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International culture Lecture 3

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International cultureObjectivesIntroductionElements of cultureThe importance of culture in different business contextsNational stereotypes and key dimensions of cultureCross-cultural managementCulture embodied in national institutions.

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Слайд 1International culture
Lecture 3

International cultureLecture 3

Слайд 2International culture
Objectives
Introduction
Elements of culture
The importance of culture in different business

contexts
National stereotypes and key dimensions of culture
Cross-cultural management
Culture embodied in

national institutions.
International cultureObjectivesIntroductionElements of cultureThe importance of culture in different business contextsNational stereotypes and key dimensions of cultureCross-cultural

Слайд 3Objectives
Define culture and explain the factors that underlie cultural differences.
Show

where and why cultural differences matter to international managers.
Explain a

number of frameworks that help identify important cultural differences.
Examine how firms can anticipate and cope with cultural differences.
ObjectivesDefine culture and explain the factors that underlie cultural differences.Show where and why cultural differences matter to

Слайд 4Introduction
Culture: “the sum total of the beliefs, rules, techniques, institutions

and artifacts that characterize human populations” or “the collective programming

of the mind”.

Socialization Process: The process of enculturation or the adoption of the behaviour patterns of the surrounding culture.
IntroductionCulture: “the sum total of the beliefs, rules, techniques, institutions and artifacts that characterize human populations” or

Слайд 5Elements of culture

Elements of culture

Слайд 6Table 5.1 World population percentages in terms of home region,

language and religion
Sources: www.census.gov; www.adherents.com

Table 5.1 World population percentages in terms of home region, language and religionSources: www.census.gov; www.adherents.com

Слайд 7Language
Language is critical to culture because it is the primary

means used to transmit information and ideas.
Knowledge of local language

can:
permit a clearer understanding of a situation;
provide access to local people;
allows the person to pick up nuances, implied meanings, and other information that is not stated outright.
LanguageLanguage is critical to culture because it is the primary means used to transmit information and ideas.Knowledge

Слайд 8Religion
Religions influence lifestyles, beliefs, values and attitudes and can have

a dramatic effect on the way people in a society

act toward each other and towards those in other societies.
Religion also influences:
the work habits of people;
the work and social customs (from the days of the week on which people work to their dietary habits);
politics and business.
ReligionReligions influence lifestyles, beliefs, values and attitudes and can have a dramatic effect on the way people

Слайд 9Values and attitudes
Values: basic convictions that people have regarding what

is right and wrong, good and bad, important and unimportant.
Attitude:

a persistent tendency to feel and behave in a particular way toward some object.
Values and attitudesValues: basic convictions that people have regarding what is right and wrong, good and bad,

Слайд 10Customs and manners
Customs: common or established practices.
Manners: behaviour regarded as

appropriate in a particular society.

Customs and mannersCustoms: common or established practices.Manners: behaviour regarded as appropriate in a particular society.

Слайд 11Corporate culture
Corporate culture is a term used to characterize, how

the managers and employees of particular companies tend to behave.
Corporate

culture is also used by human resource managers and senior management in their attempts to proactively shape the kind of behaviour (“innovative”, “open”, “dynamic”, etc.) they hope to nurture in their organizations.
Promoting a distinctive corporate culture is also expected to enhance the sense of community and shared identity that underpins effective organizations.
Corporate cultureCorporate culture is a term used to characterize, how the managers and employees of particular companies

Слайд 12The importance of culture in different business contexts Where does

culture fit into the business equation?

The importance of culture  in different business contexts   Where does culture fit into the

Слайд 13Business Environment
Decisions taken by a company are usually influenced by:

internal

factors such as strategy, goals, scope of operations, internal resources

including management systems and organizational culture
and factors in the external business environment

Business Environment Decisions taken by a company are usually influenced by:internal factors such as strategy, goals, scope

Слайд 14External Factors

External Factors

Слайд 15Influences of culture on international management
Culture influences strategic management in

a number of ways:
Work attitudes
for example, work ethics, organization commitment,

etc.
Achievement motivation
the desire to accomplish objectives and achieve success.
Time and future
for example: punctuality, decision-making time constraints, time expectations on implementation of plans, etc.
Ethics
standards of conduct and morality.
Influences of culture  on international managementCulture influences strategic management in a number of ways:	Work attitudesfor example,

Слайд 16Culture and strategic management
Cross-cultural management issues arise in a number

of situations, including:
Within a firm: Work attitudes, achievement motivation, time

and future and ethics, etc.
Between firms: M&As, joint ventures, alliances and buyer-supplier relationships.
Between a firm and customers: Dealing with customers.

