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To cite this document:
Tony Morden, (1999),"Models of national culture a management review", Cross Cultural Management: An International
Journal, Vol. 6 Iss 1 pp. 19 - 44
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http://dx.doi.org/10.1108/13527609910796915
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The Author
Tony Morden is a Principal Lecturer, School of Business and Management,
University of Teesside, Middlesbrough, UK
Abstract
The purpose of this article is to summarise, analyse, and compare various
models of national culture; and to discuss their relevance to the study and
practice of local and international management.
The article defines national culture and describes the cross-cultural purpose of models of national culture. It summarises, analyses, and illustrates:
- single dimension models
- multiple dimension models
- historical-social models
of national culture and applies these on a polycentric basis within the context of the process and practice of management.
The article concludes with a summary comparison of the various models of national culture described in detail in it.
Introduction
This article defines national culture, and comments on the relevance of national culture to the study and practice of management. It describes the
cross-cultural purpose of models of national culture. It summarises, analyses, and illustrates:
- single dimension models
- multiple dimension models
- historical-social models
of national culture; and applies these within the context of the process and
practice of management.
National Culture Defined
Hofstede [1, 2] defines national culture as the collective mental programming
of the people of any particular nationality. Hofstede suggests that people
share a collective national character which represents their cultural mental
programming. This mental programming shapes the values, attitudes, competences, behaviours, and perceptions of priority of that nationality.
19
22
such people time is a scarce resource which has its opportunity cost. There
may be a perception that time is money.
Polychronic cultures are flexible and unconstrained by concerns with
time. Polychronic people do many things at once, often in an unplanned or
opportunistic sequence. They may not be interested in time schedules or
concepts of punctuality. They consider that the reality of events and opportunities is more important than adherence to what they perceive to be
artificial constructs of planning, schedules, and appointments. Time is neither seen as a resource nor as an opportunity cost that equates to money.
Matters can always be settled tomorrow. Lewis suggests that, for example,
Indians, Polynesians, Latin Americans, and Arabs are polychronic.
Monochronic and polychronic characteristics are compared in Table 1.
Morden [6] suggests that the mixing of monochronic and polychronic cultures may give rise to constant culture clash and disagreement. It may call for
the establishment of agreed modes of co-operation and co-ordination.
On the other hand, the mixing of these two cultures may yield synergies
as features of each complement the other. For instance, the greater flexibility of the polychronic may facilitate ongoing developmental processes that
are subject to unpredictable external change, making it easier for the monochronic to modify plans and schedules in order to adapt.
A suggested monochronic - polychronic demographic scale is shown in
Figure 4.
Fukuyamas Analysis of Trust
Fukuyama [3] analyses the relationship between trust, social capital, and the
development of organisation and management. He identifies and compares
low trust and high trust societies. Fukuyama comments that a high trust society can organise its workplace on a more flexible and group-oriented basis, with more responsibility delegated to lower levels of the organisation.
23
Polychronic
introvert
patient
quiet
minds own business
likes privacy
plans ahead methodically
does one thing at a time
follows systems
works fixed hours
punctual
dominated by timetables and schedules
compartmentalises projects
extrovert
impatient
talkative
inquisitive/interfering
gregarious
plans grand outline/"vision"
does several things at once
mixes systems
works any hours
unpunctual
timetable unpredictable
lets one project influence another
sticks to plans
sticks to facts
gets information from statistics,
reference books, database
changes plans
juggles facts
gets first-hand, oral information
job orientated
works within department
follows correct procedures
accepts favours reluctantly if at all
people orientated
goes round all departments
pulls strings
seeks favours
Low-trust societies, by contrast, must fence in and isolate their workers with
a series of bureaucratic rules. Workers usually find their workplaces more
satisfying if they are treated like adults who can be trusted to contribute to
their community rather than like small cogs in a large industrial machine
24
Such countries (Fukuyama quotes the USA and Japan) appear to possess the ability spontaneously to generate strong social groups/organisations in the middle part of the spectrum - that is, in the region between the
family on the one hand, and the state on the other. He suggests that this
ability is missing in such countries as China and Russia, and in the Latin
Catholic countries which he categorises as low trust in character.
In contrast with low-trust societies, high trust ones have strong organisations in the middle, rather than the saddle shaped distribution of organisations at the poles of family and state. In other words, there appears to be
a relationship between high trust societies with plentiful social capital, and
the ability to create large, private business organisations. Such societies can
be contrasted with familistic ones in that they are characterised by a high
degree of generalised social trust, and a strong propensity for the spontaneous sociability upon which middle range enterprise formation depends.
