Chapter 2

Culture and Multinational

Management

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives
Define
Define culture
culture and
and understand
understand the
the basic
basic components
components
ofof culture.
culture.
Identify
Identify instances
instances ofof cultural
cultural stereotyping
stereotyping and
and
ethnocentrism.
ethnocentrism.
Understand
Understand how
how various
various levels
levels ofof culture
culture influence
influence
multinational
multinational operations.
operations.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives

Understand
Understand the
the Hofstede,
Hofstede, GLOBE,
GLOBE, and
and 7d
7d models.
models.
Appreciate
Appreciate the
the complex
complex differences
differences among
among cultures
cultures
and
and use
use these
these differences
differences for
for building
building better
better
organizations.
organizations.
Recognize
Recognize the
the complexity
complexity ofof understanding
understanding new
new
cultures
cultures and
and the
the dangers
dangers ofof stereotyping
stereotyping and
and cultural
cultural
paradoxes.
paradoxes.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What is Culture?
Pervasive
Pervasive and
and shared
shared beliefs,
beliefs, norms,
norms, values,
values, and
and
symbols
symbols that
that guide
guide everyday
everyday life.
life.
Cultural
Cultural norms:
norms: both
both prescribe
prescribe and
and proscribe
proscribe behaviors
behaviors
What
What we
we should
should do
do and
and what
what we
we cannot
cannot do.
do.
Cultural
Cultural values:
values: what
what isis good/beautiful/holy
good/beautiful/holy and
and what
what
are
are legitimate
legitimate goals
goals for
for life.
life.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What is Culture?
(cont.)
Cultural
Cultural beliefs:
beliefs: represent
represent our
our understandings
understandings about
about
what
what isis true.
true.
Cultural
Cultural symbols,
symbols, stories,
stories, and
and rituals:
rituals: communicate
communicate the
the
norms,
norms, values,
values, and
and beliefs
beliefs ofof aa society
society or
or aa group
group toto its
its
members.
members.
Culture
Culture isis pervasive
pervasive inin society:
society: affects
affects all
all aspects
aspects ofof
life.
life.
Culture
Culture isis shared:
shared: similarity
similarity inin values,
values, beliefs,
beliefs, norms.
norms.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Culture: Front Stage & Back

Stage
Front
Front stage
stage ofof culture:
culture: easily
easily observable
observable aspect
aspect of
of
culture
culture
E.g.,
E.g., Japanese
Japanese executive
executive bows
bows or
or North
NorthAmerican
American
robust
robust handshake.
handshake.
Back
Back stage
stage ofof culture:
culture: only
only insiders
insiders or
or members
members ofof the
the
culture
culture understand
understand other
other aspects
aspects ofof culture
culture
E.g.,
E.g., Japanese
Japanese saying
saying its
its difficult
difficult and
and twisting
twisting
head
head toto one
one side
side really
really means
means its
its impossible.
impossible.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Three Levels of Culture

1.1. National
National culture:
culture: the
the dominant
dominant culture
culture within
within the
the
political
political boundaries
boundaries ofof the
the nation-state.
nation-state.
2.2. Business
Business culture:
culture: norms,
norms, values,
values, and
and beliefs
beliefs that
that
pertain
pertain toto all
all aspects
aspects ofof doing
doing business
business inin aa culture.
culture.
Tells
Tells people
people the
the correct,
correct, acceptable
acceptable ways
ways toto
conduct
conduct business
business inin aa society.
society.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Three Levels of Culture

(cont.)
3.3. Occupational
Occupational and
and organizational
organizational culture
culture
Occupational
Occupational culture:
culture: the
the norms,
norms, values,
values, beliefs,
beliefs,
and
and expected
expected ways
ways ofof behaving
behaving for
for people
people inin the
the
same
same occupational
occupational group.
group.
Organizational
Organizational culture:
culture: the
the set
set ofof important
important
understandings
understandings that
that members
members ofof an
an organization
organization
share.
share.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.1: Three Levels of

Culture

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Cultural Differences and

Basic Values
Three
Three diagnostic
diagnostic models
models toto aid
aid the
the multinational
multinational
manager:
manager:
Hofstede
Hofstede model
model ofof national
national culture
culture
Global
Global Leadership
Leadership and
and Organizational
Organizational Behavior
Behavior
Effectiveness
Effectiveness (GLOBE)
(GLOBE) project
project
7d
7d culture
culture model
model

