brazilian National Culture Org Culture

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Brazilian National Culture, Organizational Culture and Cultural Agreement: Findings from a Multinational Company Adriana V. Garibaldi de Hilal International Journal of Cross Cultural Management 2006; 6; 139 DOI: 10.1177/1470595806066325 The online version of this article can be found at: http://ccm.sagepub.com/cgi/conte http://ccm.sagepu b.com/cgi/content/abstract/6/2/139 nt/abstract/6/2/139

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Cultural Perspectives

CCM

International Journal of

2006 Vol 6(2): 139–167

Cross Cultural Management

Brazilian National Culture, Organizational Culture and Cultural Agreement Findings from a Multinational Company

Adriana V. Garibaldi de Hilal Federal University of Rio de Janeiro – COPPEAD (Graduate School of Business), Brazil The present study looks into the organizational culture of a Brazilian company, concentrating on its main Brazilian branches as well as on its European, Latin American, Central American, North American and Asian branches, making a total sample of 36 cities and 1742 respondents. Results indicate the influence of national culture on organizational culture, as the dimensions found clearly reflect the ambiguity and double-edged ethic characteristic of Brazilian culture. This study also shows the importance of hierarchy, and of relational networks, which stresses the relevance of the cultural element in organizational structure and functioning. In brief, understanding the double-edged ethic that governs Brazilian culture helps us understand u nderstand apparently different, ambiguous or even contradictory behaviors reflected in the organizational culture practices of a Brazilian company with international operations. Moreover, there is little empirical research that directly deals with what combination of factors makes individuals agree or disagree over their cultural viewpoints. Consequently, we consider consider that this study attempts to deal with that issue as the cultural clusters were obtained using a multivariate approach, using demographic variables and the identified organizational dimensions. Thus results suggest t he organizational context may increase or reduce the probability of nationality affecting the cultural agreement of group members. ABSTRACT ABSTRACT

• cross cultural research • cultural agreement • Latin American multinational • national culture • organizational culture

KEY WORDS WORDS

During the 1980s and 1990s, culture became a widely discussed subject in organizations, when western organizational scientists

became interested in the culture of their countries and on the links between culture and organizational forms of life (Morgan, Copyright © 2006 SAGE Publications www.sagepublications.com DOI: 10.1177/1470595806066325

Downloaded from http://ccm.sagepub.com at University of Oxford on July 21, 2007 © 2006 SAGE Publications Publications.. All rights reserved. reserved. Not for commercial commercial use or unauthorize unauthorized d distribution. distribution.

Cultural Perspectives

CCM

International Journal of

2006 Vol 6(2): 139–167

Cross Cultural Management

Brazilian National Culture, Organizational Culture and Cultural Agreement Findings from a Multinational Company

Adriana V. Garibaldi de Hilal Federal University of Rio de Janeiro – COPPEAD (Graduate School of Business), Brazil The present study looks into the organizational culture of a Brazilian company, concentrating on its main Brazilian branches as well as on its European, Latin American, Central American, North American and Asian branches, making a total sample of 36 cities and 1742 respondents. Results indicate the influence of national culture on organizational culture, as the dimensions found clearly reflect the ambiguity and double-edged ethic characteristic of Brazilian culture. This study also shows the importance of hierarchy, and of relational networks, which stresses the relevance of the cultural element in organizational structure and functioning. In brief, understanding the double-edged ethic that governs Brazilian culture helps us understand u nderstand apparently different, ambiguous or even contradictory behaviors reflected in the organizational culture practices of a Brazilian company with international operations. Moreover, there is little empirical research that directly deals with what combination of factors makes individuals agree or disagree over their cultural viewpoints. Consequently, we consider consider that this study attempts to deal with that issue as the cultural clusters were obtained using a multivariate approach, using demographic variables and the identified organizational dimensions. Thus results suggest t he organizational context may increase or reduce the probability of nationality affecting the cultural agreement of group members. ABSTRACT ABSTRACT

• cross cultural research • cultural agreement • Latin American multinational • national culture • organizational culture

KEY WORDS WORDS

During the 1980s and 1990s, culture became a widely discussed subject in organizations, when western organizational scientists

became interested in the culture of their countries and on the links between culture and organizational forms of life (Morgan, Copyright © 2006 SAGE Publications www.sagepublications.com DOI: 10.1177/1470595806066325


140

International Journal of Cross Cultural Management 6(2)

1997) in order to explain the superior perfor- enaars, 1993), Hofstede (1997, 2001) is one of mance of Japanese companies as compared the best-known authors. He has an intermeto North American ones. Some authors diary position and argues that both methodargued that the key to competitiveness lay in ological approaches have limitations and, as the possibility of organizational culture (OC) a consequence, should be seen as complechange (Deal and Kennedy, 1982; Ouchi, mentary. 1981; Pascale, 1981; Sathe, 1985), with the According to Hofstede (1997), the core of first specific studies dating back to the begin- OC is in the practices shared by its members. ning of the 1970s (Clark, 1972; Pettigrew, Consequently, national cultures would differ 1973) and Schein (1985) formally articulating mainly on their basic values, while OCs the conceptual framework to analyze and would differ more superficially in terms of intervene in the culture of organizations. their practices, which would be the visible Culture is treated as a variable in the parts of culture and could be manageable perspective of popular authors such as Peters within certain limits. and Waterman (1982), Deal and Kennedy However, most studies on OC have con(1982), and Schein (1985). On the other sidered the organization as a whole (Martin, hand, culture is treated as a metaphor in the 1992). This kind of research emphasizes symbolic perspective expressed in the work of the existence of a unique general OC and anthropologists like Geertz (1993), whose focuses on harmony and organizational focus is on meaning. Other debate focuses on consensus, instead of on conflict and subthe possibilities or not of measuring OC. cultural consensus (Martin, 1992). Although Organizational symbolists advocate the most researchers accept the existence of dense description of organizations, involving organizational subcultures (Trice and Beyer, qualitative in-depth case studies, as opposed 1993), they have emphasized the homogeneto qualitative but thin descriptions based on ity of culture and its cohesive function instead interviews with managers. However, it can of its differentiation potential (Gregory, be argued that thick descriptions are difficult 1983). to replicate and that the result is highly subGiven the perceived need for further jective, as ethnographic researchers consider research within organizations that takes into that objectivity in organizational research is a account clusters of ideologies, cultural forms myth (Ott, 1989). and behaviors that identify groups of people Within the quantitative approach, on the within organizations (Trice and Beyer, 1993), other hand, the biggest advantage of the use the present study adopted a sub-cultural of survey techniques to study OC is the fact perspective, perceiving the organization as that the same methodology can be applied to composed by a multiplicity of different subdifferent organizations in the same way, thus cultures. This perspective emphasizes the providing a basis for comparisons or general- existence of differences, although it does not izations. One of the drawbacks is the fact deny the possibility of the existence of conthat there is no protection against over- sensus in relation to certain values (Martin, generalization (Denison, 1984). Those who 1992). A critical factor that defines the relaprefer qualitative research argue that cultural tionship and the existence of sub-cultures is processes are the result of unique social con- how much they reflect their own particular structions and that they are, therefore, values. Here, possibilities offer a spectrum impossible to measure with quantitative stan- that can include great differences (which can dardized measures (Cooke and Rousseau, imply deeply rooted conflicts and culture 1988). Among the intercultural scientists (e.g. clashes) as well as groups that share similar Laurent, 1983; Maznevski, 1994; Tromp- values and have similar ways of perceiving


Garibaldi de Hilal: Brazilian Culture and Cultural Agreement 141

and interpreting the organizational context events (which would foster inter-group cooperation). According to Kilduff (1993), organizational members from different nationalities will probably tend to develop specific cultural perspectives while they modify and transform the cultural routines of the organization so as to adapt them to their own cultural bias, possibly using different practical approaches to deal with organizational problems. Thus the complexity of the internal environment of organizations with international operations increases the probability that their culture tends to differentiation; that is, multiple systems of meanings, and therefore of practices, tend to coexist simultaneously. The different systems of meanings, or the different sub-cultures, usually greatly affect the operations of those organizations. Groups with different cultural viewpoints tend to interpret and to respond to the same organizational events in different ways – accepting, modifying, questioning or even ignoring the rules and procedures that emanate from the dominant culture (Jermier et al., 1991). Additionally, ethnocentrism, which is the tendency to evaluate others according to our own cultural point of view (Rocha, 1991), increases the probability of misunderstandings that can result in undesirable conflict levels, thus affecting the performance of the organization (Gregory, 1983). Moreover, in a relational society such as the Brazilian one, we have to consider the influence of relational networks on the organizational culture and sub-cultures. Within the relational perspective interaction among actors can lead to a certain homogeneity of attitudes and practices, thus significantly influencing the existence of cultural agreement (Burkhardt, 1994), and therefore helping to define OC clusters. Consequently, based on Hofstede’s framework for OC, the first purpose of this study was to identify the OC dimensions (i.e. values and practices; where practices involve sym-

bols, rituals and heroes) of a Brazilian company, concentrating on its main Brazilian branches as well as on its European, Latin American, Central American, North American and Asian branches. The second purpose of this study was to determine if values and practices are uniform in the sampled organization or if there are different organizational culture clusters.

