culture and international management
TRANSCRIPT
International Culture
Culture Defined
“the collective programming of the mind which distinguishes one group or category of people from another”
Culture Impacts everything Shapes attitudes, beliefs, & behaviors Differences can produce both:
• Friction and disruption• Enormous benefit
Culture (cont’d) Complex and rooted in:
• Historical events – Geography• Shared traditions – Economic development• Language – Religion
Dynamic and constantly evolving Should not be oversimplified Can differ among individuals within culture
International Managers Must Consider Culture and Employee Motivation Human resource practices Organizational structure Strategy formation and implementation Conflict management Negotiation tactics Leadership styles
• To understand culture and turn it into an advantage
• Research shows that companies are more successful when they consider local methods
The Key Is:
Nature of Culture
LearnedCulture is acquired by learning and experience
SharedPeople as a member of a group, organization ,or society share culture
Trans-generationalCulture is cumulative, passed down from generation to generation
SymbolicCulture is based on the human capacity to symbolize
PatternedCulture has structure and is integrated
AdaptiveCulture is based on the human capacity to change or adapt
Culture
Manifest Culture• Language, Dress, technology
Expressed Values• Culture’s explanation of itself
Basic Assumptions• materialism vs. spiritual enlightenment
How Culture is Learned
Primary Socialization• Appropriate behavior for age, gender, etc.
Subcultures• Ethnic differences
Secondary Socialization• Adult roles & occupations
How Cultures Affect Management Approaches Centralized Decision Making Risk Averse Individual Rewards Informal Procedures High Organizational Loyalty Co-operation Encouraged
Decentralized Decision Making Risk Seeking Group Rewards Low Organizational Loyalty Competition Encouraged
Value Priorities United States Japan Arab Countries
1. Freedom 1. Belonging 1. Family Security 2. Independence 2. Group Harmony 2. Family Harmony 3. Self-Reliance 3. Collectiveness 3. Parternalism 4. Equality 4. Age/Seniority 4. Age 5. Individualism 5. Group Consensus 5. Authority 6. Competition 6. Cooperation 6. Compromise 7. Efficiency 7. Quality 7. Devotion 8. Time 8. Patience 8. Patience 9. Directness 9. Indirectness 9. Indirectness10. Openness 10. Go-between 10. Hospitality
Values- basic convictions that people have regarding what is right and wrong, good and bad, important or unimportant
Value Differences and Similarities Across Cultures
Differences• U.S. managers value tactful acquisition of influence• Japanese managers value deference to superiors • Korean managers value forcefulness and aggressiveness• Indian managers value nonaggressive pursuit of objectives• Australian managers value low-key approach with high concern for
others
Similarities• Strong relationship between managerial success and
personal values• Value patterns predict managerial success• Successful managers favor pragmatic, achievement-
oriented values while less successful managers prefer static and passive values
Hofstede’s Dimensions of Culture: Power Distance (Large or Small)
• The extent to which less powerful members of institutions accept that power is distributed unequally• Large (Mexico, South Korea, India)
• blindly obey order of superiors• hierarchical organizational structure• Patron system
• Small (U.S., Denmark, Canada)• decentralized decision making• flat organizational structures• question the boss
• The extent to which people feel threatened by ambiguous situations• High( Germany, Japan, Spain)
• high need for security• strong beliefs in experts• slower decision making
• Low (Denmark, UK)• willing to accept risks• less structuring of activities• quick decisions
Hofstede’s Dimensions of Culture: Uncertainty Avoidance (High or Low)
Hofstede’s Dimensions of Culture: Individualism vs. Collectivism
Individualism - The tendency of people to look after themselves and their immediate family only
strong work ethicpromotions based on merit - U.S., Canada, UK
Collectivism - The tendency of people to belong to groups and to look after each other in exchange for loyalty
weaker work ethicpromotions based on seniority - China, South
America
Masculinity– the dominant values in society are success, money and
things emphasis on earning and recognition high stress workplace
• Japan, U.S. Very low % of women managers in japan, they are told to stay home after marriage. Mex and peru high % of women work.
Femininity– the dominant values in society are caring for others and the
quality of life employment security employee freedom
• Scandinavian cultures.
Hofstede’s Dimensions of Culture:
Masculinity vs. Femininity
Tropanaar’s Dimensions:Universalism/Particlarism
• Universalism - Universal Ways • U.S., Switzerland, Sweden, U.K., Germany. People
will be more concerned about rules and regulations.• Particlarism - Situation Specific
• Russia, South Korea, Venezuela. People will lie to help friends. India very particulist.
Tropanaar’s Dimensions:Universalism/Particlarism Stop sign in the desert: Would you stop? Who controls local marketing: H.Q. or
Local? More Particlarist = More commitment to
leader
How to Cope: Universalism Focus on rules (not relationships) Use legal contracts Trustworthy = Honor your word There is only one truth A deal is a deal
How to Cope: Particlarism Focus on relationship Legal contracts changeable Trustworthy = Honor changing conditions Several perspectives on reality Relationships evolve, as do deals.
