Impact of National Culture Models on Management Strategies

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This report provides a comprehensive overview of national culture models and their implications for management practices. It begins by defining national culture and then delves into various models, including single dimension models (high/low context, monochronic/polychromic cultures, and Fukuyama's analysis of trust), multiple dimension models (Hofstede's model, Hampden-Turner & Trompenaars' analysis, and Lessem & Neubauer's analysis), and historical-social models (Euro-Management Study and South East Asian Management). The report examines how these models can be applied in a management context, exploring the influence of cultural dimensions on organizational behavior, leadership styles, and cross-cultural interactions. It highlights key concepts such as power distance, uncertainty avoidance, individualism, masculinity, universalism, particularism, and the impact of historical and social factors on management approaches in different regions. The report offers a valuable resource for students seeking to understand the complexities of national culture and its role in shaping effective management strategies in a globalized world.
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1 Introduction
In this article dimensions of national culture and cross-cultural purpose of dimension are
discussed. The article defines national culture and summarizing the singles dimension model,
multiple dimension model, and historical- social models of national culture. An analysis is made
by applying these models in the context of management.
2 Models of National Culture-A Management Review
This article composted of study of national culture and practice of local and international
management. In this article, the author describes the national culture and cross-cultural models
and illustrates the single, multiple dimension models, historical social models of National
culture.
3 National Cultures
National culture defines the collective mental programming of the people of any particular
culture. Hofstede defined the national culture as people of their mental programming repeats the
national culture and mental programming makes the value, behaviors, perceptions, and
competencies that describe the national culture.
4.0 Cross-cultural aims of national models
The author describes the national culture as a documented view that is applied in other culture
and other countries. One country of culture may not be followed in another country. According
to (Hampden-Turner and Trompenaars) apply the locally appropriate models and practices
managements of national culture. In this two implications BEST FIT, POLYCENTTRICITY this
defines best fit the multinational and international organizations make their culture according to
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their national culture whereas in polycednticity the culture used diversely the national and
multinationals organizations used their national culture as well the culture of the other countries.
4.1 Single Dimension Culture:
On this authors used three models to describe the single dimension culture.
High and Low cultures:
The people of the high context level are the information seeker it can share the information with
their colleagues and friends commonly they gossip with their every problem among their friends
whereas the people of Low context are share with their friends and discuss with their friends but
it can take the decision on the research base it can be work on research base and then go the
decision making.
4.1.1 Mono-chromic and polychromic culture
The polychromic people doing the many things at the same time there is no time management
system in their life's they don't take the time framework when they meet with opportunity it can
be done in the given article. The polychromic peoples are extrovert, talkative, work any hours,
juggles facts, plays a many role, talks for hours, goes round all departments dislikes writing too
much, unpunctual, changes the plans, seeks favors, doing the several things at the same time.
Author takes the example of Indians, Arabs, and American people.
The monochromic people are conservative these types of peoples are introvert, patients, quiet,
punctual, makes the plans, job oriented, works within departments, sticks to plans, sticks to
timetable, play a role within a team, focused on communications, follow correct procedures,
follows systems, juggle fact, dominated by timetable and schedules, doing one things at the time,
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gets information’s from the statics references books. The people of Germany, American, French,
and Chile, Portuguese, sub-continents and some others have monochromic characteristics.
4.1.2 Fukuyama’s also analysis of Trust
Fukuyama analyzes the relationship between the social capital, trust management, and
development of an organization. Fukuyama results from their study that high trusts society
makes a flexible work place make their work diligently even in low organizations. Fukuyama
comment that the developed countries having nonprofit, Professional associations, and charitable
institutions that developed a strong private economic institutions that of beyond the family. It
suggests that most of the countries generate a strong social group people and state the tendency
to do this is less in China, Russia Latin catholic countries that’s are arranged in low trust.
Fukuyama suggests the low trust societies having strong families but weak bound among the
people low trust level among them and unrelated to another are leads to the family business and
managed the already business. Fukuyama studied the catholic countries like Italy, France and
Spain having strong family business sectors, a strong state sector, and between social group and
organizations. Fukuyama studied a French family business with professional management and
the role of state in developing a large scale and the state help the low private organizations due to
lower trust among the French people and traditional difficulties among the people of groups and
habitual preferences based on face to face value. Fukuyama result that the people of French may
find the difficult to solve the problems between themselves without references.
