Workshop 1: Cultural Competence Pieter van Nispen Remco van Bebberen Aschaffenburg, April 9 th , 2019
Objectives and Overview Objectives Introduction on the concept and definition of culture Learning the basic knowledge of different theories on cultures Basic understanding in national cultures (countries) and organisational cultures. Overview International context Definitions and concepts of culture Culture and groups: national culture, organisational culture, individual Dealing with cultural differences Culture and leadership
Words Managing and Leading in Different Cultures Managing and Leading across Cultures Leadership and Management across Cultures Competence Intercultural Cross-cultural Transcultural
International Context Can a manager decide (on his / her own) to do business internationally? No, because … the world is organised in ± 200 sovereign states, implying ... that they have to give permission. In addition States work together through representation, treaties, international organisations. International organisations may have authority over business A state is not a country or a nation.
Culture: Definition and Concept Culture is an institution. Institution: a way of thinking acting and feeling … of a group of people ... at a given time and place C values & beliefs thinking & feeling time environment group behaviour On all four levels: search for identity uncertainty avoidance
Mind-map of Culture
MM - Research
MM – Definitions and Concepts
MM – Aspects
MM – People
MM – Impact
MM – Dealing with Differences
Groups; National Level Solomon and Schell Egalitarianism – hierarchy Group focus: individual – group Relationships: transactional – interpersonal Communication styles: direct – indirect Time orientation: low – high Change averse - change tolerant Motivation/Work-Life Balance: balance – status Questionnaire
Countries Argentina France Netherlands Spain Australia Germany New Zealand Sweden Austria Greece Norway Switzerland Belgium Hong Kong Pakistan Taiwan Brazil India Philippines Thailand Brunei Indonesia Poland Turkey Canada Iran Portugal Ukraine Chile Ireland Qatar United Arab China Israel Romania Emirates Czech Republic Italy Russia United Kingdom Denmark Japan Saudi Arabia United States Egypt Malaysia Singapore Vietnam Finland Mexico South Korea
Egalitarian/Hierarchical Hierarchy/egalitarianism is the way individuals view authority and power (deference to people in authority). whether people are entitled to express themselves how empowered people feel to make independent decisions and take the initiative Are people in authority better or have they earned that status by merit, and is it open to other with the same degree of effort? Hierarchy/egalitarianism refers to how people view their relationship to people in power how casually or formally people relate one another whether a culture believes all people are created equal how much social mobility exists who is responsible for decision making the degree of authority and personal initiative people feel they have
Egalitarian/Hierarchical 5-9 10-13 14-17 18-21 22-25 Egalitarianism Hierarchy Austria Brazil China Chile Czech Republic Egypt Germany Greece Hong Kong Argentina Italy Brunei Belgium Mexico India France Philippines Indonesia Ireland Portugal Iran Poland Romania Japan Australia Qatar Singapore Malaysia Canada Finland Russia Spain Pakistan Denmark Norway Switzerland Taiwan Saudi Arabia Israel Sweden Ukraine Thailand South Korea Netherlands United United Turkey United Arab New Zealand States Kingdom Vietnam Emirates
Group Focus Group focus describes whether people identify themselves as part of a group or by their individual responsibility and whether work would be a collective output or a series of individual contributions. Group focus refers to the importance of the group in relation to the individual whether people want to be distinguished from the group or considered part of a particular group the idea that group harmony is necessary to achieve business goals the importance of living and working together in harmony
Group Focus 5-9 10-13 14-17 18-21 22-25 Individual Group Argentina Chile Austria France Brazil Germany China Hong Kong Egypt India Greece Iran Italy Australia Ireland Mexico Belgium Israel Pakistan Czech Portugal Philippines Republic Romania Saudi Arabia Brunei Denmark Russia Singapore Indonesia Finland Spain Taiwan Japan Netherlands Sweden Thailand Malaysia Canada Norway Ukraine Turkey Qatar New Zealand Poland United United Arab South Korea United States Switzerland Kingdom Emirates Vietnam
Relationships The relationships dimension describes the importance a society ascribes to building extensive connections and developing trust and how central relationships are as a prerequisite to working with someone. Relationships refer to the importance of developing a personal relationship before conducting business the implied expectations and obligations of a relationship whether trust is assumed or earned whether rules are interpreted equally or there are special conditions for friends the value of connections
Relationships 5-9 10-13 14-17 18-21 22-25 Transactional Interpersonal Argentina Brazil Brunei Chile Egypt France Greece India Indonesia Italy Australia Japan Czech Austria Malaysia Republic Belgium Mexico Denmark Germany Pakistan Finland Hong Kong Philippines Netherlands Ireland Portugal Norway Israel Qatar China Poland New Zealand Singapore Iran Romania Ukraine Spain Saudi Arabia Russia United Taiwan South Korea Canada Sweden Kingdom Thailand United Arab United States Switzerland Vietnam Turkey Emirates
Communication Styles Communication styles refer to the ways societies use language, both verbal and non-verbal the amount of information people need to receive or share in order to understand a message. Is it brief and task-relevant, or does it include background information as well? the directness or subtleness of the language people use the way people use words or gestures to express feeling or moods the importance of harmony and saving face
