Part I: Intercultural Effectiveness in Global Management International Management Behavior Henry W. Lane, Joseph J. DiStefano, and Martha L. Maznevski Part I: Intercultural Effectiveness in Global Management

Definition of “Culture” Kluckhohn and Strodtbeck “a shared, commonly held body of beliefs and values that define the ‘shoulds’ and ‘oughts’ of life” “the culture of a country – or other category of people – is not a combination of the properties of the ‘average citizen,’ and not a ‘modal personality.’ It is, among other things, a set of likely reactions of citizens with a common mental programming” Hofstede “the collective programming of the mind which distinguishes one group or category from another” Culture shapes assumptions, perceptions, behavior awareness of culture’s impact comes from exposure to different cultures

Culture At the surface: Language, clothing, behavior In fact: Learned, shared assumptions and values that dictate What may be successful and what not What are the priorities of the group How people should behave Simplifies action Provides source of social identity Is a group characteristic; individuals are all different

Culture and Individual Behavior Influences on Culture History, Language Religion, Climate, Physical Environment, etc. Culture Shared Assumptions and Values, Systematic, Learned Individual Perceptions Describe, Interpret, Evaluate Individual Behavior Cultural Institutions Educational, Social, Political, Legal, Economic,

When People Meet Institutions of Culture A Influences on Culture A Individual A Perceptions Individual A Behavior Institutions of Culture A Influences on Culture B Culture B Institutions of Culture B Individual B Behavior Individual B Perceptions Synergy or Conflict Potential Different Background Different assumptions and values about what should happen in effective interaction Different Interpretation and Evaluation of Events Different Decisions or Actions in the Same Situation When People Meet

Intercultural Communication and Effectiveness Interpersonal communication challenges are compounded by intercultural communication difficulties Normal reactions to lack of communication imply other person has problem, hence: slowing speech speaking more distinctly listening more carefully Interpretation requires manager’s willingness to explain ability to get outside his/her own culture

Communication and Language Communication ≠ use of language alone send idea receive idea from someone else and understand it Communication = “dynamic process whereby human behavior, both verbal and non-verbal, is perceived and responded to” In the case of cross-cultural communication: initiator must understand cultural differences and similarities that affect a respondent of another culture and the initiator too both must want to communicate and seek mutual understanding both need to set aside superior-inferior relationships based on membership in particular cultures

Barriers to Effective Communication Process Assumptions other person sees the situation same as you other person shares your assumptions other person experiences your feelings other person understand you based on your logic, not their feelings communication situation has no relationship to past events the other person has a problem understanding the situation other cultures are becoming more like yours ... others are more like you (US perspective??) Content Assumptions status/hierarchy and its effect on the communication role of individual vs. group role of contracts

Dynamics of Differing Worldviews Assumptions: the more others share them the better the communication Assumptions influence Perceptions (understanding) then may become barriers to effective relations “we see what we want to see and hear what we want to hear” Key: Fit between assumptions and perceptions no fit: cognitive inconsistency -> negative feeling, i.e., discomfort then, -> distortion of perceptions to achieve consistency with assumptions and false comfort i.e., we seek pleasure to avoid pain good fit: cognitive consistency -> justified “harmony, comfort” cross-cultural situations: assumptions are likely to have no fit with perceptions -> misunderstanding

The MBI Model: How to Improve Interpersonal and Team Effectiveness High Performance Value the Differences and Differences Create Value Map Bridge Integrate Understand the differences Communicate across the differences Manage the differences

Culture Maps - Frameworks Edward T. Hall Geert Hofstede Kluckhohn & Strodtbeck Trompenaars Sociological & Anthropological Framework Variations in Value Orientations Culture Elements Value Patterns Universalism vs. Particularism Collectivism vs. Individualism Affective vs. Neutral Relationships Achievement vs. Ascription Orientation Towards Time Internal vs. External Control time space things friendships agreements and interpersonal behavior power risk individualism masculinity time and management theories - practice relation to nature orientation to time belief about human nature mode of human activity relationships space and international business practice

Value Orientations Framework (Kluckhohn & Strodtbeck) Is one tool for “mapping” differing patterns of beliefs held by different cultures Can promote deeper cultural awareness BUT, must be used prudently Presupposes understanding of: concepts underlying culture assumptions underlying the framework itself

Value-Orientation Framework Assumptions There are common (universal) themes in the challenges that different societies faced over time Six universal challenges or issues or themes are identified by K & S as being faced by all societies Different societies developed different ways to cope with each of these issues These differences

Value-Orientation Framework Assumptions All variations of a particular value orientation exist in a given culture every member of the culture cannot believe that there is only one way to deal with a given situation Each culture has an ordered preference of variations for solving a particular problem a dominant variation may reflect

Variations in Relation to Environment: Management Impact

Time Orientation and Management Impact

Human Nature and Management Impact

Activity Orientation and Management Impact

Relationships Among People and Management Impact

Spatial Orientation and Management Impact

High/Low Context Cultures - Hall

Culture and the workplace (Hofstede) Hofstede groups national cultures along dimensions meaningful to business: Work-related values, not universal “Home” country values used to determine HQ policies “Local” values may persist over MNC efforts to create global corporate culture MNC may create unnecessary morale problems if it insists on uniform moral norms Hofstede’s work is a good starting point for understanding of business situations

Hofstede’s Dimensions Power Distance Individualism versus Collectivism Masculinity versus Femininity Uncertainty Avoidance

Hofstede's dimensions Power Distance: degree of social inequality considered normal by people distance between individuals at different levels of a hierarchy scale is from equal (small power distance) to extremely unequal (large power distance)

Individualism vs. Collectivism: Hofstede's dimensions Individualism vs. Collectivism: degree to which people in a country prefer to act as individuals rather than in groups the relations between the individual and his/her fellows

Hofstede's dimensions Uncertainty Avoidance: more or less need to avoid uncertainty about the future degree of preference for structured versus unstructured situations structured situations: have tight rules may or may not be written down (high-context society?) high uncertainty avoidance: people with more nervous energy (vs. easy going), rigid society, “what is different is dangerous.”

Hofstede’s dimensions Masculinity versus Femininity: division of roles and values in a society Masculine values prevail: assertiveness, success, competition Feminine values prevail: quality of life, maintenance of warm personal relationships, service, care for the weak, solidarity

Six Arenas for Synergy in International Management