Cross-cultural management & organizational culture Flashcards
There is a management principle called MBO. What does it stand for and what does it mean?
Management-By-Objectives: follow preconceived policy guidelines
Can we talk about one global market?
No, same brands are sold but most of the time different products, adapted to the local culture.
–> Try to understand what eating hamburgers, buyinig a specific car,… MEANS in different cultures
What is culture? Give a definition
“Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.”
There is a difference between low and high culture. Explain these two principles
High culture = arts, music, literature, painting, etc …
Low culture = values, practices acquired and shared by people in a group
There are three aspects to human mental programming pyramid, which ones?
Personality > Culture > human nature
What is the ‘personality’ aspect in the human mental programming pyramid?
- specific to individual
- inherent to the individual (e.g., personality traits) and acquired
What is the ‘culture’ aspect in the human mental programming pyramid?
- specific to group or category
- acquired (social programming)
What is the ‘human nature’ aspect in the human mental programming pyramid?
- universal
- inherent
There were two cultural models discussed. Which ones?
The Iceberg and The Onion
What is ‘The Iceberg’ cultural model?
The tip (what you see):
observable symbols, ceremonies, stories, slogans, behaviors, dress, physical settings
Under the sea:
underlying values, assumptions, beliefs, attitudes, feelings
What is the ‘Onion’ cultural model?
- Symbols (outer layer)
- Icons
- Rituals
- Values (core)
Understanding cultural differences thanks to 6 dimensions of national cultural. What are those 6?
1) Power Distance Index
2) Individualism versus Collectivism
3) Masculinity versus Femininity
4) Uncertainty Avoidance Index
5) Long term orientation vs. short term orientation
6) Indulgance versus Restraint
What is the Power Distance Index?
“The degree to which the less powerful members of a society accept and except that power is distributed unequally …”
High PDI = unequal distribution of power is accepted & expected
What is individualism / collectivism?
Individualism can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families
Collectivism -> tightly-knit framework -> individuals expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty
High IDV = individualistic
Masculinity/femininity
masculinity: traditional male gender role (assertive, hard, tough)
=> society at large is more competitive
Femininity
=> society at large is more concensus-oriented
High MAS = society at large is more competitive
What is Uncertainty Avoidance?
=> level of anxiety
“The uncertainty avoindance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity”
Strong UAI -> maintain rigid codes of belief and behior + intolerant of unorthodox bevahoir and ideas
Weak UAI -> relaxed attitude + practice counts more than principles
What is the ‘Pragmatic vs. Normative’ (PRA) dimension?
” The dimension describes how people in the past, as well as today, relate to the fact that so much that happens around us cannot be explained”
Normative orientation: strong desire to explain as much as possible
–> respect for conventions and traditions
–> look at change with suspicion
Pragmatic orientation: don’t have a need to explain everything
Higher PRA = more pragmatic
What is the ‘indulgence vs. restraint’ dimension?
! ‘new’ dimension
Indulgence: enjoy life and have fun
-> ‘free’ gratification of basic and natural human drives
Restraint: strict social norms
-> society surpresses gratification of needs
higher score = more ‘indulgence’
What is the purpose of (organizational) culture?
To improve performance!
- internal integration:
-> collective identity
-> commitment
-> directing behavior - external adaption
-> goals
-> outsiders
What is corporate culture and why do we have it?
= reinforcement of strategy & structural design
Why?
-> to be effective within its environment
There are 4 categories of corporate culture. What are they and what aspects do they look at?
They relate to the fit among cultural values, strategy, structure and environment
4 cultures:
- Adaptability culture
- Mission Culture
- Clan Culture
- Bureaucratic Culture
What is the adaptability culture?
- strategic focus = external environment
- needs of the environment = flexibility/change
Culture:
- quick reaction to environmental change
- actively creates change
What is the mission culture and where do we put it in the matrix?
Matrix:
- strategic focus = external environment
- needs of the environment = stability
Culture:
- clear vision + goals
- individual employees - specificied level of performance - rewards
What is the Clan Culture and where do we place it in the matrix?
Matrix:
- strategic focus = internal
(involvement and participation of organization’s members)
- needs of the environment = flexibility
Culture:
Focus on needs of employees
=> involvement/participation -> responsibility of ownership -> commitment
What is the Bureaucratic Culture and where do we put it in the matrix?
Matrix:
- Strategic focus = internal focus
- needs of the environment = stability
Culture
- high level of consistency, conformity, collaboration
- symbols, heroes, ceremonies => cooperation, tradition, established policies and practices
- personal involvement somewhat lower