Chapter 4: The Role of Culture

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PowerPoint slides by R. Dennis Middlemist,
Professor of Management, Colorado State University
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The Role of Culture

• The specific objectives of this chapter are
• DEFINE the term culture, and discuss some of the
  comparative ways of differentiating cultures.
• DESCRIBEthe concept of cultural values, and
  relate some of the international differences,
  similarities, and changes occurring in terms of
  both work and managerial values.

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The Role of Culture

• The specific objectives of this chapter are

• IDENTIFY the major dimensions of culture relevant
  to work settings, and discuss their effect on
  behavior in an international environment.
• DISCUSS the value of country cluster analysis and
  relational orientations in developing effective
  international management practices.

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The Nature of Culture

• Culture
• Acquired knowledge that people use to interpret
  experience and generate social behavior
• forms values
• creates attitudes
• influences behavior.

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Characteristics of Culture
Learned
Shared
Adaptive
Culture
Transgenerational
Patterned
Symbolic
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Priorities of Cultural Values
Table 4-1 Priorities of Cultural Values United
States, Japan, and Arab Countries
United States Japan Arab Countries

• Freedom
• Independence
• Self-reliance
• Equality
• Individualism
• Competition
• Efficiency
• Time
• Directness
• Openness

• Belonging
• Group harmony
• Collectiveness
• Age/seniority
• Group consensus
• Cooperation
• Quality
• Patience
• Indirectness
• Go-between

• Family security
• Family harmony
• Parental guidance
• Age
• Authority
• Compromise
• Devotion
• Patience
• Indirectness
• Hospitality

Note 1 represents the most important cultural
value, 10 the least.
Adapted from Table 4-1 Priorities of Cultural
Values United States, Japan, and Arab Countries
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How Culture Affects Managerial Approaches
Centralized Decision Making
Decentralized Decision Making
VS.

• 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.

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How Culture Affects Managerial Approaches
VS.
Safety
Risk

• 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.

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How Culture Affects Managerial Approaches
Individual Rewards
Group Rewards
VS.

• 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.

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How Culture Affects Managerial Approaches
Informal Procedures
Formal Procedures
VS.

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

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How Culture Affects Managerial Approaches
High Organizational Loyalty
Low Organizational Loyalty
VS.

• 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.

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How Culture Affects Managerial Approaches
VS.
Cooperation
Competition

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

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How Culture Affects Managerial Approaches
Short-term Horizons
Long-term horizons
VS.

• 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.

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How Culture Affects Managerial Approaches
Stability
Innovation
VS.

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

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A Model of Culture
The explicit artifacts and products of the society
The norms and values that guide the society
The implicit, basic assumptions that guide
peoples behavior
Adapted from Figure 41 A Model of Culture
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Values in Culture

• Values
• Basic convictions that people have
• right and wrong
• good and bad
• important and unimportant
• Learned from the culture in which the individual
  is reared
• Influence ones behavior
• Differences in cultural values may result in
  varying management practices

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Values in Culture
French culture
U.S. culture
Adapted from Figure 42 Comparing Cultures as
Overlapping Normal Distributions
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Values in Culture
French culture
U.S. culture
How the Americans see the French
How the French see the Americans

• arrogant
• flamboyant
• hierarchical
• emotional

• naïve
• aggressive
• unprincipled
• workaholic

Adapted from Figure 43 Stereotyping from the
Cultural Extremes
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Values in Culture
Table 4-2 U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples
of Management Function Affected
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
Adapted from Table 4-2 U.S. Values and Possible
Alternatives
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Values in Culture
Table 4-2 U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples
of Management Function Affected
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
Adapted from Table 4-2 U.S. Values and Possible
Alternatives
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Values in Culture
Table 4-2 U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples
of Management Function Affected
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.
Adapted from Table 4-2 U.S. Values and Possible
Alternatives
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Values in Culture

• There is a reasonably strong relationship between
  the level of success achieved by managers and
  their personal values.
• Value patterns predict managerial success and
  could be used in selection and placement
  decisions.
• Although there are country differences in the
  relationships between values and success,
  findings across four countries (U.S., Japan,
  Australia, India) are quite similar.
• Values of more successful managers appear to
  favor
• Pragmatic, dynamic, achievement-oriented
• Active role in interaction with others
• Values of less successful managers tend toward
• Static and passive values
• Relatively passive roles in interacting with
  others

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Hofstedes Cultural Dimensions

• Extent to which less powerful members of
  institutions and organizations accept that power
  is distributed unequally
• High power distance countries people blindly
  obey the orders of their superiors, centralized
  and tall organization structures
• Low power distance countries flatter and
  decentralized organization structures, smaller
  ratio of supervisors

