Lecture 3 Cultural Environments

MGNT210: Managing Across Cultures

Dr Mathew Todres
[email protected]
 Lecture overview
Signposts for lecture topic 3: Cultural Environments

 3‐1 Framing Cultural Environments

 3‐2 Beliefs, Values, and Worldviews
 3‐3 Characteristics of Cultures
 3‐4 EMIC and ETIC Perspectives

 3‐5 Models of National Cultures

 3‐6 Core Cultural Values

 3‐7 Using Cultural Models

 3‐8 Caveats About Using Cultural Models

 3‐9 Social Complexity, Biculturalism, Multiculturalism

 3‐10 Summary
3‐1 Framing Cultural Environments
3‐2 Beliefs, Values, and Worldviews
3‐3 Cultures and Subcultures
3‐4 EMIC and ETIC Perspectives
 3‐1 Framing Cultural Environments
Why is this an important topic?

 Cultures of the world are getting more and more interconnected and
that the business world is becoming increasingly global (House, 2004)
 “As economic borders come down, cultural barriers will most likely go
up and present new challenges and opportunities for business. When
cultures come in contact, they may converge in some aspects, but
their idiosyncrasies will likely amplify” (House, 2004)
 The greater the understanding that managers have about the
characteristics of the unique cultural environment in which they find
themselves, the more prepared they are to move forward with new
business ventures, contract negotiations, team‐building assignments,
and so forth.
 Communication becomes easier, as does supervision.
 Potential ethical or institutional conflicts also become more
transparent and easier to comprehend and address

Robert J. House, “Introduction,” in Robert J. House, Paul J. Hanges, Mansour Javidan, Peter W. Dorfman, and Vipin Gupta (eds.),
Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Thousand Oaks, CA: Sage, 2004, pp. 1–2..
 3‐2 Beliefs, Values, and Worldviews
Finding a suitable working definition of culture … commonly applied definitions

 “The collective programming of the mind that distinguishes the members of one human group from
another” (management researcher Geert Hofstede*).
 “The collection of beliefs, values, behaviors, customs, and attitudes that distinguish the people of
one society from another” (cultural anthropologist Clyde Kluckhohn**).
 “Shared motives, values, beliefs, identities, and interpretations or meanings of significant events that
result from common experiences of members of collectives that are transmitted across generations”
(Global Leadership and Organizational Behavior Effectiveness project***).
 “A ‘toolkit’ of symbols, stories, rituals, and worldviews that help the people of a culture survive and
succeed” (sociologist Ann Swidler****).
 “The means by which people communicate, perpetuate, and develop their knowledge and attitudes.
Culture is the fabric of meaning in terms of which people interpret their experience and guide their
actions life” (cultural anthropologist Clifford Geertz*****).

* Hofstede, Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Thousand Oaks, CA: Sage, 2001.
** Kluckhohn, “Culture and behavior,” in Gardner Lindzey (ed.), Handbook of Social Psychology. New York: McGraw‐Hill, 1951, pp. 921–76.
***House et al. (eds.), Culture, Leadership, and Organizations.
**** Swidler, “Culture in action: Symbols and strategies,” American Sociological Review, 1986, 51(2), pp. 273–86.
***** Geertz, The Interpretation of Cultures. New York: Basic Books, 1973.
 3‐2 Beliefs, Values, and Worldviews (continued)
Finding a suitable working definition of culture … emerging questions
 Taken together, these definitions suggest that from the standpoint of international
management, culture is perhaps best thought of as addressing four questions:

1. Who are we?

2. What do we believe?
3. How do we live?
4. Why do we work?

 These four questions focus attention on individuals, environments, and work norms and
values.
 The answers to these questions allow us to draw some inferential conclusions about
work and society and how managers in general should behave as they work across
cultures.
 3‐2 Beliefs, Values, and Worldviews (continued)
Finding a suitable working definition of culture … emerging answers

 Four characteristics of culture common to these definitions are particularly salient:

