Lec 4 Flashcards
(16 cards)
Culture
Acquired knowledge that people use to interpret experience and generate social behaviour
This knowledge…
forms values
Creates attitudes
influences behavior.
Various levels of culture: national, organisational, professional, subculture.
Values
Basic convictions that people have
right and wrong
good and bad
important and unimportant
Learned from the culture in which the individual is reared
Influences one’s behaviour
Differences in cultural values may result in varying management practices
Risk of stereotyping(Assuming everyone from a culture behaves in the same way) and ethnocentric(Assuming that ones own culture is better than other cultures) behaviour.
–>countries can have different Priorities of Cultural Values
The nature of Culture
learned, shared, transgenerational, symbolic, adaptive, patterned –> 4.1.3 the layer of culture anschauen
Levels of Culture: International Business operations are influenced by the following cultures
National Culture: Dominant culture in a country
Business Culture: The way business is conducted in a country
Occupational (Professional) Culture: Values and beliefs associated with a profession
Organisational Culture: The way an organisation conducts its business
How to compare culture?/ The dimensions of culture
Hofstede-Trompenaars-GLOBE
Hofstede’s Cultural Dimensions
four cultural dimensions:
Power Distance (High versus Low)
Individual versus Collectivism
Uncertainty Avoidance (High versus Low)
Masculinity versus Femininity
A fifth dimension (long versus short term orientation) was added later (sometimes referred to as Confucian Dynamism or Bond Study).
A sixth dimension (indulgence versus restraint) was added in 2010
Power Distance
How accepting is a society of differences in power between leaders and subordinates.
titles are important and decisions made by superiors are not questioned.
In a low power distance society titles are not regularly used and all decisions are usually questioned before they are approved.
Centralized = high power distance-> one seat in the middle Decentralized = low power distance-->three seats or more in the middle
In Individualist cultures
the focus is on the relationship between the individual and the group.
Countries high on individualism believe that:
- People are responsible for themselves.
- Individual achievement is ideal.
Collectivist cultures
view people largely in terms of the groups to which they belong.
Countries high on collectivism believe that:
- One’s identity is based on group membership.
- Group decision making is best.
Uncertainty Avoidance
Relates to a culture’s tolerance for ambiguity(Mehrdeutigkeit)
.
Countries with high uncertainty avoidance believe that:
Conflict should be avoided.
Experts and authorities are usually correct
Consensus is important.
Examples: Less risk-taking, more written documents, security, low turnover…
Masculinity versus Femininity
Relates to a culture’s emphasis on personal achievement and materialism versus relationships and quality of life.
Cultures that score high on femininity believe that:
- People should have a relaxed lifestyle. - More concern about caring for others as opposed to material gain.
High Masculinity countries believe that:
- Work takes priority over other duties, such as family. - Advancement, success, and money are important
Short-term vs long-term Orientation
short term: focus on past and present
long term: focus on future
Indulgence versus Restraint
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.
Criticism of Hofstede
Does it capture organisational or professional culture?
Does it ignore sub-cultures?
Can cultural values and behaviours found in a society be generalised?
Challenges to Cross-Cultural Management
Parochialism
Tendency to view the world through one’s own eyes and perspectives
Simplification
Process of exhibiting the same orientation toward different cultural groups
–> falling share price europe disneyland
Strategic Predispositions
Ethnocentric (IKEA, Mc Donalds)
Firm allows values and interests of the parent
company to guide strategic decisions
Polycentric
Company makes strategic decisions tailored to suit
the cultures of the countries where the MNC
operates
Regiocentric
Firm blends/mixen its own interests with those of its
subsidiaries on a regional basis
Geocentric
Company integrates a global systems approach to
decision making
