Lecture 1 Flashcards
It is believed that one only understands the values associated with his/her culture under the following two conditions:
When we begin to visualize our culture only when we are out of it.
When we invite an outsider who innocently comments about what he/she sees as the saying goes “the emperor is without cloth”.
Definition of Culture
Culture is all patterns of values, ideas and symbolic system that shape behavior. Kroeber & Kluckhohn (1952): anthropological approach
culture is a pattern of basic assumptions and the beliefs that culture is relatively enduring and difficult to change (Schein 1985) .
culture is the way people live and relate to each other and to the environment they live in
(Fatehi, 1996).
Culture is a collective programming of the mind which distinguishes the members of one human group from another.
(Hofstede,1991)
(surface culture)
the outer layer that represents the explicit culture
the middle layer
represents the norms and -values
(deep culture)
the inner layer which represents the implicit culture
The multi-layer nature of culture becomes even more complex as a result of the interaction of:
national, organizational and professional cultures that affect individuals.
the interaction or the absence of interaction among the three layers leads to:
cultural universalism
or
particularism
(For example: while following and applying national cultural views lead to the application of particularism of rules and regulations in business, professional and organizational cultural dynamics lead to universalism of rules and regulations in business practicws. (see the following figure)
most famous culture definition
Culture is a collective programming of the mind which distinguishes the members of one human group from another.
(Hofstede,1991)
Complexity of Culture:
A Theoretical Model on Interaction of Three Layers of Culture
Expatriate’s Culture
Religion, History, Ideology
Corporate Culture
NC=National Culture
OC=Organizational Culture
PC=Professional Culture
(see lecture 1, slide 8)
Overlap of National Cultural Values is More Possible between
Similar Socio-Economic Countries than Dissimilar Countries.
The Need behind Cross Cultural Management Study
Globalization of the world economy
The positive impact of cross-culture on international business
There is an association of the absence of cross-cultural view in international mgmt. and international business failures.
To avoid parochialism in business practice.
To understand the culture orientation of management.
Viewing the importance of culture in four business phases: why cultural study intensity depends on the level of organizational internationalization
Domestic Phase
Multi-domestic Phase
Multinational Phase
Global Phase
Domestic Phase
limited cultural impact on business
Multi-domestic Phase
the knowledge of local culture is important for market segmentation (the focus is on employees and customers)
Multinational Phase
adapting to specific countries’ cultures is vital for success (the focus is on managers)
Global Phase
a thorough cultural knowledge of a specific macro region is helpful in a standardized business operation. Global culture is created as a fusion of internal and external cultures. (the focus is on executives, managers, employees and customers)
The absence of cross cultural management in an business organization can lead to
insensitivityof managers and employees towards different cultures
miscommunicationamong individuals, organizations and nations
business blunders in international business dealings
high failure rate
loss of revenue and market share and growth
Parochialism manager believes developing the attitude…
…“a good manager at home is a good manager overseas.”
Symptoms of Parochialism in US Management Style:
Staffing of top overseas management positions by individuals with no international experience
Marginalizing the importance of foreign language foreign work experience
As a result of the above factors, the failure rate of American expatriates compared to other competitive nations such as Japan and European countries has been believed to be high.
How were American firms reacting to the needs of multiculturalism in the workplace?
A survey conducted among 30 Dallas-based Global and multinational managers indicates that:
none of the 30 respondents believed that foreign language skill was important in hiring a candidate for overseas assignment.
only 15% of the respondents thought positively about the candidate’s multicultural skills.
65% of the mangers considered interpersonal skills as important.
100% of the managers indicated that managerial and technical skills are crucial factors for new hires.
Source: Woldu, H. and Gortze, L. (2001) Training and Recruitment in Dallas-based American Corporations for Future Needs, Southwest Business Symposium Proceedings, The University of Central Oklahoma
Causes of Parochialism: Parochialism is not only American problem
Historically, all nations that had dominant economic, political and military power manifested parochialism in their attitude
Parochial managers/nations conduct an inward looking economic policy
Parochial managers enjoy economic hegemony
Parochial managers see their technological superiority as power
Why the American corporate culture cannot afford to continue to manifest parochial management style
High Competition:
25% US firms faced competition in 1975
70% in 1985, 80% in 1990 and almost all in 2000 and beyond
Positive economic performance of other countries
The end of cold war open an opportunity for collaboration
The significance of the world economy to the American economy
Newly Industrializing countries which were not traditionally US trade partners are joining the global market. Understanding their business practice will require developing multicultural skills.
Failure of American expatriates in foreign assignments compared to European and Japanese is high and is attributed to lack of cultural sensitivity and the costs of failure are high.
Why American corporate culture cannot afford to manifest parochial management style (cont.)
1 of every 6 U.S. manufacturing jobs produces for export
1 out of every 3 U.S. farm acres is producing for export
$1 of every $7 of U.S. sales goes abroad
1 of every 3 cars, 9 out of 10 TVs, 2 out of 3 suits, and every VCR sold in the U.S. is imported.
Travel and tourism is the #1 source of U.S. foreign exchange.
Thus, In order the domestic economy to be competitive, nations should have an outward looking economic policy
Is the American Corporate Leadership Changing?
According to recent survey:
Executives no longer question the increasing importance of global business
2/3 of the CEOs think in global competition
2/3 of the CEOs think that employment and revenue will increase as the result of global expansion
There are about 17 cultural dimensions classified into six categories: Kluckhohn, F. and Strodtbeck, F.L. (1961)
Relations to Nature
Human Relations
Attitude towards Time
Human Nature
Relations to ownership
Relations to Nature
Mastery (practiced more in the West)
Harmony (more in Asia)
Subjugation (more in less developed economies)
Human Relations
Collective (more in less developed economies)
(more in less developed economies)
Individual (practiced more in the West)
Hierarchical (practiced more in the West)
Attitude towards Time
Past orientation (more in less developed economies)
Present orientation (US and other Western Countries
Future orientation (Scandinavian Countries)
Human Nature
Good/evil-believing that people in most cases are evil (practiced more in less developed economies or dictatorial political systems)
Changeable-believing that given time people change (practiced more in democratic countries)
Relations to Ownership
Private (free market economies)
Public (command economy countries)
Mixed (mixed economies)
