CHAPTER 4
INTERNATIONAL OB:
MANAGING ACROSS CULTURES
CHAPTER SUMMARY
The global economy will influence virtually all employees, whether they accept a foreign assignment or
remain in their native country. Thus understanding culture is of paramount importance. Culture is defined
as a set of beliefs and values about what is desirable in a community of people, and a set of formal or
informal practices to support these values. We learn cultural lessons primarily through informal methods,
such as observation and imitation. Since we do not question cultural assumptions, they generally remain
subconscious. National boundaries do not necessarily coincide with cultural boundaries.
Culture and organizational behavior are interrelated. Employees bring their societal culture to work with
them in the form of customs and language. In turn, organizational culture affects the individual's values,
ethics, attitudes, assumptions, and expectations. Managers must be careful that their decisions aren’t
influenced by ethnocentrism (the belief that one’s native country or culture are superior to others).
Cultures can be compared across many criteria, including high/low context, individualism/collectivism,
perceptions of time, interpersonal space, language, and religion. High-context cultures rely heavily on
situation cues for meaning when perceiving and communicating with another person. Nonverbal cues
such as one's official position or status convey messages more powerfully than do spoken words. In lowcontext cultures, written and spoken words carry the burden of shared meaning. In high-context cultures,
agreements tend to be made on the basis of someone's word or a handshake, after a rather prolonged
trust-building period. In low-context cultures, a detailed contract is typically required. Project GLOBE is
conducting research on nine cultural dimensions: power distance, uncertainty avoidance, institutional
collectivism, in-group collectivism, gender egalitarianism, assertiveness, future orientation, performance
orientation, and humane orientation. Different cultural patterns have emerged for different nations.
Individualistic cultures tend to place primary emphasis on personal freedom and choice whereas in
collectivist cultures shared goals are viewed as more important than personal goals. Cultures also differ
in the perception of time. Monochronic time is characterized as linear, ordered, and precise. Polychronic
time is characterized as cyclical, flexible, fluid, and multidimensional. Low-context cultures tend to run
on monochronic time whereas high-context cultures tend to run on polychronic time.
Proxemics is the study of cultural expectations about interpersonal space. There are four interpersonal
distance zones. They are intimate distance, personal distance, social distance, and public distance. People
from high-context cultures prefer standing close when talking to someone, whereas those from lowcontext cultures prefer a greater amount of space.
The Hofstede study examined nations along four dimensions: power distance, individualism-collectivism,
masculinity-femininity, and uncertainty avoidance. Power distance represents the extent to which people
expect inequality in social institutions. Individualism-collectivism represents the strength of the bond
between individuals and societal groups. Masculinity-femininity represents the extent to which people
embrace competitive masculine traits or nurturing feminine traits. Uncertainty avoidance measures the
extent to which people prefer structured or unstructured situations.
Expatriate refers to anyone living and/or working outside his or her home country. Family and personal
adjustment problems, not technical competence, are the main cause of failures in foreign assignments.
Realistic job previews, cross-cultural training, support during the foreign assignment, and home-country
sponsors can help reduce failure rates.
Chapter 4
LECTURE OUTLINE
I.
II.
III.
Culture and Organizational Behavior (PPT Slide: 4 applies here)
A. Societal Culture Is Complex and Multilayered
1. Most cultural lessons are learned informally through observation and imitation.
B. Culture Is a Subtle but Pervasive Force
1. Since cultural assumptions are unquestioned, they generally remain below the threshold
of conscious awareness.
2. People in every culture are unaware of their cultural assumptions.
C. Culture Overrides National Boundaries
1. The boundaries of many nation-states were not drawn along cultural lines, but rather
through conquest, treaties, and geopolitics.
D. A Model of Societal and Organizational Cultures (PPT Slide: 5 applies here)
1. Employees bring their societal culture to work in the form of customs and language. In
turn, organizational culture affects individual's values, ethics, attitudes, and assumptions.
2. Societal culture is shaped by the economic/technological setting, the political/legal
setting, by ethnic background, and by religion.
Ethnocentrism: A Cultural Roadblock in the Global Economy (PPT Slide: 8 applies here)
1. Ethnocentrism may be the result of inexperience or lack of knowledge about culture.
2. Ethnocentrism in staffing decisions and human resource policies is associated with
personnel problems including recruiting difficulties, high rates of turnover, and lawsuits.
