My Best Cultural Models

Business Culture II
Guillherme Nunes – Elodie Delmas – Janaina Patricio Fereira – Alexander Cherem – Morgane Grange

13/12/2010

.....................................................................2 2............................ 9 Management Approach .........1 1................................................................................................................................................ 1 Global research project .....................................Content Preface.................................................... 8 3 Negotiation practices across culture ......................................... 5 Herzberg’s two dimensions theory ............................................................2 3........................................................................................... 9 3.....................................................................................................................................................................3 Maslow’s hierarchy of needs ..............2 1....................................................................................................................... 2 Relevance in a cultural perspective .......... 10 Relevance in a cultural perspective ........................................................ 10 2 .........1 2......3 Marketing Approach ...............................................................1 3...................................... 1 1................................................................................... 6 Relevance in a Cultural Perspective ................3 Hofstede’s value dimensions ................................................................ 3 2 Motivations at works .... 0 1 Values System ...... 5 2...............................

All around the world thousands of different cultures interacts and to make business you have to know how to handle with it. In this paper we focus on three areas linked with culture: values systems. Motivations at work and negotiation practices. With the globalization. Indeed if you understand customers you know how to answer to their needs and desires and so how to make more profit. economists or sociologists set up model and theories in order to try to explain human behaviors. In the business world understand human behavior is a main concern. If you understand your staff you know how to make them work in the most efficient way… To understand people is a thorny issue but is even more difficult if you take account culture. The way that people acting depends of the culture and the subculture where they come from. cultural aspect can’t be avoided. philosophes.Preface Since centuries. . For each one we are trying to show which model or theory could the best explained how it’s working in a cultural perspective.

In this way you can avoid mistakes. we are going to compare two theories. to know better your interlocutor.1 Hofstede’s value dimensions The Dutch professor Geert Hofstede studied the cultural differences to do business. when you have contacts with one of the countries studied. . and that it’s really useful to understand those differences.geert-hofstede. Hofstede was the precursor. In those cases. you face some problems. He started his theory form the finding that when you try to deal with foreign people. (2004). he tried to explain what the main differences between values systems are. or when your start foreign working in another country.1 Values System In this model.ru/content/organizational dimensionsmeasurement-and-change 1 . because it is often difficult compare themselves with the others. you may not know that you belong to an individualist culture. which prove that culture has effects on management. The Globe project deepened and developed the topic. 1.ru/content/organizational-culture-slassification-schemes-elements-dimensions http://corpculture. we will probably make mistakes. Until you don’t see a collectivist country.1 During his researches (from 1967 to 1973).com/ http://corpculture. you should refer to this study. like China. A good thing to do also is to have a look of the results of your country. from Hoftede (1973) and from House theories. Thanks to that. Hofstede tried to emphasize the main factors which influence a culture. if we base our decisions only on what you should do according to the expected behaviours of our culture. 2 1 2 http://www.

in Greece. Leadership. In the other side.thunderbird. http://www. organizational. other opinions or short term decisions than Danish people. like the Japanese.edu/sites/globe/ 6 http://www. In 1991. there is uncertainly avoidance. in Sweden. and how managing it. Leadership. 1996 5 http://www. and validate a cross-level integrated theory of the relationship between culture and societal. We distinguish countries where people focus on the future (investment. It shows how far people accept and expect an unequal power distribution in organizations and institutions.The first dimension is the power distance. and Organizations7. the aim is to give managers some clues to help them in their work.html 7 Review: Culture. Some societies.com/pub-GLOBE-intro.geert-hofstede. Ties between people are less strong. 4 3 2 . which measures how well people feel with uncertainty and avoidance. the United States tolerate and even encourage the individual uniqueness. people take care about the other members of their group.term orientation developed by Chinese searchers. Peter W Dorfman.”3 Sweden is often quoted as a country with a low masculinity level. He asked a grant and really started this project in 1993. The masculinity “refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. French people are not used to having a flat hierarchy. long-term goals …) and the other who pay more attention to next months. Robert J House. because that the cultural behavior required. Paul J Hanges. For example.6 According to the review Culture. Vipin Gupta. For example. In this case also. leaders in a company should be democratic. (b) men's values from one country to another contain a dimension from very assertive and competitive and maximally different from women's values on the one side. They often can’t imagine going to talk directly to the CEO if they are a “simple” employee.grovewell. people tolerate better unstructured situations. the goal of this study was “to conceptualize. They must know that culture influences everyone’s behaviour. 4 We can also add the long/short. unlike Italy. Then. 1. and they are proud to belong to those groups. On the contrary. and leadership effectiveness”. The IBM studies revealed that (a) women's values differ less among societies than men's values. This development has been initiated by Robert J House5. to modest and caring and similar to women's values on the other. organization and leadership.2 Global research project GLOBAL is an acronym for Global Leadership and Organizational Behavior Effectiveness. Thomas Hegesson’s course. 2004. Mansour Javidan. the value “loyalty” less present. Hofstede found criteria to explain differences between countries in terms of integration to groups. operationalize. test. like their family or workmate. Finally.com/ « Culture in international business ». he started thinking about a project which could link culture. and Organizations: The GLOBE Study of 62 Societies.

