Chapter Three

The Meanings and Dimensions

of Culture

McGraw-Hill/Irwin .
 The Nature of Culture

Culture is
 Acquired knowledge that people use to interpret
experience and generate social behavior. This
knowledge forms values, creates attitudes, and
influences behavior.

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 The Nature of Culture
 Characteristics of culture
 Learned: Culture is not inherited or biologically based; it is
acquired by learning and experience
 Shared: People as members of a group, organization, or
society share culture; it is not specific to single individuals
 Trans-generational: Culture is cumulative, passed down from
one generation to the next.
 Symbolic: Based on the human capacity to symbolize or use
one thing to represent another
 Patterned: has structure and is integrated; a change in one
part will bring changes in another.
 Adaptive: based on the human capacity to change or adapt

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 Values in Culture

 Values
 Basic convictions that people have about
Right and wrong
Good and bad
Important and unimportant
 Learned from culture in which the individual is
reared
 Differences in cultural values may result in
varying management practices

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Priorities of Cultural Values

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 Cultural Diversity
How Culture Affects Managerial Approaches

Centralized vs. Decentralized Decision Making

 In some societies, top managers make all important
organizational decisions
 In others, these decisions are diffused
throughout the enterprise, and middle- and
lower-level managers actively participate in, and
make, key decisions

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 Cultural Diversity
How Culture Affects Managerial Approaches

 Safety vs. Risk

 In some societies, organizational decision makers
are risk averse and have great difficulty with
conditions of uncertainty
 In others, risk taking is encouraged, and decision
making under uncertainty is common

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 Cultural Diversity
How Culture Affects Managerial Approaches

 Individual vs. Group Rewards

 In some countries, personnel who do outstanding
work are given individual rewards in the form of
bonuses and commissions
 In others, cultural norms require group rewards,
and individual rewards are frowned upon

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 Cultural Diversity
How Culture Affects Managerial Approaches

 Informal Procedures vs. Formal Procedures

 In some societies, much is accomplished through
informal means
 In others, formal procedures are set forth and
followed rigidly

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 Cultural Diversity
How Culture Affects Managerial Approaches

 High Organizational Loyalty vs.

Low Organizational Loyalty
 In some societies, people identify very strongly with
their organization or employer
 In others, people identify with their occupational
group, such as engineer or mechanic

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 Cultural Diversity
How Culture Affects Managerial Approaches

 Cooperation vs. Competition

 Some societies encourage cooperation between
their people
 Others encourage competition between their
people

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 Cultural Diversity
How Culture Affects Managerial Approaches

 Stability vs. Innovation

 The culture of some countries encourages stability
and resistance to change
 The culture of others puts high value on innovation
and change

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 Cultural Diversity
How Culture Affects Managerial Approaches

 Short-term vs. Long-term Horizons

 Some culture focus most heavily on short-term
horizons, such as short-range goals of profit and
efficiency
 Others are more interested in long-range goals,
such as market share and technological
developments

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Hofstede’s Cultural Dimensions

1. Power distance
2. Uncertainty avoidance
3. Individualism/collectivism
4. Masculinity/femininity
5. Long term/ Short term orientation
6. Indulgence / Restraint
A research with 116,000 participants, from 70
countries

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Hofstede’s Cultural Dimensions

 Power distance
 The extent to which less powerful members accept
that power is distributed unequally.
High power distance countries: people
blindly obey superiors; centralized, tall
structures (e.g., Mexico, South Korea, India)
Low power distance countries: flatter,
decentralized structures, smaller ratio of
supervisor to employee (e.g., Austria,
Finland, Ireland)

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Hofstede’s Cultural Dimensions

 Uncertainty avoidance
 The extent to which people feel threatened by ambiguous
situations; create beliefs/institutions to avoid such
situations.
 High uncertainty avoidance countries: high need for
security, strong belief in experts and their knowledge;
structure organizational activities, more written rules,
less managerial risk taking (e.g., Germany, Japan,
Spain)
 Low uncertainty avoidance countries: people more
willing to accept risks of the unknown, less structured
organizational activities, fewer written rules, more
managerial risk taking, higher employee turnover,
more ambitious employees (e.g., Denmark and Great
Britain)
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Hofstede’s Cultural Dimensions

 Individualism
 The extent to which people look after themselves
and immediate family only.
High individualism countries: wealthier,
protestant work ethic, greater individual initiative,
promotions based on market value (e.g., U.S.,
Canada, Sweden)
High collectivism countries: poorer, less
support of Protestant work ethic, less
individual initiative, promotions based on
seniority (e.g., Indonesia, Pakistan)

