GLOBAL ENVIRONMENT

FOR BUSINESS

Mariella Olivos Ph.D

 The Culture Concept
• Is Complex
• Is Multidimensional

• (Tylor 1881) “ Complex whole which includes

knowledge, belief, art, morals, law custom and
any other capabilities and habits acquired by
man as a member of a society”
 INTRODUCTION
GLOBALIZATION

RELATIONSHIPS BETWEEN COUNTRIES

MORE BUSINESS DIFFERENTS CULTURES

KNOWLEDGE

MULTICULTURAL TEAMS

COMMON CHALLENGES
 Hofstede Model
• Research more than 15 years
• Attitude survey
• IBM subsidiares in 67countries
• 117,000 questionares
• Cultural differences are consistent through
time
• Dimensions analysed from work related values
• Assume standardized organizational culture
 Hofstede Model
• “Culture is the collective programming of the
human mind that distinguishes the members
of one human group from those of another.
Culture in this sense is a system of collectively
held values.”

Software of the mind

 Five Basic problems of Social Life
• Way to live CULTURE

• Cultures are adaptations of a people to the

conditions of life
• We find different cultures in:
– Different Continents
– Different countries
– Different part s of countries
 Problem 1: Identity
The Individual and the group
 Problem 1: Identity
The Individual and the group

• Ranks from Individual • Other names:

Identity ( or Individualism) • Low-context /High context
to group Identity or
Collectivism • Universalist/particularist
• Most wealthy countries: are • Specific/ diffuse
relatively Individualistic
• Internal/external control
• Poorest countries:are
relatively Collectivistic
(adaptation to poverty and • Monochronic/ polychronic
limited resources)
Problem 2: Hierarchy
 Problem 2: Hierarchy
• Degree of Inequality between people that is assumed
to be a natural state of affairs
• Called : Power Distance

• Most wealthy countries: power distance is relatively

low

• Poorest countries: is easy to maintain large power

distance
Problem 3: Gender
 Problem 3: Gender
• Center of gender roles and the control of aggression

• If men and women are more “equal” the result is

more “feminine” society than a “ masculine” society

• Othe names: “care oriented” vs “achievement

oriented”
Problem 4:Truth – UA
 Problem 4:Truth
• Coping with the impredictable and the
ambiguos
• It has to do with anxiety as a basic human
feeling, : the fear of the unknown.

• Uncertainty avoidance as opposed to

Uncertainty Tolerance
Problem 5: Virtue
 Problem 5: Virtue
• Is the choice between future and present
virtue
• Long Term Orientation vs Short Term
Orientation
• Both are related to a society’s attitude toward
time and traditions.
 Hofstede Model
• Power distance: “refers to he extend to which the members of a nation are
willing to accept an unequal distribution of power, wealth and prestige”
• Uncertainty avoidance: “the ways to which human societies have learned
to cope with uncertainty” (different societies have different levels of
tolerance for uncertainty, ambiguity and unfamiliar risks) - high
uncertainty, accept innovative ideas, eccentric or deviant behaviors
• Individualism: “involves the degree to each individuals in a culture are
expected to act independently of other members of society, some societies
individualism is seen as well being while in others as undesirable and
alienating”
• Masculinity “refers to the clear separation of gender roles in society” (high
masculine, very clear – low masculinity unclear)
– Masculine – preference for achievement, heroism, assertiveness and material success
– Feminine - preference for relationship, modest, carrying for the weak and quality of life
Dimention Hostfede Model : Description
The extent to which members of a society accept
Power Distance unequal distribution of power in an organisational
setting

Uncertainty The extent to which members of a society feel

avoidance uncomfortable with unstructured and risky situations

The extent to which members of a society emphasise

Masculinity assertiviness, monetary gains, and other material
possesions.

The extent to which members of a society stress self-

Individualism interests as opposed to collective interests.
The extent to which members of a society stress the
Long Term
need of thrift, perseverance and future-directed
orientation
actions.
 Summary
• The way in which a group of people resolves this 5
issues is what we call culture.
• Because these values are taught from birth , they
manifest themselves in similar ways across social
settings: family, school, workplace and others
• Because culture is so complex and dinamic, problems
of reliability and validity make it very difficult to
meassure
 What are the problems of Hofestede´s view?

• Essentializing” national cultures

– Too homogeneous
– Too static
– Dimentions, who guarantee?
• Point of view of the IBM white man (marketing and sales
man)
• Measuring unquantifiable phenomena
• Ethnocentrism (Eurocentric or “Anglo-Germanic centric
view) => shape people´s subjetivicty
• Culture to blame national issues: “underdevelopment”,
etc.