1. Culture is generally shared by members of a group. Indeed, it sometimes defines the membership
of the group itself. Cultural preferences are neither universal around the world nor entirely
personal; they are preferences that are commonly shared by a group of people, even if not by all
members of the group.
2. Culture is learned through membership in a group or community.
3. Culture influences the attitudes and behaviors of group members. Many of our innate beliefs,
values, and patterns of social behavior can be traced back to our particular cultural training and
socialization.
4. Societal beliefs, norms, and values systematically encourage what are seen as normative behaviors,
typically meaning “correct” behaviors. These behaviors, in turn, are reflected in the laws,
regulations, and public policies. As a result, “correct” behaviors typically serve to reinforce cultural
norms. These behaviors, in turn, are reflected in the laws, regulations, and public policies. As a
result, “correct” behaviors typically serve to reinforce cultural norms.
3‐2 Beliefs, Values, and Worldviews (continued)
Finding a suitable working definition of culture … emerging answers
 3‐3 Cultures and Subcultures
Membership of multiple cultures
 Everyone is like a mosaic – a member of multiple cultures, including
political, family, religious, and professional cultures, and each of
these factors has an influence on human behaviour*.
 When attending international meetings, it doesn’t take long before
accountants, engineers, or teachers realize they share common
beliefs and professional standards with their professional
colleagues regardless of their country of origin.
 People with liberal or conservative political beliefs, or with different
religious affiliations, also frequently cross national cultural divides.
 The key question for managers here is how to capitalize on these
differences across subcultures in ways that allow people to
experience genuine affinity with groups and organizations and be
willing to participate in goal‐directed endeavors.

* Georgia Chao and Henry Moon, “The cultural mosaic: A metatheory for understanding the complexity of culture,” Journal of Applied
Psychology, 2005, 90(6), pp. 1128–40.
 3‐4 EMIC and ETIC Perspectives
Insider and Outsider Views…

 An emic perspective tries to understand how for example, Latinos and Hispanics see their
own culture and how they view the world. This is largely an insider’s view
 An outsider to the culture can learn an emic perspective, but it takes both time and the
suspension of ethnocentrism.
 An etic perspective focuses on how outsiders describe cultures
 Unfortunately, some people from outside a culture will not have an objective etic
perspective on a different culture; they might have an ethnocentric perspective, which
means they interpret behavior and beliefs in light of their own culture*.
 At the same time, most people from inside a culture also won’t have an etic perspective
about it; they too might have an ethnocentric perspective, interpreting behavior and
beliefs in light of their own culture. To this end, objectivity remains an almost unattainable
goal. Therein lies the challenge for cross‐cultural interactions.
* James Olive, “Reflecting on the tensions between emic and etic perspectives in life history research: Lessons learned,”
Forum: Qualitative Social Research, 2014, 15(2), article 6.
3‐5 Models of National Cultures
3‐6 Core Cultural Values
 3‐5 Models of National Culture
Tools for decoding individual national cultures…

 Edward T. Hall*, a noted cultural anthropologist conducted ethnographic research in several Western
cultures, including Germany, France, the United States, and Japan.
 In Culture’s Consequences, Hofstede** compares culture to the “software of the mind” that
differentiates one group or society from another. Hofstede’s model was derived from a study of
employees from various countries working for major multinational corporations. He assumed that
different cultures can be distinguished based on differences in what they value.
 Fons Trompenaars initiated and later partnered with Charles Hampden‐Turner*** to develop a
somewhat different approach to the study of cultural differences based on a study of Shell and other
managers. The emphasis of their model is on variations in both values and personal relationships across
cultures and includes seven dimensions. The first five dimensions focus on relationships among people,
while the last two focus on time management and society’s relationship with nature.
 GLOBE Model was developed by Robert House**** and an international team of researchers. Their
investigation was called the GLOBE study, for Global Leadership and Organizational Behavior
Effectiveness. This study focused largely on understanding the influence of cultural differences on
leadership and leadership processes. While several of these dimensions have been identified previously
(e.g., individualism/collectivism, power distance, and uncertainty avoidance), others are unique to this
project (e.g., gender egalitarianism and performance orientation).

* Edward T. Hall and Mildred R. Hall, Understanding Cultural Differences, Yarmouth, ME: Intercultural Press, 1990.
** Hofstede, Culture’s Consequences.
***Fons Trompenaars and Charles Hampden‐Turner, Riding the Waves of Culture: Understanding Diversity in Global Business, 4th ed.
London: McGraw‐Hill, 2020.
****House et al. (eds.), Culture, Leadership, and Organizations.
3‐5 Models of National Culture (continued)
Tools for decoding individual national cultures…
3‐5 Models of National Culture (continued)
Evaluating the tools for decoding individual national cultures…

 Each of the above models offers a well‐reasoned set of ETIC dimensions that can be
used for comparison purposes.

 They provide us with a form of shorthand for cultural analysis and teach us what to
look for when we’re trying to decode a cultural interaction.

