Cultural Management

 Problems all over the world are created by human habits.

 The effects of, corruption, prejudices, political biases, are like corrosive material, it is
taking the essence away of what we really must focus on. However, these reflect how the
people are thinking, the way human beings are. The reality of man is his though.
 History: it is useful to learn and not commit the same mistakes.
 Holidays: it is a challenge for managers. How you build the cohesiveness in the
organization so everyone feels included. Keeping in mind important dates for each religion
for the company; for meetings, activities. Make sure the working environment is free from
animosity of religion, is not easy and is not always the right way to go.
 Why are you what you are?
 When humans interfere In religion, they are ruined. Clarity is lost.
 Where is the culture from? A lot of it comes from religion. Also, from location,
temperature.
 Homework: write about what makes me the way that I am. Not a description, a dissection
of myself. As long as I want, but not short.
 Homework: observe yourself and observe other people. What is the first thing that comes
into your mind. Write them down.
 Homework: lecture 1 and 2. Questions, do them, read the slides.

12-04-2023

 Lies: there is a pressure to lie, for many reasons, one of them being to nut hurt other
people’s feelings.
 What is wrong with the world: communication, we don’t communicate enough with the
people. Egotistic, narcissistic behavior.
 Business is a mechanism for societies to grow, become richer. But people have ruined it,
with lies, lack of communication skills, but the icing of the cake is dishonesty, the
corruption.
 Homework: how many wars at happening now. How many births and deaths. World
meter. Does it make you aware of what you are doing?
 The white lie is not really a good thing.
 What is that you want to be known for during your working life.
 Communication and ego.
 Centralized vs decentralized decision making:
o Germany is a decentralized country. Berlin is making the trend.
o The UK is 50/50. Small business is decentralized, but bigger ones are centralized.
 Individual vs group rewards
o Japan -> group rewards.
 Informal procedures and formal procedures
o We cannot say that informal procedure countries are more prone to corruption.
 Saudi arabia: high organizational loyalty.
 Germany: family organizational cultures.
 Trompener and Hofstede: which countries are applicable for each dimension.
1. Universalism vs. Particularism

This dimension can be summarized by asking what matters more, rules or relationships?

Cultures based on universalism try to treat all cases the same, even if they involve friends or loved
ones. The focus is more on the rules than the relationship. Universalist cultures include Canada,
the U.S., the U.K., and Australia.

Cultures based on particularism will find relationships more important than rules. You can bend
the rules for family members, close friends, or important people. Each case has to be examined in
light of its special merits. Particularism cultures include Latin America, Korea, China, and Russia.

2. Individualism vs. Communitarianism

This dimension can be summarized by asking do we work as a team or as individuals? Do people

desire recognition for their individual achievements, or do they want to be part of a group?

Individualistic cultures believe that your outcomes in life are the result of your choices. In these
cultures, decision-makers make decisions, and they don’t need to consult to do so. Thus, decision-
makers can make decisions at speed. It is your responsibility to look after your happiness and
fulfillment. Individualistic cultures include Canada, the U.S., the U.K., and Australia.

Cultures based on communitarianism believe your quality of life is better when we help each
other. Thus, these cultures organize themselves around groups. There is a strong sense of loyalty
within the group. As a result of this group tendency, decision-making is slower as everyone gives
input. Job turnover will be lower due to high group loyalty. The group gets rewarded for high
performance, not the individual. Communitarian cultures include Japan, much of Africa, China, and
Latin American countries.

3. Neutral vs. Affective

This dimension can be summarized by asking do we show our emotions?

In a neutral culture, people tend not to share their emotions. Emotions are of course felt by the
individual, but they are kept in check and controlled. Observing these people, you would consider
them cool and rational. Neutral cultures include Germany, Netherlands, and the U.K.

In an affective culture, people tend to share their emotions, even in the workplace. In an affective
culture, it is considered normal that people share their emotions. Examples of affective cultures
include Italy, Spain, and Latin America.

4. Specific vs. Diffuse

This dimension of Trompenaars Cultural Dimensions Model can be summarized by asking how
separate is our personal and professional life?

In a specific culture, people tend to keep their personal and work life separate. These cultures
don’t see an overlap between the two spheres. These cultures tend to be schedule focused and
direct and to the point in their communications. They focus more on the goal than the
relationship. Examples of specific cultures include Germany, the U.S., the U.K., and the
Netherlands.

In a diffusive culture, people tend to see their personal and work lives as interconnected. These
cultures believe that objectives can be better achieved when relationships are strong. As such, in
these cultures work colleagues socialize with each other outside of work more. These cultures are
courteous and respect age, status, and background more. Examples of diffusive cultures include
China, India, Argentina, and Spain.

5. Achievement vs. Ascription

This dimension of Trompenaars Cultural Dimensions Model can be summarized by asking do we

prove ourselves to get status or is it given to us?

In an achievement culture, you earn status through knowledge or skill. Job titles are earned and
reflect this knowledge and skill. Anyone can challenge a decision if they have a logical argument.
Examples of achievement cultures include the U.S., the U.K., Germany, and Scandinavia.

In an ascription culture, you are given status based on who you are. This could be because of your
social status, your education, or your age. You earn respect in these cultures because of your
commitment to the organization, not your abilities. A decision will only be challenged by someone
with higher authority. Examples of ascription cultures include Japan, Italy, and France.

6. Sequential time vs. Synchronous time.

This dimension can be summarized by asking, do things get done one at a time or do many things
get done at once?

