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CHAPTER 2 CULTURE AND MULTINATIONAL MANAGEMENT. What Is Culture?. Culture is the pervasive and shared beliefs , norms , values , and symbols that guide everyday life transmitted by symbols, stories and rituals often taken-for-granted. Levels of Culture. NATIONAL. CULTURE.

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slide1

CHAPTER 2

CULTURE

AND

MULTINATIONAL MANAGEMENT

what is culture
What Is Culture?
  • Culture is the pervasive and sharedbeliefs, norms, values, and symbols that guide everyday life
    • transmitted by symbols, stories and rituals
    • often taken-for-granted
slide4

NATIONAL

CULTURE

slide5

NATIONAL

CULTURE

BUSINESS

CULTURE

slide6

NATIONAL

CULTURE

BUSINESS

CULTURE

ORGANIZATION

OCCUPATIONAL

CULTURE

CULTURE

slide7

NATIONAL

CULTURE

BUSINESS

CULTURE

ORGANIZATION

OCCUPATIONAL

CULTURE

CULTURE

MULTINATIONAL

MANAGEMENT

caveats and cautions
Caveats and Cautions
  • Stereotyping
  • Ethnocentrism
  • Cultural relativism
two diagnostic models to aid the multinational manager
Two Diagnostic Models to Aid the Multinational Manager
  • Hofstede’s Model of National Culture
  • 7d Cultural Dimensions Model
hofstede s model of national culture
Hofstede’s Model of National Culture
  • Issues of equality - “power distance”
  • What is different and dangerous - “uncertainty avoidance”
hofstede s model of national culture continued
Hofstede’s Model of National Culture, continued
  • The individual and the group in society - “collectivism/individualism”
  • Gender roles - “masculinity”
  • Confucian values - “long term orientation”
power distance
POWER DISTANCE
  • Inequality is good
  • Everyone has a place
  • People should depend on a leader
  • The powerful are entitled to privileges
  • The powerful should not hide their power
uncertainty avoidance
Uncertainty Avoidance
  • Avoid conflict
  • Low tolerance of deviant people and ideas
  • Respect for laws and rules
  • Experts and authorities are usually correct
  • Consensus is important
individualism
Individualism
  • People are responsible for themselves
  • Individual achievement is ideal
  • People are not emotionally dependent on organizations or groups
collectivism
Collectivism
  • Self identity based on group membership
  • A belief that group decision making is best
  • A belief that groups protect you in exchange for loyalty
masculinity
Masculinity
  • Clear definitions of gender roles
  • Men are assertive and dominant
  • Support for Machismo
  • Men should be decisive
  • Work is priority
  • Growth, success, and money are important
long term confucian orientation
Long Term (Confucian) Orientation
  • Belief in substantial savings
  • Willingness to invest
  • Acceptance of slow results
  • Persistence to achieve goals
  • Sensitivity to social relationships
  • Pragmatic adaptation
hofstede s dimensions by countries exhibit 2 4
Hofstede’s Dimensions By Countries Exhibit 2.4
  • Anglo cultures (US, GB, Australia)
    • high on individualism and masculinity, low on power distance and uncertainty avoidance
slide29
Latin European
    • high uncertainty avoidance
  • Nordic
    • low masculinity
  • Far Eastern
    • high power distance, low individualism
the 7d model of culture cultural dimensions and critical questions
The 7d Model of Culture Cultural Dimensions and Critical Questions
  • Relationships with People:
    • universalism vs. particularlism
      • Do we consider rules or relationships more important?
the 7d model continued
The 7d model, continued
  • individualism vs. communitarianism
    • Do we act mostly as individuals or as groups?
  • specific vs. diffuse
    • How extensively are we involved with the lives of other people?
the 7d model continued1
The 7d model, continued
  • emotional vs. neutral
    • Are we free to express our emotions or are we restrained?
  • achievement vs. ascription
    • Do we achieve status through accomplishment or is it part of our situation in life (e.g., gender, age, social class)?
the 7d model continued2
The 7d model, continued
  • Perspective on Time:
    • sequential vs. snchronic
      • Do we do tasks in sequence or several tasks at once?
  • Relationship with the Environment:
    • internal vs. external control
      • Do we control the environment or does it control us?
conclusions
Conclusions
  • Culture has a variety of levels that affect multinationals
  • Models provide starting point to understand culture
  • Learning another culture is a never ending process