 However, critics of this research point out with some justification that all four models
and the research underlying them focus too much on comparing central tendencies
between cultures and not enough on comparing the differences within cultures.
 3‐6 Core Cultural Values
Six Cultural Values…
 This lack of convergence presents important challenges both for researchers and
managers trying to understand new cultural settings.
 Instead of advocating one model over another, the best approach for managers is to
see how various aspects of these models can be useful in work settings. The most
productive approach is to highlight key core cultural values that can help managers
better understand business and management in cross‐cultural settings*
 We can organize these core cultural values into six categories:
1. environment,
2. power distribution,
3. interpersonal relationships,
4. time orientation,
5. action, and
6. sources of truth

* Allan Bird and Joyce S. Osland, “Making sense of intercultural collaboration,” International Studies of Management and
Organization, 2005, 35(4), pp. 115–35; Nardon and Steers, “The culture theory jungle.”
 3‐6 Core Cultural Values
Environment…mastery and harmony cultures

 Regarding their relationship with the surrounding world, people may see themselves as either
mastering their environment or seeking to live in harmony with it.

 Mastery cultures tend to be more dynamic, competitive, and likely to use technology to manipulate
the environment and achieve goals.

 Harmony cultures believe in understanding and integrating with the environment, rather than
attempting to change it. This view extends to how people think they should control each other in
the workplace.

 For example, most employees in a mastery‐oriented culture will respond to challenges and
personal incentives; they will strive for success. Employees in more harmony‐oriented cultures will
likely focus their attention on building or maintaining group welfare, personal relationships, and
environmental sustainability. They tend to be more committed to social progress. They will be more
responsive to participative leadership and be more sceptical of proposed change.
 3‐6 Core Cultural Values
Environment (continued)…locus of control

 A related dimension focusing on the environment is locus of control, which refers to beliefs about
how much people either control their own destiny (internal locus of control or inner‐oriented) or
are at the mercy of uncontrollable forces, such as fate or luck (external locus of control or outer‐
oriented).

 For example, employees with an internal locus of control are more likely to take initiatives to
succeed because they believe they control much of their own destiny.

 Employees with an external local of control will likely show less initiative since they believe that
achievement is largely beyond their own control.
 3‐6 Core Cultural Values
Environment (continued)…
 Two additional environmental factors can influence interpersonal
relationships and workplace behavior.

 The first is a trustworthy‐untrustworthy value that often influences how

long it takes to establish trust. If members of a culture assume that human
nature is basically untrustworthy, they will approach new business
relationships with more caution and employ more control mechanisms to
guard against unethical behavior.

 The second is a general belief about whether human nature is mutable or

immutable – subject to change or set in stone. If a culture believes that
people cannot change, this determines who is hired (people who are fully
developed versus those who simply show potential) and how much
opportunity employees are given to learn more acceptable workplace
behaviors.
3‐6 Core Cultural Values
Power Distribution…hierarchical and egalitarian cultures

 All societies have normative beliefs governing how power and influence should be
distributed and used. Typically, these norms are expressed in terms of whether power
should be clustered at or near the top of a hierarchy or distributed in a more egalitarian
fashion.
 In other words, is the culture more hierarchical or egalitarian?
 In hierarchical cultures, the social fabric is maintained by a hierarchy of ascribed roles. This is
accompanied by an acceptance that power is distributed unequally (what Hofstede calls high
power distance). Those at the top have a greater voice and more freedom to act as they
wish.
 In contrast, egalitarian cultures (similar to Hofstede’s low power distance value) assume that
people are equal, and that power should be distributed more evenly.
3‐6 Core Cultural Values
Interpersonal relationships…individualism‐collectivism

 Three important cultural values focus on interpersonal relationships and how identity
and status are determined: individualism‐collectivism, achievement‐ascription, and
universalism‐particularism.
 The concept of individualism‐collectivism is the most extensively studied cultural value.
 Individualistic cultures are generally found in most northern and western regions of
Europe and in North America. Individualism is defined as the extent to which people are
responsible for taking care of themselves and giving priority to their own interests.
 Collectivistic cultures are characterized by individuals who subordinate their personal
goals to the interests of some collective. Individuals give their loyalty to a group and, in
return, the group takes responsibility for the individual. Collectivism is common in Asia,
Africa, South America, and the Pacific.
 3‐6 Core Cultural Values
Interpersonal relationships (continued)…achievement‐ascription
 A second source of identity found within both societies‐at‐
large and work groups concerns how cultural members gain
status – via achievement or ascription.

