Cultural Differences Session Four

Agenda Culture Consequences of Culture for HRM Expatriates

What is Culture? Culture consists of patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups, including their embodiments in artifacts; the essential core of culture consists of traditional ideas and especially their attached values.

What is Culture? Culture consists of patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups, including their embodiments in artifacts; the essential core of culture consists of traditional ideas and especially their attached values.

Research on Culture Most important works on culture come from … the Netherlands. Hofstede research: questionnaire to all IBM offices around the world asking about cultural values

Five Dimensions of Culture

Individualism vs. Collectivism Individualism: ties between people are loose and people look after their own interests Collectivism: emphasis on social ties and bonds between people (people are part of cohesive groups)

Power Distance ‘The extent to which members of a society accept that power in institutions and organizations is distributed unequally.’ (Hofstede, 1991) Perceived distance between superior and subordinate.

Uncertainty Avoidance Reflects a society’s tolerance for situations of uncertainty and ambiguity and the extent to which it tries to manage these situations by Providing explicit and formal rules and regulations Rejecting deviant ideas and behavior

Masculinity vs. Femininity ‘Masculine’ social values: money, achievement, recognition ‘Feminine’ social values: more concern for people and quality of life In masculine societies the role between males and females are more rigidly defined

Time Orientation (later added) Long-term orientation: values saving and persistence in achieving goals. Hong Kong: high rate of per capita savings Short-term orientation: maintaining personal stability or happiness and living in the present

How does Hong Kong score? A= True, B= False Hong Kong scores relatively high in individualism. Hong Kong scores low on uncertainty avoidance.

How do YOU score? Cross-Cultural Values Survey

Agenda Culture Consequences of Culture for HRM Expatriates

How Culture affects HRM Training of employees Motivation of employees Leadership and decision making Organizational structure

Training and Developing a Global Workforce Table 15.1

Motivation UK

Leadership and decision making MBO (Management by Objectives): Management tool which motivates personnel by setting mutually agreed objectives between a boss and his/her subordinates. Requires low power distance Also, in feminine cultures more emphasis on consensus.

Organizational Structure

Cultures in Hong Kong Relatively less heterogeneous in Hong Kong than in the US or Europe Major race components in Hong Kong firms Local Hong Kong residents Mainland Chinese Taiwan Chinese Caucasians Indian or Pakistanis Southeast Asians Black Hong Kong firms are highly export oriented.

Cultural diversity Previous session: Lack of cohesiveness leads to: Lower levels of participation within a group Lower levels of conformity to group norms Less emphasis on group goal accomplishment In short: Team will be less effective How to manage cultural diversity? One framework: The Johari Window

Managing cultural diversity: The Johari Window KNOWN TO SELF UNKNOWN TO SELF KNOWN TO OTHERS UNKNOWN TO OTHERS OPEN BLIND HIDDEN UNKNOWN

Managing cultural diversity: The Johari Window KNOWN TO SELF UNKNOWN TO SELF KNOWN TO OTHERS UNKNOWN TO OTHERS OPEN BLIND HIDDEN UNKNOWN

Managing cultural diversity: The Johari Window KNOWN TO SELF UNKNOWN TO SELF KNOWN TO OTHERS UNKNOWN TO OTHERS OPEN BLIND FEEDBACK DISCLOSURE HIDDEN UNKNOWN

Test Your Knowledge Employees from a high-power distance culture would feel most comfortable in a training class that: Involved several group activities with classmates The teacher was the expert and responded definitively to all questions The teacher acted as a facilitator of group discussion None of the above

Agenda Culture Consequences of Culture for HRM Expatriates

Foreign Assignments Would you consider taking a foreign assignment for a 6 months to 1 year duration? A=Yes, B=No Before you took on a foreign assignment, what would you want to know?

Cross-Cultural Preparation Training to prepare employees and their family members for an assignment in a foreign country Three phases: Preparation – language instruction and an orientation to the foreign country’s culture Assignment – combination of formal program and mentoring to understand the foreign country’s culture Returning - providing information about the employee’s community and home country workplace

Emotional Cycle Associated with a Foreign Assignment

Emotional Cycle Associated with a Foreign Assignment Honeymoon High Culture Shock Adjustment Mood Learning Low 0 1 2 3 4 5 6 Months in Foreign Culture

Managing Expatriates In the US, 16-40% of expatriates do not complete their assignment Challenges with managing expatriates include: Selection Preparing Compensating Managing Performance Repatriation

Selecting Expatriate Managers A successful expatriate manager must have the ability to: Maintain a positive self-image Foster relationships with the host-country nationals Perceive and evaluate the host country’s environment accurately

Compensating Expatriates

Repatriation Repatriation Activities that support repatriation: The process of preparing expatriates to return home from a foreign assignment Activities that support repatriation: Communication Validation

Test Your Knowledge John, an expatriate working in Hong Kong is feeling very uncomfortable in his surroundings. He often feels as if he has said the wrong thing. John is most likely in which emotional stage of expatriation: Honeymoon Culture shock Learning Adjustment

Brief Introduction to Hot Seat Case 8 Cultural Differences Michael, Director at Mustang Jeans (US). Norio, Vice President at PopWear (Japan). Norio has been working on a deal with Michael’s predecessor, Roger. Michael has just taken over the position. Norio and Michael have their first meeting at Mustang Jeans’ headquarters.

Guest Speaker: Dana Breitenstein 15 years of experience in inter- cultural training and consulting Director Intercultural Services, Asia Pacific, Cartus Speaks English, Swedish, Japanese and learning Mandarin M.Sc. from Columbia University