Culture

Introduction
Culture: the sum total of the beliefs, rules, techniques, institutions and artifacts that characterize human populations or the collective programming of the mind.
Socialization Process: The process of enculturation or the adoption of the behaviour patterns of the surrounding culture.
Alan M Rugman and Simon Collinson, International Business, 5th Edition, Pearson Education Limited 2009
Key Terms
Culture Savvy A working knowledge of the cultural variables affecting management decisions
Cultural Sensitivity or Cultural Empathy An awareness and an honest caring about another individuals culture.
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Culture
The acquired knowledge that people use to interpret experience and generate social behavior Cultural knowledge forms values, creates attitudes, and influences behavior Characteristics of culture include: Learned Shared Transgenerational Symbolic Patterned Adaptive
3-3
Key Terms
Culture of a society Comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations. What would be occasion in Pakistan that you considered cultural?
3-4
Key Terms
Self reference criterion The unconscious reference point of ones own cultural values
3-5
Key Terms
Parochialism Occurs when a Frenchman, for example, expects those of French origins in another country to automatically fall into patterns of behavior common in France Ethnocentrism Describes the attitude of those who operate from the assumption that their ways of doing things are best no matter where or under what conditions they are applied
Elements of culture
Table 5.1
World population percentages in terms of home region, language and religion

Sources: www.census.gov; www.adherents.com
Language
Language is critical to culture because it is the primary means used to transmit information and ideas. Knowledge of local language can:
permit a clearer understanding of a situation; provide access to local people; allows the person to pick up nuances, implied meanings, and other information that is not stated outright.
Religion
Religions influence lifestyles, beliefs, values and attitudes and can have a dramatic effect on the way people in a society act toward each other and towards those in other societies. Religion also influences:
the work habits of people; the work and social customs (from the days of the week on which people work to their dietary habits); politics and business.
Values and attitudes

Values: basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant. Attitude: a persistent tendency to feel and behave in a particular way toward some object.
Customs and manners

Customs: common or established practices. Manners: behaviour regarded as appropriate in a particular society.
Corporate culture
Corporate culture is a term used to characterize, how the managers and employees of particular companies tend to behave. Corporate culture is also used by human resource managers and senior management in their attempts to proactively shape the kind of behaviour (innovative, open, dynamic, etc.) they hope to nurture in their organizations. Promoting a distinctive corporate culture is also expected to enhance the sense of community and shared identity that underpins effective organizations.
The importance of culture in different business contexts
Influences of culture on international management

Culture influences strategic management in a number of ways: Work attitudes
Achievement motivation the desire to accomplish objectives and achieve success. Time and future for example: punctuality, decision-making time constraints, time expectations on implementation of plans, etc.
for example, work ethics, organization commitment, etc.
Ethics
standards of conduct and morality.

Culture and strategic management

Cross-cultural management issues arise in a number of situations, including:
Within a firm: Work attitudes, achievement motivation, time and future and ethics, etc. Between firms: M&As, joint ventures, alliances and buyer-supplier relationships. Between a firm and customers: Dealing with customers.
Cf.) Dealing with national institutions.

National stereotypes and key dimensions of culture
Two approaches to culture

Two different approaches to looking at culture:
the psychic or psychological level, which focuses on the internalized norms, attitudes and behaviour of individuals from a particular culture; the institutional level, which looks at national (or group) culture embodied in institutions (government, education, economic institutions as well as in business organizations).
Geert Hofstedes four cultural dimensions

Power distance: measures the degree to which less powerful members of organizations and institutions accept the fact that power is not distributed equally. Uncertainty avoidance: measures the extent to which people feel threatened by ambiguous situations and have created institutions and beliefs for minimizing or avoiding those uncertainties.
Geert Hofstedes four cultural dimensions (Continued)

Individualism vs. collectivism
Individualism: the tendency of people to look after themselves and their immediate family only. Collectivism: the tendency of people to belong to groups who look after each other in exchange for loyalty.
Geert Hofstedes four cultural dimensions (Continued)

Masculinity vs. femininity
Masculinity: the degree to which the dominant values of a society are success, money and material goods. Femininity: the degree to which the dominant values of a society are caring for others and the quality of life.
Figure 5.2
Hofstedes power distance against individualism for 20 countries

Source: Hofstede, G. (1983). The cultural relativity of organizational practices and theories, Journal of International Business Studies, Fall, p. 92. Copyright Geert Hofstede
Fons Trompenaars seven cultural dimensions

1. Universalism vs. particularism Universalism: the belief that ideas and practices can be applied everywhere in the world without modification. Particularism: the belief that circumstances dictate how ideas and practices should be applied and somethings cannot be done the same everywhere.
Fons Trompenaars seven cultural dimensions (Continued)

2. Individualism vs. collectivism: centres on
whether individual rights and values are dominant or subordinate to those of the collective society. 3. Neutral culture vs. emotional culture:
Neutral culture: A culture in which emotions are held in check. Emotional culture: A culture in which emotions are expressed openly and naturally.

4. Specific vs. Diffuse: measures whether work relationships (e.g. the hierarchical relationship between a senior manager and a subordinate) are workplace specific or extend (diffuse) into the social context outside the workplace. 5. Achievement vs. Ascription: measures whether ones status within organizations is based on merit (achieved) or on class, gender, education or age (ascribed).

