International Management

International Ninth Edition Luthans | Doh

Fred Luthans

Management Jonathan P. Doh

Ninth Edition

Chapter 4

The Meanings and Dimensions

of Culture
International Management Ninth Edition Luthans | Doh

The Meanings and Dimensions

of Culture
• The specific objectives of this chapter are to
1. DEFINE the term culture, and discuss some of the
comparative ways of differentiating cultures.
2. DESCRIBE the concept of cultural values, and relate
some of the international differences, similarities,
and changes occurring in terms of both work and
managerial values.
3. IDENTIFY the major dimensions of culture relevant
to work settings, and discuss their effects on
behavior in an international environment.
International Management Ninth Edition Luthans | Doh

Definitions of Culture
Culture is a system of “values and norms” that are shared
among a group of people and that when taken together
constitute a design for living
Culture is the sum of the “values, rituals, symbols, beliefs,
and thought processes that are learned, shared by a group of
people, and transmitted from generation to generation”
“material and spiritual values”
“An invisible barrier… a completely different way of
organizing life, of thinking, and of conceiving the underlying
assumptions about the family and the state, the economic
system, and even Man himself”
International Management Ninth Edition Luthans | Doh

Values in Culture
• Values
– Basic convictions that people have about
• Right and wrong
• Good and bad
• Important and unimportant
– Learned from culture in which the individual is
reared
– Differences in cultural values may result in varying
management practices.
International Management Ninth Edition Luthans | Doh

The Dynamics of Culture as a Multi-

level, Multi-layer Construct
International Management Ninth Edition Luthans | Doh

The Nature of Culture

• Characteristics of culture
– Learned
– Shared
– Transgenerational
– Symbolic
– Patterned
– Adaptive
International Management Ninth Edition Luthans | Doh

Priorities of Cultural Values

United States, Japan, and Arab Countries
International Management Ninth Edition Luthans | Doh

Comparing Cultures as Overlapping

Normal Distributions
International Management Ninth Edition Luthans | Doh

Stereotyping from the Cultural

Extremes
International Management Ninth Edition Luthans | Doh

Origins of Culture Family

Behaviors

Religious School
Value &
Systems Education
Social
Institutions

Government
Media
Policies

Corporations

4-14
International Management Ninth Edition Luthans | Doh

Origins of Culture: Social Institutions

1. Family behavior varies across the world,
2. Religious value systems differ across the
world,
3. School and education, and literacy rates
affect culture and economic growth
International Management Ninth Edition Luthans | Doh

Origins of Culture: Social Institutions

4. Media (magazines, TV, the Internet)
influences culture and behavior
5. Government policies influence the thinking
and behaviors citizens of adult citizens, e.g.,
the French government offers new “birth
bonuses” of $800 given to women as an
incentive to increase family size
6. Corporations influence culture via the
products they market, e.g., MTV
International Management Ninth Edition Luthans | Doh

Cultural
Values

Thought
Rituals
Processes
Elements
of
Culture

Beliefs Symbols

4-17
International Management Ninth Edition Luthans | Doh

Rituals and Symbols

• Rituals are patterns of behavior and
interaction that are learned and repeated vary
from country to country
International Management Ninth Edition Luthans | Doh

Rituals and Symbols

• Language as Symbols: the “languages” of time,
space, things, friendships, and agreements
• Differences in language vocabulary varies widely,
even English is different in different countries
• In Taiwan, “Come alive with Pepsi” frightened
consumers as it literally meant “Pepsi will bring
your ancestors back from the grave.”
• Aesthetics as Symbols
– The sense of what is beautiful and what is not
beautiful
– Visual, style (eg. Meaning of color)
International Management Ninth Edition Luthans | Doh

Beliefs
• Beliefs, which mainly stem from religious
training, vary from culture to culture
– The western aversion to the number 13 or
refusing to walk under a ladder
– The Chinese practice of Feng Shui in designing
buildings
International Management Ninth Edition Luthans | Doh

Thought Processes
• Thought processes also vary across cultures
– “Asian and Western” thinking
– Other examples?
International Management Ninth Edition Luthans | Doh

Cultural Values
• Hofstede, who studied over 110,000 people
in more than 70 countries, found that the
cultures differed along six primary
dimensions
1. Power distance
2. Individualism versus collectivism
3. Uncertainty avoidance
4. Masculinity versus femininity
5. Long-term versus short-term orientation
6. Indulgence versus restraint
International Management Ninth Edition Luthans | Doh

