(1/99 version)
Dimensions of Cultural Variation
With Implications for Management
Written by Professor Robert Bontempo
Columbia University Graduate School of Business
Not to be used or reproduced without express written permission
WHAT IS CULTURE?
1) The man made part of the environment
2) Shared implicit norms
3) “The way we do things around here”
We tend to resolve our perplexity arising out of the experience that other people
see the world differently than we see it ourselves by declaring that these others,
in consequence of some basic intellectual and moral defect, are unable to see
things "as they really are" and to react to them "in a normal way." We thus
imply, of course, that things are in fact as we see them, and that our ways are
the normal ways.
Perception of Time
How late do you have to be to a meeting before some
kind of comment is appropriate?
Time is Important.......Relationships are Important
"time is money"
"time is time"
Clock time...............Relational time............Agrarian
U.S., Japan
Brazil, Arabs
“The meeting is over at 3:00”
“The meeting is over when
everyone has what they need”
Nigerians
"We have a TIME as MONEY metaphor, shown by
expressions like he's wasting time, I have to budget
my time, this will save you time; I've in vested a
lot of time in that; he doesn't use his time
profitably. This metaphor came into English use
about the time of the industrial revolution, when
people started to be paid for work by the amount of
time they put in. Thus, the factory led to the
institutional pairing of periods of time with amounts
of money, which formed the experiential bases of
the metaphor. Since then..the budgeting of time has
spread throughout American culture".
WHAT IS FAIR?
EQUITY ------ EQUALITY ------ NEED
National Cultures
U.S., N. Europe,
Australia
China, Japan
S. America
Organizational Cultures
Investment Banks
Scandinavia
Not for Profits
How does this affect your management practices?
Training
Compensation
Performance Appraisal
Selection
Leadership and Decision Making
1. The Leader solves the problem or makes a decision alone.
2. The Leader obtains the necessary information from subordinates, then decide
on the problem alone.
3. The Leader shares the problem with relevant subordinates individually, then
decides alone.
4. The Leader shares the problem with subordinates as a group, then decides
alone.
5. The Leader shares the problem with subordinates as a group, then promotes
consensus within the group.
Men by their constitutions are naturally divided
into two parties. Those who fear and distrust the
people, and wish to draw all powers from them
into the hands of the higher classes, and those who
identify themselves with the people, have
confidence in them, and consider them the most
honest and safe, although not the most wise
depository of the public interests. In every country
these two parties exist.
POWER DISTANCE
High Power Distance ----------- Low Power Distance
National Cultures
India, Philippines,
Brazil, France
Organizational Cultures
Army,
Catholic Church,
IBM
Denmark, Israel,
New Zealand
Partnerships,
Bhuddist Monastery
Apple Computer
How does this affect your management practices?
INDIVIDUALISM- COLLECTIVISM
Do we identify ourselves as individuals or as members of a group?
Individuals ------------------------------ Groups
National Cultures
N. Americans, N. Europeans------S.Americans, Asians
Organizational Cultures
Sales Forces
Sports Teams
How does this affect your management practices?
Compensation
Reward Systems
Job Design
Self Esteem, self concept, individual style
guilt
duty to ingroup,
shame
RISK ATTITUDES
Risk Avoiders ---------------------------- Risk Seeking
National Cultures
Greece, Portugal,
Singapore
Belgium, Japan
Hong Kong,
Organizational Cultures
Accounting, Production
McDonald’s
Marketing, R&D
Chinese Deli
How does this affect your management practices?
Control Systems
Standardization of Tasks
Structure
HUMAN NATURE
People are Evil / People are Neutral / People are Good
Organizational Cultures
Democrats
Republicans
How does this affect your management practices?
Leadership Style
Control Systems
WHAT HAPPENS WHEN ORGANIZATIONAL
CULTURES COLLIDE?
Four Options:
Segregation
A + B = A/B
The state of nature
Marginalization
A + B = A/b
The state of race relations in the United States
Assimilation
A+B=A
The state of IBM and other “strong culture” firms
Integration
A+B=C
A possibly desirable state
STRATEGY FOR MERGING CORPORATE
CULTURES
Ask two questions.
1) Is this cultural interaction desirable and/or
necessary?
2) Is it essential that we maintain our cultural identity
on this matter?
MAINTAIN IDENTITY?
YES
YES
Assimilation
NO
Segregation
NO
Integration
INXN?
.....