19
Successful Cross-Cultural Management A Guide for International Managers Parissa Haghirian The International Business Collection S. Tamer Cavusgil • Michael R. Czinkota • Gary Knight Editors www.businessexpertpress.com

Successful Cross-Cultural Management: A Guide for International Managers

Embed Size (px)

DESCRIPTION

A book for managers who work overseas or frequently deal with international business partners, students of international business who want to get insights into cross-cultural business activities and their cultural challenges, and also for people who would like to strengthen and improve their cross-cultural relationships and friendships.

Citation preview

Page 1: Successful Cross-Cultural Management: A Guide for International Managers

Successful Cross-Cultural ManagementA Guide for International Managers

Parissa Haghirian

The International Business CollectionS. Tamer Cavusgil • Michael R. Czinkota • Gary KnightEditors

www.businessexpertpress.com

Successful Cross-Cultural ManagementA Guide for International ManagersParissa Haghirian

Globalization and unlimited connectedness to all places in the world give

us the impression that our world is growing smaller and smaller. We can

get products from all over the world any time, easily communicate with

people on the other side of the planet with just a mouse click, and travel

almost anywhere within a day or two.

Despite increasing connectivity and globalization, cultural differences

remain. The more connected and international we become the more dif-

ferences between cultures—views, values, and communication styles—

become evident. International managers are supposed to succeed in an

arena where rules are very different and difficult to understand, which

often are not obvious.

This book explains how we all have our own cultural programs and

how these programs influence our management activities. It discusses

which cross-cultural experiences managers have, how they react to

stress and misunderstandings during these encounters, and which strat-

egies they can develop to successfully reach their goals. It covers all as-

pects of cross-cultural management such as cross-cultural negotiations,

conflict, and leadership and explains how to deal with culture shock and

which training methods to choose when preparing employees for an in-

ternational assignment. Mini case studies and cross-cultural incidents

present vivid examples of the international workplace and its cultural

challenges. The book finally gives recommendations for international

managers on how to prepare themselves for a cross-cultural manage-

ment future.

Parissa Haghirian is associate professor of international management at

the Faculty of Liberal Arts at Sophia University in Tokyo, Japan. She is a

visiting professor at Groupe HEC in Paris, Aalto University, Keio Business

School, and an adjunct professor at Temple University in Tokyo. Parissa

holds a master’s degree in Japanese Studies (University of Vienna) and

a master’s and doctorate degrees in International Management (Vienna

University of Business, Austria). She has published several books and ar-

ticles on the topic and is the author of Understanding Japanese Management

Practices.

SuCCeSSfu

l CroSS-Cu

ltura

l Ma

na

geM

ent

Ha

gH

iria

n

ISBN: 978-1-60649-120-1

9 781606 491201

90000

www.businessexpertpress.com

The International Business CollectionS. Tamer Cavusgil • Michael R. Czinkota • Gary KnightEditors

Page 2: Successful Cross-Cultural Management: A Guide for International Managers

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

PART 1 THREE MAIN CROSS- CULTURAL MANAGEMENT CHALLENGES . . . . . . . . . . . . . . . 5

Chapter 1 Does Culture Really Matter? . . . . . . . . . . . . . . . . . . . . . 7

Chapter 2 Dealing With Culture Shock and Emotional Stress . . . 19

Chapter 3 When in Rome, Shall I Do as the Romans Do? . . . . . . 29

PART 2 THEORETICAL FOUNDATIONS OF INTERNATIONAL AND CROSS- CULTURAL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Chapter 4 Objectives of Cross- Cultural Management . . . . . . . . . . 41

Chapter 5 How Does Culture Infl uence Management?. . . . . . . . . 53

PART 3 IMPROVING YOUR CROSS- CULTURAL MANAGEMENT SKILLS . . . . . . . . . . . . . . . . . . . . 73

Chapter 6 Cross- Cultural Competence: How Can I Learn and Improve It? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

PART 4 GUIDELINES FOR THE SUCCESSFUL INTERNATIONAL MANAGER . . . . . . . . . . . . . . . 91

Chapter 7 Communicating Effectively Across Cultures . . . . . . . . 93

Chapter 8 International Negotiations and Solving Cross- Cultural Confl icts . . . . . . . . . . . . . . . . . . . . . . 107

