COEUR - BCM Business Creativity Module “Intercultural Competencies in Europe” Andrew Turnbull, Module Coordinator Outcomes • Understanding ‘culture’ • Creating awareness of cultural differences • Developing intercultural competencies Intercultural Competencies in Europe 2.3 Cultural diversity as facilitator of change Entrepreneurship Orientations Global Entrepreneurship Following the idea of global standardisation, taking US experiences as core benchmark. Local Entrepreneurship EuroPreneurship AfroPreneurship SinoPreneurship Following the idea of the transnational enterprise, adapting strongly to local conditions. Intercultural Competencies in Europe National Entrepreneurship Cultures Differences become evident in: • Traditional political and societal stereotypes of institutional coordination • Business and leadership mentalities • Attitudes, behavioural norms • Natural and cultural specialities Intercultural Competencies in Europe National Stereotypes and Intercultural Management • F - centralistic, hierarchical, belief in elites, democratic, easy-living, emotional... • GB - polite, reserved, fair play, nations within a nation, each different, traditional, class orientated… • D - formal, risk-averse, punctual, precise to pedantic, bureaucratic... Intercultural Competencies in Europe NORTH Thinking Professional Manager Rationalism WEST Sensing Experiential Manager Pragmatism EAST Intuiting Developmental Manager Wholism SOUTH Feeling Convivial Manager Humanism Fig. 1 – European comprehensiveness (adpated from Lessem and Neubauer (1994), p.p. 268, 274 Intercultural Competencies in Europe Managerial Experiences (2001) Sir Chris Gent (Vodafone) vs. Rupert Esser (Mannesmann) • always very diplomatic and indefinite – no “yes” or “no” open to interpretation and misunderstanding • strong common code of communication and formalised behaviour tonality, questions, ideas are more important than explicit orders • Short and friendly business-communication vs. ‘serious’ negotiations the principle of understatement vs. the proof of expertise Intercultural Competencies in Europe European Entrepreneurship! „A very difficult subject, since from my experience, the similarities, notably in Northern Europe, are now so much greater than the differences. Particularly true as regards the entrepreneurs themselves... The major differences apply to the systems in which individuals work - fiscal, financial, industrial and educational - only on this level is it valid to talk about differences. There is a "common European spirit of entrepreneurism“ developing. National "systems" however, tend to frustrate this to the extent that, for example, there is not an enlightened taxation policy regarding share option operations, or an education system which puts weight on commercial as well as technical instruction at secondary and tertiary levels.“ (Weaver, John., Central Research Laboratories Ltd, e-mail-Antwort an den Verfasser: jweaver@crl.co.uk June 2000) Intercultural Competencies in Europe The Macro Environment Entrepreneurial behaviour is embedded in specific surroundings from which it can‘t be separated. Differences are based on macro-environmental factors: • Business and financial constitution, IPR, labour legislation... • Development and utilisation of technologies, intensity and transfer of research, education levels, propensity to innovate... • Population structures/demographics, attitudes, societal values... • Economic situation and perspective, degree of global integration, international competitiveness, language issues... • Availability of resources: natural, human, communication, technology, logistics, service... Intercultural Competencies in Europe EuroPreneurship! „Europe‘s New Economy“ Charles Leadbeater, Centre for European Reform, discovered a basis for the formation of a new common European Business-Culture at high-tech enterprises : „Encouragingly, a new business generation is emerging in Europe, with shared aspirations, values and outlooks. The common features among Europe's 20 and 30-something entrepreneurs are far more striking than the differences. They tend to create businesses with similar characteristics although they do so in quite different local circumstances and regulatory regimes. This new generation generally speaks English, runs nonunionised companies with flat management structures that are international in outlook, and raises finance through venture capital rather than bank lending.“ (www.cer.org.uk/articles/n_9_4.html, 26.6.2000,) Intercultural Competencies in Europe Understanding Culture • What is it and what is it not? • Learning from the experts – Edward Hall – Geert Hofstede Intercultural Competencies in Europe Culture is.... (1) ..a shared system of meanings, which are (2) ..relative Specific to Inherited individuals Personality and learned (3) ..learned (4) ..about groups Specific to Learned Culture groups Universal Human nature Biological Intercultural Competencies in Europe Culture is not.... (1) ..right or wrong (2) ..inherited (3) ..about individual behaviour Intercultural Competencies in Europe Winter 2008/09 Intercultural Competencies in Europe Local Adaptation The world is not homogeneous. Different cultures manifest in colours, scripture, habits and more. Successful transnational branding adapts to peculiarities while maintaining the structural elements and character of the brand. Ronald McDonald Learning from the experts.. Edward T. Hall *16.05.1914, USA - ‚The Silent Language‘ (1959) - 2 Dimensions: ‚High context‘ vs. ‚low context‘ ‚Timeorientation‘ Intercultural Competencies in Europe Do you understand your culture? 