Cross-Cultural Management

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Chapter 1 Meanings and
Dimensions of Culture

Outline
Chap1-1 Cross-cultural management
Chap1-2 Globalization
Chap1-3 Definitions of culture
Chap1-4 Nature of culture
Chap1-5 Cultural values
Chap1-6 Dimensions of culture
Chap1-7 Attitudinal Dimensions of Culture
Chap1-8 Trompenaars s Cultural Dimensions
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Chap1-1
Cross-cultural management
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What is Cross-Cultural
Management?
CCM is a fairly new field that is based on theories
and research from:
Cross Cultural Psychology
International Business
Organizational Behaviour
Human Resources
Anthropology
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Goals for Cross-Cultural
Management
Cross Cultural Management seeks to
understand how national cultures affect
management practices
identify the similarities and differences across
cultures in various management practices and
organizational contexts
increase effectiveness in global management
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Globalization
Chap1-2
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Globalization
Like it or not, globalization is hereto stay.
Most large companies have some kind of business
relations with customers, companies, employees or
various stake-holders in other countriesand
cultures. (Global corporations)
Many employees and managers deal with people
from other cultures on a constant basis
Most of us have a close experience with only one
or two cultures=>
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Globalization
We do not understand people from other cultures
as readily and intuitively as people from our own
culture =>
Cross cultural management helps organization
members to gain better understanding of other
cultures, of their culture and of the consequences
of people from different cultures working together
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Definitions of culture
Chap1-3
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Culture

Definition: acquired knowledge that people use
to interpret experience and generate social
behavior.
Culture forms values, creates attitude,
influences behavior.

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Nature of culture
Chap1-4
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Culture

Characteristics of culture include:
Learned
Shared
Transgenerational
Symbolic
Patterned
Adaptive
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Cultural diversity
(P4: Culture and types of handshake)
Cultural values
(P5: Priorities of cultural values: US, Japan)
(P5: examples where culture can affect
management approaches)
Depict cultural diversity through concentric circles.
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Cultural values

Chap1-5
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Priorities of Cultural Values
United States
1. Freedom
2. Independence
3. Self-reliance
4. Equality
5. Individualism
6. Competition
7. Efficiency
8. Time
9. Directness
10. Openness
Arab Countries
1. Family security
2. Family harmony
3. Parental guidance
4. Age
5. Authority
6. Compromise
7. Devotion
8. Patience
9. Indirectness
10. Hospitality
Japan
1. Belonging
2. Group harmony
3. Collectiveness
4. Age/seniority
5. Group consensus
6. Cooperation
7. Quality
8. Patience
9. Indirectness
10. Go-between
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Management Approaches Affected
by Cultural Diversity
Cultural
Diversity
Sort-term vs.
long-term horizons
Stability vs.
innovation
Individual vs.
group rewards
Cooperation vs.
competition
Centralized vs.
Decentralized
decision making
Informal vs.
formal procedures
Safety vs. risk High vs. low
organizational
loyalty
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Introduction to the course of cross-cultural
management and our international teaching
team
Goals for Cross-cultural management
Nature of culture

Summary of what we learned
last week
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A model of culture: concentric circles
Comparing culture as a normal distribution
Values in culture
Hofstedes cultural dimensions

We will learn today
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A model of culture: concentric
circles
Explicit artifacts and
products of the society
Implicit, basic
assumptions that guide
peoples behavior
Norms and values
that guide the society

Outer layer: observable,
e.g. language, food,
buildings, art.
Middle layer: helps
people understand how
they should behave.
Inner layer: intangible,
helpful for problem-
solving and well
interactions with other
people.
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Comparing Cultures as
Overlapping Normal Distribution
Chinese Culture
?
U.S. Culture
?
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Stereotyping from the Cultural
Extremes: Brugha and Dus research
Chinese Culture
U.S. Culture
How Americans see the Chinese
in community
avoid confrontation
(keep in harmony)
respect for authorities
and seniors
How Chinese see Americans
individualism
face confrontation
(arguments and debates)
respect for achievements

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Values in Culture
Values: basic convictions that people have
regarding what is right and wrong, good and
bad, important and unimportant.

