Cultural Environments

Chapter 2

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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 (Chapter 1)

Stage 2. Understand the cultural, organizational, and managerial

contexts in which global managers operate (Chapters 2 - 4)

Stage 3. Develop multicultural competence and global management

skills (Chapters 5 - 10)

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

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t environment
Cultural (beliefs, values, and
worldviews)
( Situational
Management environment (work, management,
s contingencies
and motivation)
t (personalities, location,
a historical sensitivities,
k timelines, crises)
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2. Cultural environments
s 3
,
The cultural environment: Think about it . . .

The stranger sees only what he knows.

African proverb

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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
• Understand the limitations of cultural models, as well as
recent efforts to improve how we view cultural
differences
• Recognize and work to reduce cultural stereotypes
• Explore the challenges and opportunities of cultural
diversity and multiculturalism
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2. Cultural environments
 • Philosophers and social scientists have long noted
that if you want to understand why people –
including employees and managers – behave as
they do, a good place to begin is a serious look at
the cultural environment in which they work.

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2. Cultural environments
Consider:
“We do not see things as they are; we see them as we are.”
-- Talmud

“All people are basically the same; it is only their habits and
environments that differ.” – Three Character Classic

“As economic borders come down, cultural barriers will most

likely go up and present new challenges and opportunities
for business. When cultures come in contact, they may
converge in some aspects, but their idiosyncrasies will likely
amplify.” – GLOBE Project

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2. Cultural environments
 What is culture?

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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
 10

What is culture?

culture is perhaps best thought of as

addressing three questions:
1. Who are we?
2. How do we live?
3. Why do we work?
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
 THE
CONCEPT
OF
CULTURE
 What culture is?/is not?

Culture is a code of attitudes, norms and values,

the way of thinking...
The concept
of culture The culture determines:
• How we see ourselves
• How we see the world

Culture is not right or wrong, inherited, about

individual behaviour ...
 Three layers
Artifacts and attitudes

• Behavioral or explicit level

Norms (rules) and values

• Every culture has its own system

Basic assumptions

• Difficult to describe or explain

 Cultural assumptions in
management
Edgar Schein defines culture as:
‘a set of basic assumptions – shared solutions to universal
problems of external adaptation (how to survive) and internal
integration (how to stay together) - which have evolved over
time and are handed down from one generation to the next’
(Schein, 2004: 14)
How can we
explore
culture?
•Figure 1.1 Navigating the
seas of international
business
•Source: Adapted from
Schneider and Barsoux
(2003: 21)
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
'Correct' outcomes reinforce public policies aimed at
continuity of normative reinforcing societal norms
beliefs and values and values

Social control, stability,

and continuity
'Correct' social behavior
results that is consistent
with societal needs and
goals 17
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
 KEY
DIMENSION
S OF
CULTURE
Cultures can develop at different
levels:
• Culture and nation
• National culture Levels of cultures
• Organizational culture
in a business
context
• Corporate culture
• Professional culture
• Culture and management
Influence of culture on organizations
• Macro level
• laws and economic institutions
• the nation must be considered by organizations
going about their business. Culture and
• Micro level nation
• the organization is influenced through a number of
cultural elements relating to:
– employer-employee relationships
– behaviour among employees
National culture
• Elements that contribute to the creation of a national culture:
- Physical environment
- History of the nation
• Institutions that contribute to the establishment of a national culture
- Family/Religion/Education
- Mass communication media
- The multinational company

(Tayeb, 2003: 13)

Organizational culture
• In organization, culture affects the way:
- strategy is determined
- goals are established
- how the organization operates

• The personnel of the organization:

- influenced by their cultural backgrounds
- shared their own values and perceptions