4.2 Multiple Dimension Culture
In the given article author defines the multiple dimension culture through Hofstede’s model
describes that the effect of work environment and management categorized by variables that are
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Power Distance is that the people having an unequal social and status sense how peoples and
different societies deal with it. Uncertainty Avoidance how the society deals with the future and
its risk. Individualism is deals with the close relationship among the people and individuals
problems in organization and society as a whole, the other variable is Masculinity it deals with
the role of men and women and also describes the issues of sex among the society and the roles
of society that carries out.
4.2.1Hofstede’s model more summarized
The model proposed by Hofstede states that the national culture and values influence the
organizational environment and its management. The influence of culture on firm and its
environment is categorized into four variables;
variables
Power distance This variable reflects the way people are dealt in a society according to their social
status.
Uncertainty
avoidance
This reflects that to which extent a society copes with uncertainty.
Masculinity-
femininity
which indicates the relative closeness of the
relationship between one person and others. It anticipates fundamental
is sues about individual motivation and place (and the management
thereof), and about the organization and functioning of a society as a
whole
Individualism-
collectivism
It reflects the roles given to individuals of a society on the basis of their gender.
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4.2.2 Hampden- Turner & Trompenaar’s Analysis
Models of these theorists suggest that how the value and nature of an enterprise are linked with
the value judgment, this model comprises seven value dilemmas. These theorists suggest that this
model helps a manager to the culture and cultural differences in an organization.
Universalism and
particularism
This variable helps in managing the standard of the organization by making rules
and managing exceptions.
Deconstruction
and Construction
Communism and
Individualism
It reflects if a firm supports a person (an employee) and regards his efforts being
an individual stakeholder. It reflects the way an organization manages its
internal workgroups or communities.
Inner-directed and
Outer-directed
The variable teaches the workforce or any organization to manage its
relationship with the internal and external world. A firm is supposed to build a
strong relationship with its internal and external stakeholders.
Sequence and
Synchronization
It reflects the attitude of the firm towards the valuation of time. It reflects the
time span in getting things done.
Achieved status
and ascribed
status
It reflects the active status of the firm, the ratio of achieved goals, and strategic
planning of writing and making efforts in achieving the ultimate goals.
Equality and
Hierarchy
It reflects the way an organization deals with its workforce. Whether they are
dealt with hierarchal or on the basis of success notes. Equality means providing
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equal opportunities to every member of the firm.
4.2.3 Lessem & Neubauer’s Analysis
These scholars have described the influence of “National Culture” by stating four criteria;
A. Pragmatism
Pragmatism believes in an experiential basis to encourage learning in an organization.
Pragmatism emphasizes on competence, actions and personality. In this variable managers make
efforts for self development through multiple processes of learning.
B. Rationalism
Rationalism believes in reasons rather than experiences. It focuses on the companies and their
cultures on basis of structure, framework, concepts, and bureaucracy. It believes in highly
professional management. Planning is highly valued and regarded in rationalism.
C. Wholism or idealism
Wholism is defined by as 'something made up of parts in combination; a complex unity or
system'. Webster's Dictionary defines wholism as a conception of something in its highest
perfection; a theory that affirms that mind or the spiritual or ideal is of central importance, in
reality, asserting that the ideal element, in reality, is predominant'.
Idealism management is about co-operation and coordination based management. It believes in
partnership among the public and private limited sectors. In this system liberty between a firm
and its environment is encouraged.
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D. Humanism
It believes in collective relations and associations among mankind, it supports the family systems
and communities. Humanism develops a sense of duty and responsibility among people.
Humanism develops the sense of fashion and trend, emotions and taste among mankind.
In business, Humanism helps to manage the workforce.
4.3 Historical-Social models
The historical social models describe the historical dimensions and variables of culture and their
influence over national cultures.
4.3.1 The Euro-Management Study
It's a major study that was made to find the common factors and attributes among managers. The
study was conducted by analyzing the traits of managers and supper executives of thirty-five
companies from fourteen countries of Europe. The common traits identified by this study are
given below;
European Managers have the capacity to manage and handle diversity. This trait is helping them
to bind Europe together. European people regard and respect diversity because they are aware of
the advantages of Diversity. Europe has trained its people to deal with diversity and to accept the
diversity which is making them able enough to succeed in a highly diverse environment.