Value differences and similarities across
cultures: P 10: common personal values
U.S. Values and possible alternatives
Values in transition: work values change over
time.
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Dominant Western Values
in Workforce
Career
Stage
Entered the
Workforce
Approximate
Current Age
Dominant
Work Values
1. Protestant
Work Ethic

2. Existential


3. Pragmatic


4. Generation X
Mid-1940s to
Late 1950s

1960s to
Mid-1970s

Mid-1970s to
Mid-1980s

Mid-1980s
through 1990s
50 to 65


35 to 50


35 to 35


Under 25
Hard working; loyal to
firm; conservative

Nonconforming; seeks
autonomy; loyal to self

Ambitious, hard worker;
loyal to career

Flexible, values leisure;
loyal to relationships
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Dimensions of culture
Chap1-6
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Hofstedes Cultural Dimensions
Dutch researcher Geert Hofstede found there
are four dimensions of culture.
Hofstedes initial data: questionnaire surveys
with over 116000 respondents from over 70
different countries who worked in the local
subsidiaries of IBM.
The fifth dimension was added later.
Criticized because of its focus on just one
company.
Popular in the research field of cross-cultural
management.
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Hofstedes
Five Cultural
Dimensions
Power Distance
Uncertainty Avoidance
Individualism
Masculinity
Long-Term Orientation
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Power Distance: the extent to which less powerful
members of organizations accept that power is
distributed unequally.
Low: people treated as equals despite social
status
High: people accept authority relations
Uncertainty avoidance: the extent to which people feel
threatened by ambiguous situations and have
created beliefs and institutions that try to avoid
these.
Low: prefer few formal rules
High: want clear behavioral guides
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Individualism/collectivism: the tendency of people to
look after themselves and their immediate family only
(belong to groups or collectives and to look after
each other in exchange for loyalty).
Low: group behavior important
High: individual behavior important


A bipolar continuum

Individualism Collectivism Individualism Collectivism Individualism
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Masculinity/femininity: a situation in which the
dominant values in society are success, money, and
things (caring for others and the quality of life).
Low: cooperation; friendly atmosphere;
employment security; low stress; warm
interpersonal relationships.
High: competition; challenge; recognition;
wealth; advancement; high stress; tight
control.
A continuum
Femininity Masculinity
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Longterm orientation: value placed on persistence,
status, thrift
Low: respect for tradition, personal
stability, focused on the past
High: perseverance, thrift, focused on
the future
This dimension was added to depict the
influence of Confucianism in Asia.
This dimension is similar to Adjusting
proposed by Brugha and Du.

Examples of Cultural Dimensions
Country
Power
Distance
Individualism* Masculinity**
Uncertainty
Avoidance
Long-term
Orientation***
China High Low Moderate Moderate High
France High High Moderate High Low
Germany Low High High Moderate Moderate
Hong Kong High Low High Low High
Indonesia High Low Moderate Low Low
Japan Moderate Moderate High Moderate Moderate
Netherlands Low High Low Moderate Moderate
Russia High Moderate Low High Low
United States Low High High Low Low
West Africa High Low Moderate Moderate Low
* A low score is synonymous with collectivism
** A low score is synonymous with masculinity
*** A low score is synonymous with a short-term orientation
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Additional Frameworks
Two additional perspectives, of social/cross-cultural
psychologists merit attention:
Markus & Kitayama: Independent &
Interdependent Construals
Triandis: Individualism-Collectivism
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Vertical & Horizontal Individualism
& Collectivism
Harry Triandis: Combination of Individualism vs.
collectivism and power & achievement vs.
benevolence & universalism
VI: achievement + individualism (USA)
HI: universalism + individualism (Sweden)
VC: power + collectivism (India)
HC: benevolence + collectivism (Israel; rare)
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Schwartzs Values
Universalism
Benevolence
Conformity & tradition
Security
Power
Achievement
Hedonism
Stimulation
Self Direction
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Universalism
Self-
Direction
Stimulation
Hedonism
Achievement
Power
Benevolence
Security
Conformity
Tradition
Self-
Enhancement
Openness to
Change
Conservation
Self-
Transcendence
Obedience
Humility
Devoutness
Helpfulness
Social J ustice,
Equality
Creativity,
Freedom
Exciting Life
Pleasure
Success,
Ambition
Authority,
Wealth
Social Order
Organized by motivational
similarities and dissimilarities
Schwartzs Value Map
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Empirical test of the Theory
75,000 + respondents, varied samples in 68 countries
Instrument lists 57 abstract value items
How important is each item as a guiding principle in
your life?
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Tasks in the next session:
Students talks and presentations
Discussion in groups: how to learn
Cross-cultural management?

