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Understanding the Role of Culture Chapter 3 Chapter 3

Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

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Page 1: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Understanding the Role of Culture

Chapter 3Chapter 3

Page 2: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

2

What is Culture?

The culture of a society comprises 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.

Page 3: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

DEFINITIONS OF CULTUREDEFINITIONS OF CULTURE

Culture is something - shared by all or almost all members of

some social group; passed on to the younger members by the

older members; shapes behavior, or structures one’s

perception of the world. ----- Carrol (1982)

The collective programming of the mind which distinguishes the members of one group or category of people from another.

----- Hofstede (1980)

Page 4: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Nature of Culture

LearnedSharedTransgenerationalSymbolicPatternedAdaptive

Page 5: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

INFLUENCE OF CULTURE ON BEHAVIORINFLUENCE OF CULTURE ON BEHAVIOR

Culture

Values

Attitudes

Behaviors

Source: Adler (1991)

Page 6: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Values in Culture

U.S. Cultural Values Alternative Values Examples of Management Function Affected

U.S.Values and Possible Alternatives

Individuals can influence the future (when there is a will there is a way).

Life follows a preordained course, and, human action is determined by the will of God.

Planning and scheduling

Individuals should be realistic in their aspirations.

Ideals are to be pursued regardless of what is “reasonable.”

Goal setting and career development

We must work hard to accomplish our objectives (Puritan ethic).

Hard work is not the only prerequisite for success. Wisdom luck, and time also are required.

Motivation and reward system

Page 7: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Values in Culture

U.S. Cultural Values Alternative Values Examples of Management Function Affected

U.S.Values and Possible Alternatives

A primary obligation of an employee is to the organization.

Individual employees have a primary obligation to their family and friends.

Loyalty, commitment, and motivation

Employees can be removed if they do not perform well.

The removal of an employee from a position involves a great loss of prestige and will rarely be done.

Promotion

Company information should be available to anyone who needs it within the organization.

Withholding information to gain or maintain power is acceptable.

Organization, communication, and managerial style

Page 8: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Values in Culture

U.S. Cultural Values Alternative Values Examples of Management Function Affected

U.S.Values and Possible Alternatives

Competition stimulates high performance.

Competition leads to unbalances and disharmony.

Career development and marketing

What works is important.. Symbols and the process are more important than the end point.

Communication, planning, and quality control.

Page 9: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Environmental Variables Affect Management

National Sociolocultural

Economic Physical ReligionLegal Technological EducationPolitical know-how Language

Cultural Attitudes Values Work Individualism Norms Time Change Beliefs Materialism

Employee Job Behavior Motivation Commitment Productivity Ethics

Page 10: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Cultural Orientations---Individual

What is the basic nature of people?

* GOOD: People are generally to be

trusted

* EVIL: People are not to be trusted

without prior knowledge of them

* CHANGEABLE/UNCHANGEABLE:

Kluckhoha & Strodtbeck (1961)

Page 11: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Cultural Orientations---World

What is our basic relationship to the environment around us ?

* MASTERY: To control and master nature and the environment around us.

* HARMONY: To be part of and to maintain the balance of forces in the world around us.

* SUBJUGATION: To follow our predetermined path and obey the natural and supernatural forces around us.

Page 12: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Cultural Orientations---Human Relations

What is the natural relationships among humans?

* INDIVIDUAL: Our main responsibility is to and for ourselves and immediate family.

* COLLECTIVE: Our main responsibility is to and for a large group of people.

* HIERARCHY: Power and responsibility are unequally distributed, with those having power over others also having responsibility for them.

Page 13: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Cultural Orientations---Activity

What is human’s naturally preferred of activity?

* DOING: To constantly work to achieve goals.

* BEING: To be spontaneous, do things in their own time, and live life to its fullest.

* THINKING: To be rational, think things through carefully and thoroughly before acting.

Page 14: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Cultural Orientations---Time

What is human’s orientation to time? * PAST: The past serves as the best precedent

for the present and future and past experience is the most important criterion by which to make decisions.

* PRESENT: Current and short-term future needs provide the most important criteria by which to make decisions.

