Culture: What is it

1
Culture What is it?

• Value system
• Norms, beliefs, behaviors
• Common way of thinking
• Societys communicable knowledge
• Societys characteristics passed on generation by
  generation

2
General Issues

• Differences in culture
• Measurement
• Adaptation and Acculturation
• Similarities in culture

3
Hofstedes Dimensions of Culture

• Power Distance
• Small - trusting, less formal organizations
• Large - mistrusting, hierarchical organizations
• Uncertainty Avoidance
• Weak - risk is non-threatening diversity is
  appreciated
• Strong - risk averse, diversity is threatening
• Individualism
• Collectivist - belonging to groups ideal group
  decision making
• Individualist - individual initiative and
  achievement leadership is the ideal
• Masculinity
• Feminine - quality of life people and
  relationships come first
• Masculine - performance money and transactions
  come first

4
Communication and Meaning(Aside from Language)
Low Context
Explicit Written/ Spoken
MEANING
Context Surroundings/ Non-verbal
High Context
5
Implications for Management

• INTERPERSONAL
• Punctuality
• Interpersonal distance
• Tempo of business
• Negotiations
• Bribery
• Linear vs. circular communication
• High vs. low context communication

• ORGANIZATIONAL
• Organizational structure
• Decision making
• Leadership
• Adaptation of products
• HRM policies
• Entry mode choice
• Location of value-creating activities

6
Leadership

• Perceived levels of power
• Quality/characteristics of exchange with
  subordinates
• Communication patterns
• Trust (both ways)
• Delegation of tasks

7
Organizational Structures/Systems

• Formality of policies and rules
• Hierarchical vs. flat organizations
• Mechanistic vs. organic
• Authoritative vs. consensual decision making
• HRM systems
• Accounting systems

8
Interpersonal Relationships

• With
• Customers
• Suppliers
• Subordinates/superiors
• Co-workers

9
Motivation and Reward

• Formation/role of setting goals
• Achievements
• Compensation system
• Job satisfaction
• Organizational commitment

10
Principal Research QuestionJapanese-American
Context

• Job dissatisfaction
• Lack of commitment towards company
• Propensity to quit

?
Cultural Differences
11
Evidence of a Problem?

• If Americans fail on a project, they are never
  given another chance. Yet, Americans are rarely
  explicitly told what their authority is.
• In Japan, formal job descriptions dont exist.
  This can lead to role ambiguity in the U.S.
• One source of frustration for Americans is the
  lack of input in decision making.

12

• Our engineers leave because of the constraints
  placed on innovativeness and flexibility
• I seem to have several bosses, which can be
  confusing.
• My supervisor doesnt spend enough time
  preparing me for this position.
• Theres a lack of open, honest communication.
• I cant make your meeting, Wally, because two of
  our section leaders just quit.

13
Not ALL bad...

• My Japanese boss is the best I ever had.
• The Japanese Vice Presidents treatment of
  people is excellent. I am proud of him and
  respect him.
• Our company is excellent in terms of
  communication and human resources.

14
Leadership is the Key

• The most necessary training ishow to work with
  and manage and American workforce. TMM Executive

15
Culture and the Causal Chain
Negative Attitudinal Outcomes
Intermediate Perceptions
Supervisory Behaviors
Cultural Differences
16
Supervisory Behaviors

• Mentoring
• Psycho-social
• Career-related
• Delegation
• Authority-specific
• Task-related
• Communication
• Effectiveness
• Formalization

• Monitoring
• General
• Corrective
• Intrusive
• Interpersonal Exchange
• Exchange Quality
• Acculturating Exchange
• Abusive Exchange

17
Communication Model
Procedural Justice
Commitment
Communication Effectiveness
Trust
Job Satisfaction
Cultural Difference
Role Ambiguity
Formalized Communication
Low Propensity to Quit
Role Conflict
18
Delegation Model
Procedural Justice
Commitment
Authority Delegation
Trust
Job Satisfaction
Cultural Difference
Role Ambiguity
Task Delegation
Low Propensity to Quit
Role Conflict
19
Mentoring Model
Procedural Justice
Psycho- social Mentoring
Commitment
Trust
Career- related Mentoring
Job Satisfaction
Cultural Difference
Role Ambiguity
Low Propensity to Quit
Job- related Feedback
Role Conflict
20
Monitoring Model
Procedural Justice
Invasive Monitoring
Commitment
Trust
Job Satisfaction
General Monitoring
Cultural Difference
Role Ambiguity
Low Propensity to Quit
Corrective Monitoring
Role Conflict
21
Personal Exchange Model
Procedural Justice
Acculturation Exchange
Commitment
Trust
Job Satisfaction
Exchange Quality
Cultural Difference
Role Ambiguity
Low Propensity to Quit
Abusive Exchange
Role Conflict
22
How to Address Cultural Problems
Negative Attitudinal Outcomes
Chain of causality often neglected
Intermediate Perceptions teachable?
Supervisory Behaviors receive scant attention
in most training programs
Cultural Differences basics commonly understood.
23
International AlliancesStrategic Considerations

• Choice of Entry Mode
• Resource Pooling
• Redundant
• Complementary
• Learning
• Strategic Options
• Impact of Culture

24
International AlliancesManagerial Considerations

• Contract vs. Equity
• Structure
• Learning
• Codifiable vs. Tacit Knowledge
• Combinative Capability
• Absorptive Capacity
• Impact of Culture

25
1984 The NUMMI Alliance
GM
Toyota
NUMMI
26
1986 Application of Knowledge I
GM
Toyota
TMM-K
NUMMI
27
1990 Application of Knowledge II
GM
Toyota
Saturn
NUMMI
28
1999 The Fuel Cell Alliance
GM
Toyota
Alliance
29
Learning Race(s)
GM
Ford
Race 2 Market
Race 1 Market
Toyota
DaimlerChrysler
30
Rate of Learning in Alliances

• Codified vs. tacit knowledge
• Absorptive capacity
• Combinative capability
• Organization of learning

31
Strategic Option View of Alliances
External Forces
Equity Alliance
Internal Forces
Buyout
Dissolution
32
Alliances and Culture

• Entry JVs preferred when
• Target country-market culturally different (CD)
• Initiating firm high UA
• Structure Majority ownership preferred when
• Initiating firm high PD
• Learning Equity preferred when
• Initiating firm high PD

33
Alliances and Culture cont.

• Longevity JVs terminate faster/earlier when
• Partners are culturally different (CD)
• Mistrust Suspicions of poor performance when
• Initiating firm high UA
• Trust Expectations of good performance when
• Partners are culturally similar

34
Culture and Alliances as Options

• Partnership buyouts more likely when
• Initiating firm high PD and UA
• Alliance portfolios
• Japanese hold equity alliances longer
• Japanese hold larger number of smaller alliances
• Japanese more likely to invest further/acquire
  partner
• Americans more likely to spin off partners
  (success)
• Americans faster to terminate alliance (failure)