Culture and Management
MGT 3310
Background

Globalization
◦ Production Collaboration

Diversity
◦ Employees from different culture

World Market
◦ Different taste from different culture
Culture
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Culture refers to the beliefs, values, behavior and
material objects that, together, form a people's way of
life.
Culture determines how we view the world around us
Culture includes the traditions we inherit and pass on to
the next generation
Culture: totality of our shared language, knowledge,
material objects, and behavior
© Copyright 2010 Alan S. Berger
3
Characteristics of Culture
Culture is shared.
2. Culture is learned.
3. Culture is taken for granted.
4. Culture is symbolic.
5. Culture varies across time and place.
1.
Norms
Specific cultural expectations for how to
behave in a given situation.
 A society without norms would be in
chaos; with established norms, people
know how to act, and social interactions
are consistent, predictable, and learnable.
 Social sanctions are mechanisms of social
control that enforce norms.

Beliefs
Shared ideas people hold collectively
within a culture.
 Beliefs are the basis for many of a
culture’s norms and values.
 Beliefs orient people to the world by
providing answers to otherwise
imponderable questions about the
meaning of life.

Values
Abstract standards in a society or group
that define the ideal principles of what is
desirable and morally correct.
 Values determine what is considered right
and wrong, beautiful and ugly, good and
bad.
 Values can provide rules for behavior, but
can also be the source of conflict.

Languages
Language
Percent of World Population
Mandarin
12.44%
Spanish
4.85%
English
4.83%
Arabic
3.25%
Hindi
2.68%
Bengali
2.66%
Portuguese
2.62%
Russian
2.12%
Japanese
1.80%
German
1.33%
Religions
Five largest religions
% of world population
Christianity
33%
Islam
19.6%
Hinduism
13.4%
Chinese folk religion
6.4%
Buddhism
5.9%
Cultural Dimensions

Geert Hofstede’s work in IBM
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◦
◦
◦
1978-83
More than 100,000 employees
53 countries
Highlight essential patterns of thinking, feeling,
and acting
◦ Five Dimensions
 individualism, masculinity, power distance, and
uncertainty avoidance, long-term orientation
Power Distance

Power Distance reflects the degree to which a culture
believes how institutional and organizational power
should be distributed (equally or unequally) and how
the decisions of the power holders should be viewed
(challenged or accepted).
◦ Climate, measured by geographical latitude. Cultures
in high-latitude climate (moderate or cold climates)
tend to have low PDI scores. Cultures that have
tropical climate tend to have high PDI scores.
◦ Population. Generally, the more people within the
culture, the greater the power distance is likely to be.
◦ Distribution of Wealth. The more unequally the
wealth is distributed within a culture, the greater the
culture's power distance.
Individualism Versus Collectivism

Individualism-Collectivism describes
the degree to which a culture relies on
and has allegiance to the self or the
group.
◦ Economic development. Wealthy cultures
tend to be individualistic, whereas poor
cultures tend to be collectivistic.
◦ Climate. Cultures in colder climate tend to
be individualistic, whereas cultures in warmer
climates tend to be collectivistic.
Masculinity Versus Femininity

Masculinity-Femininity indicates the
degree to which a culture values such
behaviors as assertiveness, achievement,
acquisition of wealth or caring for others,
social supports and the quality of life.
◦ Members of high MAS cultures believe that
men should be assertive and women should
be nurturant. Sex roles are clearly
differentiated, and sexual inequality is seen as
beneficial.
Uncertainty Avoidance

Uncertainty Avoidance refers to the
extent to which a culture feels threatened
by ambiguous, uncertain situations and
tries to avoid them by establishing more
structure.
◦ The fundamental issue here is how a society
deals with the fact that the future can never
be known: should we try to control the future
or just let it happen?
Long-term VS. short-term
orientation
Confucian Dynamism by Michael H.
Bond
 Later work with Bond produced another
dimension meant to explain the rapid
economic development of many Asian
countries.

Long-term VS. short-term
orientation
Societies with a short-term orientation generally
have a strong concern with establishing the
absolute Truth. They are normative in their
thinking. They exhibit great respect for traditions,
a relatively small propensity to save for the future,
and a focus on achieving quick results.
 In societies with a long-term orientation, people
believe that truth depends very much on
situation, context and time. They show an ability
to adapt traditions to changed conditions, a
strong propensity to save and invest thriftiness,
and perseverance in achieving results.
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Limitations
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Culture is stable
◦ Challenged by Ralston et al. (1999)’s research which
compared three generations in China and showed
that Chinese managers are becoming more
individualistic, less collectivistic, and lower in
Confucian dynamism.
Organizational Culture VS. National Culture
Culture-free approach
Ignore important characteristics of culture such
as religiosity, language, historicity
 GLOBE project
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◦ “Should be”
◦ “As is”
Argentina
It is rude to ask people what they do for a living. Wait until they offer the information.
Bahrain
Never show signs of impatience, because it is considered an insult. If tea is offered, always accept.
Cambodia
Never touch or pass something over the head of a Cambodian, because the head is considered sacred.
China
As in most Asian cultures, avoid waving or pointing chopsticks, putting them vertically in a rice bowl or tapping them on
the bowl. These actions are considered extremely rude.
Dominican Republic
When speaking to someone, failure to maintain good eye contact may be interpreted as losing interest in the
conversation.
France
Always remain calm, polite and courteous during business meetings. Never appear overly friendly, because this could be
construed as suspicious. Never ask personal questions.
Greece
Egypt
If you need to signal a taxi, holding up five fingers is considered an offensive gesture if the palm faces outward. Face your
palm inward with closed fingers.
Showing the sole of your foot or crossing your legs when sitting is an insult. Never use the thumbs-up sign, because it is
considered an obscene gesture.
India
Avoid giving gifts made from leather, because many Hindus are vegetarian and consider cows sacred. Keep this in mind
when taking Indian clients to restaurants. Don't wink, because it is seen as a sexual gesture.
Japan
Never write on a business card or shove the card into your back pocket when you are with the giver. This is considered
disrespectful. Hold the card with both hands and read it carefully. It's considered polite to make frequent apologies in
general conversation.
Malaysia
If you receive an invitation from a business associate from Malaysia, always respond in writing. Avoid using your left hand
because it is considered unclean.
Mexico
If visiting a business associate's home, do not bring up business unless the associate does.
Philippines
Never refer to a female hosting an event as the "hostess," which translates to prostitute.
Singapore
If you plan to give a gift, always give it to the company. A gift to one person is considered a bribe.
Spain
Always request your check when dining out in Spain. It is considered rude for wait staff to bring your bill beforehand.
Vietnam
Shake hands only with someone of the same sex who initiates it. Physical contact between men and women in public is
frowned upon.