the role of culture in international management
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Export Management and International Business ManagementTRANSCRIPT
The Role of Culture in International Management
HA 390 Module 2
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
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
Stereotyping/ Sociotyping
Mental files Natural Useful Can be misused
Ethnocentrism
Belief that one's cultural values, beliefs and norms are better than those of another culture are
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 one’s own culture is best
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
Country Profile
Cultural Characteristics
Understand the ways culture can differ
Understand ourselves Understand others Value different points of view Develop shared values, beliefs and
norms
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?
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
Power Distance Comparisons
81
6154
49
40 3835
28
0
10
20
30
40
50
60
70
80
90
Mex
ico
Tai
wan
Jap
an
Sou
th A
fric
a
US
A
Net
her
lan
ds
Gre
at B
rita
n
Irel
and
HighLow
Average = 51
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
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?
Uncertainty AvoidanceHigh 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
112
92
82
69
5349 46
3529
0
20
40
60
80
100
120G
reec
e
Jap
an
Mex
ico
Tai
wan
Net
her
lan
ds
Sou
th A
fric
a
US
A
Gre
at B
rita
in
Hon
g K
ong
Uncertainty AvoidanceAverage=64
High avoidance of risk Willing to take risks
Individualism Collectivism Responsible for self
and immediate family Identity based on the
individual Autonomy, variety,
pleasure and individual financial security
Individual decisions
Extended families, loyalty, protection
Identity in the social system
Expertise, order, duty, security provided by the in-group
Group decisions
Individualistic Collective Average =51
89
80
46
3025
17
91
0
10
20
30
40
50
60
70
80
90
100U
SA
Gre
at B
rita
in
Net
herl
ands
Japa
n
Mex
ico
Hon
g K
ong
Tai
wan
Collective
Individualistic
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
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?
What do you think?
Masculine/Feminine
Masculine Material success Ambition,
assertive Competitive Live to work Women are
nurturers Achievement
Feminine Quality of life Relationships Concern for weak Work to live Men & Women
nurture Disapprove of high
achievers
95
69 6663 62
57
45
14
5
0
10
20
30
40
50
60
70
80
90
100
Japa
n
Mex
ico
Gre
at B
rita
in
Sout
h A
fric
a
USA
Hon
g K
ong
Tai
wan
Net
herl
ands
Swed
en
Masculine FeminineAverage = 51
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
Percent who prefer universalistic system
93
90
88
68
64
37
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?
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?
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)
Ascription Achievement58
79
81
81
87
89
Hong Kong
Japan
China
Mexico
USA
UK
Respect depends on family backgroundPercent who disagree
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?
Locus of Control
Internal Belief in one’s 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
Control Fate: Percent who believe they are captains of their fate
Venezuela
JapanHong Kong
S Korea Netherlands UKUSA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
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
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
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
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