Chapter 3 Cultural Dimensions

Nine cultural dimension of the GLOBE project

1. power distance 2. uncertainty avoidance 3. institutional collectivism 4. in-group collectivism 5. gender egalitarianism 6. assertiveness 7. future orientation 8. performance orientation 9. human orientation

Project GLOBE

A massive and ongoing research program to study the impact of cultural variables on leadership behaviors and organizational effectiveness. This has evolved into a network of more than 160 scholars, 62 societies since it was launched in 1994. Most of the researchers are native to the particular cultures they study, thus enhancing the credibility of the project. During this project nine basic cultural dimensions or characteristics was identified and statistically validated.

Social Capital

Ability to form connections and bring people together, characterized by intercultural empathy, interpersonal impact and diplomacy

Purpose of Training

Actual performance versus desired performance, and performance discrepancy

Cultural Perception of Interpersonal Space

Americans prefer physical distance compared to other countries such as arab, asian and latin american cultures who do not mind close physical contact.

level 4

Business results: the impact of training on the business--quantifying improved efficiency, reduced accidents, reduced costs can be a measure of success

Collectivist Cultures

Called "we" and "us" cultures, ranked shared goals highe than individuals desires and goals. These people are expected to subordinate their own wishes and goals to those of the relevant social unit. Countries such as Egypt, Mexico, China, Japan

Individualistic Cultures

Characterized as "I" and "me" cultures, give priority to individual freedom and choice. Countries such as the US, Canada, Israel, Nigeria

Merging Societal and Organizational Cultures

Employees bring their societal culture to work with them in the form of customs and language. Organizational culture is then a by-product of societal culture and in turn affects individual differences such as values, ethics, attitudes, assumptions and expectations. These individual differences then influence behavior at the individual, group and organizational levels. This merging is an eternal and critical challenge facing managers. Awareness and accommodation of differences is essential in order to achieve an effective fit between the two and boost performance on all levels.

Research insight on ethnocentrism

Ethnocentrism is bad for business--it is found that ethnocentric staffing and human resources policies to be associated with increase personnel problems. These problems include recruiting difficulties, high turnover rates, and lawsuits over personnel policies. Japan has the most ethnocentric policies, Ethnocentrism also affects managers and consumers--expratriate managers have greater difficulties adjusting their international assignment when their subordinates are ethnocentric. It also affects consumers because they typically like to buy domestic goods even if the imported ones are cheaper and have better quality.

Masculine vs Feminine Hofstede

Masculine: assertive, competitive, material success is important feminine: concern for the welfare of others, value interpersonal relationships.

Psychological Capital

Openness to other cultures and willingness to change, characterized by passion for diversity, thirst for adventure and self-assurance

level 1

Reaction to training, the learner satisfaction with content and instructor--can get feedback through surveys/questionnaires

level 5

Return on investment: the benefits of training outweigh the costs incurred--can conduct a cost/benefit ratio to determine the training success.

Cultural Intelligence

The ability to accurately interpret ambiguous cross-cultural situations, is an important skill in todays diverse workplaces.-- such as facing cultural paradoxes.

Ethnocentrism

The belief that ones native country, culture, language and modes of behavior are superior to all others, has roots in the dawn of civilization.

Cultural Paradoxes

The exception to the rule in a culture--which is are individuals who do not fit the expected cultural pattern. Managers will face these people from time to time.

Polychronic time

The multiple and cyclical activities and concurrent involvement with different people in Mediterranean, Latin America and especially arab cultures--time is very flexible, arriving late to a party is a social norm. The more a person tends to do at once, the more polychronic they are--sometimes being too polychronic means that the person is not as efficient as hoped and can be very stressful.

Monochronic Time

The ordered, precise, schedule driven use of public time that typifies and even caricatures efficient northern europeans and north americans.

Low-Context Cultures

Written and spoken words carry the burden of shared meanings. These include countries such as germany, switzerland, north america, great britain. The handshake is considered a signal to get a signature on a detailed, lawyer approved, iron clad contract---rely more on precise written rules.

Power Distance Hofstede

high: unequal power are accepted, readily comply with authority low: expect equality in power

Power Distance

how much unequal distribution of power should there be in organizations and society

level 2

learning, changes in knowledge, skills, attitudes--this can be done through tests, role plays, simulations, observations

Hofstedes Cultural Dimensions

1. individualism vs collectivism 2. power distance 3. uncertainty avoidance 4. masculine vs feminine 5. long term vs short term

Uncertainty Avoidance Hofstede

High:reject deviant ideas, prefer structure rules and procedures to regulate low: tolerate different and unfamiliar ideas

Assertiveness

How confrontational and dominant should individuals be in social relationships.

Gender Egalitarianism

How much effort should be put into minimizing gender discrimination and role inequalities.

In-group collectivism

How much pride and loyalty should individuals have for their family or organizations

Performance orientation

How much should individuals be rewarded for improvement and excellence

Institutional Collectivism

How much should leaders encourage and reward loyalty to the social unit as opposed to the pursuit of individual goals

Future Orientation

How much should people delay gratification by planning and saving for the future

Uncertainty avoidance

How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability

Humane Orientation

How much should societies encourage and reward people for being kind, fair, friendly and generous.

Measuring Success of Training

Includes different levels such as reaction to training, learning, job application, business results and return on investment.

High Context Cultures

Including china, korea, japan, vietnam--they rely heavily on situational cues for meaning when perceiving and communicating with others. Nonverbal cues such as ones official position, status, or family connections convey messages more powerfully than do spoken words. ex: business cards, official position etc. agreements tend to be made on the basis of someones word or handshake

Developing a Global Mindset Include

Intellectual capital, psychological capital, social capital

Societal Culture

Involves shared values, norms, identities and interpretations that result from common experiences of members of collectives that are transmitted over time. A social phenomenon that is shared among its members. Typically when you comply with expectations you are rewarded by the culture, if you do not you are punished in some way. Many factors influence societal cultures such as economics, technology, politics, laws, ethnicity and religion

level 3

Job application: transfer of training to the job--observations, before and after data, interviews with supervision can measure success

Intellectual capital

Knowledge of international business and ability to learn, characterized by global business savvy, cognitive complexity and cosmopolitan outlook

Self-centered leaders

Leaders who are seen as loners or facesavers generally receive poor reception worldwide

Charismatic Leaders

These leaders are visionary and inspirational who are good team builders and generally do the best when it comes to being global managers.

Performance discrepancy

This happens because of limited resources (can't), lack of motivation (won't) and lack of skills (don't know how to)