International dimensions of organizational behavior.
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Chapter 3: Understanding the Role of Culture
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Chapter Learning Goals
To understand how culture affects all aspects of international management
To emphasize the need for international managers to have cultural intelligence in order to interact successfully in host countries
To be able to distinguish the major dimensions which define cultural differences among societies or groups
To recognize the critical value differences which frequently affect job behaviors
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Chapter Learning Goals
To understand the interaction between culture and the use of internet
To be able to develop a working “cultural profile” typical of many people within a certain society, as an aid to expected attitudes toward work, negotiations, etc.
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Culture and its Effects on Organizations
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Culture
A set of 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
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Culture and its Effects on Organizations
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Cultural Sensitivity or
Cultural Empathy?
An awareness of and an honest caring about another individual’s culture
Environmental Variables Affecting Management Functions
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Culture is 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. It often results in shared attitudes, codes of conduct, and expectations that subconsciously guide and control certain norms of behavior.
As shown in this figure, national and socio-cultural variables provide the context for cultural variables, which in turn determine attitudes toward work, time, materialism, individualism, and change. Attitudes affect behavior and, thus, individual’s motivation and expectations regarding work and workplace relations.
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Organizational Culture
Exists within and interacts with societal culture
Varies a great deal from one organization, company, institution, or group to another
Represents those expectations, norms, and goals held in common by members of that group
Examples:
IBM vs. Apple
Daimler Benz vs. Chrysler
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Organizational culture functions equivalently to societal culture, but varies a great deal from one organization to another—even within a single societal culture. Nonetheless, organizational culture is at least partially a function of and must respond to societal culture.
Airline KLM responded to Dutch attitudes regarding families and norms regarding relationships by extending its travel benefits policy to any couple who formally registered as living together—regardless of whether the couple was heterosexual or homosexual, formally married or not.
McDonald’s provides more extensive training to employees in Russia than to those in the US because Russians are less familiar with working within a capitalist system.
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Culture’s Effects on Management
Cultural Distance—how different two cultures are
It is suggested that the interaction between two cultures is the working issue in international management.
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The self-reference criterion is the unconscious reference point of one’s own cultural values. It means people often understand and relate to others only in terms of their own culture. An example of the need to overcome the self-reference criterion is when Japanese workers must put courtesy aside and interrupt conversations with Americans when there are problems.
Parochialism occurs when a person expects those from another culture to automatically fall into patterns of behavior common in his/her own culture.
Ethnocentrism describes the attitude of those who operate from the assumption their ways of doing things are best under all conditions. P & G demonstrated ethnocentrism when they ran a popular European ad for Camay soap in Japan. The ad depicted a man walking in on his wife in the bath. The commercial backfired in Japan because the Japanese viewed the man’s behavior as bad manners.
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The Effect of Culture on Organizational Process
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| U.S. Culture | Alternative | Function Affected |
| Individual influences future | Life is preordained | Planning, scheduling |
| The environment is changeable | People adjust to the environment | Morale, productivity |
| Hard work leads to success | Wisdom and luck are also needed | Motivation, rewards |
| Employment can be ended | Employment is for a lifetime | Motivation, commitment |
| Best qualified person selected for a job | Family and friendship ties matter | Employment, promotions |
The extent to which culture affects organizational processes is a subject of debate. Some say that convergence is leading management styles to become more similar to one another due to issues such as industrialization and worldwide coordination. This slide is a condensed version of the information in Exhibit 3-2, and suggests ways that differences between US and other cultures might influence organizational functions.
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Culture’s Effects on Management
Convergence—the phenomenon of the shifting of individual management styles to become similar to one another
Self-Reference Criterion—the subconscious reference point of one’s own cultural values. Many people in the world understand and relate to others only in terms of their own cultures.
