Lecture 12: Culture and Organizations

Power distance

Extent to which different cultures accept and maintain power and status differences between people.

• High = organizations are highly hierarchical and develop rules, mechanisms and rituals to reinforce status and power relations.

  • China, Russia, Saudi Arabia.

• Low = organizations are more egalitarian and minimize rules and customs.

  • USA, Canada, Scandinavia, UK.

Individualism / Collectivism

Degree to which individuals are integrated into groups.

• Individualistic = individuals care for themselves and their immediate family.

  • people value personal achievement and individual rights.

• Collectivistic = individuals are integrated into strong, cohesive groups that protect them in exchange for loyalty.

  • emphasis on group harmony, cooperation and collective well-being.

    • people prioritize group goals and conformity over personal achievement. 

Masculinity / Femininity

Extend to which cultures promote or maintain gender differences in work-related values (ex. competition).

• Masculine = emphasis on competition, achievement, success and material rewards.

  • clear distinction between gender roles → men expected to be assertive, women expected to be caring.

• Feminine = emphasis on cooperation, caring for others and quality of life.

  • gender roles are fluid → both men and women expected to shar caring responsibilities. 

Uncertainty avoidance

Extend to which different cultures develop ways of dealing with fear and stress of uncertainty.

• High = preference for structured environments, clear rules and predictable outcomes.

  • low tolerance for ambiguity, risk-averse behaviour is common.

    • organizations have strict rules, policies and rituals to manage uncertainty.

• Low = more relaxed about change and unpredictability.

  • people are comfortable with ambiguity, innovation and risk-taking.

    • organizations have fewer formal rules and are more open to flexibility.

Long-term orientation vs. Short-term orientation

Degree to which cultures value long-term, forward-looking planning vs. short-term, immediate results.

• Long-term = prioritize perseverance and adaptation to changing circumstances.

  • value future rewards, long-term commitments and nurturing relationships more than quick results.

• Short-term = focus on traditions, immediate results and maintaining social obligations.

  • more emphasis on present and past than future long-term goals.

Indulgence vs Restraint

Degree to which societies allow relatively free gratification of basic human urges related to enjoying life and having fun.

• Indulgent = people are free to express their desires, enjoy life and engage in leisure activities.

  • emphasis on individual happiness and well-being, fewer restrictions on behavior.

• Restrained = suppress the satisfaction of desires and regulate behavior through strict social norms.

  • people feel less free to enjoy life, more likely to adhere to social expectations.

Minkov (2017) raised 4 questions about Hofstede’s IMB model

1. Do IBM workers represent national cultures? Do values replicate with other groups?

   1. No, IBM employees are not representative of the general population in other countries.

2. Do the questionnaires measure values correctly?

   1. The individualism index was used to measure individualism, but it does not match the definition of individualism used in this model.

3. Is cultural variation meaningful?

   1. No, individuals differ more within countries than between countries.

4. Ecological fallacy: be careful about interpretation

   1. Inferring individual behavior from country-level data is problematic → differences within countries may be greater than differences between countries.

Oyserman’s study

Differences between countries remain relatively small. 

Which dimensions of Hofstede’s IBM model have been replicated? Which ones have not?

• YES = individualism/collectivism and power distance.

• NO = uncertainty avoidance and masculinity/femininity.

Organizational culture

The dynamic information system of attitudes, values, beliefs, norms and behaviors within the organization that are transmitted to generations.

Organizational climate

Refers to how employees perceive and share policies, practices and procedures within the organization. 

• A distinction can be made in an employee’s commitment to an organization.

Culture and person-organization fit

Good match between person and culture of an organization if their values match (they will be satisfied and more committed) and when they identify more with their organization.

• BUT the fit is less important when employees have few job choices.

2 forms of Organizational commitment

• Normative commitment = extent to which an individual’s relationship with an organization is driven by a sense of obligation and duties.

• Affective commitment = the personal feelings and emotional attachment a person toward their relationship with an organization.

Occur in all cultures, but more important in collectivistic cultures.

Organizational commitment in collectivistic cultures

Boundaries between colleagues are less strict, and tasks and obligations are given more weight. 

