Globalization Competencies Intercultural Management Lecture by Melanie Hiller Faculty of Mathematics and Economics University Ulm polymundo - Consultancy for Globalization Intercultural Management ISP Melanie Hiller 06.07.2010 1 Content 1. Globalization and Culture?! 2. Culture – What is that? 3. Intercultural Management! Intercultural Management ISP Melanie Hiller 06.07.2010 2 Intercultural Management ISP Melanie Hiller 06.07.2010 3 World Production World Trade World Market Forms of Globalization World Communication Economy World Information World Standards Technique Environment Environmental Consciousness Ecology Environmental Crisis World Politics Politics World Society World Culture Intercultural Management ISP Melanie Hiller 06.07.2010 4 Definition Globalization "Globalization is the continuous interlinking process of different worldwide happening occurrences in the fields of economy, technique, politics, culture and social aspects of nations with interlinked interdependencies and consequences.“ Stehr, C. (2003), p. 47 Intercultural Management ISP Melanie Hiller 06.07.2010 5 Multi-dimensional Process Economy Politics Ecology Technique Social Culture Cp: Teusch, U. (2004) Intercultural Management ISP Melanie Hiller 06.07.2010 6 The cultural Process? Cultural Homogenization? World Culture? Cultural Heterogenization? Clash of Civilizations? Cp: Featherston, M. (1990); Varwick, J. (2004); Huntington, S. (1996) Intercultural Management ISP Melanie Hiller 06.07.2010 7 Cultural Glocalisation Global Homogenization Local Heterogenization Glocalisation „Think globally, act Locally“ Cp: Roland, R. (1998) Intercultural Management ISP Melanie Hiller 06.07.2010 8 Summary Forms of Globalization! Cultural Form of Globalization! Global Heterogenization Local Homogenization (Cultural) Glocalisation! Intercultural Management ISP Melanie Hiller 06.07.2010 9 Content 1. Globalization and Culture?! 2. Culture – What is that? 3. Intercultural Management! Intercultural Management ISP Melanie Hiller 06.07.2010 10 Culture - Definition (I) „Culture is communication and communication is culture.“ Hall, E. (1990), p. 186 Intercultural Management ISP Melanie Hiller 06.07.2010 11 Culture – Definition (II) “Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.” Hofstede, G. (2004), p. 2 Intercultural Management ISP Melanie Hiller 06.07.2010 12 Culture - Definition (III) „Culture is a shared system of meanings. It dictates what we pay attention to, how we act and what we value. Culture organizes such values into what Geert Hofstede calls „mental programs“.“ Trompenaars, F./Hampden-Turner C. (1997), p. 13 Intercultural Management ISP Melanie Hiller 06.07.2010 13 Culture as a collective System Enables individuals and groups to deal with each other and the outside world Shared Values, Beliefs, Norms, Assumptions and Perception Transmitted by Rituals, Behavior, Symbols, Communication, Artifacts, Art and Technology Cultural Standards Intercultural Management ISP Melanie Hiller 06.07.2010 14 Culture – Values and Practices www.managingchange.co Intercultural Management ISP Melanie Hiller Hofstede, G. (2004) 06.07.2010 15 Individual and Culture Specific to Individual Learned and Inherited Personality Specific to group or category Learned Culture Universal Human Nature Inherited Hofstede, G. (2004) Intercultural Management ISP Melanie Hiller 06.07.2010 16 Culture Shock Based on Oberg, K. (1960) and Gullahorn, J. T./Gullahorn, J. E. (1963) Intercultural Management ISP Melanie Hiller 06.07.2010 17 Summary Values, Norms, Beliefs, Assumptions, Perception Rituals, Symbols, Behavior and Communication Artifacts, Art, Technology Intercultural Management ISP Melanie Hiller 06.07.2010 18 Content 1. Globalization and Culture?! 