Fukuyama suggests that the most effective organisations are based on
communities of shared ethical values. These communities do not require extensive contractual or legal regulation of their relations and social architecture because prior moral consensus gives members of the group a basis for
mutual trust. Fukuyama comments that social capital has major consequences for the nature of the industrial economy that society will be able to
create. If people who have to work together in an enterprise trust one another because they are all operating according to a common set of ethical
norms, doing business costs less. Such a society will be better able to innovate organisationally, since the high degree of trust will permit a wide variety of social relationships to emerge. Hence, the...sociable Americans
pioneered the development of the modern corporation in the late nineteenth and early twentieth centuries, (whilst) the Japanese have explored
the possibilities of network organisations in the (later) twentieth. By contrast, people who do not trust one another will end up co-operating only under a system of formal rules and regulations, which have to be negotiated,
agreed to, litigated, and enforced (if necessary by coercive means). This legal apparatus, serving as a substitute for trust, entails what economists call
transaction costs. Widespread distrust in a society, in other words, imposes a kind of tax on all forms of economic activity, a tax that high-trust
societies do not have to pay (pp.27-28).
Within this context, Fukuyama makes particular reference to the syndrome of free riding. Fukuyama contends that societies manifesting a high
degree of communal solidarity and shared values may enjoy a more effective management process than their low-trust counterparts in that they may
lose less value from free riders. Free riders benefit from value generation
by an organisation or society, but do not contribute proportionately (or at
26
Typical Countries
Power Distance
large;
Uncertainty
Avoidance strong
Latin-European;
Latin-American;
Japan; South Korea;
Arab countries
Power Distance
small; Uncertainty
Avoidance strong
Germany; Austria;
Switzerland;
Israel
Power Distance
large; Uncertainty
Avoidance weak
Power Distance
small; Uncertainty
Avoidance weak
Nordic and
Anglo Saxon;
Jamaica
pend on the resolution of seven value dilemmas. They contend that these dilemmas, and the varying solutions associated with them, permit the
manager to understand key cultural differences between the approach taken
by different nationalities to the process and practice of management. These
seven value dilemmas are:
[1] Making rules and managing exceptions (universalism versus
particularism). The enterprise must to some degree formalise, standardise, and codify its operations in order to ensure consistency and
continuity. There exists a minimum (or requisite) level of bureaucracy
without which enterprise activities cannot be reliable or systematic. At
the same time, however, the value system needs to be able to recognise,
and deal with exceptions, changes, and the need for innovation.
[2] Deconstructing and constructing (analysing versus integrating).
The management process may require either or both (i) the analysis of
concepts or phenomena into their constituent parts; and (ii) their integration into whole patterns, relationships, and wider contexts. Analysis and integration are the opposite ends of an intellectual process,
illustrated by the tendency of Anglo-Saxons to analyse (deconstruct);
and Eastern (and Germanic) societies to seek cohesive patterns (construct or integrate).
[3] Managing communities or individuals (individualism versus
communitarianism). Work organisations must support and motivate
the individual employee, looking to their personal motivation and career aspirations. At the same time, the contribution of the individual
must be seen within the wider context of the community that is the enterprise. How should the enterprise define the character of the relationship between the individual and the organisation; and how should it
manage that relationship? Ultimately, whose interests are defined
within the value system to come first? The relationship between the individual and the organisation provides a key dilemma, particularly in
societies identified by Hofstede as strongly individualistic.
28
[6] Achieved status versus ascribed status. The value set of the enterprise needs to determine the basis for allocating status and reward.
The allocation of status may depend upon the achievement of certain
types of criteria directly associated with enterprise performance within
its market or operating context. Or, it may instead depend upon some
other characteristic important to enterprise management. Such criteria
might include age, seniority, length of service, education, family associations, or past service to the state.
[7] Equality versus hierarchy. Different corporate value sets will give
different emphasis to the establishment of hierarchical order and
authority, or the achievement of equality.
29
the tension between pragmatism and idealism/wholism that characterises European approaches to the theory and practice of management.
The Anglo-Saxons and the Dutch tend to take a more pragmatic line towards management issues than their more idealistic or wholistic German counterparts.
the tension between a rationalist approach to dealing with management issues, as for instance taken by the French; and the humanist or
people-oriented approach that is characteristic of the family companies
of Italy and Spain.
Lessem & Neubauers matrix is reproduced in Figure 6. Lessem & Neubauers four criteria are analysed below.
Pragmatism
Pragmatism is a dominant influence in the conceptualising of management
principles and practice, especially in the English speaking Anglo-Saxon
world. Pragmatism is:
*
competitively focused.
action orientated.