Hofstede’s Cultural Dimensions

• Power Distance
– The extent to which less powerful members
accept that power is distributed unequally
• High power distance countries: people blindly obey
superiors; centralized, tall organizational structures
(Mexico, South Korea, India)
• Low power distance countries: flatter, decentralized
organizational structures, smaller ratio of supervisor to
employee (Austria, Finland, Ireland)
International Management Ninth Edition Luthans | Doh

Hofstede’s Cultural Dimensions

• Uncertainty Avoidance
– The extent to which people feel threatened by
ambiguous situations; create beliefs/institutions to try
to avoid such situations
• High uncertainty avoidance countries: high need for security,
strong belief in experts and their knowledge; structure
organizational activities, more written rules, less managerial
risk taking (Germany, Japan, Spain)
• Low uncertainty avoidance countries: people more willing
to accept risks related to unknown, less structured
organizational activities, fewer written rules, more
managerial risk taking, higher labor turnover, more
ambitious employees (Denmark and Great Britain)
International Management Ninth Edition Luthans | Doh

Hofstede’s Cultural Dimensions

• Individualism
– The extent to which people look after themselves and
immediate family only
• Collectivism
– The tendency of people to belong to groups and to
look after each other in exchange for loyalty
• High individualism countries: wealthier, Protestant work
ethic, greater individual initiative, promotions based on
market value (U.S., Canada, Sweden)
• High collectivism countries: poorer, less support of
Protestant work ethic, less individual initiative, promotions
based on seniority (Indonesia, Pakistan, China, Mexico)
International Management Ninth Edition Luthans | Doh

Hofstede’s Cultural Dimensions

• Masculinity
– A cultural characteristic in which the dominant social
values are success, money, and things
• Femininity
– A cultural characteristic in which the dominant social
values are caring for others and quality of life
• High masculine countries: stress earnings, recognition,
advancement, challenge, wealth; high job stress (Germanic
countries)
• High feminine countries: cooperation, friendly atmosphere,
employment security, group decision making; low job stress
(Norway)
International Management Ninth Edition Luthans | Doh

Hofstede’s Cultural Dimensions

• Time Orientation (1988)
– A cultural characteristic dealing with society’s
search for virtue
• Long-term oriented societies: focus on the future, able
to adapt traditions when conditions change, tend to
save and invest, focus on achieving long-term results
(Asian countries)
• Short-term oriented cultures: focus on quick results,
do not tend to save, service to others, belief in
absolutes, value stability and leisure (U.S., UK, Spain)
International Management Ninth Edition Luthans | Doh

Hofstede’s Cultural Dimensions

• Indulgence vs. Restraint (2010)
– Indulgent: trait related to relative happiness based on
instant gratification
– Restraint: a cultural characteristic based on regulating
and controlling behavior according to social norms
• Indulgent societies: perceived happiness, life in control,
positive emotions, basic needs satisfied (U.S., UK, Australia,
Chile)
• Restrained societies: less happiness, sense of helplessness,
less likely to remember positive emotions, basic needs not
always met (Asia countries, Russia, India, China, Egypt,
Romania)
 Hofstede’s Cultural Dimensions
Hofstede’s work has been criticized
✓ Assumes a one-to-one relationship between
culture and nation-state
✓ Research may be culturally bound
✓ Informants only worked within a single industry –
computers – and within one company – IBM.
✓ Certain social classes excluded from research
✓ Culture is not static
International Management Ninth Edition Luthans | Doh

Integrating Culture and Management:

The GLOBE Project
• GLOBE: Global Leadership and Organizational Behavior
Effectiveness
– Project extends and integrates previous analyses of cultural
attributes and variables
– Evaluates nine different cultural attributes using middle
managers from 951 organizations in 62 countries
• First two phases: middle management
– Multi-cultural team of 170 scholars from around the world
worked together to survey 17,000 managers in 3 industries:
financial services, food processing, and telecommunications
– Covered every major geographic region of the world
• Third phase: upper-level management
– Team of 40 researchers from 24 countries surveyed 5,000
reports from 1,000 CEOs
International Management Ninth Edition Luthans | Doh