Chapter 9 Successful Leadership Across Cultures . . . . . . . . . . . . 123

Chapter 10 Creating Successful Cross- Cultural Training Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

bep-haghirian2.indb viibep-haghirian2.indb vii 12/19/11 11:41 AM12/19/11 11:41 AM

Page 3: Successful Cross-Cultural Management: A Guide for International Managers

viii CONTENTS

Chapter 11 Challenges Beyond Culture When Living and Working Overseas . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

bep-haghirian2.indb viiibep-haghirian2.indb viii 12/19/11 11:41 AM12/19/11 11:41 AM

Page 4: Successful Cross-Cultural Management: A Guide for International Managers

Introduction

Two decades ago Western companies could assume that consumers and

clients all over the world loved to buy their (Western) products and

wanted to be like them. Western ideas, movies, products, and “cul-

ture” were expected to have the most important infl uence in developing

economies all over the world. Business researchers expected customers to

become more alike, all wanting similar products, leading to greater prof-

its for companies providing them.

Well, things have turned out differently. Western companies are con-

fronted with millions of clients, business partners, and customers who

like their products, but who do not want to be like them. Suddenly they

face millions of self- confi dent consumers who demand products adapted

to their needs and interests. Former developing countries have turned

into economic power players who not only have massive market power,

but also have millions of well- educated and demanding customers. And

culture does its trick. Most of these power players— fi rst of all, China—

have taken the way business is done in the West only as an example, not

as a system to adopt. Their own cultures and traditions are too strong,

dominating many activities, and especially management activities. It is

naïve to believe that they should or will be abandoned within the next

generation or two.

Businesses and managers have felt these changes too. In an interview

series with long- term expatriate managers from American and European

managers that I conducted 10 years ago, most of my interview partners

liked the countries they had lived and worked in and remembered their

times in international management very fondly. They could only speak

their mother tongue and they all had a “colonial” attitude, perceiving

themselves as paternal and knowledgeable educators for their foreign

employees who “showed them how business is really done.”

This attitude is completely outdated today. Cross- cultural compe-

tence and the ability to adapt to local business practices are prerequisites

for international business. An increasing number of Western managers

bep-haghirian2.indb 1bep-haghirian2.indb 1 12/19/11 11:41 AM12/19/11 11:41 AM

Page 5: Successful Cross-Cultural Management: A Guide for International Managers

2 INTRODUCTION

are busy pleasing consumers in former developing countries and have learned to react quickly to changes in taste and interest. Goals must be achieved, money is at stake, and risks are high, even if management practices in international environments are not familiar. Linguistic mis-understanding, differing opinions, and problem solutions have to be dealt with and can often lead to confusion and stress. Many international managers therefore speak foreign languages, because if they do not, new clients can hardly be found and business will suffer. Business processes, too, had to be adapted to local preferences. In cases where this does not happen, business is lost and consumers are often gone forever.

Still, many businesses are not fi t for this challenge. Companies set up business processes in the past and did not anticipate that culture and adaption to other cultures would play such an important role. Interna-tional managers are in a dilemma. They know that they should adapt their thinking and processes to other cultures, but get little support in doing this. But how can this be done effi ciently? The number of ques-tions to be answered is seemingly endless:

• How can international managers fi nd out about the cul-tural preferences of my international clients, employees, and suppliers?

• Do they need to learn a foreign language or do all foreign busi-ness partners speak English?

• When is it time to adapt to local standards and when can they stick to their own country’s rules and regulations?

• How can cross- cultural confl ict and misunderstandings be avoided?

• How can culture shocks be avoided?• How can the corporation succeed in a globalized world?

In this book I want to provide answers for these questions. Build-ing on my experiences in bridging cultures for the last few decades this book discusses the most important challenges when doing international business. It targets practitioners in the fi eld of cross- cultural business and communication. The book not only discusses the general aspects of how cultures can differ, it also shows which effects these differences can have on business processes and business success.

bep-haghirian2.indb 2bep-haghirian2.indb 2 12/19/11 11:41 AM12/19/11 11:41 AM

Page 6: Successful Cross-Cultural Management: A Guide for International Managers

INTRODUCTION 3

Successful Cross- Cultural Management: A Guide for Managers will show you what happens when you are exposed to a foreign culture for the fi rst time and how you can react. It will help you fi nd out about differences between your cultural programming and others and will show you how to deal with culture shock. This book also provides an overview of which aspects of foreign cultures can really differ from your home culture.

