CROSS-CULTURAL MANAGEMENT Super vised by: PHD. WAHABI Objectives ◦ Identify the similarities and the differences across cultures in various management practices and organizational contexts. ◦ Emphasis on the main core elements of culture in general. ◦ Having a basic strategy for managing cultural differences. Be able to ◦ Understand the importance of culture in business and general management. ◦ Use a basic strategy to manage businesses in different countries. ◦ Work effectively in a multi-cultural working environment. The outline • The definition of cross-cultural management. • Cross-cultural communication. (Definition, Involves, Nonverbal com, verbal com, Nature of • Models approaching culture Onion model, Philippe d’IRIBANE model) language, Cultural differences influence, ICC). • A reminder of the dimensions of • Cultural dimensions. culture: • Edward T. Hall’s dimensions. Hofstede’s cultural dimensions. Trompenaars’s cultural dimensions. • Cultural diversity. • Values in cultures. • Confucius dimensions about culture. • Motivation. • Cross-cultural negotiation styles. • Cross-cultural leadership styles. The definition of cross-cultural management Cross-cultural management is a new field that is based on theories and research from: ◦ Cross Cultural Psychology ◦ International Business ◦ Organizational Behaviour ◦ Human Resources ◦ Anthropology This field seeks to: ◦ Understand how national cultures affect management practices. ◦ Identify the similarities and differences across cultures in various management practices and organizational contexts. ◦ Increase effectiveness in global management. 6 MODELS APPROACHING CULTURE Onion and iceberg model The Onion Model The iceberg Model The onion model There are many ways to visualise the concept of culture, but one of the most popular models is based on an onion. The Onion Model of Culture shows how culture has a number of layers. There are three key layers : -Outer layer -Middle layer -Core The onion model ◦ Outer layer : The outer layers represent cultural artefacts or symbols such as flags, architecture or traditional clothing. Heroes make up the next layer, such as Winston Churchill in the UK, and tend to represent many of the culture’s values and beliefs. ◦ Middle layer : It’s the underlying values and cultural assumptions which influence all of the other layers. These beliefs, norms and attitudes are much harder to recognise without a deeper analysis and thorough understanding of each of these layers and how they interact. ◦ Core : It’s how people try to adapt to their environnement The iceberg model Hall developed the iceberg analogy of culture. If the culture of a society was an iceberg, there are some aspects visible, above the water, but there is a larger portion hidden beneath the surface. The iceberg model ◦ The external, or conscious, part of culture is what we can see and is the tip of the iceberg andincludes behaviors and some beliefs. The internal, or subconscious, part of culture is below thesurface of a society and includes some beliefs and the values and thought patterns that underlie behavior. ◦ There are major differences between the conscious and unconscious culture. ◦ Internal ◦ Implicitly Learned ◦ Unconscious ◦ Difficult to Change ◦ Subjective Knowledge versus External Explicitly Learned Conscious Easily Changed Objective Knowledge Schwartz’s culture Model The israeli sociologist shalom schwartz developed in the '90es a model for cultural values and a map of where different parts of the world belong in this context. Schwartz’s culture Model ◦ Mastery vs. Harmony Hierarchy vs. Egalitarianism Embeddedness vs. Autonomy PHILIPPE D’IRIBARNE Philippe d’Iribarne Born 7 March 1937, Casablanca, French Morocco is a French author and director of research at CNRS. He works within a research centre called LISE (Laboratoire interdisciplinaire en sociologie économique or "interdisciplinary laboratorium on economic sociology"). He graduated from École polytechnique of France and from Institut d'études politiques de Paris Iribarne's interest is on the influence of national cultures on the way organisations function. He and his team within the LISE have so far surveyed organisations in 40-odd countries in Europe, Africa, America and Asia. Jorion has also published in the Revue de Mauss, a French anti-utilitarian journal. Cultural dimensions 1. Hofstede’s cultural dimensions. 2. Trompenaars’s cultural dimensions. 3. Geert Hofstede: 6 Dimensions 1. Power Distance Index (PDI) Small Power Distance Large Power Distance Use of power should be legitimate and is subject to criteria of good and evil Power is a basic fact of society antedating good or evil: its legitimacy is irrelevant Parents treat children as equals Parents teach children obedience Older people are neither respected nor feared Older people are both respected and feared Student-centered education Teacher-centered education Hierarchy means inequality of roles, established for convenience Hierarchy means existential inequality Subordinates expect to be consulted Subordinates expect to be told what to do Pluralist governments based on majority vote and changed peacefully Autocratic governments based on co-optation and changed by revolution Corruption rare; scandals end political careers Corruption frequent; scandals are covered up Income distribution in society rather even Income distribution in society very uneven Religions stressing equality of believers Religions with a hierarchy of priests 2. Individualism Vs Collectivism Individualism Collectivism Everyone is supposed to take care of him- or herself and his or her immediate family only People are born into extended families or clans which protect them in exchange for loyalty "I" – consciousness "We" –consciousness Right of privacy Stress on belonging Speaking one's mind is healthy Harmony should always be maintained Others classified as individuals Others classified as in-group or out-group Personal opinion expected: one person one vote Opinions and votes predetermined by in-group Transgression of norms leads to guilt feelings Transgression of norms leads to shame feelings Languages in which the word "I" is indispensable Languages in which the word "I" is avoided Purpose of education is learning how to learn Purpose of education is learning how to do Task prevails over relationship Relationship prevails over task 3. Masculinity Vs Femininity Femininity Masculinity Minimum emotional and social role