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7/29/2019 Cross-cultural Issues in Business Negotiations (Revised)
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Managing Cross-cultural WorkforceIn Global Business
Dr. Ajay Singh
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What is Culture?
What are the Layers of Culture?
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On the Surface.
What people say and do
How they speak
How they dress
The food habit and the way they greet
How they treat each other Certain dos and don'ts of the culture
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Below the Surface
The culture has many underground layers:
- These layers reflect deeply held attitude and beliefs
- Hidden, unconscious, common values
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Core elements of culture
Nations history,
Religion and religious ideals,
mythology,
heroes,
landscape,
climate and geography
All the above have impact on the shared values
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Cultural Dimensions
Three major studies to examine inter-
cultural dimensions are by:
Hall
Hofstede
Trompenaars
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Hall
Time
Space
Communication Context
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Time
Monochromic
Strict Punctuality
Obsessed with
deadlines
Strict scheduling
Discussion on one
issue at a time
Polychromic
Not strict punctuality
Loose scheduling
Overlapping issues in
business meetings
More time to for
interpersonal relations.
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Business Cultures
Monocromic Business Cultures:Nordicand Germanic Europe; North America; Japan.
Moderately Monochromic: Australia / NewZealand; Russia and most of East-Central
Europe; Southern Europe; Singapore, Hong
Kong; Taiwan; China; South Korea, S. Africa.
Polychromic Business Cultures: The ArabWorld; most of Africa; Latin America;
South and South East Asia.
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Space (Distance Behaviour)
Inter-personal Distance in global regions:
Close: 20 to 35 cms. (8 to 14 inches)
The Arab World; The Mediterranean Region;
Latin Europe; Latin America
Distant: 40 to 60 cms. (16 to 24 inches)
Northern, Central and Eastern Europeans;
North America; Large part of Asia.
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Communication Context
Explicit Communication:
Explicit message
Information in context
Direct
(USA and Canada; Australia and New Zealand, Eastern
Europe)
Implicit Communication: Most message in code
(East and South-east Asia, Nordic and Germanic Europe)
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Hofstedes Model
Examined International difference in
work-values under four dimensions:
The Power Distance Dimension
Uncertainty Avoidance Dimension
Individual Vs. Collectivism
Masculinity Vs. Feminity
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Individual vs. Collectivism
This dimension describes the relationship that
individuals have with others.
In individual society, person is expected to take
care of him/herself and immediate family.
Identity is based on individual and individual
initiative and achievement is appreciated.
In collective society identity is based on social
system & belongingness to organization is moral.
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Individualism Index Rank County Rank County Rank Country
1 USA 19 Israel 37 Hong Kong
2 Australia 20 Spain 38 Chile
3 Great Britain 21 India 39/41 West Africa
4/5 Canada 22/23 Japan 39/41 Singapore
4/5 Netherlands 22/23 Argentina 39/41 Thailand
6 New Zealand 24 Iran 42 Salvador
7 Italy 25 Jamaica 43 South Korea
8 Belgium 26/27 Brazil 44 Taiwan
9 Denmark 26/27 Arab countries 45 Peru
10/11 Sweden 28 Turkey 46 Costa Rica
10/11 France 29 Uruguay 47/48 Pakistan
12 Ireland (Republic of) 30 Greece 47/48 Indonesia 13 Norway 31 Philippines 49 Colombia
14 Switzerland 32 Mexico 50 Venezuela
15 Germany F.R. 33/35 East Africa 51 Panama
16 South Africa 33/35 Yugoslavia 52 Equador
17 Finland 33/35 Portugal 53 Guatemala
18 Austria 36 Malaysia
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Masculinity vs. Femininity
It shows the degree of preference for achievement,heroism, assertiveness and material success. These
values are rated high in masculine and low in
feminine cultures.
In feminine cultures relationship with people and
quality of life are given higher value, and the
social value is welfare.
This also reflects roles and values of men and
women in society. In masculine cultures sex roles
are more sharply differentiated than in faminine
cultures.
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Masculinity Index
Rank Country Rank Country Rank Country
1 Japan 18/19 Hong Kong 37/38 Spain
2 Austria 20/21 Argentina 37/38 Peru
3 Venezuela 20/21 India 39 East Africa
4/5 Italy 22 Belgium 40 Salvador
4/5 Switzerland 23 Arab countries 41 South Korea
6 Mexico 24 Canada 42 Uruguay
7/8 Ireland 25/26 Malaysia 43 Guatemala
7/8 Jamaica 25/26 Pakistan 44 Thailand
9/10 Great Britain 27 Brazil 45 Portugal
9/10 Germany FR 28 Singapore 46 Chile
11/12 Philippines 29 Israel 47 Finland
11/12 Colombia 30/31 Indonesia 48/49 Yugoslavia
13/14 South Africa 30/31 West Africa 48/49 Costa Rica 13/14 Equador 32/33 Turkey 50 Denmark
15 USA 32/33 Taiwan 51 Netherlands
16 Australia 34 Panama 52 Norway
17 New Zealand 35/36 Iran 53 Sweden
18/19 Greece 35/36 France
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The Power Distance Dimension
Shows the extent to which members of a society
accepts that power distance in institutions and
organisations.
Shows desirability and not of social inequality.
Is reflected in degree of equality of roles;
accessibility of superiors, and structure
(centralized or decentralized) of the organization.