6. Attitudes toward time
Sequential: cultures that view time in a sequential or linear fashion; order comes from separating activities and commitments. Synchronic: cultures that view events in parallel over time; order comes from coordinating multiple activities and commitments.

7. Attitudes toward the environment: measures the emphasis, a particular culture places on peoples relationship with nature and the natural environment.
The GLOBE projects nine dimensions of culture

1. Assertiveness. 2. Future orientation: A propensity for planning, investing, and delayed gratification. 3. Gender differentiation: The degree to which gender role differences are maximized. 4. Uncertainty avoidance: A reliance on societal norms and procedures to improve predictability, a preference for order, structure and formality. 5. Power distance.
The GLOBE projects nine dimensions of culture (Continued)

6. Institutional collectivism: individualism vs. collectivism.
7. In-group/family collectivism: A pride in small-group

membership, family, close friends etc. 8. Performance orientation: (much like achievement orientation). 9. Humane orientation: An emphasis on fairness, altruism
and generosity.
Culture Embodied in National Institutions
Culture embodied in national institutions

Western Pluralism: emphasizes individual competitiveness, commonly represented by separate ventures success. Command Economies: are centrally planned competing in price-defined markets for
hierarchies with less individualism and less individual incentive.

Culture embodied in national institutions (Continued)

Organic Ordering: refers to the family-centred hierarchies of Asia, Southern Europe and Latin America. Structured Networks: reflect the more equal, structured relationships between companies and with public sector organizations that exist in some countries.
Organizational Culture
A pattern of basic assumptions - invented, discovered, or
developed by a given group as it learns to cope with its

problems of external adaptation and internal integration
That has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way
to perceive, think, and feel in relation to those problems

(Schien, 1985).
National and Global Culture

Relationship between national and corporate culture is complex:
National culture and other elements in an
organization's environment may determine internal organizational culture Globalization also affects organizational culture
Henry Ford, founder of the Ford Motor Company said:

Getting together is beginning Keeping together is progress Working together is success
Understanding Organizational Culture

Organizations are culture free in some
respects, but culture bound in many others

(Trice & Beyer, 1993).
Global, national, and organizational elements

interact to influence organizational culture and
behavior.
National and Global Culture

One can not understand whats going on inside an organizational culture without understanding what exists outside the boundary. National culture provides basic assumptions that legitimize and guide organizational behavior. Industrialization promotes changes in national culture.
Globalization increases awareness of successful practices elsewhere.

Modern communication enhances connections among manufacturers, merchants, financiers, consumers, etc. globally. MNCs seek consistency and shape organizational culture on a global basis.
Culture-Free Approach
It argues that technology, policies, rules, organizational structure, and other variables that contribute to efficiency and effectiveness make national culture irrelevant for management.
McDonalds fast food service World Disney IKEA
McDonald's Restaurants
Pakistan
Types of the restaurant Food adaptation Service adaptation Perceptions of jobs Workplace culture Employee commitment
U.S.
Fast food life style Convenience Temporary jobs High turnover rate Standard food items
National Vs. Organizational Culture

National culture
Broader More complex Influence org. culture Primary and secondary socialization
Organizational culture
Narrower Manageable Secondary socialization Subcultures
What Organizational Culture Does

FUNCTIONS Provides an external identity Creates a sense of commitment Acts as source of high reliability Defines an interpretive scheme Acts as a social control mechanism DYSFUNCTIONS Can create barriers to change Can create conflict within the organization Subcultures can change at different rates than other units

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Introduction

World population percentages in terms of home region, language and religion

Sources: www.census.gov; www.adherents.com

Values and attitudes

Customs and manners

The importance of culture in different business contexts

Influences of culture on international management

for example, work ethics, organization commitment, etc.

standards of conduct and morality.

Culture and strategic management

Cf.) Dealing with national institutions.

National stereotypes and key dimensions of culture

Two approaches to culture

Geert Hofstedes four cultural dimensions

Geert Hofstedes four cultural dimensions (Continued)

Geert Hofstedes four cultural dimensions (Continued)

Hofstedes power distance against individualism for 20 countries

Fons Trompenaars seven cultural dimensions

Fons Trompenaars seven cultural dimensions (Continued)

Fons Trompenaars seven cultural dimensions (Continued)

Fons Trompenaars seven cultural dimensions (Continued)

Fons Trompenaars seven cultural dimensions (Continued)

The GLOBE projects nine dimensions of culture

The GLOBE projects nine dimensions of culture (Continued)

7. In-group/family collectivism: A pride in small-group

Culture Embodied in National Institutions

Culture embodied in national institutions

hierarchies with less individualism and less individual incentive.

Culture embodied in national institutions (Continued)

developed by a given group as it learns to cope with its

to perceive, think, and feel in relation to those problems

National and Global Culture

Henry Ford, founder of the Ford Motor Company said:

Understanding Organizational Culture

respects, but culture bound in many others

Global, national, and organizational elements

National and Global Culture

Globalization increases awareness of successful practices elsewhere.

National Vs. Organizational Culture

What Organizational Culture Does

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