Reprinted with permission; Spotlight 8.3 from Business Times, Singapore, reproduced with permission; Activity 9.2 adapted from Th e Challenges of Cross-Cultural Management, Nyenrode University Press (Browaeys, M.-J. All Rights Reserved; Spotlight 9.1 From China Suspends Energy Projects in India, Financial Times Lamont, J.), © Th e Financial Times Limited.
CULTURE AND MANAGEMENT Part One
- Chapter 1 Determinants of culture
- Chapter 2 Dimensions of culture: Hofstede and GLOBE
- Chapter 3 Business cultures in the Western world
- Chapter 4 Business cultures in Asia, Africa and the Middle East
- Chapter 5 Cultural dimensions and dilemmas
- Chapter 6 Culture and styles of management
- Chapter 1
- Concept 1.1 Facets of culture
- SPOTLIGHT 1.1
The chapter will cover those groups not covered in Chapter 3. The countries in these groups are examined in terms of certain similarities that distinguish them from Western business cultures. Elaborating on his definition, he says: 'Culture, in this sense, includes value systems; and values are one of the building blocks of culture.” This definition is frequently referred to in cross-cultural literature, probably because it is vague enough to encompass other definitions, but sharp enough to reflect key elements of a culture. .
British phone-hacking inquiry calls for press regulation with force of law
Instead, the mass media has created a new communal dimension where people can share experiences if they want to. e) The multinational company. What evolves over time in terms of 'company culture' can have the 'original' as a basis.
SPOTLIGHT 1.2
The extent of the influence of corporate culture is disputed among experts in the field. Although it is useful to know where the countries in question lie on the dimensions of national culture when working with other cultures, there are other factors at play, especially the culture of the company itself.
Organisational cross-cultural challenges
This is not only determined by external cultural factors such as national and regional cultures, but also by internal cultural factors. Extending cultural control, through company goals, manuals, guidelines and the presence of senior employees, is important.
Tata
Others believe that a flexible culture is the key to success because it can adapt to and respond more effectively to the local/national environment.
MINI-CASE 1.1
The ultimate purpose of the partnership is the happiness of all its members through their worthy and satisfying employment in a successful company. The newspaper article below describes in more detail the nature of the company that could be a model for organizational change.
A rather civil partnership
Chapter 2
Moreover, it does not account for so-called subcultural groupings or for the way in which organizations in a specific cultural environment respond to the questions. They do not account for cultural differences in absolute terms, but in relative terms.
The characterization of the two extremes of this dimension shows how dramatic these differences can be (Table 2.4. It is based on the results of the Chinese Values Survey developed by Michael Bond and her colleagues (Th e Chinese Culture Connection, 1987).
How the Chinese run their businesses outside China
SPOTLIGHT 2.1
A long-term orientation includes the cultivation of future-oriented virtues, especially persistence and frugality, ordering relationships according to status, and a sense of shame. However, according to Fang (2003), the Chinese do not view long-term/short-term orientation as opposite in nature, but instead as "quite closely interrelated".
A question of identity
Unlike the other dimensions, it does not appear to offer contrasting or opposing alternatives. Although Hofstede himself acknowledges that this unit of measurement is not perfect, objections continue to be raised against the validity of national cultural profiles, especially in light of recent world developments.
The nation-state is shrinking to just a fl ag, some sports teams and a pile of debts
SPOTLIGHT 2.2
In addition to questioning whether just five dimensions can truly capture the full complexity of a national culture, critics question the independent nature of each of Hofstede's dimensions: how can we be sure, they argue, that these dimensions do not interact with each other. In conclusion, the validity and applicability of Hofstede's model is questioned by many critics, not only scholars but also practitioners in the field of cross-cultural management training, who feel uncomfortable using Hofstede's dimensions.
The ‘happiness’ dimension
SPOTLIGHT 2.3
Cultural dimensions according to GLOBE
According to the GLOBE findings for three of the dimensions (achievement orientation, gender egalitarianism and institutional collectivism), the Netherlands scores higher on values ('Should Be') than on practices ('As Is'), while the uncertainty avoidance score is lower. What is also clear is that the distance between 'As Is' and 'Should Be' for this dimension is not only very large in the Netherlands, but also in most of the countries studied (Chhokar et al.
Masters of collaboration
Chapter 3
Discover what characteristics make up countries that make up each of the groups of the Western world. Gain awareness of some of the problems that arise from collaboration between and within these groups.
Despite the domination of Rome and the predominance of Christianity over the centuries, despite increased coordination and cooperation between European countries, shared representation and legislation, and despite the decolonization followed by a huge wave of immigrants from Africa and Asia to Europe, cultural differences the differences between regions and countries have not disappeared. It can indeed be argued that the EU is becoming more heterogeneous as a result of increasing membership.
