Chapter 2 (Culture and It's Role in Multinational Operations)

By sofyeasalehuddin | Updated: Jan. 4, 2025, 12:30 a.m.

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ALYA SOFYEA BINTI MOHD SALEHUDDIN
2024757683
Chapter 2
Cultural
What is culture?
Knowledge that people use to understand the world and interact with others. This forms values, attitude and influence behavior
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Here are 6 characteristics

Shared
Transgenerational
Symbolic
Patterned
Adaptive
Learned
Belief about what is right or wrong, good or bad and what matters most. Shaped by culture a person grows up in, guiding how they behave. 
Values in culture
Hofstede's Cultural Dimensions
Uncertainty avoidance
High uncertainty (written rules)
Low uncertainty (Accept the risk)
Individualism/collectivism
High Individualism (promotion based on market)
High collectivism ( based on seniority)
Masculinity/feminity 
High masculine (job stress)
High feminine (quality of life, group desicision
Power distance
High power distance (obey)
Low power distance (decentralized)
Universalism vs. Particularism

Universalistic: Follow formal rules and honor contracts strictly (Canada & Hong Kong) 
Particularistic: Depend on circumstances and contracts may be adjusted
Trompenaar's Cultural Dimensions
Individualism vs. Communitarianism

Individualistic: Prioritize personal goals  and take individual responsibility (Canada & Japan)
Communitarian: people value group goals, teamwork and share responsibility (Malaysia & Korea)

Neutral vs. Emotional

Neutral: Tend to control their emotions and stay composed (Japan & U.K.)
Emotional : People openly express feelings and show enthusiasm.
Specific vs. diffuse

Specific: People seperates work and personal life and are open and extrovert (Austria & U.K.)
Diffuse: Work and personal life overlap and people more indirect and reserved (China & Spain)
The environment
Inner-directed: believe in they control outcomes (Switzerland& Japan
Outer-directed: Adapt to external forces and let things unfold naturally (China & Asian Country
Trompenaar's Cultural Dimensions
Achievement vs. Ascription

Achievement: comes from performance and accomplishments (Austria & Switzerland)
Ascription: comes from who a person is or their background (Venezuela & China) 
Time
Sequential: focus on one task and stick to schedules (U.S.)
Synchronus: Multitasking, schedules are flexible (France & Mexico
personal values strongly impact managerial success Value patterns can predict success and guide hiring actionDifferent countries show similar link between values and successSuccessful managers value action, achievement and adaptabilityLess successful managers prefer passive and static approaches
Values similarities and differences
In some societies, top managers have full control over important decision, while middle and lower managers also contribute to the decisions. 
Cultural affect managerial approaches
Centralized vs. Decentralized Decision Making
Decision- makers avoid risk and struggle with uncertainty, while others, risk-taking an making-decision is uncertain situations are encourage 
Cultural affect managerial approaches
Safety vs. Risk
 Employes who perform exceptionally well are rewarded individually with bonuses based on KPI. While, some country cultural norms favor group rewards, where collective achievement are recognized and individual reward are less common. 
Cultural affect managerial approaches
Individual vs. Group rewards 
Work and task are often managed through informal methods which relying on trust, personal relationship and flexibility rather than strict rules. While some others need to have a formal procedures are strictly enforced with clear rules and system in place. 
Cultural affect managerial approaches
Informal procedures vs.Formal procedures
In some organization, people feel strong connection to their company or employer. While some they identify more with their profession, like being an engineer or mechanic, rather than the organization they work for. 
Cultural affect managerial approaches
High organizational loyalty vs. Low organizational loyalty
Some encourage cooperation between their people. Some prefer competition.
Cultural affect managerial approaches
Cooperation vs. Competition
Some cultures focus on short-term goals, like making quick profits and and improving efficiency. While other prioritize long-term goals like increasing market share and investing in new technologies. 
Cultural affect managerial approaches
Short-term vs. Long-term Horizons
In some countries, like Nepal or Afghanistan, cultural values emphasize stability and resistance to change, often due to economic challenges or limited resources. In contrast, like South Korea or Singapore highly value innovation and adaptability, focusing on technological advancement and continuous growth.
Cultural affect managerial approaches
Stability vs. Innovation
That is all from me

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Chapter 2 (Culture and It's Role in Multinational Operations)

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