The Role of Culture in International Management

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The Role of Culture in International Management

• HA 390 Module 2

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Culture

• Helps us organize our world
• Shared values, understandings, assumptions and
  goals (values, beliefs, norms)
• Learned from earlier generation
• Imposed by present members of society

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Principles for Studying Other Cultures

• Individuals may not conform
• Differences may not be culturally based
• Understand your own culture first
• Continuums
• Few fall at the extremes, most are somewhere in
  the middle

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Stereotyping/ Sociotyping

• Mental files
• Natural
• Useful
• Can be misused

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Ethnocentrism

• Belief that one's cultural values, beliefs and
  norms are better than those of another culture are

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Principles Summary

• 4 Principles for studying cultures
• Individuals may not conform
• Differences may not be culturally based
• Understand self first
• Continuums
• Stereotyping
• Natural, potentially useful or harmful mental
  files
• Ethnocentrism
• Belief that ones own culture is best

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Team Work

• Find several examples that demonstrate how
  culture affects management functions such as
  planning, organizing, directing and controlling
• Find examples of how culture affects management
  style
• Find several examples of how business practices
  differ across cultures
• Prepare to present findings to class

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Country Profile
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Cultural Characteristics

• Understand the ways culture can differ
• Understand ourselves
• Understand others
• Value different points of view
• Develop shared values, beliefs and norms

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What do you think?

• Are subordinates the same kind of people as
  management?
• Should the boss know all the answers?
• Is it ok for the boss to have privileges such as
  drinking coffee on the job that the front line
  workers do not have?
• Is it ok to call the boss by his/her first name?
• Which type of boss do you think is best - one
  that is autocratic, persuasive or paternalistic,
  or democratic?

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Power Distance

• High Power Distance
• Order of inequality
• Special privileges
• Subordinates are different from superiors
• Boss should know all

• Low Power Distance
• Minimize inequalities
• Equal rights
• Subordinates and superiors are equals
• Ok for boss to ask subordinates for answers

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Power Distance Comparisons
Average 51
High
Low
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High Power Distance Employee Expectations

• Wrong to disagree with the boss
• Paternalistic (father-like) management style
• Boss should know all the answers
• Boss should have more privileges

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What do you think?

• Do you think it is ok for employees to disagree
  and even argue with their boss?
• Do you think time has a monetary value or it is
  something that just exists?
• Do you prefer a boss who lays out the rules
  clearly and specifically to you in written format
  or do you prefer one that only sets out basic
  rules and assumes you will perform appropriately?
  Why?
• If you needed a marketing plan, would you hire a
  hospitality marketing specialist, a general
  marketing specialist or would you do it yourself?
  
• How do you react when your boss tells you s/he is
  going to make changes in the way things are done?
  

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Uncertainty Avoidance

• High
• Avoid risks
• Dissonance is dangerous
• Time is money
• Need written rules and regulations
• Believe in experts

• Low
• Willing to take risks
• Accept disagreements
• Time is free
• Prefer common sense to rules
• Logic and common sense better than expert
  opinions

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Uncertainty AvoidanceAverage64
High avoidance of risk
Willing to take risks
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Individualism Collectivism

• Extended families, loyalty, protection
• Identity in the social system
• Expertise, order, duty, security provided by the
  in-group
• Group decisions

• Responsible for self and immediate family
• Identity based on the individual
• Autonomy, variety, pleasure and individual
  financial security
• Individual decisions

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Individualistic Collective
Average 51
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Collective
Individualistic
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Affect of High Uncertainty Avoidance on Employees

• Career stability
• Rules, regulations, direction
• Consistency
• Avoid conflict/disagreement
• Resist change
• Fear of failure
• May appear less ambitious
• Stable employees

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What do you think?

