CHAPTER 2CULTURAL FOUNDATIONS OF

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

LECTURE NOTES

This chapter examines the role of culture in managing people across borders. It identifies the several important dimensions for gaining insights and understanding about the cultures of employees that staff organizations domestically and abroad. It also addresses the different views about how global and regional economic integration have affected and will affect the different dimensions of culture.

LEARNING OBJECTIVES

• Understand the concept of culture, the numerous ways to define culture and the how culture influences global workforce management.

• Explain the four dimensions of Hofstede’s Cultural Model and their implications for managing a global workforce.

• Explain the 7 dimensions of Trompenaars and Hampden-Turner’s Cultural Model and how it varies from Hofstede’s Cultural Model.

• Explain the different views about how global and regional economic integration have affected and will affect the different dimensions of culture, including convergence, divergence and crossvergence.

• Know how to plan for cultural challenges in various business contexts, such as, international mergers and acquisitions.

I. INTRODUCTION

Culture is central to the study and preparation for effectively managing a global workforce. Culture is often a source of conflict than of synergy. National and organizational culture can have a pervasive, powerful influence in organizations, and in various aspects of global workforce management. Without proper knowledge of different cultures, a merged company will not be able to achieve the expected synergy.

II. UNDERSTANDING CULTURE

Culture is defined as the socially transmitted behavior patterns, norms, beliefs and values of a given community. Culture affects and governs all facets of life by influencing values, attitudes and behaviors of a society.

A. Scope

It should be noted that culture is not just a national phenomenon. Culture can also extend to “communities” of age groups (e.g., retired persons), disabled persons (e.g., the legally blind), individuals holding similar religious beliefs, and work professions. The concept of culture can

Chapter 2 – 1

also extend to individual organizations, as communities, that through common experience over time develop their own distinct set of values, norms, priorities, and beliefs, e.g., “the way we do things in our organization.”

B. Cultural Variations

We must remember that within cultures there can be considerable variation, and we must not expect every individual to behave in a manner consistent with general cultural characteristics in every situation. Also, even though a general cultural characteristic may be accurate for individuals in most situations, they are also able to adapt their behaviors to the needs of a particular situation. Although there is value in learning about general cultural characteristics and tendencies to help guide our sense making of otherwise puzzling or even offensive behaviors we encounter, we also must be careful not to form rigid perceptions and fall into the mistake of simply relying on stereotypes.

1. Necessary Individual Assessment

Although general cultural patterns may be useful especially in first learning and gaining insights about a given culture, these patterns must be continually challenged and refined. Ultimately, to be effective in managing human resources at home and abroad, we must get to know, manage, and assess employees on an individual level.

III. MAJOR MODELS OF CULTURE

In this book culture is defined as a system of values and norms that are shared among a group of people and that, taken together, constitute a design for living. While values are abstract ideas and convictions about what people believe, norms are prescribed behaviors that are acceptable in a specific society. Both values and norms are influenced by many factors such as religion, language, social structures, education, etc. The following section will introduce two commonly used models of culture with their managerial implications.

A. Hofstede’s Cultural Dimensions and Managerial Implications

Geert Hofstede defined national culture as the set of collective beliefs and values that distinguish people of one nationality from those of another. In his original comprehensive study that he conducted while working at IBM as a psychologist and involving over 100,000 individuals from 50 countries and three regions, Hofstede identified four important dimensions in national culture.

1. Uncertainty Avoidance

This Hofstede dimension refers to the extent to which people feel comfortable when they are exposed to an ambiguous or uncertain situation. People in a low uncertainty avoidance society are more willing to take risks and appreciate flexibility and informality in the workplace. In contrast, people in a high uncertainty avoidance society tend to be risk-averse, and favor rigid and formal decision-making processes in the workplace.

Chapter 2 – 2

Implications. The perceived difference in tolerating uncertain situations has several important implications at both macro and micro levels.• Innovation. First, at the macro level, the acceptance of uncertainty is essential for

innovation because it requires a tolerance for risk and change.• Flexibility. Second, at the micro or organizational level, in high uncertainty avoidance

societies, numerous formal internal rules and regulations exist to control the work process of employees. In low uncertainty avoidance societies, managers are allowed to exercise more latitude and discretion in their decision-making rather than relying on rigid internal rules and regulations.