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Hofstedes Model
of National Culture
Five
Five dimensions
dimensions ofof basic
basic cultural
cultural values
values
Power
Power distance
distance
Uncertainty
Uncertainty avoidance
avoidance
Individualism
Individualism
Masculinity
Masculinity
Long-term
Long-term orientation
orientation

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Hofstedes Model Applied to

Organizations and
Management
Management
Management practices
practices considered
considered inin the
the discussion
discussion ofof
Hofstedes
Hofstedes model
model include:
include:
1.1. Human
Human resources
resources management
management
Management
Management selection
selection
Training
Training
Evaluation
Evaluation and
and promotion
promotion
Remuneration
Remuneration
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Hofstedes Model Applied to

Organizations
2.2. Leadership
Leadership styles
styles
3.3. Motivational
Motivational assumptions
assumptions
4.4. Decision
Decision making
making and
and organizational
organizational design
design
5.5. Strategy
Strategy

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Power Distance
Power
Power distance
distance concerns
concerns how
how cultures
cultures deal
deal with
with
inequality
inequality and
and focuses
focuses on
on
Norms
Norms that
that tell
tell superiors
superiors (e.g.,
(e.g., bosses)
bosses) how
how much
much
they
they can
can determine
determine the
the behavior
behavior ofof their
their
subordinates
subordinates
Values
Values and
and beliefs
beliefs that
that superiors
superiors and
and subordinates
subordinates
are
are fundamentally
fundamentally different
different kinds
kinds ofof people
people

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Power Distance (cont.)

High
High power
power distance
distance countries
countries have
have norms,
norms, values,
values,
and
and beliefs
beliefs such
such as:
as:
Inequality
Inequality isis fundamentally
fundamentally good.
good.
Everyone
Everyone has
has aa place:
place: some
some are
are high,
high, some
some are
are
low.
low.
Most
Most people
people should
should be
be dependent
dependent on
on aa leader.
leader.
The
The powerful
powerful are
are entitled
entitled toto privileges.
privileges.
The
The powerful
powerful should
should not
not hide
hide their
their power.
power.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.2: Managerial

Implications for Power
Distance

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Uncertainty Avoidance
Norms,
Norms, values,
values, and
and beliefs
beliefs regarding
regarding tolerance
tolerance for
for
ambiguity:
ambiguity:
Conflict
Conflict should
should be
be avoided.
avoided.
Deviant
Deviant people
people and
and ideas
ideas should
should not
not be
be tolerated.
tolerated.
Laws
Laws are
are very
very important
important and
and should
should be
be followed.
followed.
Experts
Experts and
and authorities
authorities are
are usually
usually correct.
correct.
Consensus
Consensus isis important.
important.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.3: Managerial

Implications of Uncertainty
Avoidance

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Individualism/Collectivism
Focus
Focus isis on
on the
the relationship
relationship between
between the
the individual
individual and
and
the
the group.
group.
Countries
Countries high
high on
on individualism
individualism have
have norms,
norms, values,
values,
and
and beliefs
beliefs such
such as:
as:
People
People are
are responsible
responsible for
for themselves.
themselves.
Individual
Individual achievement
achievement isis ideal.
ideal.
People
People need
need not
not be
be emotionally
emotionally dependent
dependent on
on
organizations
organizations or
or groups.
groups.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Individualism/Collectivism
Collectivist
Collectivist countries
countries have
have norms,
norms, values,
values, and
and beliefs
beliefs
such
such as:
as:
Ones
Ones identity
identity isis based
based on
on group
group membership.
membership.
Group
Group decision
decision making
making isis best.
best.
Groups
Groups protect
protect individuals
individuals inin exchange
exchange for
for their
their
loyalty
loyalty toto the
the group.
group.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.4: Managerial

