Cross-cultural issues in Management

1. Cross-cultural issues in Management Dr Joan Harvey

2. Geert Hofstede • Dutch social anthropologist • Obtained attitude data from IBM worldwide in late 1970s • Factor analysed and looked for factors which differentiated nationalities • Data on 50 countries, but only sufficient N for 40 in first book

3. Geert Hofstede • Originally four main factors • Masculinity femininity • Ambition and desire to achieve versus social concern and interpersonal relationships • Power distance • Amount of power that can be wielded • Uncertainty avoidance • inflexibility • Individualism- collectivism • Help and commitment versus high personal achievement • and later added [in 1990s] • LT-ST orientation [Confucian dynamism]

4. Geert Hofstede • Issues: • Study was based in 1970s and many countries have changed a lot since then- has this affected their orientation? • Eastern European changes • Some developing countries are now developed • Others have changed politically- e.g. South Africa

5. Geert Hofstede • Issues: • All countries will have changed anyway in nearly 30 years • Changes in technology and global communication • Migration of peoples • Are cross-cultural differences still as pronounced?

6. Geert Hofstede • Issues: • This study put cross-cultural differences into the mainstream rather than “error variance” in other studies • Encouraged other theorists, e.g. Trompenaars • Recent developments with studies all over the world have increased considerably the number of countries that have been mapped

7. Examples of other theories: [a] Trompenaars 7 factors: • Universalism versus particularism • Work relationships mixed with personal ones • Individualism versus collectivism • Affective versus neutral culture • Specific versus diffuse relationships • Distinct relationships versus diffuse ones • Achieving versus ascribing status • Earned through achievement or recognised e.g. seniority/age • Perception of time • Sequential [monochronic] or parallel [polychronic] • Relating to nature

8. Example [b] GLOBAL project • Assertiveness • Future orientation • Gender egalitarianism • Humane orientation • Institutional collectivism • In-group collectivism • Performance orientation • Power distance • Uncertainty avoidance

9. Two more factors that are interrelated. • Time perception • Polychronic or cyclical [e.g. southern Europe, China, Japan] • Monochronic [e.g. northern Europe, US] • Context • High means that perception of what is said is taken in context, including NVCs • Low means words are interpreted literally

10. Other dimensions from indigenous social psychology • China • Confucian values • Filial piety • Industriousness • Giving and protecting face • Guanxi • Social networking crucial to business relationships • Ren ching • Respectful exchange of gifts, favours and obligations

11. Other dimensions • Japan • Amae and respect • Reliance and dependence upon indulgent love of an older person • Kanban • Concept of whole transcending sum of parts • Ringi • Upward communications and decision making • Sacred treasures- • life time employment, seniority, enterprise unions/families • Harmony and cooperation [‘wa’] • Gakureki Shakai • Social system attaching value to education

12. Other dimensions • Africa • Cognitive tolerance • Not on seat • Africa time • Indaba [Malawi] • Ubuntu [Malawi] • Tribal loyalty • Power and respect based on experience • Managers ‘right to manage’

13. Other dimensions • Several cultures resent ‘intrusiveness’ of western values, western research methods, e.g. • Philippines • Sub-Saharan Africa

14. Other dimensions • Latin American countries: emphasis on • Respect • Family • Hierarchy • Honour • Affiliative obedience • Cultural rigidity • Machismo • Sympatia

15. Other dimensions • India • Detachment as a coping mechanism, therefore working hard is unrelated to success or failure • Ingratiation techniques to advance personal goals within hierarchical collective context • [similar to parts of western Africa]

16. Example area1 : Expatriate workers • Qualities for success hard to define, e.g. Brislin [1981] • Cognitive ability • Task orientation • Tolerant personality • Strength of personality, include self esteem • Relations with others, include empathy • Potential to benefit from cross-cultural experience, including openness to change

17. Expatriate worker qualities • Mendenhall and Oddou [1985] • Self-orientatedness • Self esteem, Self confidence, Mental adjustment • Other orientatedness • Ability to interact and develop relationships • Perceptual factors • Empathy, being non-judgemental • Cultural toughness • Ability to adjust to very different culture

18. Expatriate training • Hofstede suggests: • Awareness • Additional knowledge • skills • Training methods • Cultural assimilators • Cultural analysis systems • Contrast [American] method train in opposites

19. Expatriation success or failure measures • Expatriation satisfaction and rate of early returns • Expatriate adaptation and adjustment • Expatriate job performance • Determinants of above include • Adjustment of spouse and family • Developing specific coping strategies • Accurate understanding of rules, customs, behaviours and attributions • Being able to tolerate cultural differences with which Expatriate may totally disagree

20. Example 2 : Theory Z • Application of Japanese management principles to American & British businesses • Long term focus • Zero tolerance • Personal responsibility for self-development • Positive attitudes to seniority • Teamwork rather than individual achievement • Commitment and trust • Quality and pride • Multi-skilling

21. Example 3: R & S • Issues include: • Gender inequalities, especially in ‘masculine’ societies [e.g. poorer promotion prospects for women in Japan, France, etc] • Specific types of favouritism, but not considered nepotism in some cultures, e.g. • China • India • Sub-Saharan Africa

22. Example 3: R & S • Differences in emphasis on methods, e.g. • Assessment Centres and Biodata • Graphology • References • And in selection criteria • Team member opinions • Same tribal group • Word of mouth

23. Key text Hofstede G and Hofstede G (2005) Culture and Organizations: Software of the mind. 2nd edn London: McGraw Hill This book has been published in Czech, translated by Dr Ludek Kolman