Fordham -How effective decision-making is within the IT department - Analysis...
Chapter 4 and 5 Powerpoint
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Chapter 4
The Meanings and
Dimensions of Culture
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Culture
Article: Emphasis on face to face interaction in Japan
International managers need to keep in mind that practices
around the world differ greatly
Culture: acquired knowledge that people use to interpret
experience and generate social behavior; forms values, creates
attitudes, and influences behaviors
Can be learned, shared, transgenerational, symbolic, patterned, and
adaptive
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Cultural Diversity
Centralized v. Decentralized Decision Making
who makes the decisions?
Safety v. Risk
should people make risky decisions?
Individual v. Group Rewards
how does the culture reward success?
High v. Low Organizational Loyalty
do people identify with the employer or the job more?
Cooperation v. Competition
how should employees interact in the workplace?
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US v. Japan v. Germany
Decision Making: US and Germany
are more decentralized, Japan
centralized
Safety v. Risk: US takes most
risk, Germany moderate risk, Japan
focuses on safety
Rewards: US and Germany focus on
individual rewards, Japan focuses on
group rewards
Loyalty: Japan is loyal to
organization, US and Germany loyal
to occupational group
Cooperation v. Competition: Japan
likes cooperation, US and Germany
prefer competition
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Components of culture
The explicit artifacts and products of the society
(buildings, language, food)
The norms and values that guide the society
The implicit , basic assumptions that guide people’s behavior
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Values
Values are basic convictions that people have regarding what is
right and wrong, good and bad, important and unimportant
Can values change over time?
Japanese values seem to be changing after a long term
recession; “era of personal responsibility”
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Hofstede’s Four Dimensions
Dutch researcher GeertHofstede identified four main
dimensions of culture
Power Distance: the extent to which less powerful members of
organizations accept that power is distributed unequally
Uncertainty Avoidance: the extent to which people feel threatened
by ambiguous situations and have created beliefs and institutions
that try to avoid these
High uncertainty avoidance: high need for security and a strong
belief in experts; Germany, Japan
Low uncertainty avoidance: more willing to accept risks; Denmark,
Great Britain
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Hofstede’s Four Dimensions (cont.)
Individualism: the tendency of
people to look after themselves
and their immediate family only
Opposite is collectivism, which
is the tendency to belong to
groups and to look after each
other in exchange for loyalty.
Masculinity: a cultural
characteristic in which the
dominant values in a society are
success, money, and things.
The contrary is
femininity, which is a cultural
characteristic in which the
dominant values are caring for
others and the quality of life.
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Trompenaars Cultural Dimensions
Another view is that of FonsTrompenaars, with five relationship
orientations that address the ways in which people deal with
each other
Universalism v. Particularism
Universalism is the belief that ideas and practices can be applied
everywhere without modification, so they focus on formal rules
Particularism is the idea that circumstances dictate how ideas and
practice should be applied, so they focus more on relationships
and trust
Individualism v. Communitarianism
Communitarianism has the same idea as collectivism
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Neutral v. Emotional
Neutral culture is one in which emotions are held in check (United
Kingdom)
Emotional culture is one in which emotions are expressed openly and
naturally (Mexico and the Netherlands)
Specific v. Diffuse
Specific culture is one in which individuals have a large public space
they readily let others enter and share and a small pricate space they
guard closely and share with only close friends and associates. There is
a strong separation of work and personal life.
Diffuse culture is one in which public space and private space are similar
in size and individuals guard their public space carefully b/c entry into
public space affords entry into private space. Work and private life are
closely linked.
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Achievement v. Ascription:
Achievement cultures focus on how well people perform
Ascription cultures focus on who or what the person is
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US v. Japan v. Germany
US has high individualism and
low power distance, weak
uncertainty
avoidance, moderate degree of
masculinity
Japan has moderate
individualism and moderate
power distance, strong
uncertainty avoidance, and a
very high degree of masculinity
Germany has slightly lower
individualism and low power
distance, moderate uncertainty
avoidance, and a high degree of
masculinity
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Time
Sequential time v. Synchronous time
In cultures that have sequential approaches, people tend to do one
thing at a time, and they follow plans strictly. (United States)
In cultures with synchronous approaches, people do multiple things
at a time and things like appointments are subject to change.
(France and Mexico)
Example: People in the US will keep an appointment, while in
Mexico they might change it if something else comes up.
