• Cooperation vs. competition. Some societies encourage cooperation between people. Others encourage competition between their people
Business & ManagementOperationsAcademic Paper
What is meant by the term culture? In what way can measuring attitudes about the following help to differentiate between cultures: centralized or decentralized decision making, safety or risk, individual or group rewards, high or low organizational loyalty, cooperation or competition? Use these attitudes to compare the United States, Germany, and Japan. Based on your comparisons, what conclusions can you draw regarding the impact of culture on behavior?
SOLUTION
Culture is acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior. Culture can be differentiated by the attitudes displayed or performed in various subcultures within a country. These attitudes are:
• Centralized vs. decentralized decision making. In some societies, top managers make all-important organizational decisions. In others, these decisions are diffused throughout the enterprise, and middle- and lower-level managers actively participate in, and make, key decisions.
Attitudes will vary because of cultural differences in the U.S., Germany, and Japan. In the U.S. management will often use centralized or decentralized authority depending on the organization philosophy of management. A more proactive approach is the use of a decentralized approach in the U.S. Germany has a more centralized bureaucratic and formal organization control. Management in Japan is more group-oriented in making decisions. This will be a more decentralized approach to management.
• Safety vs. risk. In some societies, organizational decision makers are risk-averse and have great difficulty with conditions of uncertainty. In others, risk taking is encouraged, and decision making under uncertainty is common.
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The attitude toward safety vs. risk varies from one firm to another in the U.S. In Germany safety and risk are important concerns because of labor unions. The attitude of safety and risk in Japan will be an important concern of the group. Group norms will influence management decision making.
• Individual vs. group rewards. In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses and commissions. In others, cultural norms require group rewards, and individual rewards are frowned upon.
The attitude in the U.S. has traditionally focused on individual rewards. More and more companies are moving toward group rewards and self-managed teams in the U.S. In Germany there is a combination of individual and group rewards based on a corporate culture and the philosophy of management. In Japan the attitude or focus is based on group rewards. Quality circle applications are used to reward groups for the introduction of new cost-saving techniques.
• High or low organizational loyalty. In some societies, people identify very strongly with their organization or employer. In other, people identify with their occupational group, such as engineer or mechanic.
The attitude of organizational loyalty is an important issue facing U.S. firms. Traditionally it has been individual loyalty; however, management has to earn and then maintain a high degree of loyalty. Many firms experience a lack of commitment; therefore, a low degree of individual loyalty to the organization. In Germany the Western influence has created a great degree of stress; therefore, many firms have a low degree of loyalty from individuals. In Japan there is a high degree of organizational loyalty derived from the group. The Japanese culture is very important; therefore, a high degree of organization loyalty is extremely important.
• Cooperation vs. competition. Some societies encourage cooperation between people. Others encourage competition between their people.
In the U.S., employees and labor unions are displaying more cooperation; however, they remain extremely competitive in the work environment. Competitiveness ranks very high with individuals vs. groups in the U.S. In Germany the attitude of cooperation and competitiveness varies from organization to organization. Labor unions and operating employees are extremely competitive in German operations. In Japan, the work group will attempt to be more cooperative with management to achieve company objectives. Cooperation and a commitment to the job until the task is complete are important operating norms in Japan.