the research team selected 62 cultures business-oriented. They also determined nine Cultural dimensions. we can find five countries. more when some specialists talk about a “cultural globalization” and in the business context. He was the precursor of this idea of comparing cultures with those criteria in a business way. Future dimension Performance orientation Human orientation 1. by Helen Deresky. but also how making it more hopeful for leaders. p98 to 100 8 3 . in the Middle East area. The level of importance assigned to notions like performance or excellence. so seem to be more adapted to our current world. For example. the globe project looks simpler to use.point of view. which are a kind of unit of measurement: 8 Performance Orientation Institutional Collectivism Gender Egalitarianism Uncertainty Avoidance In-Group Collectivism Future Orientation Humane Orientation Assertiveness Power Distance We can explain just four of them. How much people are planning and investing on the future. International management. altruism and generosity. Pearson international edition. because the others are similar to those of Hofstede. Hofstede did his study and researches from the sixties. From a business student –so probably a future manager.3 Relevance in a cultural perspective The first difference between those two projects is the goal of those studies. area that is subject to shift. Managing across borders and cultures. or at the opposite competitive and in a confrontational model. Assertiveness It measures the level of expectation to be confronted to people modest and tender. if we act today to prepare tomorrow.To reach it. in 10 “societal clusters”. The Globe project seemed to not only focus more on how improving this study. If the culture emphasis human behaviours like fairness. Globe was finished less than ten years ago. so all the data used for it are outdated. Hofstede made a primary research to recognize and understand value dimensions.

Hofstede made a very famous study. Hofstede just focused on one company. If we want to be really précised. and the company culture can influence people. However. the only changing factor was the countries. which give us some ideas about different countries. Explaining a culture and its consequences is complicated. What’s more. 4 . the second study is more adapted. this study is more useful for us. this big company has probably the same kind of criteria to hire people. we have a more precise project.Another difference is about the methods used. not between firms. With Globe. but from different companies. But nowadays. Hofstede distinguished five criteria. it seems that this theory is outdated and not complete. as a result they are not necessary representative of their country. and from more countries. we can’t be satisfied by a simple survey which leads to simple results. comparing with 116 000 for the first). The Globe project used less people (18 000. It could be good because his goal was just to study differences between countries. It is difficult to find the good way to pinpoint on the best criteria to describe cultures. against nine for the Globe project. and really be able to act in the better way in any circumstances. This way of leading the survey gives probably more trustable.

First the social needs which refer to the need of love. The highest level is the need of Selfactualization or “the need for ‘being someone’ also in your own mind”10. These are directly linked with culture and subculture of each one. 50. Thomas Hegelsson – Motivations of individual. In 1943 he published “A Theory of Human Motivation”9 which describes his theory of a hierarchy of needs. at the bottom we can find the physiological needs which are the fundamental ones such as the needs of eat or drink. For doing this we’re going to depict and compare two major theories and their extensions: Maslow’s hierarchy of needs and Herzberg’s two dimensions theory. Through several studies and analysis he realized the complexity of Human needs. love…). the challenge is to find which theory deals the best with cultural influences. But we have to keep in mind that needs are not the same for everybody according to their own values and desires. friendship and being accepted by others. Understand the needs of people and fulfill them is one way to achieve motivation at work. stability). the Maslow’s hierarchy is most of the time represented as a pyramid of five levels. Maslow “Culture in International Business”. Above a simple description of needs. Their models are useful and allow us to understand and categorize them. Psychological Review. an individual can only reach the happiness if he is satisfied on each area of his life (physiology. 370-396 (1943). Then there are the high needs. the most his job is well done. To make it easier to use. As it’s shown in figure 1.2 Motivations at works According to figures and surveys. companies with the higher level of efficiency and competitiveness are places where people are well motivated. According to this. H. 9 10 “A Theory of Human Motivation”. p. people want to be someone face to other people which means having a status in society and be respected. Once this level fulfill. A lot of theorists argue about the nature and how to satisfy people’s needs. A.1 Maslow’s hierarchy of needs Abraham Harold Maslow (1908-1970) is well known in the work psychology area for his work on motivation. Then there is the need of safety namely being protected from any kind of dangers (home.70 5 . 2. Indeed. Therefore managers try to answer a thorny issue: how to achieve workers’ motivation? Motivation is the strength which leads us to achieve an objective. the most an employee is motivated.