Power Distance
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Hofstedes Cultural Dimensions

• Extent to which people feel threatened by
  ambiguous situations and have created beliefs and
  institutions that try to avoid such situations
• High uncertainty avoidance countries people have
  high need for security, strong belief in experts
  and their knowledge, structured organizational
  activities, more written rules, less risk taking
  by managers
• Low uncertainty avoidance countries people are
  more willing to accept risks associated with the
  unknown, less structured organizational
  activities, fewer written rules, more risk taking
  by managers, higher employee turnover, more
  ambitious employees

Power Distance
Uncertainty Avoidance
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Hofstedes Cultural Dimensions

• Individualism Tendency of people to look after
  themselves and their immediate family only
• Countries high in individualism tend to be
  wealthier, support protestant work ethic, greater
  individual initiative, promotions based on market
  value
• Collectivism Tendency of people to belong to
  groups or collectives and to look after each
  other in exchange for loyalty
• Countries high in collectivism tend to be
  poorer, less support for protestant work ethic,
  less individual initiative, promotions based on
  seniority

Power Distance
Uncertainty Avoidance
Individualism/Collectivism
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Hofstedes Cultural Dimensions

• Masculinity a culture in which the dominant
  social values are success, money and things
• Countries high in masculinity great importance
  on earnings, recognition, advancement, challenge,
  and wealth. High job stress.
• Femininity a culture in which the dominate
  social values are caring for others and the
  quality of life
• Countries high in femininity great importance on
  cooperation, friendly atmosphere, employment
  security, group decision making, and living
  environment. Low stress and more employee freedom.

Power Distance
Uncertainty Avoidance
Individualism/Collectivism
Masculinity/ Femininity
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Attitudinal Dimensions of Culture

• Work value and attitude similarities
• Smallest space analysis (SSA) yields clusters of
  countries similar to each other
• Anglo-American (U.S., U.K., Australia)
• Nordic (Norway, Finland, Denmark)
• South American (Venezuela, Mexico, Chile)
• Latin European (France, Belgium)
• Germanic (Germany, Austria, Switzerland)
• Other researchers have found other clusters,
  depending on variables used

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Synthesis of Country Clusters
Adapted from Figure 48 A Synthesis of Country
Clusters
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Trompenaars Cultural Dimensions
VS.
Universalism
Particularism

• 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.

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Trompenaars Cultural Dimensions
VS.
Universalism
Particularism

• 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

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Trompenaars Cultural Dimensions
VS.
Individualism
Communitarianism

• 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., U.S.,
  Netherlands, France, Japan, China, Singapore, and
  Hong Kong

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Trompenaars Cultural Dimensions
VS.
Individualism
Communitarianism

• 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 Malaysia and Korea

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Trompenaars Cultural Dimensions
VS.
Neutral
Emotional

• 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.
• Emotional 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, the Netherlands and Switzerland

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Trompenaars Cultural Dimensions
VS.
Specific
Diffuse

• 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 Austria, U.K., U.S. and Switzerland

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Trompenaars Cultural Dimensions
VS.
Specific
Diffuse

• 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 Venezuela, China, and Spain

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Trompenaars Cultural Dimensions
VS.
Achievement
Ascription

• Achievement culture status is accorded based on
  how well people perform their functions
• Includes Austria, U.S., Switzerland and the U.K.
• Ascription culture status is based on who or
  what a person is
• Includes Venezuela, Indonesia, and China

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Trompenaars Cultural Dimensions
Time

• 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)

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Trompenaars Cultural Dimensions
The Environment

• 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

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GLOBE Project

• Multi-country study and evaluation of cultural
  attributes and leadership behavior
• 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

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GLOBE Project
Table 4-6 GLOBE Cultural Variable Results
Variable Highest Medium Lowest Ranking Ranking Ra
nking
Assertiveness Spain, U.S. Egypt, Ireland Sweden,
New Zealand
Future orientation Denmark, Canada Slovenia,
Egypt Russia, Argentina
Gender differentiation South Korea, Italy,
Brazil Sweden Denmark Egypt
Uncertainty avoidance Austria, Denmark Israel,
U.S. Russia, Hungary
Power distance Russia, Spain England,
France Demark, Netherlands
Collectivism/Societal Denmark, Hong Kong,
U.S. Greece, Hungary Singapore
In-group collectivism Egypt, China England,
France Denmark, Netherlands
Performance orientation U.S., Taiwan Sweden,
Israel Russia, Argentina
Humane orientation Indonesia, Egypt Hong Kong,
Germany, Spain Sweden
Adapted from Table 4-6 GLOBE Cultural Variable
Results