Transcript 2006120312147

International Management
Phatak, Bhagat, and Kashlak
McGraw-Hill/Irwin
International Management
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
CHAPTER 5
The Cultural Environment
McGraw-Hill/Irwin
International Management
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
5-3
Learning Objectives
Understand the concept of culture and cultural
variations in international management.
Explain the relationship of environmental factors on
societal culture.
Discuss the significance of various frameworks for
understanding cultural differences around the world.
Identify distinctive management styles that exist in
different countries of the world.
5-4
Chapter Topics
What is Culture?
The Dimensions of Culture
Culture and Management Styles in Selected Countries
5-5
What is Culture?
Culture is a concept that has been used in several
social science disciplines to understand variations in
human thought processes in different parts of the
world.
Culture is to a society what memory is to an
individual.
5-6
Components of Culture
Objective Component
Consists of such things as infrastructure of
roads, architecture, patterns of music, food,
and dress habits
Subjective Component
Ways that people categorize experience,
associations, beliefs, attitudes, selfdefinitions, role definitions, norms, and
values
5-7
Ex 5.1: Environmental Influences on International
Management Functions
Country Specific Influences
Eco. system; Political system
Tech. level
Important historical events
Customs and Traditions of the Country
Religion; Dialects and languages
Education
Cultural Orientation and Value
Pattern
Influences
Attitudes Toward
Work; Money; Time; Family; Authority; Change; Risk;
Equality
Influences
International Management Functions
Organizing and controlling; Managing technological change; Motivating; Communicating;
Decision-making; Negotiating; Ethical/ social respon.
5-8
Cultural Sensitivity
… may be defined as a state of
heightened awareness for the
values and frames of reference
of the host culture.
5-9
Cultural Sensitivity (contd.)
Parochialism is the belief that there is no other way of
doing things except that found within one’s own
culture, that is, that there is no better alternative.
Ethnocentrism is similar to parochialism, and tends to
reflect a sense of superiority, and ethnocentric
individuals believe that their ways of doing things are
the best, no matter which cultures are involved.
5-10
Cultural Sensitivity (contd.)
Geocentrism is very different to both parochialism and
ethnocentrism, reflecting a belief that it is necessary to
be responsive to local cultures and markets.
5-11
Fig 5.3: Cultural Emphasis on Important Dimensions
DIMENSIONS
Relation to Nature
Basic human nature
Time orientation
Space orientation
Activity orientation
Relationship among
people
EMPHASIS IN CULTURE
Subjugation
Evil
Past
Private
Being
Harmony
Mixed
Present
Mixed
Thinking
Hierarchical Group based
Mastery
Good
Future
Public
Doing
Individualistic
5-12
Hofstede’s Cultural Dimensions
Individualism and collectivism
Power distance
Uncertainty avoidance
Masculinity and femininity
Time orientation
5-13
Hofstede’s Cultural Dimensions (contd.)
Individualism may be defined as a social pattern that
consists of loosely-linked individuals who view
themselves as independent of groups and who are
motivated by their own preferences, needs, rights, and
contracts.
Collectivism may be defined as a social pattern that
consists of closely linked individuals who see
themselves as belonging to one or more groups and
who are motivated by norms, duties, and obligations
identified by these groups.
5-14
Hofstede’s Cultural Dimensions (contd.)
Power distance is the extent to which the less
powerful members of institutions and organizations
within a country expect and accept that power is
distributed unequally.
Uncertainty avoidance is the extent to which the
members of a culture feel threatened by uncertain or
unknown situations or by ambiguity in a situation.
5-15
Hofstede’s Cultural Dimensions (contd.)
Masculinity pertains to societies in which social
gender roles are clearly distinct (i.e., men are supposed
to be assertive, tough, and focused on material success
whereas women are supposed to be more modest,
tender, and concerned with quality of life).
Femininity pertains to societies in which social gender
roles overlap (i.e., both men and women are supposed
to be modest, tender, and concerned with the quality of
life).
5-16
Trompenaars’ Cultural Dimensions
How people relate to each other
Universalism vs. particularism
Individualism vs. collectivism
Neutral vs. affective relationship
Specific vs. diffuse relationship
Achievement vs. ascription
Time
Emphasis on past, present, or future
Whether it is sequential or synchronic
Relation to nature
Internal or external orientation
5-17
Ex. 5-14: Ronen and Shenkar’s Framework
Near Eastern
Turkey
Arab
Bahrain
Oman
Nordic
Finland
Norway
Iran
Denmark
Greece Sweden
Abu Dhabi
U.A.E.
Kuwait
Germanic
Austria
Germany
Switzerland
S. Arabia
Malaysia
Singapore Hong Kong
U.S.
Australia
Canada
France
Argentina
New Zealand
S. Vietnam Philippines
U.K.
Venezuela
Belgium
Indonesia
Ireland
Mexico Chile
Taiwan
Latin
American
Latin European S.Africa
Thailand
Far Eastern
Columbia
Brazil
Japan
Peru
Italy
Spain
Portugal
Independent
Anglo
Israel
India
5-18
Ex. 5.15: Schwartz’s Value Dimensions (selected)
Hierarchy
Mastery
Wealth
Successful
Conservatism
Family security
World of beauty
Affective
Autonomy
Harmony
Enjoying life
Curious
Intellectual
Autonomy
World of peace
Egalitarian Commitment
5-19
Hall’s Framework
Context refers to cues and other information that are
present in a given situation.
In high context cultures information is embedded in
the social situation and is implicitly understood by
those involved in the situation.
In low context cultures information tends to be more
explicitly stated.
5-20
Triandis’ Framework
Cultural syndrome is composed of
Cultural complexity
Tightness versus looseness, and
Two aspects of individualism versus collectivism
(horizontal and vertical)
5-21
Key Terms and Concepts
Culture
Subjective culture
Objective culture
Convergence of culture
Divergence of culture
Cultural sensitivity
Parochialism
Ethnocentrism
Geocentrism
5-22
Key Terms and Concepts (contd.)
Individualism versus collectivism
Power distance
Uncertainty avoidance
Masculinity versus femininity
Time orientation