GROUP DYNAMICS

CROSS CULTURAL ISSUES

What is Culture?
We all belong to an entire collection of cultures
national cultures subcultures (based on regions, tribes etc) organizational or corporate cultures industry cultures professional or functional cultures

Culture
Culture can be defined as a shared system of values, beliefs, and attitudes It affects our own actions and the way we distinguish the actions of others. Culture is not a product of a single individuals personality, nor does it usually change significantly from one generation to the next.

What is Culture?
Culture is a complex concept, with many different definitions. We tend to limit our thinking about culture to racial and ethnic differences. A broader view also includes religion, class, gender, etc. Simply put, culture refers to a group or community that shares common experiences that shape the way they understand the world. It includes groups one is born into, such as gender, race or national origin. It also includes groups we join or become part of.

What is Culture? continued

Culture refers to the socially transmitted values, beliefs and symbols that are more or less shared by members of a social group. Kevin Avruch, Culture as Context Culture is a common system of knowledge and experiences that result in a set of rules or standards; these rules and standards in turn result in behavior and beliefs that the group considers acceptable. Pat K. Chew, The Pervasiveness of Culture in Conflict

What is Culture? continued

Culture is an iceberg, of which we see only the visible tip, also called as explicit culture. Explicit culture is represented by artifacts and products, such as language, food, artistic expression, behaviour and lifestyle (pace, public display of emotions, noise, physical contact, work ethics etc). Culture is an onion, with layers that must be peeled away to reach the core of implicit culture, the universal truths of the culture. Culture is a mirror image, in which the values (what we would like to do, how we would prefer to see ourselves) and norms (what we know we should do) are not same but are transposed and sometimes opposite.

Geert Hofstedes Dimensions of Culture

Uncertainty Avoidance Power Distance Individualism versus Collectivism Masculinity versus Femininity Confucian Dynamism (added later)

Uncertainty Avoidance
Extent to which people feel comfortable when they are exposed to an ambiguous or uncertain situation
Low Uncertainty Avoidance
Willing to take risks Appreciate flexibility and informality in work place Self fulfilment is a strong motivator Latitude and discretion in decision making rather than rigid internal rules and regulations.

High Uncertainty Avoidance

Risk averse Favour rigid, formal decision-making processes in work place Security is a strong motivator Order and predictability is paramount. Rules important and must be obeyed.

United States, Malaysia, India, the Germany, Spain, Portugal, Turkey, United Kingdom, Singapore, Denmark, South Korea, Greece, Portugal, Latin Sweden, Hong Kong America, Belgium, Japan, France

Organizations Perspective
Impact on Manager: A compensation specialist advises a Singapore company to adopt a different compensation plan for its sales force in Japan. Unlike the home sales force, which has low base pay and high commissions, the Japanese sales representatives will receive high base pay and lower commissions. Impact on Managed: Before beginning a project, a French employee of a global non-profit organization asks copious questions to ensure perfect understanding of the managers expectations.

Power Distance
Extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally
Large Power Distance
Power concentrated at the top Mechanistic characteristics Inequality among the members in the society Lack of free communication across different levels of the hierarchy Centralized control

Small Power Distance

Power equally distributed Organic characteristics Lack of hierarchical authority Promotes lateral communications Less centralization

Malaysia, Latin America, Middle East, China, Mexico, Panama, Indonesia, and India

Austria, Australia, New Zealand, Ireland, Denmark, Israel, Scandinavian Countries, the United Kingdom, and the United States

Organizations Perspective
Impact on Manager: Two headquarters managers demonstrate the effects of their cultures. A Saudi manager remains aloof from subordinates, tends to retain significant projects rather than delegating them and expects subordinates to step forward quickly to assume blame when things go wrong. On the other hand, a Danish manager enjoys sharing assignments and credit with subordinates but always assumes blame for any problems. Impact on Managed: A British training specialist goes to work for a Malaysian domestic company. He cannot understand why his attempts to offer suggestions are coldly received and why he is receiving poor performance reviews.

Individualism versus Collectivism

Individualism
Employees provided with a great deal of personal freedom and autonomy.

Collectivism
Do not allow the same amount of freedom and independence. Fails to cultivate an environment that fosters an innovative spirit. Measures contributions to teamwork and group achievement.

Emphasizes individual merit or achievement.

Pressure to conform
Sweden, the United States, Canada, Ecuador, Colombia, Hong Kong, Latin the United Kingdom, Australia, France, America, Taiwan, Pakistan, Indonesia, Italy, Netherlands, Italy, Belgium South Korea, China

Organizations Perspective
Impact on Manager: A U.S. manager in a Latin American country plans to promote an individual based on her work on an important project. Other managers explain that they use a broader range of factors in this decision, including evidence of loyalty. Impact on Managed: The performance of a South Korean sales force improves dramatically when incentives are changed from individual rewards to team bonuses.

Masculinity versus Femininity

Masculine Culture Performance-driven society where rewards and recognition are given for performance.
Major innovations are simply the outcome of financial rewards, prestige and a sense of accomplishment. People are competitive, ambitious, and assertive and risk taking, in order to achieve their goals. Give the utmost respect and admiration to the successful achiever . Switzerland, the United States, the United Kingdom, Mexico, Germany, Japan, Slovakia, Hungary, Austria, Venezuela, Italy Less competitive, higher priority on concern for others and little distinction is made between men and women in the same position. Denmark, Finland, Norway, Sweden, Scandinavian Countries, Netherlands, Chile, Thailand

Feminine Culture People tend to emphasize the quality of the whole life rather than money, success and social status, which are easier to quantify.

