UNIT 1-

UNDERSTANDING THE
ROLE OF CULTURE
Cultural dimensions, Hofstede, Globe, Trompenaar’s
cultural value dimensions, Ronen &Shenkar’s country
clusters, Kluckhohn & Strodbeck model, Schwartz’s
framework, Hal’s framework, Triandis framework.
Cultural profiles of different countries
Culture and management styles around the world.
What is Culture?
➢ The word “culture” comes from Latin “cultura”, which
refers to cult or worship.
➢ In management aspect, “culture” means acquired
knowledge that people use to interpret experience and
generate social behavior.
➢ This knowledge forms values, creates attitudes, and
influences behavior.
The Nature of Culture
➢ Characteristics of culture:
1. Learned
2. Shared
3. Transgenerational
4. Symbolic
5. Patterned
6. Adaptive
➢ If international managers do not know something
about cultures of the countries they deal with,
the results can be quite disastrous.
What is Cross Cultural Management?
CCM is a fairly new field that is based on theories and
research from:
• Cross Cultural Psychology
• International Business
• Organizational Behaviour
• Human Resources
• Anthropology
CCM Goals
Cross Cultural Management seeks to:
• understand how national cultures affect management
practices
• identify the similarities and differences across cultures in
various management practices and organizational
contexts
• increase effectiveness in global management
Understand why we need CCM
• Handout 1
ROLE OF CULTURE IN CROSS
CULTURAL MANAGEMENT
1. Globalization and CCM
• Globalization is here to stay.
• Most large companies have some kind of business
relations with customers, companies, employees or
various stake-holders in other countries and cultures.
(Global corporations)
• Many employees and managers deal with people from
other cultures on a constant basis
• Most of us have a close experience with only one or two
cultures and do not understand the dynamics of these
truly global conglomerates
Globalization and CCM
• We do not understand people from other cultures as
readily and intuitively as people from our own culture
• Cross cultural management helps organization members
to gain better understanding of other cultures, of their
culture and of the consequences of people from different
cultures working together
2. Cultural diversity

• Most importantly, culture affects how people think

and behave.
• Therefore, cultural differences have impacts on
international management.
• An example of diversity in somethings as simple as
a handshake:
American (firm), Asian (gentle), British (soft), French
(light and quick), Latin American (moderate grasp)
• Priorities of cultural values are not the same in
different countries or groups of countries.
3. Understand Cultural Values and
characteristics
QUIZ 1
What are the potential benefits of having
good cultural awareness?
1. Fewer misunderstandings and conflicts
2. Increased likelihood of your business working well in an
international market
3. Increased levels of respect between you and business
contacts
4. All of the above
Which of the following is considered poor
etiquette in Japan?
1. Offering a gift with two hands
2. Placing your chopsticks upright in your food
3. Taking off your shoes before entering someone's home
Answer
• It is considered very rude to place chopsticks vertically in
your food as it symbolises an offering to the dead.
Which colour should you avoid wearing in
a meeting in Brazil?
1. Red
2. Purple
3. Yellow
Answer
• Together with black, purple is associated with mourning
and is considered unlucky to wear unless you are
attending a funeral.
CULTURAL DIMENSIONS
1. Hofstede
2. Globe
3. Trompenaar’s cultural value dimensions
4. Ronen &Shekar’s country clusters
5. Kluckhohn & Strodbeck model
6. Schwartz’s framework
7. Hal’s framework
8. Triandis framework.
HOFSTEDE
Read word doc on Geert Hofstede
Hofstede’s Cultural Dimensions
• Culture is “the collective programming of the mind
distinguishing the members of one group or category of
people from others”.
• The six dimensions of national culture by Professor Geert
Hofstede
i. Power Distance Index (PDI)
ii. Individualism Vs. Collectivism (IDV)
iii. Masculinity Vs. Femininity (MAS)
iv. Uncertainty Avoidance Index (UAI)
v. Long Term Orientation Vs. Short Term Normative
Orientation (LTO) Latest
vi. Indulgence Vs. Restraint (IND)
1. Power Distance
• Power Distance: The extent to which the less powerful
members of institutions and organizations expect and
accept that power is distributed unequally
• Put simply, people in some cultures accept a higher
degree of unequally distributed power than do people in
other cultures.
• Power Distance lies with the people at the bottom and not
at the top
• Power Distance is present in the relation between children
and parents, employer and employee
Contd..
• So this talks about Superior-subordinate relationships and
more importantly the degree that people not in power
accept that power is spread unequally. Simply speaking
the degree by which subordinates accept that power is
vested in superiors.
• The fundamental issue here is how a society handles
inequalities among people