Implications of
Individualism/Collectivism

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Masculinity
Tendency
Tendencyofofaaculture
culturetotosupport
supporttraditional
traditionalmasculine
masculine
orientation.
orientation.
High
Highmasculinity
masculinitycountries
countrieshave
havebeliefs
beliefssuch
suchas:
as:
Gender
Genderroles
rolesshould
shouldbe
beclearly
clearlydistinguished.
distinguished.
Men
Menare
areassertive
assertiveand
anddominant.
dominant.
Machismo/exaggerated
Machismo/exaggeratedmaleness
malenessininmen
menisisgood.
good.
Men
Menshould
shouldbe
bedecisive.
decisive.
Work
Worktakes
takespriority
priorityover
overother
otherduties.
duties.
Advancement,
Advancement,success,
success,and
andmoney
moneyare
areimportant.
important.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.5: Managerial

Implications of Masculinity

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Long-Term (Confucian)
Orientation
Orientation
Orientation towards
towards time
time that
that values
values patience.
patience.
Managers
Managers are
are selected
selected based
based on
on the
the fitfit ofof their
their
personal
personal and
and educational
educational characteristics.
characteristics.
AAprospective
prospective employees
employees particular
particular skills
skills have
have less
less
importance
importance inin the
the hiring
hiring decision.
decision.
Training
Training and
and socialization
socialization for
for aa long-term
long-term
commitment
commitment toto the
the organization
organization compensate
compensate for
for any
any
initial
initial weaknesses
weaknesses inin work-related
work-related skills.
skills.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Long-Term (Confucian)
Orientation

Eastern
Eastern cultures
cultures rank
rank highest
highest on
on long-term
long-term orientation.
orientation.
Value
Value synthesis
synthesis inin organizational
organizational decisions.
decisions.
Belief
Belief inin substantial
substantial savings.
savings.
Willingness
Willingness toto invest.
invest.
Acceptance
Acceptance ofof slow
slow results.
results.
Persistence
Persistence toto achieve
achieve goals.
goals.
Sensitivity
Sensitivity toto social
social relationships.
relationships.
Pragmatic
Pragmatic adaptation.
adaptation.
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Short-term Orientation
Western
Western cultures,
cultures, which
which tend
tend toto have
have short-term
short-term
orientations,
orientations, value
value logical
logical analysis
analysis inin their
their approach
approach toto
organizational
organizational decisions.
decisions.
Designed
Designed and
and managed
managed purposefully
purposefully toto respond
respond toto
immediate
immediate pressures
pressures from
from the
the environment.
environment.
Often
Often use
use quick
quick layoffs
layoffs ofof excess
excess employees
employees toto
adjust
adjust toto shrinking
shrinking demand
demand for
for products.
products.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Long-Term Orientation vs.

Short-Term Orientation
The
The difference
difference isis apparent
apparent inin the
the goals
goals companies
companies set
set
inin strategic
strategic decision
decision making.
making.
Managers
Managers inin countries
countries (short-term)
(short-term) want
want immediate
immediate
financial
financial returns,
returns, and
and fast,
fast, measurable
measurable success
success (e.g.,
(e.g.,
U.S.).
U.S.).
Managers
Managers inin countries
countries (long-term)
(long-term) prioritize
prioritize growth
growth and
and
long-term
long-term paybacks.
paybacks.
Long
Long time
time horizons
horizons allow
allow managers
managers toto experiment,
experiment, seek
seek
success
success by
by developing
developing game
game plans
plans as
as they
they go
go along.
along.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.6: Managerial

Implications of Long-term
(Confucian) Orientation

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

GLOBE National Culture

Framework
GLOBE
GLOBE (Global
(Global Leadership
Leadership and
and Organizational
Organizational
Behavior
Behavior Studies)
Studies) involves
involves 170
170 researchers
researchers who
who
collected
collected data
data from
from 17,000
17,000 managers
managers inin 62
62 countries
countries
Seven
Seven dimensions
dimensions ofof GLOBE
GLOBE are
are similar
similar toto Hofstede
Hofstede
Unique
Unique dimensions
dimensions
Performance
Performance orientation
orientation
Humane
Humane orientation
orientation
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Performance Orientation
Performance
Performance Orientation
Orientation refers
refers toto the
the degree
degree toto
which
which the
the society
society encourages
encourages societal
societal members
members toto
innovate,
innovate, toto improve
improve their
their performance,
performance, and
and toto strive
strive
for
for excellence
excellence
E.g.,
E.g., the
the United
United States
States and
and Singapore
Singapore have
have high
high
scores
scores while
while Russia
Russia and
and Greece
Greece have
have low
low scores
scores on
on
the
the dimension.
dimension.

