Learning Objectives •• Define Define culture culture and and understand understand the the basic basic components components ofof culture culture •• Identify Identify instances instances ofof cultural
cultural stereotyping stereotyping and and ethnocentrism ethnocentrism •• Understand Understand how how various various levels levels ofof culture culture influence influence multinational multinational operations operations
What is Culture? •• Pervasive Pervasive and and shared shared beliefs, beliefs, norms, norms, values, values, and and symbols symbols that that guide guide everyday everyday life. life. •• Cultural Cultural norms: norms: both both prescribe prescribe and and proscribe proscribe behaviors behaviors •• What What we we should should do do and and what what we we cannot cannot do. do. •• Cultural Cultural values: values: what what isis good/beautiful/holy, good/beautiful/holy, and and what what are are legitimate legitimate goals goals for for life. life.
Three Levels of Culture 1.1.National National culture: culture: the the dominant dominant culture culture within within the the political political boundaries boundaries ofof the the nation-state. nation-state. 2.2.Business Business culture: culture: norms, norms, values, values, and and beliefs beliefs that that pertain pertain toto business business inin aa culture. culture. 1.1. Tells Tells people people the the correct, correct, acceptable acceptable ways ways toto conduct conduct business business inin aa society. society.
Three Levels of Culture (cont.) 3.3.Occupational Occupational and and organizational organizational culture culture 3.Occupational 3.Occupational culture: culture: the the norms, norms, values, values, beliefs, beliefs, and and expected expected ways ways ofof behaving behaving for for people people inin the the same same occupational occupational group. group. 4.Organizational 4.Organizational culture: culture: the the set set ofof important important understandings understandings that that members members ofof an an organization organization share. share.
Cultural Differences and Basic Values •• Two Two diagnostic diagnostic models models toto aid aid the the multinational multinational manager: manager: 1.1. Hofstede Hofstede model model ofof national national culture culture 2.2. 7d 7d culture culture model model
Hofstede’s Model Applied to Organizations and Management (cont.) 2.Leadership 2.Leadership styles styles 3.Motivational 3.Motivational assumptions assumptions 4.Decision 4.Decision making making and and organizational organizational design design 5.Strategy 5.Strategy
Power Distance •• Power Power distance distance concerns concerns how how cultures cultures deal deal with with inequality inequality and and focuses focuses on on •• Norms Norms that that tell tell superiors superiors (e.g., (e.g., bosses) bosses) how how much much they they can can determine determine the the behavior behavior ofof their their subordinates subordinates •• Values Values and and beliefs beliefs that that superiors superiors and and subordinates subordinates are are different different kinds kinds ofof people people
Individualism/Collectivism •• Collectivist Collectivist countries countries have have norms, norms, values, values, and and beliefs beliefs such such as as •• One’s One’s identity identity isis based based on on group group membership. membership. •• Group Group decision decision making making isis best. best. •• Groups Groups protect protect individuals individuals inin exchange exchange for for their their loyalty loyalty toto the the group. group.