• POWER DISTANCE INDEX (PDI) This dimension

expresses the degree to which the less powerful
members of a society accept and expect that power is
distributed unequally.
Contd..
• In societies with high Power Distance accept a
hierarchical order in which everybody has a place and
which needs no further justification.
• In societies with low Power Distance, people strive to
equalize the distribution of power and demand justification
for inequalities of power.
Comparison
High Power Distance
• Inequality is considered
normal part of society.
• Autocratic leadership is
acceptable.
• Child learn respect.
• Societies prefer
centralization.
• Subordinates do as they
told.
• Subordinates are blamed
for mistakes.
• More income inequality.
Low Power Distance
• Inequality is considered
wrong & it should be
reduced if possible.
• Democratic leadership.
• Child learn independence.
• Societies prefer
decentralization.
• Subordinates expect to be
consulted.
• System is blamed for
mistakes
• Less income inequality.
What about India?
• Let’s check some PDIs first.
• India scores high on this dimension, 77, indicating an appreciation for
hierarchy and a top-down structure in society and organizations. If
one were to encapsulate the Indian attitude, one could use the
following words and phrases : dependent on the boss or the power
holder for direction, acceptance of un-equal rights between the
power-privileged and those who are lesser down in the pecking order,
immediate superiors accessible but one layer above less so,
management directs, gives reason / meaning to ones work life and
rewards in exchange for loyalty from employees.
• Real Power is centralized even though it may not appear to be and
managers count on the obedience of their team members. Employees
expect to be directed clearly as to their functions and what is
expected of them. Control is familiar, even a psychological security,
and attitude towards managers are formal even if one is on first name
basis. Communication is top down and directive in its style and often
feedback which is negative is never offered up the ladder.
2. Individualism Vs. Collectivism (IDV)
• Individualism is the one side versus its opposite,
collectivism, that is the degree to which individuals are
integrated into groups.
• On the individualist side we find societies in which the ties
between individuals are loose: everyone is expected to
look after him/herself and his/her immediate family. On the
collectivist side, we find societies in which people from
birth onwards are integrated into strong, cohesive in-
groups, often extended families (with uncles, aunts and
grandparents) which continue protecting them in
exchange for unquestioning loyalty.
Individualism Vs. Collectivism (IDV)
Individualism
• Individualism “I” identity.
• Classifies individuals by
their own particular
characteristics.
• Task comes first.
• Low context communication.
• Self-actualization is ultimate
goal.
• More press freedom.
• Faster pace of life.
Collectivism
• Collectivism “We” identity.
• Classifies as in-group or out
group.
• Relationship comes first.
• High context communication
• Harmony in society is
ultimate goal.
• Less press freedom.
• Slower pace of life.
IDV Scores
• The United States can clearly been seen as individualistic
(scoring a 91). The “American dream” is clearly a
representation of this. This is the Americans’ hope for a
better quality of life and a higher standard of living than
their parents’. This belief is that anyone, regardless of
where they were born or what class they were born into,
can attain success, can raise themselves from poverty
and it is a society where upward mobility is possible for
everyone.
• The US achieves the highest score for individualism and
is chased closely by Australia and the UK.
• On the scale of Hofstede Guatemala features a strong
collectivism score(6 on the scale).
IDV Scores
• On the scale of Hofstede Guatemala features a strong
collectivism score(6 on the scale). A majority of Asian
nations are also strong on Collectivism.
• In these cultures you cannot expect to walk in, make a
presentation and immediately get down to business.
Building trust and relationships needs to be part of your
business plan. Singling out individuals should be avoided,
even though it is tempting, as we come from a very
individualistic culture ourselves.
Group Activity
• Pick up any one country of choice and research them on
the basis of these two dimensions
• Also look up MS Teams on “how to do group project”
3. Masculine/ Feminine (MAS Score)
• What motivates people: wanting to be the best
(masculine) or liking what you do (feminine).
• High Score on MAS falls on the Masculinity side of this
dimension. Represents a preference in society for
achievement, heroism, assertiveness and material reward
for success. Society at large is more competitive.
• Femininity, stands for a preference for cooperation,
modesty, caring for the weak and quality of life. Society at
large is more consensus-oriented.
• How do we measure masculinity or feminity of a society?
• It can only be measured relative to other societies and we
measure it in MAS Score and scale starts from 0 to the
most feminine to100 for most masculinity.
Masculine/ Feminine (MAS Score)
• A high score (Masculine) on this dimension indicates that
the society will be driven by competition, achievement and
success, with success being defined by the winner / best
in field – a value system that starts in school and
continues throughout organisational life.
• A low score (Feminine) on the dimension means that the
dominant values in society are caring for others and
quality of life. A Feminine society is one where quality of
life is the sign of success and standing out from the crowd
is not admirable.
MAS Score
• The assertive pole of this dimension has been called
‘masculine’ and the modest, caring pole ‘feminine’.

• Highest MAS- Japan, Italy , Mexico, China, Britain,

Germany, USA
• Low MAS- France, Russia, Denmark, Netherlands
Japan on MAS Score
• At 95, Japan is one of the most Masculine societies in the
world. However, in combination with their mild
collectivism, you do not see assertive and competitive
individual behaviors which we often associate with
Masculine culture. What you see is a severe competition
between groups.
• Masculinity in Japan is the drive for excellence and
perfection in their material production as also in every
aspect of life. Notorious Japanese work-holism is another
expression of their Masculinity. It is still hard for women to
climb up the corporate ladders in Japan with their
Masculine norm of hard and long working hours.
Russia on MAS Score
• Russia’s relatively low score of 36 may surprise with
regard to its preference for status symbols, but these are
in Russia related to the high Power Distance. At second
glance one can see, that Russians at workplace as well
as when meeting a stranger rather understate their
personal achievements, contributions or capacities. They
talk modestly about themselves and scientists,
researchers or doctors are most often expected to live on
a very modest standard of living. Dominant behaviour
might be accepted when it comes from the boss, but is not
appreciated among peers.
Masculine vs Feminine
Masculine Feminine

