Cultural Factors on Management

【Abstract】This article examines the relationship between culture and management， reviews some of the value differences of various nations， and relates these cultural dimensions to the business settings to analyze their effect on the practice of management in an international environment.

【Key words】culture； cultural factor； value； attitude； management

【作者簡介】董佳文（1978- ），女，汉族，浙江绍兴人，上海立达职业技术学院基础与外语学院，助教，硕士研究生，研究方向为商务英语研究。

Introduction

Todays business world is increasingly global. And the real challenge at present， for the manager， is “developing the ability of management from different countries and cultures to think and work together ― a primary factor for the success of global organizations.”（Samovar， et al， 2000， 179） This challenge exists because even the conception of management can be viewed differently from culture to culture. Hofstede states that management in the American sense “refers not only to the process but also to the managers as a class of people. Members of this class carry a high status. In the United States， the manager is a cultural hero.”（Samovar， et al， 2000， 179） and in the Chinese view “Overseas Chinese American enterprises lack almost all characteristics of modern management. They tend to be small， cooperating for essential functions with other small organizations through networks based on personal relations. They are family owned， without the separation between ownership and management typical in the West， or even in Japan and Korea…Decision making is centralized in the hands of one dominant family member， but other family members may be given new ventures to try their skill on. They are low-profile and extremely cost-conscious， applying Confucian virtues of thrift and persistence. Their size is kept small by the assumed lack of loyalty of non-family employees， who， if they are any good， will just wait and save until they can start their own family business.”（Samovar， et al， 2000， 181） The different cultural views held by Americans and Chinese toward management suggest that there exist cultural differences in various nations which may affect their members management behavior to some extent.

Cultural Factors on Management

Cultures differ in their orientations and these differences in cultural values often result in varying management practices. According to Hofstede， there are four cultural value dimensions that have a significant impact on management in all cultures： （1） Power Distance； （2） Uncertainty Avoidance； （3） Individualism versus Collectivism； （4） Masculinity versus Femininity.

Power Distance

Power distance is “the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally”（Hofstede， 1991， 28）. People in cultures with a low power distance tend to minimize the importance of a persons position in the hierarchy. Decision making in organizations tends to be decentralized. In contrast， people in cultures with a high power distance tend to accept the power and authority of their superiors simply on the basis of the superiors positions in the hierarchy and to respect the superiors right to that power. Decision making in organizations tends to be centralized. Managers are seen as decision-makers. People accept decisions made by their superiors because of their implicit belief that those in higher-level positions have the right to make those decisions.

For example， “a senior Indian executive with a Ph.D. from a prestigious U.S. university related the following story： What is most important for me and my department is not what I do or achieve for the company， but whether the [owners] favor is bestowed on me…This I have achieved by saying “yes” to everything [the owner] says or does…To contradict him is to look for another job…I left my freedom of thought in Boston.”（Hodgetts and Luthans， 2003， 116） This story indicates that in high power distance countries such as India， people will blindly obey the orders of their superiors. And such strict obedience can be found even at the upper levels.

Uncertainty Avoidance

Uncertainty avoidance is “the extent to which the members of a culture feel threatened by uncertain or unknown situations”（Hofstede， 1991， 113）. People in societies that have a low measure of uncertainty-avoidance are stimulated by change and thrive on new opportunities. They tent to stress achievement over security. Risk-taking is highly valued in those societies. Organizations with low uncertainty-avoidance cultures exhibit “a less structured and more free-flowing style of management”（Mitchell， 2000， 18）， and have more flexible hierarchies， rules and procedures for doing business. “The organization encourages personnel to use their own initiative and assume responsibility for their actions.”（Hodgetts and Luthans， 2003， 117） The opposite conditions apply in societies with high uncertainty-avoidance cultures. People in these cultures tend to have a high need for security and feel threatened by new ideas. Employees in organizations with high uncertainty-avoidance cultures prefer a structured and routine way of doing things. More rigid hierarchies are adopted， rules and regulations are strongly needed in those organizations. Such organizations have “less risk-taking by managers， lower labor turnover and less ambitious employees”（Hodgetts and Luthans， 2003， 117）.