Cross-cultural issues in Management Dr Joan Harvey

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

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]

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

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?

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

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

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

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

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

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

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’

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

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

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]

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

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

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

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

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

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

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

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