Organizational Culture Authors such as Schein (1992) and Pettigrew (1985) present OCs as implying shared values, and confusion derives from the fact that such literature does not make a clear distinction between the values of the leaders and those of the other members of the organization. Hofstede (1997) defines OC as the collective programming of the mind that distinguishes the members of an organization from those of another, and he argues that the values of the founders and of the main leaders undoubtedly shape OCs, but the ways in which these cultures affect the ordinary members of the organization would be limited to shared practices. Thus the values of founders and leaders would become the practices of the other members of the organization. In brief, what an individual has to learn when he or she joins an organization is mainly a question of practices, as most values are developed and learned in the family and at school. Hofstede et al. (1990) empirically derived six independent dimensions that describe the numerous organizational practices: (1) process oriented versus results oriented; (2) employee oriented versus job oriented; (3) parochial versus professional; (4) open system versus closed system; (5) loose control versus tight control; and (6) normative versus pragmatic. These six dimensions are descriptive but not prescriptive: no position in each of the six dimensions is intrinsically good or bad. What is good or bad depends on each case, on what is desired for the organization and on the

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strategic options. Moreover, Hofstede pointed plantations were controlled by patriarchs out that the OC dimensions he identified who exercised nearly absolute authority over would not necessarily apply to any kind of their dominions. According to Buarque de organization in any country. OCs are gestalts Holanda (1995), the colonial legacy also and their knowledge can only be totally includes the origins of the traditional Latin appreciated by insiders. However, a concep- American personalism,1 the lack of social cohetual framework allows us to make significant sion and the looseness of the institutions. comparisons between cultures of different Additionally, the Tocquevillian legacy of organizations, or between the sub-cultures of comparative analysis influenced a number of different parts of the same organization. 20th-century thinkers such as Louis Dumont (1980). Dumont’s studies focused on two key dimensions for comparing values and patBrazilian Culture Overview terns of social relations across societies: hierBrazil is the only other country in the western archy and equality, and holism and individualism. hemisphere that has the continental proporIn the ascribed form of hierarchy used by tions, the regional contrasts and the demo- Dumont, one’s social position is assigned at graphic diversity that can be compared to the birth or is limited by one’s family position. In US and Canada. a traditional hierarchical society, laws apply According to Hess (1995), Brazil, in spite differently to different groups of people. Of of its western-like institutions, is a country course, there are remnants of the ascribed where western culture has mixed and mingled kind of hierarchy even in the most modern of with non-western cultures for centuries. This societies, but the legal recognition of such mixture of western and non-western, as well hierarchy is considered an affront to the as modern and traditional, is what Da Matta fundamental value of equality. (1997a) has called the Brazilian dilemma , or The concepts of holism and individualism what Brazilians call the Brazilian reality. Brazil are closely related to those of hierarchy and is a country where institutions operate equality. In a hierarchical society everyone through personal relationships as much as occupies a definite position, and people’s general rules. Diversity is not the best word for identity is rooted in their association with a describing Brazil and Brazilians; mixture is particular position in society. better. Brazil is a nation of mixed races Da Matta’s approach to Brazilian culture (miscegenation), religions (syncretism), and departs from these key concepts as developed cultures (diasporas, borderlands). by Dumont. Da Matta uses the term persons In cultural anthropology and studies of to describe the category of identity, in which Brazilian national culture, Da Matta (1997a, one is defined by one’s position in the family b) has influenced a number of scholars (such or in a hierarchically ordered social group. In as David Hess, 1995; Roberto Kant de Lima, contrast, in an individualistic society identity is 1995; Livia Neves Barbosa, 1995; Rosane rooted in one’s own life history and choices Prado, 1995; and Martha de Ulhoa Carvalho, and people are individuals linked by the rules 1995) with his framework for interpreting of the game, which are assumed to apply Brazilian culture. equally to all (or universally). Although in an Hess (1995) describes Brazil as the product individualisti c society people certainly have of a particular colonial legacy that includes a personalistic loyalties, one’s identity as an class of wealthy landowners who supported a individual rather than as a person tends to highly centralized Portuguese state. In turn prevail. Likewise, in a personalistic or relational the state imposed a latifundia , or plantation society, there are domains of society that agricultural system in Brazil, where the operate according to individualistic and egal-



itarian principles, but, in general, personal loyalties tend to prevail. Da Matta argues that Brazil is somewhere between the two ideal polar extremes (hierarchical and holistic, and egalitarian and indi vidualistic). He rejects the model of two Brazils , in which a traditional culture located in the lower classes of the cities and in the rural areas is opposed to a modern Brazil in the upper classes and in the big cities, showing how in societies like Brazil, Dumont’s distinctions can be applied simultaneously throughout the society. Instead of working with an either or model, he opted for a both and model, as both tendencies are present in any number of social groups, institutions and practices. Thus Brazilians are constantly negotiating between a modern, egalitarian code and a traditional one. In some situations, modern practices predominate. However, frequently, hierarchical and personalistic/relational practices encompass modern ones. Thus Brazil is neither modern nor traditional but both. Da Matta also developed an analysis of intermediary terms or symbols, as in Brazil there is a tendency to move toward a middle ground of mediation and ambiguity. Those mediating terms become sites for the conflict of values and the encompassment of the modern by the traditional. This seems to apply to Latin American countries as a whole, as Latin American history and social structure seem to imply. For example, the injustices of the Latin American authoritarian and hierarchical system are blunted by the existence of a number of mediating institutions: extended kin networks, nepotism, the famous Brazilian jeitinho or the Argentine gauchada (the art of bending rules), and all sorts of social practices that would appear corrupt in North America and Western Europe. In short, personal relationships form the flip side of official hierarchies. Personalism is more than a cultural system that gives people a social address in the hierarchical society; it is also a resource that people can use to get around the official rules of the

hierarchical society. Of course, personalism does not work the same way for everyone. The networks of the weak are usually smaller and less influential. As a result, although personalism can be used as a resource to sub vert hierarchy, as an overall system it ends up reproducing the general hierarchical order (Hess, 1995). Perhaps the most well known of Da Matta’s studies of mediation is his discussion of the street and the home (1997a). The space of the home is identified with the hierarchical and relational/personalistic moral world, whereas that of the street is egalitarian and indi vidualistic. Of course, in Latin America, and especially in Brazil, the two worlds of home and street interact considerably. As a social space, the home , and institutions modeled on the home , such as the workplace, are places where relations among family members and servants or among superiors and subordinates institute hierarchies of race, class, age and gender. The street is a different sort of place where those hierarchies are suspended. The street is the place where the egalitarian and individualistic principles of the marketplace or legal system are in operation. The home is the place where people find their identity, while the street is the place of indi vidual anonymity. In certain situations the home encompasses the street and all matters are treated in a personal, familiar domestic way; in others the street encompasses the home : the domain of personal relations is totally submersed and the axis of impersonal laws and rules prevails. There is, therefore, a double-edged ethic that operates simultaneously and that determines different behaviors that apply to the street (where behavior is free of the sense of loyalty, free of the meaning of us , ruled by the criteria of individualism, by laws and by the rules of the market) and to the home (where behavior is ruled by personal relations, the sense of loyalty and emotions, by reciprocity and friendship). In brief, in a dynamic sense, behaviors continually oscillate in Brazil in particular


144


and in Latin America in general: people can express apparently different or even contradictory opinions and behaviors depending on whether they position themselves in the street or in the home .