The main part of the book discusses challenges that international managers will face in their overseas workplace. Here I will provide sugges-tions on how to deal with cross- cultural negotiations and team building and what international business ethics really means in a modern multi-national corporation. Finally I will present some guidelines on how to improve your cross- cultural management skills and how to prepare a multinational organization for a cross- cultural business future.

My aim is to provide practical advice on how to address and deal with cross- cultural challenges in business as well as in other aspects of life. This book is therefore not only written for international managers and students of international managers, but also for people who are interested in cross- cultural friendships and relationships.

Parissa HaghirianSophia University

Summer 2011

bep-haghirian2.indb 3bep-haghirian2.indb 3 12/19/11 11:41 AM12/19/11 11:41 AM

Page 7: Successful Cross-Cultural Management: A Guide for International Managers

PART 1

Three Main Cross- Cultural Management Challenges

bep-haghirian2.indb 5bep-haghirian2.indb 5 12/19/11 11:41 AM12/19/11 11:41 AM

Page 8: Successful Cross-Cultural Management: A Guide for International Managers

CHAPTER 1

Does Culture Really Matter?

Globalization comes with many cross- cultural challenges. A few decades

ago multinational companies could assume that the international busi-

ness world was based on Western standards and they could export their

traditional management styles around the world. But the picture in recent

years has changed fundamentally. In particular, the rapid and successful

development of former developing countries has strengthened the con-

fi dence of companies in these markets and will lead to the development

of many culturally different management styles. Today these markets

still present great business opportunities for many Western fi rms, as the

attitude toward business and management practices have changed very

much.

To succeed in international business these new expectations must be

met. Many emerging markets show a lot more confi dence in their “own

way of doing things” and expect their suppliers in the West to do so as

well. Cross- cultural issues therefore invade every aspect of business and

will continue to do so. Western managers need to question their tradi-

tional and familiar management practices and may have to adjust them to

conform to other cultures to secure long- term business success.

But this is a lot more challenging than many multinational corpo-

rations realize. For example, Toyota, a company that very successfully

internationalized and adapted to consumer wishes worldwide, still found

it extremely diffi cult to react in a Western (or non- Japanese) way to a

public- relations disaster. Even if companies perceive themselves as mod-

ern and international, their corporate culture and management operations

are dominated by the home country culture of the organization.

Cross- cultural management processes therefore play an increas-

ingly important role in international management. But only in recent

years, culture and cultural difference between management styles are

being more widely discussed in international management research

bep-haghirian2.indb 7bep-haghirian2.indb 7 12/19/11 11:41 AM12/19/11 11:41 AM

Page 9: Successful Cross-Cultural Management: A Guide for International Managers

8 SUCCESSFUL CROSS-CULTURAL MANAGEMENT

and in organizations. The reason: too big the fi nancial losses based on cross- cultural mistakes, too high the number of misunderstandings or confl icts.

Although the idea of “cross- cultural management” is more accepted, it is very diffi cult to develop this fundamental theory or to defi ne rules or measures to prevent errors. The reasons are found mainly in the complexity and exoticism of the subject. The more markets in which a company operates, the more multicultural staff, and their attitudes must be observed and learned. This makes it even more diffi cult for companies to prepare employees for possible challenges in international business.

This chapter introduces basic ideas about culture and how infl uential it is on management processes. The focus lies on national culture, and I will explain major aspects to consider when doing business overseas. Upon completion you will understand

• why business is not the same in every country;• why culture plays an increasingly important role in interna-

tional management;• which aspects of culture are most important when managing

overseas;• why we experience cross- cultural confl icts; and• why it is so diffi cult to change your cultural program.

Doing Business in Foreign Countries

“Business is the same all over the world” is a statement that we still hear very often. But this is not quite true anymore. As the following case study shows, business is very clearly about money all over the world, but the way it is conducted differs according to culture. The following conver-sations are typical cross- cultural negotiation between U.S. and Asian business people.

bep-haghirian2.indb 8bep-haghirian2.indb 8 12/19/11 11:41 AM12/19/11 11:41 AM

Page 10: Successful Cross-Cultural Management: A Guide for International Managers

DOES CULTURE REALLY MATTER? 9

U.S. Negotiations in Japan

Sam Brown is an international sales representative for a U.S. fi rm.