In a sequential time, culture, time is very important. People like projects to be completed in
stages. Time is money, and so it is important that each stage is finished on time. It is rude to be
late for meetings in these cultures. Examples of sequential time cultures include the U.S., the U.K.,
and Germany.
In a synchronous time, culture, people see the past, present, and future as interwoven. Because of
this people do several things at once, as time is interchangeable. This results in plans and
deadlines being flexible. It also explains why punctuality is less important. Examples of
synchronous time cultures include Japan, India, and Mexico.

7. Internal direction vs. External direction

This dimension of Trompenaars Cultural Dimensions Model can be summarized by asking do we

control our environment or are we controlled by it?

In an internal direction culture, people believe that they can control their environment to achieve
their goals. The focus is selfish (oneself, one’s team, and one’s organization). Winning is important
in these cultures and aggressive personalities are thus prevalent. Examples of internal direction
cultures include the U.S., the U.K., and Australia.

In an external direction culture, people believe that they must work with their environment to
achieve their goals. In these cultures, winning isn’t as important as maintaining a strong
relationship. They focus on environmental factors e.g., relationships to achieve their goals.
Examples of external direction cultures include China, Russia, and Saudi Arabia.

19-04-2023

Hofstede

 Power distance: The people have the authority to take their decisions.
 Uncertainty avoidance:
o High: Need a lot of security, know a lot of information. Saudi Arabia, Japan.
o Low: People have no big fear of taking risks. Tend to be countries that have laws
that are no needed to be 100% complied. UK, Scandinavian countries.
 Individualism and Collectivism:
o Individualism: look at yourself, at your own family or at your own company.
Germany, North of Italy, and France.
o Collectivism: you want to be more part to the group. Balkan countries, south of
Italy and France.
 Masculinity and Femininity:
o Masculinity: typical dominating features; money, wealth, success. Competitive
environment. USA, Italy.
o Femininity: caring values, cooperation, friendly atmosphere, group decision
making. South of Spain, Scandinavian countries.

Trompenaars

 Universalism vs Particularism:
o Universalism: they are kind of arrogant in regards of knowledge of cultures.
Pedantic. Germany, USA (Walmart), Canada, UK.
o Particularism: there are different ways of understanding on how to do things, so
they try to understand cultures from different countries for how to do business.
China, SK, Malaysia, Indonesia, South Africa, Kenya, Nigeria, Cameroon.
  Individualism vs communitarianism:
o communitarianism: You want to have joint responsibility; you will never want
individual responsibility. In Japan, when you individualize someone, they hate it
because they feel the group deserves the recognition. Malaysia and Korea.
 Neutral vs emotional: Germany is neutral with outsiders, and inside groups extremely
emotional.
o Neutral: you do not exhibit openly your emotions. UK,
o Emotional: People smile when they are out, they show how they feel. Spain,
Mexico.
 Specific vs Diffuse:
o Specific: large public space, and small private space. Strong separation with work
and private life. UK, USA, Switzerland, Germany.
o Diffuse: Public and private space are mixed. Venezuela, China, Spain.
 Achievement vs Ascription: Germany depends, leadership is ascription, if you’re known
then you’re in. If you have no reputation, then it is achievement culture.
o Achievement: status directly related with what you achieve.
o Ascription: status depends on or who or what the person is.
 Time:
o Sequential approach: you do one activity at a time. Everything is set and stuck.
Germany.
o Synchronous approach: multitasking. UK, Ireland.
o Present orientated: Venezuela, Indonesia.
o Future orientated: Germany, Japan, India (Countries that in general are
innovating).
o All 3 time periods: France, Luxemburg, Switzerland, Belgium.
 Environment:
o Inner-directed: people feel that they can control the outcome of something by
doing something they think will do it.
o Outer-directed: people letting things take their own course.

03-05-2023

Meeting the challenge (Factors that affect MNC):

 They don’t adapt to the national market.

 Don’t analyze the country to be penetrated.
 Fast expansion – uncontrolled expansion
 Decentralization of power

Homework: investigate different types of advertising in different countries, marketing approach.

Which companies have which types of dimensions?

The nature of organizational culture (think about different countries that are involved in).

4 steps in integration, which companies do it and which don’t.

Company examples for incubators, Eiffel tower, etc.

Parochialism: I see things the way I want to see them, and it is the right way

Simplification: It is standardized

07-06-2023

 Family Structure: Innovation and development pass them by changes in legal aspects
make them need specialists to move forward. The changes within their fields are difficult
to adapt. The change process is coming from the inflection from the new knowledge.
 Eiffel Tower: management by job description, clear. If it is not on your list, you don’t do it.
The hierarchy is stiff. Control is the mechanism of these companies. Avoiding mistakes by
having clear roles, discipline, and obedience.
 Guided Missile: target and fire. Task driven companies. They have a clear agenda on what
they need to develop. The key is everybody’s got a task, a mission they need to fulfil.
Innovation is key. EJ: Toyota.
 Incubator: capturing the new minds. Blank piece of paper to do something. Tesla at the
beginning, police, and military even. Large companies create incubators to create new
products and release them in certain markets. Guided missile has very clear objectives,
incubators seek for inspiration.

 The purpose of the matrix is to know how to handle companies and its employees.
 The Suez Canal initiated a process of de-globalization.

 Long wolves: they do 50% of the work. With a little bit of training, they could become
stars.
 You want the stars to keep being the stars.
 The good guys
 Lemons: what you see is what you get. The lemons are the ones that you need to keep
because they have potential.
 You must throw the good guys because most likely they already have the motivation but
don’t have the potential to show results.
 When you try to make people redundant, good guys are very clever to know they have
social points, so you cannot touch them. In the real world they are the first ones to roll
out. They camouflage themselves to be like the stars, but there is no results.