INTRODUCTION TO CULTURE CASO DE UN INVERSOR HOLANDES EN ARGENTINA

COMBINANDO TEORIA Y PRACTICACON ENFASIS SOBRE DIFFERENCIAS CULTURALES

Dr. Gert Jan Mulder DBA MBA

PILAR,

Noviembre 27, 2009

EL CIELO ES ….. … where the police are British

… the cooks are French

… the mechanics are German

… the lovers are Italian

… and football players are…

EL INFIERNO ES ….. … where the police are Italian

… the cooks are British

… the mechanics are French

… the lovers are German

… and football players are…

TODO DEPENDE DEL CONTEXTO!

ECONOMIAS Y CLIMA DE NEGOCIOS EN “EUROPA”;

PBI4

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TODO DEPENDE DEL CONTEXTO!

CONTEXTO, ECONOMIAS Y CLIMA DE NEGOCIAS EN “AMERICA LATINA”;

ENTONCES, PARA MI, LO FUNDAMENTAL ES: Entender las diferencias culturales:

– Contexto, social, política, económica, financiera– Realidades – Perspectiva historia– Comportamiento humana

Da repuestas a las preguntas; POR DONDE VIENEN ESTAS DIFERENCIAS Y COMO LO PUEDES MANEJAR?

Cross-cultural studies and their practical implications - measuring differences:

Objectivos de la presentacion• Que es cultura? What is culture?• Literatura/teoria extensive literature review;

sobre todo Hofstede G., (1991) Cultures and organisations – Software of the mind; Intercultural cooperation and its importance for survival, McGraw-Hill, New York

• Presentacion del caso de un inversor holandes

“Possibly one of the many reasons why the culture concept has been resisted”, Hall (1976), writes, “ is that it throws doubt on many established beliefs. Fundamental beliefs….. are shown to vary widely from one culture to the next. It is easier to avoid the idea of the culture concept than to face up to it”

Cultural Research

Intercultural focuses on the penetration by a member of one culture into another culture

Cross-cultural deals with similarities and differences between cultures

– (Landis and Wasilewski, 1999)

Meaning of culture Culture one: (narrow sense) civilisation -

refinement of the mind: education, literature, language & arts

Culture two: Fundamental human processes, thinking, feeling, acting, greeting, eating, showing or not showing, distances, time, making love and many others– Hofstede (1980, 1991) Hall (1973)

Three levels of Mental programming (Hofstede, 1991)

PERSONALITY

CULTURE

HUMAN NATURE

Specific to individual

Inherited and learned

Specific to group or category

Universal

Learned

Inherited

Risk of stereotyping

French anthropologist, Claude Lévi-Strauss (1988), gave his definition of cultural relativism affirming that one culture has no absolute criteria for judging the activities of another culture as “low” or “noble”. However, every culture can and should apply such judgment to its own activities, because its members are actors as well as observers.

Hofstede Culture Consequences (1980)

IBM based research(VSM)116.000 questionnaires, 50.000 respondents, 40 countries

Surveys held twice 1968 and 1972 Role of symbol, heroes, rituals and

values Four dimensions (later five) of culture

Manifestations of culture

Symbols

Heroes

Rituals

Values

--Practices--

Dimensions of culture

· Power Distance · Individualism versus Collectivism · Femininity versus Masculinity · Uncertainty Avoidance and · Long-Term Orientation.

»Hofstede (1980, 1991)

The concept of power distance

1. The mere exercise of power will give satisfaction

2. The more powerful individual will strive to maintain or to increase the power distance to the less powerful person

3. The greater this distance from the less powerful person, the stronger the striving to increase it

4. Individuals will strive to reduce the power distance between themselves and the more powerful person

5. The smaller this distance from the more powerful person, the stronger the tendency to reduce it

6. The downward tendencies of the powerful to maintain the power distance, and the upward power distance reduction of the less powerful, reinforce each other.

Mulder (1977)

Core of culture is formed by values (Hofstede 1991) - and norms (Trompenaars 1998)

Values, defined by each culture in terms of “good” and “bad” (for example: dirty vs clean, ugly vs beautiful, unnatural vs natural, abnormal vs normal, irrational vs rational )

Norms, defined as the mutual sense a group has of what is “right”and what is “wrong” (example laws and rules, social control)

Trompenaars (1998) argues that a culture is relatively stable when norms reflect the values of a group. When not, destabilising tension occurs (Argentina).

Kluckhohn and Strodtbeck (1961) findings fundamental for Hall, Hofstede & Trompenaars)

Five universal problems to mankind, where all societies are aware of all possible kinds of solutions, but prefer them in different order:– What is the relationship of the individual to others?