The survey sample was defined in two stages. For the first stage, involving the selection of the cities or units where the data were collected, we used intentional sampling to cover the five Brazilian geographical areas. The initial intention of using stratified probabilistic sampling in the Brazilian units had to Methodology be discarded because the data collection had The methodology used in this study was to be tailored to the needs of each regional based on a research design that combined division to cause the minimum interference quantitative research with a qualitative in the work flow. Consequently, in each of exploratory procedure. the Brazilian units we selected an intentional The research took place in a Brazilian sample of, on average, 74 employees (includcompany that, owing to issues of confiden- ing, on average, 37 managerial employees tiality, will be called company XYZ. The and 37 non-managerial employees per unit). main criterion used in its selection was the In the European, Latin American, Central fact that it has approximately 81,500 American, North American and Asian units, employees, thus allowing us to replicate the as there were fewer employees per functional research design used by Hofstede et al. (1990) category, the research took the form of a in their OC study. The field research was census and hence included all the managerial done in 36 cities, including 17 in Brazil 2 as and non-managerial employees present at well as the international branches located in the time of the survey. The total surveyed Europe (namely Milan, London, Securities sample was of 1968 respondents. After elimiUK (also in London), Lisbon, Madrid, Paris, nating the questionnaires that were annulled Frankfurt, Vienna and Amsterdam); in Latin or not returned, we were left with a final America (namely Buenos Aires, the capital sample of 1742 respondents (including, on city of Argentina, Asuncion and Ciudad del average, 33 managerial employees and 33 Este – both cities located in Paraguay – non-managerial employees per Brazilian Santiago, the capital city of Chile and La unit). Paz, the capital city of Bolivia); in Central The survey consisted of 131 pre-coded and North America (namely Panama, Grand questions3 plus an open question. Questions Cayman, Miami and New York); and in Asia were extracted from various publications on (namely Tokyo). Hofstede’s questionnaire on OC. However, The qualitative exploratory research certain questions were developed based on aimed at collecting information and trying to the results of the qualitative phase of the gain some insights about the specific features study. The questionnaire also included five of XYZ in order to adjust the contents of the questions on demographics: sex, age, number questionnaire to the specificities of this orga- of years working for the company, educanization, and as input for the interpretation tional level and nationality. To assure that of the quantitative data. It consisted of six the questionnaire mostly reproduced an one and a half hour in-depth semi-structured instrument already used by Hofstede et al. interviews conducted in Portuguese by the (1990), Geert Hofstede was personally conresearcher. For the interviews, six man- sulted and directly involved. agerial level employees were selected using as The anonymous self-administered quesselection criteria the fact that they were tionnaire was prepared in several versions: reputed to be communicative and had the Portuguese, English, Spanish, Dutch, German, necessary experience and knowledge. Italian, French and Japanese. Following



Adler (1982) we used back-translation. After (57 questions on values; 61 on perceived being translated, the questionnaire was pre- practices and typical-member scores; and 13 tested with a small group of retired XYZ on reasons for promotion and dismissal) and employees to check that the understanding conducted separate factorial analyses for was the desired one. each category. As the ecological correlations Following Robinson (1950) and Shweder tend to be stronger than individual correla(1973), in order to obtain etic or comparable tions we expected to find high percentages of OC dimensions we prepared an ecological explained variance. In order to avoid giving matrix, calculating the mean of each item or undue attention to trivial things in ecological variable for each of the 36 units.4 Subse- factorial analysis, the number of factors quently, we applied ecological factor analysis should be fewer than the number of cases (principal component) with orthogonal vari- and fewer than what is technically possible max rotation to provide a factor solution based on eigenvalues larger than 1, only explaining the maximum share of variance taking into account variables with loadings to the fewest number of factors. Moreover, higher than 0.5 or 0.6. ecological factor analyses are characterized Then the scores of each of the 13 identiby flat matrixes (matrixes with fewer cases fied dimensions (4 on values, 6 on practices than the number of variables).5 However, the and 3 on heroes) were put in a 0–100 scale original database had in fact 1742 respon- using the formula: Final score (0,100) = (origidents, and not just 36 cases, thus being con- nal score × 50 / 3.090245) + 50 (in order to sidered adequate using Hofstede et al.’s have approximately 99.9% of the observa(1990) criterion. tions within the interval of the normal curve). Considering the fact that the question- Following this scores were ranked to better naire mostly reproduced an instrument visualize the relative position of each unit in already used by Hofstede et al. (1990) and relation to the others (with 1 indicating the that the small modifications introduced did highest score and 36 the lowest). It should be not affect its design or any of the variables noticed that three scores presented values held to be key by Hofstede, we considered outside the 0–100 range, and were considthat the constructs were already validated. ered as outliers: namely Amsterdam with a Moreover, internal consistency was also veri- score for factor V3 (work centrality) of –12; fied based on the existing literature (such as Madrid with a score for factor P3 (indiBlake and Mouton, 1964; Burns and Stalker, vidualistic × relational) of –19; and, Frankfurt 1961; and Peters and Waterman, 1982). It with a score for factor V4 (need for survival) should be noticed that the six practice of 106, indicating a strong relationship dimensions identified by Hofstede et al. directly or inversely (depending on the value (1990) together explained 73% of the vari- being positive or negative) linked to the ance. meaning of the corresponding factor. The first step was to calculate the 131 × Next we calculated the product-moment 131 product moment correlation matrix of correlation matrix of the 13 dimensions plus the 20 mean scores for each possible pair of the 5 demographic variables for the 36 units, questions, verifying that the matrix was in order to identify significant correlations at appropriate for multivariate analysis as, on the .05 level. In order to identify clusters of average, it presented mean correlations cultural agreement we submitted the 13 OC between the variables. dimensions plus the 5 demographic variables For analytic purposes we followed Hof- for the 36 units to a hierarchical cluster stede et al.’s (1990) recommendations. First, analysis, using Ward Method and square we divided the questions into three categories Euclidean distance. From the resulting


146


dendrogram we selected four clusters. To the percentage of employees originally from explain the main features of each cluster we the country where the unit is located. Thus used the option reports – case summaries (SPSS the composition of local as opposed to 11.0 program), computing, for each cluster, Brazilian employees in the non-Brazilian the minimum, maximum and mean value of branches has to be taken into account when each of the 13 OC dimensions and of the 5 analyzing the value, practice and hero demographic variables. dimensions. Table 1 indicates the approxiFinally, in order to verify if the identified mate percentages of local and Brazilian clusters were in fact significant, we submitted employees in each of the non-Brazilian the original 131 variables (except the demo- branches. Moreover, very few of the graphic variables as they had already been Brazilian employees belong to headquarters used in the cluster analysis), to Multiple – usually only the top managers – while all Discriminant Analysis – MDA – stepwise the others are usually hired locally according procedure and Wilks Lambda Method, in to local regulations, and are hardly ever spite of this involving a certain degree of transferred between branches. circularity. Value Dimensions

Results The first purpose of the analysis was to identify the OC dimensions (i.e. values and practices, where practices involve symbols, rituals and heroes). The second purpose of this study was to identify clusters of cultural agreement. Based on the 131 survey pre-coded questions, the 131×131 product-moment correlation matrix showed that values correlated with other values and also with practices; perceived practices and typical-member scores correlated among each other; and the reasons for promotion and dismissal correlated among each other, but also with other items. Before analyzing the value, practice and hero dimensions a word of caution is necessary. In the Brazilian branches (PC4 to PC20), almost 100% of the employees are Brazilian and the vast majority are local, from the region where the unit is located. Exceptions are PCs 18 and 19 (namely Campo Grande and Cuiabá in the CenterWest region of Brazil) that only have 40% and 50%, respectively, of local employees, the rest belonging to the other Brazilian regions. However, the same situation is not necessarily true of the non-Brazilian branches, where the local employees reflect

We obtained the following four independent factors that together explained 52.41% of the variance: V1 – Need for security V2 – Need for authority V3 – Work centrality (the importance of work) V4 – Need for survival. Tables 2 to 5 show the variables with loadings approximately higher than 0.50 or 0.60 that were considered to explain each factor. It should be noticed that items with negative loadings were reworded negatively. Factor V1 – need for security – which is a combination of collectivism and elements of uncertainty avoidance (see items in Table 2) shows that in relational societies, people are part of personal networks from which they derive their identity, thus justifying the importance given to good physical working conditions, to having training opportunities, to cooperation between co-workers and to having a good relationship with the hierarchical superior. On the other hand, relational and hierarchical societies usually justify the fact that it is not considered important for employees to be consulted by their direct superior in decisions, or to have the freedom to adopt their own approach to work.