Assignment after class:
Read a paper on Hofstedes cultural
dimensions.
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Preview

Integrating Hofstedes cultural
dimensions
Attitudinal dimensions of culture
Trompenaarss cultural dimensions
Integrating culture and management

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Chap1-7 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
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A Synthesis of Country Cultures
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GLOBE Project
Multi-country study and evaluation of cultural
attributes and leadership behavior
Are transformational characteristics of
leadership universally endorsed?
170 country co-investigators
65 different cultures
17,500 middle managers
800 organisations
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GLOBE Project
What traits are universally viewed as impediments to leadership
effectiveness?
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
Variable Highest Medium Lowest
Ranking Ranking Ranking
GLOBE Cultural Variable Results
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
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Chap1-8 Trompenaars Cultural
Dimensions
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
Universalism vs. Particularism
Universalism - belief that ideas and practices can be applied
everywhere in the world without modification
Focus on formal rules and rely on business contacts
Particularism - belief that circumstances dictate how ideas and
practices should be applied and something cannot be done the
same everywhere
Focus on relationships, working things out to suit the
parties
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Trompenaars Cultural Dimensions
(cont.)
Individualism vs. Communitarianism
Individualism - people regard themselves as individuals
Rely on individuals to make decisions
Communitarianism - people regard themselves as part of a group
Seek consultation and mutual consent before making decisions
Neutral vs. Emotional
Neutral - culture in which emotions are held in check
People try not to show their feelings
Emotional - culture in which emotions are expressed openly and
naturally
People smile, talk loudly, greet each other with enthusiasm
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Specific vs. Diffuse
Specific - culture in which individuals have a large public space they
readily share with others and a small private space they guard
closely and share with only close friends and associates
People often are open and extroverted
Work and private life are separate
Diffuse - culture in which both public and private space are similar
in size and individuals guard their public space carefully, because
entry into public space affords entry into private space as well
People often appear indirect and introverted, and work and
private life often are closely linked
Trompenaars Cultural
Dimensions (cont.)
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Trompenaars Cultural
Dimensions (cont.)
Achievement vs. Ascription
Achievement - culture in which people are accorded status based
on how well they perform their functions
Ascription - 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, or social connections
Time
Sequential approach to time - people do one thing at a time, keep
appointments strictly, follow plans to the letter
Synchronous approach - people do more than one thing at a time,
appointments are approximate
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Trompenaars Cultural Dimensions
(cont.)
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
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Trompenaars Cultural Groups
Anglo cluster
Relationship United States United Kingdom
Individualism x x

Communitarianism

Specific relationship x x

Diffuse relationship

Universalism x x

Particularism

Neutral relationship x

Emotional relationship x

Achievement x x

Ascription
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Trompenaars Cultural Groups
Asian cluster
Relationship Japan China Indonesia Hong Kong Singapore
Individualism

Communitarianism x x x x x

Specific relationship

Diffuse relationship x x x x x

Universalism

Particularism x x x x x

Neutral relationship x x x x

Emotional relationship x

Achievement

Ascription x x x x x
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Trompenaars Cultural Groups
Latin American cluster
Relationship Argentina Mexico Venezuela Brazil
Individualism x x x

Communitarianism

Specific relationship

Diffuse relationship x x x x

Universalism

Particularism x x x x

Neutral relationship x x x

Emotional relationship x

Achievement x x

Ascription x x
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Trompenaars Cultural Groups
Latin-European cluster
Relationship France Belgium Spain Italy
Individualism x

Communitarianism x x x

Specific relationship x x

Diffuse relationship x x

Universalism x x x

Particularism x

Neutral relationship x

Emotional relationship x x x

Achievement x

Ascription x x x
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Trompenaars Cultural Groups
Germanic cluster
Relationship Austria Germany Switzerland Czechoslovakia
Individualism x

Communitarianism x x x

Specific relationship x x x

Diffuse relationship x

Universalism x x x x

Particularism

Neutral relationship x x

Emotional relationship x x

Achievement x x x

Ascription x
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Culture Maps - Frameworks
Edward
T. Hall
Geert
Hofstede
Kluckhohn &
Strodbeck
time
space
things
friendships
agreements
&
interpersonal
behavior
power
risk
individualism
masculinity
long term
orientation
&
management
theories -
practice
relation to nature
orientation to
time
belief about
human nature
mode of human
activity
relationships
space
&
Intl. business
practice
Value
Patterns
Variations
in Value
Orientations
Culture
Elements
Trompenaars
universalism
particularism
collectivism
individualism
affectiveneutral
relationships
specificity
diffuseness
achievement
ascription
time orientation
Internalexternal
control
&
Intl. business practice
Value
Patterns