Transcript Document 7509846

Mgt 485
CHAPTER 5
CULTURE
Irwin/McGraw-Hill [Modified by EvS]
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_produ
ct_codes.asp
– http://www.officialexportguide.com/
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-2
Imports – through U.S. Intntl. Trade Commission (USITC)
http://www.ita.doc.gov/td/tic/tariff/country_tariff_info.htm
http://r0.unctad.org/trains/2001%20Egypt.htm
http://www.amcham.org.eg/dbe/trade.asp
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-3
Exports – through the Census Bureau (no export qty restrictions)
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-4
Additional Internet Sites:
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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/foreigntrade/statistics/product/enduse/exports/index.html
http://library.uncg.edu/depts/docs/international/intermkt.html
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-5
Understanding Culture
Individual
Group
Culture
Personality
Beliefs
Values
Assumptions
Expectations
Irwin/McGraw-Hill [Modified by EvS]
Norms
Values
Expectations
Manners
Rituals
Symbols
Artifacts
Customs
Behavior
Rights
Traditions
Mgt 470-5-6
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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-7
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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-8
Management Approaches Affected
by Cultural Diversity
Centralized vs.
Decentralized
decision making
Cultural
Diversity
Informal vs.
formal procedures
Safety vs. risk
Individual vs.
group rewards
Sort-term vs.
long-term horizons
Irwin/McGraw-Hill [Modified by EvS]
High vs. low
organizational
loyalty
Cooperation vs.
competition
Stability vs.
innovation
Mgt 470-5-9
Nature of Culture
Learned
Culture is acquired by learning and experience
Shared
People as a member of a group, organization ,or society share
culture
Transgenerational
Culture is cumulative, passed down from generation to generation
Symbolic
Culture is based on the human capacity to symbolize
Patterned
Culture has structure and is integrated
Adaptive
Culture is based on the human capacity to change or adapt
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-10
Comparing Cultures as Overlapping
Normal Distribution Figure 5-2
French Culture
Irwin/McGraw-Hill [Modified by EvS]
U.S. Culture
Mgt 470-5-11
Stereotyping from the Cultural Extremes
How Americans see the French
• arrogant
• flamboyant
• hierarchical
• emotional
French Culture
Irwin/McGraw-Hill [Modified by EvS]
How French see Americans
• naive
• aggressive
• unprincipled
• workaholic
U.S. Culture
Mgt 470-5-12
Value Priorities
United States
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Freedom
Independence
Self-Reliance
Equality
Individualism
Competition
Efficiency
Time
Directness
Openness
Japan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Arab Countries
Belonging
1. Family Security
Group Harmony
2. Family Harmony
Collectiveness
3. Paternalism
Age/Seniority
4. Age
Group Consensus 5. Authority
Cooperation
6. Compromise
Quality
7. Devotion
Patience
8. Patience
Indirectness
9. Indirectness
Go-between
10. Hospitality
Values- basic convictions that people have
regarding what is right and wrong, good
and bad, important or unimportant
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-13
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
Irwin/McGraw-Hill [Modified by EvS]

Similarities
– Strong relationship between
managerial success and
personal values
– Value patterns predict
managerial success
– Successful managers favor
pragmatic, achievementoriented values while less
successful managers
prefer static and
passive values
Mgt 470-5-14
Hofstede’s Dimensions of Culture
Power Distance (Large or Small)
– The extent to which less powerful members of
institutions accept that power is distributed unequally
 Large
(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]
Mgt 470-5-15
Uncertainty Avoidance (High or Low)
– The extent to which people feel threatened by
ambiguous situations
 High( Germany, Japan, Spain)
– high need for security
– strong beliefs in experts
 Low (Denmark, UK)
– willing to accept risks
– less structuring of activities
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-16
 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

Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-17
 Masculinity
(Vs. Femininity)
– the dominant values in society are success,
money and things
 emphasis on earning and recognition
 high stress workplace
• Japan
 Femininity
– the dominant values in society are caring for
others and the quality of life
 employment security