2. Power Distance

Power distance refers to what extent people have an equal distribution of power. In a large power distance culture, power is concentrated at the top in the hands of relatively few people while people at the bottom are subject to decisions and instructions given by superiors. Conversely, in a small power distance culture power is rather equally distributed among the members of the society.

(a) High Power Distance. Managers in high power distance societies tend to believe in giving subordinates detailed instructions with little room for interpretation. Subordinates are supposed to respect the authority and superiority of upper management. Thus, the “mechanistic characteristics” of high power distance cultures, such as inequality among the members in the society, lack of free communication across different levels of the hierarchy, and centralized control can all stifle employee creativity and new ideas.

(b) Low Power Distance. In contrast, “organic characteristics,” such as lack of hierarchical authority and less centralization, tend to promote employee interaction, lateral communication, and less emphasis on the rules. Non-directive, hands-off monitoring systems have often been implemented to allow the creativity and exploration necessary for successful innovation.

3. Individualism vs. Collectivism

(a) Individualism. Individualism means that people seek and protect their own interests over the common goal of the society and their role in the society. In an individualistic culture, people are comfortable with having the authority to make a decision based on what the individual thinks is best. In individualistic societies, employees are provided with a great deal of personal freedom and autonomy.

(b) Collectivism. In a collectivistic culture, people tend to belong to groups or collectives and look after each other in exchange for loyalty.

Discouraging Innovation. Collective cultures do not usually allow the freedom and independence necessary for organizational members to think creatively and, thereby, fail to cultivate an environment that fosters an innovative spirit.• Another element in a collective culture that discourages innovation is the

reluctance to accept variety and diversity in society.

Chapter 2 – 3

• The overwhelming and unconscious pressure for conformity and uniformity in collective cultures does not cultivate an environment for diversity, and provides less room for people to deviate from established norms, thus impeding the innovation process.

4. Masculinity vs. Feminity

(a) Masculinity. Hofstede believes that the masculine dimension is very closely related to the concept of achievement motivation. A masculine culture is basically a performance driven society where rewards and recognition for performance are the primary motivational factors for achievement.

This type of culture tends to give the utmost respect and admiration to the successful achiever, who fulfills his ambition and demonstrates assertiveness and willingness to take risks in order to achieve goals. Top management positions are usually filled with men who tend to display characteristics of dominance and assertiveness—which tend to be discouraged among women by societal gender norms.

(b) Feminity. On the other hand, in feminine cultures people tend to emphasize the quality of the “whole” life rather than money, success, and social status, which are easier to quantify. They are willing to reach out to the underprivileged and share their wealth with them. Overall, organizations with a feminine culture are not as competitive as those with a masculine culture, since the former places higher priority on concern for others and little distinction is made between men and women in the same position.

5. Confucianism Dynamism

Using a different survey instrument called the Chinese Value Survey (CVS), Hofstede and Bond identified a new cultural dimension, “long-term versus short-term orientation,” that strongly reflects Confucianism, a cultural backbone of East Asian countries. Hofstede emphasized that this particular cultural dimension was missing in his original study and only relevant to countries in East Asia. Confucian dynamism may reflect a society’s search for virtue rather than truth, truth being driven by religious ethics in Western countries.

(a) Long-term Orientation. Long-term orientation captures the following elements: adaptation of tradition to the modern context, high savings ratio driven by thrift, patience and perseverance towards slow results, and concern with respecting the demand of virtue.

(b) Short-term Orientation. On the other hand, a short-term orientation contains the following aspects: respect for traditions, lower savings rate, quick results orientation, and concern with possessing the truth.

6. Criticisms

Hofstede’s research has received several criticisms.

Chapter 2 – 4

(a) Cultural Influence. First, the research may have been culturally bound since his research team, composed of Europeans and Americans, may have unintentionally influenced the analysis of the answers by their Western perspective.

