Unit 3: Managing Globally.

1. Cross Cultural Management

 Culture
• A complex whole which includes knowledge,
belief ,art ,morals, law, customs and other
capabilities & habits acquired by an individual
as a member of society.
Elements of Culture
 Characteristics of Culture
• Learned
• Shared
• Transgenerational
• Symbolic
• Patterned
• Adaptive
• Purpose
• Pervasive.
Levels of Culture
 Levels of Culture
• National Culture : Dominant Culture within
political boundaries
• Business Culture : Business Etiquettes, values,
beliefs, correct and acceptable ways to
conduct business
 Others
• Mechanistic and organic Culture
• Authoritarian and participative culture
• Dominant and sub Culture
• Strong and weak culture
• Unhealthy culture
 Effects of Culture
• Need of conformity vs Adopting workforce
diversity
• Barriers in mergers and acquisitions
• Control mechanism
• Promotes innovation
• Influence on strategy formulation
• Energises the employees
• Identity to the members
• Organisational commitment
 Multicultures
• Multicultures : people from various cultures
interact regularly
 Cross- Cultural Management
• Management Aspect in terms of multi
cultures.
 Hofsetede
• Hofstede (1994) defines culture as

“the collective programming of the mind that

distinguishes the members of one category
people from another”
 Hofstede Model of Culture
• Hofstede’s Cultural Dimensions Theory, developed by Geert
Hofstede, is a framework used to understand the differences
in culture across countries and to discern the ways that
business is done across different cultures. In other words, the
framework is used to distinguish between different national
cultures, the dimensions of culture, and assess their impact
on a business setting.
 Power Distance
• This dimension expresses the degree to which the
less powerful members of a society accept and
expect that power is distributed unequally: beliefs
about the appropriate distribution of power in
society.
• The power distance index considers the extent to
which inequality and power are tolerated. In this
dimension, inequality and power are viewed from
the viewpoint of the followers – the lower level.
• High power distance index indicates that a
culture accepts inequity and power differences,
encourages bureaucracy, and shows high respect
for rank and authority.
• Low power distance index indicates that a culture
encourages organizational structures that are flat
and feature decentralized decision-making
responsibility, participative style of management,
and place emphasis on power distribution.
 Uncertainty Avoidance

• The Uncertainty Avoidance dimension expresses the

degree to which the members of a society feel
uncomfortable with uncertainty and ambiguity.
• A high uncertainty avoidance index indicates a low
tolerance for uncertainty, ambiguity, and risk-taking. The
unknown is minimized through strict rules, regulations,
etc.
• A low uncertainty avoidance index indicates a high
tolerance for uncertainty, ambiguity, and risk-taking. The
unknown is more openly accepted, and there are lax
rules, regulations, etc.
 Masculinity vs. Femininity

• The masculinity vs. femininity dimension is also referred

to as “tough vs. tender,” and considers the preference of
society for achievement, attitude towards sexuality
equality, behavior, etc.
• Masculinity comes with the following characteristics:
distinct gender roles, assertive, and concentrated on
material achievements and wealth-building.
• Femininity comes with the following characteristics:
fluid gender roles, modest, nurturing, and concerned
with the quality of life.
•
 Individualism vs. Collectivism

• The individualism vs. collectivism dimension

considers the degree to which societies are
integrated into groups and their perceived
obligations and dependence on groups.
 Time Orientation

• The long-term orientation vs. short-term orientation dimension

considers the extent to which society views its time horizon.
• Long-term orientation shows focus on the future and involves
delaying short-term success or gratification in order to achieve
long-term success. Long-term orientation emphasizes
persistence, perseverance, and long-term growth.
• Short-term orientation shows focus on the near future,
involves delivering short-term success or gratification, and
places a stronger emphasis on the present than the future.
Short-term orientation emphasizes quick results and respect
for tradition.
 Indulgence
• The Indulgence dimension is a relatively new dimension
to the model. This dimension is defined as the extent to
which people try to control their desires and impulses,
based on the way they were raised. Relatively weak
control is called Indulgence and relatively strong control is
called Restraint. Cultures can, therefore, be described as
Indulgent or Restrained. 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.
 Edward T hall Model
• Edward T. Hall was an anthropologist who
made early discoveries of key cultural factors.

Cultural Factors

Context Time ` Space

High Context
Low Context
High Vs Low context
 Time

Monochronic Polychronic

human interaction is valued

over time and material
means doing one thing at a things, leading to a lesser
time. concern for 'getting things
done' -- they do get done,
but more in their own time.
Contrasting Both
Space or Proxemics
 Territoriality
High
Low Territory
 • Cultural sensitivity is being
Cultural aware that cultural differences
and similarities between people
Sensitivity - exist without assigning them a
value – positive or negative,
Definition better or worse, right or wrong.
Importance of Cultural Sensitivity in
Business
• Ethnocentric Stage :
– Denial
– Defense
– Minimization
• Ethnorelative stage
– Acceptance
– Adaptation
– Integration
• Can Cultural Sensitivity be Learnt?- Discussion

• How can you implement the Culture

awareness in any organization?- Assignment