Multinational Management: Chapter 2 – Flashcards
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What is culture?
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Pervasive and shared beliefs, norms, and values that guide the everyday life of a group. -Provides solutions to adaptation problems (tight vs loose) -Tells us who we are and to what group we belong -Provides mechanisms that enable continuation of a group
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Norms
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Prescribe and proscribe behaviors, telling us what we can and cannot do
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Values
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Tell us what is good, admirable, beautiful, holy, legitimate life goals (i.e. when giving feedback)
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Beliefs
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Capture our understandings of what is true. It is pervasive and shared
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Cultural Symbols, Stories, and Rituals
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Communicate the norms, values, and beliefs of a society or group to its members
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National Culture
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Dominant culture within political boundaries. Formal education and business conducted in the language of dominant culture Influences law of the land
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Business Culture
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Norms, values, and beliefs that pertain to all aspects of doing business in a culture Business culture informs the acceptable way of conducting business in a society i.e. expectations of women, relationship between superiors and subordinates
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Levels of Culture
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National Culture > Business Culture > Organizational & Occupational Culture > Multinational Management
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Occupational Culture
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Expected ways of behaving for people in the same occupational group regardless of their organizational employer (i.e. Lawyers, Physicians, Accountants)
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Organizational Culture
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Set of important understandings (often unstated) that members of a community share in common
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Hofstede's Model of National Culture
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1. Power Distance 2. Uncertainty Avoidance 3. Individualism 4. Masculinity 5. Long-term Orientation
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Power Distance
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Expectations about equality among people. It is the norm that tells superiors how to "handle" subordinates, and maintains that they two groups are fundamentally different people.
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Uncertainty Avoidance (UA)
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Typical reactions to situations considered different & dangerous. Relates to norms, values, and beliefs regarding a tolerance for ambiguity. High UA societies seek structure, order and predictability in social systems. They avoid conflict.
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Individualism/Collectivisim
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Relationship between the individual and the group in society. Individualistic: People are unique and values in terms of their own achievements and status Collective: People are viewed in terms of the group that they belong, social groups (family, class) take precedence over the individual
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Masculinity/Femininity
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Expectations regarding gender roles Tendency to emphasize on gender roles. Business cultures take on traditional male values, such as emphasis on advancement, earnings, work over family. Men are assertive, dominant, macho, and decisive.
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Long-term/Short-term Orientation
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Basic orientation toward time LTO is an orientation toward time that values patience. LT oriented countries are a more sensitive to social relationships.
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GLOBE National Culture Framework
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Extension form Hofstede with two new dimensions: 1.Performance Orientation 2.Humane Orientation
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Performance Orientation
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degree to which a society encourages its members to innovate, improve their performance, and strive for excellence. Similar to Weber's Protestant work ethic. High: US, Singapore Low: Russia, Greece
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Humane Orientation
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measure of the extent to which individuals are expected to be fair, altruistic, caring, and generous. The higher the it is, belonging and affiliation is emphasize more than needs such as material possessions High: Malaysia, Egypt Low: France, Germany
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7d Model of Culture
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Five dimensions deal with the challenges of how people relate to each other. One deals with perspective on time, and the last deals with relationship with the environment.
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Universalism vs Particularism
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Universal: RULES, contrasts difficult to break, deals are obligations (US, UK, Czech) Particular: RELATIONSHIPS (South Korea, Mexico, Nigeria)
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Universalism vs Particularism Management
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Universal: Procedures apply to all, formalize biz practices, treat all cases similarly Particular: Informal networks, make changes subtly & privately, treat each case individually, keep only insiders informed
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Individualism vs Collectivism
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Individual: INDIVIDUAL achievement, responsibility, decision making (Czech, UK) Collective: GROUP (Japan, Egypt)
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Individualism vs Collectivism Management
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Individual: individual incentives, plan for turnover, provide for individual initiative Collective: group morale & cohesiveness, expect low turnover, set group goals
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Specific vs Diffuse
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Specific: Direct, blunt, precise, principled moral reasoning (Sweden, Czech, UK) Diffuse: Indirect, subtle, ambiguous, situation-based moral decision making (China, Mexico, Norway)
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Specific vs Diffuse Management
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Specific: use of objectives & standards, separate work & life, give clear & precise directions Diffuse: continuous improvement, ambiguous directions to give employees latitude
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Neutral vs Affective
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Neutral: INWARD emotions, Do not reveal thoughts or feelings, control over emotions admired, avoid physical contact & expressive gestures (Sweden, Czech, UK) Affective: OUTWARD emotions, Emotional expression uninhibited, animated, touching is common (China, Mexico, Norway)
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Neutral vs Affective Management
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Neutral: Act under control to show status, keep dialogue to the point Affective: Avoid appearing detached, expect strong commitment to positions, tolerate emotional outburst
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Achievement vs Ascription
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Achievement: PERFORMANCE, Use titles only when relevant, earn respect through performance, mixture of age and gender in management (Norway, Ireland, Austria) Ascription: HERITAGE, Use of titles expected, background and age main qualification for management (Argentina, Hong Kong, Japan)
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Achievement vs Ascription Management
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Achievement: Rewards/respect based on accomplishment Ascription: emphasize seniority, emphasize chain of command, use personal power of superior for rewards
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Past/Present vs Future
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Past/Present: enjoy the moment, respect for past, little plan, immediate impact most important (Egypt, Israel) Future: Potential, planning important (Hong Kong, Korea)
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Past/Present vs Future Management
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Past/Present: Emphasize and be sensitive to history & tradition, avoid strict deadlines, flexible Future: motivate based on opportunities, set deadlines, be punctual & focus on one project
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Internal vs External Control
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Internal: CONTROL, Dominate the environment, show convictions, focus on self or own group (Poland, Brazil) External: ACCOMMODATION, Compromise, harmony & adjustment, adaptation to cycles (China, Ethiopia)
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Internal vs External Management
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Internal: Emphasize authority, dominate subordinate External: Emphasize patience, build & maintain relationships with all, win-win relationships
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Cultural Paradoxes
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When individual situations seem to contradict cultural presciptions
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Ethnocentriscism
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When people from one culture believe that theirs are the only correct, norms, and beliefs
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Cultural Relativism
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Philosophical position arguing that all cultures, no matter how different, are correct and moral for the people of those cultures
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Cultural Intelligence
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Ability to interact effectively in multiple cultures