PRAGMATISM
IDEALISM/WHOLISM
HUMANISM
a tendency to see time in practical terms as a sequence. Perceived patterns in time, or concepts of synchrony, may be rejected as being subjective or academic constructs.
a tendency to outer-directedness.
Rationalism
Rationalism is defined by the OED as a theory which regards reason, rather
than sense (or experience) as the foundation of certainty in knowledge.
Rationalism is typically French, but is also characteristic of much of Northern Europe. Rationalist management is characterised by:
*
a focus on the organisation through concepts of structure, role, hierarchy and requisite bureaucracy.
developmental processes.
The Carl Zeiss company was founded in 1846 by Carl Zeiss, a university technician who was born
in 1816. Its sister company, the Schott Glaswerke, was established with the assistance of Ernst Abbe.
Otto Schott carried out research into the dependence of optical and other properties of glass on its composition. The two companies achieved synergy by developing products which complemented each
other at the forefront of technology.
Ernst Abbe, a physicist, had become a partner of Carl Zeiss in 1875. Abbe sowed the seeds of future success in two ways. Firstly, he employed eminent scientists and was thereby able to expand the
product range. Secondly, he established the company as a foundation (stiftung) in 1889, following the
death of Carl Zeiss. The Foundation was to become the sole owner of both the Zeiss works and its sister,
the Schott Glaswerke.
The Foundation Statute, designed by Abbe, is summarised below:
Stated Aims
* to develop, produce and sell high-quality products in the fields of optics, precision engineering, electronics and precision glass technology for national and international markets.
* to provide employees with exemplary social benefits.
* to allow employees to develop their capabilities to the full.
* to promote important work in science and technology, and to participate in activities of general social
value.
Principles
* science and technology complement each other.
* science, technology and economic activity should serve mankind, and not vice versa.
* economic stability and progress safeguards jobs.
* the company and its employees are mutually dependent.
Science, progressive technology, and social responsibility are therefore the determinants of the activities of the Carl-Zeiss-Stiftung.
a tendency towards egalitarianism. Status is achieved through functional expertise and operational performance.
Humanism
Humanism is defined by Websters Dictionary as pertaining to the social life
or collective relations of mankind; devoted to realising the fullness of hu33
particularism: it is the managers job to deal with exceptions and individual cases as they arise. The universalistic application of rules may be
perceived as being synonymous with bureaucratic control by the state,
and with corruption by officials.
the perception of time as short term sequence within longer term historical patterns or synchrony.
Historical-Social Models
The national culture models described under this heading are based on
historical-social dimensions or variables. Two models are described and illustrated below.
The Euromanagement Study
Bloom et als 1994 book Euromanagement [15] is based on a major study
which aimed to find out whether there are any common characteristics be34
Chen [17] notes that whilst Confucius identified many kinds of human relationships, the five cardinal relations are the most fundamental. These five relationships and their appropriate characters are:
-
Chen comments that these five cardinal relationships are based on differentiated order among individuals. This means that the Confucian concept of
these relationships emphasises the importance of differentiation in social hierarchical order. Hence, Confuciuss famous saying goes let prince be
prince, subject be subject, father be father, son be son.
The five fundamental relations can also be classified into predetermined
relationships (such as father-son and brother-brother) and voluntarily constructed ones (such as friend-friend relations)...in the first category (predetermined relationships), the self is underdeveloped, as individual behaviour
is more or less dictated by fixed status and responsibilities. For thousands of
years, it has been drummed into people that relationships, especially those
within the family, are very important and the individual per se is less important. A Chinese is enmeshed within a network from birth, whether it is the
family, the work unit, the government or the Party...in other words, a Chinese is not primarily an individual, rather, he or she is a member of a family. Children should learn to restrain themselves, to overcome their
individuality so as to maintain harmony in the family.
In the second category (voluntarily constructed relationships) the self
becomes much more dynamic...in building new relationships...the self takes
initiative and is active...it is the individual who is capable of defining roles
for himself and who is located at the centre of the relationship...the individual is the initiator of social interactions in the non-predetermined cardinal
relationships with others beyond the familial environment. The individual is
a true and sophisticated architect in relationships (pp.56-57).
The strategic thinking of Sun Tzu
Sun Tzu was an adviser to the Chinese Emperor Wu. His teachings, compiled in about 500 BC, are based on historical Chinese experience of fighting wars and handling the frequent conflicts that characterised the times.