The Council of Europe and the European Union: different roles, shared values
SPOTLIGHT 3.1
Such aid reflects the principle that Mario Draghi, President of the European Central Bank, defined in his speech in Munich (February 2013) with regard to EU countries that cannot manage on their own: 'The ethical imperative when we see others in need is to help. However, the final decision often rests with the team leader.
German business culture should be a model for our own
MINI-CASE 3.1
Although the selection process may appear similar across European countries, the emphasis in British cultures is on the extent to which the individual can contribute to the organization's tasks. Time was needed to solve this problem; but today the UK is currently a member of the European Union, just as it is a member of the Commonwealth of Nations – an intergovernmental organization of member states that were mostly territories of the British Empire.
Selecting employees
SPOTLIGHT 3.2
Currently, Britain's relationship with Europe on an economic level is particularly complicated, as illustrated in the spotlight below.
Norway option a ‘clear choice’ for Britain in Europe
SPOTLIGHT 3.3
He was asked what he would do differently if he had the chance to start over with the development of the community. The GLOBE researchers placed most of the former communist countries in the Eastern European cluster (see Concept 2.2) rather than including the countries there in one of the Western European groups.
The joint venture GM-AvtoVAZ
A tale of two Russian factories
MINI-CASE 3.2
The “active networking” mentioned in Spotlight 3.4 appears to be a feature of Russian society that has weathered the recent transition and continues to play an important role in Russian life. These relationships have been built up over time and mutual trust, common understandings and (implicit) rules of conduct have been established through which all kinds of favors can be returned.
Russia: a decline in collectivist values?
SPOTLIGHT 3.4
However, bribery and corruption are not only an unethical way of doing business in developing countries. Although negotiations to become a full member of the European Union began in 2005, a number of EU countries have made it clear that they do not consider Turkey to be a suitable member.
Sub-Saharan focus – Turkey seeks infl uence in Africa
Proponents of Turkey's membership argue that the country is European: it is the successor state to the divided Ottoman Empire, which stretched from the Red Sea to the gates of Vienna and included most of southeastern Europe; as such, it played an influential role in the history of Europe for more than four centuries. Opponents argue that if Turkey were to eventually become a full member of the EU, its large, mostly Muslim population would threaten the continent's Judeo-Christian cultural homogeneity.
MINI-CASE 3.3
The term used by modern Americans to loosely describe the founding fathers of the United States is. However, the US Constitution, as interpreted by the Supreme Court, safeguards the rights of citizens.
Telenovelas for US tastes
SPOTLIGHT 3.5
American students have been conditioned since childhood to consider themselves citizens of one of the world's great powers. Americans should never underestimate the constant pressure on Canada caused by the mere presence of the United States.
Love thy neighbour
SPOTLIGHT 3.6
Therefore, one should not expect this kind of nation, this Canada, to be projected as a mirror image of the United States. When both countries became independent from Great Britain, they still retained their core Anglo-Saxon identity.
Australia, New Zealand and cultural diversity
Australia, however, was the first to recognize the increasing ethnic diversity created by more recent waves of immigration from other non-European countries, especially from Southeast Asian countries. New Zealand's population of about 4.5 million is now largely European, although immigration policy has focused more on South Pacific micro-states and, more recently, migration flows of professionally skilled South Africans and East Asians.
MINI-CASE 3.4
It was suggested that people could be legal members of the New Zealand nation while retaining their own language, food and traditions. An extract from the New Zealand Encyclopedia refers to the cultural significance of a New Zealander who has become uncertain.
Australia: proud of its seat at the top table
SPOTLIGHT 3.7
But they also warn of a long-term economic slowdown, as the country's middle-class households save too little and risk becoming over-indebted. In this chapter, we have examined some of the characteristics that unite many European countries and other countries around the world that are historically connected to Europe.
In Brazil, an emergent middle class takes off
The Airbus website (http://www.airbus.com) provides a detailed account of the development of the company and of the aircraft it has produced. It is at the time of writing one of the largest suppliers to the US Department of Defense.
UK hopes BAE deal will seal Airbus role
Some observers also attributed BAE's withdrawal to its inability to have a real say in how EADS was run. Although heavily involved in the construction of Airbus aircraft, BAE's influence on boardroom decision-making was limited.
Politicians of all parties regret BAE’s decision to sell its Airbus stake six years ago
Some US observers have questioned the need for Paris and Berlin to work together to manage US defense systems. Cultural aspects have also been discussed extensively in the media, particularly in relation to the ability of the three main partners – the French, the Germans and the British – to work together effectively.
