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PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University
Chapter
The Role of Culture
The specific objectives of this chapter are:
1. DEFINE the term culture, and discuss some of the
comparative ways of differentiating cultures.
2. DESCRIBEthe concept of cultural values, and relate
some of the international differences, similarities, and
changes occurring in terms of both work and
managerial values.
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Chapter
The Role of Culture
The specific objectives of this chapter are:
3. IDENTIFY the major dimensions of culture relevant
to work settings, and discuss their effect on behavior
in an international environment.
4. DISCUSS the value of country cluster analysis and
relational orientations in developing effective
international management practices.
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The Nature of Culture
 Culture

Acquired knowledge that people use to interpret
experience and generate social behavior



forms values
creates attitudes
influences behavior.
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Characteristics of Culture
Learned
Adaptive
Shared
Culture
Patterned
Transgenerational
Symbolic
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Priorities of Cultural Values
Table 4-1
Priorities of Cultural Values: United States, Japan,
and Arab Countries
United States
Japan
Arab Countries
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Freedom
Independence
Self-reliance
Equality
Individualism
Competition
Efficiency
Time
Directness
Openness
Belonging
Group harmony
Collectiveness
Age/seniority
Group consensus
Cooperation
Quality
Patience
Indirectness
Go-between
Family security
Family harmony
Parental guidance
Age
Authority
Compromise
Devotion
Patience
Indirectness
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
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How Culture Affects
Managerial Approaches
Centralized
Decision Making
VS.
Decentralized
Decision Making
In some societies, top managers make all important
organizational decisions. In others, these decisions
are diffused throughout the enterprise, and middleand lower-level managers actively participate in, and
make, key decisions.
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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.
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How Culture Affects
Managerial Approaches
Individual
Rewards
VS.
Group
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.
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How Culture Affects
Managerial Approaches
Informal
Procedures
VS.
Formal
Procedures
In some societies, much is accomplished through
informal means. In others, formal procedures are set
forth and followed rigidly.
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How Culture Affects
Managerial Approaches
High Organizational
Loyalty
VS.
Low Organizational
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.
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How Culture Affects
Managerial Approaches
Cooperation
VS.
Competition
Some societies encourage cooperation between their
people. Others encourage competition between their
people.
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How Culture Affects
Managerial Approaches
Short-term
Horizons
VS.
Long-term
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.
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How Culture Affects
Managerial Approaches
Stability
VS.
Innovation
The culture of some countries encourages stability and
resistance to change. The culture of others puts high
value on innovation and change.
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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
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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
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Values in Culture
French culture
U.S. culture
Adapted from Figure 4–2: Comparing Cultures as Overlapping Normal Distributions
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Values in Culture
French culture
U.S. culture
How the Americans
see the French:
How the French see
the Americans:
•
•
•
•
•
•
•
•
arrogant
flamboyant
hierarchical
emotional
Adapted from Figure 4–3: Stereotyping from the Cultural Extremes
naïve
aggressive
unprincipled
workaholic
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Values in Culture
Table 4-2
U.S.Values and Possible Alternatives
U.S. Cultural Values
Alternative Values
Individuals can influence
the future (when there is
a will there is a way).
Life follows a preordained
Planning and scheduling
course, and, human action is
determined by the will of God.
Individuals should be
realistic in their
aspirations.
Ideals are to be pursued
regardless of what is
“reasonable.”
We must work hard to
Hard work is not the only
accomplish our objectives prerequisite for success.
(Puritan ethic).
Wisdom luck, and time
also are required.
Adapted from Table 4-2: U.S. Values and Possible Alternatives
Examples of Management
Function Affected
Goal setting and career
development
Motivation and reward
system
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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
employee is to the
primary obligation to their
organization.
family and friends.
Loyalty, commitment, and
motivation
Employees can be
removed if they do not
perform well.
The removal of an
employee from a position
involves a great loss of
prestige and will rarely be
done.
Promotion
Company information
should be available to
anyone who needs it
within the organization.
Withholding information to
gain or maintain power is
acceptable.
Organization,
communication, and
managerial style
Adapted from Table 4-2: U.S. Values and Possible Alternatives
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Values in Culture
Table 4-2
U.S.Values and Possible Alternatives
U.S. Cultural Values
Alternative Values
Competition stimulates
high performance.
Competition leads to
unbalances and disharmony.
What works is important.. Symbols and the process
are more important than
the end point.
Adapted from Table 4-2: U.S. Values and Possible Alternatives
Examples of Management
Function Affected
Career development and
marketing
Communication, planning,
and quality control.
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Values in Culture
 There is a reasonably strong relationship between the level of

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
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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
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Hofstede’s Cultural Dimensions
Power
Distance
 Extent to which less powerful members 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
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Hofstede’s Cultural Dimensions
Power
Distance
Uncertainty
Avoidance
 Extent to which people feel threatened by
ambiguous situations and have created
beliefs and institutions that try to avoid such
situations
 High uncertainty avoidance countries: people
have high need for security, strong belief in
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
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Hofstede’s Cultural Dimensions
Power
Distance
Uncertainty
Avoidance
Individualism/
Collectivism
 Individualism: Tendency of people to look after
themselves and their immediate family only
 Countries high in individualism: tend to be
wealthier, support protestant work ethic,
greater individual initiative, promotions
based on market value
 Collectivism: Tendency of people to belong to
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
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Hofstede’s Cultural Dimensions
Power
Distance
Uncertainty
Avoidance
Individualism/
Collectivism
Masculinity/
Femininity
 Masculinity: a culture in which the dominant
social values are success, money and things
 Countries high in masculinity: great
importance on earnings, recognition,
advancement, challenge, and wealth. High
job stress.
 Femininity: a culture in which the dominate
social values are caring for others and the
quality of life
 Countries high in femininity: great
importance on cooperation, friendly
atmosphere, employment security, group
decision making, and living environment.
Low stress and more employee freedom.
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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
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Synthesis of Country Clusters
Adapted from Figure 4–8: A Synthesis of Country Clusters
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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.
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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
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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
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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
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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

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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
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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
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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
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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)

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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
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The GLOBE Project
 The 9 Dimensions of the GLOBE Project:
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
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Uncertainty avoidance
Power distance
Collectivism I: Social collectivism
Collectivism II: In-group collectivism
Gender egalitarianism
Assertiveness
Future orientation
Performance orientation
Humane orientation
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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.
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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
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GLOBE Project
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GLOBE Analysis
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Cases
 A Jumping Off Place (pg. 123)
 Corning Vitro (pg. 211)