cdpm coursework (zeb)
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Introduction
Culture is considered to be one of the unique aspects of human behavior. Therefore, when
exploring the culture in different society it should be taken into account of how history and religion
impact on shaping the society. In the past, many famous people have studied how society is built in
various geographical spaces and identified theories based on which the culture differentiates. Hong
Wu (1991) defines the culture as a complex system or order which is emerging among a group of
people who have common values and attitudes, and other social elements, such as rules, customs,
and traditions. In order to find evidence whether culture has strong relations with individual or
group behavior several theories has been explained how culture influence role of management in
business organizations. Most popular theories are suggested by Hofstedes (1980) and further
developed by Tropenaars (1997), Hall and Kluckhon and Strodbeck, combination of which are
discussed and explored its practical evidence in Italys culture as well as Uzbek culture.
What is Culture
People have different attitudes, beliefs and behavior living in various societies. Those differences
will differentiate their values put on difference in way of doing things and especially in workplace.
Thus, culture is the collective of those people in a particular society who share common values and
beliefs which they believe is right. Culture is said to have three characteristics; (1) it is learned
from other members in a group over time, (2) it is interrelated which means that each part of the
culture is deeply connected to the other, and (3) it is shared among the members of a group and
passed on to an individual from the other members of the group (Hollensen, 2004 cited in Dohler
Lisa, 2006). However, there is an argument about culture saying whether it is inherited from
history or learned over long period of time from diverse environment. Hofstede and Bond (1988)
defines the culture as "the collective programming of the mind that distinguishes the members ofone category of people from those of another" (cited in David A. Ralston et al, 1997). This is true,
of course, because people are different from national level to individual characters. At a national
level, individuals will follow and conform the set of beliefs and behavior that is appropriate for or
within the society. However, their individual culture such as values on likes and dislikes, the
degree of responsibility and commitment to certain tasks are also major influence in workplace.
Culture according to Hollensen (2004) is said to have four layers; national culture,
business/industry culture, company culture, and individual behaviour (cited in Dohler Lisa et al,
2006). Even though business culture, company culture and individual culture has its own cultural
roots they are largely affected by the nations culture due to historical heritage and religion
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influences. In fact, religion, history, and education are factors that have been identified as
important in defining a culture (Ronen and Shenkar 1985 cited in David A. Ralston et al, 1997).
Section A
Swartz (1994) recognizes culture which he calls hierarchy and egalitarianism (cited in Bharat and
Steers, 1999). In hierarchical societies, there is the unequal distribution of power, roles, and
resources are legitimate (ibid). Individuals are socialized to comply with obligations and roles
according to their hierarchical position in society and are sanctioned if they do not (ibid). In
contrast, in egalitarian cultures, individuals are seen as moral equals and are socialized to
internalize a commitment to voluntary cooperation with others and to be concerned with others
welfare (Bharat and Steers, 1999). According to Schwartz (1994) research, China, Thailand, and
Turkey are hierarchical cultures, while Denmark, Italy, and Norway are egalitarian cultures.
Italian people view themselves as egalitarian people whose culture is based on democratic
principles of respect and interdependence (Everyculture.com, 2010). Italian like people for
themselves and not for what they do for a living their professional accomplishments or how much
money they earn (ibid). Due to the egalitarian culture, Italian people tend to have simple tastes and
are not prone to display or excessive showiness of their wealth. In terms of personality, Italianpeople pride themselves on being honest and sincere in their personal relationships. The
interpersonal communication of the Italian people is direct and frank. Greetings are casual, with a
firm handshake, direct eye contact, and a smile (ibid). Moreover, due to egalitarian culture, Italian
people often introduce they often introduce themselves with their first name only which makes
them to be more informal and causal.
According to Hofstede (1980), Italy scores low on power distance, high on individualism, low on
masculinity and low on uncertainty avoidance (Isaksson Emilie, 2006). From this perspective, it
can be said that employees in Italy are dependent to managers to some degree, but relations
between them is consultative rather than strict demanding. A Italian employee can express
disagreement to managers point of view because emotional distance between them is low. In
addition, Italian organizations are decentralized and individuals are given responsibilities.
