International

Management

A C Marcelline ACMA(UK), MBA (HR & Marketing), ACCI, AMITD, TQM & TPM Implementer
Adapted from PowerPoint slides by Prof.R. Dennis Middlemist,
 The Nature of Culture
1. The term culture, and discuss some of the comparative
ways of differentiating cultures.
2. The concept of cultural values, and relate some of the
The Role of Culture
international differences, similarities, and changes
occurring in terms of both work and managerial values.
3. The major dimensions of culture relevant to work
settings, and discuss their effect on behavior in an
international environment.
4. The value of country cluster analysis and relational
orientations in developing effective international
management practices.
 The Nature of Culture
• Culture
– Acquired knowledge that people use to interpret
experience and generate social behavior
• forms values
• creates attitudes
• influences behavior.
Characteristics of Culture

Learned
Learned

Adaptive
Adaptive Shared
Shared

Culture
Culture

Patterned
Patterned Transgenerational
Transgenerational

Symbolic
Symbolic
What are your top 10 values?
• Age/seniority • Freedom
• Authority • Go-between
• Belongingness • Group consensus
• Collectiveness • Group harmony
• Competition • Independence
• Compromise • Indirectness
• Cooperation • Individualism
• Devotion • Hospitality
• Directness • Openness
• Efficiency • Parental guidance
• Equality • Patience
• Independence • Quality
• Family harmony • Self-reliance
• Family security • Time
 Priorities of Cultural Values
Table 4-1
Priorities of Cultural Values: United States, Japan,
and Arab Countries
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. Parental guidance
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

Note: “1” represents the most important cultural value, “10” the least.
Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries
 How Culture Affects Managerial
Approaches
Centralized Decentralized
Decision Making VS. Decision Making
In some societies, top managers make all
important organizational decisions. In others,
these decisions are diffused throughout the
enterprise, and middle- and lower-level
managers actively participate in, and make,
key decisions.
 How Culture Affects Managerial
Approaches
Safety VS. Risk

In some societies, organizational decision

makers are risk averse and have great
difficulty with conditions of uncertainty. In
others, risk taking is encouraged, and
decision making under uncertainty is
common.
 How Culture Affects Managerial
Approaches
Individual Group
VS.
Rewards Rewards
In some countries, personnel who do
outstanding work are given individual rewards
in the form of bonuses and commissions. In
others, cultural norms require group rewards,
and individual rewards are frowned on.
 How Culture Affects Managerial
Approaches
Informal Formal
VS.
Procedures Procedures
In some societies, much is accomplished
through informal means. In others, formal
procedures are set forth and followed rigidly.
 How Culture Affects Managerial
Approaches
High Organizational Low Organizational
Loyalty VS. Loyalty
In some societies, people identify very strongly
with their organization or employer. In others,
people identify with their occupational group,
such as engineer or mechanic.
 How Culture Affects Managerial
Approaches
Cooperation VS. Competition

Some societies encourage cooperation

between their people. Others encourage
competition between their people.
 How Culture Affects Managerial
Approaches
Short-term Long-term
Horizons VS. horizons
Some cultures focus most heavily on short-
term horizons, such as short-range goals of
profit and efficiency. Others are more
interested in long-range goals, such as market
share and technologic development.
 How Culture Affects Managerial
Approaches
Stability Innovation
VS.

The culture of some countries encourages

stability and resistance to change. The culture
of others puts high value on innovation and
change.
 A Model of Culture
The explicit artifacts and
products of the society
The norms and values
that guide the society

The implicit,
basic
assumptions that
guide people’s
behavior

Adapted from Figure 4–1: A Model of Culture

 Values in Culture
• Values
– Basic convictions that people have
• right and wrong
• good and bad
• important and unimportant
– Learned from the culture in which the individual is
reared
– Influence one’s behavior
• Differences in cultural values may result in varying
management practices
 Values in Culture
French culture U.S. culture

Adapted from Figure 4–2: Comparing Cultures as Overlapping Normal Distributions

 Values in Culture
French culture U.S. culture
How the Americans How the French see
see the French: the Americans:
• arrogant • naïve
• flamboyant • aggressive
• hierarchical • unprincipled
• emotional • workaholic

Adapted from Figure 4–3: Stereotyping from the Cultural Extremes

 Values in Culture
Table 4-2
U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples of Management
Function Affected
Individuals can influence Life follows a preordained Planning and scheduling
the future (when there is course, and, human action is
a will there is a way). determined by the will of God.
Individuals should be Ideals are to be pursued Goal setting and career
realistic in their regardless of what is development
aspirations. “reasonable.”
We must work hard to Hard work is not the only Motivation and reward
accomplish our objectives prerequisite for success. system
(Puritan ethic). Wisdom luck, and time
also are required.