Cf.) Dealing with national institutions.
Culture and strategic managementCross-cultural management issues arise in a number of situations, including:Within a firm: Work attitudes,

Слайд 17Cross-cultural business contexts

Cross-cultural business contexts

Слайд 18National stereotypes and key dimensions of culture

National stereotypes and key dimensions of culture

Слайд 19Two approaches to culture
Two different approaches to looking at culture:
the

psychic or psychological level, which focuses on the “internalized” norms,

attitudes and behaviour of individuals from a particular culture;
the institutional level, which looks at national (or group) culture embodied in institutions (government, education, economic institutions as well as in business organizations).
Two approaches to cultureTwo different approaches to looking at culture:the psychic or psychological level, which focuses on

Слайд 20Geert Hofstede’s four cultural dimensions
Power distance: measures the degree to

which less powerful members of organizations and institutions accept the

fact that power is not distributed equally.
Uncertainty avoidance: measures the extent to which people feel threatened by ambiguous situations and have created institutions and beliefs for minimizing or avoiding those uncertainties.
Geert Hofstede’s four cultural dimensionsPower distance: measures the degree to which less powerful members of organizations and

Слайд 21Individualism vs. collectivism
Individualism: the tendency of people to look after

themselves and their immediate family only.
Collectivism: the tendency of

people to belong to groups who look after each other in exchange for loyalty.

Geert Hofstede’s four cultural dimensions (Continued)

Individualism vs. collectivismIndividualism: the tendency of people to look after themselves and their immediate family only. Collectivism:

Слайд 22Masculinity vs. femininity
Masculinity: the degree to which the dominant values

of a society are success, money and material goods.
Femininity: the

degree to which the dominant values of a society are caring for others and the quality of life.

Geert Hofstede’s four cultural dimensions (Continued)

Masculinity vs. femininityMasculinity: the degree to which the dominant values of a society are success, money and

Слайд 23Figure 5.2 Hofstede’s power distance against individualism for 20 countries
Source:

Hofstede, G. (1983). The cultural relativity of organizational practices and

theories, Journal of International Business Studies, Fall, p. 92. Copyright © Geert Hofstede
Figure 5.2 Hofstede’s power distance against individualism for 20 countriesSource: Hofstede, G. (1983). The cultural relativity of

Слайд 24Fons Trompenaars’ seven cultural dimensions
1. Universalism vs. particularism
Universalism: the belief

that ideas and practices can be applied everywhere in the

world without modification.
Particularism: the belief that circumstances dictate how ideas and practices should be applied and somethings cannot be done the same everywhere.
Fons Trompenaars’ seven cultural dimensions 1. Universalism vs. particularismUniversalism: the belief that ideas and practices can be

Слайд 252. Individualism vs. collectivism: centres on whether individual rights and

values are dominant or subordinate to those of the collective

society.
3. Neutral culture vs. emotional culture:
Neutral culture: A culture in which emotions are held in check.
Emotional culture: A culture in which emotions are expressed openly and naturally.

Fons Trompenaars’ seven cultural dimensions (Continued)

2. Individualism vs. collectivism: centres on whether individual rights and values are dominant or subordinate to those

Слайд 264. Specific vs. Diffuse: measures whether work relationships (e.g. the

hierarchical relationship between a senior manager and a subordinate) are

workplace ‘specific’ or extend (diffuse) into the social context outside the workplace.
5. Achievement vs. Ascription: measures whether one’s status within organizations is based on merit (“achieved”) or on class, gender, education or age (“ascribed”).