Communication Styles 5-9 10-13 14-17 18-21 22-25 Direct Indirect Argentina Brazil China Chile Egypt Czech Greece Republic Hong Kong Finland Iran France Italy Ireland Mexico Poland Qatar Portugal Saudi Arabia Denmark Romania Singapore Brunei Germany Australia Russia South Korea India Israel Austria Spain Taiwan Indonesia Netherlands Belgium Ukraine Thailand Japan Norway Canada United Turkey Malaysia Sweden New Zealand Kingdom United Arab Pakistan Switzerland United States Vietnam Emirates Philippines
Time Orientation Time orientation is the degree to which people believe they can control time and whether schedules or people are more important. It affects time management, long- and short-term planning, schedules, and adherence to agendas and deadlines. Time orientation refers to the amount of control people feel they have over time. Do you control time, or is it out of your control? the importance society places on relationships versus keeping schedules attitude toward timekeeping and punctuality comfort level with short-range versus longer-term planning the appropriateness of assigning set times for social functions or business meeting to start and finish
Time Orientation 5-9 10-13 14-17 18-21 22-25 Low High Argentina Brazil China Brunei Czech Chile Republic Australia Egypt France Austria Greece Ireland Belgium India Italy Canada Indonesia New Zealand Finland Iran Norway Hong Kong Malaysia Poland Israel Mexico Romania Japan Saudi Arabia Pakistan Russia Netherlands Spain Philippines Singapore South Korea Denmark Thailand Portugal Taiwan Sweden Germany United Arab Qatar Turkey United Switzerland Emirates Vietnam Ukraine Kingdom United States
Change Tolerance Change tolerance refers to the perception of how much control we believe we have our lives and destinies (is our life determined by us or by external forces?) and our comfort level with change, innovation, and risk taking. Do we see change as bringing opportunities or as threats to be avoided? Change tolerance refers to openness to change and innovation willingness to take risks if people feel they control their destiny or if their environment controls them preference for rules and structure how the organization encourages and rewards initiative and deals with failure
Change Tolerance 5-9 10-13 14-17 18-21 22-25 Change Averse Change Tolerant Argentina Austria Belgium Brazil China Denmark Finland France Germany Greece India Ireland Italy Malaysia Brunei Pakistan Chile Poland Czech Portugal Republic Qatar Egypt Romania Hong Kong Indonesia South Korea Israel Mexico Spain Japan Philippines Sweden Netherlands Russia Switzerland New Zealand Thailand Taiwan Norway United Arab Turkey Singapore Saudi Arabia Emirates Ukraine United Australia Iran Vietnam United States Kingdom Canada
Motivation/Work-Life Balance Motivation/work-life balance describes the emphasis that people in a society place on achievement and status by hard work, versus the focus on personal time and activities. Motivation/work-life balance refers to how people identify the ways they gain status, whether through achievement or personal life; how people define their status in society, whether from personal life or work achievements how one’s work influences one’s self-image and self-perception motivation for success: why people work and what I means how much work-life balance is values which is more motivating: time off or a promotion\the presence or absence of laws and policies promoting family benefits what constitutes status
Motivation/Work-Life Balance 5-9 10-13 14-17 18-21 22-25 Balance Status Brazil Brunei Chile Czech Rep Egypt Denmark France Finland Germany Ireland Greece Israel India Italy Indonesia Netherlands Iran Pakistan Malaysia Philippines Mexico Poland New Zealand Romania Portugal Russia Australia Qatar Sweden Canada Norway Spain Ukraine Hong Kong Saudi Arabia Switzerland United Singapore China United Arab Thailand Kingdom South Korea Japan Emirates Turkey Vietnam Taiwan United States
Groups; Organisations Definition: the way of thinking, acting and feeling of the people working for that organisation Influence from national cultures, suppliers, customers and more Problems in international context; e.g. daughter company Hard to measure USA versus Europe – values versus practices European research: Hofstede, Dreimüller
Dreimüller ; 4ling® internal primary external internal proces external control proces change control support change means task oriented make society task culture aim culture team culture process culture
Task Culture core: activities approach: the method, the objective becomes clear while doing the job systems: adapting rules and procedures allows making mistakes staff: curious, innovative organisation: initiative, freedom, egalitarian, informal communication: open success: new products management style: innovator, mediator, taking risk key: creativity, improvisation, future directed examples: R&D departments, advertising agencies, investment companies danger: pursuing a hobby
Aim Culture core: results approach: use people effectively systems: rules and procedures depending on objective failures do not exist staff: obedient, carry out instructions organisation: logical whole on basis of power communication: one-way traffic success: market share management style: producer and manager key: position, winning, effective examples: police stations, marketing departments, operation theatres danger: compartmentalization
Team Culture core: adaptation approach: work tuned to employee systems: broad interpretation of rules and procedures mistakes: improved, not punished staff: not controlled organisation: security and consensus communication: negotiations success: care for people management style: mentor and stimulator key: teamwork, trust, loyality , preventing conflicts, the human being examples: retail trade, group practices danger: anarchy