• Related to psychological contracts

Psychological contracts

The mutual expectation between the organization and employees about obligations.

• Work has different meanings in different cultures: for some it is a means to an end, to others it is seen as an obligation.

Bamboo ceiling effect

People of Asian descent are less likely to be in positions of power in countries such as the USA.

Social loaging

The decrease in productivity as the size of the group increases.

• USA.

Social striving

The increase in productivity once the group gets bigger.

• Japan

High power distance has what style of decision-making and interaction?

Autocratic or paternalistic.

• Strict supervision that is seen positively by submissive employees.

Low power distance countries have what style of decision-making and interaction?

Participatory and consensual.

• Strict supervision is perceived negatively by employees.

Paternalistic leadership (Sinha, 1979)

Hierarchical relationship where the superior person provides guidance and nurturing and the submissive responds with loyalty.

• The leader behaves as a father figure and role model, both participatory and authoritative. 

  • There is no clear boundary between work and private life. 

• Non-Western cultures

Bapakism

= Father, paternalistic leadership style in Indonesian culture.

Goal that is the same to every leader

Task performance and group retention.

• Global technological and industrial practices make this possible across cultures.

Oligarchies

A limited number of people make decisions (often in large companies).

Oligarchies are a [top-down/bottom-up] approach

Top-down → Western context.

Oligarchies are a form of [collectivism/individualism] with a [high/low] power distance.

• Individualism

  • High

Ringi

A Japanese process of decision-making, where a proposal is circulated to all the people who will be affected by it, regardless of their status or position.

• Once consensus is reached, the proposal reaches the leaders of the organization, who formally approve it.

Nemawashi

The process of consensus where all people regardless of their status or position have a say in the proposal before it is sent to the leaders of the organization who formally approve it. 

Ringi/Nemawashi is more [individualistic/collectivstic] with [high/low] power distance.

• Collectivistic

  • Low

Equality

Whether your contributions are included in the decision-making process.

Equity

Whether a person’s demographic characteristics are considered in the decision process.

Distributive justice

The distribution of products such as salary or benefits is distributed equitably.

Procedural justice

The processes and procedures that organizations use for decision-making are fair.

Culture shock

The fear, confusion, doubt or nervousness that arises during the process of adapting to a new culture.

4 Phases of Culture shock

1. Honeymoon = positive, especially when voluntary; culture is fun and exciting.

2. Negotiation = more aware of the differences between old and new culture → can provoke frustration or fear = cultural shock.

3. Adaptation = they adapt to cultural routine of others.

4. Mastery = fear no longer exists, because they know how to deal with the new culture.

Reverse culture shock

After return: the cultural shock experienced upon returning to one’s own culture.

4 benefits of diversity

• Better quality decisions

• More creative

• Economic growth

• Intergroup and intercultural relations are more positive

Optimistic perspective of diversity

Information-processing approach:

• Diverse groups have more relevant information available to them through multiple available sources.

• These groups need to express and work through conflicting perspectives → reduces risk of groupthink.

• If groups combine their various recources, superior performance results.

Groupthink

Making polarized decisions, inclined toward the group’s perspective.

Pessimistic perspective on diversity

Social categorization perspective

• Diversity creates social division → harms cooperation.

• Similar-attraction theory: people are attracted to those they resemble.

• Social identity theory: people categorize themselves and others into groups, with which they identify and try to promote themselves → hinders intergroup relationships.

• More room for cultural misunderstandings. 

Diversity has which 2 sides?

• More creativity, increased performance, high-wuality decisions.

• More conflict, less effective communication and problematic intergroup relationships.

3 Solutions for two sides of diversity

• Putting different cultures can be problematic → Solve by increasing opportunities for cross-cultural contact and experience.

• In different cultures, people may be selected and promoted on bias → Avoid this by creating reduction bias with increase in opportunities to be transparent and accountable.

• Increased resistance, mistrust and conflict → Solve through promotion of inclusive multiculturalism, include all perspectives.

Meta-analysis examined discrimination related to being hired for a job → Same cover letter, different photo and name of applicant. Results?

Ratio 1:3 → non-Caucasian applicant has to send up to 30% more of their resume to be accepted.