(relational orientation)– What is the temporal focus of human life? (time orientation)– What is the modality of human activity? (activity orientation)– What is a human being's relation to nature? (Man-nature

orientation)– What is the character of innate human nature? (human

nature orientation) – (Kluckhohn and Strodtbeck (1961)

Interesting argument by Hall (1976)

………the natural act of thinking is greatly modified by culture. Western man uses only a small fraction of his mental capabilities; there are many different and legitimate ways of thinking; we in the West value one of these ways above all other - the one we call "logic", a linear system that has been with us since Socrates. Western man sees his system of logic as synonymous with the truth. For him it is the only road to reality.

CULTURES AND ORGANISATIONS “software of the mind”

(Geert Hofstede) More equal than others Inequality in society I, we and they He, she and (s) he What is different, is dangerous Confucian dynamism – and growth Conclusions

Cultural Differences between South America and the Netherlands…..

Power distance

Indivi- dualism

Masculinity

Uncertainty avoidance

Low High

Low High

Low High

Low High

Arg UruBrazNet

ArgUruBraz Net

ArgUru BrazNet

Arg UruBrazNet

Argentina UruguayBrazil Netherlands

Implications for the organisational structure ….

South America:

a pyramid

Netherlands:

a network

More equal than othersGeneral norm, family, school and workplace

SMALL POWER DIFFERENCE Inequalities among people should be

minimized Parents treat children as equals – and

vice-versa Teachers expect initiatives from students

in class Students treat teachers as equals Hierarchy in org. means an inequality of

roles, only for convenience Decentralization is popular Narrow salary range between top and

bottom org Subordinates expect to be consulted The ideal boss is a resourceful democrat Privileges and status symbols are

frowned upon(Holland’s prime minister going by bike, and camping)

LARGE POWER DIFFERENCE Inequalities among people are both

expected and desired Parents teach children obedience Children treat parents with respect Teachers are expected to take all

initiatives in class Students treat teachers with respect Hierarchy in org reflects the existing

inequality between higher ups and lower downs

Centralization is popular Wide salary range between top and

bottom org Subordinates expect to be told what to

do The ideal boss is an autocrat or good

father Privileges and status symbols for

managers are both expected and popular (Menem, Berlusconi, Sarkozy)

RESULTADOS DEL ENCUESTA USTEDES;

–PDI -6–IDV 69–MAS 65–UIA 61–LTO 39

PDI• Netherlands 38• USA 40• Hong Kong 68• ARGENTINA 49

IDV• Netherlands 80• USA 91• Hong Kong 25• ARGENTINA 46

MAS• Netherlands 14• USA 62• Hong Kong 57• ARGENTINA 56

UIA• Netherlands 53• USA 46• Hong Kong 29• ARGENTINA 86

LTO• Netherlands 44• USA 29• Hong Kong 96• ARGENTINA NA

More equal than othersIn politics and ideas

SMALL POWER DIFFERENCE The use of power should be legitimate

and is subject to criteria of good and evil Skills, wealth, power and status need not

go together The middle class is large All should have equal rights Powerful people try to look less powerful

than they are Power is based on formal position,

expertise and ability to give rewards Changing political system through

evolution Use of violence in domestic politics is

rare Political spectrum shows strong centre

and weak right and left wings Small income differentials in society

(progressive tax system) Management theories focus on role of

employees

LARGE POWER DIFFERENCE Might prevails of right: whoever holds the

power is right and good Skills, wealth, power and status should go

together (Berlusconi) The middle class is small The powerful have privileges Powerful people try to look as impressive

as possible Power is based on family or friends,

charisma, and ability to use force The way to change political system is by

changing people at the top (revolution) Domestic political conflicts frequently lead

to violence Political spectrum, of allowed to be

manifested, shows weak centre and strong wings

Large income differentials in society, further increased by tax system

Management theories focus on managers (and leaders)