(b) Multiple Cultures. Second, as mentioned already regarding regional and local subcultures, many countries have more than one culture. For example, the US has multiple regional and local subcultures, as the country consists of various ethnic groups and regional traditions, which a strong emphasis on local autonomy and individual states rights. Therefore, it may be presumptuous to generalize a certain country’s culture.

(c) Cultural Changes. Most importantly, his findings may have lost explanatory power over the years since culture is not static and changes over time, albeit slowly.

B. Trompenaars and Hampden-Turner’s Seven Cultural Dimensions

Adopting Parsons’s five relational orientations as their starting point, Trompenaars and Hampden-Turner identified seven important cultural dimensions. They mainly viewed culture as the way in which a group of people solves problems and reconciles dilemmas.

1. Universalism vs. Particularism

(a) Universalism. Universalism is a belief that there exists only one single management principle that should be applied to all situations.

People from universalistic cultures tend to believe that their way of doing business or managing people is the universal one and best way, and should be adopted by all other countries. Those from universalistic cultures also tend to believe in absolute justice and truth, and extend great resources to their protection.

People from universalistic cultures flourished in earlier years when global product standardization and mass-production was in vogue, but faced great challenges and immediate need to adapt when world consumers began to demand customization to individual needs and tastes.

(b) Particularism. Conversely, particularistic cultures highlight the peculiarity and distinctiveness of a country’s culture that is different from those of other countries. Both at a country and individual level, the emphasis is upon building long-term relationships and being sensitive and responsive to the unique circumstances surrounding that relationship.

2. Diffuse vs. Specific

This cultural dimension concerns perceptions regarding private versus public space and how each is handled. In specific cultures, people clearly separate public space from private space.

(a) Diffuse. In diffuse cultures, the distinction between private and public space is rather unclear and blurry. Everything is related and business is just another form of social interaction. Business relationships are expected to be enduring and spill over into personal relationships and vice versa.

Chapter 2 – 5

Furthermore, for diffuse cultures the size of public space is almost equal to that of private space. Therefore, in diffuse cultures, people tend to reserve even their public space (e.g., professional work situations) for those with whom they are familiar, since accepting the entry of unknown people could also mean the uncomfortable opening of their private space.

(b) Specific. Specific cultures tend to compartmentalize public and private life into separate roles, where one role does not influence another.

3. Achievement vs. Ascription Cultures

(a) Achievement. Achievement cultures value personal competency and an outcome resulting from individual hard work. What matters most in an achievement culture is an objective track record of individual accomplishment.

(b) Ascription. In contrast, an ascription culture means that people are conferred a certain status based on specific characteristics such as title or position, age, and profession. People in an ascription culture value personal connections and family background more than the individual’s qualifications. They expect those in authority to act in accordance with their roles ascribed to them by fate or a divine power; actual performance and results are less important. Appearance accorded by title and status is more important than substance driven by individual qualification.

(c) High Context vs. Low Context. This concept corresponds to high context versus low context cultures as defined by Hall, particularly regarding interpersonal communications

Low Context. In low-context countries, communication relies more heavily on the literal meaning of words used—as with the achievement orientation, words are judged by their own merit. Meanings of written and spoken communication are more direct and explicit.High Context. In high-context cultures, much more of the context surrounding or related to the written or spoken communication is involved in conveying the message, including timing and physical surroundings.

4. Individualism vs. Collectivism

As Hofstede identified this term, individualism refers to the culture that emphasizes the interests of self or of his/her own immediate family. In contrast, communitarianism, a synonym for collectivism as used by Hofstede, emphasizes group (e.g., team of employees) interests before individual interests, and seeking group consensus in decision making.

5. Emotional vs. Neutral

People in affective cultures are not hesitant to reveal their innermost feelings while people in neutral cultures tend to control their emotions very carefully and maintain their composure. People in neutral cultures may consider the behaviors of people from emotional cultures immature while people from emotional cultures may view the stoic behaviors of people from neutral cultures as insincere and deceiving. This perception may cause problems during cross-cultural negotiations between managers from emotional and neutral cultures.