2. Culture - What is that? 3. Intercultural Management! Intercultural Management ISP Melanie Hiller 06.07.2010 19 Why Intercultural Management? Globalization Ecology Culture Technique Social Politics Economy Politics / Law Economy Social Technique Geography/ Nature International Management Culture „Think globally, act Locally“ Intercultural Management ISP Melanie Hiller 06.07.2010 20 External Factors Mead, R. (1998) Intercultural Management ISP Melanie Hiller 06.07.2010 21 Worst Case Example Intercultural Management ISP Melanie Hiller 06.07.2010 22 Intercultural Management Skills Understand: Nature of Culture, its Influence on Behavior (in the Workplace) Knowledge: about specific Cultures Recognizing: Differences Between Cultures Implementation of structures Intercultural Management ISP Melanie Hiller 06.07.2010 23 Intercultural Competencies Cognitive Affective Conativ Knowledge: - Countries - Culture - Cultural Systems Social Skills: - Sympathy - Empathy - Tolerance - Open Minded Implementing: Communication - Language - Behavior Intercultural Management ISP Melanie Hiller 06.07.2010 24 How to measure Culture? Intercultural Management ISP Melanie Hiller 06.07.2010 25 Relative Frequency How to compare Cultures? 1:00 pm 1:30 pm 2:00 pm 2:30 pm 3:00 pm 3:30 pm Time/Accuracy Based on Barmeyer, Ch. (2000) Intercultural Management ISP Melanie Hiller 06.07.2010 26 Cultural Dimensions Cultural Standards Cultural Dimensions (Values and Behavior) Extreme 1 Intercultural Management ISP Extreme 2 Melanie Hiller 06.07.2010 27 Three Concepts 4-D-Concept from Hall 5-D-Concept from Hofstede 7-D-Concept from Trompenaars Intercultural Management ISP Melanie Hiller 06.07.2010 28 4 Dimensions - Hall Context-Orientation Space-Orientation Time-Orientation Message Intercultural Management ISP Melanie Hiller 06.07.2010 29 Context-Orientation Low-Context Messages/Information are explicit, direct and unambiguous Values: Individualism Direct verbal interaction less nonverbal expressions Intercultural Management ISP Melanie Hiller High-Context message is part of the context / indirect Information Values: Group Sense Indirect verbal interaction more nonverbal expressions 06.07.2010 30 High-Context vs. Low-Context www.genderwork.com Intercultural Management ISP Melanie Hiller 06.07.2010 31 High-/Low-Context Cultures High-Context vs. Low Context Austrian www.genderwork.com Intercultural Management ISP Melanie Hiller 06.07.2010 32 5 Dimensions - Hofstede Power Distance Individualism vs. Collectivism Masculinity vs. Femininity Uncertainty Avoidance Long Term vs. Short Term Orientierung Intercultural Management ISP Melanie Hiller 06.07.2010 33 Power Distance Power distance focuses on the degree of equality or inequality between people in the country or society. Intercultural Management ISP Melanie Hiller 06.07.2010 34 High/Low Power Distance Value Inequality Key Element Low PDI People’s Equally Minimized Decentralization rights Equal powerful people older people Try to look less powerful Not respected High PD Respect for Status Needed Centralization Power holders entitled to Privileges Try to look as powerful as possible Respected Hofstede, G. (2004) Intercultural Management ISP Melanie Hiller 06.07.2010 35 PD - Index http://businesscoaching.typepad.com - Based on Hofstede, G. (2004) Intercultural Management ISP Melanie Hiller 06.07.2010 36 Uncertainty Avoidance Uncertainty Avoidance focuses on the level of Avoidance or Tolerance for Uncertainty and Ambiguity within the Society ? ? ? ? ?? ? Intercultural Management ISP Melanie Hiller 06.07.2010 37 High vs. Low UA High UA Low UA Value Certainty Exploration Distinction True or False Urgent or Not Key Element What is different What is is dangerous different causes curiosity Hofstede, G. (2004) Intercultural Management ISP Melanie Hiller 06.07.2010 38 UA - Index http://businesscoaching.typepad.com - Based on Hofstede, G. (2004) Intercultural Management ISP Melanie Hiller 06.07.2010 39 Long vs. Short Term Orientation Time-Orientation focuses on the degree the Society embraces long- or short-term devotion to traditional or forward thinking Values. Intercultural Management ISP Melanie Hiller 06.07.2010 40 Long/Short Term Orientation Long