1. Do you live to work or work to live?
2. What are your feelings about who should do what
   at home? How do you view the responsible of each
   spouse for taking care of the children?
3. Do you feel a sense of responsibility to help
   when you see a homeless person begging? What is
   your philosophy on giving to the poor?
4.  Would you take your family out of a home and
   community they love where they are surrounded by
   friends and family for a new position that offers
   you a considerably higher salary?
5. How would you rank yourself on the
   masculine/feminine continuum?
6. How do your feelings contrast with others you
   know?

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Masculine/Feminine

• Feminine
• Quality of life
• Relationships
• Concern for weak
• Work to live
• Men Women nurture
• Disapprove of high achievers

• Masculine
• Material success
• Ambition, assertive
• Competitive
• Live to work
• Women are nurturers
• Achievement

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Masculine
Feminine
Average 51
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Particularistic Universalistic

• Focus more on relationships than rules
• Legal contracts easily modified
• Changing mutualities honored
• Reality is relative to participant
• Relationships evolve

• Focus on rules rather than relationships
• Legal contracts should be honored
• Word and legal contracts honored
• One reality, one truth
• A deal is a deal

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Percent who prefer universalistic system
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Team Discussion

• How would the expectations of employees from a
  particularistic culture differ from those of a
  universalistic culture?
• Which system do you prefer? Why? What is the
  value of each of these systems?

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What do you think?

1. Do you think Americans respected John Kennedy,
   Jr. because of what he accomplished or because of
   his family?
2. Do you think many people voted for our current
   president because of his father?
3. Would you have the same level of respect as a
   hospitality manager as a relative of Bill
   Marriott or Roy Crock would?
4. What difference do you think the school you
   attended make in your career after you have been
   working in the field at least five years?

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Achievement Ascription

• Respected for what you do
• Respect of superior based on performance
• Limited use of titles
• Senior managers vary in age and gender, qualified
  by achievements

• Respected for who you are
• Respect for superior seen as commitment to the
  organization
• Extensive use of titles
• Senior managers are male, middle-aged, qualified
  by background (who they are)

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Ascription Achievement
Respect depends on family background Percent who
disagree
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What do you think?

1. Do you believe you can control your life or do
   you believe you have to accept the ways things
   are?
2. Is your life pre-destined?
3. Do you have a fate over which you have little or
   no control?
4. How do other people you know differ in their
   believes about controlling fate or destiny?

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Locus of Control

• Internal
• Belief in ones ability to control fate
• Respect for conflict and resistance
• Focus on self rather than others
• Discomfort with lack of control

• External
• Belief that something outside oneself is in
  control
• Harmony and responsiveness
• Focus on other
• Comfortable with changes

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Control Fate Percent who believe they are
captains of their fate
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Neutral/Affective

• Neutral
• Hide feelings
• Tension accidentally revealed
• Admire poise
• Avoid hugs, broad smiles and broad gestures
• Monotone

• Affective
• Openly reveal emotions
• Expressive
• Animated expressions
• Touching, and broad gestures admired
• Expression and emotion

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Diffuse (High context)/Specific (low context)

• Diffuse (high context)
• Indirect
• Evasive, tactful, ambiguous
• Context more important than words
• Highly situational morality
• Prefer neutral expressiveness
• Report conclusions at end

• Specific (low context)
• Direct, to the point
• Precise, blu8nt
• Words more important than context
• Consistent moral stands regardless of
  circumstances
• Prefer animated expression
• Report conclusions and important points first

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Cultural Dimensions Summary

• Power Distance how should the boss act
• Uncertainty Avoidance rules or common sense
• Masculine/Feminine material rewards or quality
  of life
• Individualism/Collectivism I versus we
• Universalistic/Particularistic treat all
  equally versus do favors for friends

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Cultural Dimensions Summary

• Achievement/Ascription respect for what you do
  or respect for who you are
• Locus of Control I am in control of my destiny
  versus outside forces are in control
• Neutral/Affective hide versus display emotions
• Diffuse/Specific (high/low context) indirect
  versus direct communication