Parochialism—occurs, for example, when a Frenchman expects those from or in another country to automatically fall into patterns of behavior common in France
Ethnocentrism—describes the attitude of those who operate from the assumption that their ways of doing things are best—no matter where or under what conditions they are applied
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Convergence
Self-Reference Criterion
Parochialism
Ethnocentrism
The self-reference criterion is the unconscious reference point of one’s own cultural values. It means people often understand and relate to others only in terms of their own culture. An example of the need to overcome the self-reference criterion is when Japanese workers must put courtesy aside and interrupt conversations with Americans when there are problems.
Parochialism occurs when a person expects those from another culture to automatically fall into patterns of behavior common in his/her own culture.
Ethnocentrism describes the attitude of those who operate from the assumption their ways of doing things are best under all conditions. P & G demonstrated ethnocentrism when they ran a popular European ad for Camay soap in Japan. The ad depicted a man walking in on his wife in the bath. The commercial backfired in Japan because the Japanese viewed the man’s behavior as bad manners.
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Influences on National Culture
Subcultures
Stereotyping
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Many countries comprise diverse subcultures whose constituents conform only in varying degrees to the national character. Example: Canada
A cultural profile that tends to develop some tentative expectations—some cultural context—as a backdrop to managing in a specific international setting
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Cultural Value Dimensions
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Values determine how individuals probably will act in given circumstances. They are communicated via the eight subsystems just described and are passed down through generations.
Contingency management requires managers to adapt to the local environment and people and to adjust their management styles accordingly.
Value dimensions and resulting cultural profiles provide only an approximation of national character. There may be variations in national culture—i.e., subcultures may exist as well. For example, American tend to think of the Chinese as culturally homogenous, but distinct ethnic groups within China have their own customs and dialects.
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Values
Are a society’s ideas about what is good or bad, right or wrong
Determine how individuals will probably respond in any given circumstances
Help managers anticipate likely cultural effects
Allow for contingency management
Can vary across subcultures
Hofstede’s Value Dimensions
Power Distance
The level of acceptance by a society of the unequal distribution of power in institutions
Uncertainty Avoidance
The extent to which people in a society feel threatened by ambiguous situations
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Hofstede’s research, which was conducted prior to the GLOBE project, is based on 116,000 people in 50 countries. Nonetheless, all of the research was conducted in a single firm—IBM. As such, the result should be interpreted with caution.
Power distance is a society’s acceptance of unequal power distribution. In high power distance cultures, formal authority and hierarchy are very respected. Thus leadership tends to be autocratic and centralized. In low power distance cultures superiors and subordinates are more likely to view one another as equals, leading to more cooperation.
Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations. High uncertainty avoidance cultures are very uncomfortable with ambiguity and tend to have strict laws and closely followed procedures. In businesses, managers tend to make low-risk decisions, employees are not aggressive, and lifetime employment is common. Low uncertainty avoidance cultures are more comfortable with ambiguity. In these cultures, company activities are less formal and structured, managers take more risks, and employees have more job mobility.
Individualism is the tendency for people to look after themselves and their immediate families only and to neglect the needs of society. Democracy, individual initiative, and achievement are valued. Collectivism entails tight social frameworks, emotional dependence on the organization, and strong belief in group decisions. Countries scoring higher on individualism tend to have higher GNPs and freer political systems. Social loafing is more common in individual than in collective cultures.
Masculinity refers to the degree to which traditionally masculine values (e.g., assertiveness, materialism, and lack of concern for others) prevail. Femininity emphasizes the traditionally feminine values of concern for others, relationships, and quality of life. In more feminine cultures one tends to find less work-family conflict, less job stress, more women in high-level jobs, and a reduced need for assertiveness.
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Hofstede’s Value Dimensions
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Power Distance
MAL ARA MEX IND FRA ITA JPN SPA ARG US GER UK DEN ISR AUT
Uncertainty Avoidance
GRE JPN FRA KOR ARA GER AUL CAN US UK IND DEN SIN
High Orientation Toward Authority Low
High Desire for Stability Low
Hofstede’s Value Dimensions
Individualism
The tendency of people to look after themselves and their immediate families only and to neglect the needs of society
Collectivism
The desire for tight social frameworks, emotional dependence on belonging to “the organization,” and a strong belief in group decisions
Masculinity
The degree to which traditionally “masculine” values – assertiveness, materialism – prevail in a society.
