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International Management. Phatak, Bhagat, and Kashlak. CHAPTER 5. The Cultural Environment. Learning Objectives. Understand the concept of culture and cultural variations in international management. Explain the relationship of environmental factors on societal culture.

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International Management

Phatak, Bhagat, and Kashlak

chapter 5

CHAPTER 5

The Cultural Environment

learning objectives
Learning Objectives
  • Understand the concept of culture and cultural variations in international management.
  • Explain the relationship of environmental factors on societal culture.
  • Discuss the significance of various frameworks for understanding cultural differences around the world.
  • Identify distinctive management styles that exist in different countries of the world.
chapter topics
Chapter Topics
  • What is Culture?
  • The Dimensions of Culture
  • Culture and Management Styles in Selected Countries
what is culture
What is Culture?
  • Culture is a concept that has been used in several social science disciplines to understand variations in human thought processes in different parts of the world.
  • Culture is to a society what memory is to an individual.
components of culture
Components of Culture

Objective Component

Consists of such things as infrastructure of roads, architecture, patterns of music, food, and dress habits

Subjective Component

Ways that people categorize experience, associations, beliefs, attitudes, self-definitions, role definitions, norms, and values

ex 5 1 environmental influences on international management functions
Ex 5.1: Environmental Influences on International Management Functions

Country Specific Influences

Eco. system; Political system

Tech. level

Important historical events

Customs and Traditions of the Country

Religion; Dialects and languages

Education

Cultural Orientation and Value Pattern

Influences

Attitudes Toward

Work; Money; Time; Family; Authority; Change; Risk; Equality

Influences

International Management Functions

Organizing and controlling; Managing technological change; Motivating; Communicating; Decision-making; Negotiating; Ethical/ social respon.

cultural sensitivity
Cultural Sensitivity

… may be defined as a state of heightened awareness for the values and frames of reference of the host culture.

cultural sensitivity contd
Cultural Sensitivity (contd.)
  • Parochialism is the belief that there is no other way of doing things except that found within one’s own culture, that is, that there is no better alternative.
  • Ethnocentrism is similar to parochialism, and tends to reflect a sense of superiority, and ethnocentric individuals believe that their ways of doing things are the best, no matter which cultures are involved.
cultural sensitivity contd10
Cultural Sensitivity (contd.)
  • Geocentrism is very different to both parochialism and ethnocentrism, reflecting a belief that it is necessary to be responsive to local cultures and markets.
hofstede s cultural dimensions
Hofstede’s Cultural Dimensions
  • Individualism and collectivism
  • Power distance
  • Uncertainty avoidance
  • Masculinity and femininity
  • Time orientation
hofstede s cultural dimensions contd
Hofstede’s Cultural Dimensions (contd.)
  • Individualism may be defined as a social pattern that consists of loosely-linked individuals who view themselves as independent of groups and who are motivated by their own preferences, needs, rights, and contracts.
  • Collectivism may be defined as a social pattern that consists of closely linked individuals who see themselves as belonging to one or more groups and who are motivated by norms, duties, and obligations identified by these groups.
hofstede s cultural dimensions contd14
Hofstede’s Cultural Dimensions (contd.)
  • Power distance is the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.
  • Uncertainty avoidance is the extent to which the members of a culture feel threatened by uncertain or unknown situations or by ambiguity in a situation.
hofstede s cultural dimensions contd15
Hofstede’s Cultural Dimensions (contd.)
  • Masculinity pertains to societies in which social gender roles are clearly distinct (i.e., men are supposed to be assertive, tough, and focused on material success whereas women are supposed to be more modest, tender, and concerned with quality of life).
  • Femininity pertains to societies in which social gender roles overlap (i.e., both men and women are supposed to be modest, tender, and concerned with the quality of life).
trompenaars cultural dimensions
Trompenaars’ Cultural Dimensions
  • How people relate to each other
    • Universalism vs. particularism
    • Individualism vs. collectivism
    • Neutral vs. affective relationship
    • Specific vs. diffuse relationship
    • Achievement vs. ascription
  • Time
    • Emphasis on past, present, or future
    • Whether it is sequential or synchronic
  • Relation to nature
    • Internal or external orientation
ex 5 14 ronen and shenkar s framework
Ex. 5-14: Ronen and Shenkar’s Framework

Nordic

Near Eastern

Finland

Turkey

Norway

Arab

Germanic

Iran

Denmark

Bahrain

Austria

Greece

Abu Dhabi

U.A.E.

Sweden

Germany

Oman

Kuwait

Switzerland

S. Arabia

Malaysia

U.S.

Singapore Hong Kong

Australia

Anglo

Far Eastern

Canada

France

Argentina

New Zealand

S. Vietnam Philippines

U.K.

Venezuela

Belgium

Indonesia

Taiwan

Thailand

Ireland

Mexico Chile

Latin American

S.Africa

Latin European

Peru

Italy Spain

Columbia

Portugal

Israel

Brazil

Japan

Independent

India

ex 5 15 schwartz s value dimensions selected
Ex. 5.15: Schwartz’s Value Dimensions (selected)

Hierarchy

Mastery

Conservatism

Wealth

Successful

Family security

World of beauty

Affective Autonomy

Harmony

Enjoying life

Curious

World of peace

Intellectual Autonomy

Egalitarian Commitment

hall s framework
Hall’s Framework
  • Context refers to cues and other information that are present in a given situation.
  • In high context cultures information is embedded in the social situation and is implicitly understood by those involved in the situation.
  • In low context cultures information tends to be more explicitly stated.
triandis framework
Triandis’ Framework
  • Cultural syndrome is composed of
    • Cultural complexity
    • Tightness versus looseness, and
    • Two aspects of individualism versus collectivism (horizontal and vertical)
key terms and concepts
Key Terms and Concepts
  • Culture
  • Subjective culture
  • Objective culture
  • Convergence of culture
  • Divergence of culture
  • Cultural sensitivity
  • Parochialism
  • Ethnocentrism
  • Geocentrism
key terms and concepts contd
Key Terms and Concepts (contd.)
  • Individualism versus collectivism
  • Power distance
  • Uncertainty avoidance
  • Masculinity versus femininity
  • Time orientation