Culture in International Management

Culture
 Helps us organize our world  Shared values, understandings, assumptions and goals (values, beliefs, norms)  Learned from earlier generation  Imposed by present members of society

Principles for Studying Other Cultures

    Individuals may not conform Differences may not be culturally based Understand your own culture first Continuums
 Few fall at the extremes, most are somewhere in the middle

Stereotyping/ Sociotyping
    Mental files Natural Useful Can be misused

Ethnocentrism
 Belief that one's cultural values, beliefs and norms are better than those of another culture are

Principles Summary
 4 Principles for studying cultures  Individuals may not conform  Differences may not be culturally based  Understand self first  Continuums  Stereotyping  Natural, potentially useful or harmful mental files  Ethnocentrism  Belief that ones own culture is best

Team Work
 Find several examples that demonstrate how culture affects management functions such as planning, organizing, directing and controlling  Find examples of how culture affects management style  Find several examples of how business practices differ across cultures  Prepare to present findings to class

Country Profile

Cultural Characteristics
     Understand the ways culture can differ Understand ourselves Understand others Value different points of view Develop shared values, beliefs and norms

What do you think?

 Are subordinates the same kind of people as management?  Should the boss know all the answers?  Is it ok for the boss to have privileges such as drinking coffee on the job that the front line workers do not have?  Is it ok to call the boss by his/her first name?  Which type of boss do you think is best - one that is autocratic, persuasive or paternalistic, or democratic?

Power Distance
   High Power Distance Order of inequality Special privileges Subordinates are different from superiors Boss should know all     Low Power Distance Minimize inequalities Equal rights Subordinates and superiors are equals Ok for boss to ask subordinates for answers

Power Distance Comparisons High

90 80 70 60 50 40 30 20 10 South Africa Taiwan 0 Mexico Great Britan Netherlands Ireland Japan USA 61 54 49 40 38 35 28 81

Average = 51

Low

High Power Distance Employee Expectations

    Wrong to disagree with the boss Paternalistic (father-like) management style Boss should know all the answers Boss should have more privileges

What do you think?

   Do you think it is ok for employees to disagree and even argue with their boss? Do you think time has a monetary value or it is something that just exists? Do you prefer a boss who lays out the rules clearly and specifically to you in written format or do you prefer one that only sets out basic rules and assumes you will perform appropriately? Why? If you needed a marketing plan, would you hire a hospitality marketing specialist, a general marketing specialist or would you do it yourself? How do you react when your boss tells you s/he is going to make changes in the way things are done?

 

Uncertainty Avoidance
High  Avoid risks  Dissonance is dangerous  Time is money  Need written rules and regulations  Believe in experts
Low  Willing to take risks  Accept disagreements  Time is free  Prefer common sense to rules  Logic and common sense better than expert opinions

Uncertainty Avoidance
High avoidance of risk
120 100 80 60 40 20 0 Japan Greece Mexico 112 92 82 69 53 49 46 35 29

Average=64 Willing to take risks

South Africa

Taiwan

Great Britain

Netherlands

Hong Kong

USA

Individualism
 Responsible for self and immediate family  Identity based on the individual  Autonomy, variety, pleasure and individual financial security  Individual decisions

Collectivism
 Extended families, loyalty, protection  Identity in the social system  Expertise, order, duty, security provided by the in-group  Group decisions

Individualistic
Average =51
100 90 80 70 60 50 40 30 20 10 0 Great B ritain N etherlands Hong Kong M exico 46 30 91 89 80

Collective

25 17

T aiw an

Jap an

U SA

Collective

Individualistic

Affect of High Uncertainty Avoidance on Employees

      Career stability Rules, regulations, direction Consistency Avoid conflict/disagreement Resist change Fear of failure
 May appear less ambitious

 Stable employees

What do you think?