differentiation between the genders Maximum emotional and social role differentiation between the genders Men and women should be modest and caring Men should be and women may be assertive and ambitious Balance between family and work Work prevails over family Sympathy for the weak Admiration for the strong Both fathers and mothers deal with facts and feelings Fathers deal with facts, mothers with feelings Both boys and girls may cry but neither should fight Girls cry, boys don’t; boys should fight back, girls shouldn’t fight Mothers decide on number of children Fathers decide on family size Many women in elected political positions Few women in elected political positions Religion focuses on fellow human beings Religion focuses on God or gods Matter-of-fact attitudes about sexuality; sex is a way of relating Moralistic attitudes about sexuality; sex is a way of performing 4. Uncertainty Avoidance Index (UAI) Weak Uncertainty Avoidance Strong Uncertainty Avoidance The uncertainty inherent in life is accepted and each day is taken as it comes The uncertainty inherent in life is felt as a continuous threat that must be fought Ease, lower stress, self-control, low anxiety Higher stress, emotionality, anxiety, neuroticism Higher scores on subjective health and wellbeing Lower scores on subjective health and well-being Tolerance of deviant persons and ideas: what is different is curious Intolerance of deviant persons and ideas: what is different is dangerous Comfortable with ambiguity and chaos Need for clarity and structure Teachers may say ‘I don’t know’ Teachers supposed to have all the answers Changing jobs no problem Staying in jobs even if disliked Dislike of rules - written or unwritten Emotional need for rules – even if not obeyed In politics, citizens feel and are seen as competent towards authorities In politics, citizens feel and are seen as incompetent towards authorities In religion, philosophy and science: relativism and empiricism In religion, philosophy and science: belief in ultimate truths and grand theories 5. Long term orientation Vs Short term orientation Short-Term Orientation Long-Term Orientation Most important events in life occurred in the past or take place now Personal steadiness and stability: a good person is always the same There are universal guidelines about what is good and evil Traditions are sacrosanct Most important events in life will occur in the future A good person adapts to the circumstances Family life guided by imperatives Family life guided by shared tasks Supposed to be proud of one’s country Trying to learn from other countries Service to others is an important goal Thrift and perseverance are important goals What is good and evil depends upon the circumstances Traditions are adaptable to changed circumstances Large savings quote, funds available for investment Students attribute success and failure to luck Students attribute success to effort and failure to lack of effort Slow or no economic growth of poor Fast economic growth of countries up till a countries level of prosperity Social spending and consumption 6. Indulgence Vs Restraint Indulgence Restrained Higher percentage of people declaring themselves very happy Fewer very happy people A perception of personal life control A perception of helplessness: what happens to me is not my own doing Freedom of speech seen as important Freedom of speech is not a primary concern Higher importance of leisure Lower importance of leisure More likely to remember positive emotions Less likely to remember positive emotions In countries with educated populations, higher birthrates In countries with educated populations, lower birthrates More people actively involved in sports Fewer people actively involved in sports In countries with enough food, higher percentages of obese people In countries with enough food, fewer obese people In wealthy countries, lenient sexual norms In wealthy countries, stricter sexual norms Maintaining order in the nation is not given a high priority Higher number of police officers per 100,000 population Examples of Cultural Dimensions Country Power Distance Individualism* Masculinity** Uncertainty Avoidance Long-term Orientation*** China High Low Moderate Moderate High France High High Moderate High Low Germany Low High High Moderate Moderate Hong Kong High Low High Low High Indonesia High Low Moderate Low Low Japan Moderate Moderate High Moderate Moderate Netherlands Low High Low Moderate Moderate Russia High Moderate Low High Low United States Low High High Low Low West Africa High Low Moderate Moderate Low * A low score is synonymous with collectivism ** A low score is synonymous with masculinity *** A low score is synonymous with a short-term orientation Trompenaars’s cultural dimensions Research produced five cultural dimensions that are based on relationship orientations and attitudes toward both time and the environment ◦ Universalism vs. Particularism *Universalism - belief that ideas and practices can be applied everywhere in the world without modification Focus on formal rules and rely on business contacts *Particularism - belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere Focus on relationships, working things out to suit the parties 24 ◦ Individualism vs. Communitarianism *Individualism - people regard themselves as individuals Rely on individuals to make decisions *Communitarianism - people regard themselves as part of a group Seek consultation and mutual consent before making decisions ◦ Neutral vs. Emotional *Neutral - culture in which emotions are held in check People try not to show their feelings *Emotional - culture in which emotions are expressed openly and naturally People smile, talk loudly, greet each other with enthusiasm 25 ◦ Specific vs. Diffuse *Specific - culture in which individuals have a large public space they readily share with others and a small private space they guard closely and share with only close friends and associates People often are open and extroverted Work and private life are separate *Diffuse - culture in which both public and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well People often appear indirect and introverted, and work and private life often are closely linked 26 ◦ Environment * Inner-directed People believe in controlling environmental outcomes * Outer-directed People believe in allowing things to take their natural course ◦ Cultural Patterns or Clusters * Defined groups of