International Management Dr. Ossama Mossallam Harvard University Training Consultant, Former Assistant Professor , Boston University, Former UN / USAID / JICA Management International Consultant Negotiating Among Cultures • What is “CULTURE”? – Ideas, Values, Beliefs, Customs, Protocols – Language – Religions • Culture Shock!... Alvin Toffler • Reverse Culture Shock Negotiating Among Cultures • Clash of Civilizations...... Samuel Huntington 1993 الشرق شرق ،و الغرب غرب ،و لن يلتقي التوأمان الشاعر اإلنجليزي كيبلينج 1936 - 1865 CULTURE • • • • • Language Religion Habits Customs Dressing - Clothing International Management Negotiating Among Cultures • Who is an effective manager/negotiator? • In Japanese Culture: –Able to win respect and confidence and having integrity, good listening skills and verbal expressiveness International Management Negotiating Among Cultures • Who is an effective manager/ negotiator? • In American Culture: – Product knowledge and verbal ability • In Chinese Culture: – Interesting person, have good judgement, demonstrate product knowledge and intelligence. International Management Negotiating Among Cultures • What happens when a close friend is potentially in a serious trouble with law? –Fons Trompenaars: A Dutch researcher –A research done in multinational organizations: 15,000 managers from 50 different countries International Management Negotiating Among Cultures –Fons Trompenaars: A Dutch researcher –A research done in multinational organizations: 15,000 managers from 50 different countries International Management Negotiating Among Cultures The scenario: You are riding in a car driven by a close friend. He hits a pedestrian. You know he was going 35 miles per hour in an area of the city where the maximum allowed speed is 20 miles per hour. – There are no witnesses. His lawyer says that if you testify under the oath that he was only driving 20 miles per hour, it may save him from serious sequences. International Business Among Cultures Question 1: What right has your friend to expect you to protect him? A- My friend has a definite right to expect me to testify to the lower figure (20 miles). B- He has some right as a friend to expect me to testify to the lower figure. C- he has NO right as a friend to expect me to testify to the lower figure International Business Among Cultures Question 1: What right has your friend to expect you to protect him? A- My friend has a definite right to expect me to testify to the lower figure (20 miles). 1/3 of French and Japanese. More than 1/2 in Russia, Venezuela , Indonesia and China. B- He has some right as a friend to expect me to testify to the lower figure. C- he has NO right as a friend to expect me to testify to the lower figure: North Americans and North Europeans Business Among Cultures Question 2: What do you think you would do in view of the obligations of an under oath witness and the obligation to your friend? D- Testify that he was going 20 miles per hour: 1/3 of French and Japanese E- Not testify that he was going 20 miles per hour: 2/3 of French and Japanese. The majority of North Americans and North European. International Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. According to Geert Hofstede four keys could be used: 1. Power distance 2. Masculinity 3. Individualism 4. Uncertainty avoidance International Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. According to Geert Hofstede four keys could be used: i- Power distance: A high power distance index (PDI) means that large inequalities of power and wealth exist and are tolerated and accepted in the culture. International Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. According to Geert Hofstede four keys could be used: i- Power distance: Power distance is the degree to which people in a country accept that power in institutions and organizations is distributed unequally. The power distance is closely associated with social inequality. International Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. According to Geert Hofstede four keys could be used: i- Power distance: A low-power-distance ranking indicates the culture discourages differences between power and wealth. These societies stress equality and opportunity. International Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. According to Geert Hofstede four keys could be used: i- Power distance: High: France, Greece, Belgium Low: Denmark, Norway, Britain International Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. According to Geert Hofstede four keys could be used: i- Power distance: High: France, Greece, Belgium Low: Denmark, Norway, Britain Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. According to Geert Hofstede four keys could be used: ii- Masculinity: Strong: Japan & Austria Moderate: USA Weak: Scandinavian (Feminine) Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. Four keys could be used: iii- Individualism High: Britain, Italy, France Low: Japan, Latin America, Greece Business Among Cultures People from different cultures have very different views of what is fair, reasonable and proper behavior. Four keys could be used: iv- Uncertainty avoidance Strong uncertainty avoidance + high power distance: Latin America and Europe Weak uncertainty avoidance + low power distance: Great Britain and Scandinavian countries Negotiating Among Cultures Should managers always have answers to subordinates’ questions? ( Andre Laurent) * 13% of American and Swedish managers agreed with the above statement. * 30-50% of managers from Britain, Germany, Belgium agreed * 59% of French and Italian managers agreed *Thank you = Who cares *I am sorry = Weakness *I don’t know = Ignorance Negotiating Among Cultures Major Mistakes – Cultural bias We are not aware of our cultural bias – Our Cultural norms: We are blind to our cultural norms – Other Cultures are deviations from the norm – Stereotyping is common Negotiating Among Cultures Key Points – Planning: study customs, norms, values, practices – Stereotyping could be misleading – Language could be a link or a barrier – Non-verbal communication – Negotiating Styles differ significantly across cultures