1. 2. Do you live to work or work to live? What are your feelings about who should do what at home? How do you view the responsible of each spouse for taking care of the children? Do you feel a sense of responsibility to help when you see a homeless person begging? What is your philosophy on giving to the poor? Would you take your family out of a home and community they love where they are surrounded by friends and family for a new position that offers you a considerably higher salary? How would you rank yourself on the masculine/feminine continuum? How do your feelings contrast with others you know?

3.

4.

5. 6.

Masculine/Feminine
Masculine  Material success  Ambition, assertive  Competitive  Live to work  Women are nurturers  Achievement Feminine  Quality of life  Relationships  Concern for weak  Work to live  Men & Women nurture  Disapprove of high achievers

100

10 5

20

30

40

50

60

70

80

90

0 Japan Mexico Great Britain South Africa USA Hong Kong Taiwan Netherlands Sweden

Masculine

95

69 66 63 62 57 45

Average = 51

Feminine

14

Particularistic
     Focus more on relationships than rules Legal contracts easily modified Changing mutualities honored Reality is relative to participant Relationships evolve     

Universalistic
Focus on rules rather than relationships Legal contracts should be honored Word and legal contracts honored One reality, one truth A deal is a deal

Percent who prefer universalistic system

Ko re a
37 64 68 88 90 93

h So th Ne ut M er

Ja US A UK la nd s

pa

ex

ic o

Team Discussion
 How would the expectations of employees from a particularistic culture differ from those of a universalistic culture?  Which system do you prefer? Why? What is the value of each of these systems?

What do you think?

1. Do you think Americans respected John Kennedy, Jr. because of what he accomplished or because of his family? 2. Do you think many people voted for our current president because of his father? 3. Would you have the same level of respect as a hospitality manager as a relative of Bill Marriott or Roy Crock would? 4. What difference do you think the school you attended make in your career after you have been working in the field at least five years?

Achievement
    Respected for what you do Respect of superior based on performance Limited use of titles Senior managers vary in age and gender, qualified by achievements  

Ascription
Respected for who you are Respect for superior seen as commitment to the organization Extensive use of titles Senior managers are male, middle-aged, qualified by background (who they are)

 

Respect depends on family background Ascription who disagree Achievement Percent

UK USA Mexico China Japan Hong Kong
58 81 81 79 89 87

What do you think?

1.

2. 3.

4.

Do you believe you can control your life or do you believe you have to accept the ways things are? Is your life pre-destined? Do you have a fate over which you have little or no control? How do other people you know differ in their believes about controlling fate or destiny?

Locus of Control
Internal  Belief in ones ability to control fate  Respect for conflict and resistance  Focus on self rather than others  Discomfort with lack of control External  Belief that something outside oneself is in control  Harmony and responsiveness  Focus on other  Comfortable with changes

Control Fate: Percent who believe

they are captains of their fate
90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Venezuela Japan S Korea Hong Kong Netherlands UK USA

Neutral/Affective
Neutral  Hide feelings  Tension accidentally revealed  Admire poise  Avoid hugs, broad smiles and broad gestures  Monotone Affective  Openly reveal emotions  Expressive  Animated expressions  Touching, and broad gestures admired  Expression and emotion

Diffuse (High context) /Specific (low context)

Diffuse (high context)  Indirect  Evasive, tactful, ambiguous  Context more important than words  Highly situational morality  Prefer neutral expressiveness  Report conclusions at end Specific (low context)  Direct, to the point  Precise, blu8nt  Words more important than context  Consistent moral stands regardless of circumstances  Prefer animated expression  Report conclusions and important points first

Cultural Dimensions Summary

 Power Distance how should the boss act  Uncertainty Avoidance rules or common sense  Masculine/Feminine material rewards or quality of life  Individualism/Collectivism I versus we  Universalistic/Particularistic treat all equally versus do favors for friends

Cultural Dimensions Summary

 Achievement/Ascription respect for what you do or respect for who you are  Locus of Control I am in control of my destiny versus outside forces are in control  Neutral/Affective hide versus display emotions  Diffuse/Specific (high/low context) indirect versus direct communication