Toward Greater Cross-Cultural Awareness and Competence (Self-Exercises: What is Your Cultural
Profile? and How Do Your Work Goals Compare Internationally? and Group-Exercise: Looking into a Cultural Mirror
apply here)
A. Cultural Paradoxes Require Cultural Intelligence (PPT Slide: 9 applies here)
1. Discussions of cultural differences should be viewed as tendencies rather than absolutes.
B. High-Context and Low-Context Cultures (PPT Slides: 11-12 apply here)
1. People from high-context cultures rely heavily on situational cues for meaning when
perceiving and communicating with another person. Characteristics of high-context
cultures include establishing social trust first, valuing personal relations and goodwill,
generating agreement by general trust, and preferring slow and ritualistic negotiations.
2. People from low-context cultures rely heavily on written and spoken words.
Characteristics of low-context cultures include: getting down to business first, valuing
expertise and performance, agreeing by contract, and making negotiations efficient.
C. Nine Cultural Dimensions from the GLOBE Project (PPT Slides: 13-14 and 21 apply here)
1. Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) is an
attempt to develop an empirically based theory to describe, understand, and predict the
impact of specific cultural variables on leadership and organizational processes and the
effectiveness of these processes. Nine cultural dimensions are included:
a. Power distance – How much unequal distribution of power should there be?
b. Uncertainty avoidance – How much should people rely on social norms and rules to
avoid uncertainty and limit unpredictability?
c. Institutional collectivism – How much should leaders encourage and reward loyalty
to the social unit, as opposed to the pursuit of individual goals?
40
International OB: Managing Across Cultures
In-group collectivism – How much pride and loyalty should individuals have for
their family or organization?
e. Gender egalitarianism – How much effort should be put into minimizing gender
discrimination and role inequalities?
f. Assertiveness – How confrontational should individuals be in social relationships?
g. Future orientation – How much should people delay gratification?
h. Performance orientation – How much should individuals be rewarded for
improvement and excellence?
i. Humane orientation – How much should society encourage and reward people for
being kind, fair, friendly, and generous?
D. Individualism versus Collectivism (PPT Slide: 15 applies here)
1. People in collectivist cultures are expected to subordinate their own goals and interests
to those of the relevant social unit whereas individualists are expected to promote their
own best interests.
E. Cultural Perceptions of Time (PPT Slide: 16 applies here)
1. Monochronic time is linear, limited, ordered, precise, and schedule-driven.
2. Polychronic time is cyclical, flexible, fluid, and multidimensional.
F. Interpersonal Space (PPT Slide: 17 applies here)
1. Edward Hall specified four interpersonal distance zones: intimate distance, personal
distance, social distance, and public distance.
2. People from high-context cultures prefer standing close when talking to someone.
3. People from low-context cultures prefer standing farther apart when talking to someone.
G. Religion
1. Religious beliefs can profoundly effect cross-cultural relations. There is virtually no
agreement across religions regarding the most important work-related value.
Practical Insights from Cross-Cultural Management Research (PPT Slides: 24-27, Supplemental
d.
IV.
PPT Slides: 34-35, and Group Exercise: Applying Hofstede’s Cultural Values apply here)
A. The Hofstede Study: How well Do US Management Theories Apply in Other Countries?
1. Hofstede's research was based on a collection of 116,000 attitude surveys of IBM
employees in 53 countries.
2. The key cultural dimensions in the Hofstede study include:
a. power distance - How much do people expect inequality in social institutions?
b. individualism-collectivism - How loose or tight is the bond between individuals and
societal groups?
c. masculinity-femininity - To what extent do people embrace competitive masculine
traits or nurturing feminine traits?
d. uncertainty avoidance - To what extent to people prefer structured versus
unstructured situations?
3. Practical lessons from the Hofstede study are:
a. Management theories and practices need to be adapted to the local culture.
b. Individuals and nations can no longer afford cultural arrogance in a global economy.
B. Leadership Lessons from the GLOBE Project
41
Chapter 4
V.
1. The GLOBE project measured leadership attributes to determine if any were universally
liked or disliked. They found 22 attributes were universally liked and eight were
universally disliked. (See Table 4-2.)