* FUTURE: Long-term future goals are most important, and current needs should be sacrificed willingly for future gains.

Page 15: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Cultural Orientations---Space

What is human orientation to space?

* PRIVATE: Space and its contents belong to people, territories are important, and people cannot freely enter each other’s territories.

* PUBLIC: Space and its contents belong to no one in particular and can be used by everyone freely.

Page 16: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Strengths of the Model

In general terms, cultures can be compared along distinct orientations;

Comparative models apply to cross-cultural management.

Page 17: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Weaknesses of the Model

The orientations and variations are imprecisely defined;

Interpretations are bound to be subjective.

Not centrally concerned with management studies, and did not describe the implications for management.

Page 18: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

DIMENSIONS OF CULTURE BY HOFSTEDEDIMENSIONS OF CULTURE BY HOFSTEDE

Power Distance Individualism vs. Collectivism Masculinity vs. Femininity Uncertainty Avoidance Long-term vs. Short-term

Based on the survey of more than 116,000 managers and employees in over 60 countries (Hofstede, 1980) and the research by the Chinese Culture Connection team (1987).

Page 19: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

POWER DISTANCEPOWER DISTANCE

The extent to which the members of a society accept that power in institutions and organizations is distributed unequally.

Page 20: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

High Power Distance

Managers should be careful not to ask the opinions of subordinates too frequently, otherwise the manager might appear to be weak and incompetent;

Higher level managers should receive more benefits and privileges than lower level managers;

Managers should make most decisions without consulting subordinates.

Page 21: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

POWER DISTANCE IN THE WORKPLACEPOWER DISTANCE IN THE WORKPLACE

Small power distance Hierarchy - inequality

of roles Decentralization Subordinates expect to

be consulted Ideal boss is a

resourceful democrat

Large power distance Hierarchy - existential

inequality Centralization Subordinates expect to

be told what to do Ideal boss is a good

father

Page 22: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

INDIVIDUALISM VS. INDIVIDUALISM VS. COLLECTIVISMCOLLECTIVISM

Individualism relates to “societies in which the ties between individuals are loose”.

Collectivism pertains to societies in which people are “integrated into strong, cohesive ingroups”

Page 23: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Collectivism

It is important for a manager to encourage loyalty and a sense of duty in subordinates;

Being an accepted member of the group is more important than having autonomy and independence on the job;

Individual rewards are not as important as group welfare;

Group success is more important than individual success.

Page 24: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

INDIVIDUALISM AND COLLECTIVISM

IN THE WORKPLACE

Collectivist Relationship is perceived in

moral terms Management of groups Relationship more

important than task Reward given to the group

Individualist Relationship is a contract

based on mutual advantage Management of individuals Task more important than

relationship Reward linked to

individual’s performance

Page 25: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Masculinity/FemininityMasculinity/Femininity

Masculinity is the extent to which the dominant values in society emphasize assertiveness and the acquisition of money and things.

Femininity is the extent to which the dominant values in society emphasize relationships among people, concern for others, and the overall quality of life.

Page 26: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Masculinity

It is more important for men to have a professional career than it is for women.

Women do not value recognition and promotion in their work as much as men do.

It is preferable to have a man in higher level position rather than a woman.

There are some jobs in which a man can always do better than a woman.

Page 27: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

MASCULINITY/FEMININITY IN MASCULINITY/FEMININITY IN WORKPLACEWORKPLACE

Feminine Work in order to live Stress on equality and

quality of work life Managers use intuition

and strive for consensus Resolution of conflicts by

compromise and negotiation

Masculine Live in order to work Stress on equity,

competition, and performance

Managers expect to be decisive and assertive

Resolution of conflicts by fighting them out

Page 28: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Uncertainty AvoidanceUncertainty Avoidance

The extent to which the people in a society feel threatened by ambiguous situations, and have created beliefs and institutions that try to avoid these.

Page 29: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Strong Uncertainty Avoidance

It is important to have job requirements and instructions spelled out in details so that people always know what they are expected to do.

It is better to have a bad situation that you know about than to have an uncertain situation which might be better.

People should avoid making changes because things could get worse.

