The Role of Culture in

International Management

HA 390 Module 2

Culture
Helps us organize our world
Shared values, understandings, assumptions
and goals (values, beliefs, norms)
Learned from earlier generation
Imposed by present members of society

Principles for Studying Other Cultures

Individuals may not conform
Differences may not be culturally based
Understand your own culture first
Continuums

Few fall at the extremes, most are somewhere

in the middle

Stereotyping/ Sociotyping
Mental files
Natural
Useful
Can be misused

Ethnocentrism

Belief that one's cultural values,

beliefs and norms are better than
those of another culture are

Principles Summary
4 Principles for studying cultures
Individuals may not conform
Differences may not be culturally based
Understand self first
Continuums
Stereotyping
Natural, potentially useful or harmful
mental files
Ethnocentrism
Belief that ones own culture is best

Team Work

Find several examples that demonstrate

how culture affects management
functions such as planning, organizing,
directing and controlling
Find examples of how culture affects
management style
Find several examples of how business
practices differ across cultures
Prepare to present findings to class

Country Profile

Cultural Characteristics
Understand the ways culture can
differ
Understand ourselves
Understand others
Value different points of view
Develop shared values, beliefs and
norms

What do you think?

Are subordinates the same kind of people as

management?
Should the boss know all the answers?
Is it ok for the boss to have privileges such as
drinking coffee on the job that the front line
workers do not have?
Is it ok to call the boss by his/her first name?
Which type of boss do you think is best - one that
is autocratic, persuasive or paternalistic, or
democratic?

Power Distance
High Power Distance
Order of inequality
Special privileges
Subordinates are
different from
superiors
Boss should know all

Low Power Distance

Minimize inequalities
Equal rights
Subordinates and
superiors are equals
Ok for boss to ask
subordinates for
answers

Power Distance Comparisons

Average = 51

High
90

Low

81

80
70

61

60

54
49

50

40

38

40

35
28

30
20

Ireland

Great Britan

Netherlands

USA

South Africa

Japan

Mexico

Taiwan

10

High Power Distance Employee

Expectations
Wrong to disagree with the boss
Paternalistic (father-like)
management style
Boss should know all the answers
Boss should have more privileges

What do you think?

Do you think it is ok for employees to disagree and even argue

with their boss?
Do you think time has a monetary value or it is something that just
exists?
Do you prefer a boss who lays out the rules clearly and
specifically to you in written format or do you prefer one that only
sets out basic rules and assumes you will perform appropriately?
Why?
If you needed a marketing plan, would you hire a hospitality
marketing specialist, a general marketing specialist or would you
do it yourself?
How do you react when your boss tells you s/he is going to make
changes in the way things are done?

Uncertainty Avoidance
High
Avoid risks
Dissonance is
dangerous
Time is money
Need written rules
and regulations
Believe in experts

Low
Willing to take risks
Accept disagreements
Time is free
Prefer common sense
to rules
Logic and common
sense better than expert
opinions

Uncertainty Avoidance
Average=64

High avoidance of risk

120

Willing to take risks

112

100

92
82

80

69
53

60

49

46
35

40

29

Hong Kong

Great Britain

USA

South Africa

Netherlands

Mexico

Japan

Greece

Taiwan

20

Individualism

Responsible for self

and immediate family
Identity based on the
individual
Autonomy, variety,
pleasure and
individual financial
security
Individual decisions

Collectivism

Extended families,
loyalty, protection
Identity in the
social system
Expertise, order,
duty, security
provided by the ingroup
Group decisions

Individualistic

Collective
Average =51

100

91

89

90

80

80
70
60
46

50
40

30

25

30

17

20

Hong Kong

Mexico

Japan

Netherlands

Great Britain

USA

Taiwan

10

Collective

Individualistic

Affect of High Uncertainty

Avoidance on Employees

Career stability
Rules, regulations, direction
Consistency
Avoid conflict/disagreement
Resist change
Fear of failure
May appear less ambitious

Stable employees

What do you think?

1.

Do you live to work or work to live?

2.

What are your feelings about who should do what at

home? How do you view the responsible of each
spouse for taking care of the children?

3.

Do you feel a sense of responsibility to help when you

see a homeless person begging? What is your
philosophy on giving to the poor?

4.