• Work clearly prevails over • Try to balance family and

family and work is an work
acceptable excuse to
neglect family
• Focus on achievement,
• Focus on cooperation,
heroism, assertiveness modesty, caring for the
and material reward for
weak and quality of life
success
4. Uncertainty Avoidance
• Uncertainty Avoidance dimension expresses the degree
to which the members of a society feel uncomfortable with
uncertainty and ambiguity.
• Uncertainty avoidance deals with a society’s tolerance for
uncertainty and ambiguity; it ultimately refers to man’s
search for Truth. It indicates to what extent a culture
programs its members to feel either uncomfortable or
comfortable in unstructured situations. Unstructured
situations are novel, unknown, surprising, and different
from usual. Uncertainty avoiding cultures try to minimize
the possibility of such situations by strict laws and rules,
safety and security measures, and on the philosophical
and religious level by a belief in absolute Truth; ‘there can
only be one Truth and we have it’.
Uncertainty Avoidance
• Countries exhibiting Strong UAI maintain rigid codes of
belief and behavior and are intolerant of unorthodox
behavior and ideas.
• Weak UAI societies maintain a more relaxed attitude in
which practice counts more than principles.
Strong vs Weak Uncertainty Avoidance
Strong UAI
• More stress and anxiety.
• Feeling what is different is
dangerous.
• Need rules even if they are
impractical or never practiced.
• Believe in formalization.
• Adopted innovations rather
slowly or carefully.
• People tend to stay in the same
job as long as they can to avoid
uncertainty.
• Afraid of people who look or
behave different or come from
elsewhere.
Weak UAI
• Less stress and anxiety.
• Feeling what is different is
curious and willing to try it.
• Don’t like rules or need fewer
rules and may sometimes be
broken in case of necessity.
• Believe in deregulation.
• Take less time to adopt.
• People can easily change jobs.
• More tolerance towards people
who are different.
Uncertainty Avoidance
• At 92 Japan has a high UAI.
• You could say that in Japan anything you do is prescribed for
maximum predictability. From cradle to grave, life is highly
ritualized and you have a lot of ceremonies. For example, there
is opening and closing ceremonies of every school year which
are conducted almost exactly the same way everywhere in
Japan. At weddings, funerals and other important social events,
what people wear and how people should behave are
prescribed in great detail in etiquette books. School teachers
and public servants are reluctant to do things without
precedence. In corporate Japan, a lot of time and effort is put
into feasibility studies and all the risk factors must be worked
out before any project can start. Managers ask for all the
detailed facts and figures before taking any decision. This high
need for Uncertainty Avoidance is one of the reasons why
changes are so difficult to realize in Japan.
Uncertainty Avoidance
• The Greek myth about the “birth” of the world tells us a lot
about high Uncertainty Avoidance: at the very beginning
there was only Chaos but then Cronos (Time) came in to
organize life and make it easier to manage.
5. Long term and Short Term Orientation
• This refers to how much society values long-standing – as
opposed to short-term – traditions and values. This is the
fifth dimension that Hofstede added in the 1990s, after
finding that Asian countries with a strong link to Confucian
philosophy acted differently from Western cultures.
• It was added after the original four to try to distinguish the
difference in thinking between the East and West.
Long term and Short Term Orientation
• Long-term orientation exists when you are focused on the
future. You are willing to delay short- term material or
social success or even shot-term emotional gratification in
order to prepare for the future. If you have this cultural
perspective, you value persistence, perseverance and
focus on saving.

• Short-term orientation exists when you are focused on

the present or past and consider them more important
than the future. You care more about immediate
gratification than long-term fulfillment.
Long term and Short Term Orientation
• In countries with a high LTO score, delivering on social
obligations and avoiding "loss of face" are considered very
important. Application: According to Hofstede's analysis, people
in the United States and United Kingdom have low LTO scores.
This suggests that you can pretty much expect anything in this
culture in terms of creative expression and novel ideas. The
model implies that people in the U.S. and U.K. don't value
tradition as much as many others, and are therefore likely to be
willing to help you execute the most innovative plans as long as
they get to participate fully. (This may be surprising to people in
the U.K., with its associations of tradition.)
• Those with a culture which scores high (Long Term
Orientation), on the other hand, take a more pragmatic
approach: they prefer to maintain time-honoured traditions and
norms, show a a strong propensity to save and invest,
thriftiness, and perseverance in achieving results..
Some Long Term Orientation (LTO) scores
High Low
88 Japan 51 Britain
87 China 38 Israel
83 Germany
26 U.S.A.
81 Russia
24 Mexico
63 France
61 Italy 21 Australia
53 Sweden
Long term and Short Term Orientation
Long Term Orientation Short Term Orientation

• Perseverance in • Focus on achieving quick

achieving results. results.
• Traditions is sacrosanct. • Traditions is changing
• Larger savings quote & rapidly with times.
funds available for • Smaller savings quote &
investment. funds available for
investment.
6. Indulgence Vs. Restraint
• Indulgence stands for a society that allows relatively free
gratification of basic and natural human drives related to
enjoying life and having fun.
• Restraint stands for a society that suppresses gratification
of needs and regulates it by means of strict social norms.
Indulgence Vs. Restraint
Indulgence
• More healthier & happier.
• Societies have leisure
ethic.
• Optimistic.
• Extrovert societies.
(Prefer being social)
• Participate actively in
sports.
• Less focus on morals and
discipline.
Restraint
• Less healthier & happier.
• Societies have work ethic.
• Pessimistic.
• Introvert societies. (Prefer
being alone)
• Less active participation
in sports.
• Strict focus on morals and
discipline.
Some Indulgence versus Restraint (IVR) scores

Indulgent Restrained
97 Mexico 48 France
78 Sweden 42 Japan
71 Australia 40 Germany
69 Britain 26 India
68 U.S.A. 24 China
59 Brazil 20 Russia
04 Egypt
Class Group Activity
• Imagine this scenario: Sayid's boss in the US has asked him to
manage a large, global team. In this new role, he'll be working
closely with people from several different countries- Japan,
Sweden, UK and Germany. He's excited about the opportunity
to become a “Global manager” but he's also nervous about
making cross-cultural faux pas.
• He knows that cultural differences can act as a barrier to
communication, and that they could affect his ability to build
connections and motivate people. So, how can he begin to
understand these differences and work effectively with people
from different cultures?
• Give Sayid some guidelines based on Hofstede’s Cultural
Dimensions.
• In a group of 4 people pick any one dimension , explain it to
Sayid and tell him as a manager how or where or in which
context can he apply the dimension to his company’s
advantage.
Class Group Activity
• You may refer the following interesting link to complete
your class activity.