Adapted from Table 4-2: U.S. Values and Possible Alternatives

 Values in Culture
Table 4-2
U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples of Management
Function Affected
A primary obligation of an Individual employees have a Loyalty, commitment, and
employee is to the primary obligation to their motivation
organization. family and friends.
Employees can be The removal of an Promotion
removed if they do not employee from a position
perform well. involves a great loss of
prestige and will rarely be
done.
Company information Withholding information to Organization,
should be available to gain or maintain power is communication, and
anyone who needs it acceptable. managerial style
within the organization.

Adapted from Table 4-2: U.S. Values and Possible Alternatives

 Values in Culture
Table 4-2
U.S.Values and Possible Alternatives
U.S. Cultural Values Alternative Values Examples of Management
Function Affected
Competition stimulates Competition leads to Career development and
high performance. unbalances and disharmony. marketing
What works is important.. Symbols and the process Communication, planning,
are more important than and quality control.
the end point.

Adapted from Table 4-2: U.S. Values and Possible Alternatives

 Values in Culture
• There is a reasonably strong relationship between the level of success
achieved by managers and their personal values.
• Value patterns predict managerial success and could be used in
selection and placement decisions.
• Although there are country differences in the relationships between
values and success, findings across four countries (U.S., Japan,
Australia, India) are quite similar.
• Values of more successful managers appear to favor
– Pragmatic, dynamic, achievement-oriented
– Active role in interaction with others
• Values of less successful managers tend toward
– Static and passive values
– Relatively passive roles in interacting with others
 Hofstede’s Cultural Dimensions
Power
• Extent to which less powerful members
Power
Distance
Distance of institutions and organizations accept
that power is distributed unequally
– High power distance countries: people
blindly obey the orders of their superiors,
centralized and tall organization structures
– Low power distance countries: flatter and
decentralized organization structures,
smaller ratio of supervisors
 Hofstede’s Cultural Dimensions
• Extent to which people feel threatened by
Power
Power ambiguous situations and have created beliefs and
Distance
Distance institutions that try to avoid such situations
– High uncertainty avoidance countries: people
Uncertainty
Uncertainty have high need for security, strong belief in
Avoidance
Avoidance experts and their knowledge, structured
organizational activities, more written rules,
less risk taking by managers
– Low uncertainty avoidance countries: people
are more willing to accept risks associated with
the unknown, less structured organizational
activities, fewer written rules, more risk taking
by managers, higher employee turnover, more
ambitious employees
 Hofstede’s Cultural Dimensions
• Individualism: Tendency of people to look after
Power
Power themselves and their immediate family only
Distance
Distance
– Countries high in individualism: tend to be
Uncertainty wealthier, support protestant work ethic, greater
Uncertainty
Avoidance individual initiative, promotions based on
Avoidance
market value
Individualism/
Individualism/ • Collectivism: Tendency of people to belong to
Collectivism
Collectivism groups or collectives and to look after each other in
exchange for loyalty
– Countries high in collectivism: tend to be
poorer, less support for protestant work ethic,
less individual initiative, promotions based on
seniority
 Hofstede’s Cultural Dimensions
• Masculinity: a culture in which the dominant
Power
Power social values are success, money and things
Distance
Distance
– Countries high in masculinity: great
Uncertainty importance on earnings, recognition,
Uncertainty
Avoidance advancement, challenge, and wealth. High job
Avoidance
stress.
Individualism/
Individualism/ • Femininity: a culture in which the dominate social
Collectivism
Collectivism values are caring for others and the quality of life
– Countries high in femininity: great importance
Masculinity/
Masculinity/ on cooperation, friendly atmosphere,
Femininity
Femininity employment security, group decision making,
and living environment. Low stress and more
employee freedom.
 Attitudinal Dimensions of Culture
• Work value and attitude similarities
– Smallest space analysis (SSA) yields clusters of countries
similar to each other
1. Anglo-American (U.S., U.K., Australia)
2. Nordic (Norway, Finland, Denmark)
3. South American (Venezuela, Mexico, Chile)
4. Latin European (France, Belgium)
5. Germanic (Germany, Austria, Switzerland)
• Other researchers have found other clusters,
depending on variables used
 Synthesis of Country Clusters

