CULTURE CULTURE IN A GLOBAL CONTEXTIN A GLOBAL CONTEXT

Dr.Dr. Rayna DimitrovaRayna Dimitrova19 October 200919 October 2009

CultureCulture

• Understanding the conceptUnderstanding the concept

• Multi-faceted natureMulti-faceted nature

• Over 164 definitions, lack of Over 164 definitions, lack of overriding oneoverriding one

• Understanding culture has become Understanding culture has become an area of academic study in its own an area of academic study in its own rightright

Exploring cultureExploring culture

• Difficult since not all members of the Difficult since not all members of the society share the same valuessociety share the same values

• Risk of stereotypingRisk of stereotyping

• There is propensity for people to There is propensity for people to have multiple of overlapping have multiple of overlapping identities, which are constantly identities, which are constantly changingchanging

Macro level perspectiveMacro level perspective

• Political/economic systemPolitical/economic system

• Religion/philosophical beliefsReligion/philosophical beliefs

• Economic prosperityEconomic prosperity

• Language (Belgium vs. Switzerland)Language (Belgium vs. Switzerland)

• Educational systemEducational system

• Values/shared meaningsValues/shared meanings

Cultural aspectsCultural aspects

• Attitudes, beliefs, values, rituals,Attitudes, beliefs, values, rituals,

taken for granted assumptions taken for granted assumptions

• BehaviourBehaviour

• Shared meaning and understandingShared meaning and understanding

Hofstede’s classic quoteHofstede’s classic quote

• ““collective programming of mind that collective programming of mind that distinguishes the members of one distinguishes the members of one group or category of people from group or category of people from another.” another.”

Hofstede’s workHofstede’s work

• Genesis in 1960, two major surveys Genesis in 1960, two major surveys on cross-cultural differences in IBM in on cross-cultural differences in IBM in 64 countries64 countries

• Further developed in 1980Further developed in 1980• Continues to publish in 21 centuryContinues to publish in 21 century• With five dimensions seeks to With five dimensions seeks to

conceptualize differences between conceptualize differences between culturescultures

Hofstede model of Cultural Hofstede model of Cultural DimensionsDimensions

• Power distancePower distance

• IndividualismIndividualism

• MasculinityMasculinity

• Uncertainty avoidanceUncertainty avoidance

• Long term orientationLong term orientation

Power distance (PDI)Power distance (PDI)

• The degree of inequality that members The degree of inequality that members of a culture expect and acceptof a culture expect and accept

• Importance of status, hierarchyImportance of status, hierarchy

• Suggests level of inequality is endorsed Suggests level of inequality is endorsed by followers as much as by leadersby followers as much as by leaders

• Arab countries – high Arab countries – high

Austria, Israel – very low Austria, Israel – very low

Individualism/collectivism Individualism/collectivism (IDV)(IDV)• The extent to which people in a culture act The extent to which people in a culture act

as individuals and stress their own interestsas individuals and stress their own interests

• Latin countries rank among most Latin countries rank among most collectivisticcollectivistic

• Western, such as US, UK, Australia most Western, such as US, UK, Australia most individualisticindividualistic

• Individualism is correlated w/ national Individualism is correlated w/ national wealthwealth

Masculinity/femininity (MAS) Masculinity/femininity (MAS)

• Refers to values placed on traditional Refers to values placed on traditional male or female valuesmale or female values

• Masculine cultures: competitiveness, Masculine cultures: competitiveness, assertiveness, ambition, assertiveness, ambition, accumulation of wealth accumulation of wealth

• Feminine cultures: relationship and Feminine cultures: relationship and quality of lifequality of life

• Japan, Slovakia vs. Sweden, NorwayJapan, Slovakia vs. Sweden, Norway

Uncertainty avoidance (UAI)Uncertainty avoidance (UAI)

• The extent to which members welcome The extent to which members welcome uncertainty and change as opposed to uncertainty and change as opposed to desiring structured situationsdesiring structured situations

• High: One could expect preponderance High: One could expect preponderance of unambiguous rules, policies and of unambiguous rules, policies and regulations in work organizationsregulations in work organizations

• Japan vs. SingaporeJapan vs. Singapore• Germany scores 65Germany scores 65

Long term orientation (LTO) Long term orientation (LTO) **

• Describes society’s time horizonDescribes society’s time horizon

• Importance attached to the future vs. Importance attached to the future vs. past and presentpast and present

• LT values: thrift, perseveranceLT values: thrift, perseverance

• ST: respect for tradition, fulfilling ST: respect for tradition, fulfilling social obligationssocial obligations

• China vs. US, African countriesChina vs. US, African countries

Synthetic cultures…..Synthetic cultures…..

