Managing Across Cultures Cultural differences making a difference –6 Basic cultural variations People’s Nature Relationship to nature Relationship to other people Modality of human activity Temporal focus on human activity Conception of space

Managing Across Cultures Cultural differences making a difference –How they view time –The collectivist / individualistic dimension –Power Distance (also shows in language) –Attitude towards affection –Nature of business conversations –Negotiating styles –Protocol for meetings (whether business or personal) –Eating behaviors –Dress / appearance

Hofstede’s Dimensions of Culture Power Distance (Large or Small) –The extent to which less powerful members of institutions accept that power is distributed unequally Large ( Mexico, South Korea, India) –blindly obey order of superiors –hierarchical organizational structure Small (U.S., Denmark, Canada) –decentralized decision making –flat organizational structures

Uncertainty Avoidance (High or Low) –The extent to which people feel threatened by ambiguous situations High ( Germany, Japan, Spain) –high need for security –strong beliefs in experts Low (Denmark, UK) –willing to accept risks –less structuring of activities

 Individualism (vs. Collectivism) –The tendency of people to look after themselves and their immediate family only  strong work ethic  promotions based on merit U.S., Canada, Australia  Collectivism –The tendency of people to belong to groups and to look after each other in exchange for loyalty  weaker work ethic  promotions based on seniority China, South American cultures

 Masculinity (Vs. Femininity) –the dominant values in society are success, money and things  emphasis on earning and recognition  high stress workplace Japan  Femininity –the dominant values in society are caring for others and the quality of life  employment security  employee freedom Scandinavian cultures

Cultural Dimensions by Trompenaars Universalism vs. Particularism  Universalism: the belief that ideas and practices can be applied everywhere without modification – U. S., Germany, and Sweden  Particularism: the belief that circumstances dictate how ideas and practices should be applied. – Spain and Japan

Individualism Vs. Collectivism  Individualism: refers to people regarding themselves as individuals – U.S., UK, and Sweden  Collectivism: refers to people regarding themselves as part of a group – Japan and France

Neutral Vs. Affective  Neutral: emotions are held in check – Japan and the U.S.  Affective: emotions are openly and naturally expressed – Mexico, Netherlands, and Switzerland Specific Vs. Diffuse  Specific: individuals have a large public space and a small private space – UK, U. S., and Switzerland  Diffuse: both public and private space are similar in size – Venezuela, China, and Spain

Achievement Vs. Ascription  Achievement: people are accorded status based on how well they perform their functions – U.S., Switzerland, and UK  Ascription: status is attributed based on who or what a person is – Venezuela and China

Time Past or Present-Oriented Vs. Future-Oriented –Past or present-oriented : emphasize the history and tradition of the culture Venezuela, Indonesia, and Spain –Future-oriented: emphasize the opportunities and limitless scope that any agreement can have U. S., Italy, and Germany

Sequential Vs. Synchronous Time  Sequential: time is prevalent, people tend to do only one activity at a time, keep appointments strictly, and prefer to follow plans – U.S.  Synchronous: time is prevalent, people tend to do more than one activity at a time, appointments are approximate, and schedules are not important – Mexico and France

Variations in Time Orientation

Environment Inner Directed  Believe in controlling outcomes –U.S. Outer Directed  Believe in letting things take their own course –Asian Cultures

Comparing Dimensions

Other Cultural Dimensions Communication (language) context Time –Orientation –Value Gender Roles –Assertiveness / Modesty Protocol (formality / informality) Persuasive Argument –Logic / Emotion / Dogma Basis of Trust –Law / Friendship

Other Cultural Dimensions (From Globe Research Project) Institutional Collectivism In-group Collectivism Gender Egalitarianism Assertiveness Power Distance Performance Orientation Future Orientation Uncertainty Avoidance Humane Orientation

Variations in Human Nature

Variations in Relations to Nature

Variations in Activities

Variations in Relationships

Variations in Spacial Orientation