Why fi nancial scandals diff er in the US and Europe
Chapter 4
This first draft will examine the two Asian groups that appear in the GLOBE culture groups: Confucian Asia and South Asia. Nevertheless, deals are being made, relations between Asia and the West are developing, and more and more joint ventures or partnerships are being formed.
However, there is one characteristic that both clusters share and that has to do with the way they manage relationships. Unlike in the West, doing business in Asian countries is as much about the relationship between the parties involved as the transaction itself.
India–France: strengthening long-term economic partnership
SPOTLIGHT 4.1
However, compared to the results of all 61 countries surveyed in the GLOBE project, the Chinese 'As Is' result places their leaders in forty-first place and the 'Should Be' result in twelve hours. The idea of wa is also reflected in the relationship between the organization and its employees.
China, a global business player
SPOTLIGHT 4.2
The concept of wa, the spirit of harmony, is a principle of Japanese thought, applied to all relationships - even those with nature. This spirit is reflected in the significant degree of collaborative behavior and consensus building within an organization.
Culture turned Fukushima from disaster to crisis ‘made in Japan’
MINI-CASE 4.1
World War II and Japan's eventual defeat marked the end of the last occupation of Korea, but also the division of the country into communist, USSR-backed North Korea and US-backed South Korea. As with any family in this part of the world, the leader is autocratic and heads a very strict hierarchy.
Korean model triumphs over West’
SPOTLIGHT 4.3
Its focus on family life and the need to protect family members and improve family fortunes in turn influenced the way South Korea developed its economy. The meteoric rise of the South Korean economy since the 1960s is due in no small measure to the role of the extended family in developing a network of conglomerate businesses.
Pressure mounts on chaebol chiefs
For most of its history, Korea has been invaded, influenced and fought over by its larger neighbors, including China and Japan. North Korea remains out of the global business environment, so South Korea will be in the spotlight here.
MINI-CASE 4.2
A capitalism must be developed that, according to Prahalad, “places the individual at the center of the universe.” While Indian culture has many characteristics shared in Asia, a particular emphasis is placed on the family.
The birth of India and Pakistan
SPOTLIGHT 4.4
Loyalty to the (extended) family takes precedence over loyalty to the company, although here too a strong loyalty to the professional group involved can develop. It is in the environment of a family business that the hard-working nature of Indians becomes particularly apparent.
Business in Today’s India
The father is obeyed, but he is expected to do everything he can to promote the well-being of the family; the manager may behave in an authoritarian way, but in turn is expected to show care and consideration for his employees.
Tourist industry woos India’s newly affl uent travelling set
MINI-CASE 4.3
105 Chhokar (2008), who reports India-specific findings of the GLOBE project, refers to many ongoing changes in the nature of Indian society as reported by Indian surveys. It refers to the weakening of the caste system, as well as the liberalization and restructuring of the economy.
Lloyd’s of London hits at ‘diffi cult’ India
This behavior was expressed in a recent incident in the pharmaceutical industry sector – India ranks third globally – when a patent claim for a cancer drug by the Swiss company Novartis (second place) was rejected by the Supreme Court of India: 'It is a drug does not add new elements, which can justify the protection of a patent and the high price'. At the beginning of the twentieth century, it developed a new social class consisting of merchants and white-collar workers.
Thai Buddhist economic model
MINI-CASE 4.4
African and Middle East cultures
In a contribution to the Financial Times series, 'Mastering Management', he noted that African culture had distinctive feelings of communalism rather than separatism. An eternal optimism is an integral part of the African, mainly due to strong religious beliefs.
Celebrating business success in Africa
111 flexible, comfortable attitude towards time, they also respond to the need for regularity and punctuality in work routine. Shepherd Shonhiwa, a Zimbabwean expatriate and fellow of the Institute of Directors in Southern Africa, recently pleaded for Europe to rethink its view of African business.
MINI-CASE 4.5
In the rural areas, traditional values still apply: the head of the family determines the way in which business takes place and the way in which it is carried out. Using the original GLOBE findings on the white male manager in South Africa and subsequent research among white and black male managers, they characterize both approaches in terms of the GLOBE dimensions.
Black empowerment
SPOTLIGHT 4.5
All these countries are often grouped together because of the many cultural traits they share. We will focus specifically on the Arabs of the Middle East, the geographical term created in the West to describe the group of countries in this part of the world.
How has Qatar come to play such a significant role in Europe?
Arabs tend to handle authority centrally with high power distance, but at the same time they strive for an 'open door' for all arrivals, high or low, and for consultation in the manner of the sheikhs. The door is now wide open in many parts of the Middle East, and aspects of Western culture have made their way into many Arab countries.
