Cross-cultural issues in Management Dr Joan Harvey and Dr George Erdos

Cross-cultural issues in Management

Dr Joan Harvey

and Dr George Erdos

Geert Hofstede

• Dutch social anthropologist

• Obtained attitude data from IBM worldwide in late 1970s

• Factor analysed and looked for factors which differentiated nationalities

• Data on 50 countries, but only sufficient N for 40 in first book

Geert Hofstede• Originally four main factors

– Masculinity femininity• Ambition and desire to achieve versus social concern

and interpersonal relationships

– Power distance• Amount of power that can be wielded

– Uncertainty avoidance• inflexibility

– Individualism- collectivism• Help and commitment versus high personal achievement

• and later added [in 1990s]– LT-ST orientation [Confucian dynamism]

Country PD UAI MF IC LTO

Ger 35 65 66 67 31

China 80 30 66 20 118

USA 40 46 62 91 29

Japan 54 92 95 46 80

UK 35 35 66 89 25

Finl 33 59 26 63 41

Austria 11 70 79 55 31

India 77 40 56 48 61

Hung 46 82 88 80 50

Denm 18 23 16 74 46

Czech 57 74 57 58 13

Slov 104 51 110 52 38

Poland 50 72 60 55 31

Geert Hofstede

• Issues:– Study was based in 1970s and many

countries have changed a lot since then- has this affected their orientation?

• Eastern European changes• Some developing countries are now developed• Others have changed politically- e.g. South

Africa

Geert Hofstede

• Issues:– All countries will have changed anyway in

nearly 30 years– Changes in technology and global

communication– Migration of peoples– Are cross-cultural differences still as

pronounced?

Geert Hofstede

• Issues:– This study put cross-cultural differences into the

mainstream rather than “error variance” in other studies

– Encouraged other theorists, e.g. Trompenaars– Recent developments with studies all over the

world have increased considerably the number of countries that have been mapped

Examples of other theories: [a] Trompenaars 7 factors:

• Universalism versus particularism– Work relationships mixed with personal ones

• Individualism versus collectivism• Affective versus neutral culture• Specific versus diffuse relationships

– Distinct relationships versus diffuse ones

• Achieving versus ascribing status– Earned through achievement or recognised e.g. seniority/age

• Perception of time– Sequential [monochronic] or parallel [polychronic]

• Relating to nature

Example [b] GLOBAL project • Assertiveness

• Future orientation

• Gender egalitarianism

• Humane orientation

• Institutional collectivism

• In-group collectivism

• Performance orientation

• Power distance

• Uncertainty avoidance

Is the answer Hofstede plus these two?• Time perception

– Polychronic or cyclical [e.g. southern Europe, China, Japan]

– Monochronic [e.g. northern Europe, US]

• Context– High means that perception of what is said

is taken in context, including NVCs– Low means words are interpreted literally

So how differently do we perceive time in terms of working hours?Who has the ‘long hours’ culture of ‘presenteeism’?

Other dimensions from indigenous social psychology• China

– Confucian values• Filial piety• Industriousness• Giving and protecting face

– Guanxi• Social networking crucial to business relationships

– Ren ching• Respectful exchange of gifts, favours and obligations

Other dimensions• Japan

– Amae and respect• Reliance and dependence upon indulgent love of an

older person

– Kanban• Concept of whole transcending sum of parts

– Ringi• Upward communications and decision making

– Sacred treasures- • life time employment, seniority, enterprise

unions/families

– Harmony and cooperation [‘wa’]– Gakureki Shakai

• Social system attaching value to education

Other dimensions

• Africa– Cognitive tolerance– Not on seat– Africa time– Indaba and Ubuntu [sub-Saharan Africa]– Tribal loyalty– Power and respect based on experience– Managers ‘right to manage’

Other dimensions

• Several cultures resent ‘intrusiveness’ of western values, western research methods, e.g.– Philippines– Sub-Saharan Africa– China– India

Other dimensions

• Latin American countries: emphasis on– Respect– Family– Hierarchy– Honour– Affiliative obedience– Cultural rigidity– Machismo– Sympatia

Other dimensions eg India

Complicated as a cultural mix in one country

Detachment as a coping mechanism, therefore working hard is unrelated to success or failure

Ingratiation techniques to advance personal goals within hierarchical collective context

• [similar to parts of western Africa]

Key text

Hofstede G and Hofstede G (2005) Culture and Organizations: Software of the mind. 2nd edn London: McGraw Hill

This book has been published in Czech, translated by Dr Ludek Kolman