• Are the ten “pure” cultural types Are the ten “pure” cultural types derived from the extremes of the five derived from the extremes of the five dimensionsdimensions

Country ratingsCountry ratings

CountryCountry PDIPDI IDVIDV MASMAS UAIUAI LTOLTO

ChinaChina 8080 2020 6666 4040 118118

JapanJapan 5454 4646 9595 9292 8080

BrazilBrazil 6969 3838 4949 7676 6565

IndiaIndia 7777 4848 5656 4040 6161

USUS 4040 9191 6262 4646 2929

Organizational vs. national Organizational vs. national cultureculture

• National cultures distinguish similar people, National cultures distinguish similar people, institutionsinstitutions/o/organizations in different rganizations in different countries.countries.

• Organizational cultures, distinguish different Organizational cultures, distinguish different organizations within the same countryorganizations within the same country..

• Managing international business means Managing international business means

handling both national and organization handling both national and organization culture differences at the same time.culture differences at the same time.

• Corporate never trumps national !Corporate never trumps national !

Surviving in multicultural Surviving in multicultural worldworld

• One does not need to think, feel, and One does not need to think, feel, and act in the same way in order to agree act in the same way in order to agree on practical issues and cooperateon practical issues and cooperate

• Agree to be differentAgree to be different

• Diversity should be seen less as part Diversity should be seen less as part of HR and more as something owned of HR and more as something owned by the businessby the business

Managing intercultural Managing intercultural communicationcommunication

• Guidance on work processes and Guidance on work processes and proceduresprocedures

• Recognize different types of Recognize different types of contributionscontributions

• Observe the communication of Observe the communication of international staff international staff

• Watch out for relational conflictsWatch out for relational conflicts(hierarchy)(hierarchy)

Managing intercultural Managing intercultural communication (continued)communication (continued)

• Ensure clarity of languageEnsure clarity of language

• Choose the most appropriate Choose the most appropriate communication channelscommunication channels

• Recognize and deal with problems Recognize and deal with problems promptlypromptly

• Offer cross-cultural integrating Offer cross-cultural integrating sessionssessions

Case study: IATACase study: IATA

• International Air Transport AssociationInternational Air Transport Association

• Represents 230 airlines, employs Represents 230 airlines, employs 1,600 staff of 140 nationalities in 74 1,600 staff of 140 nationalities in 74 countriescountries

• HQs in Geneva and MontrealHQs in Geneva and Montreal

• Fast growing markets India, ChinaFast growing markets India, China

• ““We cannot sell in Mumbai with a We cannot sell in Mumbai with a Montreal mindset”Montreal mindset”

IATA’s cross-cultural IATA’s cross-cultural programprogram1.1. Identify the Identify the culturescultures that need to that need to

collaboratecollaborate

2.2. Identify Identify leadersleaders in each culture in each culture

3.3. Identify Identify pairspairs of co-leaders of co-leaders

4.4. Identify Identify real projectsreal projects

5.5. Identify Identify realistic timeframerealistic timeframe

6.6. ShareShare practices practices

7.7. Adapt for the Adapt for the nextnext challenge challenge

Case study: call center in Case study: call center in IndiaIndia

• 2600 employees in India provide call 2600 employees in India provide call center and home office support for center and home office support for Norwich Union, Aviva’s UK insurance Norwich Union, Aviva’s UK insurance businessbusiness

Seven failings of useless Seven failings of useless leadersleaders

1. Kill enthusiasm1. Kill enthusiasm

2. Kill emiotion2. Kill emiotion

3. Kill explanation3. Kill explanation

4. Kill engagement4. Kill engagement

5. Kill reward5. Kill reward

6. 6. Kill cultureKill culture

7. Kill trust7. Kill trust

Thank you!Thank you!

• Let’s see the movie now!Let’s see the movie now!