The Meanings and Dimensions
of Culture
❖ The specific objectives of this chapter are to
1. DEFINE the term culture, and discuss some of the
comparative ways of differentiating cultures.
2. DESCRIBE the concept of cultural values, and
relate some of the international differences,
similarities, and changes occurring in terms of both
work and managerial values.
3. IDENTIFY the major dimensions of culture
relevant to work settings, and discuss their effects
on behavior in an international environment.
4. DISCUSS the value of country cluster analysis
and relational orientations in developing effective
international management practices.
4-1
The Nature of Culture
❖Culture is
➢ Acquired knowledge that people use to interpret
experience and generate social behavior. This
knowledge forms values, creates attitudes, and
influences behavior.
4-2
The Nature of Culture
❖Characteristics of culture
➢ Learned
➢ Shared
➢ Trans-generational
➢ Symbolic
➢ Patterned
➢ Adaptive
4-3
Priorities of Cultural Values
4-4
Cultural Diversity
How Culture Affects Managerial Approaches
❖Centralized vs. Decentralized Decision Making
➢ In some societies, top managers make all important
organizational decisions
➢ In others, these decisions are diffused throughout
the enterprise, and middle- and lower-level
managers actively participate in, and make, key
decisions
4-5
Cultural Diversity
How Culture Affects Managerial Approaches
❖Safety vs. Risk
➢ In some societies, organizational decision makers
are risk averse and have great difficulty with
conditions of uncertainty
➢ In others, risk taking is encouraged, and decision
making under uncertainty is common
4-6
Cultural Diversity
How Culture Affects Managerial Approaches
❖Individual vs. Group Rewards
➢ In some countries, personnel who do outstanding
work are given individual rewards in the form of
bonuses and commissions
➢ In others, cultural norms require group rewards,
and individual rewards are frowned upon
4-7
Cultural Diversity
How Culture Affects Managerial Approaches
❖Informal Procedures vs. Formal Procedures
➢ In some societies, much is accomplished through
informal means
➢ In others, formal procedures are set forth and
followed rigidly
4-8
Cultural Diversity
How Culture Affects Managerial Approaches
❖High Organizational Loyalty vs. Low
Organizational Loyalty
➢ In some societies, people identify very strongly with
their organization or employer
➢ In others, people identify with their occupational
group, such as engineer or mechanic
4-9
Cultural Diversity
How Culture Affects Managerial Approaches
❖Cooperation vs. Competition
➢ Some societies encourage cooperation between
their people
➢ Others encourage competition between their
people
4-10
Cultural Diversity
How Culture Affects Managerial Approaches
❖Short-term vs. Long-term Horizons
➢ Some culture focus most heavily on short-term
horizons, such as short-range goals of profit and
efficiency
➢ Others are more interested in long-range goals,
such as market share and technological
developments
4-11
Cultural Diversity
How Culture Affects Managerial Approaches
❖Stability vs. Innovation
➢ The culture of some countries encourages stability
and resistance to change
➢ The culture of others puts high value on innovation
and change
4-12
Values in Culture
❖Values
➢ Basic convictions that people have about
❖Right and wrong
❖Good and bad
❖Important and unimportant
➢ Learned from culture in which the individual is
reared
➢ Differences in cultural values may result in varying
management practices
4-13
Hofstede’s Cultural Dimensions
1. Power distance
2. Uncertainty avoidance
3. Individualism/collectivism
4. Masculinity/femininity
5. Time Orientation
6. Indulgence vs. Restraint
4-14
Hofstede’s Cultural Dimensions
❖Power distance
➢ The extent to which less powerful members accept
that power is distributed unequally.
❖High power distance countries: people obey
superiors with few questions; centralized, tall
structures (e.g., Mexico, South Korea, India)
❖Low power distance countries: flatter,
decentralized structures, smaller ratio of
supervisor to employee (e.g., Austria, Finland,
Ireland)
4-15
Hofstede’s Cultural Dimensions
❖ Uncertainty avoidance
➢ The extent to which people feel threatened by ambiguous
situations; create beliefs/institutions to avoid such situations.
❖High uncertainty avoidance countries: high need for
security, strong belief in experts and their knowledge;
structure organizational activities, more written rules, less
managerial risk taking (e.g., Germany, Japan, Spain)
❖Low uncertainty avoidance countries: people more
willing to accept risks of the unknown, less structured
organizational activities, fewer written rules, more
managerial risk taking, higher employee turnover, more
ambitious employees (e.g., Denmark and Great Britain)
4-16
Hofstede’s Cultural Dimensions
❖Individualism
➢ The extent to which people look after themselves
and immediate family only.
❖High individualism countries: typically
wealthier, ‘protestant’ work ethic, greater
individual initiative, promotions based on market
value (e.g., U.S., Canada, Sweden)
❖High collectivism countries: poorer, less
support of ‘protestant’ work ethic, less individual
initiative, promotions based on seniority (e.g.,
Indonesia, Pakistan)
4-17
Hofstede’s Cultural Dimensions
❖Masculinity
➢ A cultural characteristic in which the dominant
social values are success, money, and things.
❖High masculine countries: stress earnings,
recognition, advancement, challenge, wealth;
high job stress (e.g., Germanic countries)
❖High feminine countries: emphasize caring for
others and quality of life; cooperation, friendly
atmosphere., employment security, group
decision making; low job stress (e.g., Norway)
4-18
Hofstede’s Cultural Dimensions
❖Time Orientation (1988)
➢ A cultural characteristic dealing with society’s
search for virtue
❖Long-term oriented societies: focus on the
future, able to adapt traditions when conditions
change, tend to save and invest, focus on
achieving long-term results (Asian countries)
❖Short-term oriented cultures: focus on quick
results, do not tend to save, service to others,
belief in absolutes, value stability and leisure
(U.S., UK, Spain)
4-19
Hofstede’s Cultural Dimensions
• Indulgence vs. Restraint (2010)
– Indulgent: trait related to relative happiness based
on instant gratification
– Restraint: a cultural characteristic based on
regulating and controlling behavior according to
social norms
• Indulgent societies: perceived happiness, life
in control, positive emotions, basic needs
satisfied (U.S., UK, Australia, Chile)
• Restrained societies: less happiness, sense of
helplessness, less likely to remember positive
emotions, basic needs not always met (China,
Egypt, Romania) 4-20
