BY: Ajatshatru Sharma Anita Sharma Sakshi Arora Prestige Institute of Management, Gwalior

Acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and; influences behavior. Sum total of learned beliefs, values and customs that serve to direct the consumer behavior of members of a particular society

 Learned Shared Trans-generational Dynamic Invisible Adaptive

Hofstedes Cultural Dimensions

Power distance Uncertainty avoidance Individualism/collectivism Masculinity/femininity

Trompenaars Cultural Dimensions

Universalism vs. Particularism Individualism vs. Collectivism Specific vs. Diffuse Neutral vs. Emotional Cultures Achievement vs. Ascription Time dimension Internal vs. external control

Power distance: Power distance is the extent to which less powerful members of institutions and organisations accepts that power is distributed unequally. Countries in which people blindly obey the orders of superiors have high power distance. Countries like Malaysia has the greatest power distance and Austria has the least power distance.

Uncertainty Avoidance: Extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid such situations High uncertainty avoidance countries: people have high need for security, strong belief in experts and their knowledge, more written rules and procedures, less risk taking by managers Low uncertainty avoidance countries: people are more willing to accept risks associated with the unknown, fewer written rules and procedures, more risk taking by managers, higher employee turnover, more ambitious employees

Individualism Individualism is the tendency of people to look after themselves and their family only. Individualism is common in the US, Canada, Australia, Denmark and Sweden. Specifically, countries high on individualism have norms, values and beliefs which accept that: People are responsible for themselves, Individual achievement is ideal and People need not be emotionally dependent on organizations or groups. In the individualist societies, favoritism shown to friends and relatives is considered to be unfair and even illegal.

Masculinity Masculinity refers to a situation in which the dominant values in a society are success, money and other material things. High masculine cultures have norms, values and beliefs that: Gender roles should be clearly distinguished, Men are assertive and dominant, People especially men - should be decisive, Work takes priority over other duties, such as family and Advancement, success and money are important.

Trompenaars, an European researcher, conducted an extensive research with 15,000 managers from 28 countries, representing 47 national cultures. He describes cultural differences using seven dimensions (the theory is therefore called 7d cultural dimensions model)

Universalism vs Particularism
Universalism the belief that ideas and practices can be applied everywhere in the world without modification. People tend to focus on formal rules and expect business partners to do the same. Particularism the belief that circumstances dictate how ideas and practices should be applied and some things cannot be done the same way everywhere. People tend to focus on relationships, working things out to suit those involved.

Individualism vs. Collectivism This dimension is almost identical to Hofstedes value dimension. In individualistic societies, the focus is on I or me and the orientation is ones own growth. In collectivist societies, the focus is on groups, including family, organisation and community. Responsibility, achievements and rewards are group-based. In individualistic societies, people are trained from childhood to be independent, and each person assumes individual responsibility for his/her success or failure.

Specific vs. Diffuse Specific: large public space shared with others and small private space guarded closely High specific cultures: people open, extroverted; strong separation work and personal life (e.g., Austria, U.K., U.S.) Diffuse: public and private spaces similar size, public space guarded because shared with private space; people indirect and introverted, work/private life closely linked (e.g., Venezuela, China, Spain)

Neutral vs. Emotional Cultures Neutral culture a culture in which emotions are held in check. People try not to show their feelings Emotional culture a culture in which emotions are expressed openly and naturally. People smile, may talk loudly, greet each other with enthusiasm, show happiness or unhappiness.

Achievement vs. Ascription Achievement culture - culture in which people are accorded status based on how well they perform their work and what they have accomplished Job, work performance, education, etc. Ascription culture - culture in which status is attributed based on who or what a person is For example, status may be accorded on the basis of age, gender, family, tribe, ethnic group, etc.

Time Dimension Sequential use of time - people do one thing at a time, keep appointments strictly, follow plans to the letter Synchronous use of time - people do more than one thing at a time, appointments are approximate

Internal vs. External Control Inner-directed: people believe in control of outcomes (U.S., Switzerland, Greece, Japan) Outer-directed: people believe in letting things take own course (China, many other Asian countries)

Lornges cross- culture studies

P.Loranges(1986), tried to identify what managers perceived s being most important for career success. For American managers, the single most important criterion to have a success career with the company was ambition drive and a pragmatic individualistic, achievement-oriented assessment system. Values in cross- culture Common personal values

 US managers: Highly pragmatic; high achievement and

competence orientation; emphasis on profit maximization, organizational efficiency and productivity.

Japanese managers: Highly pragmatic, strong emphasis on

size and growth; high value on competence, achievement dedication and loyalty to organization.

Korean managers: Highly pragmatic and individualistic; strong

achievement and competence orientation.

Australian managers: High moral and humanistic orientation;

low value on achievement and success, competition and risk.

Cont.
Indian managers: Highly individualistic, strong focus on
transition compliance and competence