Garibaldi de Hilal: Brazilian Culture and Cultural Agreement 147 Table 1

Percentage of local and of Brazilian employees per branch

PC

Unit

1 2 3 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Santiago Asuncion Buenos Aires Ciudad del Este La Paz Panama Grand Cayman Miami New York Tokyo London Securities UK Lisboa Madrid Paris Milan Frankfurt Vienna Amsterdam

Table 2

% of local employees

% of Brazilian employees

90 93 88 93 90 76 20 19 28 29 58 36 88 45 64 86 75 50 85

10 7 6 7 10 18 40 70 42 62 35 55 12 55 18 14 25 40 15

% of other origin

6

6 40 11 30 9 7 9

18

10

Total % 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

V1 – Need for security (high)

Code

Loading

OT9 OT15 OT19 CG17 OT8 OT7 OT20 OT11 CG10

0.840 0.829 0.809 0.740 0.734 0.707 0.693 0.677 0.670

CG23 CG28 OT5 OT4 CG21 FV6 CG22 CG16

0.665 0.648 0.633 0.626 0.624 0.597 0.593 0.568

Description Being consulted by direct superior in his or her decisions not important Having an element of adventure and variety in the job not important Having training opportunities important For young people to be critical of their teachers is all right Working with people who cooperate well with one another important Having freedom to adopt your own approach to job not important Having good fringe benefits important Having opportunities for high earnings important The employee that quietly does his or her duty is not one of the greatest assets of an organization Both parties compromising a bit best resolves conflicts with opponents Large corporation is a more desirable place to work than small company Having good working relationship with superior important Having good physical working conditions important People like work Would continue working if did not need the money Parents satisfied when children become independent Good personal relationships not more important than high income


148

International Journal of Cross Cultural Management 6(2) Table 3

V2 – Need for authority (high)

Code

Loading

FV1 CG1’9 CG6 OT12 FV2 CG9 CG15 OT10 OT1 OT13 FV4 OT2 CG5

0.723 0.710 0.689 0.664 0.660 0.651 0.633 0.633 0.628 0.610 0.599 0.577 0.564

OT18

0.552

OT6

0.520

Table 4

Does not prefer consultative/participative manager Rules should not be broken Decisions by individuals are usually of higher quality than group decisions Serving your country important Own manager autocratic or paternalistic Management authority should not be questioned It is often necessary to bypass hierarchical lines Making contributions to success of organization not important Having sufficient time for personal and family life not important Living in an area desirable to you and family not important Subordinates frequently afraid to express disagreement with superiors Having challenging things to do not important Main reason for having hierarchical structure is that everyone knows who has authority over whom Working in a well defined work situation where requirements are clear is important Having security of employment important

V3 – Work centrality (high)

Code

Loading

CG8 CG26 CG18

0.818 0.679 0.638

CG20 0.627 OT16 0.620 CG12 0.599 FV7 0.580 OT14 0.525 OT11 0.520 2nd loading

Table 5

Description

Description Parents should stimulate their children to be best in class Having a job you like not more important than having a successful career The individual who pursues his or her own interest makes the best possible contribution to society as a whole When people fail it is often their own fault Working in a prestigious and successful company important Competition between employees does not do more harm than good Feel proud working for this organization Having opportunities for advancement to higher level jobs important Having opportunities for higher earnings important

V4 – Need for survival (high)

Code

Loading

CG25 FV5 CG1 CG27 CG3 CG7

0.618 0.607 0.557 0.528 0.516 0.509

Description Even a lousy job is better than no job at all Intend to continue working for this organization until retirement Most people can be trusted One’s job is more important than one’s leisure time Most organizations would be better off if conflict could be eliminated forever A good manager should have precise answers to most of the questions that subordinates may raise about their work



The need for security also justifies the fact that having an element of adventure and variety in the job is not important, that a large corporation is a more desirable place to work than a small company, that having good fringe benefits and opportunities for high earnings is important and that compromise is the best way to resolve conflict with opponents. However, the items that state that the employees would continue working even if they did not need the money, that parents should be satisfied when children become independent, that people like work and that good personal relationships are not more important than a high income, all typical of individualistic and capitalistic modern societies, show an apparent contradiction with the high need for security. In fact those statements are representative of the traits of duality and ambiguity usually present in Latin American societies. In connection with V2 – need for authority (Table 3) – which clearly relates to power distance, the following comments are appropriate. The fact that it is often necessary to bypass the hierarchical lines fits the famous ‘ jeitinho brasileiro’ or ‘ gauchada argentina ’ ; that is, the Latin way of bypassing rules in order to get things done, typical of relational societies where excessive formalism is bypassed, in practice, alleviating pressures and emphasizing the importance of personal relationships. That is in apparent conflict with the item that states that rules should not be broken, typical of hierarchical societies. However, those statements are representative of the traits of duality and ambiguity usually present in Latin American societies. The item that states that making a real contribution to the organization’s success is not important shows a vision of the organization as the ‘street’ in opposition to the ‘home’. According to Da Matta (1997a), we live in a society where there is a permanent state of confrontation between the public

world of universal laws and the market and the private universe of the family, relatives and friends. Additionally, in connection with the preferred and perceived type of manager, which includes the typology of autocratic, paternalistic, consultative and participative manager (key element of the classical power distance dimension) our study indicates a clear preference for the autocratic and paternalistic types. However, careful analysis of the scores of the 36 units makes us realize that, while those statements would be mainly valid for the other Latin American branches (which have the highest scores and therefore a higher need for authority), the same does not apply to any of the Brazilian units, where the scores are consistently below the midpoint of the scale (50), indicating that both the preferred and perceived managers tend to be consultative or participative. Moreover, it is worth mentioning that sometimes the limited experience of the respondents can influence their perception of the type of manager they in fact have. One also has to consider that management training courses normally glorify consultative or participative management as being superior and more modern rather than more autocratic or paternalistic management styles, not considering the cultural profile of the audience. This could suggest the existence of consultative or participative rituals, without necessarily implying the implementation of managerial models that are actually consultative or participative. From this perspective, consultative or participative management styles might be reduced to a ritualistic representation of participation just because they are perceived as the politically correct discourse by the managerial establishment. The items that state that decisions by individuals are usually of higher quality than group decisions, that management authority should not be questioned, that subordinates are frequently afraid to express disagreement with their superiors and that the main reason for having a hierarchical structure is that


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Value scores and rankings

PC

V1

V2

V3

V4

RV1

RV2

RV3

RV4

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

69 70 75 64 66 61 61 65 61 60 62 60 56 60 61 51 63 66 63 61 41 37 36 31 43 45 15 38 28 32 23 17 32 43 48 36

88 83 91 45 40 38 30 42 39 45 41 39 28 37 37 40 49 36 41 31 72 53 63 45 41 70 57 53 56 58 44 35 49 51 76 58

38 53 45 50 55 52 40 32 43 57 54 45 48 64 60 78 52 53 59 54 67 49 37 44 33 72 70 63 55 51 49 53 52 16 68 –12

33 60 42 47 59 48 55 32 41 40 62 47 43 59 46 47 46 57 36 43 56 53 42 75 106 44 51 48 40 35 45 13 64 74 77 35

3 2 1 7 5 14 12 6 13 18 10 16 19 17 15 20 8 4 9 11 25 27 29 32 24 22 36 26 33 30 34 35 31 23 21 28

2 3 1 17 26 29 35 21 28 19 23 27 36 30 31 25 16 32 22 34 5 13 7 18 24 6 10 12 11 8 20 33 15 14 4 9

31 16 26 22 12 20 30 34 29 10 14 27 25 6 8 1 18 17 9 13 5 24 32 28 33 2 3 7 11 21 23 15 19 35 4 36

34 7 27 19 9 16 12 35 28 29 6 18 24 8 20 17 21 10 31 25 11 13 26 3 1 23 14 15 30 33 22 36 5 4 2 32

Note : R indicates the ranking of the factor.

