Understanding Cultural Dimensions in International Business
Ch. 2 Dimensions of Culture
Universalism vs. Particularism (Rules vs. Relationships)
• Universalism vs. Particularism (rules vs. relationships)
• Individualism vs. Communitarianism (the individual vs. the group)
• Neutral vs. Affective Cultures (the degree to which feelings are expressed)
• Specific vs. Diffuse Cultures (the degree of involvement)
• Achievement vs. Ascription Cultures (how status is accorded)
Universalism vs. Particularism
- Universalist, or rule-based, behavior tends to be abstract. Rule-based conduct has a tendency to resist exceptions that might weaken that rule.
- Particularist judgments focus on the exceptional nature of present circumstances.
- Countries with strongly universalist cultures try to use the courts to mediate conflicts.
Individualism vs. Communitarianism
- The Group and the Individual
- Individualism has been described as “a prime orientation to the self” and communitarianism as “a prime orientation to common goals and objectives”.
Individualist View:
It is obvious that if individuals have as much freedom as possible and the maximum opportunity to develop themselves, the quality of their life will improve as a result.
Communitarian View:
If individuals are continuously taking care of their fellow human beings, the quality of life will improve for everyone, even if it obstructs individual freedom and individual development.
Trompenaars’ Seven Dimensions: Time
Sequential vs. Synchronic Time
- Whether time is sequential (a series of linear passing events) or synchronic (in which we can work on tasks in parallel)
- The magnitude of time horizon (the duration of thinking time). Is a business plan for the next three months, three years, or three decades?
- Clock or event time? E.G. do we get the job done in the scheduled time or deliver a better job a little later?
Inner vs. Outer Directed (Internal or External Control to the Environment)
- Internal control: one’s personal conviction is the starting point for every action, and this may result in conflict with others and resistance to nature.
- External control: sensitive to the environment and seeks harmony. Often flexible attitude, willing to compromise.
The Effects of Cultural Values on Management
- Time focus (time used in a linear way or multi-tasks?)
- Time orientation (past, present, or future-oriented?)
- Power (hierarchy or equality?)
- Competition (competitive or co-operative?)
High Context vs. Low Context Communication
- High Context: Face-to-face, video conference, etc. more formal.
- Low Context: Email, text, Twitter, etc.
Uncertainty Avoidance (High/Low)
The degree of tolerance for uncertainty or instability. For example:
- Low uncertainty avoidance: Uncertainty is normal, take the risk.
- High uncertainty avoidance: Uncertainty is threatening.
- Low uncertainty avoidance: Toleration of innovation.
- High uncertainty avoidance: Resistance to change.
- Low uncertainty avoidance: Hard work as such is not a virtue.
- High uncertainty avoidance: There is an inner urge to work hard.
Individualism vs. Collectivism Orientation
Independence and interdependence, the loyalty towards oneself and towards a group. For example:
- We and I.
- What’s best for the group vs. what’s best for the individual.
- Relationships over task or task over relationships.
Masculine vs. Feminine Orientation
Importance of work goals (earnings, advancement) compared with personal goals (co-operation, relationships). For example:
- Highly masculine cultures see work as a challenge, offering the possibility of high rewards and recognition. The stress is on performance, on competing with others to achieve goals.
- Highly feminine cultures give more attention to the broader picture, particularly to relationships with others in the workplace. Quality of life is a primary concern, not only how work is performed but also what the work achieves.
- Live to work vs. work to live.
- Sympathy for the successful achiever vs. sympathy for the unfortunate.
Short-Term vs. Long-Term Orientation
- Short-term oriented cultures: Focus on the past and present and are more static.
- Long-term oriented cultures: Focus on the future and are more dynamic.
- Short-term: Loyalty towards others can vary according to the needs of the business.
- Long-term: Develop and maintain lifelong personal networks.
- Short-term: People rewarded for their abilities.
- Long-term: Large social/economic differences should not be tolerated.
Ch. 6: Culture and Styles of Management
Time Orientation and Management Skills
- Time focus: Monochronic vs. Polychronic
Monochronic:
One thing at a time.
Polychronic:
Multiple things at the same time.
- Space: Public vs. Private
- Structure: Individualism vs. Collectivism
- Action: Doing vs. Being
- Time orientation: Past, present, future
- Power: Hierarchy vs. equality
- Communication: High context vs. low context
- Competition: Competitive vs. co-operative
Ch. 8: Leadership
Transformational Leader:
Choosing to influence, to encourage, motivate, and set an example for employees. Followers into leaders.
Transactional Leader:
Values order and structure, sales-motivated people.
Extras
- Motivation dilemma