Matakuliah
Tahun
: V0052
: 2008
MANAGING AND LEADING IN DIFFERENT
CULTURE
Week 7
Learning Outcomes
On completion of this unit, the students should be able to
explain the ways of leading and managing in different culture.
Mahasiswa dapat menerangkan serta memberi contoh
tentang cara-cara mengatur dan memimpin dalam perbedaan
budaya.
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Subjects
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Leadership Model
Lewis Cultural Type
Team Building
International Teams
Motivating and Building Trust
Meeting
Negotiating
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Week 7
Leadership
• Leaders can be born, trained and groomed or elected
• Leadership can be:
– Autocratic or Democratic
– Collective (e.g. Parliamentary rule in UK which was introduced in
the early part
•
of the 17th century) or Individual
– Merit-based or Ascribed
– Desired or Imposed
• In the globalization era, cross-national transfers in business
are becoming increasingly common. Therefore the
compositions of international teams and the choice of leaders
must be carefully considered.
Bina Nusantara
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Week 7
The World’s Leader
Leadership having been vested in the person of one man or
woman:
• Alexander the Great; Louis XIV; Napoleon; Queen Elizabeth I;
Joan of Arc
Renowned and powerful but less despotic, ruled and acted with
the acquiescence of the fellow statesmen:
• Washington
• Churchill
Leadership to be vested in boards of directors or management
committees in business:
• Ford
• Rockefeller
• Matsushita
Bina Nusantara
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Week 7
Two Modes of Leadership Functions
NETWORKING
TASK ORIENTATION
Concern on:
• The status of the leader(s)
• The chain of command
• The management style
• The employees motivation
• The language of management
used to achieve this
Bina Nusantara
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The leadership must tackle
issues, formulate strategies,
create some form of work
ethic and decide on
efficiency, task distribution
and use of time
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Week 7
Cultural Types: The Lewis Model
• According to Lewis Model, there are three types of
culture: Linear-Active, Multi-Active and Reactive
Culture
• Linear-actives people like to plan, schedule, organize,
pursue action chains, and do one thing at a time
• Multi-actives people are lively and they prefer to do
many things at once and plan their priorities not
according to a time schedule
• Reactives people prioritize courtesy and respect,
listening quietly and calmly to their interlocutors and
reacting carefully to the other side’s proposal.
Bina Nusantara
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CULTURAL TYPES MODEL
Hispanic America,
Argentina, Mexico
MULTIACTIVE
Brazil, Chile
Italy, Portugal, Spain,
Greece, Malta, Cyprus
Sub Saharan Africa
Saudi Arabia,
Arab Countries
Russia, Slovakia
France, Poland,
Lithuania
Iran, Turkey
India
Belgium
Indonesia, Malaysia,
Philippines
Australia, Denmark,
Ireland
Austria, Czech Rep.,
Netherlands, Norway,
Slovenia
Korea, Thailand
USA
China
LINEARACTIVE
REACTIVE
UK
Sweden,
Latvia
Finland,
Estonia
Canada
Singapore
Germany, Switzerland,
Luxembourg
Bina Nusantara
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Source: Lewis (2006 : p.42)
Taiwan,
Japan
Hong Kong
Vietnam
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Linear-Active Culture
Multi-Active Culture
Reactive Culture
Introvert
Extrovert
Introvert
Patient
Impatient
Patient
Quiet
Talk active
Silent
Mind own business
Inquisitive
Respectful
Likes privacy
Gregarious
Good listener
Plans ahead methodically
Plan grand outline only
Looks at general
principles
Does one thing at a time
Does several things at
once
Reacts
Works fixed hours
Works any hours
Flexible hours
Punctual
Not punctual
Punctual
Dominated by timetables
and schedules
Unpredictable timetable
Reacts to partner’s
timetable
Likes fixed agenda
Interrelates everything
Thoughtful
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Linear-Active Culture
Multi-Active Culture
Reactive Culture
Stick to plans and facts
Changes plan and juggles
facts
Makes slight-changes
Uses memoranda
Rarely write memos
Plans slowly
Compartmentalizes
projects
Lets one project influence
another
Sees whole picture
Gets information from
statistics, database,
books, internet
Gets first-hand (oral)
information
Uses both first-hand and
researched
information
Job-oriented
People-oriented
People-oriented
Unemotional
Emotional
Quietly caring
Works within department
Gets around all
department
Consider all departments
Follow correct procedures Pull strings
Bina Nusantara
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Networks
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Linear-Active Culture
Multi-Active Culture
Reactive Culture
Accept favors reluctantly
Seeks favors
Protect face of other
Delegate to competent
colleagues
Delegates to relations
Delegates to reliable
people
Brief on the telephone
Talk for hours
Summarizes well
Dislikes losing face
Has ready excuses
Must not lose face
Confronts with logic
Confront emotionally
Avoid confrontation
Limited body language
Unrestricted body
language