Preparing Employees for Successful Foreign Assignments (PPT Slides: 25-27, Supplemental PPT
Slides: 32-33, and Ethical Dilemma: 3M Tries to Make a Difference in Russia apply here)
A. Why Do US Expatriates Fail in Foreign Assignments?
1. Approximately 10-20% of US expatriate assignments end early. Of those who stay, 1/3
don’t perform up to expectations, and 1/4 who completed the assignment left their
company within a year after repatriation.
2. The most common reasons for failure of US expatriate managers are family adjustment
problems and homesickness.
3. The most important success factors in a foreign assignment are patience, flexibility, and
tolerance of others’ beliefs.
B. A Bright Spot: North American Women on Foreign Assignments
1. Self-disqualification and management’s assumption that women would not be welcome
in foreign cultures are the most likely barriers for potential women expatriates, but
women are viewed primarily as foreigners, and secondarily as female.
C. Avoiding OB Trouble Spots in Foreign Assignments
1. Avoid unrealistic expectations with realistic job previews (RJPs).
2. Avoid culture shock, which can be minimized through comprehensive cross-cultural
training, including intensive language study.
3. Provide support during the foreign assignment
4. Avoid reentry shock. Reentry shock may occur in work, social activities, or the general
environment, and may be reduced through career counseling and home-country sponsors.
42
International OB: Managing Across Cultures
OPENING CASE SOLUTION
1.
Why is Maureen Chiquet a good prototype for the modern “global” manager?
Although an American, Chiquet is adept at working in a corporate culture that is profoundly French. She has
succeeded in meshing with Chanel’s creative egos and its French owners. She speaks fluent French and has
worked her entire life to understand French culture. When she started at Chanel she was careful to listen
carefully and absorb the culture, rather than barging in and bungling, showing her cultural intelligence and lack
of ethnocentrism.
OB IN ACTION CASE SOLUTION
1.
If you were the CEO of PricewaterhouseCoopers, how would you defend the Ulysses Program to
shareholders concerned about spending?
The costs of the program are easy to measure – $15,000 plus salaries for the two-month time period. The
benefits of the program are more difficult to quantify, but turnover statistics are useful. There is no turnover
among graduates of the program. Half of those who have completed the program have been promoted and most
have new responsibilities. Additionally, program graduates express a stronger organizational commitment to
PwC.
2.
What benefit would the Ulysses Program be to PwC employees who would not seek or take a foreign
assignment?
According to PwC partner Willem Brocker, “We get better partners from this exercise.” Even those who do not
take a foreign assignment learn to look at problems in creative and unconventional ways. The Ulysses program
“helps prepare participants for challenges that go beyond the strict confines of accounting or consulting and
instills values such as community involvement that are fundamental to [PwC] corporate culture.” Graduates say
“they’ve already adapted their experiences to the task of managing people and clients.”
3.
How do the facts of this case confirm the GLOBE project’s research findings about leadership? Explain.
The GLOBE project’s research findings about leadership counsel managers to use a contingency approach to
leadership after using their cultural intelligence to read the local people and culture. Partner Tahir Ayub realized
the need for a contingency approach when helping village leaders in the Namibian outback struggle with their
community’s growing AIDS crisis. Ayub and colleagues “had to scrap their PowerPoint presentations in favor of
a more low-tech approach: face-to-face discussion.” Ayub adopted this management style back at PwC. “He says
he favors face-to-face conversations over e-mail because the low-tech approach builds trust.”
4.
Using Table 4-4 as a guide, what cross-cultural competencies were developed among the people featured
in this case study? Explain.
Table 4-4 lists building relationships, valuing people of different cultures, listening and observation, coping with
ambiguity, translating complex information, taking action and initiative, managing others, adaptability and
flexibility, and managing stress as key cross-cultural competencies. Tahir Ayub had plenty of one-on-one
practice building relationships when he was helping villagers in the Namibian outback grapple with the growing
AIDS crisis. Valuing people of different cultures involves developing empathy for differences and sensitivity to
diversity. Both Ayub and Dinu Bumbacea (a partner in PwC Romanian office) developed this ability. According
to Bumbacea, “Africa is poor, and we all know that.” “But until you go there, you don’t understand how poor it
is. We take so much for granted.” This sentiment also indicates a level of adaptability and flexibility (i.e. the
ability to view change from multiple perspectives). “Malaysian partner Jennifer Chang says her team noticed a
shift in her managerial style” after a trip to Belize. “She listened more and became more flexible,” an indication
of the “managing others” competency.