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 Values in Transition: The cases of Japan and China
There is increasing evidence that individualism in Japan is on the rise,
indicating that Japanese values are changing—and not just among managers
outside the country. The country’s long economic slump has convinced
many Japanese that they cannot rely on the large corporations or the
government to ensure their future. They have to do it for themselves. As a
result, today a growing number of Japanese are starting to embrace what is
being called the “era of personal responsibility.” Instead of denouncing
individualism as a threat to society, they are proposing it as a necessary
solution to many of the country’s economic ills. A vice chair of the nation’s
largest business lobby summed up this thinking at the opening of a recent
conference on economic change when he said, “By establishing personal
responsibility, we must return dynamism to the economy and revitalize
society.” This thinking is supported by past research, which reveals that a
culture with a strong entrepreneurial orientation is important to global 4-
competitiveness, especially in the small business sector of an economy.
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 Values in transition

Read the case study:

1. How is the shift towards individualism in Japan challenging traditional collectivist values,
particularly in the context of the “era of personal responsibility?
The transition from collectivism to individualism in Japan has created some challenges for changes
in Japanese work culture, shifting the attitude of employees who do not stay with one company for
the rest of their lives; they will have more choices and flexibility in choosing their career, which
raises questions about their commitment to work.

2. In what ways do you think Japan’s economic struggles have contributed to the rise of
personal responsibility and individualism among its people?
Since Japan's long-term economic hardship has put significant strain on the Japanese people, they recognize that
they cannot rely solely on giant enterprises or the government to secure their future. Individuals must take
responsibility for their own interests, rather than being obliged to remain loyal to a firm for life. This fosters a culture
of personal responsibility and prioritizes individual values over collective ideals.

3. Given these transitions in both Japan and China, what do you think the future of their
business cultures might look like? Will individualism continue to rise, or will there be a return
to more traditional values?
Individualism may be more prevalent in business cultures because when an individual understands what they are
doing, they are also more likely to be responsible for what they do, how it will affect others, and they can make
decisions that affect society. However, a complete shift away from traditional values is unlikely. A balance or
hybridization of individuality and collectivism will emerge, with increased personal freedom and expression while
maintaining respect for tradition, hierarchy, and societal harmony.
Hofstede’s Cultural Dimensions

 Masculinity
 A cultural characteristic in which the
dominant social values are success, money,
and things.
High masculine countries: stress earnings,
recognition, advancement, challenge, wealth;
high job stress (e.g., Germanic countries)
High feminine countries: emphasize caring for
others and quality of life; cooperation, friendly
atmosphere., employment security, group
decision making; low job stress (e.g., Norway)
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Hofstede’s Cultural Dimensions

 Time orientation
 Time orientation is defined by Hofstede as
“dealing with society’s search for virtue”
Long-term oriented societies: have the ability to
adapt their traditions when conditions change, have
a tendency to save and invest for the future, and
focus on achieving long-term results (China, JP,..)
Short- term oriented societies: focus more on the
past and present than on the future. These
societies have a deep respect for tradition, focus on
achieving quick results, and do not tend to save for
the future (Spain, The USA and the UK)
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Hofstede’s Cultural Dimensions

 Indulgence
 A cultural characteristic measures the freedom
to satisfy one’s natural needs and desires within
a society
Indulgent societies: encourage instant
gratification of natural human needs (Americas
and Western Europe)
Restrained cultures: regulate and control
behavior based on social norms (e.g., Russia,
India, China)

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Hofstede’s Cultural Dimensions

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Hofstede’s Cultural Dimensions
You are HR managers working for an international company’s Vietnamese subsidiary. You have to
prepare the orientation session for two new foreign managers who will join the company soon. A male
and a female from the US.
Using Hofstede’s Cultural Dimensions, describe how different the work behaviour of their Vietnamese
colleagues may be compared to their own work practices. Illustrate and explain your examples
ANSWER:
Orientation for New Foreign Managers: Vietnamese Colleagues vs. US Work Practices Based on
Hofstede’s Cultural Dimensions
Hofstede’s cultural dimensions framework helps highlight potential differences between Vietnamese
and US work cultures. These insights can prepare the new managers to adapt their leadership styles
for a successful transition.
1. Power Distance
Vietnam: High power distance. Vietnamese workplaces are hierarchical, and employees often defer to
managers for decisions. Managers are viewed as authority figures, and questioning them openly may
be seen as disrespectful.
Example: Vietnamese colleagues may wait for the manager’s approval before taking initiative or
voicing opinions in meetings.
US: Lower power distance. Americans value equality in the workplace, and employees are more likely
to challenge or offer input to their superiors.
2. Individualism vs. Collectivism
Vietnam: Collectivist culture. Team harmony, relationships, and loyalty are highly valued. Individual
success is often linked to group achievements.
Example: Vietnamese employees may prioritize group consensus over personal opinions during
discussions.
US: Individualistic culture. Employees value independence, personal goals, and assertiveness in
expressing their ideas.
3. Masculinity vs. Femininity
Vietnam: Moderately feminine culture. Focus is placed on building relationships and achieving work-
life balance rather than competition or high performance.
Example: Vietnamese colleagues may prefer collaboration over aggressive competition for promotions
or rewards.
US: Masculine culture. Emphasis is on achievement, assertiveness, and competition. Success is often
measured by results.
4. Uncertainty Avoidance
Vietnam: Higher uncertainty avoidance. Vietnamese employees often prefer clear instructions,
structured processes, and stability. They may hesitate to take risks or adapt to sudden changes.
Example: Colleagues may seek detailed guidance for new projects and avoid making decisions in
ambiguous situations.
US: Lower uncertainty avoidance. Americans are generally comfortable with ambiguity,
experimentation, and taking calculated risks.
5. Long-Term vs. Short-Term Orientation
Vietnam: Long-term orientation. Vietnamese employees often focus on future benefits, relationships,
and sustainability rather than immediate results.
Example: They may prefer building strong relationships with clients over quick transactions.
US: Short-term orientation. Americans often emphasize quick results, deadlines, and immediate
rewards.
6. Indulgence vs. Restraint
Vietnam: Restraint culture. Vietnamese workplaces often emphasize self-control and duty, with less
focus on leisure or personal enjoyment.
Example: Colleagues may not openly celebrate successes or prioritize personal time during busy
periods.
US: Indulgence culture. Americans value leisure, personal expression, and celebrating achievements.

