Mgt 485 CHAPTER 5

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Mgt 485CHAPTER 5

• CULTURE

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FYI

• 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/

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Imports 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
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Exports through the Census Bureau (no export
qty restrictions)
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Additional 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

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Understanding Culture
Individual
Group
Personality
Culture
Manners Rituals Symbols Artifacts Customs Behavior
Rights Traditions
Beliefs Values Assumptions Expectations
Norms Values Expectations
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Perspectives 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

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The 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

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Management Approaches Affected by Cultural
Diversity
Cultural Diversity
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Nature 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
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Comparing Cultures as Overlapping Normal
Distribution Figure 5-2
French Culture
U.S. Culture
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Stereotyping 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
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Value 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
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Value 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

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Hofstedes 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

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• 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

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• 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

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• 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

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Attitudinal 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

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A Synthesis of Country Cultures
Figure 5-8
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Comparing Dimensions
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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

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• 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

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• 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

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• 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

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Time

• 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

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• 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

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Variations in Time Orientation
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• 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

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Trompenaars 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
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Trompenaars 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
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Trompenaars 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
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Trompenaars 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
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Trompenaars 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
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Environment

• Inner Directed
• Believe in controlling outcomes
• U.S.
• Outer Directed
• Believe in letting things take their own course
• Asian Cultures

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Other Cultural Dimensions

• Institutional Collectivism
• In-group Collectivism
• Gender Egalitarianism
• Assertiveness
• Power Distance
• Performance Orientation
• Future Orientation
• Uncertainty Avoidance
• Humane Orientation

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Variations in Human Nature
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Variations in Relations to Nature
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Variations in Activities
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Variations in Relationships
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Variations in Spacial Orientation
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IKEA case

• Strength from mastery of value chain
• unique design capabilities
• unique sourcing
• tightly controlled logistic

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IKEA case

• Can a companys national culture become a
  source of competitive advantage?

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IKEA 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

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IKEA case

• Strategic Sourcing
• Marketing Mix

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IKEA case

• Management - Informal, open, caring
• Participatory HR
• How did Germany react?
• France?
• U.S.?

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IKEA case

• Lessons?
• Appeal to customers needs wants
• convenience
• Staged
• Focused
• Potato field approach
• Luck boldness