He visits Japan to meet Mr. Yamamoto, who is a procurement man-

ager at a big Japanese fi rm. When he enters the meeting room right at

four o’clock, the meeting time, Mr. Yamamoto awaits him already. To

lose no time, right after a short greeting Sam starts to discuss major

issues.

Brown: I printed out an overview on our latest products, their

prices, and their features. Maybe you would like to have a

look at them?

Yamamoto: Today is a nice day.

Brown: Well, yes. Nice weather, a bit hot today. But let’s get

back to the topic. I think this product is the one that your

company was most interested in.

Yamamoto: Hhmm.

Brown: I can only recommend it. It’s our best seller.

Yamamoto: Hmm.

Brown: Is price the problem?

Yamamoto: Well . . .

Brown: Of course, I can give you a better price if you like.

Yamamoto: I will have to talk to my superiors.

Brown: Is it the price? Well I can give you a 5% discount if

you take a certain amount.

Yamamoto: Yes.

Brown: Do we have a deal?

Yamamoto: Hai. I will discuss this with my superiors.

Brown: Great!

On the way back to the hotel Mr. Brown calls his manager back in

the United States and tells him that he is very sure they got the deal,

but that he had to lower the price a bit. He is very content with the

meeting’s outcome. What he does not know is that the deal will not

take place.

bep-haghirian2.indb 9bep-haghirian2.indb 9 12/19/11 11:41 AM12/19/11 11:41 AM

Page 11: Successful Cross-Cultural Management: A Guide for International Managers

10 SUCCESSFUL CROSS-CULTURAL MANAGEMENT

So why did Sam not get the deal? From his point of view he did every-thing right. He was on time, talked openly and in a friendly way about the company and its products, promoted and praised the product, and even gave a discount in the end. He is a successful salesperson, and his style has proven very effective over the past years. Mr. Yamamoto, however, did not perceive the meeting with Sam the same way. He and his colleagues did not know the U.S. company very well yet. He was expecting to build a stronger relationship with Sam, learn more about the company and its products, and after this, go back to his colleagues to report. They would then make a decision about whether to buy the product or not and let Sam know in a few weeks. Sam’s direct selling was perceived as aggressive and impolite and left a bad impression with Mr. Yamamoto.

Stories like this are common in today’s international business. Deals fail and the reasons are unclear. Both negotiators, Sam and Mr. Yama-moto have a very particular idea about how business is done. In the past and during most of their careers both have been very successful with this approach, advanced far in their careers, and cannot imagine that business can be completely different somewhere else. So they both continue in their traditional ways and when meeting, obvious differences cannot be dealt with.

Experiencing Cultural Challenges When Doing Business

At the beginning of every cross- cultural management process is an encounter between two or more members of different cultures. In this encounter both participants communicate, watch, and react to each oth-er’s behavior. This behavior and communication is often not interpreted in the correct way, but according to the cultural program of the observer. Because it is diffi cult to understand the other’s thinking, interpretation is often wrong and does not allow insights into the attitudes and values of the communicators or interactors.

These misunderstandings do not lead to the expected outcome. Sam did not sell his product; Mr. Yamamoto, on the other hand, experienced frustration with the U.S. negotiation style. Future business interaction may also be impossible after that meeting. This cross- cultural business negotiation clearly failed. Many international business encounters end

bep-haghirian2.indb 10bep-haghirian2.indb 10 12/19/11 11:41 AM12/19/11 11:41 AM

Page 12: Successful Cross-Cultural Management: A Guide for International Managers

DOES CULTURE REALLY MATTER? 11

in emotional stress and the feeling of helplessness. And, even worse, both communicators do not get information on how to behave differently or to interpret the situation. Negative stereotypes or prejudices are strength-ened and can even lead to a complete collapse of the business relationship between the two companies.

In international management culture is certainly not the only impor-tant factor.1 Next to cultural differences, local industry structure and business practices, laws and the economic situation, and customer taste and consumer behavior also play important roles when developing busi-ness practices for overseas markets or when attempting to sell a product in a foreign country. Thus, cross- cultural management is a topic often neglected in business schools and management programs or considered a “soft skill,” less important than hard skills like operations management or other classic management disciplines. Many managers still believe that business practices and industry rules are the same in most places and cannot really differ so much even when doing it on the other side of the globe. So, culture and cultural differences do matter in international business and if ignored can pose serious barriers to international business success. But what is culture really about and how does it infl uence our management practices?