everyone knows who has authority over whom are typical of societies with high power distance, justifying clear authority lines and traditional hierarchy. Factor V3 – work centrality – which clearly relates to masculinity (see items in Table 4), links the importance given to work-

ing in a prestigious company with icons of modern capitalistic societies, such as the value attributed to competitiveness (parents should stimulate their children to try to be the best in class, competition between employees is not harmful, the importance attributed to one’s career, and the fact that people’s failure



is considered their own fault). This symbiosis suggests that the desired values of work and competitiveness are inscribed in the relational universe, in permanence and tradition, where the prestige of the organization grants prestige to its members, being the basis of their identification system. Factor V4 – need for survival (Table 5) – which contains other elements of uncertainty avoidance, shows how in relational and traditional societies (where employees intend to continue working for the organization until retirement and where most people can be trusted), modern capitalistic values are encompassed (namely the item that states that one’s job is more important than one’s leisure time). Moreover, the fact that even a lousy job is better than no job at all clearly indicates the specific difficulties of the labor market, frequently perceived as permanent. The scores and rankings of Factors V1 to V4 are in Table 6. In connection with V1 – need for security – it should be noted that the apparent contradiction between the scores of Asuncion – PC2 – and Ciudad del Este – PC21 – both Paraguayan cities, could be explained by the fact that Ciudad del Este is a small town on the borders of Paraguay, Brazil and Argentina, with immigrants of different origins, which give the city a peculiar profile. Practice Dimensions Of the 12 independent factors obtained we decided to keep the following 6 that together explain 71.25% of the variance: P1 – Employee oriented versus job oriented P2 – Results oriented versus process oriented P3 – Isolated versus relational P4 – Egalitarian versus hierarchical P5 – Parochial versus professional P6 – Informal versus formal. Tables 7 to 12 list the variables with loadings approximately higher than 0.50 or 0.60 that were considered relevant to explain each

factor. In order to name the six dimensions we indicated in bold type the four items that we considered key to define each dimension. The 24 key items (4×6) were submitted to an ecological factorial analysis of principal component using varimax rotation and together explained 82.35% of the accumulated variance of the mean scores between units. The scores and rankings of the different company units are shown in Table 13. Factor P1 – employee oriented v job oriented (Table 7) – shows that the organization is perceived as interested only in the work of the employees and not in their well-being and, that in general, important decisions are taken by individuals. It also shows the fascination that Brazilian organizations have for hierarchy and tradition, as indicated by the items that state that decisions are centralized at the top and that changes are implemented by management decree. In such an environment of individuals, impersonal rules substitute for relationships. Thus the fact that the organization does not have relevant links with the local community and contributes little to society could be explained by the historical indifference of the forms of association that imply solidarity, as stated by Buarque de Holanda (1995). To exemplify, in individualistic societies, such as North American society, the concept of community is founded on the equality and homogeneity of all its members. In Latin America in contrast, the community is heterogeneous, hierarchical and complementary. Its basic unit is not the individual, but relationships and persons, and groups of friends. Moreover, when employees become embedded in the relational networks, the perception of formal hierarchies would decrease, with personal relationships forming the flip-side of official hierarchies. Factor P2 – results oriented v process oriented (Table 8) – shows that the major emphasis is on following organizational procedures correctly, and that following the correct procedures is more important than


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P1: Employee oriented v job oriented

Code

Loading*

Description

PP30 PP49 PP26 PP43 PP48 PP18 PP32 PP23 PP28 CT6 CT3 PP25 PP6 PP42 PP53

0.848 0.841 0.797 0.771 0.725 0.725 0.718 0.697 0.648 0.580 0.565 0.562 0.550 0.526 0.571 2nd loading

No special ties with local community Pragmatic not dogmatic in matters of ethics Organization contributes little to society Decisions centralized at top Changes implemented by management decree Job competence is what counts regardless of how it was acquired Managers keep good people for own department People only told when they have made a mistake Organization only interested in work people do Typical member sloppy Typical member direct People’s private life is their own business Important decisions made by individuals Little attention to physical work environment Each day is pretty much the same

* Items with negative loadings are reworded negatively.

Table 8

P2: Results oriented v process oriented

Code

Loading*

Description

PP1 PP21 PP53 PP3 PP14 PP11 PP45 PP41 PP37 PP6

0.808 0.770 0.690 0.686 0.639 0.635 0.599 0.565 0.516 0.505 2nd loading

Major emphasis on correctly following organizational procedures People identify primarily with own branch or location Each day is pretty much the same Uncomfortable in unfamiliar situations – people avoid taking risks Many people wonder about purpose and importance of their work Organization and people closed and secretive Correct procedures are more important than results Not aware of competition of other organizations Our branch worst of organization All important decisions taken by individuals


Table 9

P3: Isolated v relational

Code

Loading*

CT2 CT7 CT4 CT1 PP29 CT5

0.854 0.853 0.788 0.746 0.708 0.604

Description Typical member warm Typical member relational Typical member flexible Typical member initiating Newcomers are helped to adapt quickly to job and group Typical member fast




P4: Egalitarian v hierarchical

Code

Loading*

Description

PP50 PP36 PP47 PP2 PP54 PP20 PP7

0.730 0.717 0.708 0.683 0.649 0.597 0.514 2nd loading

Ordinary members never meet their top managers Meeting times only kept approximately People from the right background better chance of being hired Little concern for personal problems of employees Administrative discontinuity Top managers resent being contradicted Subordinates have to work according to detailed instructions from superiors


results. This factor also shows that the orgaFactor P4 – egalitarian v hierarchical nization is perceived as a closed system (Table 10) – complements factor P1 (emas indicated in the items that state that the ployee oriented v job oriented), also showing organization and its people are closed and the fascination that Brazilian organizations secretive and that they are not aware of com- have for hierarchy and tradition, describing petition from other organizations. an organization that could be interpreted Yet, just like in a set of mirrors, the using the code of ‘the street’, the code of laws dimensions present their own opposites as and of individualism, as indicated by the shown in Factor P3 – isolated v relational items that state that ordinary members never (Table 9) – where the view of the ‘home’, of meet their top managers, that top managers the relational axis is clearly represented. resent being contradicted and that subordiXYZ is an organization that exists in a com- nates have to work according to detailed plex system of social relationships, of links instructions from their superiors. among its members. In the Brazilian case, in Factor P5 – parochial v professional certain situations the ‘street’ is encompassed (Table 11) – shows how long-term planning, inside the ‘home’, treating the organization rational thinking and the fact that quality as if it were a large family. The result is a dis- prevails over quantity can be embedded in a course where personal relationships consti- closed system, represented by the item that tute the framework of the whole system. In states that only very special people fit into the the ‘street’, society is encompassed by the organization. axis of impersonal laws, hiding the domain of Factor P6 – informal v formal (Table 12) personal relationships. Brazil can be read or – shows formality in discourse, in dealing understood from both perspectives, and both with each other as well as regarding the dress possibilities are institutionalized in the orga- code. Such formality fits the hierarchically nization. process-oriented structure, as shown in the Consequently, the ethic that applies item that states that subordinates have to depends on how the organization is per- work according to detailed instructions from ceived (as the ‘street’ or as the ‘home’, i.e. iso- their superiors. lated or relational), thus implying the concept All in all (Table 13), the analysis of the of a double-edged ethic. There are interpre- value and practice dimensions appears to tation codes and ways of behavior that are denote that the relational universe provides opposite and that are valid only for certain the appropriate environment that would people, actions and situations. ‘facilitate’ existence in societies with high


154


P5: Parochial v professional (closed system)

Code

Loading*

PP8 PP46 PP40 PP16 PP34

0.830 0.821 0.704 0.657 0.642

Description We think three years ahead or more Our top managers only decide on the basis of facts We let quality prevail over quantity Everybody is conscious of costs of time and materials Only very special people fit into our organization


Table 12

P6: Informal v formal

Code

Loading*

PP39 PP10 PP33 PP51 PP7

0.746 0.693 0.558 0.536 0.536

Description Style of dealing with each other formal Cooperation and trust between branches normal We always speak seriously of the organization and of our job We always dress formally and correctly Subordinates have to work according to detailed instructions from superiors


power distance, reducing, in practice, the distance imposed by hierarchy and by bureaucracy, offering alternative functional routes typical of societies with a double-edged ethic.

