The Role of Culture in International Management

HA 390 Module 2

Culture
Helps us organize our world Shared values, understandings, assumptions and goals (values, beliefs, norms) Learned from earlier generation Imposed by present members of society

Principles for Studying Other Cultures

Individuals may not conform Differences may not be culturally based Understand your own culture first Continuums

Few fall at the extremes, most are somewhere in the middle

Stereotyping/ Sociotyping
Mental files Natural Useful Can be misused

Ethnocentrism

Belief that one's cultural values, beliefs and norms are better than those of another culture are

Principles Summary
4 Principles for studying cultures Individuals may not conform Differences may not be culturally based Understand self first Continuums Stereotyping Natural, potentially useful or harmful mental files Ethnocentrism Belief that ones own culture is best

Team Work

Find several examples that demonstrate how culture affects management functions such as planning, organizing, directing and controlling Find examples of how culture affects management style Find several examples of how business practices differ across cultures Prepare to present findings to class

Country Profile

Cultural Characteristics
Understand the ways culture can differ Understand ourselves Understand others Value different points of view Develop shared values, beliefs and norms

What do you think?

Are subordinates the same kind of people as management? Should the boss know all the answers? Is it ok for the boss to have privileges such as drinking coffee on the job that the front line workers do not have? Is it ok to call the boss by his/her first name? Which type of boss do you think is best - one that is autocratic, persuasive or paternalistic, or democratic?

Power Distance
High Power Distance Order of inequality Special privileges Subordinates are different from superiors Boss should know all

Low Power Distance Minimize inequalities Equal rights Subordinates and superiors are equals Ok for boss to ask subordinates for answers

Power Distance Comparisons

High
90 80 70 60 50 40 30 20 10 61 54 81

Average = 51

Low

49 40 38 35 28

South Africa

Taiwan

Japan

Great Britan

Netherlands

Mexico

Ireland

USA

High Power Distance Employee Expectations

Wrong to disagree with the boss Paternalistic (father-like) management style Boss should know all the answers Boss should have more privileges

What do you think?

Do you think it is ok for employees to disagree and even argue with their boss? Do you think time has a monetary value or it is something that just exists? Do you prefer a boss who lays out the rules clearly and specifically to you in written format or do you prefer one that only sets out basic rules and assumes you will perform appropriately? Why? If you needed a marketing plan, would you hire a hospitality marketing specialist, a general marketing specialist or would you do it yourself? How do you react when your boss tells you s/he is going to make changes in the way things are done?

Uncertainty Avoidance
High Avoid risks Dissonance is dangerous Time is money Need written rules and regulations Believe in experts
Low Willing to take risks Accept disagreements Time is free Prefer common sense to rules Logic and common sense better than expert opinions

Uncertainty Avoidance
Average=64

High avoidance of risk

120 100 80 60 40 20 0 112 92 82 69 53 49

Willing to take risks

46 35 29

South Africa

Taiwan

Great Britain

Netherlands

Hong Kong

Japan

Greece

Mexico

USA

Individualism

Collectivism

Responsible for self and immediate family Identity based on the individual Autonomy, variety, pleasure and individual financial security Individual decisions

Extended families, loyalty, protection Identity in the social system Expertise, order, duty, security provided by the ingroup Group decisions

Individualistic
Average =51
100 90 80 70 60 50 40 30 20 10
Great Britain Netherlands Hong Kong Mexico

Collective

91

89 80

46 30

25 17

Taiwan

0
Japan USA

Collective

Individualistic

Affect of High Uncertainty Avoidance on Employees

Career stability Rules, regulations, direction Consistency Avoid conflict/disagreement Resist change Fear of failure
May appear less ambitious

Stable employees

What do you think?

1. 2. Do you live to work or work to live? What are your feelings about who should do what at home? How do you view the responsible of each spouse for taking care of the children? Do you feel a sense of responsibility to help when you see a homeless person begging? What is your philosophy on giving to the poor? Would you take your family out of a home and community they love where they are surrounded by friends and family for a new position that offers you a considerably higher salary? How would you rank yourself on the masculine/feminine continuum? How do your feelings contrast with others you know?

3.

4.

5. 6.

Masculine/Feminine
Masculine Material success Ambition, assertive Competitive Live to work Women are nurturers Achievement Feminine Quality of life Relationships Concern for weak Work to live Men & Women nurture Disapprove of high achievers

100

10 95 69

20

30

40

50

60

70

80

90

0
Japan

Masculine

Mexico

66

Great Britain

63

South Africa

62

USA

57

Average = 51

Hong Kong

45

Taiwan

14

Netherlands

5
Sweden

Feminine

Particularistic

Universalistic

Focus more on relationships than rules Legal contracts easily modified Changing mutualities honored Reality is relative to participant Relationships evolve

Focus on rules rather than relationships Legal contracts should be honored Word and legal contracts honored One reality, one truth A deal is a deal

Percent who prefer universalistic system

ut h er M K Ja l e a or xi UK nd pa ea co n s
37 64 68 88 90 93

Ne th

So

US A

Team Discussion
How would the expectations of employees from a particularistic culture differ from those of a universalistic culture? Which system do you prefer? Why? What is the value of each of these systems?

What do you think?

1. Do you think Americans respected John Kennedy, Jr. because of what he accomplished or because of his family?
2. Do you think many people voted for our current president because of his father? 3. Would you have the same level of respect as a hospitality manager as a relative of Bill Marriott or Roy Crock would? 4. What difference do you think the school you attended make in your career after you have been working in the field at least five years?

Achievement

Ascription

Respected for what you do Respect of superior based on performance Limited use of titles Senior managers vary in age and gender, qualified by achievements

Respected for who you are Respect for superior seen as commitment to the organization Extensive use of titles Senior managers are male, middleaged, qualified by background (who they are)

Respect depends on family background Percent who disagree

UK USA Mexico China Japan Hong Kong
58 81 81 79 89 87

Ascription

Achievement

What do you think?

1.

2. 3.

4.

Do you believe you can control your life or do you believe you have to accept the ways things are? Is your life pre-destined? Do you have a fate over which you have little or no control? How do other people you know differ in their believes about controlling fate or destiny?

Locus of Control
Internal Belief in ones ability to control fate Respect for conflict and resistance Focus on self rather than others Discomfort with lack of control External Belief that something outside oneself is in control Harmony and responsiveness Focus on other Comfortable with changes

Control Fate: Percent who believe

they are captains of their fate
90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Venezuela Japan S Korea Hong Kong Netherlands UK USA

Neutral/Affective
Neutral Hide feelings Tension accidentally revealed Admire poise Avoid hugs, broad smiles and broad gestures Monotone Affective Openly reveal emotions Expressive Animated expressions Touching, and broad gestures admired Expression and emotion

Diffuse (High context) /Specific (low context)

Diffuse (high context) Indirect Evasive, tactful, ambiguous Context more important than words Highly situational morality Prefer neutral expressiveness Report conclusions at end Specific (low context) Direct, to the point Precise, blu8nt Words more important than context Consistent moral stands regardless of circumstances Prefer animated expression Report conclusions and important points first

Cultural Dimensions Summary

Power Distance how should the boss act Uncertainty Avoidance rules or common sense Masculine/Feminine material rewards or quality of life Individualism/Collectivism I versus we Universalistic/Particularistic treat all equally versus do favors for friends

Cultural Dimensions Summary

Achievement/Ascription respect for what you do or respect for who you are Locus of Control I am in control of my destiny versus outside forces are in control Neutral/Affective hide versus display emotions Diffuse/Specific (high/low context) indirect versus direct communication