Managers values individual performance rather than groups and individuals put more value on
organizational goal achievements which also give them a freedom of performance in their own
way. There is a few needs for laws and regulations in organizations and Italian managers do not
expect specific instructions in daily business activities. Italy is also considered as a feministic
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country where there is an equal gender role in society in decision making and task performance
(ibid).
In terms of cultural etiquette in the country, Italian people invite the friends or relatives for the
social activities verbally (not in written form). However, they expect and value punctuality in both
business and social situations (Facts and Statistics, 2010). One of the important cultural etiquette
of Italian people is that they prefer to separate their business and personal lives. So, this indicates
that during the work, personal issues will not be discussed or vice versa. Moreover, the most
important cultural attributes of business etiquette of Italian are that they would be informal in
making negotiations, value individual interests and use direct communications (ibid).
According to Lane Italian people are hospitable but they are not that very sociable (Isaksson
Emilie, 2006). Their attitude towards migration into the Italy is rather negative. For example, they
want foreign tourists to come and rent their holiday houses on the coast and fjord, but to buy them
should not be permitted (ibid). They always want to have time to themselves and they do not prefer
to have visitors. In terms of gender equality in Italian society, there is an observed evidence of
positive results. Italian females are advanced to senior level positions in many organizations (ibid).
Moreover, Italian people value more independence and self-sufficiency. Being indebted by
borrowing or receiving favors makes people uncomfortable (Isaksson Emilie, 2006). Personal
space is respected, and so individuals stand well apart from each other when conversing (ibid).
Section B
Both Hofstede (1984), Hall (1976) and Trompenaars (1997) researches provide studies and
analysis of cultural differences in various countries which will help multi-national companies to
operate effectively in the foreign cultural environment. Hofstede provides studies of cultural
difference at a national level while Trompenaars studies is more focused on cultural differences at
organizational level.
Hofstede (1984)
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The power of national cultures can also be understood by examining seminal research conducted
by Geert Hofstede (1984). Hofstede conducted research on IBM employees in 40 countries and
discovered that cultural values strongly influenced relationships both within and between
organizational divisions (Oded and Luo, 2005). Hofstede (1980) survey revealed four underlying
dimension of culture: power distance, uncertainty avoidance, individualism, masculinity and long
term orientation (cited in Lane Kelly et al, 1987). He believes that those dimensions various from
one society to other. The measurement will be based on putting those aspects on continuum and
analyses the degree of each of the aspects (high vs low, strong vs weak etc) for the respective
society.
Power Distance Index
The first index, power distance, analyzes the nations cultural differences between power andwealth (Hofstede, 2010). If the index is high then it implies that a nation has inequality in power
and wealth. In organizational settings, the level of power distance is related to the degree of
centralization, authoritative and autocratic leadership within the organization (Dohler Lisa, 2006).
According to this dimension, Italy is scored moderate on this index indicating that Italian decision
making is centralized (Oded and Luo, 2005). In terms of organizations, Italian companies has
flatter organization pyramids where there is less hierarchy and bureaucracy in the organizations
Uncertainty Avoidance Index
The second index suggested by Hofstede (1984) is uncertainty avoidance indexwhich indicates
how tolerant for uncertainty and ambiguity the individuals in a society are (Isaksson Emilie, 2006).
This index analyzes how the society handles the fact that the future is unknown and always will be.
A country which ranks high in uncertainty avoidance shows that this country has a low tolerance
and the government creates a society with many laws, rules, and regulations in order to reduce the
amount of uncertainty. On the contrary, low ranking on uncertainty avoidance has a higher
tolerance and the society is less rule-oriented, more open to changes and takes on more risks
(Isaksson Emilie, 2006). Italy scored high on uncertainty avoidance index indicating that there are
lots of written rules and people in this culture have less willingness to take risks in order to dealing
the ambiguity. Moreover, Italian people prefer structured activities and rules in the organization in
their daily activities (Oded and Luo, 2005).