Does Culture Really Matter?

There are numerous concepts describing culture and how it infl uences our behavior. The most popular is the iceberg model, in which we can see that only some aspects of culture are visible to us and many more are hidden. Like an iceberg where we can only see the top reaching out of the water, culture only shows us a few visible aspects and hides most of it under the sea (or in our case in societies that we visit or encounter).

Culture can best be described through three main concepts: values, attitudes, and behavior. All three signify culture and allow us to differ-entiate from other cultures. “The cultural orientation of a society refl ects the complex interaction of values, attitudes, and behaviors displayed by its members.”2 Values and attitudes shape and infl uence actions and behavior of human beings. They cannot be seen and understood easily. The visible parts of culture are behavior, language, symbols, rituals, and artifacts.

bep-haghirian2.indb 11bep-haghirian2.indb 11 12/19/11 11:41 AM12/19/11 11:41 AM

Page 13: Successful Cross-Cultural Management: A Guide for International Managers

12 SUCCESSFUL CROSS-CULTURAL MANAGEMENT

Values

“Values . . . refl ect general beliefs that either defi ne what is right and wrong or specify general preferences.”3 Values clearly defi ne priorities set in a society; they tell us which behavior is accepted in a society or country and which is not. They are often expressed in forms of goals or ideals and give us guidelines for orientation. On top of a societal value system each person may have a personal value system based on upbringing or religious orientation. Values are so deeply embedded in our psyche that we do not question them at all. A classic example of a Western value is self- fulfi llment or the wish, intention, or even the feeling that it is an individual’s right to live exactly the way he or she thinks is most fulfi lling. Many Asian cultures, however, do not look at the world in the same way; living in cooperation and harmony with other members of society is most important, even if one’s own wishes cannot always be fulfi lled.

Attitudes

The second layer is attitude, which can be described as that which “expresses values and disposes a person to act or react in a certain way toward something. Attitudes are present in the relationship between a

BehaviorSymbols

Attitudes

Values

RitualsArtifacts

Language

Figure 1.1. Layers of culture.

bep-haghirian2.indb 12bep-haghirian2.indb 12 12/19/11 11:41 AM12/19/11 11:41 AM

Page 14: Successful Cross-Cultural Management: A Guide for International Managers

DOES CULTURE REALLY MATTER? 13

person and some kind of object.”4 Attitudes express how certain aspects

are managed; for example, the cooperation between people in a fi rm or

the interaction between individuals. They can be best expressed with the

phrases, “It is better to” or “I should” or “I’d rather.” In our example we

can defi ne the attitudes in U.S. society as follows. “It is better to fulfi ll

my dreams even if other members of society do not agree,” meaning that

it is socially acceptable to take care of one’s well being fi rst, not thinking

of others right away (of course this does not naturally mean that other

individuals have to be treated badly).

In Asian societies, however, this is not an acceptable attitude. Here

taking care of one’s own wishes without considering others is considered

selfi sh and ignorant and will lead to strong negative reaction in these soci-

eties, such as dismissal from the group or organization. The attitude most

acceptable here is, “It is better to fi nd solutions for individual problems

that are in accordance with other members of society” or “I’d rather listen

to my peers, parents, and group members to support society by appropri-

ate actions.”

Behavior

Both values and attitudes build the foundations of our behavior. Behav-

ior can be defi ned as “any form of human action.”5 This behavior also

includes communication and any form of human interaction. Behavior

is the visible part of culture— it is the tip of the iceberg. In our case study

differences in values and attitudes lead to very different actions in the

end. Whereas Sam likes to promote his ideas and consequently his prod-

uct, his Japanese counterpart expects to be treated and taken care of as a

group member. Sam speaks out openly about what he expects, would like

to happen, and can do, but Mr. Yamamoto is vague and refers to group

members.

