CULTURE 1 Questions z Does culture matter? 2 Questions z Does culture matter? Business is Business Cultural differences all over the world explain everything Computer subculture Cultural differences is the same all over the world explain everything 3 What is Culture? 4 What is Culture? z … provides members with images of their basic concerns, principles, ethics, and bodies of manners, rituals, ideologies, strategies, and tactics of self-survival including certain notions of good deeds and bad, various forms of folklore and legends … 5 What is Culture? z … The way we give logic to the world begins at birth with the gestures, words, tone of voice, noises, colors, smells, and body contact we experience. . . . Our culture is what is familiar, recognizable, habitual. It is “what goes without saying.” Van Maanen & Laurent, The flow of cultures in Organizaition, Theory, and the multinational croproation, NY, 1993 by Ghoshal and Westney. 6 Are there Types of CULTURE? 7 Are there Types of CULTURE? z Within national boundaries z Cultural attributes which cross boundaries y Arab y Latin America z Some nations have strong internal cultural differences y Canada (English and French) y India (14 official languages in India & hundreds of dialects) 8 Are there Types of CULTURE? z Most nations have intra-regional differences y United States: Northeast, West, South y Germany 9 Are there Types of CULTURE? z Corporate culture y y y y Proctor & Gamble Microsoft Michelin Toyota 10 Are there Types of CULTURE? z Professional culture y Highly structured formal education y On-going professional activities y Cross over national cultures 11 Can Culture be Managed? 12 Can Culture be Managed? z Contrasting views of the World y Organization HAS culture y Organization IS culture 13 Dimensions of National Culture z Hofstede’s dimensions y y y y y Revering hierarchy Individualism / collectivism Taking care of business Risk avoidance Long term orientation 14 HOFSTEDE’S STUDY z 1980 model z 116,000 questionnaires in 50 countries (plus 3 national groups) z Conducted over time -- 1968 & 1973 z One of the 1st empirical studies of culture in organizations z One of the 1st major surveys to substantiate cultural dimensions z Defines national culture through 4 (5) dimensions 15 Revering Hierarchy: Israel 13 Germany 35 Netherlands 38 USA 40 Japan 54 France 68 Hong Kong 68 India 77 West Africa 77 Indonesia 78 China 80 Russia 95 rank and class are less important rank and class are very important 16 Individualism-Collectivism: USA 91 Netherlands 80 France 71 Germany 67 Israel 54 Russia 50 India 48 Japan 46 Hong Kong 25 China 20 West Africa 20 Indonesia 14 Highly individualistic Highly collectivistic 17 Taking Care of Business: Japan 95 Germany 66 USA 62 Hong Kong 57 India 56 China 50 Israel 47 West Africa 46 Indonesia 46 France 43 Russia 40 Netherlands 14 Tough values Paternalistic values 18 Risk Avoidance: Japan 92 Russia 90 France 86 Israel 81 Germany 65 China 60 West Africa 54 Netherlands 53 Indonesia 48 USA 46 India 40 Hong Kong 29 Avoid risk 19 Long-term Orientation: China 118 Hong Kong 96 Japan 80 India 61 Netherlands 44 Germany 31 France 30 USA 29 Indonesia 25 West Africa 16 Russia 10 Israel N/A future orientation past and/or present orientation 20 Cultural Difference: •Pakistan •Venezuela •Hong Kong •China •Japan •Brazil •Singapore •Spain •France •Australia •India •Belgium •Italy •Canada •UK •Sweden •Germany •USA •Netherlands 21 Dimensions of National Culture z Hall’s dimensions (1959, 1976) y Space 22 Dimensions of National Culture z Hall’s dimensions (1959, 1976) y Space y Material Goods 23 Dimensions of National Culture z Hall’s dimensions (1959, 1976) y Space y Material Goods y Friendship 24 Dimensions of National Culture z Hall’s dimensions (1959, 1976) y y y y Space Material Goods Friendship Time 25 Dimensions of National Culture z Hall’s dimensions (1959, 1976) y y y y y Space Material Goods Friendship Time Agreement 26 High-context vs. Low context Communication High Context (implicit) Japanese Arab Latin Chinese Mediterranean Indian Low Context (explicit) American English German Scandinavian 27