 In achievement cultures, people are expected to accomplish

things to earn status (e.g., working hard, becoming successful).

 By contrast, ascription cultures bestow (ascribe) status on

their members based on their family, age, class, gender, or
education.
3‐6 Core Cultural Values
Interpersonal relationships (continued)…universalism‐particularism

 Universalistic cultures (also called rule‐based cultures) believe that the rules
apply equally to everyone, resulting in the same treatment.

 However, particularistic cultures (also called relationship‐based cultures) expect

one’s relationship to influence the treatment that one receives and, therefore,
exceptions for friends or important people are normal.

 These values often influence personnel decisions, like hiring and promotion, and
ethical practices at work.
3‐6 Core Cultural Values
Time Orientation…synchronic‐sequential and past‐present‐future

 The fourth key cultural value focuses on time and its use. Two factors are important
here: the use of time (synchronic vs. sequential) and the focus on time (past, present,
and future).

 Synchronic‐sequential  Past‐present‐future
 Another time‐related belief concerns
Cultures often have very different beliefs whether people take their cues in everyday
about time that are generally referred to as life from the past, present, or future.
synchronic time (also called polychronic) time
versus sequential time (also called  In decision‐making a focus on the past
implies that more attention is given to
monochronic) time. following precedents and tradition,
A synchronic approach to time means that  A present orientation may lead to more
people do several things at the same time. immediate, short‐term considerations.
A sequential approach means that people  A future orientation raises more
tend to divide activities in a sequence, consideration of the long‐term
focusing more on one aspect at a time. consequences of decisions.
3‐6 Core Cultural Values
Action…being‐doing and relationship‐task
 Cultures tend to conceptualize their primary mode of activity in terms of being or doing.
 In “being” cultures (what Hofstede calls feminine cultures), the emphasis is on enjoying life
in the moment and nurturing others.
 “Doing” cultures (Hofstede’s masculine cultures) emphasize achievement, assertiveness, and
materialism.
 This dichotomy is often described as “working to live” (being) versus “living to work” (doing).
 These values influence how employees perceive work rewards; “doing” cultures are
comfortable rewarding good performance, while “being” cultures may express concern that
merit pay or bonuses could have a negative impact on their co‐workers or the work
environment.

 Relationship cultures place an emphasis on working relationships. Task‐based cultures place

an emphasis on completing tasks.
3‐6 Core Cultural Values
Sources of Truth…

 Finally, cultures can vary in their views of what anthropologists call the ‘sources of truth’.
 Some cultures believe that the right answers are obtained from experts while others trust their own
experience.
 Do people believe that truth comes primarily from scientific research, legal precedent, the opinion of
experts, tradition, personal experience, or trial‐and‐error experimentation?
 Every day managers are faced with moral or ethical dilemmas relating to conflicting personal and
societal beliefs and values.
 To the extent that these observations have merit, truth is in the eye of the beholder. That is, the
“truth” is not always the “truth.”
3‐6 Core Cultural Values
Six cultural values summarised…
 3‐7 Using Cultural Models
3‐8 Caveats About Using Cultural Models
 3‐7 Using Cultural Models
Snapshots are a start…not the end…

 Using concepts like individualism‐collectivism, universalism‐particularism, and

synchronic‐sequential time allows managers to frame their observations and
insights both before and after intercultural episodes.
 Equally important here is a recognition that each of the models discussed can focus
on different aspects of cultural environments. As such, choosing a model for use in
the field can be an important decision.
 In all cases, however, caution is in order to remember that these models only give
us a snapshot or preview of what to look for in understanding cultures.
 They are the beginning, not the end, of cultural analysis and understanding. How
deeply held are these attributes among general populations or groups?
 To answer this question, we can differentiate between tight and loose cultures*

* Irem Uz, “The index of cultural tightness and looseness among 68 countries,” Journal of Cross‐Cultural Psychology, 2014, 46(3),
pp. 319–35; M. J. Gelfand, L. Nishii, and J. L. Raver, “On the nature and importance of cultural tightness–looseness,” Journal of
Applied Psychology, 2006, 91, 1225–44; J. R. Harrington and M. J. Gelfand, “Tightness–looseness across the 50 United States,”
Proceedings of the National Academy of Sciences of the United States of America, 2014, 111, pp. 7790–5.
3‐7 Using Cultural Models
Tight versus loose cultures…

 If a culture is characterized by strong and pervasive norms and sanctions for

deviating from these norms, it is considered a tight culture.
 In tight cultures, people’s values, norms, and behavior are similar to each other,
and values are strongly held. Thus, cultural tightness can be conceptualized as
strong homogeneity in values, norms, and behaviors.