Subtle body language
Rarely interrupts
Interrupts frequently
Doesn’t interrupt
Separate social/
professional
Interweaves social/
professional
Connects social and
professional
Source: Lewis (2006 : p.33-34)
Bina Nusantara
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Leaders in Linear-active, Multi-active and
Reactive Cultures
Linear-Active Culture
•Task Oriented
•Technical competence
•Place facts before
sentiment
•Logic before emotion
•Orderly, stick to agendas
•Inspire staff with careful
planning
Bina Nusantara
Multi-Active Culture
Reactive Culture
•Networking Oriented
• Equally people oriented
•Extrovert
but dominate with
•Ability to persuade and knowledge, patience and
use human force as an
quite control
inspirational factor
• Display modesty and
courtesy
• Excel in creating a
harmonious
atmosphere for
teamwork
• Paternalistic
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Different Concepts of Status, Leadership and
Organization
• GERMAN
• FRENCH
• BRITISH
• AMERICAN
• LATINS
• JAPAN
• AUSTRALIA
• DUTCH
Bina Nusantara
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Week 7
GERMAN
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Bina Nusantara
Believe in a world governed by ORDNUNG  Tidiness, symmetry 
everything and everyone has a place in a grand design calculated to
produce maximum efficiency
Senior employees pass on their knowledge to their juniors
Clear chain of command
Communication is vertical. If you have anything to discuss about
business, talk directly to your immediate superior.
Status of managers is based partly on achievement
Most Germans feel comfortable in a tight framework (which would
irritate Americans and British)
They enjoy being told twice, three or four times.
They work long hours, obey the rules themselves and fair play
Punctuality and orderliness are important
They want details, content and clarity. They don’t like
misunderstanding.
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FRENCH
• French managers have wider horizons and less
specialization that British or US Managers.
• There is a high tolerance in French companies for
management mistakes (compare than those in Germany that
can not be easily forgiven or in the US that causing fired)
• Status of French’s chief executive is attributed to family, age,
education and professional qualifications
• The decision is usually made alone and not always based on
the evidence
• The authority is centered around the chief executive.
Bina Nusantara
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BRITISH
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Bina Nusantara
British managers generally diplomatic, laid back, tactful,
casual, reasonable, helpful, seeking to be fair, willing to
compromise and inventive
Business is conducted with grace, humor, style, wit, and selfpossession
They regard meetings as occasions to seek agreement rather
than to issue instructions
They are not very strict to punctuality but they also do not
like wasting time
British staff like to complete tasks thoroughly although in
their own time frame
British managers and staff like to leave work at 5 pm or 6 pm,
but they often take the work home
Teamwork is encouraged and often achieved
Status is derived, in some degree, from title and family name.
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Week 7
AMERICAN
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•
Bina Nusantara
American managers are assertive, aggressive, goal and action
oriented, confident, optimistic, vigorous, achiever and ready for
change
They are used to hard work, instant mobility and decision making
They value individual freedom above the welfare of the company,
however, they are capable of teamwork and corporate spirit
Status is gained based on achievement and wealth
Chief executive and managers retain their power depending on the
results they achieve. They can be quickly hired and rapidly fired.
Motivation is usually monetary: bonuses, performance payments,
profit-sharing schemes and stock options
American staff need constant feedback, encouragement and praise
from the senior executive
American executives are allowed to make individual decisions.
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LATINS
• Great deal of nepotism: family name and
connections may dominate the organization
structure in the big firms
• Like in France, the authority is centered around
the chief executive
• Status is based on age, reputation, and often
wealth
• The style of management is autocratic
• Success depends largely on social and ministerial
connections and mutually beneficial cooperation
between dominant families.
Bina Nusantara
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JAPANESE
• Japanese top executives have great power in
conformity but actually have little involvement in
the company’s daily affairs
• Ideas often originate on the factory floor or with
other lower-level sources
• Suggestions, ideas and innovation make their
way up to the top executives based on collected
signatures from workers and middle managers.
Bina Nusantara
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AUSTRALIAN
• Australian managers must sit in the ring with the
“mates”
• Australian business requires quick thinking and
rapid decision making.