Page 30: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

UNCERTAINTY AVOIDANCE IN WORKPLACEUNCERTAINTY AVOIDANCE IN WORKPLACE

Weak UA No more rules than is

strictly necessary Time is a framework for

orientation Comfortable feeling

when lazy Motivation by

achievement and esteem

Strong UA Emotional need for rules Time is money

Inner urge to work hard Motivation by security

and esteem or belongingness

Page 31: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Long-Term vs. Short-Term Orientation

The degree of values oriented towards the future or towards the past and present.

Page 32: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Key Differences between Long-Term and Short-Term Orientation Societies Societies

Short-Term Respect for social and

status obligations regardless of cost

Small savings quote Concern with

possessing the truth Respect for traditions

Long-Term Respect for social and

status obligation within limits

Large savings quote Concern with respecting

the demands of Virtue Adaptation of traditions

to a modern context

Page 33: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Weaknesses of Hofstede’s Model

It assumes that national territory and the limits of the culture correspond.

The respondents worked within a single industry and a single multinational.

Inappropriate assumption of bipolarity in two dimensions: Individualism and masculinity.

Page 34: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Strengths of Hofstede’s Model

The information populations controlled across countries.

The four dimensions tap into deep cultural values and make significant comparisons between national cultures.

The connotations of each dimension are highly relevant.

No other study compares so many cultures in so much details.

Page 35: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Trompenaar’s research was conducted over a 10-year period and published in 1994.

He gathered data from 15,000 managers from 28 countries, representing 47 national cultures.

Page 36: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Universalism: belief that ideas and practices can be applied everywhere in the world without modification– In countries with high universalism, focus is more on

formal rules, business contracts are adhered to closely, people believe “a deal is a deal”

– Includes Canada, U.S., Germany, U.K., Netherlands, France, Japan, Singapore, Thailand, and Hong Kong.

VS.Universalism Particularism

Page 37: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Particularism: belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere– In countries with high particularism, legal

contracts often modified, well-acquainted people often change the way in which deals are executed

– Includes China and South Korea

VS.Universalism Particularism

Page 38: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Individualism: people regard themselves as individuals

– In countries high on individualism, people stress personal and individual matters, and are more likely to make negotiated decisions on the spot by a representative, achieve things alone and assume great personal responsibility

– Includes Canada, Thailand, U.K., and U.S.

VS.Individualism Communitarianism

Page 39: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Communitarianism: people regard themselves as part of a group– In countries high on communitarianism, people

value group-related issues, refer decisions to committees, achieve things in groups and jointly assume responsibility

– Includes Singapore, Malaysia and Korea

VS.Individualism Communitarianism

Page 40: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Neutral: culture in which emotions are held in

– In high neutral culture countries, people try not to show their feelings, act stoically and maintain their composure

– Includes Japan and the U.K. Affective: culture in which emotions are expressed openly and

naturally

– In high emotional culture countries, people smile a great deal, talk loudly when excited and greet each other with enthusiasm

– Includes Mexico and China

VS.Neutral Affective

Page 41: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Specific culture: individuals have a large public space shared with others and a small private space they guard closely and share only with close friends and associates– In high specific cultures, people are more open

and extroverted, and there is a strong separation of work and private life

– Includes U.K., U.S. and France

VS.Specific Diffuse

Page 42: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Diffuse culture: public and private space are similar in size, individuals guard public space carefully because it is shared with private space– In high diffuse cultures, people often appear to be

indirect and introverted, and work and private life often are closely linked

– Includes China and Spain

VS.Specific Diffuse

Page 43: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Achievement culture: status is accorded based on how well people perform their functions– Includes U.S., Switzerland and the U.K.

