Culture defined Acquired knowledge that people use to interpret experience and generate social behavior This knowledge forms values creates attitudes and influences behavior The Nature of Culture Characteristics of Culture Learned Shared Trans generational Symbolic Patterned Adaptive Priorities of Cultural Values How Culture Affects Managerial Approaches Centralized vs Decentralized Decision Making Safety vs Risk In some societies top managers make all important organizational decisions In others these decisions are diffused throughout the enterprise and middle and lower level managers actively participate in and make key decisions In some societies organizational decision makers are risk averse and have great difficulty with conditions of uncertainty In others risk taking is encouraged and decision making under uncertainty is common Individual vs Group Rewards In some countries personnel who do outstanding work are given individual rewards in the form of bonuses and commissions In others cultural norms require group rewards and individual rewards are frowned upon Informal Procedures vs Formal Procedures In some societies much is accomplished through informal means In others formal procedures are set forth and followed rigidly High Organizational Loyalty vs Low Organizational Loyalty In some societies people identify very strongly with their organization or employer In others people identify with their occupational group such as engineer or mechanic Cooperation vs Competition Some societies encourage cooperation between their people Others encourage competition between their people Short term vs Long term Horizons Some culture focus most heavily on short term horizons such as short range goals of profit and efficiency Others are more interested in long range goals such as market share and technologic developments The culture of some countries encourages stability and resistance to change The culture of others puts high value on innovation and change Stability vs Innovation A Model of Culture Values in Culture Learned from culture in which individual is reared o o Differences in cultural values may result in varying management practices o Basic convictions that people have about Right and wrong Good and bad Important and unimportant Value Similarities and Differences Across Cultures Strong relationship between level of managerial success and personal values Value patterns predict managerial success and can be used in selection placement decisions Country differences in relationship between values and success however findings across U S Japan Australia India are similar Values of more successful managers favor pragmatic dynamic achievement oriented and active role in interaction with others Values of less successful managers tend toward static and passive values relatively passive roles in interacting with others Hofstede s Cultural Dimensions Power distance Less powerful members accept that power is distributed unequally o High power distance countries people blindly obey superiors centralized tall structures e g o Low power distance countries flatter decentralized structures smaller ratio of supervisor to Mexico South Korea India employee e g Austria Finland Ireland Uncertainty avoidance people feel threatened by ambiguous situations create beliefs institutions to avoid such situations o High uncertainty avoidance countries high need for security strong belief in experts and their knowledge structure organizational activities more written rules less managerial risk taking e g Germany Japan Spain o Low uncertainty avoidance countries people more willing to accept risks of the unknown less structured organizational activities fewer written rules more managerial risk taking higher employee turnover more ambitious employees e g Denmark and Great Britain Individualism People look after selves and immediate family only o High individualism countries wealthier protestant work ethic greater individual initiative promotions based on market value e g U S Canada Sweden o High collectivism countries poorer less support of Protestant work ethic less individual initiative promotions based on seniority e g Indonesia Pakistan Masculinity dominant social values are success money and things o High masculine countries stress earnings recognition advancement challenge wealth high job stress e g Germanic countries o High feminine countries emphasize caring for others and quality of life cooperation friendly atmosphere employment security group decision making low job stress e g Norway Trompenaars Cultural Dimensions Universalism vs Particularism o Universalism ideas practices can be applied everywhere o High universalism countries formal rules close adhere to business contracts e g Canada U S Netherlands Hong Kong o Particularism circumstances dictate how ideas practices apply high particularism countries often modify contracts e g China South Korea Individualism vs Communitarianism Individualism people as individuals o o Countries with high individualism stress personal and individual matters assume great personal responsibility e g Canada Thailand U S Japan o Communitarianism people regard selves as part of group o Value group related issues committee decisions joint responsibility e g Malaysia Korea Neutral vs Emotional o Neutral culture in which emotions not shown High neutral countries people act stoically and maintain composure e g Japan and U K o Emotional Emotions are expressed openly and naturally High emotion cultures people smile a lot talk loudly greet each other with enthusiasm e g Specific vs Diffuse Mexico Netherlands Switzerland o Specific large public space shared with others and small private space guarded closely High specific cultures people open extroverted strong separation work and personal life e g Austria U K U S o Diffuse public and private spaces similar size public space guarded because shared with private space people indirect and introverted work private life closely linked e g Venezuela China Spain o Achievement culture status based on how well people perform functions Austria Switzerland U S o Ascription culture status based on who or what person is e g Venezuela China Indonesia Achievement vs Ascription Time o Sequential only one activity at a time appointments kept strictly follow plans as laid out U S o Synchronous multi task appointments are approximate schedules subordinate to relationships e g France Mexico o Present vs Future Future more important Italy U S