I, WE AND THEYGeneral norms, family, school and workplace

Collectivist People are born into extended families or

other in-groups which continue to protect them in exchange for loyalty

Identity is based on social network to which one belongs

Children learn to think in terms of “we” Harmony should always be maintained

and direct confrontations avoided High context communication (Hall) Purpose of education is learning how to

do Diplomas provide entry to higher status

groups Relationship employer-employee is

perceived in moral terms, like a family link

Hiring and promotion decisions take employees in-group into account

Management is Management of groups Relationship prevail over task

Individualist Everyone grows up to look after him-

herself and his/her immediate (nuclear) family only

Identity is based on individual Children learn to think in terms of “I” Speaking one’s mind is a characteristic

of an honest person Low context communication (Standard

operating procedures) Purpose of education is learning how to

learn Diplomas increase economic worth

and/or self-respect Relationship employer-employee is a

contract supposed to be based on mutual benefits

Hiring and promotion decisions are supposed to be based on skills and rules only

Management is management of individuals

Task prevails over relationship

I, WE AND THEYPolitics and Ideas

Collectivist Collective interests prevails over

individual interest Private life is invaded by groups Opinions are predetermined by group

membership Laws and rights differ by group Low per capita GDP Dominant role of the state in economic

system Economy based on collective interests Political power exercised by interest

groups Press controlled by the state Imported economic theories largely

irrelevant because unable to deal with collective and particularistic interests

Ideologies of equality prevail over ideologies of individual freedom

Harmony and consensus in society are ultimate goals

Individualist Individual interest prevail over collectivist

interests Everyone has a right to privacy Everyone is expected to have a private

opinion Laws and rights are supposed to be the

same for all High per capita GDP Restrained role of the state in the

economic system Economy based on individual interests Political power exercised by voters Press freedom Native economic theories based on

pursuit of individual self-interests Ideologies of individual freedom prevail

over ideologies of equality Self-actualisation by every individual is

ultimate goal

HE, SHE AND (S) HEGeneral norms, family, school and workplace

Feminine DOMINANT VALUES IN SOCIETY ARE

CARING FOR OTHERS AND PRESENVATION PEOPLE AND WARM RELATIONSHIPS ARE

IMPORTANT EVERYBODY IS SUPPOSE DTO BE MODEST BOTH MEN AND WOMEN ARE ALLOWED TO

BE TENDER AND TO BE CONCERNED WITH RELATIONSHIPS

IN FAMILY BOTH FATHERS AND MOTHERS DEAL WITH FACTS AND FEELINGS

BOTH BOYS AND GIRLS ARE ALLOWED TO CRY, BUT NEITHER SHOULD FIGHT

SYMPATHY FOR THE WEAK AVERAGE STUDENT IS THE NORM FAILING IN SCHOOL IS A MINOR NORM FRIENDLINESS IN TEACHERS

APPRECIATED BOYS AND GIRLS STUDY THE SAME

SUBJECTS WORK IN ORDER TO LIVE MANAGERS USE INTUITION AND STRIVE

FOR CONSENSUS RESOLUTION OF CONFLICTS BY

COMPROMISE

Masculine DOMINANT VALUES IN SOCIAETY ARE

MATERIAL SUCCESSS AND PROGRESS MONEY AND THINGS ARE IMPORTANT MEN ARE SUPPOSED TO BE ASSERTIVE,

AMBITOUS AND TOUGH WOMAN ARE SUPPOSED TO BE TENDER

AND TO TAKE CASE OF RELATIONSHIPS IN THE FAMILY, FATHERS DEAL WITH

FACTS AND MOTHERS WITH FEELINGS GIRLS CRY, BOYS DON’T: BOYS SHOULD

FIGHT BACK WHEN ATTACKED, GIRLS SHOULDN’T FIGHT

SYMPATHY FOR THE STRONG BEST STUDENT IS THE NORM FAILING IN SCHOOL IS A DISASTER BRILLIANCE IN TEACHERS APPRECIATED BOYS AND GIRLS STUDY DIFFERENT

SUBJECTS LIVE IN ORDER TO WORK MANAGERS EXPECTED TO BE DECISIVE

AND ASSERTIVE RESOLUTION OF CONFLICTS BY FIGHTING

THEM OUT

HE, SHE AND (S) HEIn politics and ideas

Feminine Welfare society ideal The needy should be helped Permissive society Small and slow are beautiful Preservation of the environment

high priority Government spends large portion of

budget to development aid Government spends small portion of

budget on defence International conflicts to be resolved

through diplomacy and dialogue Large number of women in elected

political positions Women liberalization means that

mean and women should take equal shares both at home and at work (Sweden)