Femininity
Society’s emphasis on “feminine” values, such as concern for others, for relationships, and for quality of life.
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vs.
vs.
Hofstede’s research, which was conducted prior to the GLOBE project, is based on 116,000 people in 50 countries. Nonetheless, all of the research was conducted in a single firm—IBM. As such, the result should be interpreted with caution.
Power distance is a society’s acceptance of unequal power distribution. In high power distance cultures, formal authority and hierarchy are very respected. Thus leadership tends to be autocratic and centralized. In low power distance cultures superiors and subordinates are more likely to view one another as equals, leading to more cooperation.
Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations. High uncertainty avoidance cultures are very uncomfortable with ambiguity and tend to have strict laws and closely followed procedures. In businesses, managers tend to make low-risk decisions, employees are not aggressive, and lifetime employment is common. Low uncertainty avoidance cultures are more comfortable with ambiguity. In these cultures, company activities are less formal and structured, managers take more risks, and employees have more job mobility.
Individualism is the tendency for people to look after themselves and their immediate families only and to neglect the needs of society. Democracy, individual initiative, and achievement are valued. Collectivism entails tight social frameworks, emotional dependence on the organization, and strong belief in group decisions. Countries scoring higher on individualism tend to have higher GNPs and freer political systems. Social loafing is more common in individual than in collective cultures.
Masculinity refers to the degree to which traditionally masculine values (e.g., assertiveness, materialism, and lack of concern for others) prevail. Femininity emphasizes the traditionally feminine values of concern for others, relationships, and quality of life. In more feminine cultures one tends to find less work-family conflict, less job stress, more women in high-level jobs, and a reduced need for assertiveness.
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Hofstede’s Value Dimensions
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Individualism
AUL US UK CAN FRA GER SPA JPN MEX ITA KOR SIN
Masculinity
JPN MEX GER UK US ARA FRA KOR POR CHC DEN SWE
Individualism Collectivism
Assertive/Materialistic Relational
Hofstede’s Value Dimensions
Long-Term Orientation
The extent to which a culture programs its members to accept delayed gratification of their material, social, and emotional needs.
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Indulgence
The relatively free gratification of basic and natural human drives related to enjoying life and having fun.
Hofstede’s research, which was conducted prior to the GLOBE project, is based on 116,000 people in 50 countries. Nonetheless, all of the research was conducted in a single firm—IBM. As such, the result should be interpreted with caution.
Power distance is a society’s acceptance of unequal power distribution. In high power distance cultures, formal authority and hierarchy are very respected. Thus leadership tends to be autocratic and centralized. In low power distance cultures superiors and subordinates are more likely to view one another as equals, leading to more cooperation.
Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations. High uncertainty avoidance cultures are very uncomfortable with ambiguity and tend to have strict laws and closely followed procedures. In businesses, managers tend to make low-risk decisions, employees are not aggressive, and lifetime employment is common. Low uncertainty avoidance cultures are more comfortable with ambiguity. In these cultures, company activities are less formal and structured, managers take more risks, and employees have more job mobility.
Individualism is the tendency for people to look after themselves and their immediate families only and to neglect the needs of society. Democracy, individual initiative, and achievement are valued. Collectivism entails tight social frameworks, emotional dependence on the organization, and strong belief in group decisions. Countries scoring higher on individualism tend to have higher GNPs and freer political systems. Social loafing is more common in individual than in collective cultures.
Masculinity refers to the degree to which traditionally masculine values (e.g., assertiveness, materialism, and lack of concern for others) prevail. Femininity emphasizes the traditionally feminine values of concern for others, relationships, and quality of life. In more feminine cultures one tends to find less work-family conflict, less job stress, more women in high-level jobs, and a reduced need for assertiveness.