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DUTCH
• Leadership is based on merit, competence and
achievement
• Managers are vigorous and decisive
• Consensus is mandatory as there are many key
players in the decision-making process.
Bina Nusantara
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Week 7
Team Building
Linear-Active
Change
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
Bina Nusantara
Constantly
necessary
Stimulate growth
and improvement
Plan in detail then
change
Change is topdown
Should be profitoriented
Any change is
better than no
change
Multi-Active
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

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
Imaginative and
exciting
Stimulate people
Change
charismatically
then plan change
Change after key
lateral clearance
Involves social
reputation of the
company
Usually benefits
top dogs
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Reactive
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

Gradual
If it ain’t broke,
don’t fix it
Plan change
slowly in
harmony with
others
Change if all
agree
Employmentoriented
Often dangerous
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Week 7
Team Building
Innovation
Bina Nusantara
Linear-Active
Multi-Active
•Innovate to
survive
•Comes from
individual
•Make innovation a
goal
•Comes largely
from eccentrics
and deviants from
the company or
national norm
•Should be
Aesthetic
•Discovered in
lengthy discussion
•Innovate elegantly
•Comes from
brilliance born of
first-class education
and training
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Reactive
•Imitation and
improvement are
safer than
innovation
•There is little new
under the sun
•Introduce
innovations only
when necessary
•Born of the
aggregate of
collective thought
and effort
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Week 7
Team Building
Linear-Active
Multi-Active
Reactive
Idea
Show support for
others’ new ideas
but voice any
reservations about
them immediately
Imply you agree to
others’ suggestions
for innovations but
modify or drop them
later
Approve of others’
new ideas even if you
fully disagree
Decision
Future-oriented
Bold and original
Based on best past
precedents
Brainstorming Democratic
Must be restrained in Better to think in
the presence of
silence than aloud
superiors
Scenario
Concentrate on bestcase scenarios
Concentrate on
worst-case
scenarios
Don’t have scenarios
– discuss all options
until the best one
becomes evident
Source: Adapted from Lewis (2006 : p.127)
Bina Nusantara
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Week 7
International Teams: Strengths, Insights and
Blind Spots (Weakness)
• Advantages in having diverse team, such as:
– Broader perspective in creativity
– Generate more alternatives and better critical analysis
in problem solving
– Not only “one-way” assumptions
– Not only “black” and “white” but also “both-and”
– Higher level of divergent thinking
– Better tolerance with ambiguity and chaos
– More charisma, stimulation, and real dialogue
– Divers talent
– Sound moral basis
Bina Nusantara
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Week 7
International Teams: The Strengths
Nationality
Strengths
Americans
Action-oriented, get things going, simplify, focus on return on
investment, think big, take risks, willing to invest,
entrepreneurial, to the point, good at planning sales and
marketing, monitor budget, energetic, enthusiastic
Belgians
Compromisers, practical, make things work, avoid dogmatic
approach, use gradualist approach to problems
Brits
Calm and phlegmatic, like to arbitrate, inventive, reasonable,
avoid offense, diplomatic, think long-term, good at
administration, fair
Dutch
Always busy, work quickly, sense business opportunities, spot
weaknesses, good organizer, hate wasting time, hate to lose
business, international in outlook, democratic, persist in finding
solutions
Bina Nusantara
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Week 7
International Teams: The Strengths
Nationality
Strengths
French
Visionary, logical, imaginative ideas, intelligent leadership,
conceptual, and all embracing approach to a project
Germans
Details, forward planning, general competence, keep to
schedules, spot difficulties, try to avoid future problem
Italians
Visionary, human relations, good at settling disputes, flexible,
reasonable, works all hours, never neglect peripheral
business
Spaniards
Human force, warmth, vision, focus on ideals, good at
persuading, often settle disputes through mediation, loyal
team members when feeling appreciated, work long hours
Source: Lewis (2006 : p.135)
Bina Nusantara
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Week 7
International Teams: Insights and Blind Spots
Nationality
Insights
Blind Spots
Americans
Drive, bottom-line focus,
optimism
Insensitivity to non-American
values
Brits
Diplomacy, reasonable
Foreign languages, “up-todateness”
French
Logic, rhetoric