• https://www.mindtools.com/pages/article/newLDR_66.htm
PROJECT GLOBE
What is Project GLOBE?
• GLOBE (Global Leadership and Organizational Behavior
Effectiveness)
• attempt to develop an empirically based theory to describe,
understand, and predict the impact of specific cultural variables on
leadership and organizational processes and the effectiveness of
these processes
• The "Global Leadership and Organizational Behavior
Effectiveness" (GLOBE) Research Program was
conceived in 1991 by Robert J. House of the Wharton
School of Business, University of Pennsylvania
What is Project GLOBE?
• In 2004, its first comprehensive volume on "Culture,
Leadership, and Organizations: The GLOBE Study of 62
Societies" was published, based on results from about
17,300 middle managers from 951 organizations in the
food processing, financial services, and
telecommunications services industries.
• A second major volume, "Culture and Leadership across
the World: The GLOBE Book of In-Depth Studies of 25
Societies" became available in early 2007. It
complements the findings from the first volume with in-
country leadership literature analyses, interview data,
focus group discussions, and formal analyses of printed
media to provide in-depth descriptions of leadership
theory and leader behavior in those 25 cultures.
Cultural Dimensions in GLOBE
• GLOBE's major premise (and finding) is that leader
effectiveness is contextual, that is, it is embedded in the
societal and organizational norms, values, and beliefs of
the people being led.
• As a first step to gauge leader effectiveness across
cultures, GLOBE empirically established nine cultural
dimensions that make it possible to capture the
similarities and/or differences in norms, values, beliefs –
and practices—among societies. They build on findings by
Hofstede (1980), Schwartz (1994), Smith (1995) and
others.
Cultural Dimensions in GLOBE
1. Power Distance: The degree to which members of a collective
expect power to be distributed equally.
2. Uncertainty Avoidance: The extent to which a society,
organization, or group relies on social norms, rules, and procedures
to alleviate unpredictability of future events.
3. Humane Orientation: The degree to which a collective
encourages and rewards individuals for being fair, altruistic,
generous, caring, and kind to others.
4. Collectivism I: (Institutional) The degree to which organizational
and societal institutional practices encourage and reward collective
distribution of resources and collective action.
5. Collectivism II: (In-Group) The degree to which individuals
express pride, loyalty, and cohesiveness in their organizations or
families.
6. Assertiveness: The degree to which individuals are assertive,
confrontational, and aggressive in their relationships with others.
Cultural Dimensions in GLOBE
7. Gender Egalitarianism: The degree to which a collective minimizes
gender inequality.
8. Future Orientation: The extent to which individuals engage in
future-oriented behaviors such as delaying gratification, planning, and
investing in the future.
9. Performance Orientation: The degree to which a collective
encourages and rewards group members for performance improvement
and excellence.
Steps: What did the GLOBE project
actually do?
1. Drew out nine cultural dimensions after studying works
of Hofstede and previous researchers in CCM
2. Then placed 62 countries of the world into country
clusters, similar to those by previous researchers such
as Ronen and Shenkar (1985), Inglehart (1997), and
Schwartz (1999). Cultural similarity is greatest among
societies that constitute a cluster; cultural difference
increases the farther clusters are apart. For example,
the Nordic cluster is most dissimilar from the Eastern
European.
GLOBE project country clusters
GLOBE project country clusters
Steps: What did the GLOBE project
actually do?
3. Next analyzed the responses of the 17,300 middle managers
from these countries against leader characteristics, such as
modest, decisive, autonomous, and trustworthy etc.

4. Then came out with six distinct global leadership dimensions

5. And finally links it all- Much of the analysis in the book is

focused on explaining how the nine cultural dimensions (e.g.,
“performance orientation,” “assertiveness,” etc) as independent
variables relate to the six culturally endorsed leadership theory
dimensions (e.g., “charismatic / value-based,” “team-oriented,”
and four others) as dependent variables across the 10 societal
clusters.
Globe Project- Six Global Leadership
Dimensions
Significance of GLOBE
• GLOBE is the most comprehensive study to date that
empirically researched the relationship between culture and
leader behavior in so many societies, with so many different
quantitative and qualitative measures and methods, and in so
many different organizations.
• It did so by engaging more than 170 collaborators from around
the world who brought to the project an in-depth understanding
of their own culture and its notion and practice of leadership.
• In the words of its principal investigator, Robert J. House, “My
final conclusion is that we are in a position to make a major
contribution to the organizational behavior and leadership
literature. To date more than 90% of the organizational
behavior literature reflects U.S.-based research and theory.
Hopefully GLOBE will be able to liberate organizational
behavior from the U.S. hegemony"
 GLOBE Cultural Variable Results
Variable Highest Medium Lowest
Ranking Ranking Ranking
Assertiveness Spain, U.S. Egypt, Ireland Sweden, New
Zealand
Future orientation Denmark, Canada Slovenia, Egypt Russia, Argentina
Gender differentiation South Korea, Italy, Brazil Sweden Denmark
Egypt
Uncertainty avoidance Austria, Denmark Israel, U.S. Russia, Hungary
Power distance Russia, Spain England, France Demark, Netherlands
Collectivism/Societal Denmark, Hong Kong, U.S. Greece, Hungary
Singapore
In-group collectivism Egypt, China England, France Denmark,
Netherlands
Performance orientation U.S., Taiwan Sweden, Israel Russia, Argentina

Humane orientation Indonesia, Egypt Hong Kong, Germany, Spain

Sweden
Class Activity based on GLOBE
• Take any two country clusters from GLOBE clusters.
• Identify at least five differences in cultures in these two
clusters – people’s choices, gender equality, work culture
etc.
• You may use internet search for your work.
QUIZ 2
HOW WELL DO WE KNOW THE WORLD !
How well do we know the world
• Please take this quiz online :