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Hofstede’s Value Dimensions
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Long-term/Short-term Orientation
CHI HK JPN TAI VIE BRA IND US CAN UK E/W AFR
High Low
Hofstede’s Value Dimensions
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https://www.hofstede-insights.com/product/compare-countries/
GLOBE Research Project Dimensions
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The GLOBE (Global Leadership and Organizational Behavior Effectiveness) dimensions are based on data gathered by 170 researchers over seven years. The data were collected from 18,000 managers in sixty-two countries. There are nine dimensions that distinguish cultures from one another and have implications for managers: assertiveness, future orientation, performance orientation, humane orientation, gender differentiation, uncertainty avoidance, power distance, institutional collectivism vs. individualism, and in-group collectivism. Only four are discussed in the text because the other five overlap with Hofstede’s 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.
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.
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Assertiveness
Low: Sweden, Japan, Switzerland
High: Greece, Austria, Germany, U.S.
Performance Orientation
Low: Russia, Argentina, Italy, Venezuela
High: U.S., Hong Kong, Singapore, New Zealand
GLOBE Research Project Dimensions
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Future Orientation
Low: Russia, Argentina, Italy
High: Netherlands, Canada, Switzerland, Singapore
Humane Orientation
Low: Germany, Spain, France, Brazil
High: Malaysia, Ireland, Philippines, Egypt
Cultural Cluster
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GLOBE research also indicates the existence of geographic clusters of countries that are culturally similar. This figures shows the 10 clusters that were found. The GLOBE research suggests companies may find it easier to expand into more similar cultures than into those that are dramatically different.
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Critical Operational Value Differences
Time—differences in temporal values
Change—control and pace of change
Material Factors—physical goods and status symbols versus aesthetics and the spiritual realism
Individualism—“me/I” versus “we”
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To Americans, time is money and schedules are strictly kept. In Latin America the word for tomorrow is used to mean “sometime in the future.”
Many non-Western societies believe in destiny of the will of their God and, thus, tend to be passive and hostile toward change. For example, to a Chinese worker, the change to power machinery might suggest dissatisfaction with his father’s way of life.
Americans tend to value physical goods and status symbols. Many non-Westerners value the aesthetic and spiritual realm instead.
In the US, individual achievement takes precedent. There is a focus on “I.” In countries like China, there is more emphasis on conformity and cooperation.
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The Internet and Culture
High-speed Internet service in most of the homes all around the world.
Young people’s favorite pastime is browsing the web in their devices
Information privacy: different countries have different attitudes
Multilingual websites of the same company
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Technology is changing culture in many societies—especially in terms of associations, education, and the economy. For instance, 70% of Korean households have high-speed internet (only 23% of US households do). Korean teens who used to hang out at the mall now hang out at computer parlors.
Culture also is changing how technology is used. The US collects a great deal of information from consumers. In Sweden and many other European countries, the use and sharing of consumer data is closely monitored by the government. The Swedish airline example illustrates the extent to which privacy is protected and suggests some degree of uncertainty avoidance.
The fact that so much of the internet market lives outside the US indicates the need for e-commerce to take local approaches to markets, customs, languages, and currencies to be successful.
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Developing Cultural Profiles
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Though profiles have their limitations, managers can use them to anticipate differences in the level of motivation, communication, ethics, loyalty, and individual and group productivity that may be encountered in a given culture. This Comparative Management in Focus section illustrates how to synthesize information from Hofstede and others to gain a sense of the character of a society.
Much of Japanese culture and working relationships can be explained by the principle of wa. Wa is embedded in the value of indulgent love, which leads to mutual confidence, faith, and honor necessary for business relationships. As such, the workplace is characterized by a mix of authoritarianism and humanism—much like a family. Management systems stress rank and looking after employees. There is devotion to work, collective responsibility, and a high degree of employee productivity.
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Managers can gather considerable information on cultural variables from current research, personal observation, and discussion with people.
Managers can develop cultural profiles of various countries.
Managers can use these profiles to anticipate drastic differences that may be encountered in a given country.
It is difficult to pull together descriptive cultural profiles in other countries unless one has lived there and been intricately involved with those people.