Adapted from Figure 4–8: A Synthesis of Country Clusters

Trompenaars’ Cultural Dimensions
Universalism VS. Particularism

• Universalism: belief that ideas and practices can

be applied everywhere in the world without
modification
– In countries with high universalism, focus is more on
formal rules, business contracts are adhered to
closely, people believe “a deal is a deal”
– Includes Canada, U.S., Germany, U.K., Netherlands,
France, Japan, Singapore, Thailand, and Hong Kong.
Trompenaars’ Cultural Dimensions
Universalism VS. Particularism

• Particularism: belief that circumstances dictate

how ideas and practices should be applied and
something cannot be done the same
everywhere
– In countries with high particularism, legal
contracts often modified, well-acquainted people
often change the way in which deals are executed
– Includes China and South Korea
Trompenaars’ Cultural Dimensions
Individualism VS. Communitarianism

• Individualism: people regard themselves as

individuals
– In countries high on individualism, people stress
personal and individual matters, and are more likely to
make negotiated decisions on the spot by a
representative, achieve things alone and assume great
personal responsibility
– Includes Canada, Thailand, U.K., U.S., Netherlands,
France, Japan, China, Singapore, and Hong Kong
Trompenaars’ Cultural Dimensions
Individualism VS. Communitarianism

• Communitarianism: people regard themselves

as part of a group
– In countries high on communitarianism, people
value group-related issues, refer decisions to
committees, achieve things in groups and jointly
assume responsibility
– Includes Malaysia and Korea
Trompenaars’ Cultural Dimensions
Neutral VS. Emotional

• Neutral: culture in which emotions are held in

– In high neutral culture countries, people try not to show their
feelings, act stoically and maintain their composure
– Includes Japan and the U.K.
• Emotional: culture in which emotions are expressed openly and
naturally
– In high emotional culture countries, people smile a great deal,
talk loudly when excited and greet each other with
enthusiasm
– Includes Mexico, the Netherlands and Switzerland
Trompenaars’ Cultural Dimensions
Specific VS. Diffuse

• Specific culture: individuals have a large public

space shared with others and a small private
space they guard closely and share only with
close friends and associates
– In high specific cultures, people are more open
and extroverted, and there is a strong separation
of work and private life
– Includes Austria, U.K., U.S. and Switzerland
Trompenaars’ Cultural Dimensions
Specific VS. Diffuse

• Diffuse culture: public and private space are

similar in size, individuals guard public space
carefully because it is shared with private space
– In high diffuse cultures, people often appear to be
indirect and introverted, and work and private life
often are closely linked
– Includes Venezuela, China, and Spain
Trompenaars’ Cultural Dimensions
Achievement VS. Ascription

• Achievement culture: status is accorded based

on how well people perform their functions
– Includes Austria, U.S., Switzerland and the U.K.
• Ascription culture: status is based on who or
what a person is
– Includes Venezuela, Indonesia, and China
Trompenaars’ Cultural Dimensions
Time
• Sequential approach
– People do only one activity at a time, keep appointments
strictly, prefer to follow plans as laid out (United States)
• Synchronous approach
– People tend to multi-task, view appointments as approximate,
schedules are seen as subordinate to relationships (France,
and Mexico)
• Present oriented/future oriented
– Future is more important (U.S., Italy, and Germany
– Present is more important (Venezuela, Indonesia, and Spain
– All three time periods equally important (France and Belgium)
Trompenaars’ Cultural Dimensions
The Environment

• Inner-directed: people believe in controlling

outcomes
– Includes U.S., Switzerland, Australia, Belgium,
Indonesia, Hong Kong, Greece, Singapore, and
Japan
• Outer-directed: people believe on letting things
take their own course
– Includes China and many other Asian countries
 The GLOBE Project
• The 9 Dimensions of the GLOBE Project:
– Uncertainty avoidance
– Power distance
– Collectivism I: Social collectivism
– Collectivism II: In-group collectivism
– Gender egalitarianism
– Assertiveness
– Future orientation
– Performance orientation
– Humane orientation
 GLOBE Results
• Corresponds generally with those of Hofstede and
Trompenaars.
• Different from Hofstede in that many more researchers
with varied perspectives were involved (vs. Hofstede
working alone); studied many companies vs. Hofstede’s
IBM.
• GLOBE provides a current comprehensive overview of
general stereotypes that can be further analyzed for
greater insight.
 GLOBE Project
• Multi-country study and evaluation of cultural
attributes and leadership behavior
• Based on beliefs that
– Certain attributes that distinguish one culture from others
can be used to predict the most suitable, effective and
acceptable organizational and leader practices within that
culture
– Societal culture has direct impact on organizational culture
– Leader acceptance stems from tying leader attributes and
behaviors to subordinate norms
GLOBE Project
GLOBE Analysis