• https://www.theguardian.com/travel/quiz/2014/oct/03/quiz-
of-the-world-lonely-planet
TROMPENAAR’S CULTURAL
VALUE DIMENSIONS
About the Model
• Fons Trompenaars and Charles Hampden-Turner
published the Seven Dimensions of Culture in their 1998
book, “Riding The Waves of Culture: Understanding
Diversity in Global Business.”
• To develop the model, they spent 10 years researching
the preferences and values of people in various cultures
around the world. As part of this, they surveyed more than
46,000 managers in 40 countries. They found that people
from different cultures vary in specific, even predictable,
ways. This is because each culture has its own way of
thinking, its own values and beliefs, and its own
preferences.
About the Model
• Trompenaars and Hampden-Turner concluded that what
distinguishes people from different cultures is where these
preferences fall on the following seven dimensions:
1. Universalism versus particularism.
2. Individualism versus communitarianism.
3. Specific versus diffuse.
4. Neutral versus emotional.
5. Achievement versus ascription.
6. Sequential time versus synchronous time.
7. Internal direction versus outer direction.
1. Universalism Versus Particularism
(Rules Versus Relationships)
2. Individualism Versus
Communitarianism (the Individual Versus
the Group)
3. Specific Versus Diffuse (How far People
get Involved)
4. Neutral Versus Emotional (How People
Express Emotions)
5. Achievement Versus Ascription (How
People View Status)
6. Sequential Time Versus Synchronous
Time (How People Manage Time)
7. Internal Direction Versus Outer
Direction (How People Relate to Their
Environment)
Reading Material
Plan Doing business in Sweden? ?
• Congratulations! You have chosen one of the Best Country
in the World to do business in. Sweden ranks number one
on the Forbes’ annual list of the Best Countries for
Business. The original home of Volvo, IKEA, Dice,
Ericsson, Spotify, Klarna among others, Sweden boasts a
dynamic business climate which encourages, nurtures and
enables everyone from start ups to large corporations
fulfill their full potential

• https://www.youtube.com/watch?time_continue=157&v=C_pLVr
idwbg&feature=emb_logo
• https://www.youtube.com/watch?v=djFx6j0E9rU
RONEN &SHENKAR’S
COUNTRY CLUSTERS
 Country Clusters & their Underlying
Dimensions
• Ronen & Shenkar suggested the following dimensions as
crucial in setting up country clusters:
1. Geography
2. Language
3. Religion.

• The differentiation of these dimensions is mainly

analytical, because these dimensions are closely
intertwined and certainly are not independent.
It’s been shown that countries tend to group together
geographically because it probably precedes other
variables, such as language and religion.
1. Geography
• Geography: Geography, not terrain or climate but where
countries are located on the world map, is an important
factor in the clustering process and, in fact, countries
generally tend to be grouped together geographically in
multiple research studies and the names of clusters are
typically descriptors of their geographic location (e.g., Far
East, Latin American and Near East).
• Ronen and Shenkar noted one striking exception to the
influence of geography on clustering: the Anglo-American
cluster that typically includes countries from several
continents and serves as a reminder of the strong
influence that colonial heritage and immigration patterns
can have on cultural values.
2. Language
• Language is generally a shared element in country
clusters and this should not be surprising given that
language is a fundamental repository of the meanings and
values that are such an important part of “culture”.
• For example, a common characteristic of Anglo countries
is use of the English language and the same things
applies in most of the other common recognized country
clusters although sometimes the languages vary while
remaining part of a single “linguistic family” (e.g., the
language spoken in the Scandinavian countries are quite
different yet are consistently grouped as a distinguish, yet
separate, branch of the Germanic linguistic family).
3. Religion
• Religion is also thought to be a significant influence on the
clustering process since religion often serves as the
source for various beliefs, practices and norms that
become part of the cultural values of those that either
practice the religion or have otherwise been exposed to
the religion on a regular basis while living within the
country.
• Some country clusters (e.g., Germanic and Nordic) are
generally composed of countries were Protestant religions
dominate while other country clusters tend to prefer
Catholicism and, of course, other religions such as Islam,
Hinduism and Buddhism play a major role in many
countries
4. Work values
• Ronen and Shenkar later also noted that countries have
been shown to cluster around other dimensions including
work values, the subject of their own synthesis of the
research conducted by others, economic development,
the level of technology in a country (i.e., technological
development)
Ronen and Shenkar’s Country
Clusters
• Within each cluster, countries generally have similar
work values, geographic location, language and
religion;
• Similarity of countries and clusters are associated with
economic levels, with countries higher on GNP per
capita located closer to the center;
• There are independent countries not fit into any
cluster, and not similar to each other, but they are
likely more economically and technologically
developed than some of their geographic neighbors.
 Ronen and Shenkar’s Country Clusters
Arab Near Eastern Nordic
Turkey Finland
Bahrain Iran Norway
Germanic
Abu-Dhabi Greece Denmark
United Arab Emirates Austria
Sweden
Kuwait `
Germany
Oman
Switzerland
Saudi Arabia
Malaysia United State
Singapore Australia
Hong Kong
Canada
Far Eastern Argentina
New Zealand Anglo
France
Philippines
Venezuela Belgium United Kingdom
South Vietnam
Chile Ireland
Indonesia
Mexico Latin European South Africa
Taiwan
Thailand Latin American Italy
Peru Spain
Colombia Portugal
Brazil Israel
Japan India
Independent
Class Activity
• Open the world map and check each cluster on the map
for geographic proximity

• Compare Ronen & Shenkar clusters with the Globe

country clusters and draw out the differences.

• How does technological development impact country

clustering?
HONG KONG CROSS
CULTURAL TIES
Hong Kong Protests 2019
• Hong Kong is awash with protest—and facing a
dangerously uncertain future, as Beijing looks to extend
mainland law’s grip on the territory. The region, once a
rare shelter for dissenting voices in China, is seeing
protections for freedom of speech stripped away one by
one. That leaves Britain, once Hong Kong’s colonial
master, with a particular obligation to the Hong Kongers it
has let down in the past.
Protests 2019 Anti-Extradition Bill
Hong Kong Protests
• Video
Global traits: how does Hong Kong
score?
‘10 traits’ of globally fluent cities and city regions:
i. Leadership with a Worldview
ii. Legacy of Global Orientation
iii. Specializations with Global Reach
iv. Adaptability to Global Dynamics
v. Culture of Knowledge and Innovation
vi. Opportunity and Appeal to the World
vii. Universal Connectivity
viii. Ability to Secure Investment for Strategic Priorities
ix. Government as Global Enabler
x. Compelling Global Identity
Global outlook
• Hong Kong today plays five inter-locking global, regional,
metropolitan, and local economic roles that underpin its
global fluency:
i. The leading Asia-Pacific finance and business hub and
decision-making centre for global firms.
ii. The primary business, investment and capital-raising
gateway into and out of China.
iii. The key port and managerial locus for the Pearl River
Delta, and one of the world’s most productive regions for
export-oriented manufacturing.
iv. An entrepreneurial city of agile and opportunist firms
serving Chinese and global markets.
v. An international centre for tourism and higher education.
Mixed cultural identity
• People: The population of Hong Kong is formed by
Cantonese, Shanghainese, British, Indians and Jews.
Cantonese is the majority and Cantonese culture is the
mainstream there. Thus, many Chinese concepts like
'family solidarity', 'family glory', 'saving face' and 'modesty'
carry significant weight in Hong Kong's culture. On the
other hand, many locals adopted western ways of life

