THE MANY FACES OF CULTURE: UNDERSTANDING COUNTRY AND CORPORATE CULTURE Developments in Business Simulation and Experiential Learning, Volume 25, 1998 THE MANY FACES OF CULTURE: UNDERSTANDING COUNTRY AND CORPORATE CULTURE Michael P. Fronmueller, Boise State University William A. Wines, Boise State University Holly L. Anderson, Boise State University ABSTRACT Both corporate and country culture play crucial roles in the crafting of a company’s strategies. Frequently, students encounter difficulties distinguishing the two types of culture and their impacts. This session introduces exercises that enable students to experience the differences between country and corporate culture. INTRODUCTION The importance of country and corporate cultures for the successful operation of a modem business enterprise is well documented. In the international business literature the differences between countries in the sets of norms and responses that together comprise the culture of each country have been found to play a major role in the planning, organizing, staffing, coordinating and controlling attempts of companies engaged in intemational operations (Harris & Moran, 1979). It is critical that students of international business understand these differences and the skills required to function in a multi-cultural (country differences) environment. The strategic management literature is equally adamant about the importance that the set of shared assumptions within a given business organization (corporate culture) play for the success of and operation of a company. Corporate culture can aid or hinder the development of a sustainable competitive advantage (Barney, 1986) but can also be a key obstacle to successful change (Fitzgerald, 1988). Although students generally have little problem comprehending the two constructs of country and corporate culture, they have difficulty distinguishing between the two in applied settings and not uncommonly lack the ability to tell whether a given issue is due to cultural influences or attributable to another, unrelated issue. For the past six years, we have used a set of experiential exercises in international management and strategic management or business policy courses for both undergraduate and graduate students that allow students to experience cultural differences first hand. They are based on a three step process. In step one, students are familiarized with a predetermined cultural set; step two requires negotiations between groups with different cultures; and step three is a debriefing session in which students discuss their perceptions. STEP ONE - FAMILIARIZATION WITH CULTURE In this step students are familiarized with the salient features of a pre-determined “country” culture. This is done by assigning students randomly into groups and then handing each group separate and distinct descriptors of the group’s culture. The basis for the descriptions differs depending on whether a simulated country culture or corporate culture is attempted. To simulate a country culture, groups are given descriptors of a culture that revolve around time orientation, spacial distance, importance of power differences, and degree of uncertainty avoidance. These dimensions are loosely related to Hofstede’s (1980) work and are similar to aspects of a popular international business game (BAFA- BAFA). To simulate a company’s culture, students are given descriptions of shared objects, sayings, behaviors and feelings along with relevant goal sets. This simulates the basis on which a company’s culture can become observable. 255 Developments in Business Simulation and Experiential Learning, Volume 25, 1998 In either case students are next asked to develop a brief, fictional story describing how their company or group came to be what it is today. They are asked to closely relate the story to the set of descriptors that they received. This stage tries to accomplish what in reality takes years to develop -the emergence of a cohesive culture. We have found that within a relatively short time of 3 0-45 minutes students can become immersed enough in their hypothetical culture to allow for the role-play negotiations required in the next step. STEP TWO - NEGOTIATIONS BETWEEN DIFFERENT CULTURES In this step, differences between cultures are simulated by asking each group to negotiate in a hypothetical scenario with another group. Scenarios simulate believable business situations in which groups must negotiate with each other. Generally, it is in this stage that many students become somewhat frustrated with members of the other group. That is, they experience culture conflict. We have conducted exercises in which we only manipulated either country or corporate culture and those in which we manipulated both. Time permitting, its those later simulations that allow for the most insights into the concept of culture during the third step. STEP THREE - DEBRIEFING This step is carried out in plenum with each group first describing their impressions of the process. This brings to light much of the frustrations experienced by the participants and shows why, in most cases, successful negotiations would be unlikely. The groups are then asked to present their brief stories which had served as both a cohesion building exercise in step one and as an anchor for he groups culture. At this stage the majority of students discover on their own that the causes for the perceived conflict were linked to the differences in culture. At this point we normally proceed to a discussion on coping strategies and skill sets required for managers. Our classes have had great success with this set of exercises. We suggest that they can be instrumental in allowing students to maximize comprehension of two important constructs in business education: country and corporate culture. REFERENCES Barney, J.B. (1986) Organizational Culture: Can it be a source of sustained competitive advantage?. Academy of Management Review. July, p.656. Fitzgerald. T.H. (1988) Can Organizational Culture really be managed? Organizational Dynamics, 1 7(2):5- 15. Harris, P.H. & Moran, R.T (19792 Managing Cultural Differences. Houston, TX: Gulf. Hofstede, G. (1980) Motivation, leadership. and organization: Do American theories apply abroad? Organizational Dynamics. Summer, 9(2 ):48. 