Cultural Differences in the Context of IB

Practice

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2. Cultural environments
Learning objectives
• Explore the dynamics of cultures, subcultures, and
multiculturalism
• Learn how to use cultural models to better understand
cultural differences—and similarities
• Recognize and work to reduce cultural stereotypes
• Explore the challenges and opportunities of cultural
diversity and multiculturalism

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2. Cultural environments
 Stage 2: Learning model for developing global
managers

Stage 1. Understand the global business environment and

the challenges facing global managers

Stage 2. Understand the cultural, organizational, and

managerial contexts in which global managers operate

Stage 3. Develop multicultural competence and global

management skills

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2. Cultural environments
 Stage 2: Cultural, organizational, and managerial
environments

Organiza-
Cultural tional
environment environment
(beliefs, (stakeholders,
values, and strategies,
worldviews) and
structures)

Situational contingencies
(personalities, location,
historical sensitivities,
timelines, crises)

Management
environment
(work, management,
and motivation)

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2. Cultural environments
What is culture?

Collective Collective
mental memory
programming
A toolkit of
symbols, stories,
rituals, and
worldviews
Beliefs, values, Shared motives,
behaviors, values, beliefs,
customs, and identities, and
attitudes interpretations

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2. Cultural environments
Characteristics of culture
• Culture is shared by members of a group, and, indeed,
sometimes defines the membership of the group itself.
• Culture is learned through membership in a group or
community.
• Culture influences the attitudes and behaviors of group
members (normative behavior).

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2. Cultural environments
Normative beliefs, institutional requirements, and
social control (Exhibit 2.1)
Normative beliefs and
values
Beliefs, norms, and values
that society deems to be
correct and proper

Reinforcement of
normative beliefs and Institutional requirements
values Laws, regulations, and public
'Correct' outcomes reinforce policies aimed at reinforcing
continuity of normative beliefs societal norms and values
and values

Social control, stability, and

continuity
'Correct' social behavior
results that is consistent with
societal needs and goals

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2. Cultural environments
Cultures and subcultures (Exhibit 2.2)
Organiza-
tional
cultures

Religious Profession-
cultures al cultures

Cultures
and
subcultures

Family Ethnic
cultures minorities

Political
coalitions

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2. Cultural environments
Emic vs. etic perspectives
An emic perspective tries to understand how people see
their own culture and how they view the world.
Example: We are egalitarian.
An etic perspective focuses on how outsiders describe
these same cultures.
Example: They are hierarchical.

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2. Cultural environments
Emic and etic patterns of Latin America (Exhibit 2.3)
Emic patterns (inside view) Etic patterns (outside view) Communication patterns
Interpersonal orientation: High power distance between Politeness important
Respect supervisors and employees Highly networked
Dignity Highly differentiated gender High value on music and art
Loyalty roles (machismo) Context of communication
Simpatia Family centered important
Behavioral patterns: Collectivistic over Compared to US patterns:
Cooperation over individualistic Speak louder and more
competition Shame over guilt frequently
Avoidance of criticism and Focus on present, not future Little direct eye contact
negative behaviors Multitasking over sequential Use of gestures
Reliance on interpersonal tasks Stand closer
connections (palanca) Mastery of nature Touch others more often
Personalistic attention Expressiveness over stoicism
Avoidance of uncertainty
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2. Cultural environments
Popular models of national cultures
Edward Hall
Geert Hofstede
Fons Trompenaars
GLOBE Project

Question: What can we learn from each?

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2. Cultural environments
Edward Hall cultural dimensions – Special focus on
interpersonal communication

• Context: How important is the context of a message

compared to is content?
• Space: How do people share (or not share) space?
• Time: How do people use time?

Question: What can we learn from this about managing

people?
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2. Cultural environments
Geert Hofstede cultural dimensions
• Power distance: How is power distributed?
• Uncertainty avoidance: How do people handle uncertainty?
• Individualism-collectivism: How important is the individual vs. the
group in groups and society?
• Masculinity-femininity: How assertive or passive should people
be?
• Time orientation: Do people take a long-term or short term
approach to life?
• Indulgence-restraint: Is enjoyment or social control more
important?

Question: What can we learn from this about managing people?

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2. Cultural environments
 Fons Trompenaars cultural dimensions
• Universalism-particularism: Should rules be applied universally?
• Individualism-collectivism: Are groups more important than individuals?
• Specific-diffuse: Are social roles compartmentalized?
• Neutral-affective: Can people express their emotions?
• Achievement-ascription: How are people accorded respect?
• Time perspective: Do people focus on past or future?
• Relationship with environment: Do people seek to control the
environment?

Question: What can we learn from this about managing people?

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2. Cultural environments
Caveats about using cultural values
The debate over whether or how much culture influences action
obscures a crucial insight: culture’s influence varies by context.
For many managers, context, not culture, represents their
biggest challenge in succeeding in global transactions.
Managers are encouraged to:
• Approach learning another culture like a scientist who holds
conscious stereotypes and hypotheses in order to test them.
• Seek out cultural mentors and people who can explain why
people behave as they do.
• Learn how to act appropriately by adopting the cultural scripts
that locals use in different contexts.
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2. Cultural environments
Challenges of biculturalism and multiculturalism
• There is often more than one culture involved in an
interaction, and it is not always clear how each one plays
out or is dominant in a particular situation.
• People often behave differently in cross-cultural situations
than they do in intra-cultural situations.
• Cultures are fragmented, and even within a particular
cultural environment different behaviors can be often
observed in different subgroups.

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2. Cultural environments
Manager’s notebook: Working across cultures (Exhibit 2.4)
1. Avoid cultural
stereotyping
• Cultural descriptions contain
only limited information.
• Cultures are neither good
nor bad, just different.
• Be as objective as possible
in describing other cultures.
• Cultural descriptions should
be considered a first guess
and a trigger to further
exploration.
• Cultural descriptions can
change over time.
2. Cultural environments
2. Focus honestly on 3. Enhance cognitive and
understanding other
perceptual skills for deeper
cultures insights
• Be aware that cultural • Self-awareness
models are only rough • Empathy
estimates of local realities.
• Information gathering and
• Recognize that most analysis
cultures are complex and
contradictions can often be • Information integration and
transformation
found in values, beliefs,
attitudes, and behaviors. • Behavioral flexibility
• Mindfulness
• Recognize the role of bi- and
multi-culturalism in local
situations.
• Try to view people and
situations through the eyes
of others.
• Look for situational
differences like cultural
friction or tightness.
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 Closing thought . . .
If you suddenly found yourself in a place where
no one looked familiar or spoke your language,
what is the first thing you would do?

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2. Cultural environments