countries that are similar to each other in terms of the five dimensions and the orientations toward time and the environment 27 Trompenaars’s Cultural Groups Anglo cluster Relationship Individualism United States United Kingdom x x x x x x Communitarianism Specific relationship Diffuse relationship Universalism Particularism Neutral relationship x Emotional relationship x Achievement x x Ascription 28 Trompenaars’ Cultural Groups Asian cluster Relationship Japan China Indonesia Hong Kong Singapore Individualism Communitarianism x x x x x Specific relationship Diffuse relationship x x x x x Particularism x x x x x Neutral relationship x x x x Universalism Emotional relationship x Achievement Ascription x x x x x 29 Trompenaars’ Cultural Groups Latin American cluster Relationship Argentina Mexico Venezuela Brazil Individualism x x x x x x Particularism x x x x Neutral relationship x x x x Communitarianism Specific relationship Diffuse relationship Universalism Emotional relationship Achievement Ascription x x x x x 30 Trompenaars’ Cultural Groups Latin-European cluster Relationship France Belgium Individualism x x x x x Diffuse relationship Universalism x x x x Neutral relationship x x x Achievement Ascription x x Particularism Emotional relationship Italy x Communitarianism Specific relationship Spain x x x x x 31 Trompenaars’ Cultural Groups Germanic cluster Relationship Individualism Austria Germany Switzerland Czechoslovakia x Communitarianism Specific relationship x x Diffuse relationship Universalism x x x x x x x x x Particularism Neutral relationship x Emotional relationship Achievement Ascription x x x x x x x 32 GLOBE Cultural Variable Results Variable Highest Ranking Medium Ranking Assertiveness Spain, U.S. Egypt, Ireland Future orientation Denmark, Canada Slovenia, Egypt Russia, Argentina Gender differentiation South Korea, Egypt Sweden Denmark Uncertainty avoidance Austria, Denmark Israel, U.S. Power distance Russia, Spain England, France Demark, Netherlands Collectivism/Societal Denmark, Singapore Egypt, China Hong Kong, U.S. Greece, Hungary In-group collectivism Italy, Brazil Lowest Ranking Sweden, New Zealand Russia, Hungary England, France Denmark, Netherlands Performance orientation U.S., Taiwan Sweden, Israel Russia, Argentina Human orientation Hong Kong, Sweden Germany, Spain Indonesia, Egypt CULTURAL DIVERSITY Management Approaches Affected by Cultural Diversity Centralized vs. Decentralized decision making Cultural Diversity Informal vs. formal procedures Safety vs. risk Individual vs. group rewards Sort-term vs. long-term horizons High vs. low organizational loyalty Cooperation vs. competition Stability vs. innovation 35 A Synthesis of Country Cultures 36 VALUES IN CULTURE Priorities of Cultural Values some examples Japan 1. Belonging 2. Group harmony 3. Collectiveness 4. Age/seniority 5. Group consensus 6. Cooperation 7. Quality 8. Patience 9. Indirectness 10. Go-between United States 1. Freedom 2. Independence 3. Self-reliance 4. Equality 5. Individualism 6. Competition 7. Efficiency 8. Time 9. Directness 10. Openness Arab Countries 1. Family security 2. Family harmony 3. Parental guidance 4. Age 5. Authority 6. Compromise 7. Devotion 8. Patience 9. Indirectness 10. Hospitality A model of culture: concentric circles Explicit artifacts and products of the society Norms and values that guide the society Implicit, basic assumptions that guide people’s behavior Outer layer: observable, e.g. language, food, buildings, art. Middle layer: helps people understand how they should behave. Inner layer: intangible, helpful for problem-solving and well interactions with other people. 39 CROSS CULTURAL COMMUNICATION ◦ Definition of communication: Communication is the exchange of information and ideas from one person to another, it involves a sender transmitting an idea, information, or feeling to a receiver. (U.S. Army, 1983) Involves of communication Time Space Non verbal Eye contact Smell Touch Posture and stand Silence Communication verbal Language Nonverbal Communication ◦ Chronemics Monochronic time schedule ◦ Things are done in a linear fashion. ◦ Manager addresses Issue A first and then moves on to Issue B ◦ Time schedules are very important and time is viewed as something that can be controlled and should be used wisely Polychronic time schedules ◦ People tend to do several things at the same time ◦ People place higher value on personal involvement than on getting things done on time ◦ Schedules are subordinated to personal relationships Non verbal Communication ◦ Chronomics ( time) Attitudes towards time vary from culture to culture: • Countries with Monochronic time do only one activity at a time. ( England, Germany..) • Example : Swiss and Germans are interesting by punctuality and have time conscious • Countries with Polychronic time work on several activities simultaneously. (Latin America, Arabs,..) • Example : Arabs are not regarded by punctuality , and have a cusual attitude toward time ◦ Proxemics The study of the way that people use physical space to convey messages ◦ ◦ ◦ ◦ Intimate distance is used for very confidential communications Personal distance is used for talking with family and close friends Social distance is used to handle most business transactions Public distance is used when calling across the room or giving a talk to a group ◦ Proxemics (Space) ◦ U.S. people need more space than other cultures. ◦ The Japanese stand even farther away than do U.S. persons. •Example : Space zone in the U.S. The Intimate zone : less than 18 inches and is reserved for very close friends. The Personal zone: 18 inches to 4 feet is for giving instructions to others or working closely with another person. The Social zone: 4 to 12 feet is used in business situations in which people interact in a more formal way. The Public distance is over the 12 feet. ◦ Oculesics (Eye Contact) • People in the U.S. favor direct eye contact . • Other cultures, such us the Japanese, the reverse is true. • In the middle east, the eye contact is more intense than U.S people are comfortable with. But: • A prolonged gaze in the U.S. is considered rude. • And in the most cultures, men do not stare at women as this may be interpreted as sexually suggestive. ◦ Olfactics (Smell) • The U.S people respond negatively to body odors. • Arabs are comfortable with natural body odors. • Other cultures in which smell plays an important role include Japanese. ◦ Haptics (Touch) Touch when used properly may create feelings of trust, but when used improprely it may betray trust. Examples of Haptics « Don’t Touch » « Touch » ◦ Japan ◦ Latin Americain countries ◦ U.S. and Canada ◦ Italy ◦ England ◦ Greece ◦ Scandinavia ◦ Spain and Portugal ◦ Middle Ground Countries ◦ Russian Federation ◦ Some Asian countries Personal Space in the U.S. Intimate distance Personal distance Social distance Public distance 18” 18” to 4’ 4’ to 8’ 8’ to 10’ ◦ Posture and Stance • Posture can convey self-confidence, status and interest. • Confident people have a relaxed posture, and walk with assurance. • Walking slow, hesitating gait projects negative messages of lack of confidence. Examples: « The posture of U.S. person is casual, including sitting in a relaxed manner and slouching when standing ( which is rude in Germany) « Avoid showing the sole of your shoe or pointing your foot at someone in the Arab world » ◦ Silence • U.S. people are uncomfortable with silence. • From the middle east people are quite comfortable with silence. • Japanese also like periods of silence and do not like to be hurried. Japanese proverb: « those who know do not speak – those who speak do not know » • In Italy and Arabian countries, there is very little silence. Verbal communication Language can be : Parable • A story told to convey a truth or moral lesson Proverb • A saying that expresses a common truth Verbal Communication Styles ◦ Verbal communication styles ◦ Context is information that surrounds a communication and helps convey the message ◦ Messages are often highly coded and implicit in highcontext societies, such as Japan and many Arab countries ◦ The message is explicit and the speaker says precisely what he or she means in low-context societies such as the United States and Canada Explicit and Implicit Communication High-context/implicit communication cultures Japanese Arabs Latin Americans Italians English French North Americans Scandinavians Germans Swiss Germans Low-context/explicit communication cultures Adapted from Figure 7–1: Explicit/Implicit Communication: An International Comparison Characteristics of verbal styles Verbal Style Major Variation Indirect vs. direct Indirect Direct Implicit messages Explicit messages Collective, high context Individualistic, low context Succinct vs. elaborate Elaborate High quantity of talk Exacting Moderate amount of talk Low amount of talk Moderate uncertainty avoidance, high context Low uncertainty avoidance, low context High uncertainty avoidance, high context Succinct Interaction Focus and Content Cultures in Which Characteristic It Is Found Major Characteristics of Verbal Styles Verbal Style Contextual vs. personal Affective vs. instrumental Major Variation Interaction Focus and Content Cultures in Which Characteristic It Is Found Contextual Focus is on the speaker and role relationships High power distance, collective, high context Personal Focus is on the speaker and personal relationships Low power distance, individualistic, low context Affective Language is process oriented and receiver focused Collective, high context Instrumental Language is goal oriented and sender focused Individualistic, low context Verbal Communication Styles Indirect and direct styles ◦ In high-context cultures, messages are implicit and indirect ◦ Voice intonation, timing, and facial expressions play important roles in conveying information ◦ In low-context cultures, people often meet only to accomplish objectives and tend to be direct and focused in their communications Verbal Communication Styles Elaborate and succinct styles ◦ Three degrees of communication quantity— elaborate, exacting, and succinct. ◦ The elaborating style is more popular in high-context cultures that have a moderate degree of uncertainty avoidance ◦ The exacting style focuses on precision and the use of the right amount of words to convey the message and is more common in low-context, low-uncertainty-avoidance cultures ◦ The succinct style is more common in high-context cultures with considerable uncertainty avoidance where people tend to say few words and allow understatements, pauses, and silence to convey meaning. Contextual and personal styles ◦ Contextual style is one that focuses on the speaker and relationship of the parties ◦ Contextual style is often associated with high-powerdistance, collective, high-context cultures ◦ Personal style focuses on the speaker and the reduction of barriers between the parties ◦ Personal style is more popular in low-power-distance, individualistic, low-context cultures Affective and instrumental styles ◦ Affective style is common in collective, high-context cultures and is characterized by language that requires the listener to note what is said and to observe how the message is presented ◦ The meaning is often nonverbal and requires the receiver to use his or her intuitive skills to decipher the message ◦ Instrumental style is goal oriented and focuses on the sender who clearly lets the other party know what he or she wants the other party to know. ◦ The instrumental style is more commonly found in individualistic, low-context cultures Summary of Verbal Styles Communication Epigrams Adapted from Figure 7–2: Communication Epigrams Nature of language ◦ Semanticists: are concerned with the meaning of words. ◦ Grammarians: see language as a series of grammatical forms. ◦ Novelists: believe that language is a series of words arranged to produce a harmonious or logical effect. ◦ Linguists: focus on the phonetic aspects of language, defining language as a series of sounds produced by speakers and received by listeners. Intercultural Communication ◦ Intercultural communication is defined as situated communication between individuals or groups of different linguistic and cultural origins . Cultural differences influenced communication ◦ Perception : Our perceptions are culturally determined and in turn influence the way we communicate with others. ◦ Beliefs : We are taught very early on what to believe based on what our culture considers worthy and true. Subsequently, our belief systems form the basis of our values, which determine in large measure how we behave and relate to others. ◦ Values : When we interpret behaviour, an object, or an event, we are applying value judgments, which reflect our particular culture. Intercultural communication competence (ICC) ◦ Intercultural communication competence (ICC) is the ability to communicate