Cross-culture issues in Global context.ppt

Clusters- Anglo-American Clusters (USA, Canada, UK, and Australia) – most similar

Germany and Nordic Nations (cultural allies)

France (cultural island)

Brazil, Mexico, Argentina (cultural allies)

Korea (cultural island)

Japan and China (cultural islands, but some similarities)

South Asia (most similar)

Anglo American- Openness and equality

Direct communication

High emphasis on flexible work practices

Low emphasis on need for centralization and on vertical hierarchy

Promote diversity for gaining competitive advantage

Japan- Low emphasis on empowerment, diversity, and equality

Reflective of homogeneous ethnic culture

High emphasis on centralization and hierarchy

Respect for authority/ age

Emphasis on learning on the job

Emphasis on consensus and consultation

Low female participation

Korea- High Emphasis on Protectionism

Strong sense of corporate paternalism

Prefers centralization and hierarchies

Emphasized respect for authority

Low tolerance for diversity

Monochronic

Strict Punctuality
Obsessed with deadlines
Focus on preciseness
Strict scheduling
Discussion on one issue (one task) at a time
Time is liner

Polychronic

Not strict punctuality
Scheduling less important
Overlapping issues in business meetings
More time for interpersonal relations.
Prefer Multi-tasking

Monochronic Business Cultures: Nordic and Germanic Europe; North America; Japan.

Moderately Monochronic: Australia / New Zealand; Russia and most of East-Central Europe; Southern Europe; Singapore, Hong Kong; Taiwan; China; South Korea, S. Africa.

Polychronic Business Cultures: The Arab World; most of Africa; Latin America; South and South East Asia.

1. Managing Cross-cultural Workforce
In a Global Business Context
IPMX 16
Prof. Ajay Singh

2. Cultural Clusters

3. Clusters
•Anglo-American Clusters (USA, Canada, UK, and
Australia) –most similar
•Germany and Nordic Nations (cultural allies)
•France (cultural island)
•Brazil, Mexico, Argentina (cultural allies)
•Korea (cultural island)
•Japan and China (cultural islands, but some
similarities)
•South Asia (most similar)

4. Anglo-American Cluster
•Openness and equality
•Direct communication
•High emphasis on flexible work practices
•Low emphasis on need for centralization and on vertical
hierarchy
•Promote diversity for gaining competitive advantage

5. France: Cultural Island
•Low emphasis on diversity and equality
•Low tolerance for uncertainty and ambiguity
•Fear face to face conflict
•Tolerant of inequality in power
•Look for protection from above
•Senior managers rule autocratically
•Emphasis on Quality of Life

6. Latin American Cluster
•High decentralization
•Promotion of empowerment culture
•High desire to share benefits with employees
•High emphasis on quality of life in organizations

7. Japan: Cultural Island
•Low emphasis on empowerment, diversity, and equality
•Reflective of homogeneous ethnic culture
•High emphasis on centralization and hierarchy
•Respect for authority/ age
•Emphasis on learning on the job
•Emphasis on consensus and consultation
•Low female participation

8. Korea: Cultural Island
•High Emphasis on Protectionism
•Strong sense of corporate paternalism
•Prefers centralization and hierarchies
•Emphasized respect for authority
•Low tolerance for diversity

9. Defining Culture
Culture is…..
•A set of beliefs, values, norms
•Collective
•Learned
•Stable but open to evolution
•depicted in individual, group, and dominant
national behaviours.

10. Cultural Dimensions
Three major studies to examine inter-
cultural dimensions are by:
•Hall
•Hofstede
•Trompenaars

11. Cultural Dimensions
Three major studies to examine inter-
cultural dimensions are by:
•Hall
•Hofstede
•Trompenaars

12. Hall
•Time
•Space
•Communication Context

13. Hall on Time Parameter
Monochronic
Culture
Polychronic
Culture

14. Time
Monochronic
•Strict Punctuality
•Obsessed with deadlines
•Focus on preciseness
•Strict scheduling
•Discussion on one issue
(one task) at a time
•Time is liner
Polychronic
•Not strict punctuality
•Scheduling less important
•Overlapping issues in
business meetings
•More time for
interpersonal relations.
•Prefer Multi-tasking

15. Business Cultures
•Monochronic Business Cultures:Nordic
and Germanic Europe; North America;Japan.
•Moderately Monochronic: Australia / New
Zealand;Russia and most of East-Central
Europe; Southern Europe;Singapore, Hong
Kong; Taiwan; China; South Korea, S. Africa.
•Polychronic Business Cultures: The Arab
World;most of Africa;Latin America;
South and South East Asia.

16. Space (Distance Behaviour)
Inter-personal Distance in global regions:
Close: 20 to 35 cms. (8 to 14 inches)
The Arab World; The Mediterranean Region;
Latin Europe; Latin America
Distant: 40 to 60 cms. (16 to 24 inches)
Northern, Central and Eastern Europeans;
North America; Large part of Asia.