Sun Tzus book, The Art of War, [20], describes effective and ineffective
strategies by which to fight wars or defeat the opponent. The Chinese ideo38
gram for strategy is the same as that for war, so it is natural for the Chinese (and other South East Asian adherents) to perceive the two concepts in
the same light. As a result, South East Asians tend to perceive the marketplace as a battlefield. Strategies for waging war have therefore been applied
to strategies for waging business. In terms of management style and process,
these strategies include the following:
[1] Strategic management (applying and implementing strategy): there is a
need for effective strategic planning and strategic management. Chen
[17] comments that with careful and detailed planning, one can win;
with careless...planning, one cannot win (p.42). The objective should be to
conquer by strategy; the most important thing is to avoid head-on conflicts.
[2] Moral influence: by which Sun Tzu meant the degree to which the people
are in good accord and agreement with their ruler, such that they will be
willing to accept the hardship and dangers of war. In a competitive business world, the manager should try as much as possible to establish corporate goals that are shared by all employees, so that all in the company
come to view themselves as members of the group crossing the river in the
same boat. They would be more likely (to) consider company affairs as
their own and be willing to make personal sacrifices when needed (Chen,
p.43).
[3] The ability of generals: a good general, according to Sun Tzu, should possess five key qualities. These are wisdom, sincerity, benevolence, courage
and strictness.
Chen suggests that these...qualities of generalship can be used to
measure corporate leadership. A corporation is not unlike an army in
terms of its organisation. A powerful and efficient leader is indispensable
to the success of a corporation. The five positive qualities of Sun Tzus
generalship are also those needed by chief executive officers (p.44).
[4] Regulation, delegation, and training: Sun Tzu stressed the need for formalised sets of rules and regulations; the designation of rank and status; the
proper allocation of responsibilities; and the establishment of appropriate organisation structure.
It is also necessary to delegate the appropriate power and authority to
subordinates; or rather to the most able subordinates. Chen comments
(pp.48-49) of Sun Tzus preconditions for victory (that) he whose generals are able and not interfered with by the sovereign will win. This is the
principle of not using the suspectable at all and using the trustworthy with
full confidence... he advised a good balance between an authoritarian
leader and unorganised decentralisation, as either of (these) extremes is
harmful to an organisation.
The implication is that in a highly competitive environment, corporate
managers should have sufficient authority and flexibility such that they
39
The taipans
The taipan is defined by Cragg [18] as the supreme ruler or big boss.
The title of taipan is accorded in the east to those leaders considered worthy
of great respect, in the strictest of Confucian traditions. This respect is paid
to the taipans business acumen and achievement.
The first taipans were the British (and especially Scots) heads of the
Hong Kong trading companies. Cragg suggests that one of the most memorable of these original taipans was William Jardine...(who) was known locally as the Iron-Headed Old Rat ([18], p.2).
Taipans from a variety of nationalities are now to be found throughout
South East Asia. There are South Korean taipans, Malays, Thais and Philippinos. But many of these taipans are overseas Chinese.
Cragg describes the taipans of South East Asia as sharing such characteristics as being:
-
steeped in the ways of both East and the West; and being capable of
managing the cultural schizophrenia and dilemmas to which such a
dual focus gives rise.
40
Mono-
Trust (Fu-
text (Hall)
chronic/Poly-
kuyama)
Hofstede
chronic (Lewis)
Hampden-
Lessem and
Euromanage-
South East
Turner and
Neubauer
ment (Bloom et
Asian Manage-
Trompenaars
al)
ment (Chen,
Cragg and Sea-
grave)
1. Seeking
information/knowledge
2. Single focus/concentrated behaviour
3. Multiple focus/diffused
behaviour
4. Low trust
5. Familism
6. High trust
7. Power Distance
8. Uncertainty Avoidance
9. Individualism Collectivism
10. Masculinity - Femininity
11. Making rules/managing
exceptions
12. Deconstructing/
constructing
13. Managing
individuals/
managing
communities
14. Boundary management
15. Conceptualising time
16. Achieved status/
ascribed status
17. Equality/hierarchy
18. Pragmatism
19. Rationalism
20. Wholism/idealism
21. Humanism
22. Managing diversity
23. Social responsibility
24. Negotiative/relational
behaviour
25. Informality
26. Taoism
27. Confucianism
28. The role of the
mandarin/professionalism/elitism
29. Work ethic
30. Personal
relationship/guanxi
31. Face
32. The five cardinal
relations
33. The strategic influence
of Sun Tzu
34. Leadership/leadership
qualities
35. Delegation and training
36. The role of the Taipan
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
41
X
X
X
The main features of the national culture models described and illustrated
in this article are summarised and compared in Figure 7.
42
[20] Sun Tzu (1971). The Art of War. Translated by S.B. Griffith, Oxford
University Press, Oxford. Original c.500 BC.
44
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