Other Visible Parts of Culture

Next to behavior and communication, which we can easily observe in our

business lives, there are other visible parts of culture that should not be

neglected.

bep-haghirian2.indb 13bep-haghirian2.indb 13 12/19/11 11:41 AM12/19/11 11:41 AM

Page 15: Successful Cross-Cultural Management: A Guide for International Managers

14 SUCCESSFUL CROSS-CULTURAL MANAGEMENT

Artifacts

Artifacts or things play an important role in every culture. Things sur-round us and often have similar meanings in many cultures. Status symbols also fall in this category. They show and communicate a certain status of their owners and allow them to communicate aspects of their lives nonverbally. Cars, for example, are used to transport individuals, but can also express status and fi nancial success. Typical Western status sym-bols in corporations are corner offi ces, although often not understood as status symbols in other countries. In Asia, where employees— even managers— work in cubicles in a big offi ce, working separately in a differ-ent room is sometimes perceived as antisocial and leads to fear of missing out on important company communication and rumors.

Symbols

Symbols, however, can also be words, gestures, signs, or colors that hold a special meaning for members of a certain culture. They are often visible when visiting a foreign culture, such as signs on religious sites, colors of textiles in a country, or certain gestures or expressions that are unique in a certain place, but cannot be understood without explanations. The color white, for example, symbolizes purity in many Western cultures, but does not have this meaning in other places. Symbols can be very easily

Table 1.1. Behavior, Attitudes, and Values as Expressions of Cultural Programs

Layer of culture Example of Western culture (USA)

Example of Asian culture (Japan)

Behavior and communica-tion(visible)

Contradiction, if an opin-ion is not shared, pushing one’s idea or opinion

No open contradiction, at-tempts to ease conversation

Attitude(invisible)

It is better to fulfi ll one’s dreams even if other mem-bers of society do not agree or like it

It is better to fi nd solutions for individual problems that are in accordance with other members of society

Values(invisible)

Self- fulfi llment Living in harmony with other members of society

bep-haghirian2.indb 14bep-haghirian2.indb 14 12/19/11 11:41 AM12/19/11 11:41 AM

Page 16: Successful Cross-Cultural Management: A Guide for International Managers

DOES CULTURE REALLY MATTER? 15

misunderstood and have often led to misunderstandings in cross- cultural management practices. Especially in international marketing, all sym-bols, colors, or objects used in advertising should be carefully checked by local employees and market researchers.

Rituals

Rituals are conventionalized patterns of behavior in certain situations, for example, certain routines when greeting or introducing a person. Rituals play a very important role in supporting cooperation between members of a culture by having very clear instruction on how they should be per-formed. They provide guidance to manage and solve diffi cult situations and major questions in each community. A good example is the marriage ritual, which differs greatly among cultures, but in all of them shows how important the bond between two people and families is for society.

In a corporate context, rituals support cooperation among company members and the coordination of management practices and tasks. Com-pany dinners, for example, improve relationships between clients and the fi rm, increase trust, and strengthen the relationships between all partici-pants. Many corporations have special events to greet and integrate new employees and show them that they are welcome to the fi rm and help them become part of the community. Here rituals are used to support corporate goals in communicating appreciation and support.

Why Are There Cross- Cultural Conflicts?

The simple model explains how our behavior and our management prac-tices are infl uenced by our national culture. But how does cross- cultural confl ict occur? How can a cross- cultural encounter end in confl ict?

When looking at Table 1.1 again, we can see that most parts of the model are not very obvious to people of the other culture. Meeting peo-ple who have a different cultural background, we only see their behavior but hardly ever learn much about their values and attitudes. In our ear-lier example an American’s direct expression of interest or in other cases disagreement may lead to shock and stress when being observed by a Japanese individual. On the other hand, a Japanese individual’s indirect and vague way of communicating and expressing opinions may lead to an

bep-haghirian2.indb 15bep-haghirian2.indb 15 12/19/11 11:41 AM12/19/11 11:41 AM

Page 17: Successful Cross-Cultural Management: A Guide for International Managers

16 SUCCESSFUL CROSS-CULTURAL MANAGEMENT

impatient reaction on the U.S. side. In any event both parties misunder-stand each other.

The different ways of dealing with disagreement are obvious; what is not understood between the negotiation partners are the attitudes and values behind them. These differences, however, help us understand the other’s behavior, maybe show more patience, and also develop new prac-tices, communication styles, and processes that may be more useful in reaching negotiation goals.

Little misunderstandings as described earlier can lead to major con-fl icts if they are not addressed and taken care of by all participants. In today’s international management, these misunderstandings increase and often have very negative effects on the workplace, its practices, and in the long run, also on profi ts and market success of a fi rm.

