - Trompernaars’ and Hampden-Turner’ model




Cultural Classifications

• Hofstede (Minkov)• Trompenaars

By and large, these classifications show similar dimensions and classify countries in the same clusters.




Hofstede Model

• Based on global research, Geert Hofstede ‘measures’ country culture on 5 cultural dimensions

• Power Distance Index (PDI)• Individualism (IDV)• Masculinity (MAS)• Uncertainty Avoidance (UAI)• Long-term Orientation (LTO)




Power Distance Index (PDI)

Power Distance has been defined as the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders.




Ten Differences Between Small- and Large- PDI Societies




Individualism (IDV)

The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.




Ten Differences Between Weak- and Strong- IDV Societies




Masculinity (MAS)

A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success.A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine).




Ten Differences Between Weak- and Strong- MAS Societies




Uncertainty Avoidance (UAI)

The dimension has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the UAI score.




Ten Differences Between Weak- and Strong- UAI Societies




Long-term Orientation (LTO)

The long term orientation dimension is closely related to the teachings of Confucius and can be interpreted as dealing with society’s search for virtue,the extent to which a society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view.




Ten Differences Between Weak- and Strong- LTO Societies




What about Bulgaria?




Bulgaria PDI

Bulgaria scores high on this dimension (score of 70) which means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat.




Bulgaria IDV

Bulgaria, with a score of 30 is considered a collectivistic society. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. Employer/employee relationships are perceived in moral terms (like a family link), management is the management of groups.




Bulgaria MAS

Bulgaria scores 40 on this dimension and is thus considered a relatively feminine society. The focus is on “working in order to live”, managers strive for consensus, people value equality, solidarity and quality in their working lives. Conflicts are resolved by compromise and negotiation. Incentives such as free time and flexibility are favored. Focus is on well-being, status is not shown.




Bulgaria UAI

Bulgaria scores 85 on this dimension and thus has a very high preference for avoiding uncertainty. Maintains rigid codes of belief and behaviour and is intolerant of unorthodox behaviour and ideas. There is an emotional need for rules (even if the rules never seem to work), time is money, people have an inner urge to be busy and work hard, security is an important element in individual motivation.




Bulgaria/USA




Bulgaria/Germany/France




Trompenaars Model

• Individualism vs. Collectivism• Universalism vs. Particularism• Neutral vs. Affective relationships• Specific vs. Diffuse relationships• Achievement vs. Ascription• Time orientation

• Internal vs External orientation




Universalism

• rules or laws that can be applied to everyone;

• agreements and contracts are used as the basis for doing business;

• rules are used to determine what is right;• contracts should not be altered.




Particularism

• placing emphasis on friendships and looking at the situation to determine what is right or ethically

• acceptable• deals are made based upon friendships;• agreements are changeable;• different people hold different views about

reality.




Individualism

• frequent use of “I”,• decision are made on the spot by

representatives,• people ideally achieve alone and assume

personal responsibility,• vacations taken in pairs or even alone vs.

group orientation.




Collectivism

• frequent use of “we”• decisions referred back by the delegates

to the organization• people ideally achieve objectives in

groups and assume joint responsibility• vacations are taken in organized groups of

with extended family




Neutral Relationships

• not revealing what one is thinking or feeling• only accidental revelation of tension in face

and posture• hidden emotions that may occasionally

explode out• cool and self-possessed conduct that is

admired• lack of physical contact, gesturing




Affective Relationships

• nonverbal and verbal display of thoughts and feelings

• transparency and expressiveness in release of tensions

• easy flow of emotions• the admiration and display of heated, vital,

animated expressions• fluent and dramatic delivery of statements




Specific Relationships

• a small private life that is kept private;• large social/public life that is very open to

others;• extroversion;• “no nonsense” - direct in communications;• clear distinction between work and

personal life.




Diffuse Relationships

• a large private life that includes a relatively large number of people;

• small public space that is difficult to enter • indirect communication - does not always

say what is really meant;• no clear distinction between work and

private life.




Achievement

• It is awarding status based upon accomplishments. Characterized by:– use of titles only when relevant to the

competence brought to the task– respect for superior in the hierarchy is based on

how effectively his or her job is performed and the adequacy of their knowledge

– a company where most senior managers have obtained their positions through accomplishments




Ascription

• It is ascribing status based upon social position, age, etc.– extensive use of titles, especially when these

clarify status in the organization– respect for superior in the hierarchy is seen as

a measure of commitment to the organization and its mission

– a company where most senior managers are male, middle-age, and qualified by their backgrounds




Sequential Time vs. Synchronic Time

“Do we do things one at a time or several things at once?”The degree to which individuals do things one at a time versus several things at once. Cultures developed their own response to time. Time orientation has two aspects: the relative importance cultures assign to the past, present and future, and their approach to structuring time.




Sequential Time vs. Synchronic Time

• In a sequential culture, people structure time sequentially and do things one at a time.

• In a synchronic time culture, people do several things at once, believing time is flexible and intangible.




Time Orientation (Past, Present, Future)

• Past orientation– talk about history, origin of family, business

and nation

– motivated to recreate a golden age

– respect shown for ancestors, predecessors and older people

– everything is viewed in the context of tradition or history





• Present orientation– activities and enjoyments of the moment are

most important

– good at making plans but poor on execution

– intense interest in present relationships, focus on here and now

– everything is viewed in terms of its contemporary impact and style





• Future orientation– much talk of prospects, potentials, aspirations,

future achievements

– planning and strategizing done enthusiastically

– great interest in the youthful and future potentials

– present and past used, even exploited for future advantage




Examples of Country Ratings on Trompenaars’ Dimensions




Universalism vs. Particularism




Inner vs. Outer Direction




Neutral vs. Affective relationships




Individualism vs. Collectivism




Specific vs. Diffuse relationships




Achievement vs. Ascription




Conclusion / Hofstede /

In Bulgarian culture are predominated :•collectivism;•high power distance;•strong uncertainty avoidance;•femininity;•short term orientation.




Conclusion / Trompenaars /

In Bulgarian culture are predominated:•particularistic culture;•collectivistic culture;•specific/diffuse culture;•ascription status;•neutral/affective culture;•external locus of control;•short term orientation.




Literature

• Hofstede, G. (2001) Culture’s consequences.

• Cultures and Organizations - Software for the Mind [Revised & Expanded Third Edition] (2010) by Geert Hofstede, Gert Jan Hofstede & Michael Minkov

• Trompenaars, F. & Hampden-Turner, C. (1997) Riding the Waves of Culture.

the impact of national culture

Business

culture cultural differences

collectivist culture

professional culture

corporate culture

dimension score

collectivist societies

weakand strong idv societies

weakand strong uai societies