5.
Would you like to participate in this type of leadership development program? Why or why not?
This is a personal opinion question, but students should recognize the potential impact – both personally and
professionally – of such training programs.
43
Chapter 4
INSTRUCTIONAL RESOURCES
1.
2.
3.
4.
5.
See “Topic 4: International Management” (p. 96) in An Instructor’s Guide to an Active
Classroom by A. Johnson & A. Kinicki, 2006, McGraw-Hill Irwin.
Helping students gain knowledge of other cultures and understand the relationship between
culture and management practices is the focus of the exercise in “The Art of Dialogue in
Building Cross-Cultural Sensitivity in the Classroom” by U. Anakwe, pp. 291-306. Differences
between Eastern and Western learning traditions are covered in “Chinese Perspectives on the
Important Aspects of an MBA Teacher” by E. Thompson, pp. 229-258. Crisis management
planning in a teaching setting is discussed in “Preparing for the Unexpected: Managing Low
Probability, Disruptive Events in Student International Travel Courses” by T. Nelson and S.
Ornstein , pp. 259-273. All articles are found in Journal of Management Education, June 2002,
Vol. 26 No. 3.
Chinese learning perspectives are discussed in “The Silent Chinese: The Influence of Face and
Kiasuism on Student Feedback-Seeking Behaviors” by A. Hwang, S. Ang, and A. Francesco in
Journal of Management Education, February 2002, Vol. 26 No. 1, pp. 70-98.
See “Cultural Constraints in the Workplace: An Experiential Exercise Utilizing Hofstede’s
Dimensions” by K. Kniep Blanton & J. Barbuto, Jr. in Journal of Managerial Education, August
2005, 29(4), pp. 654-666.
Multi-cultural team teaching is discussed in “Bicultural Team Teaching: Experiences From an
Emerging Business School” by N. Napier, N. Hang, N. Mai, N. Thang, and V. Tuan in Journal of
Management Education, August 2002, Vol. 26 No. 4, pp. 429-448.
TOPICAL RESOURCES
1.
2.
3.
Measuring job satisfaction across cultural groups is discussed in Cl Liu, I. Borg, and P. Spector,
“Measurement Equivalence of the German Job Satisfaction Survey Used in a Multinational
Organization: Implications of Schwartz’s Culture Model” in Journal of Applied Psychology,
2004, 89(6), pp. 1070-1082.
An excellent example of the effects of culture and temporality on negotiation can be found in
“The Role Of Temporality In Dyadic Negotiations: Evidence From Portugal, Turkey, And The
United States” by S. Armagan et al. in Research On Managing In Groups And Teams, 9 (2006):
115-146.
The ways in which collectivist and individualistic cultures interpret shame and the impact on job
performance is examined in R. Bagozzi, W. Verbeke, & J. Gavino, Jr., “Culture Moderates the
Self-Regulation of Shame and Its Effects on Performance: The Case of Salespersons in the
Netherlands and the Philippines” in Journal of Applied Psychology, 2003, 88(2), pp. 219-233.
VIDEO RESOURCES
McGraw-Hill Supplements:
1. The Organizational Behavior Video DVD, Volume One contains the following videos that
correspond with this chapter content: Cirque du Soleil and Disney Imagineering. Suggested teaching
notes and discussion questions are located in the Video Cases and in a separate PowerPoint file
containing all Videos on the book’s website at www.mhhe.com/kreitner.
44
International OB: Managing Across Cultures
2. Management in the Movies includes a short clip from Gung Ho – “Assan Motors” that applies to
Chapter 4. See the PowerPoint presentation for teaching notes and discussion questions (look in the
Instructor version under Supplemental Slides).
3. Manager’s Hot Seat includes one applicable scene: Cultural Differences: Let’s Break a Deal.
Additional Video Resources:
1.
2.
3.
4.
The importance of understanding cultural attitudes and values when conducting business is the
focus of the video “A Cultural Passport to International Business” (Insight Media).
Case studies and interviews are used to compare how US and Japanese firms prepare their
employees for expatriate assignments in the video “Managing in a Global Environment” (Insight
Media).