(Schein, 1999)
Organizational
culture
• Corporate culture is a combination of:
- Organizational culture
- National/regional culture
• Two meanings on the influence of corporate culture
- Key to success if: Corporate culture
1) Clearly defined corporate culture
2) Flexible culture
• Role of the company culture
- internal cultural factors
Professional culture
• Three professional cultures in management:
• Operators
- involved in production (goods/services)
• Engineers
- design and monitor the technology
• Executives
- senior managers
(Schein, 1996)
• The question remains: how these professional cultures co-exist?
Cross-cultural management
• explains the behaviour of people in organizations
around the world
• describes and compares organizational behaviour
across countries and cultures Culture and
• seeks to understand and improve the interaction of management
:
• co-workers, managers, executives, clients,
suppliers, and alliance partners
(Adler, 2002: 11)
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
Cultural values: A summary (Exhibit 2.5)

Environment: How individuals view and relate to people,

objects, and issues within their sphere of influence
Mastery-based   Harmony-based
Internal locus of control External locus of control
Trustworthy human nature Untrustworthy human nature
Mutable human nature Immutable human nature

Power distribution: How individuals view differential power relationships

Hierarchical   Egalitarian

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2. Cultural environments
Cultural values (Exhibit 2.5)

Interpersonal relationships: How people relate to one

another and define their identity and status
Individualistic   Collectivistic
Achievement-based Ascription-based
Universalistic (rule-based) Particularistic (relationship-based)

 
Time orientation: How individuals perceive the
nature of time and its use
Sequential (monochronic)   Synchronic (polychronic)
Past focus Future focus

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2. Cultural environments
Cultural values (Exhibit 2.5)

Action: How individuals conceptualize actions and interactions

Being   Doing
Relationships Tasks

Sources of truth: How do people determine what is right or wrong

Experts   Experience

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2. Cultural environments
Management application 2.1
Power distribution: Traffic fines in Finland
• Many Finnish laws are universalistic and based on the principle of equity if
not equality. For example, traffic fines vary based on personal income; the
more you make, the more you can afford to pay. Police departments
maintain direct computer access to internal revenue files to calculate the
fines on the spot. Hence, when Jaako Rytsola, a young Finnish
entrepreneur, was stopped driving his BMW at 43 miles per hour in a 25
mile per hour zone, his speeding ticket cost him $72,000. Similarly, when
27-year-old millionaire Jussi Salonoja, also in a BMW, was caught driving
40 miles per hour in a 25 mile per hour zone, he was fined $225,000. A
government minister noted that this was a “Nordic tradition.” They have
both progressive taxation and progressive punishment. However, another
driver fined $60,000 for going 10 miles over the speed limit had a different
opinion. “Finland is impossible to live in for certain kinds of people,” he
noted.
2. Cultural environments
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Management application 2.1
Power distribution: Traffic fines in Finland
1. From the standpoint of government decision-makers, is tying
traffic fines to personal income fair? Why or why not? Is there a
better way to do this to accomplish the same goal?
2. In your culture, do you think the kind of car you drive influences
whether or not you get stopped by the police?
3. Would you enjoy being a manager in a country that genuinely
stresses equality – including equality with your subordinates?
Explain.

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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
Management application 2.5
Multiculturalism in Singapore
1. Why do outside observers describe Singapore as a successful
multicultural society?
2. Are these characteristics easily transferrable to other multi-
ethnic societies? Why or why not?
3. What are the challenges facing Singaporeans in living and
working in a multi-cultural society? Explain.
4. What are the implications for managers working in this society?

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2. Cultural environments
Manager’s notebook: Working across cultures (Exhibit 2.8)
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 • Information integration and
contradictions can often be transformation
found in values, beliefs,
• Behavioral flexibility
attitudes, and behaviors.
• Recognize the role of bi- and • Mindfulness
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. 38
Key concepts
biculturalism culture model
country clusters Hall culture model
cultural distance Hofstede culture model
cultural environment internal vs. external locus of
cultural friction control
cultural stereotypes mindfulness
cultural values multiculturalism
culture normative behavior
emic vs. etic perspectives tight vs. loose cultures
GLOBE culture model Trompenaars culture model

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2. Cultural environments
 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