CULTURE AND MULTINATIONAL MANAGEMENT by ewghwehws

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									     WHAT IS CULTURE?

Culture is the pervasive and
 shared beliefs, norms, values,
 and symbols that guide everyday
 life
Transmitted by symbols, stories
 and rituals
Often taken-for-granted
         NATIONAL
         CULTURE


         BUSINESS
         CULTURE



ORGANIZATION   OCCUPATIONAL
  CULTURE        CULTURE



      MULTINATIONAL
       MANAGEMENT
 TWO DIAGNOSTIC MODELS
TO UNDERSTAND CULTURAL
      DIFFERENCES

Value Orientations Model
Hofstede’s Model of National
 Culture
HIGH POWER DISTANCE NORMS,
    VALUES, AND BELIEFS
 Inequality is good
 Everyone has a place
 People should depend on a
  leader
 The powerful are entitled to
  privileges
 The powerful should not hide
 UNCERTAINTY AVOIDANCE
NORMS, VALUES, AND BELIEFS
Avoid conflict
Low tolerance of deviant people
 and ideas
Respect for laws and rules
Experts and authorities are
 usually correct
Consensus is important
  INDIVIDUALISM NORMS,
   VALUES, AND BELIEFS
People are responsible for
 themselves
Individual achievement is ideal
People are not emotionally
 dependent on organizations or
 groups
COLLECTIVISM HAVE NORMS,
  VALUES, AND BELIEFS
Self identity based on group
 membership
A belief that group decision
 making is best
A belief that groups protect you
 in exchange for loyalty
MASCULINITY NORMS, VALUES,
       AND BELIEFS
Cleardefinitions of gender roles
Men are assertive and dominant
Support for Machismo
Men should be decisive
Work is priority
Growth, success, and money are
 important
  LONG TERM (CONFUCIAN)
       ORIENTATION
Beliefin substantial savings
Willingness to invest
Acceptance of slow results
Persistence to achieve goals
Sensitivity to social relationships
Pragmatic adaptation
EXHIBIT 1 HOFSTEDE’S VALUE
 DIMENSIONS BY COUNTRIES
Anglo  cultures (US, GB,
 Australia)
 – High on individualism and
   masculinity, low on power
   distance and uncertainty
   avoidance
Latin European
 – High uncertainty avoidance
Nordic
 – Low masculinity
Far Eastern
 – high power distance, low
   individualism
MANAGEMENT PROCESSES        LOW POWER DISTANCE            HIGH POWER DISTANCE
Human Resources
Management
    Management Selection    Educational achievement       Social class; elite education
    Training                For autonomy                  For conformity/obedience
    Evaluations/Promotion   Performance                   Compliance; trustworthiness
                            Small wage difference between Large wage differences
    Remuneration            management and worker         between management and
                                                          workers
Leadership Styles           Participative; theory Y       Authoritarian; close
                                                          supervision
                            People like work; extrinsic   Assume people dislike work;
Motivational Assumptions    and intrinsic rewards         Coercion
Decision                    Decentralized; flat           Tall pyramids; large
Making/Organizational       pyramids; Small proportion    proportion of supervisors
Design                      of supervisors
                                                          Crafted to support the power
Strategy Issues             Varied                        elite or government
      MANAGEMENT                  HIGH UNCERTAINTY                 LOW UNCERTAINTY
       PROCESSES                     AVOIDANCE                        AVOIDANCE
Human Resource
Management                  Seniority; expected loyalty       Past job performance;
                                                              education
     Management Selection
     Training               Specialized                       Training to adapt
     Evaluation/Promotion   Seniority; expertise; loyalty     Objective individual
                                                              performance data; job
                                                              switching for promotions
     Remuneration           Based on seniority or expertise   Based on performance
Leadership Styles           Task oriented                     Nondirective; person-oriented;
                                                              flexible
Motivational Assumptions    People seek security; avoid       People self motivated;
                            competition                       competitive
Decision                    Larger organization; tall         Smaller organizations; flat
Making/Organizational       hierarchy; formalized; many       hierarchy; less formalized with
Design                      standardized procedures           fewer written rules/standardized
                                                              procedures
Strategy Issues             Risk adverse                      Risk taking
MANAGEMENT PROCESSES               LOW INDIVIDUALISM              HIGH INDIVIDUALISM
Human Resources
Management
    Management Selection       Group membership; school or   Universalistic based on
                               university                    individual traits
    Training                   Focus on company based        General skills for individual
                               skills                        achievement
    Evaluation/Promotion       Slow with group; seniority    Based on individual
                                                             performance
    Remuneration               Based on group                Extrinsic rewards (money,
                               membership/organizational     promotion) based on market
                               paternalism                   value
Leadership Styles              Appeals to duty and           Individual rewards and
                               commitment                    punishments based on
                                                             performance
Motivational Assumptions       Moral involvement             Calculative; Individual
                                                             cost/benefit
Decision                       Group; slow; preference for   Individual responsibility;
Making/Organizational Design   larger organizations          preference for smaller
                                                             organizations
MANAGEMENT PROCESSES              LOW MASCULINITY                   HIGH MASCULINITY
Human Resources
Management
    Management Selection       Independent of gender,       Jobs gender identified; school
                               school ties less             performance and ties important
                               important; androgyny
    Training                   Job-Oriented                 Career oriented
    Evaluation/Promotion       Job performance with         Continues gender tracking
                               less gender role
                               assignments
    Remuneration               Less salary differences      More salary preferred to less hours
                               between levels; more
                               time off
Leadership Styles              More theory Y;               More theory X;
Motivational Assumptions       Emphasis on quality of       Emphasis on performance and
                               life, time off, vacations;   growth; excelling to be best; work
                               work not central             central to life; job recognition
                                                            important
Decision                       Intuitive/group; smaller     Decisive/individual; larger
Making/Organizational Design   organizations                organization preferred
MANAGEMENT PROCESSES           SHORT TERM ORIENTATION           LONG TERM ORIENTATION
Human Resources
Management
    Management Selection       Objective skill assessment for   Fit of personal and
                               immediate use to company         background characteristics

    Training                   Limited to immediate company     Investment in long term
                               needs                            employment skills
    Evaluation/Promotion       Fast; based on skill             Slow; develop skills and
                               contributions                    loyalty
    Remuneration               Pay; promotions                  Security
Leadership Styles              Use incentives for economic      Build social obligations
                               advancement
Motivational Assumptions       Immediate rewards necessary      Subordinate immediate
                                                                gratification for long term
                                                                individual and company goals
Decision                       Logical analyses of problems;    Synthesis to reach consensus;
Making/Organizational Design   design for logic of company      design for social relationships
                               situation
Strategy Issues                Fast; measurable payback         Long term profits and growth;
                                                                Incrementalism

								
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