Would you take your family out of a home and

community they love where they are surrounded by
friends and family for a new position that offers you a
considerably higher salary?

5.

How would you rank yourself on the

masculine/feminine continuum?

6.

How do your feelings contrast with others you know?

Masculine/Feminine
Masculine
Material success
Ambition,
assertive
Competitive
Live to work
Women are
nurturers
Achievement

Feminine
Quality of life
Relationships
Concern for weak
Work to live
Men & Women
nurture
Disapprove of high
achievers

60

50

20

10

Sweden

62

Netherlands

Average = 51

Taiwan

63

Hong Kong

66

USA

69

South Africa

70

Great Britain

80

Mexico

100

Japan

Masculine
Feminine

95

90

57
45

40

30

14
5

Particularistic

Focus more on
relationships than rules
Legal contracts easily
modified
Changing mutualities
honored
Reality is relative to
participant
Relationships evolve

Universalistic

Focus on rules rather

than relationships
Legal contracts should
be honored
Word and legal
contracts honored
One reality, one truth
A deal is a deal

37
64

US
A

Ne
th

So

ut
h
er
M
K
Ja
l
e
a
or
xi
UK nd pa
ea
co
n
s

Percent who prefer universalistic

system

68
88
90
93

Team Discussion
How would the expectations of
employees from a particularistic
culture differ from those of a
universalistic culture?
Which system do you prefer? Why?
What is the value of each of these
systems?

What do you think?

1. Do you think Americans respected John Kennedy,
Jr. because of what he accomplished or because of
his family?
2. Do you think many people voted for our current
president because of his father?
3. Would you have the same level of respect as a
hospitality manager as a relative of Bill Marriott
or Roy Crock would?
4. What difference do you think the school you
attended make in your career after you have been
working in the field at least five years?

Achievement

Respected for what

you do
Respect of superior
based on performance
Limited use of titles
Senior managers vary
in age and gender,
qualified by
achievements

Ascription

Respected for who

you are
Respect for
superior seen as
commitment to the
organization
Extensive use of
titles
Senior managers
are male, middleaged, qualified by
background (who
they are)

Respect depends on family background

Percent who disagree
UK

89

USA

87

Mexico

81

China

81

Japan
Hong Kong

Ascription

79
58

Achievement

What do you think?

1.

2.
3.

4.

Do you believe you can control your life

or do you believe you have to accept the
ways things are?
Is your life pre-destined?
Do you have a fate over which you have
little or no control?
How do other people you know differ in
their believes about controlling fate or
destiny?

Locus of Control
Internal
Belief in ones ability
to control fate
Respect for conflict
and resistance
Focus on self rather
than others
Discomfort with lack
of control

External
Belief that something
outside oneself is in
control
Harmony and
responsiveness
Focus on other
Comfortable with
changes

Control Fate: Percent who believe

they are captains of their fate
90%

USA

80%
70%

S Korea
Hong Kong
Japan

60%
50%
40%
30%
20%
10%
0%

Venezuela

Netherlands

UK

Neutral/Affective
Neutral
Hide feelings
Tension accidentally
revealed
Admire poise
Avoid hugs, broad
smiles and broad
gestures
Monotone

Affective
Openly reveal
emotions
Expressive
Animated expressions
Touching, and broad
gestures admired
Expression and
emotion

Diffuse (High context)

/Specific (low context)
Diffuse (high context)
Indirect
Evasive, tactful,
ambiguous
Context more important
than words
Highly situational
morality
Prefer neutral
expressiveness
Report conclusions at end

Specific (low context)

Direct, to the point
Precise, blu8nt
Words more important
than context
Consistent moral
stands regardless of
circumstances
Prefer animated
expression
Report conclusions
and important points
first

Cultural Dimensions Summary

Power Distance how should the boss act
Uncertainty Avoidance rules or
common sense
Masculine/Feminine material rewards or
quality of life
Individualism/Collectivism I versus we
Universalistic/Particularistic treat all
equally versus do favors for friends

Cultural Dimensions Summary

Achievement/Ascription respect for what

you do or respect for who you are
Locus of Control I am in control of my
destiny versus outside forces are in control
Neutral/Affective hide versus display
emotions
Diffuse/Specific (high/low context) indirect
versus direct communication