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Power Distance Index
Rank Country Rank Country Rank Country 1 Malaysia 18/19 Turkey 37 Jamaica
2/3 Guatemala 20 Belgium 38 USA
2/3 Panama 21/23 East Africa 39 Canada
4 Philippines 21/23 Peru 40 Netherlands
5/6 Mexico 21/23 Thailand 41 Australia
5/6 Venezuela 24/25 Chile 42/44 Costa Rica
7 Arab countries 24/25 Portugal 42/44 Germany FR
8/9 Equador 26 Uruguay 42/44 Great Britain
8/9 Indonesia 27/28 Greece 45 Switzerland
10/11 India 27/28 South Korea 46 Finland
10/11 West Africa 29/30 Iran 47/48 Norway
12 Yugoslavia 29/30 Taiwan 47/48 Sweden
13 Singapore 31 Spain 49 Ireland
14 Brazil 32 Pakistan 50 New Zealand
15/16 France 33 Japan 51 Denmark
15/16 Hong Kong 34 Italy 52 Israel
17 Colombia 35/36 Argentina 53 Austria
18/19 Salvador 35/36 South Africa
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Uncertainty Avoidance Dimension
Shows the degree to which individuals feel
uncomfortable with uncertainty and ambiguity
about the future and in the work relationships.
Reflected in feeling of continuous threat, which is
reflected in inner need to work hard.
Have difficulty in adjustment to deviant behaviour
Emphasis on written rules and regulations.
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Uncertainty Avoidance Index Rank Country Rank Country Rank Country
1 Greece 19 Israel 37 Australia
2 Portugal 20 Colombia 38 Norway
3 Guatemala 21/22 Venezuela 39/40 South Africa
4 Uruguay 21/22 Brazil 39/40 New Zealand
5/6 Belgium 23 Italy 41/42 Indonesia
5/6 Salvador 24/25 Pakistan 41/42 Canada
7 Japan 24/25 Austria 43 USA
8 Yugoslavia 26 Taiwan 44 Philippines
9 Peru 27 Arab countries 45 India
10/15 France 28 Equador 46 Malaysia
10/15 Chile 29 Germany FR 47/48 Great Britain
10/15 Spain 30 Thailand 47/48 Ireland (Republic of)
10/15 Costs Rica 31/32 Iran 49/50 Hong Kong
10/15 Panama 31/32 Finland 49/50 Sweden
10/15 Argentina 33 Switzerland 51 Denmark
16/17 Turkey 34 West Africa 52 Jamaica
16/17 South Korea 35 Netherlands 53 Singapore
18 Mexico 36 East Africa
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Trompenaars
Universalism Vs. Particularism
Respect of universal laws vs. loyalty towards people
Specific vs. Diffuse relationshipsSuperficial engagement vs. total engagement
U i li V P i l i
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Universalism Vs. Particularism
You are sitting in your friends car, he is
driving 80 km/h in an area where he shouldbe respecting the 40km/h speed limitation.
Your friend hits a pedestrian.
There is no other witness. His lawyer asks
you to testify that your friend was driving at
the speed of 40 km/h. He assures that therewont be any serious consequence for you.
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What is expected from you?
My friend has a definite right as a friend to
expect me to testify to the lowest figure
My friend has some right as a friend to expect
me to testify to the lowest figure
My friend has no right as a friend to expect me
to testify to the lowest figure
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Universalism Index
Countries high in Universalism (Respect of Universal Law):
USA, Denmark, Austria, Switzerland, Netherlands, UK,
Czechoslovakia, Belgium
Countries moderate in Universalism:
Italy, Brazil, France, Singapore, Japan, Spain, Maxico,
Thailand.
Countries high in Particularism(Loyalty towards people):
Hong Kong, China, Indonesia, CIS, Venezuela.
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Specific Vs. Defused
Your boss asks you to help him in arrangement of
birthday party which he is organizing for his son this
weekend. The idea is not very appealing to you.
You decline the invitation: your boss has nothing to do
with your week-end activities. Your private and
professional lives are two different things.
You go and help your boss in the party because your
are totally committed to him/her, on a professional and
personal basis.
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Specific vs. Defused Relationships
Countries with Specific relationships (Engagement Superficial):
Austria, UK, USA, France, Netherlands, Belgium.
Countries that are moderate in this dimension:
Brazil,Czechoslovakia,Italy, Germany, Argentina, Japan,
Mexico, Indonesia, CIS, Thailand.
Countries high in Defused relationships(Engagement total):
Hong Kong, Singapore, Switzerland, Spain, China,
Venezuela.
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Managerial Implications
Motivation
Reward Appraisal
Negotiations (Verbal and non verbal)
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Convergence, Divergence and Crossvergence
Globalisation
Refers to global integration of markets and production processes
and industrialisation and economic development
Leads to cultural convergence or change in toward behaviours
that embrace free-market capitalism
Localisation
Refers to business and management practices that adapt
to the local culture or environment
Incorporate cultural values and new ideas from various
nationalities
Leads to cultural divergence and benchmarking business
approaches that work in different countries
Cultural Foundations of IHRM
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Convergence, Divergence and Crossvergence
Glocalisation
Refers to crossvergence or the mixing of cultural systems
between different countries
Belief that as global economy grows, countries willinfluence each other economically and globally
Cultural Foundations of IHRM
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Discussion