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Cross-Cultural Management: Models and Implications

Learn the impact of culture on business with models like Hofstede's, explore diverse dimensions such as power distance and individualism vs. collectivism, and discover managerial implications for effective multinational management.

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Cross-Cultural Management: Models and Implications

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  1. CHAPTER 2 CULTURE AND MULTINATIONAL MANAGEMENT

  2. 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

  3. Levels of Culture

  4. NATIONAL CULTURE

  5. NATIONAL CULTURE BUSINESS CULTURE

  6. NATIONAL CULTURE BUSINESS CULTURE ORGANIZATION OCCUPATIONAL CULTURE CULTURE

  7. NATIONAL CULTURE BUSINESS CULTURE ORGANIZATION OCCUPATIONAL CULTURE CULTURE MULTINATIONAL MANAGEMENT

  8. Caveats and Cautions • Stereotyping • Ethnocentrism • Cultural relativism

  9. Two Diagnostic Models to Aid the Multinational Manager • Hofstede’s Model of National Culture • 7d Cultural Dimensions Model

  10. Hofstede’s Model of National Culture • Issues of equality - “power distance” • What is different and dangerous - “uncertainty avoidance”

  11. Hofstede’s Model of National Culture, continued • The individual and the group in society - “collectivism/individualism” • Gender roles - “masculinity” • Confucian values - “long term orientation”

  12. 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

  13. Exhibit 2.2Management Implications Of Power Distance

  14. 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

  15. Exhibit 2.3 Management Implications of Uncertainty Avoidance

  16. Individualism • People are responsible for themselves • Individual achievement is ideal • People are not emotionally dependent on organizations or groups

  17. 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

  18. Exhibit 2.4 Management Implications of Individualism

  19. 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

  20. Exhibit 2.5 Management Implications Of Masculinity

  21. 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

  22. Exhibit 2.6 Management Implications Of Long Term Orientation

  23. 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

  24. Latin European • high uncertainty avoidance • Nordic • low masculinity • Far Eastern • high power distance, low individualism

  25. The 7d Model of Culture Cultural Dimensions and Critical Questions • Relationships with People: • universalism vs. particularlism • Do we consider rules or relationships more important?

  26. 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?

  27. 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)?

  28. 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?

  29. Exhibit 2.9 Universalism versus Particularism: Differences and Managerial Implications

  30. Exhibit 2.10 Individualism versus Collectivism: Differences and Managerial Implications

  31. Exhibit 2.11 Neutral versus Affective: Differences and Managerial Implications

  32. Exhibit 2.12 Specific versus Diffuse: Differences and Managerial Implications

  33. Exhibit 2.13 Achievement versus Ascription: Differences and Managerial Implications

  34. Exhibit 2.14 Time Horizon: Differences and Managerial Implications

  35. Exhibit 2.15 Internal versus External Control: Differences and Managerial Implications

  36. 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

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