The first ones. These factors are “intrinsic”. superior needs have a main place. It’s in 1959 with “The motivation at work” that its theory born. it’s the first step to improve motivation in the work place. Thanks to articles such as “One more time: How do you motivate employees”12 and through conferences it became famous all around the world. They are the working conditions.I. managers have to focus on superior needs to improve motivation at work. According to Herzberg they don’t motivate people. Herzberg led a motivation study on 200 encounters and engineers and concluded that two factors influence human motivations at work. F. Then we can find the “Motivation Factors”. Some are “animal’s needs”. If they are not achieved they strike employees’ motivation and so on efficiency. The individual is not an animal. But if they are not satisfied. They are the meaning of work. the will of achievement. Other factors are “human” ones. The main advance of this theory comparing to classical ones is that human being have two kinds of needs. 2.za/easypass-blog-page/chapter-1-the-business-world-and-business-management “One more time: How do you motivate employees”. the salary. the company policy or the job security. they conducted to “dissatisfaction”. the responsibilities given or the need of recognition. instinctive. Herzberg 6 . are extrinsic that means linked with the environment.co. Harvard Business Review (1968). They are not indispensable but they are a powerful tool to stimulate workers. Indeed. In developed countries. Consequently. 11 12 http://easypass. they don’t stimulate people but they are a prerequisite. thanks to the high level of income. His theory is rooted on an empirical survey. most of the people don’t have to worry about basic needs. They are a booster for individuals. the “hygiene factors”. he needs more than just “basic needs”.Figure 1 Maslow's Hierarchy of Needs 11 According to Maslow when you satisfy a need others from a higher level appear.2 Herzberg’s two dimensions theory Frederick Irving Herzberg (1923-2000) was an American psychologist. They are essential.

files. we can find divergence point about the way to reach to the top or the nature of the lower needs.jpg 7 . As shown in the figure 3.flatworldknowledge.wordpress. Figure 3 Comparison of Maslow and Herzberg’s theories14 However. And both use the same criteria for motivation factors and esteem and self-actualization needs. 13 14 http://www.com/node/28089#web-28089 http://limkokwingmba.Figure 2 Herzberg's two models theory13 Both Maslow and Herzberg use a hierarchical scale of needs. we can easily compare Maslow’s safety and physiological needs with Herzberg’s hygiene factors.com/2008/08/herzberg-and-maslow.

-C. A. Moreover.46 16 “Marketing across culture”. According to the country. They help us to get a deeper and easier understanding of how motivation at work is linked to the satisfaction of needs. They might have other criteria or a different perception of their importance. “ Marketing across culture”. Since there is not well established order for them in the Herzberg model is the best one to handle. J. Alston 15 8 . Once hygiene factors which the hierarchy is common to everyone are achieved. Maslow states that to advance to the next stage the lower stage must be fully completed. Usunier and J.3 Relevance in a Cultural Perspective Both models are full of great schemas and ideas. needs might be achieved by different ways. eastern country such as Japan. California Management Revue n°4 (1998). Motivations factors are more or less the same for all human being. In fact values and norms change according to the culture. as does the way in which each need is met”16.Elenkov 18 Managerial Principles in Japan. we can say that “whereas the list of needs described by Maslow are themselves fairly consistent across culture. namely US culture. Lee – culture and consumer behavior. According to this Herzberg theory is more flexible and seems to be the one to use in a cultural perspective.S.71 17 “Can American management concept work in Russia?. P. Hygiene factors aggregate all essential needs. For Herzberg only one stage has to be completed to achieve motivation: hygiene needs. If we referred to Hofstede15. J. p. Only their rank change.The cultural relativity of management theory. you can’t reach self-actualization if your status needs is not achieved. Lee . This lead us to say that whatever the culture. In other words. China . But needs are most of the time influenced by culture. are more concerned by the group than themselves (the “wa” or group harmony principle18). Usunier and J.17 Similarly. according to a study conducted by Elenkov in Russia. 5th edition. For instance the safety need could be to have a good insurance in USA which is not so important for a Tahitian worker. Business Horizons (1989). However this is more linked to the degree of economic development of the country than its culture. Indeed one century ago US workers should have the same claims than current Tahitian workers. hygiene factors are the same and need to be completed before the higher needs. Indeed both theorists state the manner to satisfy people. D.and Korea.-C. J. Russian managers considered that security and self-actualization are more basic than belongingness needs. their rank ordering varies. these needs might be achieve by different ways. 5th edition. Another hierarchy of needs might be better to depict another culture. p. That means for example. Maslow and Herzberg solutions just answer to a specific context: strong masculinity and individualist countries.2. For instance. A. So which model is the best one to use in a cultural perspective? First of all we have to keep in mind that none is perfect. But these theories are deeply related to the environment of their authers. we can focus on the upper step. Consequently social needs are higher than status needs.