Another train which is found common among managers of Europe is an orientation towards
people. They take their employees as an integral part of the firm. Then the trait of Social
responsibility comes. European companies are responsibility-oriented, they regard themselves as
an integral part of society and acknowledge their responsibility regarding the social
responsibilities. The organization of Europe better knows that it is a key part of society and thus
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key responsibilities are also supposed to be fulfilled. Another trait found in European managers
is a degree of informality. Europeans tend to be skeptical about the value of formal management
systems and written rules. The management process may be informal and intuitive, with intense
verbal communication and periodic negotiation. The distribution of power and the role of
leadership may therefore under such circumstances be of considerable interest to European
managers, since they may not be able to rely on formalization or hierarchy in order to exercise
authority or make/frame decisions.
4.3.2 South East Asian Management
This study describes the social influences on management practices in South East Asia.
a. Taoism
It is a holistic philosophy that encourages relationships and interactions among people. Harmony
should be encouraged to bring peace and integrity among people. This trait encourages the unity
and oneness among people. Unity in an organization is damn needed to achieve the goals and
meet the aims and targets.
b. Confucianism
It’s a moral and religious system regarded and followed by Chinese people. The system got viral
in South Asia the system came under practice as principles of ethics and moral values. The
concept encourages harmony and peace among people. Moral and ethical values are quite needed
in any firm to grow and succeed. Better relations among the workforce are usually based on a
sense of dignity, respect, and regard among employees.
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c. Personal Relationships
It reflects making the relationship with fellow beings and maintaining the relationships
among people. The relationships are supported by the exchange of favors and emotions.
Relationship supports and strengthens the interpersonal relationships.
d. Face
Face encourages social interaction among people. The face is considered as completeness
and dignity of a person.
e. The five cardinal relations
Five Cardinal relations and basic relations found among mankind. These five relations
reflects a strong ties between father and son, a relation between a ruler and subordinates,
distinctions among couples, the sequence between siblings, and the relationship of faith
among friends. These relationships better-assisted people to develop a relationship of
responsibilities and duties. These relationships encouraged a sense of respect and regard
among bosses and subjects.
f. The strategic thinking of Sun Tzu
Sun Tzu was an advisor of a Chinese king, his writings describe the Chinese' way of fighting.
His book named as "The Art of War" describes the ways to fight and strategies to defeat the
opponent. Keeping in view the strategies to defeat an opponent in war strategies are formulated
to defeat the opponent in the marketplace. So the war strategies were applied to business
activities. Strategic planning is an art and technique of making strategies for getting things done,
implementing and applying the strategies, and then evaluating the outcomes. Outcomes are
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evaluated to check if the results are according to the long-term objectives of the firm or not. In
this regard, various departments are kept under consideration to fulfill the strategic goals of any
business. The strategic planning process requires uppers management to come u with
considerable ideas and plans. Before creating or settling a plan it is required to predict the
implementation process and assume the possible outcomes. The strategic planning process
involves multiple stages.
Strategy formulation
Before formulating any strategy a company performs its internal and external audit to get about
its current situation and strategic position. The audit better help in identifying strengths,
weaknesses, opportunities, and threat of any business. after evaluating the internal and external
situation managers make plans about resource allocation and regarding expansion as well.
Business strategies keep a long-term influence on the success of an organization.
Strategy implementation
After formulating the strategies company has to decide the actions and implementation elements
to execute the plan. The success of a plan always relies on the efficiency of upper management.
So the upper management should be efficient in setting goals and making plans. Upper
management should better deliver and communicate the plans and is supposed to involve all its
employees in the implementation stage. To implement a strategy effectively a solid structure
should be developed for implementing the strategy and allocating the right resources at the right
place.
After successful implementation of strategy then comes the stage of strategy evaluation. After
formulation of strategy the company needs to develop the action plans to put the strategy into
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action by setting goals and targets. It is required to determine the success of the strategy by
evaluating the outcomes. So after the implementation stage, the chosen implemented strategy
must be evaluated. Three important activities are performed in the evaluation phase. It requires
reviewing the internal and external factors that impact the strategy and its implementation,
measuring the performance, and taking many corrective steps to make the strategy more efficient
and effective. All these steps are performed by all three levels of management.
g. The Taipans
The Taipan is a supreme ruler a kind of a leader. Taipan is considered as a supreme manager or
an entrepreneur. He is a person who takes risks and makes decisions. in a company, managers
are regarded as leader or bosses and the traits were inherited from the system of Taipans.
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