Cultural Frameworks Flashcards
Culture
A collection of beliefs, habits, and traditions, shared by a group of people and successively learned by people who enter society.
- has a major influence on the way we see, interpret and act
- group-specific, it makes a group different from other groups
- learned during childhood in school and in organisation
- layered as it has visible and invisible parts
Levels of Culture
Culture as an Onion
Most visible: artefacts, goods and institutions that distinguish one culture from another
Deeper level: comprises our notions of right and wrong, good and bad and desirable and undesirable
Deepest level: sel basic assumption that operates automatically, often unconscious
Symbols: words, gestures, pictures, objects
Heroes: a person with highly prized characteristics
Rituals: socially important collective activities
Values and Principles: fundamental to a culture
6 Levels Where Cultural Differences Can Be Perceived (Hofstede)
- Broad cultural differences between countries
- Regional differences (sub-cultures)
- Cultural differences between genders
- Cultural differences between generations
- Social class
- Organisations
- due to differences in history, ownership patterns, technology, leadership style etc
Comparing National Cultures (Edward Hall)
High Context Cultures:
Latin America, Southern Europe, Japan, China
- information is seen as an extension of the person
- message content is less important than the long-term relationship of those communicating
- agreements based on trust
- language and messages carry implicit meaning
- culture tends to be more polychromic
- more comfortable with physical touching and small distance between people
Low Context Cultures:
USA, UK, Northern Europe
- message content is all important and expertise is more important than relationship
- negation takes place relatively quickly
- agreements based on legally binding contracts
- the message has a more clear unambiguous meaning
- cultures tend to view time as a resource with an importance placed on timekeeping and timetables
Hofstede’s Cultural Dimensions
6 Dimensions:
- Power Distance
- how does society deal with social inequality? - Uncertainty Avoidance
- how does a society deal with uncertainty and ambiguity? - Individualism vs Collectivism
- what is the relationship between the individual and the group? - Masculinity vs Feminity
- what are the social and emotional implications of having been born as a boy or a girl? - Long-term vs Short-term Orientation
- future-oriented or today - Indulgence vs Restraint
- the extent to which people can have fun and enjoy life or can impose strict norms on themselves
- enjoy, pleasure vs the control of needs via strict norms
Power Distance
Small Power Distance
- flat organisation, decentralised decision-making
- narrow salary range between the top and bottom of the organisation
- subordinates expect to be consulted
- the ideal boss is a resourceful democrat
Large Power Distance
- pyramidal organisation, centralised decision-making
- wide salary range
- subordinates expect to be instructed
- the ideal boss is a benevolent autocrat or a “good father”
Uncertainty Avoidance
Low Uncertainty Avoidance
- few formal rules, regulations, and procedures, limited use of planning
- lenient rules: people are more relaxed and flexible in reviewing decisions
- acceptance of differences
- companies are willing to take risks
High Uncertainty Avoidance
- many formal rules, regulations, and procedures, excessive use of planning
- tight rules: people tend to stick to what has been decided
- low acceptance of differences
- companies avoid risks as much as possible
Individualism vs Collectivism
Individualistic Countries
- independence and autonomy
- hiring and promotion are supposed to be based on skills and rules only
- treating friends better than others is nepotism and unethical
- people are self-centred, using ‘I’ a lot, make eye contact freely
Collectivistic Countries
- group membership, harmony, loyalty, and relations are important
- hiring and promotion decisions take employees in-group into account
- treating friends better than others is normal and ethical
- use of ‘we’, avoid drawing attention
Masculinity vs Feminity
Masculine Countries
- managers are to be decisive, firm, assertive, and competitive
- resolution of conflicts by letting the strongest win
- more money is preferred over more leisure time
- rewards are based on equity
Feminine Countries
- Managers are expected to use intuition, deal with feelings and seek consensus
- resolution of conflicts by compromise and negotiation
- leisure time preferred over money
- rewards are based on equality
Long vs Short Term Orientation and Indulgence vs Restraint
Long vs Short-Term Orientation
- long-term orientation is associated with being future-oriented, valuing perseverance and saving, adaptable
Indulgence vs Restraint（甘やかしvs規制）
- indulgence dimension places importance on the gratification of basic drives and emphasises the importance of leisure, free speech
- restraint places importance on the suppression of gratification, the need for individuals to control their desires and related to fairly strict sexual norms
Contribution of Fons Trompenaars
Establishes cultural differences in the way we relate to others, in our attitude to time, and in our attitudes to the environment across seven dimensions:
- Universalism vs Particularism
- Specific vs Diffuse Cultures
- Achievement vs Ascription Cultures
- Individualism vs Communitarianism
- Affective vs Neutral Cultures
- Time as Sequence vs Time as Synchronisation
- Inner Directed vs Outer Directed
Cultures differ in the way they display emotion: neutral cultures tend to keep feelings hidden.