256 Table of Contents Volume 25, 1998 Marketing Goes to the Movies Bringing Experiential Learning to a Principles of Marketing Course Investment Analysis Application Using In-house Spreadsheet Models SugarCoated Statistics: An Exercise for the First Day of Class Improving Undergraduate Student Involvement in Management Science and Business Writing Courses Using the Seven Principles in Action Establishment and Funding for Interuniversity / Multidisciplinary Student experiences The Prospects of Creative Teaching: A Discussion with Patricia Sanders The Simulation and Classroom Assessment Techniques Developments of Management Skill Assessment Games as Instruments of Assessment: A Framework for Evaluation The Role of Artificial Intelligence in Business Curricula Threshold Solo Competitor: A Management Simulation (V1.0) a Windows-Based. Play Alone, Total Enterprise Simulation and Assessment Instrument Toward An Understanding of One's self-concept Total Enterprise Simulations and the Internet: Improving Student Perceptions and Simplifying Administrative Workloads The Expatriate an Assignment Orientation Game An Expatriate's Nightmare: An Experiential Exercise in Coping with Overseas Assignments Analyzing Experiential Exercise: Using the Scientific Method for Problem Solving The Second Component to Experiential Learning: A Look Back at How ABSEL has handled the Conceptual and Operational Definitions of Learning Predictive Models of Learning: Participant Satisfaction of Experiential Exercises in Business Education Accelerating Moral Development through Use of Experiential Ethical Dilemmas Ethical Dilemmas to use with Business Simulations to Teach Ethics The Class Approach in Behavioral Simulation in a Business Policy/Strategic Management course: A Progression toward Greater Realism An Exploration of the Emergence of Process Prototypes in a Management Course Utilizing a Total Enterprise Simulation How Organizations Are Improving Their Performance Utilizing Electronic Commerce: Examples From The Internet The Market Access Planning System (Maps): A Computer-Based Decision Support System For Facilitating Experiential Learning In International Business An Excel Workbook For Student Planning And Interface With A Simulation Game Design Of Multi-Media Based Pedagogy For Leadership Training Panel Discussion On Using The Internet For Courses Valuing And Enhancing Teaching: Sharing Tips Via The Web The Buddy Project: A Semester Long Project Aimed At Developing An Appreciation For Diversity Enhancing The Excitement And Learning Retention In The Classroom: The Power Of Magic The Supervised Management Internship: A Job Or Learning Experience Team Ware™ An Online Moderated Class Discussion Facility And Beyond A Neophyte Distance Educator's Experience Learning Management By Practicing Management: A Report Of Significant Student Service In 1997 Integration Of Academic And Service Learning: Students' Perceptions About Its Effects And Outcomes The Value Of Incorporating A Service Learning Component Into Course Content: A Presentation And Roundtable Discussion Business Games Teach: Thoughts on the Sources of Conflicting Conclusions on their Effectiveness Antecedents Of Learning In The Simulation: A Replication Using Student Journals To Enhance Learning From Simulations Technological Change And Intertemporal Movements In Consumer Preferences In The Design Of Computerized Business Simulations With Market Segmentation Integrating The Marketing Curriculum Using Collaborative Learning Teaching Time Management In A Sales Program: The Application Of A Computer Simulation Game Adapting Interactive Computer Simulations For Content Based Esl Instruction Multimedia And Student Expectations Synthesizing Data For Media Simulations Composing A Team Health Promoting Behaviors-A Decision Making Exercise Does it really Work? An Application of the Group Interaction Framework Administering the MIT Beer Game: Lessons Learned A Paperless Economy? Instructing Students on the Aspects of Successful Electronic Commerce Maximizing Learning Gains in Simulations: Lessons from the Training Literature Observing General Ability in a Total Enterprise Gaming Simulation FReach Teach: A Computer-Based System for Teaching Advertising Media Planning An Integrated Business Instruction System An Experiential Exercise you can Tinker With Experiential Exercises or Computer Simulations? Cash Flow Statements: Are They Important in Business Simulations? Holistic Cognitive Strategy in a Computer-Based Marketing Simulation Game: An Investigation of Attitudes Towards the Decision-Making Process Barnga: A Game on Cultural Clashes The Many Faces of Culture: Understanding Country and Corporate Culture Students' View of the Use of Business Gaming in Hong Kong Assessing General Management Interest What is the Future of Business Gaming? Starting a Small Music Trivia Business Exercise and Other Innovative Icebreakers An Integrated Approach to Behavioral Skill Development Career Focus: A Student and Business Learning Experience The Use of Concept Mapping in Teaching Strategic Management An Experiential Approach to Developing Mission Statements Business Games in Brazil-Learning or Satisfaction A Simulation within a Simulation: Job Layoff's and Emotional Reactions