Individualism vs Collectivism Index
Individualism, the third index, is related to how society values individuality, collectivity and
interpersonal relations (Hofstede, 1984). In individualistic culture, people are seen as having
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separate goals and interests (Lane Kelly, 1987). The importance of individual benefits is focused
and therefore, companys goals should coincide employees goals as much as possible. However,
collectivistic culture common goals and interests are shared within a group of people in a society
(ibid). In collectivistic culture strong sense of group belongingness exists and group success is
valued higher than individual success. Italian culture tends to be individualistic-oriented where
organization is more impersonal (Hofstede, 1984). Moreover, Italian people defend their own-self-
interest both personally and professionally. In organizations, the performance and different human
resource practices encourage individual initiatives.
Masculinity Index
Masculinity index concerns how the gender roles are perceived and divided in particular society. In
masculine society family role is dependent on gender (Isaksson Emilie, 2006). In masculinesocieties, often male has more power to make decisions. However, in feminine societies the male
and female roles are equal which is less dependent on gender and there is an equal participation
and influence of genders in decision making (Hofstede, 1984). Italy scored high on masculinity
index indicating that in this society gender roles are maximized which encourages the male
performance in different levels of the organization and social life. Moreover, in Italy more men
participate in more qualified jobs than woman (Oded and Luo, 2005).
Long-term orientation Index
This dimensions is added by Hofstede (1984) for the original four dimensions. This dimension is
originally called Confucian Dynamism because of anchoring in the Confucian value system
(Oded and Luo, 2005). Long-term orientation index represents such values as thrift, persistence,
and traditional respect of social obligations (ibid). According to this culture dimension, Italy
scored low on this index (33% cited by Oded and Luo, 2005). This indicates that Italian people
tend to value traditions and social obligations which are more past or present-oriented culture.
Fons Trompenaars (1997)
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In addition to Hofstedes cultural dimension, Trompenars (1997) developed several cultural
parameters with an aim of explaining how cultural differences influence the process of
management (cited in Isaksson Emilie, 2006). These parameters are: universalism versus
particularism, individualism versus communitarianism, neutral versus emotional, specific versus
diffuse, achievement versus ascription. Several of thoses parameters share characteristics with
dimensions suggested by Hofstede (1980), but they are more developed and focus on relations
between people.
Universalism versus particularism
Universalism versus particularism, as Trompenars (1997) suggests, concerns about how rules in
organization is valued and respected. In universalistic culture rules and values are highly respected
by everyone while in particularistic culture rules are not considered as an absolute (ibid).According to the Trompenaars analysis, Italy scored high on this index (93%) which indicates that
circumstances and relationships of people influence judgments of what is good or true. This may
also indicate that Italian society is built upon universalistic culture where rules are more important
than relationships. In majority cases of business relations, legal contracts will be made and seen as
trustworthiness.
Specific versus diffuse
Specific versus diffuse parameter is related to the extent how people in different culture allow
entering their public or private space. People living in specific culture they allow people to enter
the public space but difficult to reach the private space which is reserved for close friends
(Isaksson Emilie, 2006). However, in diffuse culture the public space is rather small but when
successfully entered it can be a path towards a private space. Moreover, in specific cultures,
individuals are direct, clear, blunt, and to the point while examining the facts (Oded and Luo,
2005). Italy scored high on this culture index (91%) which makes the culture high specific
(Trompenaars and Woollians, 2005).
Achievement versus ascription
The most important parameter of Trompenars (1997) which directly related to organizational
management is that the achievement versus ascription parameter which determine factors how
peoples status are viewed and appreciated. In achievement oriented culture peoples status are
based on the achievement and personal skills while in ascription oriented culture people status are
dependent on family background, gender preferences and age advantages. Italy scored moderate
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(54%) on this culture index indicating that people emphasize attainment of position and influence
through a demonstration of expertise (Trompenaars and Woollians, 2005).