 By contrast, in loose cultures, norms and values are less deeply held and greater
variations around norms are permitted and sometimes even encouraged.
3‐7 Using Cultural Models
Tight versus loose cultures (continued)…

 Cultures strong in collectivism are often seen as tight cultures, while more
individualistic cultures are often described as loose.
 Hence, it is not surprising that Pakistan (12.3) and Malaysia (11.8) are described as
having strong cultural tightness, while countries like Ukraine (1.6) and Estonia (2.6)
are described as having loose cultures. However, this is not always the case.
Norway (9.5), for example, has a strong individualistic culture, but it also has a very
tight culture; that is, individualistic beliefs are strongly held among its citizens.
 3‐8 Caveats About Using Cultural Models
Warnings…and recommendations….

 Not everyone fits cultural norms. Think of each cultural value

dimension discussed above as a bell‐shaped curve with a central
median or norm at the highest point that characterizes the majority of
culture members, but remember that there are also outliers at both
tails – people who are very low or very high with respect to each value.
Thus, we can expect to see a good deal of variance within cultures.

 We also know that personality differences are responsible for varied

behavior within cultures and that many other factors can also
determine culture, such as history, geography, and so forth. Therefore,
we can’t attribute everything we observe to cultural values.

 If we rely solely on these cultural values, we risk stereotyping whole

cultures.
 3‐8 Caveats About Using Cultural Models
Warnings…and recommendations (continued)….

 In summary, managers should:

1. Use cultural dimensions as a wide set of interpretative frames. While they might not
give specific answers, they are invaluable in providing a range of new lenses available to
us while making sense of the situation.
2. Approach learning another culture like a scientist who holds conscious stereotypes
and hypotheses to test them.
3. Seek out cultural mentors and people who can explain why people behave as they do.
4. Learn how to act appropriately by adopting the cultural scripts that locals use in
different contexts.
3‐9 Social Complexity, Biculturalism,
Multiculturalism

3‐10 Summary
3‐9 Social Complexity, Biculturalism, Multiculturalism
Identifying three challenges for managers…

 Global managers have also become more sensitive to the differences among multiple cultures
within countries and individuals. Most societies are bicultural or multicultural to varying
degrees, due to historic ethnic groupings and traditions or to immigration. As a result, we find
the following three challenges in cross‐cultural encounters in the world of business:
1. Dominant culture. In situations where people from two different cultures interact, it is not
always clear who has the dominant role.
2. Behavioral differences. People often behave differently in cross‐cultural situations than
they do in intra‐cultural situations.
3. Subgroup behavior. Cultures are fragmented, and even within a particular cultural
environment different behavior can often be observed in different subgroups
 3‐9 Social Complexity, Biculturalism, Multiculturalism
Identifying three challenges for managers…

 Biculturals are individuals who have internalized more than one

cultural profile, by growing up in a bicultural household or by
significant exposure to another culture*

 Multiculturalism refers to the existence of ethnically or racially

diverse segments in the population of a society and includes the
notion that such differences have some social significance**

* Mary Yoko Brannen and David Thomas, “Bicultural individuals in organizations: Implications and opportunity,” International
Journal of Cross Cultural Management, 2010, 10(1), pp. 5–16.
** Jennifer Eagan, “Multiculturalism,” Encyclopedia Britannica, 2017. Retrieved December 1, 2022.
www.britannica.com/topic/multiculturalism
 3‐9 Summary
What were the key points covered?

 Almost everyone is a member of multiple cultures, including political, family, religious, and
professional cultures, and each has an influence on human behavior.
 Several models of national cultures (Hofstede, Hall, GLOBE, Trompenaars), along with their
cultural values, are available to help understand cultural differences on a general level. But
these models are only a starting point in trying to understand how cultures work and how to
work with cultures.
 Instead of advocating one model over another, we identified six core cultural values:
‘environment’, ‘power distribution’, ‘interpersonal relationships’, ‘time orientation’, ‘action’,
and ‘sources of truth’
 We identified three challenges facing managers – ‘dominant culture’, ‘behavioural
differences’ and ‘sub‐group behaviour’
 We concluded that International managers operate in multicultural societies and work
settings
 Next lecture:
Organizational Environments