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.8: Management

Implication of Performance
Orientation

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Humane Orientation
Humane
HumaneOrientation
Orientationan
anindication
indicationofofthe
theextent
extenttotowhich
which
individuals
individualsare
areexpected
expectedtotobe
befair,
fair,altruistic,
altruistic,caring,
caring,and
and
generous
generous
Need
Needfor
forbelongingness
belongingnessand
andaffiliation
affiliationisisemphasized
emphasizedmore
more
than
thanmaterial
materialpossessions,
possessions,self-fulfillment,
self-fulfillment,and
andpleasure.
pleasure.
Less
Lesshumane-oriented
humane-orientedsocieties
societiesare
aremore
morelikely
likelytotovalue
value
self-interest
self-interestand
andself-gratification.
self-gratification.
E.g.,
E.g.,Malaysia
Malaysiaand
andEgypt
Egyptscore
scorehighly
highlywhile
whileFrance
Franceand
and
Germany
Germanyhave
havelow
lowscores.
scores.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.9: Management

Implications of Humane
Orientation

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7d Cultural Dimensions Model

Builds
Builds on
on traditional
traditional anthropological
anthropological approaches
approaches toto
understanding
understanding culture.
culture.
Culture
Culture exists
exists because
because people
people need
need toto solve
solve basic
basic
problems
problems ofof survival.
survival.
Challenges
Challenges include:
include:
How
How people
people relate
relate toto others.
others.
How
How people
people relate
relate toto time.
time.
How
How people
people relate
relate toto their
their environment.
environment.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7d Cultural Dimensions Model

Dimensions
Dimensions that
that deal
deal with
with relationships
relationships include:
include:
Universalism
Universalism vs.
vs. Particularism
Particularism
Collectivism
Collectivism vs.
vs. Individualism
Individualism
Neutral
Neutral vs.
vs.Affective
Affective
Diffuse
Diffuse vs.
vs. Specific
Specific
Achievement
Achievement vs.
vs.Ascription
Ascription

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7d Cultural Dimension Model

(cont.)
Dimensions
Dimensions dealing
dealing with
with how
how aa culture
culture manages
manages time
time
and
and how
how itit deals
deals with
with nature:
nature:
Past,
Past, Present,
Present, Future,
Future, or
or Mixture
Mixture
Control
Control ofof vs.
vs.Accommodation
Accommodation with
with Nature
Nature

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.11: Summary of 7d

Model and Issues

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Universalism vs. Particularism

Pertain
Pertain toto how
how people
people treat
treat each
each other
other based
based on
on rules
rules or
or
personal
personal relationships.
relationships.
Universalistic
Universalistic - Right
Right way
way isis based
based on
on abstract
abstract principles
principles such
such as
as
rules,
rules, law,
law, religion.
religion.
Particularistic
Particularistic - Each
Each judgment
judgment represents
represents aa unique
unique situation,
situation, with
with
exceptions
exceptions for
for rules
rulesbased
based on
on relationships
relationships or
or
circumstances.
circumstances.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.12: Managerial

Implications of
Universalism/Particularism

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Individualism vs. Collectivism

Similar
Similardistinctions
distinctionstotoHofstedes
Hofstedesview
view
Collectivist
Collectivistsocieties
societies- People
Peopledefined
definedby
bygroup
groupmemberships
membershipssuch
suchas
asfamily
family
Responsibility,
Responsibility,achievement,
achievement,and
andrewards
rewardsare
aregroup-based
group-based
Individualist
Individualistsocieties
societies- People
Peopletrained
trainedtotobe
beindependent
independent
Assume
Assumeindividual
individualresponsibility
responsibilityfor
forsuccess
successor
orfailure
failure