17. Hall on Context and
Communication
High Context
Communication
Low Context
Communication

18. Communication Context
Low Context:
•Explicit message
•Direct
High Context:
•Most message in code
•Indirect

19. Context and Communication
http://www.businessinsider.com/the-culture-map-8-scales-for-work-2015-1

20. Hofstede’s Model
Examined International difference in
work-values under four dimensions:
•The Power Distance Dimension
•Uncertainty Avoidance Dimension
•Individual Vs. Collectivism
•Masculinity Vs. Feminity

21. The Power Distance Dimension
•Shows the extent to which members of a society
accepts that power distance in institutions and
organisations.
•Shows desirability and not of social inequality.
•Is reflected in degree of equality of roles;
accessibility of superiors, and structure
(centralized or decentralized) of the organization.

22. Power Distance Index
•RankCountry Rank Country Rank Country
•1 Malaysia 18/19 Turkey 37 Jamaica
•2/3Guatemala 20 Belgium 38 USA
•2/3Panama 21/23 East Africa 39 Canada
•4 Philippines 21/23 Peru 40 Netherlands
•5/6Mexico 21/23 Thailand 41 Australia
•5/6Venezuela 24/25 Chile 42/44 Costa Rica
•7 Arab countries 24/25 Portugal 42/44 Germany
•8/9Equador 26 Uruguay 42/44 Great Britain
•8/9Indonesia 27/28 Greece 45 Switzerland
•10/11India 27/28 South Korea 46 Finland
•10/11West Africa 29/30 Iran 47/48 Norway
•12 Yugoslavia 29/30 Taiwan 47/48 Sweden
•13 Singapore 31 Spain 49 Ireland
•14 Brazil 32 Pakistan 50 New Zealand
•15/16France 33 Japan 51 Denmark
•15/16Hong Kong 34 Italy 52 Israel
•17 Colombia 35/36 Argentina 53 Austria
•18/19Salvador 35/36 South Africa

23. Uncertainty Avoidance Dimension
•Shows the degree to which individuals feel
uncomfortable with uncertainty and ambiguity
about the future and in the work relationships.
•Reflected in feeling of continuous threat, which is
reflected in inner need to work hard.
•Have difficulty in adjustment to deviant behaviour
•Emphasis on written rules and regulations.

24. Uncertainty Avoidance Index
•RankCountry Rank Country Rank Country
•1 Greece 19 Israel 37 Australia
•2 Portugal 20 Colombia 38 Norway
•3 Guatemala 21/22 Venezuela 39/40 South Africa
•4 Uruguay 21/22 Brazil 39/40 New Zealand
•5/6 Belgium 23 Italy 41/42 Indonesia
•5/6 Salvador 24/25 Pakistan 41/42 Canada
•7 Japan 24/25 Austria 43 USA
•8 Yugoslavia 26 Taiwan 44 Philippines
•9 Peru 27 Arab countries 45 India
•10/15 France 28 Equador 46 Malaysia
•10/15 Chile 29 Germany 47/48 Great Britain
•10/15 Spain 30 Thailand 47/48 Ireland (Republic of)
•10/15 Costs Rica 31/32 Iran 49/50 Hong Kong
•10/15 Panama 31/32 Finland 49/50 Sweden
•10/15 Argentina 33 Switzerland 51 Denmark
•16/17 Turkey 34 West Africa 52 Jamaica
•16/17 South Korea 35 Netherlands 53 Singapore
•18 Mexico 36 East Africa

25. Individual vs. Collectivism
•This dimension describes the relationship that
individuals have with others.
•In individual society, person is expected to take
care of him/herself and immediate family.
•Identity is based on individual and individual
initiative and achievement is appreciated.
•In collective society identity is based on social
system & belongingness to organization is moral.

26. Individualism Index
•RankCounty Rank County Rank Country
•1 USA 19 Israel 37 Hong Kong
•2 Australia 20 Spain 38 Chile
•3 Great Britain 21 India 39/41 West Africa
•4/5Canada 22/23 Japan 39/41 Singapore
•4/5Netherlands 22/23 Argentina 39/41 Thailand
•6 New Zealand 24 Iran 42 Salvador
•7 Italy 25 Jamaica 43 South Korea
•8 Belgium 26/27 Brazil 44 Taiwan
•9 Denmark 26/27 Arab countries 45 Peru
•10/11Sweden 28 Turkey 46 Costa Rica
•10/11France 29 Uruguay 47/48 Pakistan
•12 Ireland (Republic of)30 Greece 47/48 Indonesia
•13 Norway 31 Philippines 49 Colombia
•14 Switzerland 32 Mexico 50 Venezuela
•15 Germany 33/35 East Africa 51 Panama
•16 South Africa 33/35 Yugoslavia 52 Equador
•17 Finland 33/35 Portugal 53 Guatemala
•18 Austria 36 Malaysia

27. Masculinity vs. Feminity
•It shows the degree of preference for achievement,
heroism, assertiveness and material success. These
values are rated high in masculine and low in
feminine cultures.
•In feminine cultures relationship with people and
quality of life are given higher value, and the
social value is welfare.
•This also reflects roles and values of men and
women in society. In masculine cultures sex roles
are more sharply differentiated than in feminine
cultures.