Chapter 2 – 6

6. Time Orientation

People across cultures may deal with the concept of time in a different manner. Time orientation contains two different connotations.

(a) Time Use. First, the time dimension is related to how people actually use time. A monochronic or sequential approach to time means that people use time in a linear way. Time is perceived as being a tangible asset almost like money. In contrast, a polychronic or a synchronous approach to time suggests that people use time in a circular way. People in polychronic cultures such as French and Italian tend to have a more flexible view about time and can handle multiple agenda at a time. Furthermore, they consider that maintaining human relations is more important than keeping schedules. Accordingly, they do not clearly separate their work from pleasure and do not mind mixing both.

(b) Orientation. Another time-related difference concerns people’s orientation to past, present, and future. This orientation points to whether or not people are likely to see the future as an extension of the past.

7. Orientation to Nature

This cultural dimension concerns how people in a society orient themselves to nature. First, people can think that human beings are supposed to dominate nature. Second, some people believe that they need to live in harmony with nature. A third and final orientation toward nature is a sense of subjugation to nature.

VI. CULTURAL CONVERGENCE vs. DIVERGENCE

One of the main characteristics of culture is that it is not static but in continual evolution. Accordingly, there are different views about how global and regional economic integration have affected and will most likely continue to affect the different dimensions of culture that we have examined.

A. Global Cultural Convergence

Globalization refers to an increasing integration of market as well as production processes across borders. Rapid innovation of technology and decreased trade and investment barriers have made it possible for firms to launch and market their products simultaneously to many different countries.

B. Localization and Cultural Divergence

Cultural convergence implies that as nations become industrialized, there is a significant change in values toward behaviors that embrace free-market capitalism. This supposition suggests that through the imperatives of industrialization and economic development, the value systems of managers become increasingly similar.

Chapter 2 – 7

• There is growing evidence of a convergence effect in international business and management practices, especially with regard to strategic planning.

• Such a view manifests a universalism orientation that calls for a unified single approach to different country circumstances.

C. Glocalization and Cultural Cross-Convergence

1. Glocalization

Convergence and divergence perspectives may represent polar extremes. As most firms are struggling to find the optimal trade-off between globalization and localization, i.e., “glocalization,” perhaps the reality is closer to a more balanced or middle-ground view called “crossvergence,” or intermixing of cultural systems between different countries.

2. Cultural Cross-Convergence

Crossvergence means that different management approaches are expected to converge in the middle. Globalization of the world economy made it possible for countries to learn from each other, and studying and benchmarking business approaches that work in other countries are effective ways of getting new ideas in the area of management and organization. There is an increasing interest in combining indigenous and Western cultures in the practice and development of management and organization internationally. This trend is particularly true of the transitional economies of the former Soviet bloc, China, and other developing countries.

V. FINAL CAVEATS ON CULTURAL AND GLOBAL WORKFORCE MANAGEMENT

Whatever position one may take among the various cultural orientations previously discussed, it is hard to deny the fact that cultural differences still exist across borders. It is probably true that we often tend to overemphasize cultural differences, suggesting a distinctive approach to conducting businesses in each country. As many consultants and even academics commonly suggest a ready-made formula such as a “dos and don’ts” list for correctly handling cultural differences, people are easily trapped in a pitfall hyper-sensitivity, in which they tend to overrate or exaggerate the influences of cultural differences.

A. Look for Mundane Explanations

More often than not, we tend to search for an easy answer based on nationality whenever different behaviors are shown among people from different cultural backgrounds. However, as mentioned earlier, stereotypes regarding national culture may not always be accurate and should be exercised with great caution. Therefore, it is imperative that when you sense a cultural distinction, look first for a mundane, ordinary explanation before attributing the cause to deep cultural differences.

B. Individual Variance

Chapter 2 – 8

Individuals also differ in the internalizations of what their national culture means and do not always act in accordance with generalizations regarding their national culture. Although people from different cultures probably tend to demonstrate similar actions and behaviors under specific circumstances, it would be naive to assume that all people from a certain culture will follow the same pattern of behaviors.