The GLOBE Project

• The Nine Dimensions of the GLOBE Project
1. Uncertainty avoidance
2. Power distance
3. Collectivism I: Societal collectivism
4. Collectivism II: In-group collectivism
5. Gender egalitarianism
6. Assertiveness
7. Future orientation
8. Performance orientation
9. Humane orientation
International Management Ninth Edition Luthans | Doh

GLOBE Country Analysis

• The results of the GLOBE project
– Correspond generally with those of Hofstede and
Trompenaars
– Different from Hofstede in that many more
researchers with varied perspectives were involved
(vs. Hofstede working alone); studied many
companies (vs. Hofstede studied one company)
• GLOBE provides a current comprehensive
overview of general stereotypes that can be
further analyzed for greater insight
International Management Ninth Edition Luthans | Doh

GLOBE Cultural Variable Results

International Management Ninth Edition Luthans | Doh

Figure 4-10: Comparing the Cultural Dimension Research:

Hofstede and the GLOBE Project
International Management Ninth Edition Luthans | Doh

Trompenaars’s Cultural Dimensions

• Universalism vs. Particularism 普遍性與特殊性
– Universalism: belief that ideas/practices can be
applied everywhere
• High universalism countries: formal rules, close
adherence to business contracts (U.S., UK, Germany,
Sweden, Australia)
– Particularism: belief that circumstances dictate
how ideas/practices apply
• High particularism countries: legal contracts often
modified, the way deals executed change as people get
to know each other (China, Indonesia, Venezuela)
International Management Ninth Edition Luthans | Doh

Trompenaars’s Cultural Dimensions

• Individualism vs. Communitarianism 個體與集體
– Individualism: people regard themselves as
individuals
• Countries with high individualism: stress personal and
individual matters; assume great personal responsibility
(U.S., UK, Argentina, Mexico, Thailand)
– Communitarianism: people regard themselves as
part of a group
• Value group-related issues; committee decisions; joint
responsibility (Malaysia, Korea)
International Management Ninth Edition Luthans | Doh

Trompenaars’s Cultural Dimensions

• Neutral vs. Emotional 中立與情感
– Neutral: culture in which emotions are held in
check
• High neutral countries: people act stoically and
maintain composure (Japan and UK)
– Emotional: emotions are expressed openly and
naturally
• High emotion cultures: people smile a lot, talk loudly,
greet each other with enthusiasm (Mexico, Netherlands,
Switzerland)
International Management Ninth Edition Luthans | Doh

Trompenaars’s Cultural Dimensions

• Specific vs. Diffuse 特指與泛指
– Specific: large public space shared with others and
small private space guarded closely
• High specific cultures: people open and extroverted,
strong separation of work and personal life (Austria, UK,
U.S., Switzerland)
– Diffuse: public and private spaces have similar size,
public space guarded because shared with private
space
• Diffuse cultures: people indirect and introverted,
work/private life closely linked (Venezuela, China, Spain)
International Management Ninth Edition Luthans | Doh

Trompenaars’s Cultural Dimensions

• Achievement vs. Ascription 成功與歸屬
– Achievement culture: people accorded status
based on how well they perform functions
• High status to high achievers (Austria, Switzerland, U.S.,
UK)
– Ascription culture: status based on who or what a
person is
• Status based on age, gender, social connections
(Venezuela, China, Indonesia)
International Management Ninth Edition Luthans | Doh

Trompenaars’s Cultural Dimensions

• Time 過去、現在與將來
– Sequential: only one activity at a time, appointments
kept strictly, follow plans as laid out (U.S.)
– Synchronous: multitask, appointments are
approximate and easily changed, schedules
subordinate to relationships (France, Mexico)
– Past/Present vs. Future:
• Future more important (Italy, U.S., Germany)
• Past/Present more important (Venezuela, Indonesia, Spain)
• All 3 time periods equally important (France, Belgium)
International Management Ninth Edition Luthans | Doh

Trompenaars’s Cultural Dimensions

• The Environment 內向型與外向型

– Inner-directed: people believe in controlling

outcomes
• Dominant (sometimes aggressive) attitude toward
environment (U.S., Switzerland, Australia)
– Outer-directed: people believe in letting things
take their course
• “Go with the flow,” flexible attitude, willingness to
compromise and maintain harmony (China, many other
Asian countries)
International Management Ninth Edition Luthans | Doh

