Cross-cultural management & organizational culture

Question 1

There is a management principle called MBO. What does it stand for and what does it mean?

Answer 1

Management-By-Objectives: follow preconceived policy guidelines

Question 2

Can we talk about one global market?

Answer 2

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

Question 3

What is culture? Give a definition

Answer 3

“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.”

Question 4

There is a difference between low and high culture. Explain these two principles

Answer 4

High culture = arts, music, literature, painting, etc …

Low culture = values, practices acquired and shared by people in a group

Question 5

There are three aspects to human mental programming pyramid, which ones?

Answer 5

Personality > Culture > human nature

Question 6

What is the ‘personality’ aspect in the human mental programming pyramid?

Answer 6

• specific to individual
• inherent to the individual (e.g., personality traits) and acquired

Question 7

What is the ‘culture’ aspect in the human mental programming pyramid?

Answer 7

• specific to group or category
• acquired (social programming)

Question 8

What is the ‘human nature’ aspect in the human mental programming pyramid?

Answer 8

• universal
• inherent

Question 9

There were two cultural models discussed. Which ones?

Answer 9

The Iceberg and The Onion

Question 10

What is ‘The Iceberg’ cultural model?

Answer 10

The tip (what you see):
observable symbols, ceremonies, stories, slogans, behaviors, dress, physical settings

Under the sea:
underlying values, assumptions, beliefs, attitudes, feelings

Question 11

What is the ‘Onion’ cultural model?

Answer 11

• Symbols (outer layer)
• Icons
• Rituals
• Values (core)

Question 12

Understanding cultural differences thanks to 6 dimensions of national cultural. What are those 6?

Answer 12

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

Question 13

What is the Power Distance Index?

Answer 13

“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

Question 14

What is individualism / collectivism?

Answer 14

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

Question 15

Masculinity/femininity

Answer 15

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

Question 16

What is Uncertainty Avoidance?

Answer 16

=> 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

Question 17

What is the ‘Pragmatic vs. Normative’ (PRA) dimension?

Answer 17

” 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

Question 18

What is the ‘indulgence vs. restraint’ dimension?

Answer 18

! ‘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’

Question 19

What is the purpose of (organizational) culture?

Answer 19

To improve performance!

• internal integration:
  -> collective identity
  -> commitment
  -> directing behavior
• external adaption
  -> goals
  -> outsiders

Question 20

What is corporate culture and why do we have it?

Answer 20

= reinforcement of strategy & structural design

Why?
-> to be effective within its environment

Question 21

There are 4 categories of corporate culture. What are they and what aspects do they look at?

Answer 21

They relate to the fit among cultural values, strategy, structure and environment

4 cultures:
- Adaptability culture
- Mission Culture
- Clan Culture
- Bureaucratic Culture

Question 22

What is the adaptability culture?

Answer 22

• strategic focus = external environment
• needs of the environment = flexibility/change

Culture:
- quick reaction to environmental change
- actively creates change

Question 23

What is the mission culture and where do we put it in the matrix?

Answer 23

Matrix:
- strategic focus = external environment
- needs of the environment = stability

Culture:
- clear vision + goals
- individual employees - specificied level of performance - rewards

Question 24

What is the Clan Culture and where do we place it in the matrix?

Answer 24

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

Question 25

What is the Bureaucratic Culture and where do we put it in the matrix?

Answer 25

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