Business Environment
Decisions taken influenced by: by a company are usually
• internal factors such as strategy, goals, scope of operations, internal resources including management systems and organizational culture • and factors in the external business environment
Dominant In harmony Subjugation Lineal (hierarchical) Collateral (collectivist) Individualist
3. What is the person’s relationship to other people?
Cultural Orientations
Orientations 4. What is the proper manner of activity? 5. What is the temporal focus of human activity? Range of Variations Doing Being Containing Future Present Past Private Public Mixed
Characteristics of Low-Context Cultures
• shorter relationships
• messages are made explicit • authority is diffused • agreements are written rather than spoken
2. Edward T. Hall and Cultural Contexts
Hall, E. T., 1976. Beyong Culture, Anchor Press / Doubleday
Characteristics of High-Context cultures
• long lasting relationships
3 points:
• how far the manager carries his/her status into the wider context outside the workplace • the manager’s capacity to bypass levels in the hierarchy • the manager as expert in contrast to the manager as facilitator
Adler, N.J., Campbell, N. C., and Laurent, A., 1989. In search of appropriate methodology: from outside the People’s Republic of China, Journal of International Business Studies, Spring, pp 61-74
• qualitative insights rather than quantitative data • useful in understanding how members of different cultures develop business relationships
3. André Laurent: Culture, Status & Function
• communication is economical, fast and efficient • wider range of communicative expressions • people in authority are personally responsible for the actions otions
Orientations
1. What is the nature of people?
Range of Variations
Good (changeable/unchangeable) Evil A mixture of good and evil
2. What is the person’s relationship to nature?
PART II Theories and Models
1. Kluckhohn and Strodtbeck on Cultural Orientations
Kluckhohn, F. R. and Strodtbeck, F. L. 1961. Variations in Value Orientations, Peterson, New York.
In low-context cultures…
• Insiders and Outsiders are less closely distinguished
• Cultural patterns are relatively fast to change
Critique of Hall’s Model
Ignoring Cultural Diversity
This policy is followed when: • the management lack skills and resources to handle the diversity • the task offers no opportunities for deriving positive effects from diversity • the negative effects outweigh the positive effects • refusing to recognize diversity seems likely to minimize the negative effects
Strengths
• cultures can be compared along distinct dimensions • comparative models apply to cross-cultural management • analysis of predominant variations within the national culture does not accurately predict: - the values of sub-cultural minorities; the values practiced in different industries and organizations and the values practiced in exceptional cases.
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Difficulties in developing globalized products:
• Diversity of taste and demand Hoecklin, L. 1995. Managing Cultural Differences: Strategies for Competitive Advantage, The Economist Intelligence Unit / Addison Wesley. • Diversity of worldwide industry standards • Difficulty in managing global companies and the lack of agreement on organizational structures and systems • Subsidiaries need to develop their own abilities, talents and local knowledge
Overview of Lecture
Part I Culture and International Business Part II Theories & Models
– – – – – Kluckholm and Strodbeck (Cultural Orientation) Hall (Cultural Context) Laurent (Culture, Status and Function) Hofstede (and the Workplace) Trompenaars (Consultant Contribution)
External Factors
Cross-cultural Management Skills
• understand the nature of culture and how it influences behavior in the workplace • learn about specific cultures – the other’s and your own • recognize the differences between cultures • Implementation of structures
Laurent, A., 1983. The cultural diversity of Western conceptions of management, Internnational Studies of Management and Organization, 13 (1-2), pp 75-96.
Laurent’s 4 parameters
1. Perceptions of the organization as political systems
2. Authority systems
3. Role formulation systems and 4. Hierarchical relationship systems