The impact of culture on business practices is the topic of the film, "Doing Business
Internationally," (CRM Films).
The impact of culture on negotiation, marketing, and management are covered in the video
“Doing Business Internationally: Cross-Cultural Challenges” (Insight Media).
DISCUSSION QUESTIONS
1.
2.
3.
4.
Do you as an individual tend to operate on monochronic time or polychronic time? Give
examples to support your answer.
What individual and cultural factors should be considered when deciding upon the most
appropriate leadership style?
What cultural characteristics would make it difficult for a male Arabic manager working in the
US? For a female US manager working in Arabia? Be specific.
Can you think of any instances in which you demonstrated ethnocentrism? Explain.
45
Chapter 4
SUPPLEMENTAL EXERCISE 1: GIVING FEEDBACK TO INTERNATIONAL
EMPLOYEES1
APPLICATION
This exercise provides three examples of feedback given to international employees. In each case, the
employee’s responses came as a surprise to his manager. Based on their own knowledge of diverse
cultures and the material provided in Chapter Four, ask students to explain the reaction of the
international employee. Specifically, what cultural factors contributed to cultural miscommunication?
***
SCENARIO 1: TSU PANG CHIANG Tsu Pang Chiang works as an accountant for a large bank in San
Francisco. He has been in the US for two years. He was born in Hong Kong. One afternoon at a
department meeting, Chiang’s boss tells Chiang that he likes the way Chiang works and that he is “doing
all right.” Chiang doesn't respond outwardly to the comment and, in fact, remains aloof for a few weeks.
His boss cannot understand Chiang's behavior.
Cultural description: Hong Kong is high-context, polychronic, high power distance, and high long-term
orientation.
Solution: Chiang comes from Hong Kong where people show little or no emotion when paid a
compliment. Indeed, it is commonplace to deny that one has done anything worthy of praise or not to
respond at all. In many Asian cultures, employees do not wish to be singled out, as it may decrease group
harmony. Some Asians, it has been found, may even regard compliments as a signal that something is
actually wrong and that the feedback is a way of telling them that they are not doing a good job. After all,
if they were doing a good job, they reason, they would be rewarded with something tangible. Of course,
another explanation for Chiang's behavior could be that he misinterpreted the phrase “doing all right” as
“doing mediocre work.”
SCENARIO 2: BERNARDO CHAVEZ Bernardo Chavez is a human resource administration trainee in
a manufacturing plant in Texas. Bernardo was born in Mexico and has worked in the US for only six
months. At Bernardo's first performance review, his manager asks him to sit down and immediately
begins to discuss Bernardo's past performance and future expectations. Bernardo becomes defensive and
from that day forward responds to his boss's comments with an insincere smile.
Cultural description: Mexico is high-context and polychronic culture.
Solution: Chavez comes from a culture where it is appropriate to engage in "small talk" before discussing
job-related matters. In terms of interpersonal skills, US managers, compared to managers worldwide,
tend to rank on the low side, whereas Mexican managers rank on the high side. US managers tend to be
more direct, getting down to business right away; after all, to them, “time is money.” In Mexico, one
takes time to get to know another person and asks about the person's family; business will get done when
the time is right.
SCENARIO 3: MASOUD SHAHIDI Masoud Shahidi is a customer services representative for a high
technology firm near Boston. Originally from Tehran, Iran, Masoud has worked in the US for two years.
At his first performance review, Masoud is told clearly by his supervisor how he can improve during the
next quarter, and Masoud agrees to work on these areas. Two weeks later, Masoud is asked to sign his
1
Adapted from J. Stull, “Giving Feedback to Foreign-Born Employees” Management Solutions, July 1988, pp. 43-45.
46
International OB: Managing Across Cultures
written performance review. Masoud becomes irritated, complaining that he does not understand why
this written document has to go into his personal file.
Cultural description: Iran is high-context and polychronic.
Solution: Masoud is used to dealing more through the spoken word. In the Middle East, one's word is
one's honor. Putting things in writing is not as important as it is in the US In fact, if one did write up a
performance review after an appraisal interview, chances are that the written review would “glow,”
giving a more favorable report than actually occurred during the interview.