effectively and appropriately in various cultural contexts. There are numerous components of ICC. Some key components include motivation, self- and other knowledge, and tolerance for uncertainty. CULTURAL DIMENSIONS GEERT HOFSTEDE Power Distance Low Power Distance : US High Power Distance : Morocco Society members view themselves as equals. Society handles inequalities among people. Strive to equalise the distribution of power and demand justification for inequalities of power . Society accepts an unequal distribution of power, and that people understand "their place" in the system. Flatter organizations. Centralized companies. Strong hierarchies. Supervisors and employees are considered almost as equals. Large gaps in compensation authority, and respect. Individualism Vs collectivism Individualism : US • Individuals of these cultures are loosing cultures , the having a lack of interpersonal relationships . Collectivism : Morocco • Little sharing of responsibility beyond family • High valuation on people's time and their need for freedom. • An enjoyment of challenges, and an expectation of rewards for hard work. • Respect for privacy Individuals from these cultures having strong group cohesion, and they have a respect for members of the group Individuals can expect their relatives or members of a particular in-group to look after theme exchange for unquestioning loyalty . The group itself is also larger and people take more responsibility for each other's well being. Emphasis on building skills and becoming masters of something. Work for intrinsic rewards. Harmony more important than honesty. Masculanity Vs Femininity Masculinity : Morocco • • • • Achievement, assertiveness and material rewards for success. Men are masculine and women are feminine. Masculine countries they are more assertive and more competitive. These countries show a gap between men's values and women's values. Femininity : Northland Quality of life , maintaining warm personal relationship service , caring and solidarity . A woman can do anything a man can do. Powerful and successful women are admired and respected. The women in feminine countries have the same modest, caring values as the men Uncertainty avoidance Unstructured Ucomfortable : Morocco Unstructured Comfortable : US Comfortable cultures , are enjoying news and unusual situation and try to discover it . Uncomfortable cultures try to avoid ambiguous situations whenever possible . Weak uncertainty avoidance societies maintain a more relaxed attitude in which practice counts more than principles . Uncertainty accepting cultures, are more tolerant of opinions different from what they are used to. Society deals with unknown, surprising, different from usual situations . People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions. Countries minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth. Countries are also more emotional, and motivated by inner nervous energy . Short-term orientation/ long-term orientation (LTO) Short term orientation : Morocco • • • • Long term orientation : US Short-term oriented societies foster • normative virtues related to the past and present such as national pride, respect for tradition, preservation of "face", and fulfilling social obligations. • Family is the basis of society. • Parents and men have more authority than young people and women. • Promotion of equality. High creativity, individualism. Treat others as you would like to be treated. Strong work ethic. • • Long- term oriented societies foster pragmatic virtues oriented towards future rewards, in particular saving, persistence, and adapting to changing circumstances. High value placed on education and training. Self-actualization is sought. Indulgence versus Restraint Indulgence : Sweeden Restraint : Morocco •Society that allows relatively free • Society that suppresses gratification of gratification of basic and natural human needs and regulates it by means of strict drives related to enjoying life and having social norms. fun EDWARD T. HALL’S DIMENSIONS Context: ◦ High context cultures:In a high-context culture, there are many contextual elements that help people to understand the rules. As a result, much is taken for granted.This can be very confusing for person who does not understand the 'unwritten rules' of the culture. ◦ Low context cultures:In a low-context culture, very little is taken for granted. Whilst this means that more explanation is needed, it also means there is less chance of misunderstanding particularly when visitors are present. Cultural context dimension High-context • Establish social trust first • Value personal relations • Agreement by general trust Low-context • Get down to business first • Value expertise and performance • Agreement by specific, legalistic contract Factor Overtness of messages High-context culture Many covert and implicit messages, with use of metaphor and reading between the lines. Locus of control and contribution Inner locus of control and personal for failure acceptance for failure Use of non-verbal communication Much nonverbal communication Low context-culture Many overt and explicit messages that are simple and clear. Outer locus of control and blame of others for failure More focus on verbal communication than body language Reserved, inward reactions Visible, external, outward reaction Cohesion and separation of groups Strong distinction between ingroup and outgroup. Strong sense of family. Flexible and open grouping patterns, changing as needed People bonds Strong people bonds with affiliation to family and community Fragile bonds between people with little sense of loyalty. High commitment to long-term relationships. Relationship more important than task. Low commitment to relationship. Task more important than relationships. Time is open and flexible. Process is more important than product Time is highly organized. Product is more important than process Expression of reaction Level of commitment to relationships Flexibility of time Space (leading to « proxemics ») ◦ Intimate space: the closest "bubble" of space surrounding a person. Entry into this space is acceptable only for the closest friends and intimates. ◦ Social and consultative spaces: the spaces in which people feel comfortable conducting routine social interactions with acquaintances as well as strangers. ◦ Public space: the area of space beyond which people will perceive interactions as impersonal and relatively