• Language: Cantonese is used most widely. Since the

city's reversion to China in 1997, local government has
adopted the 'biliterate and trilingual' policy. That's to say,
Chinese and English are regarded as the official
languages; Cantonese, Chinese mandarin and English
are spoken languages.
Mixed cultural identity
• In the city, people celebrate the Chinese traditional
holidays, such as Chinese Lunar New Year, Ching Ming
Festival (Qing Ming Festival) and Mid-Autumn Festival.
And also they have a holiday on Good Friday, Eastern
Monday, Christmas Day and other western festivals.

• Hong Kong relates culturally more with China ( religion,

language, food) but politically dissents and is influenced
more by democratic freedom of choices.
Mixed Anxieties
• This compels us to think that “form of government” can be
a major game-changer in cultural dimensions.

• How Hong-Kong handles that is for the future to

showcase
KLUCKHOHN & STRODBECK
MODEL
Kluckhohn & Strodbeck model

• Kluckholn and Strodtbeck (1961) identified six dimensions

of culture. As with other cultural models, understand
where people are coming from and then respond in
alignment with their view of the world.
1. The nature of people

• What do people assume about the basic nature and

beliefs about other people? In particular, others may be
considered to be good, bad or have some combination.

• 'Good' here is in the traditional sense of being socially

oriented. A bad person is thus considered selfish.

• How you think about other people in this way will have
significant effect on how you respond to them. It also
affects how you think about yourself.
2. The relationship with nature

• What do people think about nature and their

responsibilities and rights around it?

• Some people believe that we should live in harmony with

nature, preserving and supporting it. Others (and perhaps
a majority now) see nature as our servant and supplier.
This view allows us to plunder it without concern.

• In other parts of life this translates into the use of all kinds
or resource and whether it is used up or sustained.
3. Duty towards others

• What duty do we have towards others? Should we be act

first to support others or can we just focus only on
ourselves?

• Considering the group first supports society, but it also is

limiting on the freedom of the individual. It also raises the
question about who chooses what is right for the group.
4. Mode of activity

• What is the primary mode of activity in an organization or

society?

• In some societies, there is a focus on 'being', where who

you are is more important than what you do. Other
societies are very action oriented and status comes from
what has been achieved rather than an ascribed status.
5. Privacy of space

• How is space treated in a society? Who owns it? What

rights do people have to occupy it?

• One approach is that space is owned by individuals and

privacy is important. Meetings are held behind closed
doors and are by invitation only. The alternative is open
ownership, where people can go where they please and
meetings are open to all who want to attend.
6. Temporal orientation

• Which is more important: past, present or future?

• Some societies focus on the past, ancestors and

traditionalism. Others are focused on the hedonism of
today, whilst still others plan carefully for the future.
Kluckhohn and Strodtbeck's Cultural
Dimensions
SCHWARTZ’S
FRAMEWORK
Schwartz’s Framework
• Shalom Schwartz, an Israeli sociologist, identifies seven
cultural values in three pairs.
• Schwartz’s study was very extensive and he collected
data of over ten years from over 60,000 people in 63
countries including every continent.
1. Embeddedness vs. Autonomy
Embeddedness ( Social Order, Obedience and respect for tradition)
• This is a focus on sustaining the social order, of avoiding change and retaining tradition. It is
significant where people are living or working closely with others and where conformance
with group norms is important. Embeddedness cultures value tradition, security, obedience.

Autonomy ( Pleasure, exciting life)

• The price and opposite of embeddedness is autonomy, where individuals have control over
their choices as opposed to having to consider others and shared rules
• Autonomy is divided into two types: affective and intellectual.

• Affective Autonomy is the independent pursuit of pleasure, seeking enjoyment by any

means without censure. In many societies there are limits when affective autonomy leads to
taking banned substances or acting in ways that distresses or harms others.

• Intellectual Autonomy is the independent pursuit of ideas and thought, whether it is

theoretical, political or whatever. In embeddedness cultures it is hard to police what people
are thinking, though actions can be taken to monitor intellectual publishing and discussions.
2. Mastery vs. Harmony

Mastery ( ambition, drive)

• In a mastery culture, individuals seek success through
personal action. This may benefit the person and/or the
groups to which they belong, sometimes at the expense
of others. Mastery needs independence, courage,
ambition, drive and competence.

Harmony ( unity with nature, world at peace)

• In a harmony culture, rather than seek self-improvement,
people are happy to accept their place in the world.
People here put greater emphasis on the group than on
the individual.
3. Hierarchy vs. Egalitarianism

Hierarchy ( authority)
• In hierarchical cultures, there is a clear social order, with
some people in superior positions while others are in
inferior positions. People here accept their position in the
hierarchy and are expected to be modest and have due
self-control.

Egalitarianism ( social justice, equality)

• In the egalitarian culture, everyone is considered to be
equal and everyone is expected to show concern for
everyone else.
Co-plot map of countries on seven cultural
orientations
Class Activity
• Scandinavian countries or more popular today as Nordic
countries are continuously ranking high on
“Egalitarianism” as a cultural dimension.