 employee freedom
• Scandinavian cultures
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-18
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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-19
A Synthesis of Country Cultures
NEAR
EASTERN
Turkey
Iran
ARAB
Greece
Bahrain
NORDIC
Finland
Denmark
Sweden
Abu-Dhabi
Saudi Arabia
Oman
Figure 5-8
GERMANIC
Austria
Germany
Switzerland
United States
Singapore Malaysia
Hong
Canada ANGLO
FAR
Kong
EASTERN
United Kingdom
Argentina France
Philippines Chile
Ireland
Indonesia
Belgium
Mexico
South Africa
LATIN
Taiwan
LATIN
AMERICAN
EUROPEAN
Peru
Italy Spain
Brazil
Israel
Japan
India
INDEPENDENT
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-20
Comparing Dimensions
Hofst ede
Power Dist ance (high / low)
Uncert aint y Avoidance (high / low)
Individualism / Collect ivism
Masculine / Feminine (Success/ Qualit y)
Time Orient at ion (Long / Short )
Irwin/McGraw-Hill [Modified by EvS]
Trompenaars
Individualism / Collect ivism
Time (sequent ial / synchronous)
Neut ral / Emot ional (emot ional cont rol)
Universalism / Part icularism
Specific / Diffuse (sharing space)
Achievement / Ascript ion (abilit y / st at us)
Environment al (cont rol / laissez faire)
Mgt 470-5-21
Trompenaar’s Cultural Dimensions
Interpersonal Relationships
Universalism vs. Particularism
Universalism: 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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-22
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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-23
Neutral Vs. Affective
Neutral: emotions are held in check
–
Japan and the U.S.
Affective: emotions are openly and naturally expressed
–
Mexico, Netherlands, and Switzerland
Specific Vs. Diffuse
Specific: 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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-24
Achievement Vs. Ascription
Achievement: 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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-25
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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-26
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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-27
Variations in Time Orientation
Issue
Time
orientation
Past
Variations
Present
Future
Managerial Impact
General
Specific by Variation
Planning Extension of past Short-term
Long-term
behavior
Emphasis in
Precedence
Current
Desired effects
decision
impact
criteria
Reward
Historically
Currently
Contingent on
systems
determined
contracted
performance
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-28
 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
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-29
Trompenaars’ Cultural Groups
Table 5-5
Anglo cluster
Relationship
Individualism
Communitarianism
Specific relationship
Diffuse relationship
Universalism
Particularism
Neutral relationship
Emotional relationship
Achievement
Ascription
Irwin/McGraw-Hill [Modified by EvS]
United States
United Kingdom
x
x
x
x
x
x
x
x
x
x
Mgt 470-5-30
Trompenaars’ Cultural Groups
Table 5-5
Asian cluster
Relationship
Individualism
Communitarianism
Specific relationship
Diffuse relationship
Universalism
Particularism
Neutral relationship
Emotional relationship
Achievement
Ascription
Irwin/McGraw-Hill [Modified by EvS]
Japan
China
Indonesia
Hong Kong
Singapore
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Mgt 470-5-31
Trompenaars’ Cultural Groups
Table 5-5
Latin American cluster
Relationship
Individualism
Communitarianism
Specific relationship
Diffuse relationship
Universalism
Particularism
Neutral relationship
Emotional relationship
Achievement
Ascription
Irwin/McGraw-Hill [Modified by EvS]
Argentina
Mexico
x
x
x
x
x
x
Venezuela
Brazil
x
x
x
x
x
x
x
x
x
x
x
x
x
Mgt 470-5-32
Trompenaars’ Cultural Groups
Table 5-5
Latin-European cluster
Relationship
Individualism
Communitarianism
Specific relationship
Diffuse relationship
Universalism
Particularism
Neutral relationship
Emotional relationship
Achievement
Ascription
Irwin/McGraw-Hill [Modified by EvS]
France
Belgium
Spain
Italy
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Mgt 470-5-33
Trompenaars’ Cultural Groups
Table 5-5
Germanic cluster
Relationship
Austria Germany Switzerland Czechoslovakia
Individualism
x
Communitarianism
Specific relationship
x
Diffuse relationship
Universalism
x
Particularism
Neutral relationship
x
Emotional relationship
Achievement
x
Ascription
Irwin/McGraw-Hill [Modified by EvS]
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Mgt 470-5-34
Environment
Inner Directed
Believe in controlling outcomes
– U.S.