Edward T. Hall ( 1976)
Hall (1976) argues that cultures vary in terms of how contextual information is viewed and
interpreted. The context of a situation is crucial to communication, often heavily influencing not
only what is said and how it is said, but more important, how the information is perceived (David
Ralston, 1997). Hall (1976) also states that some cultures rely more heavily on context in their
perceptions and interactions with others. In high context cultures, such as China, Korea, Japan,
France, Greece and many Arab countries, what is unsaid but understood carries more weight than
what is actually written down or said (ibid). Hall (1976) argues that many cross-cultural problemscan be understood by examining differences in how context is viewed. Leaders would be well
advised to consider context in their interactions with those from a culture with a different context
(ibid).
Based on the theories, Hall (1976) developed high-context and low-context cultural framework.
According to this framework, Italy is considered as low-context culture. In low context cultures,
such as the American, Scandinavian, German, and Swiss, the focus is on the specifics of what is
written or said, and trust is gained through legal agreements (Hall, 1976). In addition, trust is relied
upon during negotiations and agreements, and personal relations are often a central part of the
interaction (ibid).
Section C
According to the analyzed cultural dimensions it can be compared to Uzbekistan in order to
understand the influence if Italian company opens its branch in Uzbekistan. So, according to the
Hofstedes power distance index, Italy is scored low on this index indicating that Italian decision
making is less centralized. In contrast, Uzbek organizational tend to be more hierarchical which is
highly affected by the Soviet Regime and Taylorism concept. This may arouse conflict between
Italian manager and Uzbek subordinate. Because Italian manager expects more frank and direct
communication, he/she believes that Uzbek subordinate can show his/her feelings overtly and there
would be more informal communication. However, Uzbek subordinate tends to be introvert. Thus,
there will be difficulties in building relationships.
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Moreover, Italy scored low on Hofstedes uncertainty avoidance index indicating that there are
few written rules and people in this culture have more willingness to take risks in order to dealing
the ambiguity. In terms of Italian manager and Uzbek subordinate, Italian manager expects more
ambition and activities to be able to make a risk in dealing with the ambiguity. In contrast, Uzbek
subordinate expects more rules and structured planning.
Italy scored low on masculinity index indicating that in this society gender roles are minimized
which encourages the female performance in different levels of the organization and social life. In
terms of female Italian manager and Uzbek subordinate, Uzbek subordinate believes that females
are less stricter than males and they can not operate the company so successfully as a man does.
However, female Italian manager expects equal participation of gender in the organization in everydepartments. Italian manager also believes that female also has the opportunity to take senior level
positions and rewards are based on the employee performances.
Based on the Trompenaars cultural dimensions, Italian culture is considered as specific where
individuals are direct, clear, blunt, and to the point while examining the facts. However, Uzbek
people tend to be more indirect and diffuse culture where public space of individuals is rather
small but when successfully entered it can be a path towards a private space. In terms of Italian
manager and Uzbek subordinate, the Uzbek subordinate is not punctual and direct as Italian
manager would expect. In fact, the conflict arises due to cultural differences in communication.
Italy scored moderate (54%) on achievement index of Trompenaars culture framework indicating
that people emphasize attainment of position and influence through a demonstration of expertise
(Trompenaars and Woollians, 2005). However, Uzbek people tend to be ascription oriented where
people respect people because of his/her age, work experience or inherited status rather than
achievements and good performance. When Italian manager establishes the company, he/she
should consider those factors in order to establish proper compensation and reward systems.
Conclusion
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In conclusion, it can be said that culture is a commonly shared beliefs and attitudes which are
transmitted through historical heritage or longer time and resistance to external influences.
Therefore, it makes it unique and complex. Cultural differences in society can be described best in
multinational companies but in domestic organizations it is considered as normal and appropriate.
Conflict in culture arises when two different individual values collides. It should be considered
how nations culture as important in workplace where individuals have different values on the
fulfillment of tasks. Therefore, societys influence on business activities is huge.
References
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