• Do a secondary research and bring out at least five

distinct workplace/management practices today in these
countries which prove the above point.
• Scandinavia and the Nordic region will include the
following countries:
Denmark, Norway, Sweden, Finland, Iceland.
Japanese Culture- Country Profile
• https://www.youtube.com/watch?v=-pgCPJSiKoo
HALL’S FRAMEWORK
Edward Hall Model
• Edward Hall is one of the founding fathers of intercultural
communication.
• Edward Hall’s “ silent language” is the language of non
verbal intercultural communication. The different silent
languages he identified are:
1. The language of time
2. The language of space
3. The language of things
4. The language of friendship
5. The language of agreements
6. High context and low-context cultures ( one of Hall’s
most famous work)
Language of Time
Monochronic time
• M-Time, as he called it, means doing one thing at a time. It assumes
careful planning and scheduling and is a familiar Western approach
that appears in disciplines such as 'time management'.

Polychronic time
• In Polychronic cultures, human interaction is valued over time and
material things, leading to a lesser concern for 'getting things done' --
they do get done, but more in their own time.

• Western cultures vary in their focus on monochronic or polychronic

time. Americans are strongly monochronic whilst the French have a
much greater polychronic tendency -- thus a French person may turn
up to a meeting late and think nothing of it (much to the annoyance of
a German or American co-worker).
Language of Space
• Hall was concerned about space and our relationships within it. He called
the study of such space Proxemics.

• We have concerns about space in many situations, from personal body

space to space in the office, parking space, space at home.

• The need for space: Some people need more space in all areas. People
who encroach into that space are seen as a threat.

• Personal space is an example of a mobile form of territory and people

need less or greater distances between them and others. A Japanese
person who needs less space thus will stand closer to an American,
inadvertently making the American uncomfortable.

• Some people need bigger homes, bigger cars, bigger offices and so on.
This may be driven by cultural factors, for example the space in America
needs to greater use of space, whilst Japanese need less space (partly
as a result of limited useful space in Japan).
Language of Space
• High territoriality
• Some people are more territorial than others with greater concern for
ownership. They seek to mark out the areas which are theirs and
perhaps having boundary wars with neighbors. This happens right
down to desk-level, where co-workers may do battle over a piece of
paper which overlaps from one person's area to another.

• Territoriality also extends to anything that is 'mine' and ownership

concerns extend to material things. Security thus becomes a subject
of great concern for people with a high need for ownership.

• Low territoriality
• People with lower territoriality have less ownership of space and
boundaries are less important to them. They will share territory and
ownership with little thought. They also have less concern for material
ownership
Language of Things
• The language of things refers to the emphasis on
possession of material things in a culture.
• USA – liking for gadgets and material possessions
• Japanese- not driven by materialism
Language of Friendship
• Refers to pattern of making friends. Friendships and
relationships are responded with different emotional
intensities in every culture

• Americans make friends easily but also let go of

friendships easily
• In many Asian countries, friendships are not broken easily
and involves many more obligations
Language of Agreement
• Every nation has its preference for the way it makes
agreements
• USA- written contracts are a must for any business deal
and treat it as binding. Even the smallest details matter
• India: written contracts matter but sometimes smaller
dealings are done just on verbal agreements and your
“word” is enough to carry forward the task at hand
High context vs Low Context
• Anthropologist Edward T. Hall first discussed high-context
culture in his 1976 book titled Beyond Culture.

• High-context cultures are those in which the rules of

communication are primarily transmitted through the use of
contextual elements (i.e., body language, a person's status,
and tone of voice) and are not explicitly stated. This is in direct
contrast to low-context cultures, in which information is
communicated primarily through language and rules are
explicitly spelled out.
• In High Context: communication is IMPLICIT. Emphasis is
placed on the interpretation of the context than on the words-
many things are left unsaid and the receiver of the message is
supposed to interpret the words in the context of usage
Characteristics of High context cultures
Some common characteristics of high-context cultures
include:
• Primarily use non-verbal methods to relay meaningful
information in conversations, such as facial expressions,
eye movement, and tone of voice.
• The situation, people, and non-verbal elements are more
important than the actual words that are communicated.
• Members of the culture place emphasis on interpersonal
relationships.
• Trust must be established before business transaction
• https://www.coursera.org/lecture/intercultural/style-of-
language-high-context-vs-low-context-kMJHy
While dealing with High context
• When dealing with a High context culture ( Asians) listen
to what is “ meant” instead of what is “said”.

• Be more receptive to their body language

Characteristics of Low context cultures

• In a low-context culture, very little is taken for granted.

This means that more explanation is needed and given.
• Rule oriented, people play by external rules
• More knowledge is codified, public, external, and
accessible.
• Task-centered. Decisions and activities focus around what
needs to be done, division of responsibilities.

• American culture is low-context and so contracts tend to

be longer in order to explain the detail.
• https://bosslogic.com/2014/03/03/low-context-
communication/
High and Low Context cultures
High and Low Context cultures
High and Low Context cultures

High Context Low Context

Indirect and implicit messages Direct, simple and clear messages

Polycrhonic Monochronic

High use of non-verbal communication Low use of non-verbal communication

Low reliance on written communication High reliance on written communication

Use intuition and feelings to make

Rely on facts and evidence for decisions
decisions
TRIANDIS CULTURAL
DIMENSIONS
Individualism vs Collectivism
The dimension interacts with individualism and collectivism
in interesting ways resulting the following:-
• Horizontal individualism
• Vertical individualism ( US, UK)
• Horizontal collectivism
• Vertical collectivism

• Triandis suggests that some societies are horizontal

(valuing equality) whereas others are vertical
(emphasizing hierarchy). This distinction resembles the
power distance continuum of Hofstede
Individualism vs Collectivism
• In vertical, individualist societies or cultural contexts (VI;
e.g., United States, Great Britain, France), people tend to
be concerned with improving their individual status and
standing out—distinguishing themselves from others via
competition, achievement, and power.
• In contrast, in horizontal, individualist societies or cultural
contexts (HI; e.g., Sweden, Denmark, Norway, Australia),
people prefer to view themselves as equal to others in
status. Rather than standing out, the focus is on
expressing one’s uniqueness and establishing one’s
capability to be successfully self-reliant
Individualism vs Collectivism
• In vertical, collectivist societies or cultural contexts ( e.g.,
Korea, Japan, India), people focus on complying with
authorities and on enhancing the cohesion and status of
their in-groups, even when that entails sacrificing their
own personal goals.