Organizations Perspective
Impact on Manager: A Swedish company promotes employee development practices such as coaching and mentoring that emphasize providing empathy and support. A manager in Japan has trouble performing this part of job. Impact on Managed: An HR department in Austria has been instructed by its Danish headquarters to implement a new work-life balance program. They try, but the program is not well accepted or implemented locally.

Confucian Dynamism (or long-term versus short-term orientation)

Long Term Orientation Adaption of tradition to the modern context High savings ratio driven by thrift Patience and perseverance toward slow results Concern with respecting the demand of virtue China, Japan, South Korea, Brazil, India Short Term Orientation Respect for traditions Lower savings rates Quick result orientation Concern with possessing the truth West Africa, Philippines, Norway, the United Kingdom, the United States

Organizations Perspective
Impact on Manager: A Chinese manager faced with promoting one of two Nigerian supervisors chooses the one with the most tenure and best work attendance. Impact on Managed: A Nigerian supervisor cannot understand why hes been passed over for promotion in his Chinese-owned company, though he is well placed in this community and has given his manager appropriate gifts.

Cultural Dimensions
(Trompenaars and Hampden-Turner)
Universalism versus Particularism Specific versus Diffuse Cultures Achievement versus Ascription Cultures Individualism versus Communitarianism Affective versus Neutral Culture Time as sequence vs. Time as synchronization Inner-directed versus Outer-directed

Universalism versus Particularism

Countries that exhibit universalistic cultures: Switzerland, Canada, the United States, the United Kingdom, Sweden Countries that exhibit particularistic cultures: Venezuela, Korea, Russia, China, Portugal From Organizations Perspective Impact on Manager: A Swiss manager insists that an employee be fired for absenteeism, although the employee has been caring for sick parents and has been making up for absences by working extra hours at home. Impact on Managed: An HR manager in Venezuela has been interpreting the U.S. parent companys rules flexibly to accommodate local culture but now faces a negative performance review by headquarters senior managers.

Specific versus Diffuse Cultures

(Public vs Private Space)
Countries that exhibit specific cultures: Sweden, Netherlands, the United Kingdom, Canada Countries that exhibit diffuse cultures: China, Nigeria, Kuwait, and Singapore From Organizations Perspective Impact on Manager: A manager of a Venezuelan energy company is cool to a young employees request for mentorship until a common friend makes the request. Impact on Managed: A British manager brought in to work for a Singapore MNC may have hurt his advancement by repeatedly evading the bosss invitations to social gathering in favour of spending time with other expatriates.

Achievement versus Ascription Cultures

Countries that exhibit achievement cultures: the United States, Australia, Canada, the United Kingdom, Netherlands Countries that exhibit ascription cultures: Egypt, Argentina, Czech Republic, Korea, Poland From Organizations Perspective Impact on Manager: A British manager supervising a Czech office senses hostility among the office employees after promoting a young worker. They obviously disagreed with the choice. Impact on Managed: An ambitious young Australian who has struggled to educate and establish herself is baffled by her Egyptian managers, who seem more impressed with the connections of her Egyptian team members than with her achievements.

Individualism versus Communitarianism

Countries that exhibits individualistic cultures: Israel, Canada, the United States, Denmark Countries that exhibits communitarian cultures: Egypt, Mexico, India, Japan, France From Organizations Perspective Impact on Manager: A Japanese team leader has trouble creating harmony within a global design team composed of Americans and Mexicans. Impact on Managed: An Indian employee assigned to a Canadian office is perplexed by the competition among project teams that the offices managers try to create.

Affective versus Neutral Culture

(Emotions)
Countries that exhibits neutral cultures: Ethiopia, Japan, Hong Kong, China, India Countries that exhibits affective cultures: Kuwait, Egypt, Spain, Russia, Argentina From Organizations Perspective Impact on Manager: A Spanish manager of a Japanese electronics subsidiary is corrected gently by visiting Japanese managers for expressing anger at a violation of clean-room rules. Impact on Managed: A Russian international assignee working for a Hong Kong real estate firm is convinced that her manager doesnt like her. Her manager never seems open or relaxed when meeting with her.

Time as sequence vs. Time as synchronization

(Keeping Schedules)
Countries that exhibit sequential cultures: the United States, Japan, Netherlands Countries that exhibit synchronic cultures: France, Spain, Belgium From Organizations Perspective Impact on Manager: A Japanese project team leader is irritated and doesnt know what to do with a French team member who is continually late to team meetings. Impact on Managed: A Belgian work unit thinks its unreasonable and arrogant when the U.S. headquarters cancels a traditional social ritual in order to meet a looming deadline.

Inner-directed versus Outer-directed

(Thinking)
Countries that exhibit inner-directed cultures: Israel, Norway, the United States, the United Kingdom, France Countries that exhibit outer-directed cultures: Venezuela, China, Russia, Kuwait, Singapore From Organizations Perspective Impact on Manager: A British company has outsourced design of a component to a Russian firm. The British expect a design that ensures top performance across the full range of criteria and the latest technology. The Russians argue that the British should think more about what their end customers really require. Impact on Managed: A Norwegian employee assumes that if he works hard enough, he will be rewarded with a promotion.

Issues in Cross Cultural Teams

Communication, Language and Expression
Information gaps Decision Making

Work Style Dominating Influences Motivators and Expectations from job