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Human & Cultural/Behavioural

Human behaviour - as individuals, as groups, as `society - more than 200 `selfgoverning' nations around world. Language & religion logical variables to group
individuals.
Behavioural practices & business activities are linked to employee motivation,
relationship preferences, risk-taking behaviour, information & task processing
Many managers evaluate only countries they know & understand geographic vs
psychic/cultural distances, thus miss opportunities elsewhere, group nations on
the basis of broad similarities.
Possible strategies for dealing with cultural differences:
Little or no adjustment
Orientate/educate managers

Culture Impact of other global forces

1 of 7 forms of Globalisation spread of Western culture/values, & threat to

individual national cultures.
Culture influenced by other forces of globalisation:
- Production manufacturing brings companies from other countries with
different operating procedures
- Markets - similar products offered around World
- Labour - migration transfers language & culture
- Technology ICT spreads Western culture
Individuals often desire/aspire to other cultures which leads to progress,
Governments are concerned about reduction of national identity

Defining Culture & Cultural Dynamics

Culture: specific learned norms of a society that reflect attitudes, values, &
beliefs that influence behaviour.
A Society: relatively homogeneous group of people, who share attitudes, values,
beliefs, & customs.
Culture set early in individuals life BUT dynamic & evolves over time due contact
with other cultures choice or imposition.
Cultural collision likely to occur if:
Firm implements practices not reflecting local customs/values and/or
Employees unable to accept/adjust to host-country customs

National culture formation & change

Basic similarity amongst people within a country is cause & effect of national
boundaries.
National identity perpetuated through rites/symbols of a country - largely based
on common perception of history.
Subcultures (eg. religion) may link groups from different nations more closely
than certain groups within nations.
Societal values/customs constantly evolve globalisation
Cultural imperialism = imposition of one culture on another
Elements from outside:
Creolization: Creolization is the process in which Creole cultures emerge in the
New World. As a result of colonization there was a mixture between people of
indigenous ethnicity.
Cultural diffusion: Cultural diffusion is the process by which a cultural item
spreads from group to group or society to society. For example fast food
restauraunts developed in the United States have taken over more sectors of the
world

Language/religion & social aspect

Isolation from other groups (eg. Language) may stabilise cultures

Regulate words from other cultures. Mandate countrys official language for
business
Religion major source of cultural imperatives & taboos - eg. Buddhism,
Christianity, Hinduism, Islam, Judaism.
Ascribed group memberships defined at birth - gender, family, age, caste, &
ethnic or national origin
Acquired group memberships - ones choice of affiliation - political party,
religion, social, professional

Culture - Work Ethics/Needs

Motivated employees are normally more productive (lower costs)

Desire for wealth vs. desire for leisure (Protestant Ethic)
Expectations of success & reward?
Assertiveness (Hofstedes masculinity males dominate societys power
structure)
Needs satisfaction (Maslows Hierarchy)

Processing Information, Task & Communication

Information/task processing
Work order
Communication

Sequentially vs

Multi-task

Spoken
Explicit

Written
Implicit

Language
Perception of cues

vs
vs

Silent language - colour associations, conversational distance, perception of time, body

language & gestures.

Communication challenges when nations share same basic language - e.g. British,
American, & Canadian English - HSBC advertising campaign The Worlds Local
Bank

Geert Hofstedes Value Model

Study of values in workplace influenced by culture
at IBM, analyzed 100,000 individuals from 40 countries
Initially 4 primary dimensions to differentiate cultures (more added later)
Generalized - may not be applicable to all individuals eg. more than 1
cultural group in country (Canadian English, Canada. French)
Assist in better understanding intercultural differences within regions &
between countries
Relevance: Selling function (salespeople & negotiations)
HRM - expected interaction employees & managers

The Five Dimensions of Culture (Hofstede)

1- Power/distance: This refers to the degree of inequality that exists and
is accepted among people with and without power. A high PD score
indicates that society accepts an unequal distribution of power, and
that people understand "their place" in the system. Low PD means that
power is shared and well dispersed. It also means that society
members view themselves as equals.
2- Individualism: This refers to the strength of the ties people have to
others within the community. A high IDV score indicates loose
connections. In countries with a high IDV score there is a lack of
interpersonal connection, and little sharing of responsibility beyond
family and perhaps a few close friends. A society with a low IDV score
would have strong group cohesion, and there would be a large amount
of loyalty and respect for members of the group. The group itself is also
larger and people take more responsibility for each other's well-being.
3- Masculinity: This refers to how much a society sticks with, and values,
traditional male and female roles. High MAS scores are found in
countries where men are expected to be "tough," to be the provider,
and to be assertive. If women work outside the home, they tend to
have separate professions from men. Low MAS scores do not reverse
the gender roles. In a low MAS society, the roles are simply blurred. You
see women and men working together equally across many
professions. Men are allowed to be sensitive, and women can work
hard for professional success.
4- Uncertainty/Avoidance Index (UAI): 4. Uncertainty/Avoidance Index
(UAI) This relates to the degree of anxiety that society members feel
when in uncertain or unknown situations. High UAI-scoring nations try
to avoid ambiguous situations whenever possible. They are governed
by rules and order and they seek a collective "truth." Low UAI scores
indicate that the society enjoys novel events and values differences.
There are very few rules, and people are encouraged to discover their
own truth.

5- Long Term Orientation (LTO): This refers to how much society values
long-standing as opposed to short-term traditions and values. This
is the fifth dimension that Hofstede added in the 1990s, after finding
that Asian countries with a strong link to Confucian philosophy acted
differently from Western cultures. In countries with a high LTO score,
delivering on social obligations and avoiding "loss of face" are
considered very important.

Hofstedes National Cultural Values

Power distance - psychological & social distance between superiors &

subordinates at work.
Individualism = desire for personal freedom, time, challenge.
Collectivism = dependence on organization, safe environment.
Uncertainty avoidance - tolerance of risk.
Masculinity command/control vs consensus.
Future orientation (LTO) future/long-term vs past/short-term.
Indulgence vs Restraint free gratification vs social norms.
OTHER MODELS include:
Trust - belief in reliability & honesty of another person.
Fatalism - life is pre-destined.

Managerial Issues Adjusting to Culture (cases are not mentioned)

Cultural distance (degree of similarity) > Culture shock

Managerial issues:
Principally HRM & Marketing
Accommodation of foreigners = workforce/staff, customers
Managerial orientation Ethnocentric, Geocentric, Polycentric.

Adjustments - cost/benefits of change of value systems:Resistance to change

Participation in decision-making, Reward sharing
Role of opinion leaders
Timing
Examples from elsewhere