International Management

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Chapter 3: Understanding the Role of Culture

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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Opening Profile: Saudi Arabian Culture

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Opening Profile: Saudi Arabian Culture

The intersection of ______ and business

A land of contrasts and paradoxes

Super-modern cities and modern economic and technical realities clashing with strict Islamic religious convictions and ancient social ______

McDonald’s, Coty Beauty, Harvey Nichols, Saks Fifth Avenue, Pizza Hut

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Opening Profile: Saudi Arabian Culture

______ :

Outnumber men in universities

Own 20 percent of all businesses

But account for only 7 percent of the workforce

60 percent of the workforce is ______

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Opening Profile: Saudi Arabian Culture

These examples illustrate how understanding the local culture and business environment can provide competitive advantage.

Managers must alter their approaches according to the ______ environment.

Unfortunately, many mangers underestimate the importance of culture—they lack cultural savvy. In many countries around the ______ .

Culture and its Effects on Organizations

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______

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 ______

______ Variables Affecting Management Functions

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Culture and its Effects on Organizations

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Cultural ______ or

Cultural ______ ?

An awareness of and an honest caring about another individual’s culture

Organizational Culture

Exists within and interacts with ______ culture

Varies a great deal from one organization, company, institution, or group to another

Represents those expectations, norms, and goals held in common by ______ of that group

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Organizational Culture

______ 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 ______ culture.

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Organizational Culture

Airline ______ 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.

______ provides more extensive training to employees in Russia than to those in the US because Russians are less familiar with working within a ______ system.

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The Effect of Culture on Organizational Process

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U.S. Culture	Alternative	Function Affected
______ 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	______ , rewards
Employment can be ended	Employment is for a ______	______ , recruitment

Culture’s Effects on Management

______ phenomenon of the shifting of individual management styles to become similar to one another

Self-Reference ______ 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

______—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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Influences on National Culture

Subcultures

Stereotyping

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Many countries comprise diverse ______ 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 ______ setting

Cultural Subsystems that Influence People and Their Behavior

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Kinship

Education System

Economic System

Political System

Health System

Recreation

Religion

Cultural Subsystems that Influence People and Their Behavior

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______ is the system adopted by a given society to guide family relationships.

In the US, this system consists primarily of the nuclear family. In some other countries the system consists of the extended family. In the latter case, family loyalty may be given primary consideration in corporate activities.

The formal and informal ______ received by workers influences the expectations placed on those workers and managers’ choices about recruitment, staffing, training, and leadership.

Cultural Subsystems that Influence People and Their Behavior

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The government imposes varying constraints on organizations and their freedom to do business.

______ commonly underlies moral and economic norms. In some countries, religious beliefs and practices permeate everyday business transactions and on-the-job behaviors.

For instance, McDonald’s does not serve ______ ______ in India out of respect for Hindus and Muslims. In Saudi Arabia, Islamic law prohibits the charging of ______ .

Cultural Subsystems that Influence People and Their Behavior

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Various ______ arise from the formal and informal groups that make up a society.

A country’s system of health affects employee productivity, expectations, and attitudes toward physical fitness, which in turn affect decisions about health care benefits, insurance, physical facilities, and sick days.

______’ attitudes about recreation can affect their work behavior and their perception of the role of work in their lives.

Cultural Value Dimensions

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______ dimensions and resulting cultural profiles provide only an approximation of national character. There may be variations in national culture—i.e., ______ may exist as well. E.G. China

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 ______ management

Can vary across subcultures

GLOBE Research Project Dimensions

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The ______ (Global Leadership and Organizational Behavior Effectiveness) dimensions are based on data gathered by 170 researchers over seven years.

18,000 managers in sixty-two countries.

Nine dimensions that distinguish cultures from one another and have implications for ______ : assertiveness, future orientation, performance orientation, humane orientation, gender differentiation, uncertainty avoidance, power distance, institutional collectivism vs. individualism, and in-group collectivism.

GLOBE Research Project Dimensions

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______ 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.

______ orientation concerns the importance of performance improvement and excellence and refers to whether people are encouraged to strive for continued improvement. ______ performance orientation countries place priority on things like tradition, loyalty, family, and background. They associate competition with defeat.

GLOBE Research Project Dimensions

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Assertiveness

Low: Sweden, Japan, Switzerland

High: Greece, Austria, Germany

Performance Orientation

Low: Russia, Argentina, Italy

High: U.S., Hong Kong, Singapore

GLOBE Research Project Dimensions

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______ orientation refers to the level of importance a society place on future-oriented behaviors such as planning and investing in the future.

