Cross-cultural management summary
Chapter 1: what is the role of a global manager?
“Dramatic shifts in economics, politics and technology shape the role of the international
manager. These shifts are often encapsulated in the term ‘globalization’.”
1.1 Globalization
Globalization = process whereby worldwide interconnections in virtually every sphere of
activity are growing. Some of these interactions lead to integration/unity worldwide; others do
not. Increase in interconnections is result of shifts that have taken place (globalization).
Four categories of change that illustrate process of globalization:
1. Growing economic interconnectedness
2. More complex and dynamic work environment
3. Increased use and sophistication of information technology
4. More and different players on the global stage
1.2 Global management environment
Elements of global manager’s environment:
1. Economic
2. Legal
3. Political
4. Culture (important because: 1-3 are derived from culture, largely invisible and
therefore often overlooked, practice of management focuses on interpersonal
interactions)
1.3 What global managers do
Management = managers have formal authority over their organizational unit and this status
divides their activities into interpersonal, informational, and decisional role categories.
Mintzberg’s framework identifies 10 role categories of managers.
“Global managers face interactions with people who are culturally different.”
1.4 Cross-cultural studies – an evaluation
For practicing managers and for management scholars to continue to improve and elaborate
their understanding of management in dynamic environment, it is of great importance that the
study of management across cultures continues to improve.
Limitations in present management studies
- Only about 5% focuses on international/cross-cultural studies
- Historical factors have perpetuated parochialism (= lack of awareness of alternative
contexts, models, research, values)
- Culture influences the way scholars perceive and think about world they are
investigation. Three aspects of US perspective that limit ability of US theories to
explain organizational phenomena in contrasting cultures:
1. Extreme individualism
2. Belief that individuals are in control of own circumstances and can influence
environment and future events
3. Low context communication
- Theories indigenous to other cultures are rare
Types of international management research: table 1.3 page 14
Cross-cultural research and its issues
Studies that involve two or more cultures share several common methodological issues that
are not present in domestic research.
, - Equivalence = culturally different participants understand equally the concept and
relationship to other concepts. Opportunity for bias caused by cultural differences
(this is not present when equivalence). Equivalence must be established at three key
points: conceptualization of theoretical constructs, study design, data analysis.
o Conceptual/construct equivalence = extent to which concepts examined have
same meaning in different countries
o Method equivalence = whether measurement unit is same in all groups
o Metric equivalence = extent to which questions have same measurement
properties across different groups.
- Sampling = to conduct research with small number of participants who accurately
represent population about which we want to make conclusions. Selecting truly
representative sample is difficult in cross-cultural.
o Universality of phenomenon requires random sample of countries
o Any sample selected from a specific geographic region does not necessarily
represent country because of subcultures
o Inconsistencies in availability of sample frames across cultures can affect
sample
o Practical considerations override some of conditions of theoretical sampling
and convenience samples are used
- Data collection = questionnaires and interviews. Difficulties:
o People from different countries differ in familiarity to particular research
methods + how ready to participate
o Some differences are subtle
o Researcher’s purpose is suspect by participants
o Respondents may not have frame of reference to respond questions.
o Interview: characteristics/technique might influence answers, and interviewer
can selectively perceive/anticipate answers
Overview of critiques of international and cross-cultural research:
- Lack of theoretical base - Reliance on single method
- Parochialism - Bias towards studying large companies
- Heavy reliance on convenience samples - Reliance on single organizational level
- Lack of relevance - Limited to small number of locations
Chapter 2: describing culture – the basics
Culture = patterned ways of thinking, feeling and reacting, acquired and transmitted mainly
by symbols, constituting distinctive achievement of human groups, including their
embodiment in artefacts; essential core of culture consists of traditional ideas and attached
values.
2.1 Features of culture
1. Culture is shared (figure 2.1 page 22)
2. Culture is learned
3. Culture is systematic and organized. Schein’s three levels of culture (figure 2.2 page
25): artefacts (visible, conscious), espoused values and basic underlying
assumptions (invisible, unconscious)
2.2 Reasons why cultures differ
Environmental elements that cause cultural differences
- Survival (cultural characteristics developed to aid survival)
- Language (artefact that helps perpetuate values, attitudes, beliefs)
- Religion (table 2.1 page 29)
- Other factors: climate, topography & indigenous economy, proximity & topography,
economic system & technology, political boundaries.
, 2.3 Debates around culture
Due to ambiguity several issues raised concerning culture. Are the concept of:
National culture. Multiple cultures can exist within national borders, and the same
culture can span many nations. Nations are social systems and therefore can have cultures.
We derive our self-identity in part from our nationality. When analysing national culture, two
difficulties: risk ignoring subcultures and variation/conflict/dissent.
Convergence, divergence, or equilibrium. The extent to which cultures around the
world are becoming similar or more different. Argument for convergence is based on fact that
nations are not static but develop over time. Results from common economic orientation and
eventually leads to common society.
Inglehart identified two value orientations related to countries wealth: materialist &
postmaterialist. As wealth increases, cultural differences diminish.
Sociologists suggest that to participate effectively in modern society, people must possess a
core set of psychological characteristics. Profile of modern person is shown in box 2.2
Smith and Bond point out: as arguments for cultural convergence are popularized, many
developing countries take action to distinguish from the West and assert uniqueness.
Different opinions about convergence/divergence:
Child: matter of level of analysis. Studies of macro-level issues (organizational structure and
technology) often indicate convergence, whereas micro-level issues (behaviour of individuals
within organizations) often indicate divergence
Yang: convergence only in cultural characteristics that relate to functioning more easily in
technological environment
Ralston: crossvergence = incorporation by individuals of influences from national culture and
economic ideology
Cohen: although different environments produce different cultures, can produce similar
systems, and similar environments can produce different cultures.
Organizational vs national culture. Organizational culture = (1) stable attitudes,
beliefs,
and values held, (2) shared normative beliefs and behavioural expectations, (3) set of goal-
directed values, beliefs, and behaviours, (4) internal attribute of organization that is socially
constructed, historically determined, holistic, and difficult to change.
Hofstede: states that national/organizational cultures are composed of different elements.
Moreover, organizational culture is weak compared to national culture. Furthermore,
individuals are only partly involved with organizations, although they are totally immersed in
national culture. For comparison: table 2.2 page 36. Lastly, influence of organizational norms
must be considered in concert with societal culture in understanding the causes of behaviour
in organizations.
Acculturation and biculturalism. Acculturation = way through which cultures change =
psychological and behavioural changes because of contact with people from other cultures. It
is also used to describe changes in people who relocate from one culture to another.
Individual or collective. Takes time, changes might be slow. Acculturation patterns can be
influenced by number of individual differences and situational factors (entry status, language,
personality). Biculturalism = ability to easily adjust behaviour to cultural context.
2.4 Culture and groups
Cultures are defined by members and non-members. This in-group/out-group distinction is
useful in describing attitudes and behaviour both within and across cultural boundaries.
Cultures and social groups have two issues to consider:
1. Characteristics of groups can change as members come and go
2. Our membership in cultural group helps to determine how we perceive ourselves, as
much as how others perceive us.
When individuals are categorized as a group, individuals are thought to be more similar in
beliefs and behaviour, their behaviour is thought to convey less info about them as
