Cross cultural management

HOFSTEDES CULTURAL DIMENSION TROMPENAARS DIMENSION

How Cultures View Each Other

Stereotyping: assumes that all people within

one culture or group behave, believe, feel, and act the same. Ethnocentrism: occurs when people from one culture believe that theirs are the only correct norms, values, and beliefs. Self-reference criterion: the assumption that people in another culture will behave like people in your culture

Hofstedes Cultural Dimensions

Work-related value dimensions Most influential effort to group by cultural values Surveyed over 116,000 employees in more than 70

countries
Created maps of pairs of dimensions

Individualism-Collectivism
Self-perception as individual or part of a group Most widely studied Most complex Dimensions different across cultures i.e., Asian vs Latin American collectivism

Individualism-Collectivism (contd)
Individualism
High value on autonomy
Individual achievement Privacy

Collectivism
High value on group

Family, clan, organization

Loyalty

Devotion
Conformity

Masculinity-Femininity Describes Importance of Achievement versus Relationships

Success

Equality of genders

Assertive acquisition of

Caring for disadvantaged

harmony

money/power
achievement

Power Distance

Acceptance of differences in power

High-Power Distance
Accept position
Follow authority Concentrated &

Low-Power Distance
Avoid concentration of

authority
Decentralized

centralized authority
Hierarchical

Fewer layers of

management

Uncertainty Avoidance

Reaction to ambiguous events

Low Uncertainty Avoidance Embrace unpredictable
Less adherence to rules,

High Uncertainty Avoidance Threatened by ambiguity

Need stable &

procedures, or hierarchies Risk taking desirable

predictable workplace Reliance on rules

Cultural Maps
Individualism-Collectivism & Power Distance Uncertainty Avoidance & Masculinity-Femininity Uncertainty Avoidance & Power Distance

Individualism-Collectivism & Power Distance

Large power distance and collectivism Asia and Latin America Small power distance and individualism Northern Europe and Anglo countries

Synthesis of Country Clusters

Adapted from Figure 48: A Synthesis of Country Clusters

Culture Map for Power Distance and Individualism

Uncertainty Avoidance & Masculinity-Femininity

Achievement oriented-weak uncertainty avoidance

& masculine values

Security Motivation-high uncertainty avoidance &

masculinity
Social Motivation-feminine values & high

uncertainty avoidance

Culture Map for Uncertainty Avoidance and Masculinity -Femininity

Uncertainty Avoidance & Power Distance

Family-large power distance & weak uncertainty

avoidance
Pyramid of People-large power distance & strong

uncertainty avoidance
Well-Oiled Machine-small power distance & strong

uncertainty avoidance
Village Market-small power distance & low

uncertainty avoidance

Culture Map for Power Distance and Uncertainty Orientation

Limitation of Hofstedes Dimensions

Missing countries Estimates values Ignores differences within clusters

Trompenaarss Alternative Dimensions

Focus on values and relationships Survey of 15,000 managers Over 10-year period From 28 countries Bipolar cultural dimensions

Trompenaarss Alternative Dimensions

Outer-directedInner-directed UniversalismParticularism NeutralEmotional SpecificDiffuse AchievementAscription IndividualismCommunitarianism

Trompenaars Cultural Dimensions

Universalism vs. particularism

Universalism the belief that ideas and practices can be applied everywhere in the world without modification. People tend to focus on formal rules and expect business partners to do the same. Particularism the belief that circumstances dictate how ideas and practices should be applied and some things cannot be done the same way everywhere. People tend to focus on relationships, working things out to suit those involved.

Trompenaars Cultural Dimensions (2)

Neutral vs. Emotional Cultures Neutral culture a culture in which emotions are held in check. People try not to show their feelings Emotional culture a culture in which emotions are expressed openly and naturally. People smile, may talk loudly, greet each other with enthusiasm, show happiness or unhappiness.

Trompenaars Cultural Dimensions (3)

Achievement vs. Ascription n Achievement culture - culture in which people are accorded status based on how well they perform their work and what they have accomplished

Job, work performance, education, etc.

Ascription culture - culture in which status is attributed based on who or what a person is

For example, status may be accorded on the basis of age, gender, family, tribe, ethnic group, etc.

Trompenaars Cultural Dimensions (4)

Use of time Sequential use of time - people do one thing at a time, keep appointments strictly, follow plans to the letter Synchronous use of time - people do more than one thing at a time, appointments are approximate

Trompenaars' Research on People and the External Environment

Inner-directed: People believe in controlling

environmental outcomes and think that they can control what happens to them Outer-directed: People believe in allowing things to take their natural course and living in harmony with nature. People are less likely to believe that they can control what happens to them.