Title: Mgt 485 CHAPTER 5
1Mgt 485CHAPTER 5
2FYI
- HTS Service Codes (still used by some countries,
but not US) - 4 digit code
- Section 98 and 99 (after misc.)
- 9875 management consulting services
- HTS Manual, 2004 / 2005 does not include service
- Example of specific information
- http//www.sellingtothegovernment.net/form_product
_codes.asp - http//www.officialexportguide.com/
3Imports through U.S. Intntl. Trade Commission
(USITC)
http//www.ita.doc.gov/td/tic/tariff/country_tarif
f_info.htm http//r0.unctad.org/trains/200120Egyp
t.htm http//www.amcham.org.eg/dbe/trade.asp
4Exports through the Census Bureau (no export
qty restrictions)
5Additional Internet Sites
- http//dir.yahoo.com/regional/countries/
- http//globaledge.msu.edu/ibrd/ibrd.asp
- http//www.ciesin.org/IC/wbank/wtables.html
- http//lcweb2.loc.gov/frd/cs/cshome.html
- http//www.atlapedia.com/index.html
- http//www.nationmaster.com/
- http//www.census.gov/foreign-trade/faq/sb/sb0008.
html - http//www.usitc.gov/tata/index.htm
- http//www.trade.gov/td/tic/tariff/resources.htm
- http//unstats.un.org/unsd/cr/registry/
- http//www.census.gov/foreign-trade/statistics/pro
duct/enduse/exports/index.html - http//library.uncg.edu/depts/docs/international/i
ntermkt.html
6Understanding Culture
Individual
Group
Personality
Culture
Manners Rituals Symbols Artifacts Customs Behavior
Rights Traditions
Beliefs Values Assumptions Expectations
Norms Values Expectations
7Perspectives on Culture
- Interaction with our surroundings (and
organizational systems) - Hofstede
- Work values and roles (interaction with the
organization) - Ronen, Kraut and Shenkar
- Interpersonal relationships
- Trompenaar
8The Nature of Culture (cont.)
- Values in Culture
- Values
- Basic convictions that people have regarding what
is right and wrong, good and bad, important and
unimportant - Research has identified both differences and
similarities in values of different cultural
groups - Values in transition
- Changes taking place in managerial values as a
result of both culture and technology - Research on Japanese managers
- Individualism on the rise in Japan
9Management Approaches Affected by Cultural
Diversity
Cultural Diversity
10Nature of Culture
Learned Culture is acquired by learning and
experience Shared People as a member of a group,
organization ,or society share culture Transgenera
tional Culture is cumulative, passed down from
generation to generation Symbolic Culture is
based on the human capacity to symbolize Patterned
Culture has structure and is integrated Adaptive
Culture is based on the human capacity to change
or adapt
11Comparing Cultures as Overlapping Normal
Distribution Figure 5-2
French Culture
U.S. Culture
12Stereotyping from the Cultural Extremes
- How Americans see the French
- arrogant
- flamboyant
- hierarchical
- emotional
- How French see Americans
- naive
- aggressive
- unprincipled
- workaholic
French Culture
U.S. Culture
13Value Priorities
United States Japan
Arab Countries
1. Freedom 1. Belonging 1. Family
Security 2. Independence 2. Group Harmony
2. Family Harmony 3. Self-Reliance 3.
Collectiveness 3. Paternalism 4.
Equality 4. Age/Seniority 4. Age 5.
Individualism 5. Group Consensus 5.
Authority 6. Competition 6. Cooperation
6. Compromise 7. Efficiency 7.
Quality 7. Devotion 8. Time
8. Patience 8. Patience 9. Directness
9. Indirectness 9. Indirectness 10.
Openness 10. Go-between 10. Hospitality
Values- basic convictions that people have
regarding what is right and wrong, good and
bad, important or unimportant
14Value Differences and Similarities Across Cultures
- Differences
- U.S. managers value tactful acquisition of
influence - Japanese managers value deference to superiors
- Korean managers value forcefulness and
aggressiveness - Indian managers value nonaggressive pursuit of
objectives - Australian managers value low-key approach with
high concern for others
- Similarities
- Strong relationship between managerial success
and personal values - Value patterns predict managerial success
- Successful managers favor pragmatic,
achievement-oriented values while less successful
managers - prefer static and
- passive values
15Hofstedes Dimensions of Culture
- Power Distance (Large or Small)
- The extent to which less powerful members of
institutions accept that power is distributed
unequally - Large (Mexico, South Korea, India)
- blindly obey order of superiors
- hierarchical organizational structure
- Small (U.S., Denmark, Canada)
- decentralized decision making
- flat organizational structures
16- Uncertainty Avoidance (High or Low)
- The extent to which people feel threatened by
ambiguous situations - High( Germany, Japan, Spain)
- high need for security
- strong beliefs in experts
- Low (Denmark, UK)
- willing to accept risks
- less structuring of activities
17- Individualism (vs. Collectivism)
- The tendency of people to look after themselves
and their immediate family only - strong work ethic
- promotions based on merit
- U.S., Canada, Australia
- Collectivism
- The tendency of people to belong to groups and to
look after each other in exchange for loyalty - weaker work ethic
- promotions based on seniority
- China, South American cultures
18- Masculinity (Vs. Femininity)
- the dominant values in society are success, money
and things - emphasis on earning and recognition
- high stress workplace
- Japan
- Femininity
- the dominant values in society are caring for
others and the quality of life - employment security
- employee freedom
- Scandinavian cultures
19Attitudinal Dimensions of Culture
- Work Value and Attitude Similarities
- Research has revealed many similarities in both
work values and attitudes - Ronen and Kraut
- Smallest space analysis (SSA) - maps the
relationship among countries by showing the
distance between each on various cultural
dimensions - Can identify country clusters
- Ronen and Shenkar
- Examined variables in four categories
- Importance of work goals
- Need deficiency, fulfillment, and job
satisfaction - Managerial and organizational variables
- Work role and interpersonal orientation
- Identified eight country clusters and four
independent countries
20A Synthesis of Country Cultures
Figure 5-8
21Comparing Dimensions
22 Trompenaars Cultural Dimensions Interpersonal
Relationships
- Universalism vs. Particularism
- Universalism the belief that ideas and
practices can be applied everywhere without
modification - U. S., Germany, and Sweden
- Particularism the belief that circumstances
dictate how ideas and practices should be
applied. - Spain and Japan
23- Individualism Vs. Collectivism
- Individualism refers to people regarding
themselves as individuals - U.S., UK, and Sweden
- Collectivism refers to people regarding
themselves as part of a group - Japan and France
24- Neutral Vs. Affective
- Neutral emotions are held in check
- Japan and the U.S.