A diff erent breed of foot soldier
More and more Middle Easterners are also participating in management education programs in the West and applying the knowledge and skills in their business environment. The changes taking place in the Gulf Emirate of Qatar, as shown in the following text, illustrate this process.
MINI-CASE 4.6
The director of the Dutch agency saw this as a typical tactic of the Koreans to get lower prices. However, none of the production employees showed up for work, even though the factory was open.
A new generation of family fi rm
Chapter 5
This type of second-level dilemma is experienced by many managers who work in an international context and deal with people from different cultural backgrounds. The motivation dilemma can arise when a manager seeks an appropriate strategy to motivate people with different needs and values. with appropriate incentives.'.
Activity orientation (being, being-in-doing, and doing): 'The doing orientation is characteristically the dominant one in American society. Relational Orientation (man's relations with other men): Linear Alternatives, Collateral, and 'Rational' Individualism are analytical concepts intended to make fine distinctions both within and between systems, rather than generalizing concepts to specify large distinctions between systems' (p. 17.
Ubuntu
SPOTLIGHT 5.1
These variations are due to the presence of subgroups in any society whose behavior is more or less patterned according to the value orientation of the dominant group. These subgroup variations contribute to the creation of what Kluckhohn and Strodtbeck call a 'web of variation' in a society.
Statements of commitment
Specific: Company employees are contracted to be part of a system that works efficiently.
MINI-CASE 5.1
A high-performing manager recognizes, respects and reconciles allegiance to rule-bound activity or unique circumstances. A high-performing manager recognizes, respects and reconciles the tendency to analyze and break down the field of experience or to synthesize, supplement and construct the experience.
In search of status
MINI-CASE 5.2
- Concept 5.2 Reconciling cultural dilemmas
- Chapter 5 Activities
- Chapter 6
- Management tasks and cultural values
- Time focus (monochronic and polychronic)
In his article, "The Practice of Reconciliation," Trompenaars pays more attention to the issue of cultural dilemmas in the business context. Understand how a variety of management practices are shaped by the cultural preferences of the managers in question.
Keeping time and using time
SPOTLIGHT 6.1
How to plan your time
SPOTLIGHT 6.2
- Time orientation (past, present and future)
- Power (hierarchy and equality)
Planning Emphasis is placed on continuing traditions and building into long-term time frames if the plan is a process of change. In their eyes, the manager's role is to distribute tasks and make decisions.
Culture and airline safety
SPOTLIGHT 6.3
- Competition (competitive and co-operative)
Task performance is recognized as a standard for success; however, other standards are also considered important, including team effectiveness.
Co-operating competitively
SPOTLIGHT 6.4
- Action (activity: doing and being)
- Space (private and public)
Tends to be done with a strong focus on the vision or ideal that a company wants to achieve. Control The focus is not only on the tasks to be done, but also on the ways in which they are done.
The meeting
SPOTLIGHT 6.5
- Communication (high-context and low-context)
In cultures with greater diversity of use, public spaces are smaller and more formal, and access to them is not easy for strangers. Context refers to the framework, background and surrounding circumstances in which a communication or event takes place.
Private business
SPOTLIGHT 6.6
A low context (LC) communication is just the opposite, i.e. the bulk of the information rests with the explicit code. However, Japan is a high context country, where the main part of all information is 'hidden' in the text; the situation in which the communication takes place contains the most information.
The office
SPOTLIGHT 6.7
- Structure (individualism and collectivism)
According to Kluckholn and Strodtbeck (1961), individualism shows the extent to which cultures elevate the role of the individual over the role of the group. Collectivism shows the extent to which group interests prevail over individual interests.
An in-tray task
SPOTLIGHT 6.8
Other views on cultural values
In doing so, he refers to Rohner's definition of culture: "The totality of equivalent and complementary learned meanings retained by a human population, or by identifiable segments of the population, and transmitted from one generation to another." Compare this definition of culture with that made by Hofstede (Chapter 1): "The collective programming of the mind that distinguishes members of one human group from another."
Create your cultural profile in Figure 6.5 by rating each of the eight relevant cultural parameters. Compile the cultural profile of the country you have chosen in the same way as during preparation.
YOUR ASSIGNMENT
- INTRODUCTION
- COMPANY ENVIRONMENT
- VARIABLES
- RESULTS OF THE INTERVIEWS WITH AIRLINE CONSUMERS
Consumers mentioned at least three of the aspects defined in the 'instrumental definition'. section 4) as relevant to this cultural dimension. Four of the five consumers showed at least three aspects that were defined in the 'instrumental definition' (section 4) as relevant to this variable.
