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Culture: What is it?. Value system Norms, beliefs, behaviors Common way of thinking Society’s communicable knowledge Society’s characteristics passed on generation by generation. General Issues. Differences in culture Measurement Adaptation and Acculturation Similarities in culture. - PowerPoint PPT Presentation
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Culture: What is it?
• Value system
• Norms, beliefs, behaviors
• Common way of thinking
• Society’s communicable knowledge
• Society’s characteristics passed on generation by generation
General Issues
• Differences in culture
• Measurement
• Adaptation and Acculturation
• Similarities in culture
Hofstede’s Dimensions of CulturePower Distance• Small - trusting, less formal organizations• Large - mistrusting, hierarchical organizations
Uncertainty Avoidance• Weak - risk is non-threatening; diversity is appreciated• Strong - risk averse, diversity is threatening
Individualism• Collectivist - belonging to groups ideal; group decision making• Individualist - individual initiative and achievement; leadership is the ideal
Masculinity• Feminine - quality of life; people and relationships come first• Masculine - performance; money and transactions come first
Communication and Meaning(Aside from Language)
ME
AN
ING
Explicit:Written/Spoken
Context:Surroundings/
Non-verbalHigh
Context
LowContext
Implications for ManagementINTERPERSONAL
• Punctuality
• Interpersonal distance
• Tempo of business
• Negotiations
• Bribery
• Linear vs. circular communication
• High vs. low context communication
ORGANIZATIONAL• Organizational structure• Decision making• Leadership• Adaptation of products• HRM policies• Entry mode choice• Location of value-creating
activities
Leadership
• Perceived levels of power
• Quality/characteristics of exchange with subordinates
• Communication patterns
• Trust (both ways)
• Delegation of tasks
Organizational Structures/Systems
• Formality of policies and rules
• Hierarchical vs. “flat” organizations
• Mechanistic vs. organic
• Authoritative vs. consensual decision making
• HRM systems
• Accounting systems
Interpersonal Relationships
With …
• Customers
• Suppliers
• Subordinates/superiors
• Co-workers
Motivation and Reward
• Formation/role of setting goals
• Achievements
• Compensation system
• Job satisfaction
• Organizational commitment
Principal Research Question:Japanese-American Context
CulturalDifferences
?• Job dissatisfaction• Lack of commitment
towards company• Propensity to quit
Evidence of a Problem?• “If Americans ‘fail’ on a project, they are never
given another chance. Yet, Americans are rarely explicitly told what their authority is.”
• “In Japan, formal job descriptions don’t exist. This can lead to role ambiguity in the U.S.”
• “One source of frustration for Americans is the lack of input in decision making.”
• “Our engineers leave because of the constraints placed on innovativeness and flexibility”
• “I seem to have several bosses, which can be confusing.”
• “My supervisor doesn’t spend enough time preparing me for this position.”
• “There’s a lack of open, honest communication.”
• “I can’t make your meeting, Wally, because two of our section leaders just quit.”
Not ALL bad...
• “My Japanese boss is the best I ever had.”
• “The Japanese Vice President’s treatment of people is excellent. I am proud of him and respect him.”
• “Our company is excellent in terms of communication and human resources.”
Leadership is the Key:
• “The most necessary training is…how to work with and manage and American workforce.” TMM Executive
NegativeAttitudinalOutcomes
Culture and the Causal Chain
CulturalDifferences
IntermediatePerceptions
SupervisorySupervisoryBehaviorsBehaviors
Supervisory Behaviors• Mentoring
– Psycho-social
– Career-related
• Delegation– Authority-specific
– Task-related
• Communication– Effectiveness
– Formalization
• Monitoring– General
– Corrective
– Intrusive
• Interpersonal Exchange– Exchange Quality
– Acculturating Exchange
– Abusive Exchange
Communication ModelProcedural
Justice
Trust
RoleAmbiguity
RoleConflict
JobSatisfaction
Commitment
LowPropensity
to Quit
CulturalDifference
CommunicationEffectiveness
FormalizedCommunication
Delegation Model
Procedural Justice
Trust
RoleAmbiguity
RoleConflict
JobSatisfaction
Commitment
LowPropensity
to Quit
CulturalDifference
AuthorityDelegation
TaskDelegation
Mentoring Model
Procedural Justice
Trust
RoleAmbiguity
RoleConflict
JobSatisfaction
Commitment
LowPropensity
to Quit
CulturalDifference
Psycho-social
Mentoring
Career-related
Mentoring
Job-related
Feedback
Monitoring Model
Procedural Justice
Trust
RoleAmbiguity
RoleConflict
JobSatisfaction
Commitment
LowPropensity
to Quit
CulturalDifference
InvasiveMonitoring
GeneralMonitoring
CorrectiveMonitoring
Personal Exchange Model
Procedural Justice
Trust
RoleAmbiguity
RoleConflict
JobSatisfaction
Commitment
LowPropensity
to Quit
CulturalDifference
ExchangeQuality
AcculturationExchange
AbusiveExchange
NegativeAttitudinalOutcomes
How to Address Cultural Problems
CulturalDifferences … basics commonly understood.
IntermediatePerceptions …”teachable”?
SupervisorySupervisoryBehaviors … receive scant attention inBehaviors … receive scant attention in most training programsmost training programs
“Chain of causality” often neglected
International Alliances:Strategic Considerations
• Choice of Entry Mode• Resource Pooling
– Redundant
– Complementary
• Learning• Strategic Options• Impact of Culture
International Alliances:Managerial Considerations
• Contract vs. Equity• Structure• Learning:
– Codifiable vs. Tacit Knowledge
– Combinative Capability
– Absorptive Capacity
• Impact of Culture
1984: The NUMMI Alliance
GM Toyota
NUMMI
1986: Application of Knowledge I GM Toyota
NUMMI
TMM-K
1990: Application of Knowledge II GM Toyota
NUMMISaturn
1999: The Fuel Cell Alliance
GM Toyota
Alliance
Learning Race(s)
GM
Toyota
Ford
DaimlerChrysler
Race 1:Market
Race 2:Market
Rate of Learning in Alliances
• Codified vs. tacit knowledge • Absorptive capacity• Combinative capability• Organization of learning
BuyoutBuyout DissolutionDissolution
EquityAlliance
External Forces
Internal Forces
Strategic Option View of Alliances
Alliances and Culture
• Entry: JVs preferred when:– Target country-market culturally different (CD)– Initiating firm high UA
• Structure: Majority ownership preferred when:– Initiating firm high PD
• Learning: Equity preferred when:– Initiating firm high PD
• Longevity: JVs terminate faster/earlier when:– Partners are culturally different (CD)
• Mistrust: Suspicions of poor performance when:– Initiating firm high UA
• Trust: Expectations of good performance when:– Partners are culturally similar
Alliances and Culture cont.
Culture and Alliances as Options• Partnership buyouts more likely when:
– Initiating firm high PD and UA
• Alliance portfolios:– Japanese hold equity alliances longer– Japanese hold larger number of smaller alliances– Japanese more likely to invest further/acquire partner– Americans more likely to spin off partners (success)– Americans faster to terminate alliance (failure)