- Affective emotions are openly and naturally
expressed - Mexico, Netherlands, and Switzerland
- Specific Vs. Diffuse
- Specific individuals have a large public space
and a small private space - UK, U. S., and Switzerland
- Diffuse both public and private space are
similar in size - Venezuela, China, and Spain
25- Achievement Vs. Ascription
- Achievement people are accorded status based on
how well they perform their functions - U.S., Switzerland, and UK
- Ascription status is attributed based on who or
what a person is - Venezuela and China
26Time
- Past or Present-Oriented Vs. Future-Oriented
- Past or present-oriented emphasize the history
and tradition of the culture - Venezuela, Indonesia, and Spain
- Future-oriented emphasize the opportunities and
limitless scope - that any agreement can have
- U. S., Italy, and Germany
27- Sequential Vs. Synchronous Time
- Sequential time is prevalent, people tend to
do only one activity at a time, keep appointments
strictly, and prefer to follow plans - U.S.
- Synchronous time is prevalent, people tend
to do more than one activity at a time,
appointments are approximate, and schedules are
not important - Mexico and France
28Variations in Time Orientation
29- Environment
- Inner-directed
- People believe in controlling environmental
outcomes - Outer-directed
- People believe in allowing things to take their
natural course - Cultural Patterns or Clusters
- Defined groups of countries that are similar to
each other in terms of the five dimensions and
the orientations toward time and the environment
30Trompenaars Cultural GroupsTable 5-5
Individualism
x
x Communitarianism Specific relationship
x
x Diffuse relationship
Universalism
x
x Particularism
Neutral relationship
x Emotional relationship
x Achievement
x
x Ascription
31Trompenaars Cultural GroupsTable 5-5
Individualism Communitarianism x
x x x
x Specific relationship Diffuse relationship
x x x
x x Universalism Part
icularism x x
x x
x Neutral relationship x
x x
x Emotional relationship
x Achievement Ascription
x x x
x x
32Trompenaars Cultural GroupsTable 5-5
Individualism x
x
x Communitarianism Specific
relationship Diffuse relationship x
x x
x Universalism Particularism
x x
x x Neutral
relationship x x
x Emotional relationship
x Achievement
x x Ascription
x x
33Trompenaars Cultural GroupsTable 5-5
Individualism
x Communitarianism x
x
x Specific relationship x
x Diffuse relationship
x
x Universalism
x x
x Particularism
x Neutral relationship
x Emotional
relationship x x
x Achievement
x Ascription
x x
x
34Trompenaars Cultural GroupsTable 5-5
Individualism
x Communitarianism x
x x Specific
relationship x
x x Diffuse
relationship
x Universalism x
x x
x Particularism
Neutral relationship x
x Emotional relationship x
x Achievement
x x
x Ascription
x
35Environment
- Inner Directed
- Believe in controlling outcomes
- U.S.
- Outer Directed
- Believe in letting things take their own course
- Asian Cultures
36Other Cultural Dimensions
- Institutional Collectivism
- In-group Collectivism
- Gender Egalitarianism
- Assertiveness
- Power Distance
- Performance Orientation
- Future Orientation
- Uncertainty Avoidance
- Humane Orientation
37Variations in Human Nature
38(No Transcript)
39Variations in Relations to Nature
40Variations in Activities
41Variations in Relationships
42Variations in Spacial Orientation
43IKEA case
- Strength from mastery of value chain
- unique design capabilities
- unique sourcing
- tightly controlled logistic
44IKEA case
- Can a companys national culture become a
source of competitive advantage?
45IKEA case
- Can a companys national culture become a
source of competitive advantage? - If yes, then it also must be that a companys
national culture can become a source of
competitive disadvantage
46IKEA case
- Strategic Sourcing
- Marketing Mix
47IKEA case
- Management - Informal, open, caring
- Participatory HR
- How did Germany react?
- France?
- U.S.?
48IKEA case
- Lessons?
- Appeal to customers needs wants
- convenience
- Staged
- Focused
- Potato field approach
- Luck boldness