Contribution of the GLOBE Project
GLOBE (Global Leadership and Organisational Behaviour Effectiveness) project studies the impact of culture on leadership, organisational processes and the effectiveness of the processes.
Identified 9 dimensions of culture that operate at both the societal and the organisational levels:
- Power Distance
- Uncertainty Avoidance
- Collectivism
- In Group Collectivism
- how much individuals value being members of a group - Gender Egalitarianism
- the extent of equal treatment between genders - Assertiveness and Competitive Attitude
- Future Orientation
- Performance Orientation
- focus on results and outcomes - Humane Orientation
- focus on altruism
Found that desirable leadership was associated with being motivational, honest and decisive.
Two Major Dimensions of Cultural Variation
The World Values Survey is an international non-profit organisation focusing on changing values and their impact on political, economic and social life.
The survey identifies two major dimensions of cultural variation:
- Traditional vs Secular Rational
- in traditional societies, importance is placed on religion, traditional family values
- in secular rational societies, religion and family values are less important
- in industrial societies, there is a shift to more secular rational beliefs and values - Survival vs Self-Expression
- in survival societies, traditional gender roles, lack of tolerance for diversity and less concern for the environment are apparent
- in a self-expression society, economic and physical security is taken for granted and a high value is placed on individual freedom and freedom of speech, greater tolerance for diversity can be seen
- shift towards self-expression is linked to the shift towards the knowledge economy
Cultural Interaction
Culture impacts organisations in many ways.
Cultural encounters are much more intense when people start working in organisations to achieve a certain goal. It does not always run smoothly, there might be confusion, misunderstandings or other communication difficulties because we do not know how to behave in a different context.
- it can also lead to tension and conflict
Causes of cultural misunderstandings:
1. unaware of the cultural impact of way of thinking
2. ethnocentrism
- their own country is the best
- we use our own culture as a benchmark to assess behaviour in a different culture
3. cultural stereotypes
4. different rules of the game (institutions)
- institutions help to structure and facilitate human interaction
5. us vs them thinking
- groups can only form if there is a certain degree of connection between the members
- thus we treat people from different cultures as ‘them’ and that they are different from us
Convergence vs Divergence
Nowadays, we live in a highly globalised world where Friedman states that the world has become a large market where the borders and differences simply disappeared or will disappear.
Two positions according to the position of convergence:
- Divergence
- differences between countries persist due to historical developments, cultural institutions, and geography - Convergence (globalisation and modernisation)
- countries are becoming more similar economically, politically, and culturally.
Culture as a Self-Reinforcing System
Cultural values change less easily. They express the social choices we make.
Cultural values influence:
1. family patterns
2. educational system
3. legislation
4. political system
- in turn, these organisations and institutions reinforce the underlying cultural values within society
Cultural Change and Stability
The level of individualism has increased over time.