rankings of the different company units are shown in Table 17. In relational systems, everything is translated into personal terms. Heroes are the paradigmatic figures of the social world, Hero Dimensions either as an example to be followed or as a We obtained the following three factors that model to be avoided and banned. In Da together explained 61.82% of the variance: Matta’s (1997a, b) perspective, in Brazil people live more according to an ethic of H1 – Relational hero (impersonal v relational) vertical loyalty and identity, rather than H2 – Moral hero (pragmatic v moral) according to the horizontal ethics that H3 – Caxias6 hero (privileges v efficiency). appeared with capitalism. Thus the identifiTables 14 to 16 list the variables with load- cation with a hierarchical superior is much ings approximately higher than 0.50 or 0.60 easier than with an equal or colleague, so that were considered relevant to explain each fostering the existence of heroes. Two factors factor, indicating in bold the items selected to are always present in Latin American culname the dimensions. The nine key items ture: first, the need to separate theory from (3×3) were submitted to an ecological factor practice, and second, the realization that analysis (principal components analysis using there are two conceptions of what reality varimax rotation) and together explained entails: the relational world and the imper85.62% of the accumulated variance of the sonal world, the moral world and the pragmean scores between units. The scores and matic world, the world of work and efficiency



Perceived practices scores and rankings

PC

P1

P2

P3

P4

P5

P6

RP1

RP2

RP3

RP4

RP5

RP6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

53 67 61 45 33 35 35 39 35 35 43 40 44 32 33 34 40 23 36 35 65 78 66 33 49 59 66 62 61 70 41 64 68 63 82 76

61 59 55 33 44 48 40 51 50 50 39 41 43 43 40 49 51 41 51 43 55 12 46 97 55 53 48 47 48 35 80 71 33 38 51 97

57 49 81 53 50 39 47 44 45 50 47 41 55 74 57 65 58 51 52 44 61 26 69 68 42 45 47 47 52 38 –19 42 42 65 59 56

84 89 45 53 43 58 39 61 58 53 57 58 55 37 45 45 54 45 62 60 69 50 44 37 41 56 79 27 44 52 33 52 17 10 55 32

69 58 79 47 55 47 56 49 50 58 45 39 33 57 51 48 50 60 38 45 86 74 78 30 53 35 20 51 39 38 76 20 27 49 31 60

56 57 50 45 44 31 47 39 42 50 43 44 57 51 48 52 41 43 44 55 61 65 76 89 51 68 56 48 17 66 52 71 66 53 7 14

16 6 14 18 32 27 29 24 30 28 20 23 19 35 34 31 22 36 25 26 9 2 8 33 17 15 7 12 13 4 21 10 5 11 1 3

5 6 9 34 23 19 29 14 15 16 31 28 26 25 30 17 13 27 11 24 7 36 22 1 8 10 18 21 20 33 3 4 35 32 12 2

10 20 1 14 19 33 21 28 26 18 22 32 13 2 11 6 9 17 15 27 7 35 3 4 30 25 23 24 16 34 36 31 29 5 8 12

2 1 21 17 27 10 29 6 8 16 11 9 14 31 23 24 15 22 5 7 4 20 25 30 28 12 3 34 26 19 32 18 35 36 13 33

6 10 2 22 13 23 12 20 18 9 24 26 31 11 16 21 17 8 28 25 1 5 3 33 14 30 35 15 27 29 4 36 34 19 32 7

11 10 20 24 25 33 23 32 30 19 29 27 9 17 22 15 31 28 26 13 8 7 2 1 18 4 12 21 34 6 16 3 5 14 36 35

Note : R indicates the ranking of the factor.

and the world of privilege. The three hero factors also show the ambiguity and contradictions typical of Latin American cultures, where opposites are different sides of a mirror that reflects society and its duality.

The analysis of the 13 dimensions suggests that Brazilian branches, in general, are distinct from the other subsidiaries with scores that vary around the Brazilian positions. In general, Brazilian culture is reputed


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H1 – Relational hero (impersonal v relational)

Code

Loading

MP1 MP5 MD4 MP3 MD3

0.879 0.804 0.756 0.750 0.661

Table 15

Seniority with organization important for promotion Commitment to organization not important Serious conflict with superiors reason for dismissal Being politic and knowing how to negotiate not important Married man/woman having sexual relations with subordinate reason for dismissal

H2 – Moral hero (pragmatic v moral)

Code

Loading

MD6

0.797

MD2

0.785

MD5

0.631

MP6

0.511

Table 16

Description

Description Appropriating without permission US$ 100,000.00 worth of company property reason for dismissal Not having relationships that protect you in case of a lay-off is not reason for dismissal Appropriating without permission US$100.00 worth of company property reason for dismissal Having a good relationship with those higher in the hierarchy not important for promotion

H3 – Caxias hero (privileges v efficiency)

Code

Loading

MD1 MP2 MP4

0.756 0.672 0.631

Description Poor performance is reason for dismissal Proven performance important for promotion Diplomas and formal qualifications not important for promotion

to be flexible and adaptable, apparently less prone to extremes and favoring solutions that emphasize harmony instead of open conflict (Da Matta, 1997a). This also suggests the importance of the relational universe and its role as a social amalgam, neutralizing tension and dissatisfaction. Clusters of Cultural Agreement The first purpose of this study was to identify the OC dimensions. The second purpose was to determine if values and practices are uniform in the sampled organization or if there are different organizational culture clusters. In order to identify clusters of cultural agree-

ment the 13 OC dimensions plus the 5 demographic variables for the 36 units were submitted to a hierarchical cluster analysis, using Ward Method and square Euclidean distance. From the resulting dendrogram we selected the following four clusters (Figure 1). •

• •

Cluster 1 – Latin American cluster (Santiago, Asuncion, Buenos Aires, Panama, Ciudad del Este and La Paz). Cluster 2 – Brazilian cluster (the 17 Brazilian units: PC4 to PC20). Cluster 3 – Asian American cluster (New York, Tokyo, Miami, Securities UK, Grand Cayman and Madrid). It is worth



Heroes: scores and rankings

Table 17 PC

H1

H2

H3

RH1

RH2

RH3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

60 51 43 33 36 34 35 37 36 35 34 35 36 32 32 37 31 37 32 40 83 63 66 55 61 66 76 67 75 62 57 69 61 77 61 58

51 28 30 52 71 54 58 36 24 40 37 51 57 51 46 56 51 69 59 61 54 59 33 48 75 29 54 45 15 19 63 65 40 82 59 75

83 74 95 47 49 30 54 38 16 47 48 45 50 66 44 59 41 62 57 60 68 41 33 38 57 57 34 57 47 43 48 15 51 59 55 32

14 18 19 32 26 30 28 23 25 29 31 27 24 35 33 21 36 22 34 20 1 9 8 17 11 7 3 6 4 10 16 5 13 2 12 15

21 33 31 18 4 16 12 29 34 27 28 20 13 19 24 14 22 5 9 8 15 11 30 23 3 32 17 25 36 35 7 6 26 1 10 2

2 3 1 21 18 34 15 30 35 22 19 24 17 5 25 8 28 6 10 7 4 27 32 29 12 11 31 13 23 26 20 36 16 9 14 33

•

mentioning that in this cluster there are two European units, namely Securities UK and Madrid. Cluster 4 – European cluster (Milan, Lisbon, London, Paris, Frankfurt, Vienna and Amsterdam).

In order to verify if the identified clusters were, in fact, significant, we submitted the original 131 variables (except the demographic variables as they had already been used in the cluster analysis), to Multiple Discriminant Analysis and the results obtained did not present any classification errors.


158


Figure 1

Dendrogram



According to some authors (e.g. Fine and Kleinman, 1979; Van Maanen and Barley, 1985) social interaction is the essential condition for developing collective understanding. However, it should be noted that for Hogg and Abrams (1988) the uniformity of group behavior is the result of the individuals’ selfconcept as group members and not of their interactions. On the other hand, the variable that, apparently, best discriminates between groups is nationality: as clearly shown by the dendrogram (Figure1). Martin (1992) proposed that OCs could be studied from three different perspectives:

