Organizational Culture Shared values and norms Common beliefs

Organizational Culture • Shared values and norms • Common beliefs and feelings, regularities in behavior – “The way we do things around here” • Conveyed through rituals, stories, and social indoctrination

Creation of Organizational Culture • Beliefs and values of the organization’s founder • Societal norms of firm’s native/host country • Problems of external adaptation and survival • Problems of internal integration

Cultural Differences • Westerners have fairly precise measures of time and a stronger concern for punctuality than most other people – Monochronic style individuals focus on one thing at a time; characteristic of USA – Polychronic style individuals focus on several things at one time; characteristics of Latin American countries

Dimensions of Cultural Differences • Research has shown that countries differ significantly in – Interpersonal trust – Power-distance – Avoidance of uncertainty – Individualism v. Collectivism

Doing Business in Latin America • Few people rush into business • Men and women congregate into separate groups at social functions • Latin Americans stand more closely to each other than North Americans when in conversation • Men may embrace

Doing Business in Latin America (Cont. ) • Guests are expected to arrive late, with exception of American guests • Little concern about deadlines • Machismo - expectation that businessmen will display forcefulness, self-confidence, leadership with flourish • Fatalism

Doing Business in East Asia • Japan, Korea, China • Meetings devoted to pleasantries; serving tea, engaging in chitchat • Seniors and elders command respect • Consciously use slow down techniques as bargaining ploys • Business cards should be bilingual

Doing Business in Russia • Protocol-conscious • Do business only with highest ranking executives • Appear stiff and dull • More expressive in private than in public • Hard to draw up contracts due to language barriers • Have little advertising experience

Doing Business in the Middle East • • • Prefer to act through trusted third parties Personal honor given high premium Fatalism Emotionally expressive Intense eye contact Guests should avoid discussing politics, religion, host’s family and personal professions

Artifacts/Symbols - Visible objects, actions, stories that represent the culture - Most easily changed - Rites, rituals, ceremonies - Stories, myths, legends - Symbols - Language/jargon/gestures

Behavior Patterns - Shared ways of interacting, approaching a task - Shared ways of responding to something new

Norms - Socially constructed preferences - Group expectations about how things should be done

Values - Preferred states - Feelings & beliefs about what’s good or right

Shared Assumptions - Taken for granted - Not conscious - Hard to change

Assessing Your Cultural Identity This questionnaire is to help you think about the degree to which you identify with your culture group. Use the following scale to indicate the degree to which each statement is true of the way you typically think about yourself. “Always False” (1), “Mostly False” (2), “Sometimes True and Sometimes False” (3), “Mostly True” (4), or “Always True” (5). Cultural Identity 1. Being a member of my culture is important to me. 2. Membership in my culture is central to how I define myself. 3. If I were born again, I would want to be born as a member of my culture. 4. I often think about being a member of my culture 5. Being a member of my culture plays a large role in my life.

Assessing Your Ethnic Identity This questionnaire is to help you think about the degree to which you identify with your ethnic group. Use the following scale to indicate the degree to which each statement is true of the way you typically think about yourself. “Always False” (1), “Mostly False” (2), “Sometimes True and Sometimes False” (3), “Mostly True” (4), or “Always True” (5). 1. If I were born again, I would want to be born as a member of my ethnic group. 2. Being a member of my ethnic group is important to me. 3. I often think about being a member of my ethnic group. 4. Being a member of my ethnic group plays a large role in my life. 5. Thinking about myself as a member of my ethnic group is central to how I define myself. To find your scores, add the numbers you wrote next to each of the statements. Compute separate scores for cultural and ethnic identity. Scores range from 5 to 25. The higher the score, the more you identify with the group. Adapted from Hofman’s (1985) measures of “civic” and ethnic identities

Assessing Your Ethnocentrism Use the following scale to indicate the degree to which each statement is true of the way you typically think about yourself. “Always False” (1), “Mostly False” (2), “Sometimes True and Sometimes False” (3), “Mostly True” (4), or “Always True” (5). 1. I apply my values when judging people who are different. 2. I see people who are similar to me as virtuous. 3. I do not cooperate with people who are different. 4. I prefer to associate with people who are like me. 5. I do not trust people who are different from me. To find your score, add the numbers you wrote next to each of the statements. Scores range from 5 to 25. The higher the score, the more ethnocentric you are. SOURCE: The items on this questionnaire are drawn from Brewer’s (1981) description of ethnocentrism.