Comparative Management in Focus
Japan
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“Wa”—peace and harmony
A mix of authoritarianism and humanism in the workplace
Emphasis on participative management, consensus, and duty
Open expression and conflict discouraged
Though profiles have their limitations, managers can use them to anticipate differences in the level of motivation, communication, ethics, loyalty, and individual and group productivity that may be encountered in a given culture. This Comparative Management in Focus section illustrates how to synthesize information from Hofstede and others to gain a sense of the character of a society.
Much of Japanese culture and working relationships can be explained by the principle of wa. Wa is embedded in the value of indulgent love, which leads to mutual confidence, faith, and honor necessary for business relationships. As such, the workplace is characterized by a mix of authoritarianism and humanism—much like a family. Management systems stress rank and looking after employees. There is devotion to work, collective responsibility, and a high degree of employee productivity.
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Comparative Management in Focus
Germany
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Preference for rules and order, privacy
Dislike of inefficiency and tardiness
Assertive, but not aggressive
Organizations are centralized but still favor consensus decision making
Though profiles have their limitations, managers can use them to anticipate differences in the level of motivation, communication, ethics, loyalty, and individual and group productivity that may be encountered in a given culture. This Comparative Management in Focus section illustrates how to synthesize information from Hofstede and others to gain a sense of the character of a society.
Much of Japanese culture and working relationships can be explained by the principle of wa. Wa is embedded in the value of indulgent love, which leads to mutual confidence, faith, and honor necessary for business relationships. As such, the workplace is characterized by a mix of authoritarianism and humanism—much like a family. Management systems stress rank and looking after employees. There is devotion to work, collective responsibility, and a high degree of employee productivity.
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Comparative Management in Focus
Latin America
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Not homogenous, but common similarities
“Being-oriented” compared with “doing-oriented”
Work and private lives are more closely integrated
Very important to maintain harmony and save face
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Developing Management Styles and Ways of Doing Business: Saudi Arabia
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Tribalism
Paternalism,
nepotism
Close
friendships
Person-orientation,
Theory Y management (treat workers with freedom and respect)
Honor,
shame
Conflict avoidance,
positive reinforcement
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This slide highlights examples from Exhibit 3-.
Developing Management Styles and Ways of Doing Business: Chinese Family Business
Small, family businesses predominate
“Guanxi” connections
People are put ahead of business – human centered management style
Globalization has resulted in more competitive management styles: the new generation manager is more individualistic, more independent and takes more risks
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The predominance of small businesses means that they are likely to become part of the value chain for most foreign firms.
Guanxi refers to the network of relationships that the Chinese cultivate, and it entails the exchange of favors and gifts to provide an obligation to reciprocate favors.
Leadership tends to be centralized and autocratic, but leaders feel a responsibility for their employees. As such, caring for people is put ahead of business concerns and efficiency.
Because organizations tend to be centralized, most have only two primary hierarchical levels. The highest level includes the boss and a few family members. The second level includes all of the employees.
Today, younger Chinese managers are integrating both Western and Chinese management styles to some extent.
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Under the Lens: Doing Business in Brazil
Almost everyone has a combination of European, African, and indigenous ancestry
Individual relationships are important
Brazilians take time when negotiating
Brazilian business is hierarchical, and meetings are required
Avoid confrontations
Dress well and conservatively
Business cards are exchanged
Having your business card printed in Portuguese on the obverse side is a good idea.
Comparative Management in Focus
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How diverse is a typical workplace in terms of different nationalities?
Give a rough percentage of gender distribution.
Does an individual’s social status or background play a role in hiring and/or promotion?
Are managers friendly and approachable, or strict and distant?
How formal is the business environment?
How are disagreements handled between individuals?
Are people in general hard working or laid back?
Are emotions, positive or negative, freely displayed?
Does religion have an impact on work practices?
How do people handle confrontation and/or criticism?
How do people deal with something that they complain about?
Are coworkers supportive of each other, or competitive?
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