- closely related to the increasing prosperity in a country, this makes people less dependent on each other and collectivism decreases
Although many countries are becoming more individualistic, cultural differences between the countries are maintained.
- therefore no convergence to world culture as a result of globalisation
Cultural clusters refer to groups of countries that share similar cultural traits, values and behaviours.
- there is more convergence within cultural clusters
National Business Systems Model (Whitley)
This model comprises economic actors and mechanisms for integration.
The actors identified are as follows:
- providers and users of capital (e.g. banks and firms)
- customers and suppliers
- competitors
- firms in other sectors (those not in direct competition)
- employees
Variations exist in the type of relationships that exist between the actors, especially in the degree of integration.
Integration occurs through state direction, ownership, and non-ownership alliances.
Institutional Frameworks
Use an institutional framework approach to explain the diversity of business strategies, practices and behaviours. A major role is played by the state and influences include the control of education, labour markets, finance and taxation.
Consists of :
- National Business Systems Model of Whitley
- The Anglo-Saxon Model
- The Social Market Model
- The Asian Model
The Anglo-Saxon Model
Founded on the belief in the free market and a belief in individualism and the sanctity（尊厳） of private property.
- this form of capitalism emphasises the workings of the free market-liberal market political economy
- markets are competitive and there is a belief that individuals should be encouraged to participate as entrepreneurs in an enterprise culture
- individuals are encouraged to own goods and capital
- shareholders are viewed as the most important stakeholders in business
- the system is typified by mergers and takeovers, as share dealings result in rapid changes of ownership
- managers are rewarded for maintaining share price and profits and part of that reward often includes shares
- trade unions are tolerated but their powers are often restricted by law
- a response to changed economic circumstances is the flexible use of labour
The Social Market Model
The main features are as follows:
- the free market is seen to be important but needs to be carefully watched
- private and state ownership operate side by side
- there are comprehensive and well-funded social welfare systems controlled by the state
- markets and individual firms are regulated by law and state bureaucracy
- share markets are stable with few managers and takeovers which are regulated by law
- major companies are seen as national champions
-banks tend to be integrated into the system - a close relationship with individual firms and state
- trade unions play an important role in decision-making
- corporatist system: state, business and unions come together to determine policy
- labour markets are less flexible than in Anglo-Saxon systems
- 3 variants of the social market model
1. Social democratic: Sweden, Denmark, Finland
2. Continental European: Germany, Switzerland, Norway, France
3. Mediterranean: Italy, Spain, Portugal, Greece
In many social market systems, there has been a shift towards a freer market with deregulation and privatisation.
The Asian Model
- business practices and working life are dominated by Confucian values
- state operates in a bureaucratic way
- most states have weak social welfare system
- the firm and even its supply chain are viewed as a family, with strong corporate cultures
- stock markets tend to be stable
- managers tend to pursue long-term strategies and goals
- trade unions tend to be weak and often controlled by management or the state
- every attempt is usually made to protect
Varieties of Capitalism: Liveral vs Coordinated Market Economies
Hall and Soskice took Whitley’s National Business Systems Model a stage further and identified three factors that created variations in capitalist systems.
The role of the state is crucial as it has the power and the opportunity to influence all the institutions.
Spheres of activity: relations firms need to develop to operate to the best of their ability
- industrial relations relating to issues of productivity and wages
- vocational training and education, including recruiting people with skills and motivating them to utilise them
- corporate governance which included relations with shareholders and access to finance
- relationships with other firms such as suppliers, buyers and joint venture partners
- relationships with employees
Liberal Market Economies (LME)
- market and competition are used to solve problems and difficulties arising in the five spheres
- UK, USA
- greater labour mobility and flexibility
- short-term approach to investment
- volatile stock market
Coordinated Market Economy (CME)
- emphasis on relationships with banks, suppliers and employees to solve problems and difficulties arising in the five spheres
- Japan, Germany
- stable and less flexible labour market
- a long-term approach to investment
- stable stock market