C. Appreciate Commonalities

The level of a country’s industrial development, its cultural values, and the level and nature of its cultural interactions may all play a part in the nature of its human resources management practices and their appropriateness to the economic and cultural context within which they operate. While we should be sensitive to cultural differences, we should appreciate the commonalities of our human family and be careful not to overestimate the impact of cultural differences. One must be aware of the possibility of cultural differences and what they might be, but one must also use this awareness cautiously and not over-generalize and lose sight of the individual, which should be the primary focus for making accurate and fair human resource decisions.

NOTES FOR OPENING SCENARIO AND CASES

OPENING SCENARIO: INTERNATIONAL MERGER MISERY AT DAIMLERCHRYSLER

1. Consider Hofstede’s quote mentioned earlier: “Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” How was this quote applicable to the opening scenario concerning the Daimler-Benz merger with Chrysler?

This case illustrates how significant differences in both national culture and organizational culture can lead to conflict and greatly add to the difficult challenges involved in merging two organizations. The two organizational cultures had their own histories and accustomed rules and expectations about acceptable behavior. In addition, there were deep-seated national culture differences that greatly affected the way executives and employees thought and viewed the world. This cross-cultural difficulty is behind the more recent decision by Daimler-Benz to sell Chrysler.

2. From your reading of this chapter, what are the major fundamental differences between German and U.S. cultures, and how were these differences manifested in the respective companies’ practices and behaviors?

One major difference is the German culturally based general preference for control to avoid uncertainty, whereas the U.S. employees allowed much greater levels of work flexibility, decentralization, and delegation. In addition, the Americans possessed a greater sense of individuality, which is noted in the American leaders’ preference for greater work autonomy as well as more individually distinguished and much higher levels of compensation relative to lower-level employees than was noted with the German executives.

Chapter 2 – 9

3. What lessons can you take from this opening scenario for your planning of future international mergers and acquisitions?

This case points to the importance of taking into consideration possible cultural differences and their consequences in planning for a merger or some other kind of cross-border alliance. In particular, the additional time and expense for overcoming cross-cultural challenges should be considered in obtaining a more accurate cost-benefit analysis prior to choosing the alliance strategy. And when a merger is deemed justified, more effective measures for cross-cultural training and ongoing management should be carefully planned.

CASE 2.1: CROSS-CULTURAL ASSESSMENT OVER A CUP OF COFFEE

1. Why do you think people tend to exaggerate cultural differences?

People generally have a need to understand and master the world around them. In situations involving international business, which typically are already filled with uncomfortable uncertainty, people are quick to grab a broad explanation that they can generalize and use in the future to build a better sense of coping with uncertainty. Broad general cultural trends are stereotypes that provide an initial level of understanding yet tend to oversimplify and exaggerate cultural differences.

2. What are the most effective ways to deal with either real or imaginary cultural differences?

Important ways to deal with perceived cultural differences (real or imaginary) include not trying to find fault with another country’s cultural practices while asserting the superiority of one’s own, and to simply accept that the country’s culture has worked well for a lot of people and isn’t necessary bad. In addition, it is very important to hold back final judgments about individuals in a foreign culture, and observe their behavior to determine how much it conforms to the general cultural patterns or stereotypes that you have formed. Often just a little additional experience will prove initial impressions and cultural generalizations completely unfounded. Such additional experience and observations you have with an open mind will likely result in revised and refined understanding of cultural differences, as well as a greater appreciation for people as individuals who show a broad range of human differences within a particular culture.

3. Do you have any similar experiences that indicate we should be very cautious in interpreting and generalizing cross-cultural differences?

Note: In responding to this question you can facilitate class discussion based on students’ experiences abroad in forming initial stereotypes, and then revising them based on subsequent observations and meaningful cross-cultural interactions. In many cases students remark that eventually culturally differences seem to disappear as they learn to appreciate and accept one another as unique human beings with much more interests and characteristics in common than are different.

