The Role of Culture

The Role of Culture PowerPoint PPT Presentation


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Basic Cultural Variations. The nature of people?Good, mixture, evilRelationship to nature?Dominant, in harmony, subjugationRelationship to other people?Hierarchical, collateral, separate (individualist)Modality of human activity?Doing, being and becoming, beingTemporal focus of human activity?Past, present, futureConception of space?Private, mixed, public.

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The Role of Culture

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1. The Role of Culture Managing Across Cultures

2. Basic Cultural Variations The nature of people? Good, mixture, evil Relationship to nature? Dominant, in harmony, subjugation Relationship to other people? Hierarchical, collateral, separate (individualist) Modality of human activity? Doing, being and becoming, being Temporal focus of human activity? Past, present, future Conception of space? Private, mixed, public

3. Similarities Across Cultures Managers in US and Russian firms Managers performed similar functions Devoting effort to communication and networking increased performance and promotion opportunities Similar types of interventions improved performance (Hawthorne effect?) US and Korean employees Similar antecedents influenced organizational commitment (position in hierarchy, tenure, age) Other factors that increased commitment Size of firm (larger firms = less commitment) Employee focus (greater focus = more commitment) Perceptions of organization (positive view = more commitment)

4. Differences Across Cultures In criteria used to evaluate personnel

5. A Jumping Off Place A successful, mid-sized Ohio-based US manufacturing firm decides to open a plan near Madrid, Spain. Factors in the decision include: The end of its licensing agreement with a German firm New patents and technology Lower labor costs in Spain The Spanish partner will provide on-site support; the US firm will provide capital, technology and training

6. A Jumping Off Place If the venture in Spain is successful, the US manufacturer plans to use this experience to open plants first in Italy, then in France Put yourself in the position of an international consultant or manager What differences would you anticipate between Spain and the US? How might lessons learned in Spain need to be adapted for operations in Italy? How would France differ from both, and from the U.S.?

7. Figure 4-5: Power-Distance and Individualism-Collectivism

8. Figure 4-6: Power-Distance and Uncertainty-Avoidance

9. Figure 4-7: Masculinity-Femininity and Uncertainty-Avoidance

10. A Jumping Off Place

11. Strategic Predispositions Ethnocentric predisposition A nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions.

12. Strategic Predispositions Polycentric predisposition A philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates.

13. Strategic Predispositions Regiocentric predisposition A philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis.

14. Strategic Predispositions Geocentric predisposition A philosophy of management whereby the company tries to integrate a global systems approach to decision making.

15. Key Challenges Parochialism the tendency to view the world through one’s own eyes and perspective Simplification the process of exhibiting the same orientation toward different cultural groups Question What practices should multinational companies and international managers adopt to overcome these barriers to effective cross-cultural management?

16. Concluding Comments Caveats… What is typical in a given culture? How discrete are subcultures? Are values and beliefs fixed or fluid? What are the significant “dimensions” of culture? Can attributes of culture be generalized or are they too situation specific? Observation… “Understanding the properties and prospects of nations requires openness to the richness and diversity of national practices and institutions” Brendan McSweeney, http://geert-hofstede.international-business-center.com/mcsweeney.shtml

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