Fons Trompenaars’ seven cultural dimensions (Continued)

4. Specific vs. Diffuse: measures whether work relationships (e.g. the hierarchical relationship between a senior manager and

Слайд 276. Attitudes toward time
Sequential: cultures that view time in

a sequential or linear fashion; order comes from separating activities

and commitments.
Synchronic: cultures that view events in parallel over time; order comes from coordinating multiple activities and commitments.

Fons Trompenaars’ seven cultural dimensions (Continued)

6. Attitudes toward time Sequential: cultures that view time in a sequential or linear fashion; order comes

Слайд 287. Attitudes toward the environment: measures the emphasis, a particular

culture places on people’s relationship with nature and the natural

environment.

Fons Trompenaars’ seven cultural dimensions (Continued)

7. Attitudes toward the environment: measures the emphasis, a particular culture places on people’s relationship with nature

Слайд 29The GLOBE project’s nine dimensions of culture
1. Assertiveness.
2. Future orientation: A

propensity for planning, investing, and delayed gratification.
3. Gender differentiation: The degree

to which gender role differences are maximized.
4. Uncertainty avoidance: A reliance on societal norms and procedures to improve predictability, a preference for order, structure and formality.
5. Power distance.
The GLOBE project’s nine dimensions of culture1. Assertiveness. 2.	Future orientation: A propensity for planning, investing, and delayed

Слайд 30Institutional collectivism: individualism vs. collectivism.
In-group/family collectivism: A pride in

small-group membership, family, close friends etc.
8. Performance orientation: (much like achievement

orientation).
9. Humane orientation: An emphasis on fairness, altruism and generosity.

The GLOBE project’s nine dimensions of culture (Continued)

Institutional collectivism: individualism vs. collectivism. In-group/family collectivism: A pride in small-group membership, family, close friends etc.8.	Performance orientation:

Слайд 31Cross-cultural management

Cross-cultural management

Слайд 32Figure 5.4 Management dimensions of culture

Figure 5.4 Management dimensions of culture

Слайд 33Useful strategies for managing cultural diversity
Some useful strategies for managing

cultural diversity Recognize diversity.
Build diversity issues into recruitment, HRM planning,

strategy, location decisions, alliances and partnerships.
Identify where and to what degree local divisions should be encouraged or empowered to take the lead in expressing and managing diversity.
Encourage cross-border discussion and interaction as well as focused training.
Aim for a cultural balance in particular areas of strategic and tactical decision-making.
Lead from the top.
Useful strategies for  managing cultural diversitySome useful strategies for managing cultural diversity Recognize diversity.Build diversity issues

Слайд 34Multinational organizational structures: imperialist or independent?
Ethnocentric: top management is dominated

by home-country nationals and procedures and management styles are “transferred”

from head office and “imposed” on regional subsidiaries in place of local “ways of doing things”.
Polycentric: firms tend to act like a federation of semi-autonomous organizations with financial controls or strict reporting structures holding them together.
Geocentric: An equal sharing of power and responsibility between headquarters and subsidiary.
Multinational organizational structures: imperialist or independent?Ethnocentric: top management is dominated by home-country nationals and procedures and management

Слайд 35Table 5.3 Organization types reflecting cultural predispositions

Table 5.3 Organization types reflecting cultural predispositions

Слайд 36Culture embodied in national institutions

Culture embodied in national institutions

Слайд 37Culture embodied in national institutions
Western Pluralism: emphasizes individual competitiveness, commonly

represented by separate ventures competing in price-defined markets for success.



Command Economies: are centrally planned hierarchies with less individualism and less individual incentive.
Culture embodied in national institutionsWestern Pluralism: emphasizes individual competitiveness, commonly represented by separate ventures competing in price-defined

Слайд 38Organic Ordering: refers to the family-centred hierarchies of Asia, Southern

Europe and Latin America.

Structured Networks: reflect the more equal, structured

relationships between companies and with public sector organizations that exist in some countries.

Culture embodied in national institutions (Continued)

Organic Ordering: refers to the family-centred hierarchies of Asia, Southern Europe and Latin America.Structured Networks: reflect the

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