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Chapter 3:Understanding the Role of

Culture

PowerPoint by

Hettie A. Richardson

Louisiana State University

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Opening Profile: Saudi Arabian Culture

The intersection of culture and business McDonald’s, Saks Fifth Avenue, Pizza Hut Women outnumber men in universities, own

20% of all businesses, but account for only 7% of the workforce

60% of workforce is foreign

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Organizational Culture

Organizational cultures exist within and interact with societal culture

Examples: KLM’s travel-benefits policy McDonald’s in Russia

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How does culture affect organizational processes?

U.S. Culture Alternative Function Affected

Individual influences future

Life is preordained

Planning, scheduling

The environment is changeable

People adjust to the environment

Morale, productivity

Hark work leads to success

Wisdom and luck are also needed

Motivation, rewards

Employment can be ended

Employment is for a lifetime

Promotions, recruitment

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Cultural Insensitivity

Self-reference criterion Example: Japanese courtesy in the US

Parochialism

Ethnocentrism Example: Proctor & Gamble

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Influences on National Culture

Kinship

Education

Economy

Politics

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Influences on National Culture

Religion

Associations

Health

Recreation

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Management Focus: China Protects its Culture

Restrictions against foreign books, the internet, video games, and performing acts

Increased censorship of foreign television programs

Joint operation of television channels by Chinese broadcasters and foreign investors banned

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Cultural Value Dimensions

Values are ideas about what is good or bad

Help managers anticipate likely cultural effects

Allow for contingency management

Can vary across subcultures

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Project GLOBE Dimensions

Assertiveness Low: Sweden, New Zealand, Switzerland High: Greece, Austria, Germany

Performance orientation Low: Russia, Argentina, Greece High: New Zealand, Hong Kong, Singapore

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Project GLOBE Dimensions

Future orientation Low: Russia, Argentina, Poland High: Netherlands, Switzerland, Singapore

Humane orientation Low: Germany, Spain, France High: Malaysia, Ireland, Philippines

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Hofstede’s Dimensions

Power distance Low: Denmark, Israel, Austria High: Malaysia, Arab countries, Mexico

Uncertainty avoidance Low: India, Denmark, Singapore High: Greece, Japan, France

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Hofstede’s Dimensions

Individualism vs. collectivism Individual: Australia, US, UK Collective: Italy, Korea, Singapore

Masculinity vs. femininity Masculine: Japan, Mexico, Germany Feminine: Denmark, Sweden, New

Zealand

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Hofstede’s Dimensions

Long-term/short-term orientation Long-term: China, Japan, Taiwan Short-term: US, Canada, UK

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Trompenaar’s Dimensions

Universalism vs. particularism Universal: USA, Germany, Sweden Particular: Japan, Spain, China

Neutral vs. affective Neutral: Japan, UK, Germany Affective: Spain, Italy, China

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Trompenaar’s Dimensions

Specific vs. diffuse Specific: UK, US, France Diffuse: Sweden, Spain, China

Achievement vs. ascription Achievement: US, UK, Sweden Ascription: Spain, Japan, China

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Variables Causing Problems for Americans

Time “Tomorrow”

Change China and power machinery

Material factors

Individualism

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The Internet and Culture

70% of Korean homes have high-speed internet service

Sweden has refused to allow airline passenger information (e.g., meal preferences) to be transmitted to the US

75% of the world’s internet market lives outside the US

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Comparative Management in Focus: Japan “Wa”—peace and harmony

A mix of authoritarianism and humanism in the workplace

Emphasis on participative management, consensus, and duty

Open expression and conflict discouraged

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Comparative Management in Focus: Germany Preference for rules and order, privacy

Dislike of inefficiency and tardiness

Assertive, but not aggressive

Organizations are centralized but still favor consensus decision-making

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Comparative Management in Focus: South Korea Respect family, authority, formality, class

Are demonstrative, friendly, aggressive, hard-working

Connections vital for business, contracts are oral

Honest criticism is rare

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Applying Cultural Profiles to Management: Saudi Arabia

Tribalism Paternalism, nepotism

Close friendships

Person-orientation,Theory Y

Honor, shame

Conflict avoidance,positive reinforcement

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Applying Cultural Profiles to Management: Chinese Family Business

Small, family businesses predominate

“Guanxi”—connections

People are put ahead of business

Organizations do not include “middle management”