anonymous. Time: Anthropologist Edward T. Hall’s concept of polychronic versus monochronic time orientation describes how cultures structure their time. • The monochronic time concept follows the notion of “one thing at a time”. • The polychronic concept focuses on multiple tasks being handled at one time, and time is subordinate to interpersonal relations. The following table gives a brief overview of the two different time concepts, and their resultant behaviour. Monochronic time culture Polychronic time culture Actions Do one thing at a time Do many things at once Focus Concentrate on the job at hand Are easily distracted Attention to time Think about what will be achieved Priority Think about when things must be achieved Put the job first Respect for property Seldom borrow or lend things Timeliness Emphasize promptness Borrow and lend things often and easily Base promptness relationship factors Interpersonal Relations Interpersonal relations are subordinate to present schedule Schedule co-ordinates activity; appointment time is rigid. One task at a time Activity Co-ordination Task Handling Breaks and Personal Time Temporal Structure Work/personal time separability Organisational Perception Breaks and personal time are sacrosanct regardless of personal ties. Time is inflexible; time is tangible Work time is clearly separable from personal time Activities are isolated from organisation as a whole; tasks are measured by output in time (activity per hour or minute) Put relationships first Present schedule is subordinate to interpersonal relations Schedule co-ordinates activity; appointment time is rigid. Many tasks are handled simultaneously Breaks and personal time are subordinate to personal ties. Time is flexible; time is fluid Work time is not clearly separable from personal time Activities are integrated into organisation as a whole; tasks are measured as part of overall organisational goal. CONFUCIUS DIMENSIONS ABOUT CULTURE Confucius dimensions about culture A very ancient school of thought in philosophy, moral, politics, and religion. Ethical teachings for everyday life The fifth dimension of culture Principales and concepts : The stability of the society is based on unequal relationships between people. The family is the prototype of all social organizations. “Do not treat people in a way you would not want to be treated yourself” = golden rule To acquire skills and education, to work hard, not to spend more than necessary, to be patient, and to be persistent. Short-term orientation characteristics (non confucian society) UK Long-term orientation characteristics (confucian society) Morocco Personal survival/security Social order Personal respect/dignity Hierarchical respect Individual face-saving Collective face-saving Short- to medium-term planning Long-term planning Respect for tradition Thrift centered Reciprocation of greetings, favors, and gifts Short- to medium-term outcomes Long-term outcomes Respect for obligations (social, status) regardless of what it costs Spending is everywhere ; “thrift” is not a value Adaptation of traditions to a modern context Sensitivity to social trends in consumption Respect for obligations (social, status) within limits Huge income differences in the society Pakistan Canada/USA UK Zimbabwe Thrift Less unequal incomes China/ Taiwan Japan South Korea Brazil In the work place/ business Confucian society - Order relationships by status and keep that order Non confucian society - Relatively flat relationships - Consumption - The importance of thrift/saving - Quick results expected - Perseverance towards slow results - More frequent job change - Less frequent job change CROSS CULTURAL NEGOCIATION STYLES Negotiation Styles from a Cross-Cultural Perspective Cross-cultural negotiation styles Managing Cross-Cultural Negotiations Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all Planning 1. identify the objectives negotiators would like to attain and explore the possible options for reaching these objectives 2. Set limits on single-point objectives 3. Divide issues into short- and long-term considerations and decide how to handle each 4. Determine the sequence in which to discuss the various issues Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all Planning Impersonal Relationship Building • Get to know the people on the other side • “Feeling out” period is characterized by the desire to identify those who are reasonable and those who are not Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all • Each group sets forth its position on the critical issues • These positions often change later in the negotiations • Participants try to find out what the other party wants to attain and what it is willing to give up Planning Impersonal Relationship Building Exchanging TaskRelated Information Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all • Planning Impersonal Relationship Building Exchanging TaskRelated Information Success of the persuasion step depends on • How well the parties understand each other’s position • The ability of each to identify areas of similarity and differences • The ability to create new options • The willingness to work toward a mutually acceptable solution Persuasion Negotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to all • Grant concessions and hammer out a final agreement • This phase may be carried out piecemeal, and concessions and agreements may be made on issues one at a time. Planning Impersonal Relationship Building Exchanging TaskRelated Information Persuasion Agreement • Have a sense of pride sometimes interpreted as supremacy • French logic ("Cartesian" logic) proceeds from what is known in a point-bypoint fashion until agreement is reached • Protocol, manners, status, education, family, and individual accomplish-ments are keys to success with the French Germany France China • Reserved; known for hospitality and good manners • Give small, inexpensive presents • Do not like to be touched • Consider mutual relationships and trust very important • Technical competence of negotiators necessary • Prefer to use an intermediary • Rarely use lawyers • Ample room for compromise • Protocol is important and formal • Dress is conservative; correct posture and manners are required • Use titles when addressing members of the negotiating team; use please and thank you often • Prefer to keep a distance between themselves and the other team negotiators • Have technical people as