Term Value Long Term Benefits Distinction Serve Goals Key Element Tradition and History Short Term Saving Face Proper or Not Quick Results are expected Hofstede, G. (2004) Intercultural Management ISP Melanie Hiller 06.07.2010 41 LTO - Index http://businesscoaching.typepad.com - Based on Hofstede, G. (2004) Intercultural Management ISP Melanie Hiller 06.07.2010 42 7 Dimensions - Trompenaars Universalism vs. Particularism Individualism vs. Collectivism Neutral vs. Emotional Defuse vs. Specific Achievement vs. Ascription Human-Time Relationship Human-Nature Relationship Intercultural Management ISP Melanie Hiller 06.07.2010 43 Individualism vs. Collectivism This Dimension focuses on the Degree the Society reinforces Individual or collective Achievement and interpersonal Relationships. Intercultural Management ISP Melanie Hiller 06.07.2010 44 Individualism and Collectivism Individualism Collectivism Value Individual Freedom Group Harmony Distinction Me/Others In/Out Group Key Element The Task is important Relationships is important Trompenaars, F./Hampden-Turner, C. (1997) Intercultural Management ISP Melanie Hiller 06.07.2010 45 No Index by Trompenaars IDV – Index ? USA Individualism Canada Individualism Individualism Great Britain Individualism Germany Individualism Mexico Brazil Indonesia Collectivism Collectivism Collectivism Collectivism Trompenaars, F./Hampden-Turner, C. (1997) Intercultural Management ISP Melanie Hiller 06.07.2010 46 Cultural Dimensions – Critique? Qualitative insights rather than Quantitative Data Useful in Understanding of different Cultures, Situations and Relationships Orientation Intercultural Management ISP Melanie Hiller 06.07.2010 47 Summary Intercultural Competencies Intercultural Management Cultural Dimension (Hall, Hofstede, Trompenaars) Orientation Intercultural Management ISP Melanie Hiller 06.07.2010 48 Summary 1. Globalization and Culture?! 2. Culture – What is it? 3. Intercultural Management! Intercultural Management ISP Melanie Hiller 06.07.2010 49 Thank you very much for your attention Intercultural Management ISP Melanie Hiller 06.07.2010 50 Intercultural Management ISP Melanie Hiller 06.07.2010 51 Sources (I) Barmeyer, Ch. (2000): Interkulturelles Management und Lernen – Studierende und Führungskräfte in Frankreich, Deutschland und Quebec, Frankfurt/ Main, 2000. Gullahorn, J. T./Gullahorn, J. E. (1963): Gullahorn, J. T., and Gullahorn, J. E. (1963) An extension of the U-curve hypothesis. Journal of Social Issues 19 (1), 33-47. Featherston, M. (1990), Global Culture: Nationalism, Globalization, and Modernity, London et al., 1990. Hall, T. (1990): Hall, Edward T., The Silent Language, New York, 1990. Huntington S. (1996): Huntington, Samuel P., Clash of Civilizations and the remaking of world order, New York, 1996. Hofstede, G. (2004): Hofstede, Geert, Cultures and Organizations: Software of the Mind, London et al., 2004. Mead, R. (1998): Mead, Richard. International Management: Cross cultural dimensions, Blackwell, 1998. Intercultural Management ISP Melanie Hiller 06.07.2010 52 Sources (I) Robertson, R. (1998): Robertson, Roland, Globalization – Social Theory and Global Culture, London et al., 1998. Stehr, C. (2003): Stehr, Christopher, Globalisierung und Destabilisierungstendenzen innerhalb des Internationalen Systems: eine Indikatorenanalyse für ausgewählte Nationalstaaten, Berlin, 2003. Teusch, U. (2004): Teusch, Ulrich, Was ist Globalisierung? – Ein Überblick, Darmstadt, 2004. Trompenaars, F./Hampden-Turner, C. (1997): Trompenaars, Fons/ Hampden-Turner, Charles, Riding the Waves of Culture: Understanding Cultural Diversity in Global Business, New York et al., 1997. Oberg, K. (1960): Oberg, Kalervo, Culture shock: Adjustments to new cultural environments. Practical Anthropology. 4, 177-182 Varwick, J. (2004): Varwick, Johannes, Globalisierung, in: Woyke, Wichard (Hrsg.), Handwörterbuch Internationale Politik, Bonn, 2004. . 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