28. Masculinity Index
•RankCountry Rank Country Rank Country
•1 Japan 18/19 Hong Kong 37/38 Spain
•2 Austria 20/21 Argentina 37/38 Peru
•3 Venezuela 20/21 India 39 East Africa
•4/5Italy 22 Belgium 40 Salvador
•4/5Switzerland 23 Arab countries 41 South Korea
•6 Mexico 24 Canada 42 Uruguay
•7/8Ireland 25/26 Malaysia 43 Guatemala
•7/8Jamaica 25/26 Pakistan 44 Thailand
•9/10Great Britain 27 Brazil 45 Portugal
•9/10Germany 28 Singapore 46 Chile
•11/12Philippines 29 Israel 47 Finland
•11/12Colombia 30/31 Indonesia 48/49 Yugoslavia
•13/14South Africa 30/31 West Africa 48/49 Costa Rica
•13/14Equador 32/33 Turkey 50 Denmark
•15 USA 32/33 Taiwan 51 Netherlands
•16 Australia 34 Panama 52 Norway
•17 New Zealand 35/36 Iran 53 Sweden
•18/19Greece 35/36 France

29. Trompenaars
•Universalism Vs. Particularism
Respect of universal laws vs. loyalty towards people
•Specific vs. Diffuse relationships
Superficial engagement vs. total engagement

30. Universalism Vs. Particularism
You are sitting in your friend´s car, he is
driving 80 km/h in an area where he should
be respecting the 60km/h speed limitation.
Your friend hits a pedestrian.
There is no other witness. His lawyer asks
you to testify that your friend was driving at
the speed of 80 km/h. He assures that there
won´t be any serious consequence for you.

31. Universalism Index
•Countries high in Universalism (Respect of Universal Law):
USA, Denmark, Austria, Switzerland, Netherlands, UK,
Czech, Belgium
•Countries moderate in Universalism:
Italy, Brazil, France, Singapore, Japan, Spain, Maxico,
Thailand.
•Countries high in Particularism(Loyalty towards people):
Hong Kong, China, Indonesia, East Europe, Venezuela.

32. Specific Vs. Defused
Your boss asks you to help him in arrangement of
wedding anniversary party which he is organizing this
weekend. The idea is not very appealing to you.
You decline the invitation: your boss has nothing to do
with your week-end activities. Your private and
professional lives are two different things.
You go and help your boss in the party because your
are totally committed to him/her, on a professional and
personal basis.

33. Specific vs Diffuse Relationships
Countries with Specific relationships (Engagement Superficial):
Austria, UK, USA, France, Netherlands, Belgium.
Countries that are moderate in this dimension:
Brazil,Czech,Italy, Germany, Argentina, Japan, Mexico,
Indonesia, East Europe, Thailand.
Countries high in Defused relationships(Engagement total):
Hong Kong, Singapore, Switzerland, Spain, China,
Venezuela.

34. The GLOBE Study
(Global Leadership and organizational Behaviour Effectiveness)
Nine cultural dimensions that distinguish one society from other
1.Assertiveness: Degree to which individuals in the societies are
expected to be tough, confrontational and competitive.
2.Future orientation: The level of importance a society attaches to the
future oriented behaviour e.g. proper planning for future activities, training &
Development, Investing in R&D etc.
3.Performance Orientation: The importance of performance and
excellence in society and also refers to whether people are encouraged to
strive for continued performance.(E.g. Japanese people believe in Kaizen,
Constant improvement, Zero defects etc.)
4.Humane Orientation:The degree to which individuals in
organizations or societies encourage people for being caring, generous and
kind to others.

35. The GLOBE Study (continues)
5. Gender Differentiation: The extent to which a society resorts to role
differentiation or gender discrimination. e.g. Arab countries’ societies.
6. Institutional Collectivism:The degree to which people are loyal
and show cohesiveness in their organizations
7. In Group Collectivism: The degree to which people are loyal and
show cohesiveness in their work groups and families, e.g. Japanese societies are
more cohesiveness than American.
8. Power Distance: The degree to which organizational members or
citizens of a society expect and agree that power should be unequally distributed,
eg. French employees are relatively high in power distance, and they prefer a
structure which is more centralized.
9. Uncertainty Avoidance: The degree to which individuals and
organisations are uncomfortable in uncertain situations and therefore like to avoid
them. They usually believe in planning and structured (monochronic), eg. Japan

36. Managerial Implications
•Motivation
•Interpersonal relations
•Communication
•HR processes like Reward and Appraisal
•Negotiations (Verbal and non verbal)
• .

37. Discussion/ Experience Sharing
Questions??