• In horizontal collectivist societies or cultural contexts (

Israel ), the focus is on sociability and interdependence
with others within an egalitarian framework
CULTURAL PROFILES OF
DIFFERENT COUNTRIES

Ongoing throughout semester in class discussions,

case studies and in group presentations
Australia
• https://www.worldbusinessculture.com/country-
profiles/australia/culture/
CULTURE AND MANAGEMENT
STYLES AROUND THE
WORLD
Culture and management styles around
the world
• Differences exist in management styles across different
cultures
• The various dimensions/parameters in which differences
are prominently noted across the globe are described in
the subsequent slides.
Cultural values affect management styles
 Management Styles Around the World

• Cross-cultural differences influence management styles in the

following areas:

1. Authority and Decision Making

2. Management Objectives and
Aspirations
3. Communication Styles
4. Formality and Tempo/Speed
5. P-Time versus M-Time
6. Negotiations Emphasis
 Differences in Management Styles
Around the World

1. Differences in Authority and Decision Making

• In high-PDI countries ( Arab nations) subordinates are not likely to
contradict bosses, but in low-PDI countries( Denmark, NZ, Sweden, Ireland)
they often do
Three typical patterns exist:
• top-level management decisions,
• decentralized decisions, and
• committee or group decisions

2. Differences in Management Objectives and Aspirations towards:

• Security especially of lifetime employment
• Affiliation and Social Acceptance by neighbors and fellow
workers
• Power and Achievement Orientation sought by managers
• Importance of personal/family life over work and profit
 Differences in Management Styles
Around the World

3. Differences in Communication Styles

• According to Edward T. Hall, the symbolic meanings of time,

space, things, friendships, and agreements, vary across cultures
• “In some cultures, messages are explicit; the words carry most of
the information. In other cultures ... less information is contained
in the verbal part of the message since more is in the context”
• Communication in a high-context culture depends heavily on the
contextual (who says it, when it is said, how it is said) or
nonverbal aspects of communication
• Communication in a low-context culture depends more on
explicit, verbally expressed communications
• Hall places eleven cultures along a high-context/low-context
continuum
Contextual Background of Various
Countries

Japanese High
Context
Arabian
Implicit
Latin American

Spanish
Italian

English (UK)
French
North American (US)
Scandinavian
German
Low Swiss
Context
Explicit
 Differences in Management Styles
Around the World

4. Differences in Communication Styles

• Level of formality in addressing business clients by first name

• Level of formality in addressing your boss by first name
• Tempo or speed in getting “down to business”
• Perception of time varies in many cultures

5. Differences in Negotiations Emphasis

• Differences with respect to the product, its price and terms,

services associated with the product, and finally, friendship
between vendors and customers
 Differences in Management Styles
Around the World

6. P-Time versus M-Time

• M-time, or monochronic time, typifies most North Americans,

Swiss, Germans, and Scandinavians
• Most low-context cultures operate on M-time concentrating on
one thing at a time
• P-time, or polychronic time, is more dominant in high-context
cultures
• P-time is characterized by multi-tasking and by “a great
involvement with people”
Class Activity
• Does the work culture at Indian IT sector differ from other
sectors and industries.

• Discuss and analyze the ways in which US work-culture

has affected Indian IT sector .
 The Impact of American Culture

• Ways in which U.S. culture has influenced management style

include, but are not limited to, the following:

1. Independent enterprise as the instrument of

social action
2. Personnel selection and reward based on
merit
3. Decisions based on objective analysis
4. Wide sharing in decision making
5. Never-ending quest for improvement
6. Competition yielding efficiency
 Gender Bias in International Business

• The gender bias against women managers exists in some

countries

• Women are not accepted in upper level

management roles in Asian, Middle Eastern,
and Latin American

• Gender bias poses significant challenges in cross-cultural

negotiations
 Business Ethics

Business ethics is complex in the international marketplace because value

judgments differ widely among culturally diverse groups

Corruption varyingly defined from culture to culture

Existence of different levels of corruption, bribery, and fraud

The Foreign Corrupt Practices Act 1997: Imprisonment for

bribery

Bribery creates a major conflict between ethics and profitability

 Ethical and Socially Responsible Decisions

• Areas of decision making where ethical issues arise:

1. employment practices and policies,

2. consumer protection,
3. environmental protection,
4. political payments and involvement
in political affairs of the country,
and
5. basic human rights and fundamental
freedoms
 Three Ethical Principles

Principle Question
5-8
Utilitarian Ethics Does the action optimize the
"common good" or benefits of all
constituencies?
Rights of the Parties Does the action respect the rights
of the individuals involved?
Justice or Fairness Does the action respect the
canons of justice or fairness to all
parties involved?

Irwin/McGraw-Hill
 A Decision Tree for Incorporating Ethical and Social
Responsibility Issues into Multinational Business Decisions

Does the decision efficiently optimize the NO

YES
common good or benefits of:
Are there critical factors that
The Business firm? Society YES
justify suboptimizing these
Stockholders Culture goals and satisfactions?
Management Order NO
5-9 Profits Justice Does the decision NO Reject
Growth “The good life” respect the rights of decision
Other Other individuals involved.

The Economy? The Individual? Are there critical

YES YES factors that justify the
Economic growth Freedom
abrogation of a right.
Allocation of resources Health and welfare
Production and Self-realization Does the corporate NO
decision respect the
distribution of goods Human dignity canons of justice or Reject
and services Opportunity NO decision
fairness to all parties
Other Other involved?
Are there critical factors
YES YES that justify the violation
of a canon of justice?
NO
Accept Reject
decision decision

Irwin/McGraw-Hill