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International Management > 2. Cultural Context of Global Management > Flashcards

2. Cultural Context of Global Management Flashcards

Need to read about how the dimensions of culture developed!

1
Q

Hofstede definition of culture

A

The collective programming of the mind that distinguishes the members of one human group from another

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2
Q

Kluckholn definition of culture

A

The collection of beliefs, values, behaviors, customs, and attitudes that distinguish the people of one society from another

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3
Q

GLOBE definition of culture

A

Shared motives, values, beliefs, identities, and interpretations or meanings of significant events that result from common experiences of members of collectives that are transmitted across generations

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4
Q

Schein (1985) levels of culture?

A

Iceberg:
Artefacts

Espoused (adopted) values

Basic Underlying Assumptions

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5
Q

Three levels of mental programming (Hofstede, 1989)

A

Personality

Culture

Human Nature

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6
Q

Personality is

A
  • Specific to individuals

- Inherited and learned

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7
Q

Culture is

A
  • Specific to group

- Inherited and learned

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8
Q

Human Nature is

A
  • Universal

- Biological

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9
Q

What is power distance?

A

Beliefs about the appropriate distribution of power in society

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10
Q

What is low power distance?

A

Effective leaders do not need to have substantial amounts of power compared to subordinates

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11
Q

What is high power distance?

A

People in positions of authority should have considerable power compared to subordinates

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12
Q

What is uncertainty avoidance?

A

Degree of uncertainty that can be tolerated and its impact on rule making

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13
Q

What is low uncertainty avoidance?

A

Tolerance for ambiguity

Little need for rules to constrain uncertainty

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14
Q

What is high uncertainty avoidance?

A

Intolerance for ambiguity

Need for many rules to constrain uncertainty

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15
Q

What is Individualism/Collectivism?

A

Relative importance of individual vs group interests

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16
Q

What is masculinity/femininity?

A

Assertiveness vs positivity; material possessions vs quality of life

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17
Q

What is long-term vs short-term orientation?

A

Outlook on work, life and relationships

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18
Q

What is indulgence vs restraint?

A

Relative emphasis on individual happiness, leisure and personal control

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19
Q

What are Hofstede’s (1993) 6 cultural dimensions?

A 
Power Distance
Uncertainty Avoidance
Individualism/Collectivism
Masculinity/Femininity
Long term vs Short term orientation
Indulgence vs Restraint
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20
Q

What is collectivism?

A

Group interests generally take precedence over individual interests

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21
Q

What is individualism?

A

Individual interests generally take precedence over group interests

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22
Q

What is masculinity?

A

Values material possessions, money, and the pursuit of personal goals

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23
Q

What is femininity?

A

Values strong social relevance, quality of life, and the welfare of others

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24
Q

What is short-term orientation?

A

Past and present orientation, values traditions and social obligations

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25
Q

What is long-term orientation?

A

Future orientation; values dedication, hard work and thrift

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26
Q

What is indulgence?

A

Societal emphasis on enjoyment and need gratification

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27
Q

What is Restraint?

A

Strict societal control to suppress or regulate gratification

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28
Q

Culture impacts all aspects of management, give some examples from Kirkma et al (2006)

A 
Change management
Conflict management
Decision making
Human resource management Leadership 
Communication and negotiation
Motivation
Entry Modes
FDI
Innovation
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29
Q

Features of low power distance?

A
  • Consider each other equal
  • Hierarchy for convenience
  • Privilege/status frowned upon
  • Subordinates expect to be consulted
  • More interdependence
  • Decentralisation popular
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30
Q

Countries with low power distance?

A 
UK - 35
Austria
Australia
NZ
Germany - 35
Sweden
Norway
Ireland
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31
Q

Features of high power distance?

A
  • Visible signs of status
  • Older superiors more respected
  • Inequalities expected and desired
  • High dependence
  • Hierarchy
  • Centralisation
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32
Q

Countries with high power distance?

A 
Mexico - 81
India - 77
France
Hong Kong
Arab countries
Venezuela
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33
Q

Features of low uncertainty avoidance?

A
  • Uncertainty normal feature of life
  • Precision/punctuality have to be learned
  • Shouldn’t be more rules ran needed
  • Tolerance of deviance and innovation
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34
Q

Countries with low uncertainty avoidance?

A 
UK - 35
Sweden
Ireland
Hong Kong
Denmark 
Malaysia
Singapore
Jamaica
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35
Q

Features of high uncertainty avoidance?