Masculine Performance society ideal The strong should be supported Corrective society Big and fast are beautiful Maintenance of economic growth

should have highest priority Government spends small portion of

budget to development aid Government spends large part to

defence International conflicts to be resolved

by a show of strengths or by fighting Relatively small number of women

in elected political positions Women liberalization means that

women will be admitted to positions hitherto only occupied by men

WHAT IS DIFFERENT IS DANGEROUSGeneral norms, family, school and workplace

Weak uncertainty avoidance: Uncertainty is a normal feature of life and

each day is accepted as it comes Los stress: subjective feeling of well-

being Aggression and emotions should not be

shown Comfortable in ambiguous situations and

with unfamiliar risks Lenient rules for children on what is dirty

and taboo What is different, is curious Students comfortable with open-ended

learning situations Teachers may say; “I don’t know” There should not be more riles than

necessary Time is a framework of orientation Comfortable feeling when lazy; hard-

working only when necessary Precision and punctuality have to be

learned Motivation by achievement and esteem

Strong uncertainty avoidance The uncertainty inherent in llife is felt as

a continuous threat which must be fought High stress: subjective feeling of anxiety Aggression and emotions may at proper

times and places be ventilated Acceptance of familiar risks: fear of

unfamiliar risks Tight rules for children on what is dirty

and taboo What is different is dangerous Students comfortable in structured

learning situations and concerned with “the right answer”

Teachers supposed to have all the answers

Emotional need for rules, even if these will never work

Time is money Emotional need to be busy; inner urge to

work hard Precision and punctuality come naturally Motivation by security and esteem.

WHAT IS DIFFERENT IS DANGEROUSIn politics and Ideas

Weak uncertainty avoidance: Few and general laws and rules If rules cannot be respected, they should

be changed Citizen competence versus authorities Citizen protest acceptable Citizen positive towards institutions Civil servants positive towards political

process Tolerance, moderation Positive towards young people Regionalism, internationalism, attempts

to integrate minorities Belief in generalists and common sense Many nurses, few doctors One group’s truth should not be imposed

on others Humans rights: nobody should be

persecuted for their beliefs Science: relativism and empiricism Scientific opponents can be personal

friends

Strong uncertainty avoidance Many and precise laws and rules If rules cannot be respected, we are

sinners and should repent Citizen incompetence versus authority Citizen protest should be repressed Citizen negative towards institutions Civil servant negative towards political

process Conservatism, extremism, law and order Negative attitudes towards young Nationalism, repression of minorities Belief in experts and specialisation Many doctors, few nurses There is only one truth and we have it Religious, political and ideological

fundamentalism and intolerance (K) Tendency towards grand theories Scientific opponents cannot be personal

friends

Confucian dynamism – and growth

Confucianism is not a religion, but a set of pragmatic rules for daily life derived from what Confucius saw as the lessons of Chinese History. Their principles being:– The stability of society is based on unequal relationships

between people: ruler—subject, father-son, older brother – younger brother, husband – wife, senior friend – junior friend

– The family is the prototype of all social organizations; all members to a group (not losing face, or dignity)

– Virtuous behaviour towards others consists of not treating others as one would not like to be treated oneself

– Virtue with regard to one’ tasks in life consists of trying to acquire skills and education, working hard, not spending more than necessary, being patient and persevering.

Confucian dynamism – and growth

Short term orientation: Respect for traditions Respect for social and status

obligations regardless of costs

Social pressure to keep up with the Joneses, even if it means overspending

Small savings quote, little money for investment

Quick results expected Concern with face Concern with possession the

truth

Long term orientation Adaptation of traditions to a

modern context Respect for social and status

obligations, within limits Thrift, being sparing with

resources Large savings quote, funds

available for investment Perseverance towards long

term results Willingness to sub-ordinate

oneself for a purpose Concern with respecting the

demands of virtue

DISTRIBUTION OF THE BRAIN – and the problem of the President

Left Brain Right Brain Logical Random Sequential IntuitiveRational Holistic

Analytical SynthesizingObjective Subjective

Looks at parts Looks at wholes

FUKUYAMA- LOW and HIGH trust societies …..Later on I came across a notion by Fukuyama about trust[1];

he proposes that it is the social capital of a given country (or even area within a country) that defines how its economy functions. Along the way, he examines countries around the globe, but focusing primarily on China and Italy, France and Korea (as low-trust societies), and Japan, Germany and the United States (as high-trust societies). Economists express these differences in transaction costs: in high-trust societies these costs are low, given that people do what is expected of them, where in low-trust societies these costs are high, given that one needs to control what people do. There are some countries in Latin America where Presidents do not empower (or trust) neither ministers, institutions nor businesses and instead want to be in control themselves of practically everything, they sometimes even want to control the price of toilet paper.

[1] Trust: The Social Virtues and The Creation of Prosperity by Francis Fukuyama

DIFERENCIAS Y FORMAS DE LIDERASGO – LA PRACTICA

“Femininity” versus “Masculinity” Dilemas y “dualities” Normas y valores

?

LAS DOS MUJERES MAS PODEROSAS DEL MUNDO

Alemania – “machismo”