part of the negotiation team as Germans are detail oriented • Punctuality is expected • Contracts are firm guidelines to be followed exactly • In the past, negotiation sessions have been long, with Russians controlling the agenda • Are concerned with age, rank, and protocol • Tend to be formal • Friendships are not crucial to business • Contracts interpreted rigidly • Concerned with maximizing their profits Latin America Russia India • Bribery is common; having connections is important • Avoid using the left hand in greetings and eating • Request permission before smoking, entering, or sitting • Building relationships is important; an introduction is necessary • Intermediaries are common • Use titles to convey respect • Knowledge of local affairs is important • Negotiation process can be long • Relationships are important • Bribery is common • Government is very involved in business • Negotiators chosen based on family connections, political influence, education, and gender (females should be in the background) • Latinos are very individualistic but group oriented concerning family and friends • Social competence is important; will ask about one's health and well-being of family • Most agreements are consummated over lunch • Numerous meetings is the norm; time is not seen as important • Avoid gestures Japan Nigeria • Nigerians are skillful negotiators; they view negotiation as a competitive process • When selecting negotiators, consider age (equated with wisdom), gender, cultural background, and educational credentials • Developing a personal relationship is important • Time is not particularly important so negotiations may be lengthy • Use titles and last names • Use an intermediary to make initial introductions • Being well dressed is important; courtesy and consideration are also expected • Contracts considered flexible; they may be oral or written • A bribe may be needed to expedite business • Business etiquette is very important • Meeting should be arranged by an intermediary who has a relationship with both parties • Negotiating parties usually consist of five people • Business card exchange is common • Subtle and complex verbal and nonverbal cues are used to avoid having someone lose face or lose the group harmony • Negotiating practices are based on the keiretsu system (a company group formed by the principal company and the partner companies that supply parts, equipment, financial support, or distribution of the final products); a keiretsu group is viewed as a longterm commitment • The Japanese use more silence and less eye contact than U.S. • Consider contracts as flexible instruments • Are suspicious of a negotiating team that includes lawyers Effective Negotiation Characteristics (examples of different cultures) Adapted from Table 7-10: Culture-Specific Characteristics Needed by International Managers for Effective Negotiations Adapted from Table 7-10: Culture-Specific Characteristics Needed by International Managers for Effective Negotiations CROSS CULTURAL LEADERSHIP STYLES Definition of leadership Rost (1993) defines Leadership as "a power and value laden relationship between leaders and followers who intend real changes that reflect their mutual purposes and goals" ( Joseph C. Rost) 102 Leadership Theories X, Y 103 Management Vs Leadership Management Leadership Creating an agenda Planning and budgeting –establishing detailed steps and timetables for achieving needed results, and then allocating the resources necessary to make that happen. Establishing direction – developing a vision of the future, often the distant future, and strategies for producing the changes needed to achieve that vision Developing a human network for achieving the agenda Organizing and staffing – establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation Aligning people – communicating the direction by words and deeds to all those whose cooperation may be needed so as to influence the creation of teams and coalitions that understand the vision and strategies, and accept their validity, 104 Management Vs Leadership Management Leadership Execution Controlling and problem –solving – monitoring results vs. plan in some detail, identifying deviations, and then planning and organizing to solve these problems Motivating and inspiring – energizing people to overcome major political, bureaucratic, and resource barriers to change by satisfying very basic, but often unfulfilled human needs. Outcomes Produces a degree of predictability and order, and has the potential of consistently producing key results expected by various stakeholders(e.g. for customers, always being on time; for stockholders, being on budget Produces change, often to a dramatic degree, and has the potential of producing extremely useful change (e.g. new products that customers want, new approaches to labor relations that help make a firm more competitive. 105 Leadership styles ◦ In 1939, Kurt Lewin identified three broad categories of leadership styles an : Autocratic • Autocratic leaders plan, control, and make decisions by their own and they expect the subordinates to work towards the goals they set and obey the rules they placed. Democratic • Democratic leaders collaborate with the followers, guide them and use a collective approach in planning, control, and decision making LaissezFaire • Laissez-Faire leaders offer very little guidance to subordinates and expect them to plan and control their work themselves and let others to take their own decisions 106 Leadership in Morocco according to Hofstede’s dimensions High power distance culture Low power distance culture (Morocco) The more powerful authority the executives and leaders can have. Large gaps in compensation, authority, and respect between leaders and employees. The strong hierarchy brings power to leaders on the top of organizations. Subordinates in high power distance countries are typically more reluctant to challenge their supervisors and more fearful of expressing disagreement with their managers Autocratic leadership is more acceptable and effective in high power distance societies people want and expect more guidance in societies It makes leadership in organizations more likely to be decentralized, but executives are highly independent and qualified. Leaders and employees are considered almost as equals. Flatter organizations. Democratic leadership is more acceptable and effective in high power distance societies Independence and autonomy 