Chapter 2 – 10

CASE 2.2: CULTURE CONFLICT SOUTH OF THE BORDER, DOWN MEXICO WAY

1. What particular dimension or dimensions of culture seem to be most central to the problems that Jim is experiencing?

A major cultural dimension that is related to Jim’s problems is power distance, where Jim is used to a much smaller power distance culture with associated behaviors than prevails in Mexico. Another important dimension is high versus low context, where Jim seems oblivious to the importance of reading the broader context or situation of his work and relationships.

2. What are possible causes of Jim’s ineffectiveness in leading his sales team? What are sources of Jim’s deteriorating relationship with his boss, Carlos?

A primary cause of Jim’s ineffectiveness is his reliance on his past strengths and style to carry him to success in a new culture, where those strengths and style will not be successful unless adapted appropriately. His sales team is used to high power distance, where Jim is their boss and should make the important decisions. His relationship with Carlos likely suffers due to Jim’s failure in private and public to show what Carlo’s would perceive as respect for his higher position as Jim’s boss. He also fails to read the various situations of his work to determine when the most appropriate time is to give particular public communications.

3. In a coaching meeting with Jim, what insights would you share with him about cross-cultural differences that might be at the root of his problems? How should Jim behave differently to help improve his present difficulties at work?

Jim should be coached on the need to develop a greater sensitivity to what is going on around him—to become more high-context in style—to be sure his communications are tactful and appropriate. In public meetings where Carlos is in charge, Jim should consider deferring to Carlos due to his higher position, and then giving suggestions to Carlos in private. To obtain input from his sales team, Jim should look for more culturally acceptable and indirect ways for them to come up with ideas for improvements that don’t conflict with their need to show respect for his higher position.

SAMPLE TEST QUESTIONS

Note: Corresponding page numbers from the text follow the answers.

MULTIPLE CHOICE QUESTIONS

1. What are the two major components of culture?a. Food and Pop Musicb. Consciousness and Subconsciousnessc. Behavioral and Cognitived. Societal and Political

Answer: C, 38.

Chapter 2 – 11

2. In addition to understanding national and local cultures, what must managers of MNCs understand and be able to manipulate in order to best serve their company?

a. Organizational Cultureb. Community Culturec. Workforce Self-Identity Awarenessd. Regional Culture

Answer: A, 38.

3. Which of the following cultural factors is the most difficult to learn?a. Dressb. Foodc. Normsd. Values

Answer: D, 39.

4. Which of Hofstede’s cultural dimensions was added last to his system?a. Individualism vs. Collectivismb. Confucian Dynamismc. Power Distanced. Uncertainty Avoidance

Answer: B, 39.

5. Erik is a manager for a German manufacturing firm that specializes in automotive racing parts. His team has been recently asked to work with some Italian engineers on a joint venture. Initially, Erik experienced problems with his Italian counterparts. He could not understand their high-risk approach to engineering and did not like their informal procedures. Erik and his team are mostly risk-averse and operate on a very detailed oriented manner. Which of the following cultural dimensions best describes Erik and his team?

a. Individualisticb. Power Equalc. High Uncertainty Avoidanced. Masculine

Answer: C, 40.

6. Chan and his management team in Shanghai, China often take calculated risks. They enjoy working a lot on intuition. They take chances with new projects, and Chan likes to employ a top-down approach which favors looking at the big picture verse the small details. Every evening, Chan and his team have dinner and drinks together at a local restaurant in order to foster better team relations. Unlike some Chinese managers, Chan insists that his employees call him by his first name and encourages them to see him about both work and personal issues. He is more like a friend/mentor to his employees than a direct boss. Which of the following cultural dimensions best describes Chan and his management style?

a. Collectivist and Feminineb. Low Uncertainty Avoidance and Power Equalc. Masculine and Power Distantd. High Uncertainty Avoidance and Power Distant

Chapter 2 – 12

Answer: B, 40.

7. Lower-level employees in host countries often feel uncomfortable with expatriate managers from the United States who attempt to establish more participative and egalitarian management practices. This is an example of which of the following cultural dimensions at work?

a. Collectivismb. Power Distancec. Masculinityd. Uncertainty Avoidance

Answer: B, 41.

