Managing Across Cultures

• Cultural differences making a difference– 6 Basic cultural variations

• People’s Nature• Relationship to nature• Relationship to other people• Modality of human activity• Temporal focus on human activity• Conception of space

Managing Across Cultures

• Cultural differences making a difference– How they view time– The collectivist / individualistic dimension– Power Distance (also shows in language)– Attitude towards affection– Nature of business conversations– Negotiating styles– Protocol for meetings (whether business or

personal)– Eating behaviors– Dress / appearance

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

• Small (U.S., Denmark, Canada)

– decentralized decision making– flat organizational structures

Uncertainty Avoidance (High or Low)– The extent to which people feel threatened by ambiguous

situations

• High( Germany, Japan, Spain)

– high need for security– strong beliefs in experts

• Low (Denmark, UK)

– willing to accept risks– less structuring of activities

Individualism (vs. Collectivism)– The tendency of people to look after themselves and

their immediate family only strong work ethic promotions based on merit

• U.S., Canada, Australia

Collectivism– The tendency of people to belong to groups and to look

after each other in exchange for loyalty weaker work ethic promotions based on seniority

• China, South American cultures

Masculinity (Vs. Femininity)– the dominant values in society are success,

money and thingsemphasis on earning and recognitionhigh stress workplace

• Japan

Femininity– the dominant values in society are caring for

others and the quality of lifeemployment securityemployee freedom

• Scandinavian cultures

Cultural Dimensions by Trompenaars

Universalism vs. ParticularismUniversalism: the belief that ideas and practices

can be applied everywhere without modification– U. S., Germany, and Sweden

Particularism: the belief that circumstances dictate how ideas and practices should be applied.

– Spain and Japan

Individualism Vs. Collectivism

Individualism: refers to people regarding themselves as individuals

–U.S., UK, and Sweden

Collectivism: refers to people regarding themselves as part of a group

– Japan and France

Neutral Vs. AffectiveNeutral: emotions are held in check

– Japan and the U.S. Affective: emotions are openly and naturally expressed

– Mexico, Netherlands, and Switzerland

Specific Vs. DiffuseSpecific: individuals have a large public space and a

small private space – UK, U. S., and Switzerland

Diffuse: both public and private space are similar in size

– Venezuela, China, and Spain

Achievement Vs. AscriptionAchievement: people are accorded status based

on how well they perform their functions– U.S., Switzerland, and UK

Ascription: status is attributed based on who or what a person is

– Venezuela and China

Time

Past or Present-Oriented Vs. Future-Oriented– Past or present-oriented : emphasize the history and

tradition of the culture• Venezuela, Indonesia, and Spain

– Future-oriented: emphasize the opportunities and limitless scope

that any agreement can have• U. S., Italy, and Germany

Sequential Vs. Synchronous Time Sequential: time is prevalent, people tend to do only one activity at a time, keep appointments strictly, and prefer to follow plans

– U.S.

Synchronous: time is prevalent, people tend to do more than one activity at a time, appointments are approximate, and schedules are not important

– Mexico and France

IssueTime

orientationPast Present Future

GeneralPlanning Extension of past

behaviorShort-term Long-term

Emphasis in decision criteria

Precedence Current impact

Desired effects

Reward systems

Historically determined

Currently contracted

Contingent on performance

Variations

Managerial ImpactSpecific by Variation

Variations in Time Orientation

Environment

Inner DirectedBelieve in controlling outcomes

– U.S.

Outer DirectedBelieve in letting things take their own

course– Asian Cultures

Comparing DimensionsHofstede Trompenaars

Power Distance (high / low)Uncertainty Avoidance (high / low)Individualism / Collectivism Individualism / CollectivismMasculine / Feminine (Success/ Quality)Time Orientation (Long / Short) Time (sequential / synchronous)

Neutral / Emotional (emotional control)Universalism / Particularism Specific / Diffuse (sharing space)Achievement / Ascription (ability / status)Environmental (control / laissez faire)

Other Cultural Dimensions

• Communication (language) context• Time

– Orientation – Value

• Gender Roles– Assertiveness / Modesty

• Protocol (formality / informality)

• Persuasive Argument– Logic / Emotion / Dogma

• Basis of Trust– Law / Friendship

Other Cultural Dimensions (From Globe Research Project)

• Institutional Collectivism • In-group Collectivism • Gender Egalitarianism • Assertiveness • Power Distance • Performance Orientation • Future Orientation • Uncertainty Avoidance • Humane Orientation

IssueBasic human

natureEvil Neutral or

mixedGood

GeneralControl system

Tight, suspicion-based

Moderate, experienced-

based

Loose, information-

basedManagement

styleClose

supervision, Top-down

Moderate supervision, consultative

Laissez-faire , participative

Organization climate

Adversarial, contractual

Collaborative, informal

Variations

Managerial ImpactSpecific by Variation

Variations in Human Nature

Issue

Relation to nature

Subjugation to nature

Harmony with nature

Mastery over nature

GeneralGoal setting Qualified,

hesitant, vagueContingent, moderated

Specific, confident,

unambiguous, high level

Budget systems

Futile, outcomes predetermined

Exercise, "actuals" are

real

Real, relevant, useful

Variations

Managerial ImpactSpecific by Variation

Variations in Relations to Nature

IssueActivity Being Containing

and controlling

Doing

GeneralDecision criteria

Emotional Rational Pragmatic

Rewards system

Feelings-based Logic-based Results-based

Concern for output

Spontaneous Balanced objectives

Compulsive

Information and

measurement systems

Vague, feeling-based, intuitive

Complex, qualitative,

broad

Simple, operational, few

indices

Variations

Managerial ImpactSpecific by Variation

Variations in Activities

IssueRelationships Hierarchical Group Individualistic

GeneralOrganizational

structureAttention on

vertical differentiation

Attention on horizontal

differentiation

Informal, flexible behavior vis-à-vis structures

Communication and influence

patterns

Authority-based Within group emphasis

Multiple, as-needed, open

Reward system Status-based Group-based Individually based

Teamwork Regulated, formal

Normative, routine

Voluntary, informal

Variations

Managerial ImpactSpecific by Variation

Variations in Relationships

Variations in Spacial OrientationIssueSpace Private Mixed Public

GeneralCommunication

and influence patterns

One-to-one, secret

Selective, semiprivate

Wide, open

Office layout Emphasis on barriers (closed

doors, large desks, ets.)

Specialized spaces (informal furniture next to

formal desk)

Open concept

Interaction patterns

Physically distant, one-to-

one, serial

Moderately spaced,

moderated numbers, organized

Physically close, frequent touching,

multiple relations (sometimes

spontaneously)

Variations

Managerial ImpactSpecific by Variation