Part One: Culture and Management

CHAPTER 1 DETERMINANTS OF CULTURE Concept 1.1: Facets of culture

Concept 2.2: Levels of cultures

Slide 1.1

Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

The concept of culture What culture is?/is not? Culture is a code of attitudes, norms and values, the way of thinking... The culture determines:
How we see ourselves How we see the world

Culture is not right or wrong, inherited, about individual behaviour ...

Slide 1.2

Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Three layers

The concept of culture has three layers:

Artifacts and attitudes
Behavioural or explicit level

Norms (rules) and values

Every culture has its own system

Basic assumptions
Difficult to describe or explain

Slide 1.3

Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

How can we explore culture?

Figure 1.1

Navigating the seas of international business

Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Source: Adapted from Schneider and Barsoux (2003: 21) Slide 1.4

Cultural assumptions in management

Edgar Schein defines culture as: a set of basic assumptions shared solutions to universal problems of external adaptation (how to survive) and internal integration (how to stay together) - which have evolved over time and are handed down from one generation to the next
(Schein, 2004: 14)

Slide 1.5

Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Comparison value systems of societies

Four categories (Ruano-Borbalan, 2002: 339) Traditional society (Arab countries)
religion plays an important role

Rational society (Germany)

interests of the individual come first

Society where materialism is predominant

(ex-communist countries)

Post-modern society (Scandinavia)

tolerant and democratic
Slide 1.6 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

European Culture
What is important in the forming process of an European culture? Meeting of diversity Complementarity of ideas Interaction and interference within opposite values : - religion/rationality - mythical thought/critical thought - humanism/science
(Morin,1987)
Slide 1.7 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Levels of cultures in a business context

Cultures can develop at different levels: Culture and nation National culture Organizational culture Corporate culture Professional culture Culture and management

Slide 1.8

Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Culture and nation

Influence of culture on organizations
Macro level
laws and economic institutions the nation must be considered by organizations going about their business.

Micro level
the organization is influenced through a number of cultural elements relating to:
employer-employee relationships behaviour among employees
Slide 1.9 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

National culture
Elements that contribute to the creation of a national culture:
- Physical environment - History of the nation

Institutions that contribute to the establishment of a national culture

- Family/Religion/Education - Mass communication media - The multinational company
(Tayeb, 2003: 13)
Slide 1.10 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Organizational culture
In organization, culture affects the way: - strategy is determined - goals are established - how the organization operates The personnel of the organization: - influenced by their cultural backgrounds - shared their own values and perceptions
(Schein, 1999)

Slide 1.11

Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Corporate culture Corporate culture is a combination of:

- Organizational culture - National/regional culture

Two meanings on the influence of corporate culture: Key to success if:

1) Clearly defined corporate culture 2) Flexible culture

Role of the company culture

- internal cultural factors
Slide 1.12 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Professional culture
Three professional cultures in management: Operators - involved in production (goods/services) Engineers
- design and monitor the technology

Executives - senior managers

(Schein, 1996)

The question remains: how these professional cultures co-exist?

Slide 1.13 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Culture and management Cross-cultural management explains the behaviour of people in organizations around the world describes and compares organizational behaviour across countries and cultures seeks to understand and improve the interaction of :
co-workers, managers, executives, clients, suppliers, and alliance partners
(Adler, 2002: 11)
Slide 1.14 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009

Conclusion Chapter 1
Chapter shows how difficult it is to give a definition of the word culture. Chapter also shows that the individuals in a group form a culture that can be national, organizational or professional.

Slide 1.15

Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, Pearson Education Limited 2009