between sub-cultures. Considering the fact that multiple factors, and not only one factor, simultaneously affect the development of cultural agreement, and taking into account that some of the variables are correlated, then cultural consensus could develop among different groups without having clear boundaries. On the other hand, the determination of the factors or dimensions and their components, which implies a relatively high degree of researcher subjectivity, would also affect the boundaries that delimit the different clusters of cultural agreement. Another problematic feature is the emphasis on the fact that each sub-culture 1 Studies that follow the integration has a unique meaning system. That would perspective describe OCs as being suggest that the members of each group have universally accepted by all organization developed a unique shared understanding members. Integrative research typically involving all the cultural domains that form describes culture as the strength of the system of meaning. However, it might be organizational solidarity. possible that a sub-culture developed cultural 2 Studies that follow the differentiation agreement in some domains but not in perspective focus on the different cultural others. That would imply that the clusters of streams that coexist in organizations. It cultural agreement might not develop conis believed that cultural agreement only sensus in connection with the complete exists within the limits of small subgroups, system of meaning. As Sackmann (1991, i.e. of organizational sub-cultures. 1992) demonstrated, differences between 3 Studies that follow the fragmentation clusters of cultural agreement can develop perspective state that there would not be around some areas of cultural knowledge but clear patterns of cultural agreement in not around others. organizations. Although we consider that OCs can be The differentiation perspective supports described in terms of clusters, we agree with the belief that an OC comprises a variety of Greenberg (1999) that cluster configuration different sub-cultures. Cultural consensus is not a permanent characteristic, but that and consistency would only exist within the different clusters of cultural agreement can limits of each sub-culture. Moreover, each emerge due to changes in the organizational sub-culture would develop its unique mean- context, or as different issues acquire releing system and there would not be cultural vance attracting the attention of organizaagreement between sub-cultures (Martin, tional members to different affiliations. This 1992). The differentiation perspective thus suggests that the three cultural perspectives depicts culture as a mosaic of homogene- might be interrelated or interwoven instead ously colored pieces with clear boundaries of parallel states. That being the case, OCs (Hannerz, 1992). Although we believe in the could oscillate between the states of inteexistence of sub-cultures, Greenberg (1999) gration, differentiation and fragmentation argues that there are some problematic (Greenberg, 1999). Consequently, as the features in their description. One of these organization changed and the attention of issues is the existence of clear boundaries its members was focused on different view-


160


points, the OC could become more inte- leaders can use social interaction mechagrated, differentiated or fragmented. For nisms to coercively or persuasively influence example, when an organization felt threat- the cultural understanding of group memened by competition, or in the specific case of bers. In that context, organizational leaders XYZ by privatization, it could develop con- could use relational networks to try to control sensus in order to defend itself and survive. the development of shared understanding. If On the other hand, in other circum- the organization had only one powerful stances, such as an internal issue involving leader, that individual could foster the develdifferences in benefits between new employ- opment of cultural agreement in the entire ees and those working for the company for a organization. On the other hand, if there longer period of time (i.e. before the com- were multiple leaders in the organizational pany was restructured), could foster the context (as seems to be the case in organizaformation of cultural agreement clusters tion XYZ, where power, is chiefly concenbased on that premise. Once the issue was trated in the regional superintendencies) dealt with, or when another issue took prece- interacting with different groups, then differdence, new clusters of cultural agreement ent sub-cultures could emerge, based on could substitute for the former ones. the various directions signaled by those dif Additionally, multiple factors, sometimes ferent leaders. That would confirm Pfeffer’s not easily detectable, can influence cultural (1981) and Smircich and Morgan’s (1982) agreement cluster formation in such ways argument that organizational leaders have that the organization could instead develop a many opportunities to influence shared web of cultural agreement that could lead it understanding and practices. to a state of cultural fragmentation, thus implying the non-existence of clear patterns Conclusions of cultural agreement. The possibility of the three culture per- According to Motta and Caldas (1997) one of spectives being interrelated also suggests that the key factors that differentiates the culture researchers may have to reconsider the depth of one organization from the culture of of their OC definitions. Many researchers another, and probably the most important have defined OC as dependent on shared factor, is national culture. The basic assumpassumptions about values and practices tions, costumes, beliefs and values, as well (for example, Peters and Waterman, 1982; as the artifacts that characterize the culture Schein, 1992). According to Hofstede (2001), of an organization, are always somehow deeply held assumptions in connection with encompassed by the corresponding national values are formed during the early stages of culture. It is therefore impossible to study the life and are, therefore, very difficult to culture of organizations that operate in a change. Consequently, if researchers believe society, without studying the culture of that that shared understanding in an organization society. Thus the study of the organizational can oscillate between integrated, differen- culture of a Brazilian company requires tiated or fragmented cultures, then it may be understanding Brazilian culture. For these appropriate to consider that OC exists at the authors, Hofstede’s (1980) most important more superficial level of practices, as has finding refers to the importance of national been argued by Hofstede et al. (1990). culture in order to explain the differences in Moreover, in hierarchical and relational work-related attitudes and values. organizations, social interaction, through Brazilians, no matter how differentiated relational networks, is usually of great rele- they may be in their racial and cultural vance. In that type of organization, the matrices and in their ecological-regional



functions, or in respect of being old settlers or recent immigrants, have come to know themselves, to feel themselves, and to act as a single people, belonging to the one same and only culture. They are a national entity distinct from all others, speaking the same language, differing only in regional accents. They take part in a body of common traditions that is more meaningful for all than are any of the existing sub-cultural variants, as is clearly shown in the dendrogram (Figure 1) where Brazil forms an individual separate cluster. Nevertheless, the cultural uniformity and national unity must not blind us to the disparities, to the contradictions and antagonisms that subsist beneath them as dynamic factors of major importance (Ribeiro, 2000). Lying hidden beneath Brazilian cultural uniformity is a profound social distance reproduced in organizations in the stratification that separates those with power from their subordinates, where hierarchy, authority, privilege and tradition mingle with modern forms of management, usually derived from individualistic ideologies, revealing the ambiguity and duality of Brazilian culture. For Sergio Buarque de Holanda (1995) Brazilians inherited their characteristics from the Iberians: Hispanic arrogance and Portuguese laxness and plasticity as well as an adventurous spirit and appreciation of loyalty in both. The mixture of all those ingredients probably resulted a certain slackness and anarchy, lack of cohesion, disorder and indiscipline (as stated in item CT6 – typical member sloppy – of Factor P1 – employee oriented v job oriented). From such perception would derive the tendency towards hierarchy and authoritarianism. On the other hand, for Ribeiro (2000) those ‘defects’ are also the source of the creativity of the adventurer, the adaptability of someone who is not rigid but flexible (see item CT4 – typical member flexible – of Factor P3 – isolated v relational), the vitality of someone who faces fate and fortune with daring and the originality of an undisciplined people.

Thus Brazilian organizations usually present a high power distance. The way workers and executives are treated seems, on the one hand, to be based on masculine type controls and use of authority, and, on the other hand, on feminine type controls and on the use of seduction and favor typical of relational networks. Moreover, organizations are at the same time producers and product of their culture. The OC cannot be considered a photograph of the organization but an interpretation of the complex organizational reality as perceived by its members. Consequently, the dimensions identified in this study partly reflect the OC dimensions identified by Hofstede et al. (1990), but they also show unique features based on the specificities of the organization and of Brazilian culture. Organizations are symbolic entities: they function according to implicit models in the minds of their members, and these models are culturally determined. In terms of values it is crucial to answer the questions of who decides what, and how can one be assured that what should be done will be done (Hofstede, 2001). In terms of the usefulness of the OC construct for management, the research approach can be generalized to organizations elsewhere. However, the conclusions and the 10 (6 on perceived practices and 4 on heroes) dimensions cannot be generalized. This is because demographic characteristics such as age, education and gender, and personality also play roles. Theories, models and practices are culture specific: they may apply across borders, but this should always be proved. Results show the influence of national culture on organizational culture, as the dimensions found clearly reflect the ambiguity and double-edged ethic characteristic of Brazilian culture in particular and of Latin American culture in general. This study also shows the importance of hierarchy and of relational networks, which stresses the rele-