107 Leadership in Morocco according to Hofstede’s dimensions Individualism Leaders take into their consideration employees need for freedom. Respect for privacy. An enjoyment of challenges, and an expectation of rewards for hard work from the organization. Leaders promote team performance Collectivism (Morocco) Leaders focus on building professional skills of employees among the team. Work for intrinsic rewards. In the team, harmony is more important than honesty. Leaders promote individual performance 108 Leadership in Morocco according to Hofstede’s dimensions Masculinity (Morocco) There is a well defined distinction between men's work and women's work. Organizations success rely on masculine leadership and how far a male contingence can go. Emotional discussions or emotionally based arguments are avoided on making decisions In male culture, men are assertive and decisive Management as manége: decisive and aggressive Resolution of conflict by letting the strongest win Rewards are based on equity Preference for larger organizations Careers are compulsory for men, optional for women There is a lower share of working women in professional jobs Male leaders are more directive and autocratic Male leaders display more task oriented behaviors Feminity Feminine leadership traits are more conductive. Women tend to endorse the people-oriented style. Leaders take decisions based on consensus and diversity of ideas. In the women's culture, leaders adopt a participatory leadership Management as ménage: intuition and consensus Careers are optional for both genders Women leaders are more participative and democratic Strong commitement to values and a preference of collaboration over competition and discuss over debating Female leaders shom more concern with the maintenance of interpersonnal relationship Women leaders encourage participation , share power information enhance the self worth of others and energize 109 followers Leadership in Morocco according to Hofstede’s dimensions High Uncertainty Avoidance (Morocco) Leaders tend to give clear directions to subordinates Leaders use formality in interactions with others. Motivation by security and esteem or belonging Rely on formalized policies and procedures. Emotional need for rules – even if not obeyed Take moderate, carefully calculated risks. Show strong resistance to change: Differences are avoided. Leaders are concerned with daily operations Leaders tend to give clear instructions to their subordinates in order to reduce ambiguity regarding professional expectations. Low Uncertainty Avoidance Members tend to be more person-oriented and nondirective They use informality in interactions with others. Motivation by achievement and esteem or belonging. Dislike of rules - written or unwritten They are concerned with strategy Leaders prefer the flexibility, autonomy and freedom, because this culture employs fewer regulations, rules and supervision. The members of this culture also tend to be more person-centered and non-directive. 110 Leadership in Morocco according to Hofstede’s dimensions Indulgence (Morocco) Leaders have a strong perception of a severe control of their team. Maintaining order in the team is not given a high priority. - More employees are getting actively involved in decision making process. The leader satisfies the immediate needs and personal desires of its members. The leader considers proposals from members. Restraint Leaders have a perception of helplessness, what happens to me is not my own doing. Higher pressure and authority to maintain order in the team. Less employees are involved in decision making process The leader has strict social rules and norms under which satisfaction of drives is regulated and discouraged. -The leader is involved in every matter and makes every decision. -the correct propositions are those of the leader. 111 Japan’s leadership style Less power of control because leaders are expected to have warm and good relationships with their followers. China’s leadership style Team work Decision making concentration Collective decision making Limited partnership Fidelity of the inferior to the Job rotations superior is a virtue. The superior should allow the inferior to express his fidelity and it is expected that Flexibility in work leader rely on his follower to remove his weak points. Dominance of « secondary groups » on the « primary groups » The highest efficiency of leader is associated with his ability to understand the followers and to attract their attentions. Long-term employment Administrative corruption Mutual emotional relationship between employer and employee Supervisors are assumed to control affairs and don’t allow the inferiors to participate effectively System of promotion on the basis of superiority Importance of face and face-toface conduct Group assessment and group bonus Special attitude to time Decision about the major issues are made by considering the interest of the decion makers « secondary groups » Europe’s leadership style Arab countries leadership style Expertise : their level of Hierarchical power technical expertise and orientation toward detail and in- Compliance of regulations and depth analyses. laws with personalities Competitiveness: theu generally Priority of relation on order look for win-win solutions vs. Behaving competitively. Instability and hesitance in decision making Paternalism system in ledaership Setting standards of excellence : Nepotism in high seting expectations for organizationallevels themselves and their Open doors policies organizations and their willingness to work hard to USA leadership style Categorising human being as good or bad Noncompulsory thinking and believe in performance of work and change rather than acceptance of fate Dominance on nature (solution are made based on structure, strategy and system) Individualism (japan and china are collectivist societies). Employing family and friend is considered a destructive act. Functionalism Attention to present and future instead of past Sources ◦ http://fr.slideshare.net/MingLi1/cross-cultural-management-14532203 ◦ http://www.etsu.edu/ahsc/documents/leadership_theories.pdf ◦ http://fr.slideshare.net/preciousssa/hofstede-cultural-differences-in-internationalmanagement ◦ http://www.austingme.com/templates/GraduateMedicalEducation/Assets/com munication-skills.pdf ◦ http://www.iegd.org/spanish800/adjuntos/distefano5.pdf ◦ https://faculty.unlv.edu/phelan/.../Lecture%205.ppt