Process Culture core: systems, rules and procedures approach: formalised realisation of objectives systems: optimizing rules and procedures preventing structural mistakes staff: controlled organisation: impersonal, no individual freedom, controls, provides security communication: set down responsibilities, measuring and documentation success: routine management style: controller and coordinator key: process, ratio, plans examples: insurance companies, government danger: bureaucracy
Dreimüller ; Example
Hofstede’s Model; Dimension 1 and 2 Effectiveness Means oriented ways of doing things how Goal oriented realising goals what Customer oriented Internal focus honesty knowing what is best for the customer External focus do what the client wants results pragmatic
Dimension 3 and 4 Control Loose working discipline loose structure low predictability limited control and discipline lots of improvisation Tight working discipline the opposite Social control Local short term internally oriented strong social control Professional culture the opposite
Dimension 5 and 6 Attitude towards outsiders Open system outsiders welcome everybody fits in Closed system the opposite Management philosophy Focus on people taking the personal problems of staff into account Focus on work putting much pressure on people to deliver their work in time
Dimension 7 and 8 Leadership Autocratic Paternalistic Consultative Democratic Identification with the organisation Degree of feeling fitting in in the organisation
colour Groups; Individual Culture Hoffman sports profession sex religion family parenthood sexual preference education political preference socio-economic status age physical mental vitality ethnicity national organisation team individual
Dealing with Cultural Differences Cultural Competence Skills Attitudes Knowledge
Golden Rules Respect, politeness Mentality, background, development Give time, opening Question yourself, never be satisfied about yourself Transfer of information: form and content, interactive, variation Language! Jokes: yes and no Know your own culture Sensitivity for status Collectivism versus own responsibility Obedience versus initiative … and ultimately your own list!
Bridging Differences
Culture and Leadership GLOBE: Global Leadership and Organizational Behavior Effectiveness; builds (originally) on Hofstede; www.globeproject.com Studt 2004: country visualisations CEO study 2014; over 1,000 firms in 24 countries How does national culture influence the kinds of leadership behaviors expected in a society? What CEO behaviors generally lead to success? What are some distinctions between the high-performing CEOs (i.e., superior), and underperforming CEOs (i.e., inferior)? How important is it that CEO leadership behaviors match the leadership expectations within a society?
Finding National Culture NB no direct link between national culture and CEO behavior
Finding Behaviour and Success Six global leadership behaviors Charismatic leadership behavior most impactful leadership behavior (both TMT Dedication and Firm Performance); all six of the primary dimensions of Charismatic leadership are important CEO Team-Oriented behavior Humane-Oriented leadership Participative leadership is moderately related to TMT Dedication but not Firm Performance Autonomous and Self-Protective leadership are generally ineffective. Administrative competence also proved to be quite significant in impacting both TMT Dedication and Firm Performance
Finding CEO Performance Part of chart; dark blue: superior CEOs, light blue inferior
Finding Leadership and Society The “fit” (or match) between the CEOs behavior and the leadership expectations within a society predicts the level of TMT Dedication and Firm Competitive Performance. Better fit with expectations gives the CEO better results in terms of the TMT Dedication and Firm Performance. In addition, GLOBE findings speak to leadership effectiveness in terms of leaders matching, failing to match, or exceeding societal expectations. Superior CEOs exceed their societies’ expectations … also exceed their societies’ expectations regarding administrative competence CEOs who lead extremely dedicated TMTs and extremely competitive firms are substantially more visionary, performance oriented and administratively competent than expected by their societies.
MM - Research
MM - Research Culture affects everyone (part of culture) Stereotypes cannot be avoided Stress commonalities for staff and stakeholders but spot the differences that may benefit the performance
MM – Definitions and Concepts
MM – Definitions and Concepts An understanding of culture one definition one concept Awareness of basic perceptions, stressing communicative moral universalism and avoiding monism and relativism Need for cultural competence for everyone (in different degrees)
MM – Aspects
MM – Aspects Values versus practices (in organisational culture) Working with or against nature (e.g. pollution, climate change, energy) Focus on task or person (national and organisational culture) Degree of showing emotions – business like versus human scale Degree of following rules and taking circumstances into consideration Stressing appropriate symbols and heroes (In)formal power, soft controls, positive management Functional versus social hierarchy (positions, job titles); egalitarianism Work-life balance: relates to involvement with company Change tolerance (in itself and over time) Gender (role patterns): playing up and suppression
MM – People
MM – Dealing with Differences Body language: kinesics (greetings, gestures, facial expressions), touching, clothing and physical appearance Tone of voice; pitch! Direct and indirect communication High and low context Attitudes Adaptation
MM – People Organisational culture Teams Individual and group (the relation as such) Identity
MM – Impact
MM – Impact Functioning in multicultural society Globalisation and its impact Transformation in Central and Eastern Europe Effects of organisation of society Time (from appointments to long-term vision) Media r elations Accommodation of religion; e.g. prayer times, ceremonies, key days Habits and traditions Geographical background