Cross-cultural issues in Management

Dr Joan Harvey

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]

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

Two more factors that are interrelated.• 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

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 [Malawi]– Ubuntu [Malawi]– 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

Other dimensions

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

Other dimensions

• India– 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]

Example area1 : Expatriate workers

• Qualities for success hard to define, e.g. Brislin [1981]– Cognitive ability– Task orientation– Tolerant personality– Strength of personality, include self esteem– Relations with others, include empathy– Potential to benefit from cross-cultural experience,

including openness to change

Expatriate worker qualities• Mendenhall and Oddou [1985]

– Self-orientatedness• Self esteem, Self confidence, Mental adjustment

– Other orientatedness• Ability to interact and develop relationships

– Perceptual factors• Empathy, being non-judgemental

– Cultural toughness• Ability to adjust to very different culture

Expatriate training

• Hofstede suggests:– Awareness– Additional knowledge– skills

• Training methods– Cultural assimilators– Cultural analysis systems– Contrast [American] method train in opposites

Expatriation success or failure measures

• Expatriation satisfaction and rate of early returns• Expatriate adaptation and adjustment• Expatriate job performance• Determinants of above include

– Adjustment of spouse and family– Developing specific coping strategies– Accurate understanding of rules, customs, behaviours

and attributions– Being able to tolerate cultural differences with which

Expatriate may totally disagree

Example 2 : Theory Z

• Application of Japanese management principles to American & British businesses

• Long term focus• Zero tolerance• Personal responsibility for self-development• Positive attitudes to seniority• Teamwork rather than individual achievement• Commitment and trust• Quality and pride• Multi-skilling

Example 3: R & S

• Issues include:– Gender inequalities, especially in ‘masculine’

societies [e.g. poorer promotion prospects for women in Japan, France, etc]

– Specific types of favouritism, but not considered nepotism in some cultures, e.g.

• China• India• Sub-Saharan Africa

Example 3: R & S

• Differences in emphasis on methods, e.g.– Assessment Centres and Biodata– Graphology– References

• And in selection criteria– Team member opinions– Same tribal group– Word of mouth

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