1. Cross Cultural Differences and their Implications for Managing International Projects
F.T. Anbari, E.V. Khilkhanova, M.V. Romanova, & S.A. Umpleby
The George Washington University

2. Widely accepted studies
Geert Hofstede’s study of IBM employees in many countries
Fons Trompenaars more recent study of cultural differences
Z. Aycan, et al.’s socio-cultural dimensions

3. Groups of distinctions
Relations between people
Motivational orientation
Attitudes toward time
Socio-cultural dimensions

4. Relations between people
Universalism vs. particularism -- a rule-oriented society (a well-developed legal system) vs. a person-oriented society
Individualism vs. communitarianism – the individual is more important than the group or the group is more important than the individual

5. Motivational orientation
Sharply defined roles for men and women vs. similar roles
Uncertainty avoidance – seeking to avoid uncertainty vs. tolerating high uncertainty
Power distance – people feel comfortable with large differences in power among people or they prefer equality

6. Attitudes toward time
Long-term vs. short term orientation – patient about results or not
Sequential vs. synchronic – prefer to do tasks one at a time or comfortable doing several things at once
Inner vs. outer time – preference for working on one’s own schedule or comfortable working on group’s schedule

7. Socio-cultural dimensions
Paternalism – superiors provide guidance, protection, and nurturing while subordinates are loyal and deferential
Fatalism – the belief that it is not possible to control the outcomes of one’s actions, so hard work and long-term plans are not worthwhile

8. Western vs. Non-Western Values
Individualism
Achievement
Equality
Winning
Internal self-control
Pride
Respect for results
Respect competence
Time is money
Collectivism/ group
Modesty
Hierarchy
Harmony
External control
Saving face
Respect for status
Respect elders
Time is life

9. Western vs. Non-Western Values
Action/ doing
Systematic
Tasks
Informal
Assertiveness
Future/ change
Control
Specific/ linear
Verbal
Being/ acceptance
Humanistic
Relationship/ loyalty
Formal
Indirectness
Past/ tradition
Fate
Holistic
Non-verbal

10. Y2K, a successful project
Each nation and organization set up its own year 2000 computer project
Information was widely shared among technical specialists via the internet
People recognized all would benefit by sharing information
Top management supported the work
Needed funds were made available

11. Iridium, a failed project
A satellite telecommunication network costing $5 billion and involving 6000 engineers and managers in 26 countries
Sold for $25 million in 2000
The international structure was almost impossible to manage – many languages, cross-cultural differences, different styles of management and communication

12. Conclusions There is an increasing number of international projects
Multi-cultural teams are needed
Cultural differences need to be seen as an asset, not a liability
Managers need to be culturally aware and flexible in their leadership styles