8. Cultures where employees value the group more than the individual and where relationships and networks are more important than achievements can be characterized by which of the following cultural dimensions?

a. Collectivism and Ascriptionb. Collectivism and Femininityc. Universalism and Specificd. Affective and Mono-chronic

Answer: A, 42, 47.

9. Bjorn is a banker in Finland. He lives with his wife, Christa, and their two children. Although Bjorn is extremely busy with his work and very well received and respected in the Finish business community and is a major player in banking industry in Finland, he still spends a lot of his time caring for the children, while Christa also works as a business professional in a separate field. Bjorn often cooks, cleans the house, and does other domestic duties while Christa attends international conferences. This couple’s culture can be described as which of the following dimensions?

a. Individualisticb. Achievement-basedc. Feminined. Neutral Culture

Answer: C, 42.

10. A culture’s concern about public verse private spaces and how each space is handled has to do with which of the following cultural dimensions?

a. Achievement vs. Ascriptionb. Universalism vs. Particularismc. Affective vs. Neutral Cultured. Specific vs. Diffuse Culture

Answer: D, 47.

11. This kind of culture values competition, achievement, and very specific gender roles, while always celebrating the glory of the winner, and never empathizing with the disappointment of the loser.

a. Feminineb. Masculine

Chapter 2 – 13

c. Collectivistd. Power Distant

Answer: B, 42.

12. Susan was recently fired from IBM on a foreign assignment to India from Headquarters because as soon as she arrived in Deli, she began to instruct, very pedantically, her local workers on how IBM does business in the United States, and that the way IBM conducts business in the United States is the only favorable and correct way of conducting business. She believed this strongly and communicated it forcefully to her local workers. There was a backlash, the bottom line fell dramatically, and corporate decided to have her replaced. What cultural dimension best describes Susan’s world outlook?

a. Universalismb. Achievementc. Ascriptiond. Collectivist

Answer: A, 46.

13. Jose is a real estate developer in Argentina. His usual day consists of working in the morning, heading out to meet clients for lunch and to show properties. Then he goes home and naps in the late afternoon before going back to the office to finish up before supper. When John, an American developer, came to Argentina to meet with Jose, he was upset when Jose was always 15 to 20 minutes late for all appointments, and that sometimes during their meetings, Jose would be talking on the phone or dealing with other people at the same time. After John expressed his reservations about Jose’s punctuality, Jose was taken aback because he simply did not understand John’s obsession with timeliness. In this example, which cultural dimension is most relevant and which dimension does Jose represent?

a. Time Orientation, Poly-chronic timeb. Time Orientation, Mono-chronic timec. Collectivism, Poly-chronic timed. Collectivism, Mono-chronic time

Answer: A, 49.

14. Globalization of markets causes which of the following to occur?a. Capitalismb. Cultural Convergencec. Anarchyd. Freedom of Information

Answer: B, 51

15. The theories that human should dominate his/her natural surroundings or that human should live in harmony with his/her natural surroundings are best described in which cultural dimension?

a. Affective vs. Neutralb. Power Distancec. Uncertainty Avoidanced. Orientation to Nature

Chapter 2 – 14

Answer: D, 50.

16. Bill is a manager in a U.S. based firm. He thrives on his ability to achieve better performance standards than his fellow managers, and encourages his employees to work alone on nascent projects. He also likes to make decisions by himself, and often ignores other’s comments at meetings. Bill is ________?

a. Collectivistb. Individualistic and Achievement Basedc. Individualistic and Ascription Basedd. Power Distant and Achievement Based

Answer: B, 47.

17. Globalization leads to convergence which leads to which of the following strategic implications?

a. Cultural Divergenceb. Product Differentiationc. Global Integrationd. National Differences

Answer: C, 51.

18. Glocalization is the premise for which of the following?a. Cultural Convergenceb. Crossvergencec. Divergenced. Integration

Answer: B, 52.