Ascription culture: status is based on who or what a person is– Includes Spain, Japan, and China

VS.Achievement Ascription

Page 44: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Sequential approach– People do only one activity at a time, keep appointments

strictly, prefer to follow plans as laid out (United States) Synchronous approach

– People tend to multi-task, view appointments as approximate, schedules are seen as subordinate to relationships (France, and Mexico)

Present oriented/future oriented– Future is more important (U.S., Italy, and Germany)– Present is more important (Venezuela, Indonesia, and Spain)– All three time periods equally important (France and Belgium)

Time

Page 45: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Trompenaars’ Cultural Dimensions

Inner-directed: people believe in controlling outcomes

– Includes U.S., Switzerland, Australia, Belgium, Indonesia, Hong Kong, Greece, Singapore, and Japan

Outer-directed: people believe on letting things take their own course

– Includes China and many other Asian countries

The Environment

Page 46: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

GLOBE Project The GLOBE (Global Leadership and

Organizational Behavior Effectiveness) Multi-country study and evaluation of

cultural attributes and leadership behavior Dimensions are based on data gathered by

170 researchers over seven years. The data were collected from 18,000 managers in sixty-two countries.

Page 47: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

GLOBE Project Based on beliefs that

– Certain attributes that distinguish one culture from others can be used to predict the most suitable, effective and acceptable organizational and leader practices within that culture

– Societal culture has direct impact on organizational culture

– Leader acceptance stems from tying leader attributes and behaviors to subordinate norms

Page 48: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

GLOBE Project: Nine Dimensions

Assertiveness Future orientation Performance orientation Humane orientation Gender differentiation Uncertainty avoidance Power distance Institutional collectivism vs. individualism In-group collectivism

Page 49: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

GLOBE 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.– Low: Sweden, New Zealand, Switzerland– High: Greece, Austria, Germany

Page 50: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

GLOBE Dimensions 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.– Low: Russia, Argentina, Greece– High: New Zealand, Hong Kong, Singapore

Page 51: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

GLOBE Dimensions Future orientation Future orientation refers

to the importance a society attaches to future-oriented behaviors, such as planning and investing in the future. High future orientation countries tend to save and have a longer time horizon for decisions. Low future orientation countries are the opposite.– Low: Russia, Argentina, Poland– High: Netherlands, Switzerland, Singapore

Page 52: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

GLOBE Dimensions Humane orientation concerns the extent to

which a society encourages and rewards being fair, altruistic, generous, caring, and kind. Paternalism and patronage, tolerance, and harmony are values in high humane orientation cultures. In low humane orientation cultures people value power, material possessions, and self-enhancement.– Low: Germany, Spain, France– High: Malaysia, Ireland, Philippines

Page 53: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

Cultural Clusters

Page 54: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

How Culture Affects Managerial Approaches

In some societies, top managers make all important organizational decisions. In others, these decisions are diffused throughout the enterprise, and middle- and lower-level managers actively participate in, and make, key decisions.

VS.Centralized Decision

MakingDecentralized

Decision Making

Page 55: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

How Culture Affects Managerial Approaches

In some societies, organizational decision makers are risk averse and have great difficulty with conditions of uncertainty. In others, risk taking is encouraged, and decision making under uncertainty is common.

VS.Safety Risk

Page 56: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

How Culture Affects Managerial Approaches

In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses and commissions. In others, cultural norms require group rewards, and individual rewards are frowned on.

VS.Individual Rewards Group Rewards

Page 57: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

How Culture Affects Managerial Approaches

In some societies, much is accomplished through informal means. In others, formal procedures are set forth and followed rigidly.

VS.Informal Procedures Formal Procedures

Page 58: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

How Culture Affects Managerial Approaches

In some societies, people identify very strongly with their organization or employer. In others, people identify with their occupational group, such as engineer or mechanic.

VS.High Organizational

LoyaltyLow Organizational

Loyalty

Page 59: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

How Culture Affects Managerial Approaches

Some societies encourage cooperation between their people. Others encourage competition between their people.

VS.Cooperation Competition

Page 60: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

How Culture Affects Managerial Approaches

Some cultures focus most heavily on short-term horizons, such as short-range goals of profit and efficiency. Others are more interested in long-range goals, such as market share and technologic development.

VS.Short-term Horizons Long-term Horizons

Page 61: Understanding the Role of Culture Chapter 3 2 What is Culture? F The culture of a society comprises the shared values, understandings, assumptions, and

How Culture Affects Managerial Approaches

The culture of some countries encourages stability and resistance to change. The culture of others puts high value on innovation and change.

VS.Stability Innovation