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 Class Activity
Moving to a foreign country isn’t easy, no matter how many times you’ve done it or how receptive you are to
new experiences. Successful global organizations are able to identify the best candidates for global
assignments, and one of the ways they do this is through individual assessments prior to assigning people
to global facilities. Form groups of three to five individuals. Your newly formed team, the Global Assignment
Task Force, has been given the responsibility for developing a global aptitude assessment form for Yum
Brands. Yum Brands is the largest food operator in the world whose units include Taco Bell, Pizza Hut,
KFC, Long John Silver’s, and A&W). Because Yum is expanding its global operations significantly, it wants
to make sure it’s sending the best possible people to the various global locations. Your team’s assignment
is to come up with a rough draft of a form to assess people’s global aptitude. Think about the
characteristics, skills, attitudes, and so on that you think a successful global employee would need. Your
team’s draft should be at least half a page, but not lengthier than one page. Be prepared to present your
ideas to your classmates and lecturer.
ANSWER :
For Use by Yum Brands – Global Assignment Task Force
This form assesses the qualifications, skills, attitudes, and adaptability of candidates for global assignments.
Candidates should answer honestly, as responses will guide their suitability and preparedness for
international roles.

Section 1: Personal Information

 Name: ___________________________________________
 Current Position: ________________________________
 Department: _____________________________________
 Years with Yum Brands: ___________________________
 Previous International Experience (if any): ___________________________________________

Section 2: Skills and Competencies

 Rate yourself on the following skills and competencies using the scale:
1 = Beginner, 2 = Developing, 3 = Proficient, 4 = Advanced, 5 = Expert
Skill Rating
Cross-cultural communication ________
Adaptability and flexibility ________
Conflict resolution ________
Language proficiency (list languages) ________
Leadership in diverse teams ________
Decision-making in complex environments ________
Problem-solving ________
Knowledge of Yum Brands’ global strategy ________

Section 3: Attitudes and Mindset

Choose the option that best describes your perspective for each statement:
1. I am comfortable working with people from diverse cultural backgrounds.
o Strongly Disagree / Disagree / Neutral / Agree / Strongly Agree
2. I see challenges in new environments as opportunities to grow.
o Strongly Disagree / Disagree / Neutral / Agree / Strongly Agree
3. I am open to learning new customs, traditions, and work styles.
o Strongly Disagree / Disagree / Neutral / Agree / Strongly Agree
4. I can manage stress effectively in uncertain or changing environments.
o Strongly Disagree / Disagree / Neutral / Agree / Strongly Agree

Section 4: Practical Considerations

1. Do you have any family, health, or personal considerations that may affect your ability to relocate
internationally?
o Yes / No
o If yes, please provide details: ___________________________________________
2. Are you willing to commit to a minimum of [X] years in an international assignment?
o Yes / No
3. Are you prepared to adapt your lifestyle (e.g., diet, transportation, housing) to a new environment?
o Yes / No
4. Do you have any current responsibilities (e.g., childcare, elder care) that may impact your ability to relocate?
o Yes / No

Section 5: Self-Reflection Questions

1. Describe a time when you successfully adapted to a new culture or environment.

2. What strategies would you use to integrate into a new country’s work culture?

3. How do you handle miscommunication or misunderstandings in a culturally diverse setting?

4. What motivates you to take on an international assignment with Yum Brands?

Section 6: Manager’s Assessment (Optional)

(To be completed by the candidate’s direct supervisor)
 How well does the candidate demonstrate cultural sensitivity?
 Has the candidate shown adaptability in past roles?
 Would you recommend this employee for an international assignment? Why or why not?

Conclusion and Next Steps

Once completed, this form will be reviewed by the Global Assignment Task Force and HR team. Selected
candidates will proceed to interviews and additional training for their potential role.
Signature (Candidate): ____________________________
Date: ____________________________________________

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