Here are some guidelines that may be useful when giving feedback to diverse cultural groups:
Use informal networks. Tell a leader from the culture involved about the feedback and have him or her
relay it to the person involved. This relieves the discomfort of singling out the individual and allows
someone with more cultural knowledge to handle the situation.
Direct feedback to the entire work group. This will foster team unity, which is important in many
cultures.
Get feedback in return. Question employees to make sure that they understand the message you are
sending. Ask open-ended questions, as some cultures actively avoid using the word “no.”
Use clear language and two-way communication. Employees for whom English is a second language
may miss the nuances of the discussion. Clear words, short sentences, and checking for comprehension
can help straighten out any misunderstandings before they become problems.
Give group members a written copy of key points. This allows group members to study it at their
leisure to make sure they are comfortable with the information. Many individuals for whom English is a
second language are more comfortable with the language in written, rather than spoken, form.
47
Chapter 4
SUPPLEMENTAL LECTURETTE 1: SKILLS OF MULTICULTURAL MANAGERS1
APPLICATION
This lecturette may be used to supplement coverage of expatriate assignments and discusses the
managerial attributes necessary to perform successfully in foreign nations.
***
A multicultural manager is one who believes all cultures are equally valid, who can cross cultural barriers
with ease, and become wholly accepted by foreigners. She or he enjoys learning about other cultures, and
most likely was exposed to more than one culture in childhood. When traveling abroad, the multicultural
manager readily adapts to the culture at their location for the day. When that same manager is at home,
he or she will meet halfway, or more, toward the attitudes, habits and language of the foreign visitor there
for an hour or a day. However, if that visitor moves to the manager’s home country (thus becoming an
expatriate) the visitor is expected to conform to the new surroundings. More specifically, multicultural
managers should possess seven key skills:
Global perspective. Managers must focus beyond the concerns of a single country, and go beyond the
relationship between headquarters and subsidiaries. Rather, they must understand the worldwide business
environment in which their corporation operates.
Local responsiveness. Managers must be aware of how differences in technologies, laws, and customs
influence the way business is conducted in different cultures.
Transition and adaptation. Managers must be able to live in different countries and adjust to foreign
cultures.
Synergistic learning. Managers must both work with and learn from individuals from multiple cultures.
They should try to create a globally integrated company rather than a company that has integrated
foreigners into the American corporate culture.
Collaboration. Managers must be able to treat foreign coworkers as equals.
Cross-cultural interaction. Managers should be able to use their skills to deal with managers of
different nationalities.
Foreign experience. The experience gained from working in a foreign country should be used as a tool
for career development, not just for getting the job done.
To determine if students are prepared to become multicultural managers, ask them to perform a selfassessment: Are you flexible? Can you easily adjust to change? Are you adventurous? Are you willing to
put the time and energy into learning a new language and culture? Do you become easily frustrated by
things that are not done the way you are accustomed to having them done? Do you currently work well
with minorities and those from other cultures? Do you perceive that an international assignment will
have a beneficial effect on your career? Are your spouse and family supportive of your decision?
1
Adapted from G. Beeth, “Multicultural Managers Wanted” Management Review, May 1997, Vol. 86, pp. 17-21; B.
Azar, “Predicting Worker’s Success Overseas” American Psychological Association Monitor, July 1995, p. 32; S.
Sullivan and H. Tu, “Developing Globally Competent Students: A Review and Recommendations” Journal of
Management Education, November 1995, Vol. 19 No. 4, pp. 473-493.
48
International OB: Managing Across Cultures
SUPPLEMENTAL LECTURETTE 2: AN AMERICAN EXPATRIATE IN PARIS1
APPLICATION
This lecturette may be used to supplement coverage of expatriate assignments and discusses how cultural
differences between Americans and the French lead to radically different management values.
***
The cultural dimensions in the Hofstede-Bond studies have been used to define differences in value
orientations affecting the work of multicultural organizations. One relevant dimension is power distance.
A high score for power distance indicates that relationships between superiors and subordinates are
relatively unequal, with both sides accepting the clear cut differences in status and privilege. The French
rank relatively high on the power distance scale, especially compared to Americans. This leads American
supervisors to play down their legitimate authority whereas the French may intentionally emphasize
status differences. These cultural differences fuel the stereotype that the French are snobbish (according
to Americans) and Americans are barbarians (according to the French). In French organizations, a great
deal of authority is typically held by relatively few upper-echelon managers. This means that
subordinates are very dependent on their supervisors and must constantly consult them when making
business decisions. The strong hierarchy found in French managerial systems may cause considerable
distress to American expatriate managers who are use to more autonomy.