Tropanaar’s Dimensions: Individualism/Collectivism
• Individualist• U.S. Australia, U.K., Germany, Norway
• Collectivist• Mexico, Japan, China, India
Tropanaar’s Dimensions: Individualism/Collectivism Early bird gets the worm The race goes to the swift Longest nail gets hammered down
Tropanaar’s Dimensions: Individualism/Collectivism Merit pay and fast track promotion Travel alone or in small groups Group pay and promotion Travel in large groups
How to Cope: Individualism Fast decisions Negotiator can commit for company Negotiating alone = trust of company Aim = quick deal
How to Cope: Collectivism Slower decisions Negotiator cannot commit for company Negotiating as head of group = status in
company Aim = lasting relationship
Tropanaar’s Dimensions: Neutral/Affective
• • Show Emotions?
• Yes: Arabic countries, Spain & Hispanic cultures,• Russia, France, Ireland
• Some: USA, Mexico, Finland, UK
• No: Japan, Hong Kong, China, Austria, Poland
Neutral/Affective: American Culture Do men and women show emotions in
the same way?
Are women more emotional than men?
Are men and women the same on showing emotions in other cultures?
Neutral/Affective: HumorAmericans and English use humor at work
and humor is often self deprecating.
Germans and Dutch use humor in social settings among friends.
Singapore and Japan don’t usually laugh in work settings.
Neutral/Affective:Anglo-Saxon: __ __ __ __ __ __ __ __ __Talking at diff times Latin: ___ ___ ___ ___ ____ ____ ____At the same timePersians, Middle East: __ __ __
__ __ __ __taking
turns to talk. Taking pauses between talk.
Neutral/Affective: US vs EuropeEuropean: ___ ___ ___ ___ ___ ___ ___Talk in paragraphs
USA: __ __ __ __ __ __ __ __ __Talk in bunch of 5 seconds sound bite
Tropanaar’s Dimensions: Specific/Diffuse
• Specific = Public & Private Separate• USA, UK, Sweden, France, New Zealand. Both
your life are different.• Diffuse = Public & Private Same
• Nigeria, Argentina, Japan,Denmark, Russia, Germany (weaker). They are same. As in India.
Tropanaar’s Dimensions: Specific/Diffuse
Private Private
Specific: Diffuse:
Tropanaar’s Dimensions: Specific/Diffuse Specific –
• Direct, to the point, purposeful in relating• Precise, blunt, definitive, and transparent• Principles and consistent moral stands
independent of person being addresses
Tropanaar’s Dimensions: Specific/Diffuse Diffuse -
• Indirect, circuitous• Evasive, tactful, ambiguous• Highly situational morality depending on the
person and context encountered
How to Cope: Specific Study the objectives, principles and numerical
targets of the specific organization with which you are dealing
Be quick, to the point, and efficient Structure meetings with time intervals and agendas Don’t use titles or acknowledge skills that are
irrelevant to the issue being discussed
How to Cope: Diffuse Study the history, background and future vision of
the diffuse organization Take your time – There are many ways to reach a
given goal Let the meeting flow, occasionally nudging its
progress Respect the person’s title, age, background
connections, whatever the issue being discussed Go a lot with India
Tropanaar’s Dimensions: Achievement/Ascription
Achievement: What you do - What have you accomplished lately • Norway, Ireland, USA, Australia, Germany
Ascription: Who you are – Family, Class, Age, Gender, Education, What you’ve done over your career• Egypt, Austria, Cuba, Argentina
Tropanaar’s Dimensions: Achievement/Ascription Importance of Family Titles Role of Translators:
• Translate or Interpret Personal discretion to speak for company Identification with Company or Profession
Negotiating w/ Achievement Make sure you have convincing technical
data Respect knowledge & info of counterparts Use the title that shows your personal
competence Don’t underestimate counterpart’s need to do
more or better
Negotiating w/ Ascription Make sure you have older/senior members
on your team Respect status & influence of counterparts Use the title that shows your influence in
company Don’t underestimate counterpart’s need to fit
their role
Tropanaar’s Dimensions: Time Orientation
Polychronic Monochronic
Tropanaar’s Dimensions: Time Orientation - Examples Are you “one thing at a time” or “multi-
tasking”
Barcelona Olympics vs Atlanta Olympics
Tropanaar’s Dimensions: Time Orientation Past Future Venezuela Japan Russia Korea France USA
Dealing with Sequentials Do only one thing at a time Time is sizable and measurable Keep appointments strictly on schedule Relationships are secondary to schedule Strong preference for following initial
plan
Dealing with Synchronics Do more than one activity at a time Appointments are subject to “giving time”
to others Schedules are secondary to
Relationships Strong preference for following where
relationships lead
Tropanaar’s Dimensions: Orientation to Nature Control Nature Go Along with Nature
Who Controls Fate? External (Outer) Internal (Inner) Venezuela USA China UK Russia Israel Egypt Norway Arab Nations France
Getting Along with Internals Playing “Hard Ball” is legitimate to test
the resilience of an opponent “Winning your objective” is important Win some, lose some.
Getting Along with Externals Softness, persistence, politeness, and
long, long patience will get rewards. It is most important to “maintain your
relationship” Win together, lose apart.
Edward T Halls Concept: Time Orientation : Other Names
Monochronic: • On Time, Sequential, A Time, Industrial Time
Polychronic: • In Time, Synchronic, B Time, Agricultural Time
Hall’s Context and CultureHigh-Context Message implicit Context provides info for
interpretation Focus on long-term
relationship Build trust over time
Low-Context Message explicit Meaning based on what
is actually said Focus on current
situation Greater reliance on
written contracts
Comparing High- and Low-Context Cultures