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vance of the cultural element in organizational structure and functioning. Quoting Hofstede (2001: 377): ‘The structure and functioning of organizations are not determined by a universal rationality. There is no best way that can be deduced from technicaleconomical logic’. Also in connection with the importance attributed to hierarchy is the issue of power redistribution, which includes all forms of empowerment such as consultative and participative forms of management. In organizations with a high need for authority, if power redistribution is imposed, it may become self-destructive (because, according to Hofstede, 2001, if it succeeds, continued imposition would no longer be possible) or, for example, it may just be reduced to a ritualistic representation of participation because it is perceived as the politically correct discourse by the managerial establishment. In hierarchical and relational organizations, according to Da Matta (1997a), once people are positioned in a network of personal relationships they are automatically treated as friends and can be a potential source of power resources and a means of social and political manipulation by reciprocity and favor. In brief, understanding the relational double-edged ethic that governs Brazilian culture helps us understand apparently different, ambiguous or even contradictory behaviors reflected in the OC practices of a Brazilian company with international operations. Furthermore, according to Stevenson and Bartunek (1996), most organizational culture studies that admit the existence of different cultural clusters either focus on detailed ethnographic descriptions of the various sub-cultures that coexist in an organization or examine how those sub-cultures affect the organization. There is, therefore, little empirical research that directly deals with what combination of factors makes indi viduals agree or disagree over their cultural viewpoints. Consequently, we consider that

this study attempts to deal with that issue as the cultural clusters were obtained with a multivariate approach, using the 5 demographic variables and the 13 identified organizational dimensions. The results of this study suggest the internal organizational environment can also affect the extent to which the cultural agreement of organizational members is influenced by nationality. The situational context has the potential to strengthen or weaken the identification of individuals with their group and the internalization of their identity group values (Hernes, 1997; Larkey, 1996). The organizational context may therefore increase or reduce the probability of nationality affecting the cultural agreement of group members. In this sense, it should be noticed that several of the non-Brazilian branches have high percentages of employees of Brazilian or Latin origin. Furthermore, monolithic organizations have high levels of occupational segregation where the senior managerial level would basically be composed of members of the same nationality as the head office (i.e. expatriates), while all other levels would generally be occupied by local individuals, from the host country or of the same nationality as the head office but locally hired and thus subject to local employment regulations, as seems to be the case in the non-Brazilian XYZ branches. Additionally, Edström and Galbraith (1977) dealt with the issue of how international firms could extensively use personnel transfers to implement socialization programs that would result in an international network of verbal information that would allow a higher decentralization and foster a more open and positive attitude towards other nationalities and cultures, building on commitment to the organization as a whole, and thus favoring cultural agreement. However, that practice does not as a rule exist in XYZ, where the transfer of locally hired personnel from the non-Brazilian



branches to the branches in Brazilian territory is practically non-existent. In such context, where the organization has a monolithic profile and where transfers for socialization are non-existent, organizational members tend to identify strongly with their local groups, and their interpretation of the organizational reality tends to be in agreement with the values and beliefs of their local group, thus stimulating differentiated practices from those of the home office. Summing up, the analysis of organizational culture is a key factor in order to manage change in an organization, and, as such, its understanding requires the identification of values and practices as well as the existence of clusters of cultural agreement and the possibility of coexistence of different systems of meanings. Specifically in the case of organizations with branches in different countries with different national cultures, it must be noted that organizational values have to be legitimized by the cultural values of the host society and cannot be studied as if they were the exclusive production of organizations, as if organizations operated in a vacuum. Thus, according to Hofstede (1997), the core of OC is in the practices shared by its members. Consequently, national cultures would differ mainly on their basic values, while OCs would differ more superficially in terms of their practices, which would be the visible parts of culture and could be manageable within certain limits. Finally, if managers understand the factors that lead to cluster formation in their organization, they may be able to use the information to prepare themselves to manage across different groups in order to achieve goals that involve the entire organization’s participation, as well as dealing with conflict between groups by creating bridges between the different commonalities, thus providing the organization with an important leverage point for organizational culture management.

Notes The term personalism is usually used for the particular kind of holism evident in Latin American societies (also known as relational societies, or collectivistic societies). Romani and Zander (1998) defined individualism as the prioritization of the individual in relation to the group and collectivism as the prioritization of the group. However, they distinguish between elective and forced groups. Elective groups, such as clubs, would be those where the priorities of the individuals prevail as they can choose whether to belong to the group or not. On the other hand, in forced groups such as the family, the relationship between individuals would prevail. According to Dumont (1966, 1980) holism would be the priority given to the social links among individuals or to relationships, while individualism would be the priority given to individuals. In this sense, the opposite of individualism would be holism and not collectivism. Thus individualism and collectivism would be separate dimensions that could coexist in the same individuals or groups of individuals. In connection with this issue, Triandis (1995) argued that social groups could have, for example, very individualistic behaviors at work and very collectivistic behaviors in the family. Consequently, it would be important to see how social groups perceive their work environment: if as elective or as forced groups. If the organization were perceived as an elective group, the fact that the group privileges the interests of the group would not necessarily define a collectivistic attitude. In brief, the opposite of individualism would be to prioritize relationships ( holism ) and not to prioritize the group ( collectivism ), as groups can be elective or forced. 2 The following 17 Brazilian cities were selected to make part of the sample: South Region: Porto Alegre, Curitiba and Florianópolis. SE Region: São Paulo, Rio de Janeiro, Belo Horizonte and Vitória. NE Region: Salvador, Recife, Fortaleza, São Luis and Natal. North Region: Belém and Manaus. Center-West Region: Campo Grande, Cuiabá and Goiânia. 3 Values: 22 items coded OT on work organization, 7 items coded FV with various formats and 28 items coded CG on general beliefs. Perceived practices: 54 items coded PP on 1


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perceived practices and 7 items coded CT on the behavior of a typical organization member. Heroes: 7 items coded MP on reasons for promotion and 6 items coded MD on reasons for dismissal. (a) Variables with 5-point importance scales (i.e. the 22 questions on work goals and the 7 questions on reasons for promotion) were standardized to eliminate acquiescence. For example, standardizing across the 22 goals replaces the scores with the distance from their common overall mean divided by their common standard deviation. The overall mean of the standardized scores for the 22 goals for each group is always zero. As we were interested in eliminating acquiescence as a group phenomenon, we singlestandardized group means across goals (first calculating group means and then standardizing). In order to avoid negative scores and decimal points we gave the standardized scores a mean of 500 and a standard deviation of 100; also their sign was reversed so that a very important goal would score around 700 and the least important goals would score below 300. (b) For the other questions the answers showed a clear midpoint (such as undecided between agree and disagree) so unit means were not standardized. In this case, means were also inverted so that the highest values indicated agreement and the lowest ones disagreement, using the following formula: 100 – (variable * 10) and thus transforming original values into two-digit values. (c) In ecological analysis nominal or categorical variables had their frequency distributions dichotomized at the most meaningful point and the answers summarized in percentages: FV1 – preferred manager: we used the percentage of consultative manager + participative manager, representing about 86% of the preferences. FV2 – perceived manager: we used the percentage of authoritative manager + paternalistic manager, representing about 52% of the perceptions. FV5 – time that they intend to work for the organization: we used the percentage of employees that intend to leave the company before retirement (representing approximately 57% of the intentions). Sex: we used the percentage of men, representing 61% of the sample.

5

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Nationality or percentage of local employees: For the Brazilian units we computed the percentage of employees from the region the unit belonged to. For all other units we computed the percentage of employees from the country the unit belonged to. Hofstede (2001) argues that that instruments designed to study culture have their reliability supported by literature. In fact, the calculation of Cronbach’s alpha or of measures of sampling adequacy such as Bartlett’s sphericity test would be equivalent to committing the reverse of the ecological fallacy, in the sense that the individual and the social levels of analysis should not be confounded (Hofstede, 2001). Da Matta (1997b) presents a trilogy of heroes that coexist in Brazilian society: the ‘caxias’, the ‘renouncer’, and the ‘rogue’. The ‘caxias’ is named after the Brazilian Duke of Caxias, symbolizing order, rules and hierarchy. The ‘renouncer’ rejects the social world as it is; he or she is emblematic of a different reality. The ‘rogue’ rejects formal rules, is of course excluded from the labor market, and is in fact totally averse to work.

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ADRIANA V. GARIBALDI DE HILAL is Associate Professor of Organizations and International Business in the Federal University of Rio de Janeiro – COPPEAD (Graduate School of Business), Rua Saubara 110, Condominio Greenwood Park, Itanhanga Barra da Tijuca, Rio de Janeiro, Brazil. [email: [email protected]]

Résumé MCulture nationale Brésilienne, culture organisationnelle et pacte culturel : Résultats d’une étude d’une entreprise multinationale (Adriana V. Garibaldi de Hilal) La présente étude examine la culture organisationnelle d’une entreprise brésilienne, en fixant son attention sur ses implantations principales brésiliennes aussi bien que sur ses succursales européennes, latino-américaines, centraméricaines, nord-américaines et asiatiques, constituant un échantillon total de 36 villes et de 1742 personnes ayant répond. Les résultats montrent l’influence de la culture nationale sur la culture organisationnelle, car les dimensions mises en évidence reflètent clairement l’ambiguïté et l’éthique à double tranchant caractéristique de la culture brésilienne. Cette étude montre également l’importance de la hiérarchie, et des réseaux de relations, qui souligne la pertinence de l’élément culturel dans la structure


brazilian National Culture Org Culture

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