Tuesday, June 28, 2011

Cultural Perspective

There are many ways to look at cultural differences in an organizational context. The individual's orientation to the world is an important component in determining how that person will view other cultures. An ethnocentric orientation, most often associated with Americans, views the world as being similar to the home country. Thus centrists assume that all people think and act alike, or at least that people from other cultures should think and acts like the centrists. In essence, centrists significantly undervalue the importance of cultural differences in conducting business outside their home country.

The polycentric perspective is one that views every country or culture as unique. This orientation operates with the motto of Think local, act local, where cultural differences become exaggerated and there are few if any opportunities for developing regional economies of scale. In his orientation, cultural differences are over emphasized. Orientation is the perspective, where the individual recognizes similarities and contrasts between and across cultures.

Centrists neither underestimate nor exaggerate the challenges that cultural differences present in conducting business across national boundaries. It is a world-centered perspective that is important to develop in managers who seek an international business career. Using a geocentric orientation, the noted Dutch social scientist has developed the most widely accepted framework for understanding the organizational impact of cultural differences.

His data came from an analysis of cultural differences among groups of employees from different nations who worked for the same global business IBM. Identified four principal components to use in comparing and contrasting cultures as means of analyzing the impact of cultural differences on organizations:

1. Power distance. In cultures that have high power distance, there are large gaps between the haves and have-nots when it comes to career opportunities within business and professional fields. Power distance also refers to the gaps in power and influence within an organizational setting between the executives and middle to frontline managers. In societies that have high power distance, the workers and lower-level managers would be expected to simply follow the orders of the executives without having much empowerment for decision - making at their level.

2. Uncertainty avoidance. Describes cultural differences related to ones need for structure and ones level of comfort with ambiguity. Cultures that are rated low on uncertainty have non structured societies that operate without a high level of formal rules and social norms. Those that are rated high in this dimension reflect people who have a strong need for social order and are uncomfortable with uncertainty.

3. Individualism-collectivism. Reflects the continued of cultures that, on one end, highly value individualism and, on the other end, place a premium on the collectivist needs of the group as a whole.

4. Masculinity-femininity. Those rated low in this dimension, reflecting more attributes, value relationships, harmony, and caring for others more than performance.


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