19. A culture’s long-term vs. short-term orientation and their values based on the Chinese Value Survey is characteristic of which cultural dimension?

a. Affective vs. Neutralb. Individualism vs. Collectivismc. Time Orientationd. Confucian Dynamism

Answer: D, 43.

20. Highly emotional cultures are what kind of cultures?a. Affectiveb. Collectivistc. Power Equald. Poly-chronic

Answer: A, 48.

21. People in ________ culture tend not to have a clear-cut distinction between private and public space.

A. SpecificB. Individualistic

Chapter 2 – 15

C. AffectiveD. Diffuse

Answer: A, 47.

22. ________ addresses different roles expected of superiors versus subordinates.a. Uncertainty AvoidanceB. Power DistanceC. MasculinityD. Collectivism

Answer: B, 41.

TRUE/FALSE QUESTIONS

1. According to Geert Hofstede and his study of the national cultures, culture is more often a source of conflict than of synergy.

Answer: True, 37.

2. Managing cultural differences is only a small part in a large myriad of problems in the management of a global workforce, and can often times be a secondary priority.

Answer: False, 37.

3. Culture affects and governs all facets of life by influencing the values, attitudes, behaviors, subconscious motives, and technical facility of the people in a society.

Answer: False, 37.

4. Culture is defined as a system of values and norms that are shared among a group of people, and that, taken together, constitute a design for living, but taken separately, constitute moral directions for daily life decisions.

Answer: False, 39.

5. General stereotypes and general cultural patterns are basically the same thing and should be treated and analyzed as such.

Answer: False, 38.

6. Cultural divergence was particularly prominent in recent works that have challenged the universalism of U.S.–based principles of human resource management.

Answer: True, 52.

7. The United States is an individualistic, masculine, achievement-based culture but is poly-chronic in time orientation.

Answer: False, 49.

8. Time Orientation deals with punctuality, timeliness, and different culture’s perception of time and appointment schedules.

Answer: True, 49.

Chapter 2 – 16

9. Expatriation and Repatriation of employees for MNCs can sometimes be greatly affected both positively and negatively by affective versus neutral cultural differences, especially when those differences are polar.

Answer: True, 48.

10. Masculinity and Femininity has to do with Male vs. female and not the specification of gender roles.

Answer: False, 42.

11. Crossvergence is the phenomenon of cultures becoming more localized, less homogenous, and is a result of globalization.

Answer: False, 52.

12. Crossvergence and Cultural Convergence are essentially the same concept, one caused by Globalization and results in integration, the other caused by glocalization and results in balance between globalization and integration.

Answer: False, 52,

13. Confucian Dynamism deals with long-term and short-term orientation, and can affect behaviors, action, and management styles.

Answer: True, 43,

14. Cultures who dislike probability statements and are averse to risk is low on uncertainty avoidance.

Answer: False, 40,

15. Mexico and India are examples of power distant cultures because of their high attention to rank, seniority, and the division between management and labor, partially a result of long cultural histories of both countries.

Answer: True, 41.

16. Individualistic countries are generally achievement-based cultures, are usually masculine, with high power distance, and affective culture, although time orientation varies greatly.

Answer: False, 41.

17. Collectivist countries generally value group activity and relationship nurturing, and tend to make decisions slower and in team form.

Answer: True, 42.

18. Universalism is generally consistent with individualism and specific cultures such as the United States and Japan.

Answer: False, 46.

19. In diffuse cultures, the distinction between public and private space is often unclear and blurry.

Answer: True, 47.

Chapter 2 – 17

20. In ascription cultures, people are generally conferred to a certain status based on age, position, profession, and family background.

Answer: True, 47.

ESSAY QUESTIONS

1. Identify six different dimensions of national culture, and describe for each dimension one influence that it can have on HR management and workforce practices.Answer: 39–50.

2. What is cultural convergence, and how does it differ from cultural divergence? How is each phenomenon manifest in global workforce practices?Answer: 50–52.

3. Define the concepts of “glocalization” and “crossvergence.” What are examples of each of these concepts in today’s global workplace?Answer: 52–54.

Chapter 2 – 18