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WelcometoClass15WelcometoClass15
Research:Research:
QualitativeDomainQualitativeDomain
Part2Part2
Chapter7Chapter7:.
"Culture"isaPrimaryDriverof"Culture"isaPrimaryDriverof
QualitativePerformanceQualitativePerformance
NationalCulture+CorporateCulture=
Impactonfirmperformance
"Culture"ischaracterizedasthementalprogramming
ofpeople.
Whereverseveralpeoplearegatheredtogetherforan
extendedperiodoftime–auniqueculturewill
emerge.
TMTsshould:TMTsshould:
1)Assesstheircorporateculture
2)Studythenationalculturesofcountriesinwhichtheycompete:.
–CorporateCulture:.
CorporateCultureisareflectionofafirmCorporateCultureisareflectionofafirm’’ss
personality,character,,character,andattitude.
CorporateCulture:
againsteachother.
customers,customerscreditors,creditorscompetitors,competitorsshareholders,andshareholdersotherother
stakeholderswillbeconsideredandbalanced.
NurturingandsupportingahealthyNurturingandsupportingahealthy
corporatecultureisachallengingtask!corporatecultureisachallengingtask:.
TMTsneedtoaskquestionssuchas:TMTsneedtoaskquestionssuchas:
Arewelackingineffortstopromotethevalueofdiversity
ofthoughts,ideas,andcultures?
Dowehavedualstandardsofbehavior,onefor
executivesandanotherforallotheremployees?
Dooursystemsinadvertentlyrewardindecisionand/or
incompetence?
Dowetoleratearroganceandcondescension?
Dowediscourageopennessandtruthfulness?
Dowereallyunderstandtheinteractionofcorporate
andnationalcultures?:.
CorporatecultureandNationalculture
ARESYMBIOTIC.
Theyinfluenceeachother.
CapablecorporateTMTsrecognizeCapablecorporateTMTsrecognize––
tofullyunderstandeitherrequirestofullyunderstandeitherrequires
:.
–NationalCulture:.
Nationalcultureis:Nationalcultureis:
,customs,andbeliefsystems
sharedbyagroupofpeople
NationalculturesNationalculturesoccasionallyclashwith
CorporateculturesCorporatecultures
Clashesusuallyoccurwhenemployeesofonenation
:.
NationalCulture
&Corporate
Culture:
PotentialClash!
TMTswhohaveculturalmyopia…
Lacktheabilitytorecognizepotentialconflictsbetween
corporatecultureandnationalculture.
CulturalCLASHEScancauseirreparableCulturalCLASHEScancauseirreparable
damagetoafirmdamagetoafirm’’:.
Nationalculturesalientothecorporationcanpresent
formidablechallenges.
Theyrequireflexibilityandcreativemanagementthinking.
Challengesincludeunderstandingthevaluesystemsof:
;and
:.
TMTsshouldunderstandthecharacteristicsand
subtletiesofnationalcultureofthe“new”countryinwhichthey
wishtocompete.
Atechniqueforcorrallingthecharacteristicsand
.
Heorganizednationalculturesinto“dimensions”
:.
HofstedeHofstede’’ss
CulturalDimensionsCulturalDimensions
Fivedimensions:Fivedimensions:
••PowerDistancePowerDistance
••IndividualismIndividualism
••UncertaintyAvoidanceUncertaintyAvoidance
••MasculinityMasculinity
••ShortandlongShortandlong--termorientationtermorientation
ThefollowingslidesaredirectlyfromHofstede’sdata:.
PowerDistanceIndex(PDI)PowerDistanceIndex(PDI)……
Thedegreeofequality,orinequality,betweenpeoplein
acountry’ssociety
Theimbalancesofpowerandwealththathavebeen
allowedtogrowwithinthesociety.(Richarepowerful)
Thesearemorelikelytofollowacastesystemthatdoesnotallow
significantupwardmobilityofitscitizens.
Asocietyde-emphasizesthedifferencesbetween
citizen’spowerandwealth.
:.
UncertaintyAvoidanceIndex(UAIUncertaintyAvoidanceIndex(UA))……
Theleveloftoleranceforuncertaintyandambiguity
withinthesociety–.
Indicatesthecountryhasalowtolerancefor
uncertaintyandambiguity.
Arule-orientedsocietythatinstituteslaws,rules,regulations,and
controlsinordertoreducetheamountofuncertainty.
Indicatesthecountryhaslessconcernabout
ambiguityanduncertaintyandhasmoretolerancefora
varietyofopinions.
Asocietythatislessrule-oriented,morereadilyacceptschange,and
:.
Individualism(IDV)Individualism(IDV)……
Thedegreesocietyreinforcesindividualorcollective
achievementandinterpersonalrelationships.
Indicatesthatindividualityinthesesocietiesmaytend
toformalargernumberoflooserrelationships.
Typifiessocietiesofamorecollectivistnaturewith
closetiesbetweenindividuals.
Reinforcedextendedfamiliesandcollectiveswhereeveryonetakes
responsibilityforgroupmembers:.
Masculinity(MAS)Masculinity(MAS)……
Thedegreethesocietyreinforces,ordoesnotreinforce,
thetraditionalmasculineworkrolemodelofmale
achievement,control,andpower.
Indicatesthecountryexperiencesahighdegreeof
genderdifferentiation.
Malesdominateasignificantportionofthesocietyandpowerstructure,
withfemalesbeingcontrolledbymaledomination.
Indicatesthecountryhasalowlevelofdifferentiation
anddiscriminationbetweengenders.
:.
LongLong--termOrientation(LTO)termOrientation(LTO)……
Thedegreetowhichasocietyrespectsculturaltraditions
andthevalueitplacesonlong-termcommitments.
--TermOrientationTermOrientation
Indicatesthecountryprescribestothevaluesoflong-
termcommitmentsandrespectfortradition.
Supportiveofastrongworkethicwherelong-termrewardsareexpectedas
society,particularlyforan“outsider.”
--TermOrientationTermOrientation
Indicatesthecountrydoesnotreinforcetheconceptof
long-termtraditionalorientation.
Changecanoccurmorerapidlyaslong-termtraditionsandcommitments
:.
SummarySummary……
Culture,bothcorporateandnational,playaCulture,bothcorporateandnational,playa
significantroleinafirmsignificantroleinafirm’’.
QualitativeperformanceshouldbetheeverydayQualitativeperformanceshouldbetheeveryday
.
TheglobalnatureofbusinessincreasestheriskofTheglobalnatureofbusinessincreasestheriskof
:.
End:Research:QualitativeDomain–Part2
VeryImportant:VeryImportant:
ReviewAppendixBofyourtext(pages170ReviewAppendixBofyourtext(pages170––172)172)
““HofstedeHofstede’’.””
YouareresponsibleforthisinformationYouareresponsibleforthisinformationandand
ITWILLBEONTHETEST!ITWILLBEONTHETEST!
Assignment:ReadChapter8Assignment:ReadChapter8
Research:Issues&ChallengesResearch:Issues&Challenges