Cross Cultural Management and Negotiation Practices Chapter 2 – Cultural Dimensions and Research Dr. Bahaudin G. Mujtaba © Bahaudin G. Mujtaba Chapter Topics Chapter 2 – Cultural Dimensions and Research – – – – The Global Environment of management Hall and Hall’s Time Orientations Kluckhohn and Strodtbeck Andre` Laurent’s Study on Power and relationship – Get Hofstede's Cultural Dimensions – Fons Trompanaar’s Cultural Dimensions – Global Mindset and Learning © Bahaudin G. Mujtaba Diversity Management • Diversity management is the process of becoming culturally competent and conscious by understanding the needs, wants, desires, strengths, weaknesses, beliefs, and values of each team member while providing him or her the opportunity to contribute to the collective genius of the whole; thereby, creating synergistic results that are equal to or greater than the sum of the individual parts. • “Diversity consciousness” can be seen as the proactive and progressive activation of the mind or senses to create awareness and develop understanding and skills in the area of diversity. It requires life-long soul searching, selfreflection, and learning. It requires diversity education strategies that enable one to develop diversity management skills. © Bahaudin G. Mujtaba THE KLUCKHOHN-STRODTBECK MODEL • 1. What is the nature of people? – Good (changeable/unchangeable)/ Evil (changeable/unchangeable)/ A mixture of good and evil • 2. What is the person’s relationship to nature? – Dominant/ In harmony with nature/ Subjugation • 3. What is the person’s relationship to other people? – Lineal (hierarchical)/ Collateral (collectivist)/ Individualist • 4. What is the modality of human activity? – Doing/ Being in becoming/ Being • 5. What is the temporal focus of human activity? – Future/ Present/ Past • 6. What is the conception of space? – Private/ Mixed/ Public © Bahaudin G. Mujtaba High Context Cultures • • • • • Long lasting relationships Shared codes of communication Superiors are held responsible Verbal agreements are common Insiders and outsiders are closely distinguished and • Cultural patterns change slowly. © Bahaudin G. Mujtaba Low Context Cultures • Short-term relationships • Communication is explicit • Authority is included at all levels and difficult to pin down • Written agreements are common • Insiders and outsiders are less closely distinguished • Cultural patterns change quickly. © Bahaudin G. Mujtaba Culture, Status and Function • Andre Laurent (1983) examined attitude to power and relationship of European managers. He used four parameters: – – – – perceptions of the organization as political systems authority systems role formulation systems and hierarchical relationship systems • He used short statements and asked managers to either agree or disagree with them. © Bahaudin G. Mujtaba Hofstede Model Comparisons between the different cultures are plotted across four dimensions: POWER DISTANCE: the distance between individuals at different levels of a hierarchy. UNCERTAINTY AVOIDANCE: more or less need to avoid uncertainty. INDIVIDUALISM versus COLLECTIVISM: the relations between the individual and his/her fellows. MASCULINITY versus FEMINITY: the division of roles and values in society. SHORT-TERM versus LONG-TERM: the temporal orientation toward life (personal stability versus persistency and status). The orientation of firms to look for immediate results or build up for future. © Bahaudin G. Mujtaba Fons Trompenaars • Cultural differences can be managed. • Universalism versus Particularism – Universalists believe what is good and right applies everywhere regardless of the situation or extenuating circumstances. – Particularists emphasize obligations and relationships. © Bahaudin G. Mujtaba Universalists vs. Particularists You are working for a large organization with over 10,000 associates. Your boss asks you to help paint his or her house this weekend. Would you do it? Explain your answers! The following results of over 15,000 respondents from different countries represent the percentage of people who would NOT paint the house. – – – – – – Australia America (USA) Japan Asians China Hispanics 96% 89% 83% 83% 28% 17% © Bahaudin G. Mujtaba Speeding on the Highway You are riding with your friend who is driving 75 MPH on a 45 MPH zone. He accidentally hits a pedestrian and you end up going to court with him. His lawyer tells you “don’t worry, you are the only witness.” The following are results of 15,000 respondent from different countries who said: “My friend has NO right or some right and I will NOT help.” – USA 95% – Germany 91% – France 68% – South Korea 26% © Bahaudin G. Mujtaba Cultural Differences 1. Behaviors that are desirable in one culture may be undesirable in other cultures. International manager must be sensitive to the local cultural norms. Which of the following values are applicable to your culture and how do they vary from other cultures? Discuss your personal experience with each. 2. – – – – – – Competitiveness vs. harmony Individuality vs. teamwork & collectivism Domineering personality vs. friendliness or flexibility Direct eye contact vs. politeness Pointing mistakes vs. face-saving Business vs. relationship focused © Bahaudin G. Mujtaba Shifts in Culture Four environmental factors that cause shifts in the culture are foreign intervention economic conditions technology education © Bahaudin G. Mujtaba Interventions and Cultural Shifts WHY INTERVENTION DID NOT CAUSE SHIFT IN SAUDI ARABIA – The presence of foreign troops was short-lived. – The troops were quarantined away from large urban centers. – This quarantining was deliberate. – Saudi structures were not able to integrate differences. © Bahaudin G. Mujtaba Education and Cultural Shifts Educational structure and methodology reflect notions of what cultural change is desirable; create conditions for and against change. On the one hand, the educational system aims to produce model citizens (obey rules and accep the status quo). On the other, it aims to create agents of change. © Bahaudin G. Mujtaba Organizational Culture Organizational culture refers to the total sum of perceptions that develop and exist within an organization at a given time. It – focuses on the relationship of employees with the organization and upper echelons. – considers the opinions of employees regarding the mission, purpose and goals of the organization and their roles in it. – changes very slowly & can be very influential. © Bahaudin G. Mujtaba Organizational Culture Organizational cultures are passed on to new members through the behavior of existing employees and top management – Members learn the culture and become inculcated into it by observation and rewards – Each organization has its own unique culture – Change in the organizational culture requires commitment, training and new beliefs. © Bahaudin G. Mujtaba It’s what is inside that makes a difference! Learn well, take chances, and remember that together we can move the world! © Bahaudin G. Mujtaba Reference • Mujtaba, B. G. (2007). Cross Cultural Management and Negotiation Practices. ISBN: 978-0-9774211-2-1. ILEAD Academy, LLC; Davie, Florida. © Bahaudin G. Mujtaba © Bahaudin G. Mujtaba