A
  • Uncertainty a continuous threat
  • Emotional need for rules
  • Precision and punctuality come naturally
  • Resistance to innovation
  • Suppress deviant ideas
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36
Q

Countries with high uncertainty avoidance?

A 
Japan - 92
France- 86
Spain- 86
Greece
Portugal
South American countries
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37
Q

Features of collectivism?

A
  • Sense of in/out group
  • Obligation to ‘in’ group
  • Use of ‘We’
  • Assume joint responsibility
  • Don’t distinguish own priorities and opinions
  • Conflict should be avoided, disturbs harmony and motivation
  • Often high power distance
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38
Q

Collectivist countries?

A 
South American
South Korea
HK
Thailand 
Taiwan
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39
Q

Features of individualism?

A
  • Form groups based on common interests/tasks
  • Low personal obligation to members
  • ‘I’ and ‘Me’
  • Ideally achieve along, assume personal responsibility
  • Conflict is inevitable and can be channeled positively
  • Basic right to privacy
  • Often low power distance
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40
Q

Individualist countries?

A 
USA - 91
Australia - 90
UK - 89
Canada
NZ
Italy
Belgium
Denmark
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41
Q

How do collectivists act at work?

A
  • Patience, slower decisions
  • Build relationships
  • Respect authority
  • Adhere to rules
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42
Q

How do individualists act at work?

A
  • Admire initiative
  • Quick decisions
  • Respect individual responsibility
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43
Q

Features of masculinity?

A
  • Assertive, ambitious, tough
  • Material success and progress
  • Money and possessions important
  • Stress on competition and performance
  • Managers expected to be decisive/assertive
44
Q

Masculine countries?

A 
Japan - 95
UK - 66
Germanu
Austria
Mexico
Italy
Ireland
45
Q

Features of femininity?

A
  • People and warm relationships important
  • Caring for others and preservation
  • Modest
  • Equality, solidarity, quality of work
  • Managers strive for consensus
46
Q

Feminine countries?

A 
Nordic 
Portugal 
Thailand 
Holland 
Chile
South Korea
47
Q

Sweden power distance?

A

Low power distance - 31

48
Q

Impact of Sweden’s low power distance on IKEA organisational culture?

A
  • Informal, non-hierarchical
  • Close to employees and customers
  • Free flow of info
  • Few barriers
  • Managers hands o and participate
49
Q

Advantage of Sweden’s low power distance on IKEA organisational culture?

A
  • Respond to market quickly
  • Leanness of operation
  • Motivated staff
50
Q

Sweden uncertainty avoidance?

A

Low uncertainty avoidance - 29

51
Q

Impact of Sweden’s low uncertainty avoidance on IKEA organisational culture?

A
  • Creativity highly valued
  • Flexible organisation
  • Tolerate mistakes
  • View problems as opportunities
52
Q

Advantages of Sweden’s low uncertainty avoidance on IKEA organisational culture?

A
  • Innovate on a macro level
  • Test new concept quickly
  • Learn from mistakes
  • Cope with chaos
53
Q

Sweden collectivism or individualism?

A

Individualistic - 71

54
Q

Impact of Sweden’s Individualism on IKEA organisational culture?

A
  • Value individual contribution
  • Own ideas, responsibility
  • Team-based
  • Self-assemble concept
55
Q

Advantage of Sweden’s Individualism on IKEA organisational culture?

A
  • Take initiative
  • Responsibility
  • Feel trusted
  • Enable people
56
Q

Sweden feminine/masculine?

A

Feminine - 5

57
Q

Impact of Sweden’s Femininity on IKEA organisational culture?

A
  • Genuine concern for people
  • Create better life
  • Tolerance for differences
  • Team extended family
  • Cooperative
58
Q

Advantage of Sweden’s Femininity on IKEA organisational culture?

A
  • Win/win approach with stakeholders
  • Attractive store and workplace
  • Adaptable to different cultures
59
Q

Sweden Indulgence vs restraint

A

Indulgent 78

60
Q

Sweden Short term vs long term

A

Long term only just - 53

61
Q

What did Salzer (1994) say about IKEA?

A

Small power distance reflected in their informal clothing style

62
Q

IKEA into Spain

A

80% Spanish managers, understand culture they’re in, train them in IKEA culture

63
Q

Criticisms of Hofstede?

A
  • Assumption of one-to-one relationship between culture and nation-state
  • Study may have been culturally bound
  • IBM sole source of info
  • Culture isn’t static, it evolves
64
Q

Hofstede is a starting point for

A

Understanding how cultures differ, and the implications for managers

65
Q

Does culture change?