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Environment
Two views of the environment
Idea that managers are in control of their fate and environment
Dominant in US thought
Idea that they must “go with the flow”
Dominant in Asian nations
Example: US govt urging Japanese car companies to purchase
component parts in order to balance the flow of trade (quid pro
quo)
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GLOBE Project
Global Leadership and Organizational Behavior Effectiveness:
a multicountry study and evaluation of cultural attributes and
leadership behaviors among more than 17,000 managers from
951 organizations and 62 countries; measures cultural
differences
Meta-goal was to develop an empirically based theory to
describe, understand, and predict the impact of specific cultural
variables on leadership and organizational processes and the
effectiveness of these processes.
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Strategic Predispositions
Ethnocentric predisposition: a nationalistic philosophy of
management whereby the values and interests of the parent
company guide strategic decisions
Polycentric predisposition: a philosophy of management whereby
strategic decisions are tailored to suit the cultures of the countries
where the MNC operates
Regiocentric predisposition: a philosophy of management
whereby the firm tries to blend its own interests with those of its
subsidiaries on a regional basis
Geocentric predisposition: a philosophy of management whereby
the company tries to integrate a global systems approach to
decision making
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Meeting the Challenge
Globalization imperative: a belief that one worldwide approach to
doing business is the key to both efficiency and effectiveness
A large number of companies use a large number use the same
strategies abroad as they do at home
(US, Canada, France, Germany, Japan, UK)
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Meeting the Challenge
Factors that help facilitate the need to develop unique strategies for
different cultures, including:
The diversity of worldwide industry standards
A continual demand by local customers for differentiated products
The importance of being an insider
The difficulty of managing global organizations
The need to allow subsidiaries to use their own abilities and
talents and not be restrained by headquarters
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Cross- Cultural Differences and
Similarities
Parochialism: the tendency to view the world through one’s
own eyes and perspectives
Simplification:process of exhibiting the same orientation
toward different cultural groups
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Example of Similarities
Korean firms and US firms
As organizational size inc, commitment declined
As structure became more employee-focused, commitment
increased
the more positive the perception of organizational climate, the
greater the employee commitment
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Differences Across Cultures
Different clusters require a different approach to forming an
effective compensation strategy
Pacific rim countries – incentive plans should be group-based
EU nations (France, Spain, Italy, and Belgium) – similar
compensation strategies
Great Britain, Ireland, and the United States – managers value their
individualism and are motivated by the opportunity for earnings,
recognition, advancement, and challenge
Study – US affiliates used a hybrid form of HRM practices,
where they closely follow local practices when dealing with the
rank and file but even more closely approximate parent-
company when dealing with upper-level management
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Doing Business in China
Technical competence – send
engineers to answer questions in
precise detail
Punctual
Nod to show that they understand
Guanxi; “good connections”
Guanxi represents nepotism, where
individuals in authority make decisions
on the basis of family ties or social
connections rather than objective
indices
Good listening skills
Collective society in which people
pride themselves on being members of
a group
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Doing Business in Russia
Build personal relationship with
partners – personal relationships
are very important
Use local consultants
Different business ethics (giving
bribes)
Could take months for something to
get done, so be patient
Stress exclusivity
Be careful about compromising or
settling things too quickly, because
this is often seen as a sign of
weakness
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Doing Business in India
Be on time for meetings
Unless close, personal questions
shouldn’t be asked
Public displays of affection are
considered inappropriate
The namaste gesture can be
used to greet people
Bargaining for goods and
services is common
Pointing is done with the chin and
beckoning is done with the palm
turned down
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Doing Business in Brazil
Physical contact is an acceptable form
of communication
Face-to-face is preferred as a way to
communicate, so avoid simply e-
mailing or calling
Form a strong relationship before
bringing up business issues (tend not
to trust people)
Appearance is very important
Patience, because many processes
are drawn out
Still be prepared despite the slow
processes and relaxed environments
Hinweis der Redaktion
Which do you think is most effective? How can companies not get stuck in the rut of staying with one predisposition
1 - such as those in broadcasting, where television sets must be manufactured on a country-by-country basis. 2 - as in the case of consumer goods that must meet local tastes. 3 - as in the case of customers who prefer to “buy local.” 4 - as in the case of some local subsidiaries that want more decentralization and others that want less. 5 - as in the case of local units that know how to customize products for their market and generate high returns on investment with limited production output The way that a product is marketed (ex. toothpaste as a cosmetic product or as a cavity-fighter)Germans want advertising that is factual and rationalFrench avoid reasoning or logicBritish value laughter Table on page 130