Problematic Cultural Differences in the Corporate World

Introduction Every individual and nation has a set of distinctive values Individuals and nations have certain expectations regarding the way people think, behave, and believe

Limited Common Problems Common problems in the workplace which people want to solve are limited Different emphasis on which problems matter depending on the culture –Kluckhohn & Strodtbeck

U.S. Culture (Anglo-American) Stress is on practical considerations Self-interests important Universalism Priority of individual interests Analytical, inductive thinking U.S. versus: –France, Germany, Japan, Singapore

Value Clusters There is a large variation of value clusters between cultures –Brake, Walker, Walker

Different Ways of Thinking Inductive — based on case studies and methodology Deductive — reasoning based on prevailing philosophies Linear — “chunking down” problems Systematic — focus on big picture and inter-relating parts (Hofstede)

Inductive Thinking (US) Influenced by the present Focus on data analysis Focus on individual tasks Focus on the “how,” the “what”

Linear Thinking (US) One step at a time Peter Senge says — complex tasks and subjects become more manageable when they are broken into smaller parts –Disadvantage: we can no longer see the big picture.

Deductive Thinking (European and Latin American) Focus on concepts and the influences of the past which will have an effect on the future Contextual Thinking Focus on the “why”, then on the “how”

Systemic Thinking (Europe,Japan, China, Latin America) Individual parts are analyzed to reveal their connections The whole counts, not the parts seen separately Spider web of connections

Communication Preferences Low Context/US & Various European Countries Little interpersonal communication needed for business transactions Communication is (very) direct Importance attached to what is said, not necessarily to how it is said This approach can cause problems Typical phrases: “let’s get to the point,” “what’s the bottom line?”

Communication Preferences High Context/Latin America, Asia, Saudi Arabia Heavy emphasis on relationships Business is built on personal bonds Trust is essential Conflict and negative aspects of business are handled indirectly Saving face is important

Informal Communications Change is good First name basis On to the new, out with the old Outcome over tradition US and Australia

Formal Communications Social customs and business protocols are observed Rules/traditions count Hierarchical organizations Titles, last names, and formal speech European, Asian, Latin American, and Arab countries

Private Space Office location = indication of status Individual offices Cubicles Independent work US

Public Space Employees sit in one large, open office Group communication More supervision Group work encouraged Less isolation Asia, Latin America, France

Time: Single Focus One thing at a time (linear) Deadlines, schedules important Things begin on time High time consciousness US, German, Swiss cultures Industrialized Asian cultures

Time: Multi-Focus Multi, simultaneous tasking Emphasis on process and group work rather than focusing on work to meet the deadline Punctuality not an issue Time is organic Southern European, Latin American, and Middle Eastern cultures

19 Equal Access to Power “Managing by Moses” doesn’t work anymore Employee “buy-in” a must Work is delegated Group discussions encouraged and important - however, outcome is based on individuals’ achievements

Power Structure: Hierarchical Organizations Traditional hierarchical structures still in place Emphasis on titles and position within the company People know their place Decision - making occurs at higher level

Hierarchical Organizations Managers make decisions Employees expect to be lead Unwritten rules known and acknowledged Conflict avoidance prevalent Latin American, Arab, Asian cultures as well as French, Belgian, Spanish and Portuguese cultures tolerate/ support hierarchical approaches

Pulling it all together It is essential to differentiate between all aspects of culture Understand what’s important before meeting with new cultures Respecting different ideas and approaches