1. a) b) 2. a) b) Do you usually pick up the body language of others and know intuitively if something is bothering them? No Yes When deciding on a person to promote in your department, you face the problem of choosing between two equally qualified individuals, one of whom is your cousin. What do you do? Choose the applicant who is not your cousin Choose your cousin Intercultural Competencies in Europe Do you understand your culture? 1. a) b) 2. a) b) 3. a) b) You are on vacation. The mass transit train arrives late and the platform is quite crowded. What do you do? Push forward Wait patiently to board Are you comfortable doing multiple tasks at the same time? No Yes Are your business colleagues and the group you socialise with usually similar? No Yes Intercultural Competencies in Europe Learning from the experts.. Geert Hofstede, *2.10.1928, Netherlands - ‚Cultures Consequences‘(1980) - 4 Dimenions: Power Distance Individualism Uncertainty Avoidance Masculinity Intercultural Competencies in Europe The culture onion Intercultural Competencies in Europe The 4 Dimensions.... 1) Power distance: Extent to which the less powerful members of organisations and institutions accept and expect that power is distributed unequally 2) Individualism vs. Collectivism: Extent to which people are expected to stand up for themselves and to choose their own affiliations, or alternatively act predominantly as a member of a life-long group or organisation Intercultural Competencies in Europe The 4 Dimensions.... 3) Masculinity vs. Femininity: Refers to the value placed on traditionally male or female values 4) Uncertainty Avoidance: Extent to which members of a society attempt to cope with anxiety by minimizing uncertainty Intercultural Competencies in Europe The 5th Dimension... 5) Long v. Short Term Orientation • Long term orientation characteristics - persistence - ordering relationships by status and observing this order - having a sense of shame • Short term orientation characteristics - personal steadiness and stability - protecting your ‘face’ - respect or tradition Intercultural Competencies in Europe Index of the 4 Dimensions ...especially in BCM Countries Country PowerDistance Individualism Masculinity UncertaintyAvoidance China 80 20 66 40 France 68 71 43 86 Poland 68 60 64 93 Portugal 63 27 31 104 Czech Republic 57 58 57 74 35 67 66 65 United Kingdom 35 89 66 35 31 71 5 29 Germany Sweden Source: Adapted from Hofstede Intercultural Competencies in Europe Implications for working styles of a society ? Collectivism-oriented Individualism-oriented Social recognition... Individual careers... ... ... Uncertainty avoidance high Uncertainty avoidance low Work place guarantees Low social security ... ... Power Distance high Power Distance low Low risk of strike.. High risk of strike.. .... ... Masculine Culture Feminine Culture Status symbols Distinct social benefits ... ... Intercultural Competencies in Europe Practical Applications for International Teamwork? - People from different cultures are not just from different parts of the world - their way of perceiving the world is different! - Hofstede‘s research creates awareness of these differences so that we can be more effective when interacting with other cultures. - Considering this concept can reduce frustration and misunderstandings Intercultural Competencies in Europe Globe Smart Is Matthias a typical German? UK and Matthias Living in China? 2.3 Cultural diversity as facilitator of change A Single Europe ? Intercultural Competencies in Europe 2.3 Cultural diversity as facilitator of change A Single Europe ? Our Vision Heaven • • • • • Hell European diversity French cooks • British cooks is fostering creativity British police • German police German engineers and in business society • French engineers Swiss organizers • Italian organizers to support sustainable Italian lovers • Swiss lovers future development! Intercultural Competencies in Europe Conclusion • Learn as much as possible about cultures • Learn from the experts – but form your own opinion! • Avoid stereotypes! Good luck! Intercultural Competencies in Europe Literature • Hall, E.(1990): The silent language, New York • Hoecklin, L.(1995): Managing Cultural Differences: Stratgies for Competitive Advantage, Wokingham et. Al. • Hofstede, G.(1987): Culture‘s Consequences: International Differences in work-related values, Beverly Hills u.a. • Pinxten, R./Cornelis, M./Rubinstein, R.(2007): European Identity: Diversity in Union. In: International Journal of Public Administration, Vol. 30 Issue 6/7, p. 687-698 • Reynolds, S./Valtentine, D.(2004): Guide to Cross-Cultural Communication, New Jersey • Thiagarajan, S./Steinwachs, B.(1990): Barnga: A Simulation Game on Cultural Clashes, London Intercultural Competencies in Europe