Table 1.2. Explaining Cross- Cultural Confl ict

Visibility to members of other cultures

Level Example Western culture (USA)

Cross- cultural confl ict potential

Example Asian culture (Japan)

Visible Behavior, communica-tion (can be observed)

Contradiction, if an opinion is not shared

Different reac-tions can lead to misunder-standing or even confl ict

No open contradiction

Invisible Attitude (hidden to the other party)

It is better to fulfi ll one’s idea even if other members of society do not agree

Interpretation of U.S. behav-ior is based on Japanese values and attitudesInterpretation of Japanese be-havior is based on U.S. values and attitudes

It is better to fi nd solutions for individual problems that are in ac-cordance with other members of society

Invisible Values (hidden to the other party)

Self- fulfi llment Living in harmony with other members of society

bep-haghirian2.indb 16bep-haghirian2.indb 16 12/19/11 11:41 AM12/19/11 11:41 AM

Page 18: Successful Cross-Cultural Management: A Guide for International Managers

DOES CULTURE REALLY MATTER? 17

Recognizing Your Own Cultural Program

Cross- cultural misunderstandings often have very deep roots. Even if we speak with people in English and communicate directly what we want to say, the message seems to come across as different. Recognizing the strength of our cultural programs in business is a diffi cult task. “Our company is very successful and we have always done things like this,” “We use international standards,” or “How can others not see that this is the best way to do things?” are sentences that I often hear from MBA students or consulting clients when discussing cross- cultural confl icts in their workplace.

Most of us, being born and bred in a very particular cultural envi-ronment, can only perceive and understand the world, our deeds, and our counterparts’ reactions through our own cultural perspective. This perspective is a strong fi lter through which we understand, interpret, and process information in a particular way. And in most cases, we do not recognize this fi lter. Our own culture and way of doing business seems so very logical and “normal” that we can hardly think of a better or differ-ent way of doing things and managing in our fi rms. But this view is also true for managers who grew up on the other side of the world; they have their own (very logical and often very successful) ideas about how to do business.

Summary

When we speak of culture in a business context, we talk mostly about national culture. Culture is a concept that is diffi cult to describe and ana-lyze. To simplify things, we can divide culture into visible and invisible parts. Visible parts of culture are fi rst of all our actions, communication symbols, artifacts, and rituals. Beyond those visible aspects culture con-sists mainly of invisible aspects such as values and attitudes.

• Values are defi ned by very general rules that defi ne acceptable and nonacceptable behavior (good and bad, right or wrong) in each culture. An example of a value is individualism, which can be found in most Western industrialized countries, or the wish to seek self- fulfi llment. In Asian cultures, however, the wish

bep-haghirian2.indb 17bep-haghirian2.indb 17 12/19/11 11:41 AM12/19/11 11:41 AM

Page 19: Successful Cross-Cultural Management: A Guide for International Managers

18 SUCCESSFUL CROSS-CULTURAL MANAGEMENT

to create a harmonious environment with one’s peers is a most important value that infl uences all other cultural aspects.

• Attitudes are based on those values and refer to an expres-sion of a value as it relates to a tendency of behavior. They are expressed mostly by sentences beginning with, “It’s better to . . .” or “I should . . .” An example for an attitude based on individualistic values is the intention to take care of one’s inter-est even if other members of a society do not support this.

• The most important and visible aspect of a culture is behav-ior. Behavior is based on values and attitudes, which strongly defi ne our behavior. Action based on individualist values and attitudes are contradictions in a discussion of performing very individualistic tasks. Behavior is the most visible part of cul-ture; values and attitudes cannot always be seen or understood as easily.

Cross- cultural misunderstandings are based on the fact that we only see each other’s behavior, but not the attitudes and values that explain it. If a Western person with individualistic values and attitudes openly contradicts other team members or even his or her boss, this may be con-sidered very rude and inappropriate by an Asian person who often has more group- oriented values and attitudes and would rather not speak up to avoid possible confl ict. In most cases only behaviors or messages are exchanged, whereas values and attitudes are hardly communicated. International managers can inadvertently make mistakes when commu-nicating with foreign business partners or employees.

bep-haghirian2.indb 18bep-haghirian2.indb 18 12/19/11 11:41 AM12/19/11 11:41 AM