Seek to win argument rather than
discover the truth
Germans
Order, processes, details
Subtle humor
Italians
Communicative, skills
Agendas, punctuality
Spaniards
Idealism, imagination, human
warmth
Shaky planning, impatience with
details
Chinese
Courtesy, patience,
negotiating skill
Lack of international exposure,
sense of urgency, western humor
Overseas
Chinese
Experiences, risk takers,
bottom-line focus, organized
Almost none
Bina Nusantara
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Nationality
Insights
Blind Spots
Japanese
Courtesy, patience
Individual decision making,
western humor
Koreans
Energetic, hard-working,
good planners
Distorted worldview due to
excessive nationalism
Indians
Skilled negotiators,
communicative, warm
Strict planning
Malaysians
Moral, educated, culturally
sensitive
Ambition, drive
Thais
Easy-going, cooperative
Ambition, dislike responsibility
Filipinos
Democratic, friendly, neat
Punctuality, accountability
Latin
Americans
Imaginative, risk takers
Manana, cooperation, accuracy
Arabs
Sincerity, morality
Unity, teamwork
Africans
Warmth, colorful, humor
Organization skills
Bina Nusantara
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Source: Lewis (2006 : p.136-138)
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Week 7
Motivating and Building Trusts
Linear-Active Culture Multi-Active Culture
Motivated by:
Achievement
Access to high-level
technology
Generous funding for
research
Increased opportunities
for individual flair
Direct business-tobusiness contacts free of
stifling bureaucratic
controls
Motivated by:
Words more than deeds
Emotion, compassion,
expression of human
understanding
Nurture and security
Reactive Culture
Motivated by:
Reassuring comfort of
collective goals and action
Common loyalty to
respectable organizations
Discovery of enduring
trust
Face for family, friends
and colleagues
Increased leisure time and
opportunities for foreign
travel and international
contact (for Asian)
Source: Lewis (2006 : p.142-143)
Bina Nusantara
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Week 7
Motivating and Building Trusts
Product versus Relationship in Buying
The linear-actives people, such as Germans, Americans,
British, tend to assume that an excellent product will sell
itself and it paves the way for a successful relationship.
The other cultures, such as Latins, Asians and Arabs,
they will buy goods from people they like and they trust,
not necessarily from those who offer the best product at
the best price. For those people, personal relationship
paves the way for the product.
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Week 7
Building Trusts
• Mutual trust will lead to a smooth-running teamwork.
According to Lewis (2006), some of the basic strategies
for trust-building are:
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–
–
–
–
–
–
–
–
Bina Nusantara
Set clear, transparent aims and goals
Prepare clear instructions and communicate them effectively
Insist on an information-sharing policy
Provide practical, user-friendly tools
Set-up time-efficient processes
Recognize contributions
Back-up the “team”
Act on the team’s recommendations
Work toward transparency
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Week 7
High-Trust and Low-Trust Societies
As stated in Lewis (2006), Professor Francis Fukuyama
divided societies into two categories of trust: high-trust
and low-trust. High-trust societies (usually linear-active)
will trust a person until he or she proves untrustworthy.
Low-trust societies (mostly multi-actives or reactives) are
initially suspicious of fellow nationals.
Bina Nusantara
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HIGH-TRUST AND LOW-TRUST COUNTRIES
High-Trust
JAPAN
FINLAND
DENMARK
GERMANY
US
A
BRITAIN
Medium
Low-Trust
CHINA
KOREA
FRANCE
ITALY
TAIWAN
MEXICO
Source: Lewis (2006 : p.145)
Bina Nusantara
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LOW-TRUST CULTURE
FOREIGNERS
OTHER COMPATRIOTS
FRIENDS, COLLEAGUES
ACQUAINTANCES
FAMILY
FAMILY
Absolute trust
Limited trust based on
mutual dependence
No assumptions about
their goodwill
Rarely trusted
Seen as competitors or potential enemies
Bina Nusantara
Source: Lewis (2006 : p.146)
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TRUST VARIANCE IN DIFFERENT CULTURAL CATEGORIES
LINEARACTIVE
CULTURES
Trust based on:
- Performance (do what you say you will do)
- Consistency
- Scientific truth
- Efficient officialdom
Trust in Institutions
MULTI-ACTIVE
CULTURES
Trust based on:
- Compassion
- Closeness
- Refusal to capitalize on others’ weaknesses
- Showing others one’s own weaknesses
Trust in-group intimates
REACTIVE
CULTURES
Trust based on:
- Protecting the other’s face
- Courtesy
- Sacrifice
- Reciprocal attention
Trust in reciprocity,
schoolmates
Bina Nusantara
Source: Lewis (2006 : p.149)
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Week 7
Meetings
Beginning a Meeting
• Ways of beginning a meeting varies among cultures.
