2. Cultural Context of Global Management Flashcards
Need to read about how the dimensions of culture developed!
Hofstede definition of culture
The collective programming of the mind that distinguishes the members of one human group from another
Kluckholn definition of culture
The collection of beliefs, values, behaviors, customs, and attitudes that distinguish the people of one society from another
GLOBE definition of culture
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
Schein (1985) levels of culture?
Iceberg:
Artefacts
Espoused (adopted) values
Basic Underlying Assumptions
Three levels of mental programming (Hofstede, 1989)
Personality
Culture
Human Nature
Personality is
- Specific to individuals
- Inherited and learned
Culture is
- Specific to group
- Inherited and learned
Human Nature is
- Universal
- Biological
What is power distance?
Beliefs about the appropriate distribution of power in society
What is low power distance?
Effective leaders do not need to have substantial amounts of power compared to subordinates
What is high power distance?
People in positions of authority should have considerable power compared to subordinates
What is uncertainty avoidance?
Degree of uncertainty that can be tolerated and its impact on rule making
What is low uncertainty avoidance?
Tolerance for ambiguity
Little need for rules to constrain uncertainty
What is high uncertainty avoidance?
Intolerance for ambiguity
Need for many rules to constrain uncertainty
What is Individualism/Collectivism?
Relative importance of individual vs group interests
What is masculinity/femininity?
Assertiveness vs positivity; material possessions vs quality of life
What is long-term vs short-term orientation?
Outlook on work, life and relationships
What is indulgence vs restraint?
Relative emphasis on individual happiness, leisure and personal control
What are Hofstede’s (1993) 6 cultural dimensions?
Power Distance Uncertainty Avoidance Individualism/Collectivism Masculinity/Femininity Long term vs Short term orientation Indulgence vs Restraint
What is collectivism?
Group interests generally take precedence over individual interests
What is individualism?
Individual interests generally take precedence over group interests
What is masculinity?
Values material possessions, money, and the pursuit of personal goals
What is femininity?
Values strong social relevance, quality of life, and the welfare of others
What is short-term orientation?
Past and present orientation, values traditions and social obligations
What is long-term orientation?
Future orientation; values dedication, hard work and thrift
What is indulgence?
Societal emphasis on enjoyment and need gratification
What is Restraint?
Strict societal control to suppress or regulate gratification
Culture impacts all aspects of management, give some examples from Kirkma et al (2006)
Change management Conflict management Decision making Human resource management Leadership Communication and negotiation Motivation Entry Modes FDI Innovation
Features of low power distance?
- Consider each other equal
- Hierarchy for convenience
- Privilege/status frowned upon
- Subordinates expect to be consulted
- More interdependence
- Decentralisation popular
Countries with low power distance?
UK - 35 Austria Australia NZ Germany - 35 Sweden Norway Ireland
Features of high power distance?
- Visible signs of status
- Older superiors more respected
- Inequalities expected and desired
- High dependence
- Hierarchy
- Centralisation
Countries with high power distance?
Mexico - 81 India - 77 France Hong Kong Arab countries Venezuela
Features of low uncertainty avoidance?
- Uncertainty normal feature of life
- Precision/punctuality have to be learned
- Shouldn’t be more rules ran needed
- Tolerance of deviance and innovation
Countries with low uncertainty avoidance?
UK - 35 Sweden Ireland Hong Kong Denmark Malaysia Singapore Jamaica
Features of high uncertainty avoidance?
- Uncertainty a continuous threat
- Emotional need for rules
- Precision and punctuality come naturally
- Resistance to innovation
- Suppress deviant ideas
Countries with high uncertainty avoidance?
Japan - 92 France- 86 Spain- 86 Greece Portugal South American countries
Features of collectivism?
- 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
Collectivist countries?
South American South Korea HK Thailand Taiwan
Features of individualism?
- 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
Individualist countries?
USA - 91 Australia - 90 UK - 89 Canada NZ Italy Belgium Denmark
How do collectivists act at work?
- Patience, slower decisions
- Build relationships
- Respect authority
- Adhere to rules
How do individualists act at work?
- Admire initiative
- Quick decisions
- Respect individual responsibility
Features of masculinity?
- Assertive, ambitious, tough
- Material success and progress
- Money and possessions important
- Stress on competition and performance
- Managers expected to be decisive/assertive
Masculine countries?
Japan - 95 UK - 66 Germanu Austria Mexico Italy Ireland
Features of femininity?
- People and warm relationships important
- Caring for others and preservation
- Modest
- Equality, solidarity, quality of work
- Managers strive for consensus
Feminine countries?
Nordic Portugal Thailand Holland Chile South Korea
Sweden power distance?
Low power distance - 31
Impact of Sweden’s low power distance on IKEA organisational culture?
- Informal, non-hierarchical
- Close to employees and customers
- Free flow of info
- Few barriers
- Managers hands o and participate
Advantage of Sweden’s low power distance on IKEA organisational culture?