______ orientation measures the extent to which a society encourages and rewards people for being fair, caring and kind.

GLOBE Research Project Dimensions

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Future Orientation

Low: Russia, Argentina, Italy

High: Netherlands, Switzerland, Singapore

Humane Orientation

Low: Germany, Spain, France

High: Malaysia, Ireland, Philippines

Cultural Clusters

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Hofstede’s Value Dimensions 116,000 people in 50 countries

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______ Distance

The level of acceptance by a society of the unequal distribution of power in institutions

______ Avoidance

The extent to which people in a society feel threatened by ambiguous situations

______

The tendency of people to look after themselves and their immediate families only and to neglect the needs of society

______

The desire for tight social frameworks, emotional dependence on belonging to “the organization,” and a strong belief in group decisions

Hofstede’s Value Dimensions

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Power Distance

MAL PHI MEX IND FRA ITA JPN SPA ARG US GER UK DEN ISR AUT

Uncertainty Avoidance

GRE JPN POR KOR ARA GER AUL CAN US UK IND DEN SIN

High Orientation Toward Authority Low

High Desire for Stability Low

Hofstede’s Value Dimensions

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______

AUL US UK CAN FRA GER SPA JPN MEX ITA KOR SIN

______(Femininity)(IOW Relational)

JPN MEX GER UK US ARA FRA KOR POR CHC DEN SWE

Individualism Collectivism

Assertive/Materialistic Relational

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

Trompenaar’s Dimensions 15, 000 Managers from 28 Countries

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Obligation (______ Cultures)

High Low

US GER SWE UK ITA FRA JPN SPA SIN

______ Orientation in Relationship (______ Cultures)

High Low

JPN UK GER SWE USA FRA SPA ITA CHI

Universalistic Particularistic

Neutral Affective

Trompenaar’s Dimensions

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Privacy in Relationship (______ Cultures)

Compartmentalize private and work life.

High Low

UK US FRA GER ITA JPN SWE SPA CHI

Source of Power and Status (______ Oriented)

High Low

US UK SWE GER FRA ITA SPA JPN CHI

Specific Diffuse

Personal Society

In ______ -oriented cultures status and influence come from class, age, gender, etc.

Critical Operational Value Differences

______—differences in temporal values

Change—control and pace of change

______ Factors—physical goods and status symbols versus aesthetics and the spiritual realism

______—“me/I” versus “we”

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‘More on ‘Time’

Perception of Time

Not ______ across cultures

Descriptions and values different

Commodity vs. fluid & flexible

Hall’s classifications

Monochronic

Polychronic

More on the next slide.

Perception of Time (cont’d)

Monochronic

Linear & finite

______

Economic language

______ precisely

Western orientation

Polychronic

Circular, never ending

Non-economic view

Fluid and ______

______ around

Differences Between People Who Use Monochronic and Polychronic Time

Monochronic	Polychronic
Does one thing at a time. ______ oriented Comfortable with short-term relations Sticks to plans More internally focused	Does many things at once People oriented Needs ______ relations Often changes plans More externally focused

The Internet and Culture

______ is changing culture in many societies—especially in terms of associations, education, and the economy.

______ also is changing how technology is used. The US collects a great deal of information from ______ .

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Examples

The Internet and Culture

Over 81 percent of Korean homes have high-speed Internet service.

Sweden requires all databases of personal information to be registered with the Data Inspection Board, their ______ regulatory agency.

About 75 percent of the world’s Internet market lives outside the United States: websites must reflect local markets, ______ , languages and currencies.

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Developing Cultural Profiles: Developing Comparative Management

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______ can gather considerable information on cultural variables from current research, personal observation, and discussion with people.

Managers can develop cultural ______ of various countries.

Managers can use these profiles to anticipate drastic differences that may be encountered in a given ______ .

It is difficult to pull together ______ cultural profiles in other countries unless one has lived there and been intricately involved with those people.

Comparative Management in Focus

______

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“Wa”—peace and harmony

A mix of authoritarian and humanism in the workplace

Emphasis on participative management, consensus, and ______

Open expression and conflict ______

Preference for rules and order, privacy

Dislike of inefficiency and tardiness

Assertive, but not aggressive

Organizations are centralized but still favor consensus ______ making

Comparative Management in Focus

Latin America

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Not homogenous, but common similarities

“______ -oriented” compared with “doing-oriented”

Work and private lives are more closely integrated

Very important to maintain ______ and save face

Developing Management Styles and Ways of Doing Business: Saudi Arabia

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______

Paternalism,

______

friendships

Person-orientation,

Theory Y management (treat workers with freedom and respect)

Honor,

shame

Conflict ______ ,

positive reinforcement

This slide highlights examples from Exhibit 3-8

Developing Management Styles and Ways of Doing Business: Chinese Family Business

Small, family businesses predominate

“______ ” connections: Networks of relationships of Chinese

People are put ahead of business – human centered management style

______ has resulted in more competitive management styles: the new generation manager in China is more individualistic, more independent and takes more risks. Closer to a United States management approach.

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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 ______

Brazilian business is ______ , and meetings are required

Avoid ______

Dress well and conservatively

______ cards are exchanged

Having your business card printed in Portuguese on the obverse side is a good idea.

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Summary of Key Points

Each society has its own unique culture

______ must develop ______ sensitivity

Researchers such as Hofstede and Trompenaar have created studies which help describe cultural profiles; GLOBE study created a body of data on cultural dimensions

Managers can use research results and personal observations to develop cultural ______ of countries

End Ch. 3