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