Outer Directed
Believe in letting things take their own
course
– Asian Cultures
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-35
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]
Mgt 470-5-36
Variations in Human Nature
Issue
Basic human
nature
Evil
Variations
Neutral or
mixed
Good
Managerial Impact
General
Specific by Variation
Control
Tight, suspicion- Moderate,
Loose,
system
based
experiencedinformationbased
based
Management
Close
Moderate
Laissez-faire ,
style
supervision, Top- supervision,
participative
down
consultative
Organization
Adversarial,
Collaborative,
climate
contractual
informal
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-37
FIGURE 2
Influence Pattern of Culture on Assumptions, Perceptions, and Management Behavior
Potential for success or conflict,
and unintended consequences
Person “a” from
culture “x”
Person “b” from
culture “y”
Interpersonal
communication
and management
situations
Individual
perceptions
Social, legal,
political,
economic
institutions
Social, legal,
political,
economic
institutions
Individual
perceptions
Different interpretation
(perceptions) of events,
interactions, and behavior
of other people
Culture “x”
Value orientations:
Systemic
Learned
Shared
Contributing factors
History
Language
Religion
Environment
Irwin/McGraw-Hill [Modified by EvS]
Different shared
mental programs
and assumptions
about the “shoulds”
or “ought-to’s”
(both content
and process
assumptions)
Different
backgrounds
Culture “y”
Value orientations:
Systemic
Learned
Shared
Contributing factors
History
Language
Religion
Environment
Mgt 470-5-38
Variations in Relations to Nature
Issue
Relation to
nature
Subjugation to
nature
Variations
Harmony with
nature
Mastery over
nature
Managerial Impact
General
Specific by Variation
Goal setting
Qualified,
Contingent,
Specific,
hesitant, vague
moderated
confident,
unambiguous,
high level
Budget
Futile, outcomes
Exercise,
Real, relevant,
systems
predetermined "actuals" are
useful
real
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-39
Variations in Activities
Issue
Activity
Being
Variations
Containing
and
controlling
Doing
Managerial Impact
Specific by Variation
Emotional
Rational
Pragmatic
General
Decision
criteria
Rewards
Feelings-based
system
Concern for
Spontaneous
output
Information Vague, feelingand
based, intuitive
measurement
systems
Irwin/McGraw-Hill [Modified by EvS]
Logic-based
Results-based
Balanced
objectives
Complex,
qualitative,
broad
Compulsive
Simple,
operational, few
indices
Mgt 470-5-40
Variations in Relationships
Issue
Relationships
General
Organizational
structure
Communication
and influence
patterns
Reward system
Hierarchical
Variations
Group
Individualistic
Managerial Impact
Specific by Variation
Attention on
Attention on Informal, flexible
vertical
horizontal
behavior vis-àdifferentiation
differentiation
vis structures
Authority-based
Within group
Multiple, asemphasis
needed, open
Teamwork
Irwin/McGraw-Hill [Modified by EvS]
Status-based
Group-based
Regulated,
formal
Normative,
routine
Individually
based
Voluntary,
informal
Mgt 470-5-41
Variations in Spacial Orientation
Issue
Space
General
Communication
and influence
patterns
Office layout
Interaction
patterns
Irwin/McGraw-Hill [Modified by EvS]
Private
Variations
Mixed
Public
Managerial Impact
Specific by Variation
One-to-one,
Selective,
Wide, open
secret
semiprivate
Emphasis on
barriers (closed
doors, large
desks, ets.)
Physically
distant, one-toone, serial
Specialized
Open concept
spaces (informal
furniture next to
formal desk)
Moderately
Physically close,
spaced,
frequent
moderated
touching,
numbers,
multiple relations
organized
(sometimes
spontaneously)
Mgt 470-5-42
IKEA case
 Strength
from mastery of value chain
– unique design capabilities
– unique sourcing
– tightly controlled logistic
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-43
IKEA case
 Can
a company’s “national culture”
become a source of competitive
advantage?
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-44
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]
Mgt 470-5-45
IKEA case
 Strategic
Sourcing
 Marketing Mix
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-46
IKEA case
 Management
- Informal, open, caring
– Participatory HR
 How
did Germany react?
 France?
 U.S.?
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-47
IKEA case
 Lessons?
– Appeal to customer’s needs & wants
convenience
– Staged
– Focused
– “Potato field” approach
– Luck & boldness
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-5-48