A

Evolves over time

Changes in value systems can be slow and painful for a society

66
Q

Social turmoil is an

A

Inevitable outcome of cultural change

67
Q

What brings about cultural change?

A
  • As countries become economically stronger

- Globalisation

68
Q

Economic progress encourages a shift from

A

Collectivism to individualism

69
Q

What are Hall’s 3 cultural dimensions?

A

Context
Space
Time

70
Q

What is context?

A

Extent to which the context of a message is as important as the message itself

71
Q

What is space?

A

Extent to which people are comfortable sharing physical space with others

72
Q

What is time?

A

Extent to which people approach one task at a time or multiple tasks simultaneously

73
Q

What is low context?

A

Direct and frank communication; message itself conveys its own meaning

74
Q

What is high context?

A

Much of the meaning in communication is conveyed indirectly through the context surrounding a message

75
Q

What is centre of power?

A

Territorial; need for clearly delineated personal space

76
Q

What is centre of community?

A

Communal; comfortable sharing personal space with others

77
Q

What is monochromic?

A

Sequential attention to individual goals; separation of work and personal life; precise concept of time

78
Q

What is polychromic?

A

Simultaneous attention to multiple goals, integration of work and personal life; relative concept of time

79
Q

What are Trompenaar’s (1993) Dimensions?

A 
Universalism-Particularism
Individualism-Collectivism
Neutral-Affective
Specific-Diffuse
Achievement-Ascription
Time
Environment
80
Q

What is universalism?

A

Belief that what is true and good can be discovered and applied universally

81
Q

What is particularism?

A

Belief that unique circumstance determines what is right or good

82
Q

What is Neutral?

A

Emotion should be held in check, self control is important

83
Q

What is Affective?

A

Natural to express emotions

84
Q

What is Specific-Diffuse?

A

Extent to which individuals are willing to allow access to inner selves to others

85
Q

What is specific culture?

A

Separate private and public lives

86
Q

What is diffuse culture?

A

Private and public overlap

87
Q

What is Achievement culture?

A

Status based on what a person does

88
Q

What is Ascription culture?

A

Status based on who a person is

89
Q

What is Trompenaar time dimension?

A

Past vs future, time is linear or holisitic

90
Q

What is Trompenaar environment dimension?

A

Extent to which individuals are themselves the primary influence on their lives vs environment more of an influence to be in harmony with

91
Q

Wu 2006

A

Culture is not static, it evolves over time

92
Q

Dimitrov 2014

A

Cultural differences have influenced organisational practices and theories in the context of increasing globalisation and economic turbulence

93
Q

Nakata 2009

A

Contemporary realisation of intensive interaction between differing cultures

‘Traversing national borders, co-mingling’ and
‘Clashing through media, migration, telecommunications, international trade, IT and supranational organisations’

94
Q

Hofstede culture definition year

A

2001

95
Q

Hofstede cultural dimensions year

A

1980

Built upon Hall 1976

96
Q

Hall dimensions year

A

1976

97
Q

Hofstede objective for his dimensions?

A

Assisting managers with developing cultural profiles

98
Q

Defence of hofstede criticism

A
  • IBM large and respected, data reliable as fewer variables so more consistent/accurate
  • country scores aren’t absolute but rather in relation to other countries (2011)
99
Q

Trompenaar (1993) built on hofstede

A

Situation specific scenarios

Focus-orientated
Choice and manner in which actions are planned and handled

100
Q

Hofstede explored

A

Deeper into cultural layers

Iceberg hidden parts

101
Q

Hofstede criticises Trompenaars why?

A

Statistical analysis emergence of only two interpretable factors- both similar to individualism (Smith, Dugan and Trompenaars 2002)

Lacks empirical support

102
Q

GLOBE study

A

House et al 2004

1990s 127 investigations of 62 regions
Expand hofstede and test hypothesis especially leaderships

103
Q

Hofstede criticism of GLOBE studs

A

US Centric
18 dimensions unnecessary
Just reflects his model

104
Q

Issues with Hofstede and GLOBE

A

Negative correlation between their UA

Inconsistency poses a threat to hofstede a research and confidence of scholars in cross cultural research (Venabik 2013)

105
Q

What did Venabik 2013 say?

A

GLOBE/Hofstede Inconsistency poses a threat to hofstede a research and confidence of scholars in cross cultural research (Venabik 2013)

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