Chapter 2 Understanding Cross-Cultural Management Dimensions Managing Organizations Organizations in a Global Economy:: An Intercultural Perspective Economy First Edition John Saee Copyright b by y South-Western, a division of Thomson Learning. All rights reserved.
Glo b bal al Strategy and Culture y
To succeed, corporations must develop glo b bal al strategies. Recent decades saw the growing importance of glo b bal al strategies, at least among leading firms and management management scholars; however, the new millenium made it imperative (Adler 1997).
Cross±Cultural Management The growing importance of world business b usiness has created a demand for managers sophisticated in glo b bal al management managem ent skills and working with people from other countries.
y
Cross±cultural management management descri bes bes organizational b organizational behavior ehavior within countries and cultures; compares organizational behavior b ehavior across countries and cultures; and seeks to understand how to improve the interaction of co±workers, managers, executives, clients, suppliers, and alliance partners from around the world.
Parochialism
Glo b bal al versus Domestic Organizations y
Two fundamental differences b differences between etween glo b bal al and domestic organization are geographic dispersion and multiculturalism.
Multiculturalism means that people from many cultures interact regularly.
What Is Culture?
To understand the differences b differences between etween domestic and glo b bal al management, management, it is necessary to understand the primary ways in which cultures around the world vary.
Culture is: Something that is shared b shared by y all or almost all mem b bers ers of some some social group. y Something that the older mem bers b ers of the group try to pass on to the younger mem b bers. ers. y Something that shapes b shapes behavior ehavior or structures one¶s perceptions of the world. y
Cultural Orientations The cultural orientation of the society reflects the complex interaction of values, attitudes, and behaviors b ehaviors displayed b displayed by y its mem b bers. ers. y Individuals express culture and its normative qualities through the values that they hold a b bout out life and the world around them (Adler 1997) y
How Do Cultures Vary As shown in Ta b ble le 1, six b six basic asic dimensions descri be be the cultural orientation of societies: people¶s qualities as individuals, their relationship to nature and the world, their relationship to other people, their primary type of activity, and their orientation in space and time.
Table 1. Values Perception of Individual ood Worl Wo rld d Domi Do minan nantt uman Individual Relations Activity Doing Time Future Spa pace ce riva ri vate te
Orientation Dimensions Dimensions ood and Evil armo ar mony ny Laterally Extended roups Controlling resent Mixe Mi xed d
Evil Su ju jugat gatio ion n ierarchical roups Being ast u li lic c
The six dimensions answer the questions y Who am I? y How do I see the world? y How do I relate to other people? y What do I do? y How do I use space and time?
How People See Themselves
People¶s Relationship to the World y
What is a person¶s relationship to the world? Are people dominant over their environment, environmen t, in harmony with it, it , or su b ugated ugated b by y it?
Personal Relationships: Individualism or Collectivism
Activity: Doing or Being
North
Americans generally see themselves as dominant over nature. y Other societies, such as Chinese and Navaho, attempt to live in harmony with nature. They see no real separation b separation between etween people and their natural environment. y
Work Behavior Varies Across Cultures Worldwide Differences in Managerial Style Andre Laurent (I NSEAD, France) studied the philosophies and b and behavior ehavior of managers in nine Western European countries, the U.S., and three Asian countries (Indonesia, Japan, and the People¶s Repu b blic lic of China). He found distinct patterns for managers managers in each of the countries.
Task and Relationship
³The main reasons for a hierarchical structure is so that every b body ody knows who has authority over whom.´
³In order to have efficient work relationships, it is often necessary to bypass b ypass the hierarchical line.´
Managers: Experts or P or Pro b blem lem Solvers? y
Laurent found little agreement across national b national borders orders on the nature of the managerial manage rial role.
Another related study b study by y England (1986) found that employees¶ work goals/motivation varied across cultures.
Table 3: Comparative Work Goals: German, Japanese, and American Respondents¶ Rankings Work goals
G e rm a n y
Japan
USA
Interesting work
3
2
1
Good pay Good interperson interpersonal al
1
5
2
relations Good jo b security
4 2
6 4
7 3
and your job A lot of autonomy
5 8
1 3
4 8
Opportunity to learn A lot variety
9 6
7 9
5 6
Convenient work hours
6
8
9
Good physical working conditions
11
10
11
Promotion
10
11
10
A good match between you
Source: England (1986, P. 181)
In another international study of management±performance managem ent±performance appraisals in the U.S.A., Saudi Ara b bia, ia, and Japan conducted b conducted by y Harris and Moran (1991), it was found that performance appraisal differed significantly across cultures.
A seminal research b research by y Hofstede (1980) went further in showing how the underlying values of the cultures across the world permeate through to affect relationships, work, and social values.
Hofstede (1980) undertook a comprehensive study on worldwide sociocultural factors influencing management. Hofstede¶s research compared work±related attitudes across a range of cultures. From his survey of 116,000 employees in 40 countries, Hofstede isolated 4 major dimensions which were congruent with different cultural values of specific countries. These socio±cultural factors were:
1.Co 1. Coll llec ecti tivi vissm vs vs.. In Indi divi vidu dual alis ism m 2. Small vs. Large Pow ower er Di Dist stan ance ce 3. Weak vs. Str tro ong Uncertainty Avoid idaance 4.Femininity vs. Masculinity
Fifth
Cultural Dimension Hofstede, in colla b boration oration with Bond (1984), identified an additional cultural dimension b dimension by y which nations can b can bee classified: Confucian Dynamism Dy namism.. Confucian Dynamism is also referred to as Long Term Orientation vs. Short Term Orientation.
Confucianism is not a religion, b religion, but ut a system of practical ethics prevalent in China. The five b five basic asic relationships are: Ruler ± subject
y
ather ± son F ather
y
y
± younger brother Older brother
± wife usband H usband
y
y
± younger friend . Older friend
The junior owes the senior respect, and the senior owes the junior protection and consideration. The protot ype for all social institutions is the famil y. A person is mainly a mem b ber er of a family, as opposed to b to being eing just an individual.
H armon armon y in the family must b must bee preserved, and harmony is the maintenance of one¶s face one¶s face,, that is, one¶s dignity, self respect, and prestige. Treating others as one would like to b to bee treated oneself is virtuous b virtuous behavior. ehavior.
Skills for Effective CrossCultural Management
Respect.
Tolerating am b biguity. iguity.
Skills for Effective CrossCultural Management lattin ing g Rela
to people.
Skills for Effective CrossCultural Management Bein ing g Be
nonju no njudg dgm men enta tal. l.
Skills for Effective CrossCultural Management Personalizing
one¶s o b bservations. servations.
Skills for Effective CrossCultural Management
Empathy²the a b bility ility to ³put yourself in another¶s shoes.´
Skills for Effective CrossCultural Management Persistence.