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.13: Managerial

Implications of
Individualism/Collectivism

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Neutral vs. Affective

Concerns
Concerns acceptability
acceptability ofof expressing
expressing emotions
emotions
Neutral
Neutral - Interactions
Interactions are
are objective
objective and
and detached
detached
Focus
Focus isis on
on tasks
tasks rather
rather than
than emotional
emotional nature
nature ofof
interaction
interaction
Affective
Affective - Emotions
Emotions are
are appropriate
appropriate inin all
all situations
situations
Prefer
Prefer toto find
find immediate
immediate outlet
outlet for
for emotions
emotions
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.14: Managerial

Implications of Neutral vs.
Affective

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Specific vs. Diffuse

Extent
Extent toto which
which an
an individuals
individuals life
life isis involved
involved inin work
work
relationships
relationships
Specific
Specific - Business
Business segregated
segregated from
from other
other parts
parts ofof life
life
Contracts
Contracts often
often prescribe
prescribe and
and delineate
delineate relationships
relationships
Diffuse
Diffuse - Business
Business relationships
relationships encompassing/inclusive
encompassing/inclusive
Private
Private and
and segregated
segregated space
space isis small
small
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.15: Managerial

Implications of Specific vs.
Diffuse

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Achievement vs. Ascription

Manner
Manner inin which
which society
society gives
gives status
status
Achievement
Achievement - People
People earn
earn status
status based
based on
on performance
performance and
and
accomplishments
accomplishments
Ascription
Ascription - Characteristics
Characteristics or
or associations
associations define
define status
status
E.g.,
E.g., status
status based
based on
on schools
schools or
or universities
universities
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.16: Managerial

Implications of Achievement
vs. Ascription

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Time Orientation
Time
Time Horizon:
Horizon: How
How cultures
cultures deal
deal with
with the
the past,
past, present
present
and
and future
future
Future-oriented
Future-oriented societies,
societies, such
such as
as the
the U.S.,
U.S., consider
consider
organizational
organizational change
change as
as necessary
necessary and
and beneficial.
beneficial.
Believe
Believe aa static
static organization
organization isis aa dying
dying organization.
organization.
Past-oriented
Past-oriented societies
societies assume
assume that
that life
life isis
predetermined
predetermined based
based on
on traditions
traditions or
or will
will ofofGod.
God.
Revere
Revere stability
stability and
and are
are suspicious
suspicious ofof change.
change.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.17: Managerial

Implications of Time Horizon

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Internal vs. External Control

Concerned
Concerned with
with beliefs
beliefs regarding
regarding control
control ofof ones
ones fate
fate
Best
Best reflected
reflected with
with how
how people
people interact
interact with
with the
the
environment
environment
Does
Does nature
nature dominate
dominate us
us or
or do
do we
we dominate
dominate
nature?
nature?
InIn societies
societies where
where people
people dominate
dominate nature,
nature, managers
managers
are
are more
more proactive
proactive and
and believe
believe situations
situations can
can be
be
changed.
changed.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 2.18: Managerial

Implications of Internal vs.
External

2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Caveats and Cautions

Stereotyping:
Stereotyping: assumes
assumes that
that all
all people
people within
within one
one culture
culture
behave,
behave, believe,
believe, feel,
feel, and
and act
act the
the same.
same.
Ethnocentrism:
Ethnocentrism: occurs
occurs when
when people
people from
from one
one culture
culture
believe
believe that
that theirs
theirs are
are the
the only
only correct
correct norms,
norms, values,
values,
and
and beliefs.
beliefs.
Cultural
Cultural Intelligence:
Intelligence: ability
ability toto interact
interact effectively
effectively inin
multiple
multiple cultures
cultures
Cultural
Cultural relativism:
relativism: all
all cultures,
cultures, no
no matter
matter how
how different,
different,
are
are correct
correct and
and moral
moral for
for the
the people
people ofof those
those cultures.
cultures.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Conclusion
Chapter
Chapter provides
provides understanding
understanding ofof various
various ways
ways toto
understand
understand national
national cultures
cultures
Sensitize
Sensitize toto complex
complex and
and subtle
subtle influences
influences ofof culture
culture
on
on multinational
multinational management
management
Variety
Variety ofof cultural
cultural levels
levels affect
affect multinational
multinational managers
managers
Astute
Astute managers
managers realize
realize that
that understanding
understanding cultures
cultures isis
aa never-ending
never-ending learning
learning process.
process.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.