Cultural Diversity
How Culture Affects Managerial Approaches

• Centralized vs. Decentralized Decision Making

– Centralized: In some societies, top managers make
all important organizational decisions.
– Decentralized: In others, these decisions are
diffused throughout the enterprise, and middle-
and lower-level managers actively participate in,
and make, key decisions.
International Management Ninth Edition Luthans | Doh

Cultural Diversity
How Culture Affects Managerial Approaches

• Safety vs. Risk

– Safety: In some societies, organizational decision
makers are risk-averse and have great difficulty
with conditions of uncertainty.
– Risk: In others, risk taking is encouraged, and
decision making under uncertainty is common.
International Management Ninth Edition Luthans | Doh

Cultural Diversity
How Culture Affects Managerial Approaches

• Individual vs. Group Rewards

– Individual: In some countries, personnel who do
outstanding work are given individual rewards in
the form of bonuses and commissions.
– Group rewards: In others, cultural norms require
group rewards, and individual rewards are
frowned upon.
International Management Ninth Edition Luthans | Doh

Cultural Diversity
How Culture Affects Managerial Approaches

• Informal vs. Formal Procedures

– Informal: In some societies, much is accomplished
through informal means.
– Formal: In others, formal procedures are set forth
and followed rigidly.
International Management Ninth Edition Luthans | Doh

Cultural Diversity
How Culture Affects Managerial Approaches

• High vs. Low Organizational Loyalty

– High: In some societies, people identify very
strongly with their organization or employer.
– Low: In others, people identify with their
occupational group, such as engineer or mechanic.
International Management Ninth Edition Luthans | Doh

Cultural Diversity
How Culture Affects Managerial Approaches

• Cooperation vs. Competition

– Cooperation: Some societies encourage
cooperation between their people.
– Competition: Others encourage competition
between their people.
International Management Ninth Edition Luthans | Doh

Cultural Diversity
How Culture Affects Managerial Approaches

• Short-term vs. Long-term Horizons

– Short-term: Some cultures focus most heavily on
short-term horizons, such as short-range goals of
profit and efficiency.
– Long-term: Others are more interested in long-
range goals, such as market share and
technological developments.
International Management Ninth Edition Luthans | Doh

Cultural Diversity
How Culture Affects Managerial Approaches

• Stability vs. Innovation

– Stability: The culture of some countries
encourages stability and resistance to change.
– Innovation: The culture of others puts high value
on innovation and change.
International Management Ninth Edition Luthans | Doh

Review and Discuss

1. What is meant by the term culture? In what way
can measuring attitudes about the following
help differentiate between cultures: centralized
or decentralized decision making, safety or risk,
individual or group rewards, high or low
organizational loyalty, cooperation or
competition? Use these attitudes to compare
the United States, Germany, and Japan. Based
on your comparisons, what conclusions can you
draw regarding the impact of culture on
behavior?
International Management Ninth Edition Luthans | Doh

Review and Discuss

2. What is meant by the term value? Are
cultural values the same worldwide, or are
there marked differences? Are these values
changing over time, or are they fairly
constant? How does your answer relate to
the role of values in a culture?
International Management Ninth Edition Luthans | Doh

Review and Discuss

3. What are the four major dimensions of culture
studied by Geert Hofstede? Identify and describe
each. What is the cultural profile of the United States?
Of Asian countries? Of Latin American countries? Of
Latin European countries? Based on your comparisons
of these four profiles, what conclusions can you draw
regarding cultural challenges facing individuals in one
group when they interact with individuals in one of
the other groups? Why do you think Hofstede added
the fifth dimension of time orientation and the sixth
dimension related to indulgence versus restraint?
International Management Ninth Edition Luthans | Doh

Review and Discuss

4. As people engage in more international travel and
become more familiar with other countries, will
cultural differences decline as a roadblock to
international understanding, or will they continue to
be a major barrier? Defend your answer.
5. What are the characteristics of each of the following
pairs of cultural characteristics derived from
Trompenaars’s research: universalism vs.
particularism, neutral vs. emotional, specific vs.
diffuse, achievement vs. ascription? Compare and
contrast each pair.
International Management Ninth Edition Luthans | Doh

Review and Discuss

6. How did project GLOBE build on and extend
Hofstede’s analysis? What unique
contributions are associated with project
GLOBE?
7. In what way is time a cultural factor? In what
way is the need to control the environment a
cultural factor? Give an example for each.