Germans and Americans like to get on with it and they don’t
see point in delay. In England, France, Italy and Spain, it is
considered rude to bring up serious issues immediately.
They prefer to have small-talk first for 10 minutes or half an
hour before they start meeting. You may compare the ways
of beginning a meeting among some cultures.
Meeting Purpose
• Brits and Americans use a meeting as an opportunity for
making decisions and get things done. The French see it as
a forum to cover all aspects of a problem. Germans expect to
gain compliance. Italians use it to evaluate support for their
plan. The Japanese use a meeting to establish status and
trust.
Bina Nusantara
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BEGINNING A MEETING
GERMANY
Formal introduction. Sit down. Begin
FINLAND
Formal introduction. Cup of coffee. Sit down. Begin
U.S.
Informal introduction. Cup of coffee. Wisecrack. Begin
U.K.
Formal introduction. Cup of tea and biscuits. 10 mins,
small talk (weather, sport, comfort). Casual beginning
Formal introduction. 15 mins, small talk
(politics, scandals, etc). Begin
FRANCE
Formal introduction. Protocol seating. Green tea.
15-20 mins, small talk (harmonious pleasantries).
Sudden signal from Senior Japanese. Begin
JAPAN
20-30 mins, small talk (soccer, family matters) while others arrive. Begin when all are there
SPAIN/ ITALY
MINS 0
5
10
15
20
25
30
Source: Lewis (2006 : p.154)
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Week 7
Body Language and Space
• Both linear-active and reactive people regard
space bubble of 0.5 meters for talking to close
friends and relatives. Space within 1.2 meters of
the body is considered as inviolable territory for
strangers.
• For multi-active people, they regard the space
within 0.5 meters is comfortable to talk business.
• Latin people will tend to buy more from a person
who sits close to them than from someone who
sits at a distance.
Bina Nusantara
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Week 7
Body Language and Space
• In multi-active cultures, speakers will maintain close eye
contact while they speak (e.g. Spanish, Greek and Arabian).
This is considered rude and improper for reactive cultures
(e.g. Japanese avoid eye contact 90% of the time. They will
look at speaker’s neck while listening and at their own feet
and knees when speaking).
• Multi-active people also use all the rest of their bodies to
express themselves, such as hands, shoulders, and feet.
• The Portuguese tug their earlobes to indicate tasty food. But
in Italy, this gesture has sexual connotations and in Spain, it
means someone is not paying his drink.
Bina Nusantara
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Week 7
Negotiating
German
 Will ask difficult questions from the beginning. You have to
convince them of your efficiency, promptness of your service and
the quality of your products
 They will give you little business at the start, but they will give
you more business after they convince about you and your
product
French
 They see negotiation as a social occasion and a forum for their
cleverness. The leader will be very excellent speaker, highly
educated and self-assured
Spaniards
 They seem not appreciate your effort and preparation to facilitate
a deal and they do not study your proposal, but they do study you
 They will do business with you if they like you and think that you
are honorable
Bina Nusantara
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Week 7
Negotiating
Japanese
They will not do any business deal unless they like you and trust
you
They will ask you many questions about price, delivery and quality
(maybe for 10 times)
They are more interested in market share and company’s
reputation than in profit
They regard negotiation as a social ceremony
Negotiation objectives: harmonious relationships, securing market
place, long-term profit, current deal
When facing a deadlock, they will bring in senior executives to “see
what the problem is”
Finns and
Swedes
They expect modernity, efficiency and new ideas
They will expect your company to have the latest office computers
When facing a deadlock, Swedish will go out drinking together and
Finns will go to the sauna
Bina Nusantara
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Week 7
Negotiating
American
They prefer to get down quickly to a discussion of investment
, budgets and profits, Entertainment and protocol are kept to a
minimum
They will hurry you and make you sign the five-year plan
Negotiation objectives: current deal, short-term profit and
rapid growth, consistent profit, relationships with partner
Latin
American
They regard negotiation as a social ceremony
Negotiation objectives: national honor, personal prestige of
chief negotiator, long-term relationship, current deal
Source: Lewis (2006 : p.161-168)
Bina Nusantara
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QUESTIONS?
Bina Nusantara
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Review Questions 3
1. Explain the Lewis’ cultural type model and name the
countries for each type
2. What the advantages for having diverse team work?
3. Explain the characteristics of German managers,
American managers, Japanese Managers and French
managers.
4. Can you name the characteristics of Indonesian
managers?
Bina Nusantara
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