The French and Americans also differ with respect to uncertainty avoidance (the extent to which people
prefer structured or unstructured situations). As a country, France has a fairly high uncertainty avoidance
score, while that of the US is much lower. Elaborate bureaucracies and extensive social legislation
illustrate the need to avoid uncertainty. According to Hofstede, “Keeping an eye on details is a clear sign
of uncertainty avoidance.” For example, it is common in America to fire or demote a worker whose work
is unsatisfactory, with resulting gains in efficiency expected. The need to avoid uncertainty, however,
leads the French to value long-term, stable business relationships. Managers are much more likely to be
selected on the basis of seniority. Long-term relationships are also cultivated by staying with the same
employer. Loyalty to one’s employer is seen as a virtue.
Another way to differentiate organizational styles is “organic” versus “systematic.” Organic firms
(characterized by the French) are viewed as a living organism. Systematic organizations (characterized by
the Americans) are seen as, ideally, a well-run machine. This cultural difference leads Americans to
describe French firms as disorganized and irrational. Americans place emphasis on accomplishing
objectives; a “doing” orientation. In contrast, the French measure a person’s worth by who he is rather
than it what he does; a “being” orientation.
The two cultures also differ in their orientation to time, which leads to differences in decision-making
style. Monochronic Americans prefer doing one thing at a time, reducing a complex task into a series of
smaller, more manageable ones. The polychronic French locus less on a particular task and more on the
people and processes regarding it. The French manager is easily distracted, and able to drop one task in
midstream and start another.
In high-context cultures people rely heavily on nonverbal situational cues to derive meaning when
perceiving and communicating with another. What is not said may convey more than what is said. Highcontext communication is more implicit and places a greater burden on the receiver to adequately
1
Adapted from C. Gouttefarde “American Values in the French Workplace” Business Horizons, March-April 1996,
Vol. 39, pp. 60-69.
49
Chapter 4
interpret the message. In contrast, those in low-context cultures derive the primary meaning in
communication from written and spoken words. Communication is highly verbal and explicit. The
French operate in a high-context culture, while Americans tend to prefer low-context communications.
These cultural differences between France and America result in vastly different business assumptions
which in turn lead to contrasting perceptions of what is considered appropriate workplace behaviors.
Table 1 compares these differing assumptions and behaviors.
AMERICAN ASSUMPTIONS AND
APPROPRIATE BEHAVIORS
FRENCH ASSUMPTIONS AND APPROPRIATE
BEHAVIORS
Middle managers should have a degree of
autonomy and be able to make decisions regarding
their own work.
Power should not be shared except with key senior
managers. Middle managers must consult with
their superiors and many others before making a
decision.
Job descriptions should exist and be used. The
same job shouldn’t be asked of more than one
person.
If a manager is of superior quality, it doesn’t matter
if he’s put in a job where he has no experience.
He’ll learn as he goes along.
Information should be shared to increase the
chances of making the most appropriate decision.
Information shouldn’t be revealed unnecessarily, as
the decision process may get out of control.
Decisions are left to the upper echelons.
Decisions should not be changed impetuously, as
planning is a costly activity.
Making and changing decisions quickly as the
situation demands is a sign of creativity,
intelligence, and flexibility.
Superiors should allow subordinates to handle the
minute details.
The role of the senior manager is to control
decisions, including the smallest details.
Positive and negative feedback is motivational and
vital to an employee’s self-esteem and
organizational efficiency.
It is important to respect the dignity of others and
to have them respect yours.
The appropriate method should be define before
addressing a problem.
Rules are very important for their symbolic value
and people should be kept in their places.
Work is most efficiently accomplished in private
without interruptions.
Good personal relationships are necessary. This
requires face-to-face contact, not solitary
confinement.
Satisfaction comes from carrying out a project
from beginning to end.
Satisfaction comes from being loyal to the
company and long tenure.
Unquestioning obedience to authority leads to poor
decisions.
Rules are there to be obeyed, although they can be
bent by superiors to fit the circumstances.
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