Culture collective programming distinguishes members of group from another shape behavior Values basic convictions people have differences in values varying management practices Norms common acceptable pattern of values behavior Laws are made for most important norms Cultural Orientation attitudes of most of the people at the time Assumptions of orientation 1 Limited number of common problems 2 limited alternatives Each society dominant profile value has rank of ordering of preferences for alternatives societies undergoing change don t have this Hierarchical structure exists to establish lines of authority Chinese Japanese Spanish Italian managers agree Americans Germans British managers disagree believe hierarchy is to organize tasks to achieve goal Efficient work relationships is often necessary to bypass hierarchical line Americans Germans British agree getting the job done is most important Spanish Chinese Italian tend to disagree bypassing authority is seen as insubordination important for managers to have at hand precise answers to questions Japanese Spanish Italian agree American British Swedish disagree should be problem solvers and show how to solve it Individualism define selves as individuals take care of themselves and immediate family social network loose and fluid Collectivism define selves as in groups and those outside take care of those in group social network tight knit and stable Asians are more collectivist than Germans Germans more collectivists than Americans Japanese is built around the workplace China is built around the village vs others Latin America is around the family and themselves Afghanistan 2 primary tribes Durrani and Ghilzai this is primary form of identity Collective Individualistic Singapore Italy Mexico Germany France U S Australia The higher individualistic the higher the GNP Why Competitive nature is higher here Power Distance level of acceptance by a society of unequal distribution of power High power workers respect their superiors authority results centralized authority structures Lower power workers and boss see each other as equal results decentralized structures High Low Malaysia China Mexico U S Germany Austria Uncertainty Avoidance extent which people feel threatened by ambiguous situations and risk High detailed laws low risk decisions little aggressiveness Low less detailed laws more risk High Low Greece Japan France U S Denmark Singapore Low Uncertainty more entrepreneurs Masculinity assertiveness materialism lack of concern rigid gender roles Feminine concern for others flexible gender roles for relationships for quality of life High low Japan Mexico Germany US Denmark Sweden Chinese Connection researches felt Hofstedes work was influence by western view not the true view of Chinese found Hofstedes values valid for Asia came up on additional dimension called Confucian dynamism AKA long short term orientation Long Term future value thrift China Japan Korea HongKong Short Term present respects tradition but more on present America France Russia most third world nations Japan has the highest savings rate in the world Convergence organizations coming together Yes on macro level more industrial a country gets more similar they become structures technology accounting and financial practices are coverging WTO and international markets encourage consistent practices No on micro leve behavior differences between cultural settings remain unique Everyone pays employees but basis of pay is different may be equal seniority based gender bases Asia tends to be group based pay Cultural Profiles picture of working environments attitudes and norms managers can get info on cultural variables from research observations and discussing with people Economy size 1 US 2 China 3 Japan Japanese Culture avoid conflict Principle of wa peace and harmony Leads to amae indulgent love amae results in shinyo mutual faith confidence and honor necessary for successful business relations High on pragmatism and somewhat high on power distance collectivism masculinity uncertainty avoidance uncertainty avoidance results in japan only improving on existing products not inventing importance attached to loyalty empathy and guidance of subordinates leads to mix of authoritarianism and humanism homogenous managerial value system strong middle management and strong working relations strong seniority system that emphasize rank open expression and conflict is discouraged critical to avoid shame of not fulfilling duties Workplace Norms in Japan Result A culture of devotion to work collective responsibility and high productivity Cross Cultural Management describes organizational behavior within countries and compares them seeks to understand and improve interactions How good are Americans at cross cultural management Expatriate failure rate Western Europe 5 Japan 5 US 10 40 Why do US managers fail more we are highly parochial ethnocentric parochial viewing world through one s own eyes and perspective Your way is the only way Ethnocentric believing your culture or country is the best way Acknowledges there are different approached but believes they are inferior to their way Why are we more parochial lack of interest 90 of research on management is done on US workers only we speak no other language geography big domestic market English is language of international business we have had political and tech dominance since WWII so everyone else has had to adapt to us At the center of Culture is the basic assumptions that guide peoples behavior then it s the norms and values that guide society lastly it s the products and artifacts of society Culture values attitudes behavior culture French see Americans as na ve aggressive workaholic Americans see French as arrogant flamboyant emotional hierarchical How do cultures vary Humanitys relation to nature Dominance harmony subjugation Nature of time Future present past Nature of space Private public Nature of human relations Individuals collectives Research has shown culturally based differences in people s values attitudes and behaviors These differences in attitudes and beliefs are a set of filters through which we see management situations how managers beliefs and values affect behavior National culture explained more differences in work related values than did position in the organization profession age and gender among employees working for a single U S based multinational corporation National culture more influential than