- Respond to market quickly
- Leanness of operation
- Motivated staff
Sweden uncertainty avoidance?
Low uncertainty avoidance - 29
Impact of Sweden’s low uncertainty avoidance on IKEA organisational culture?
- Creativity highly valued
- Flexible organisation
- Tolerate mistakes
- View problems as opportunities
Advantages of Sweden’s low uncertainty avoidance on IKEA organisational culture?
- Innovate on a macro level
- Test new concept quickly
- Learn from mistakes
- Cope with chaos
Sweden collectivism or individualism?
Individualistic - 71
Impact of Sweden’s Individualism on IKEA organisational culture?
- Value individual contribution
- Own ideas, responsibility
- Team-based
- Self-assemble concept
Advantage of Sweden’s Individualism on IKEA organisational culture?
- Take initiative
- Responsibility
- Feel trusted
- Enable people
Sweden feminine/masculine?
Feminine - 5
Impact of Sweden’s Femininity on IKEA organisational culture?
- Genuine concern for people
- Create better life
- Tolerance for differences
- Team extended family
- Cooperative
Advantage of Sweden’s Femininity on IKEA organisational culture?
- Win/win approach with stakeholders
- Attractive store and workplace
- Adaptable to different cultures
Sweden Indulgence vs restraint
Indulgent 78
Sweden Short term vs long term
Long term only just - 53
What did Salzer (1994) say about IKEA?
Small power distance reflected in their informal clothing style
IKEA into Spain
80% Spanish managers, understand culture they’re in, train them in IKEA culture
Criticisms of Hofstede?
- 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
Hofstede is a starting point for
Understanding how cultures differ, and the implications for managers
Does culture change?
Evolves over time
Changes in value systems can be slow and painful for a society
Social turmoil is an
Inevitable outcome of cultural change
What brings about cultural change?
- As countries become economically stronger
- Globalisation
Economic progress encourages a shift from
Collectivism to individualism
What are Hall’s 3 cultural dimensions?
Context
Space
Time
What is context?
Extent to which the context of a message is as important as the message itself
What is space?
Extent to which people are comfortable sharing physical space with others
What is time?
Extent to which people approach one task at a time or multiple tasks simultaneously
What is low context?
Direct and frank communication; message itself conveys its own meaning
What is high context?
Much of the meaning in communication is conveyed indirectly through the context surrounding a message
What is centre of power?
Territorial; need for clearly delineated personal space
What is centre of community?
Communal; comfortable sharing personal space with others
What is monochromic?
Sequential attention to individual goals; separation of work and personal life; precise concept of time
What is polychromic?
Simultaneous attention to multiple goals, integration of work and personal life; relative concept of time
What are Trompenaar’s (1993) Dimensions?
Universalism-Particularism Individualism-Collectivism Neutral-Affective Specific-Diffuse Achievement-Ascription Time Environment
What is universalism?
Belief that what is true and good can be discovered and applied universally
What is particularism?
Belief that unique circumstance determines what is right or good
What is Neutral?
Emotion should be held in check, self control is important
What is Affective?
Natural to express emotions
What is Specific-Diffuse?
Extent to which individuals are willing to allow access to inner selves to others
What is specific culture?
Separate private and public lives
What is diffuse culture?
Private and public overlap
What is Achievement culture?
Status based on what a person does
What is Ascription culture?
Status based on who a person is
What is Trompenaar time dimension?
Past vs future, time is linear or holisitic
What is Trompenaar environment dimension?
Extent to which individuals are themselves the primary influence on their lives vs environment more of an influence to be in harmony with
Wu 2006
Culture is not static, it evolves over time
Dimitrov 2014
Cultural differences have influenced organisational practices and theories in the context of increasing globalisation and economic turbulence
Nakata 2009
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’
Hofstede culture definition year
2001
Hofstede cultural dimensions year
1980
Built upon Hall 1976
Hall dimensions year
1976
Hofstede objective for his dimensions?
Assisting managers with developing cultural profiles
Defence of hofstede criticism
- 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)
Trompenaar (1993) built on hofstede
Situation specific scenarios
Focus-orientated
Choice and manner in which actions are planned and handled
Hofstede explored
Deeper into cultural layers
Iceberg hidden parts
Hofstede criticises Trompenaars why?
Statistical analysis emergence of only two interpretable factors- both similar to individualism (Smith, Dugan and Trompenaars 2002)
Lacks empirical support
GLOBE study
House et al 2004
1990s 127 investigations of 62 regions
Expand hofstede and test hypothesis especially leaderships
Hofstede criticism of GLOBE studs
US Centric
18 dimensions unnecessary
Just reflects his model
Issues with Hofstede and GLOBE
Negative correlation between their UA
Inconsistency poses a threat to hofstede a research and confidence of scholars in cross cultural research (Venabik 2013)
What did Venabik 2013 say?
GLOBE/Hofstede Inconsistency poses a threat to hofstede a research and confidence of scholars in cross cultural research (Venabik 2013)