trust and tasks – Usinier.3 Negotiation practices across culture A lot of theories depict the best way of negotiating across borders. By comparing them we are trying to choose which is the more reliable in a cultural perspective. middle and end + emphasizes in building trust and credibility + considering behavioral predispositions of the parties + negotiators aspects to construct of credibility + considering the time-based misunderstanding + the different types to finalize the agreement (write contract or verbal ) + better orientation to differences outcome + integrative negotiation strategy and possibilities towards to its application + more complete description about Communication 19 Intercultural marketing negotiations: people. Jean-Claude 4th edition 2005 9 . Here we focus on two approaches: marketing method and management method.the negotiation process isn’t clear. 3.1 Marketing Approach 19 + containing more detailed approach in negotiating with cultural aspects . there is no beginning. in other words.

generalist about different cultures and therefore end up with stereotypes (e. The interaction between business people is difficult because of their different cultural. The book explains that negotiation is more than a legal matter and for business is also based in the human and social interactions. Only after it discussed about culturally coded signs.3.g.Doesn’t approach aspects about the negotiator (e. 3. The author started from an important variable which affects all cultures during the negotiation: the trust.g. sex and so forth). With the points raised in the book "Marketing across Cultures" it would be easy to sort them by stages within the negotiation. middle and end. The only negative point is that this model does not worry about process which helps people to use the model with a clearer perception of your application within the negotiation.some comparisons between different cultures + discusses negotiations over the Internet with examples + addresses management of conflicts. Helen 5th edition 2006 10 . . doesn’t implies that there are differences between them) . A clear and objective description of a process contributes greatly to the implementation of actions that have beginning.Deresky. age. Thus it relates to cultural aspects in an international market. hierarchy. human and social backgrounds and empathy is not enough to avoid misunderstanding.3 Relevance in a cultural perspective We believe that the marketing approach presented above is more complete. 20 international management cross-cultural negotiation . It ensures a simple process which would facilitate the use of the model and spread better this knowledge. + examples in how to behave when a negotiation it’s done + deepens on trading with China +. all America thinks of a way. such as the negotiation.2 Management Approach20 + makes clear the negotiation process from start to finish + a perspective in what to expect when a negotiation with another country it’s done -a superficial approach about some of the important negotiation themes.

it defines important aspects in this context to follow: “1. “The best way to resolve problems is through communication”. Without this approach it’s impossible to start a negotiation with people from their own country or abroad. If negotiators want to promote an integrative approach. 4. (USINER et al. 3. Trust is about sharing common faith. every culture has to deal with the paradox of their inseparability. (3) expansion. 2002). Or even when it does not need to be written. 11 . 2005) The second book in other turn has also positive points. (2) exploration. language and environment. In several places in the world is not always something that is formalized in a contract is followed. (4) commitment and (5) dissolution. 2) relationship building. 2. in order to easily find differences in culture. even though this does not deny the value of the lessons of the past” A stages model in the process of relational exchange is used for helping to understand the building trust. between them. beliefs. after the book showed some points building trust in international business negotiations. Trust is reliance on and confidence in people. 4) persuasion and 5) and concession agreement.. In this way is of utmost importance to analyze the cultural issue of the parties: How to go to a business meeting without knowing what time you should go? This is a big problem when it comes to negotiation with different cultures. As a demonstration of humility and candor can sometimes be mistaken for weakness and inexperience. Trust is inseparable from distrust: nice obvious showing of distrust is detrimental to the establishment of trust. it is important for them to focus on sharing and seeking information.. sometimes an oral contract is valid more than a written one. This may occurs mainly in cultures that require a good relationship (showing a lot of trust between the parties). Thus. This means that the negotiators tend to adapt their behavior to each culture. self-esteem and show respect to the parties involved. these variables need to be carefully studied before launching a negotiation. to know how to build this credibility is the key. possibility education or group inseparability. Since the book does not have of power to take the definition of humanity. Trust is directed to the future and to common achievements. Trust has a lot of definition so it’s very difficult to discuss about the equality element to base the negotiation if it does not have the coherence about what is trust. They are (1) awareness. makes clear the negotiation process from start to finish. The language used for negotiation has its importance: the myth that any language can be translated into another language often causes English to be chosen as a central negotiation language and to add interpreters when proficiency is too low on one side. words and things. 9 hours does not always mean exactly 9.The book defines trust and shows some elements to follow. may be around 9 or else appear any time in the morning. The book defines the negotiation process in five main stages: 1) Preparation. One important aspect that was addressed is to consider behavioral predispositions of the parties. Communication has been shown to generate greater cooperation even tendencies to self-interest (Wade-Benzoni et al. 3) Exchanging Task-related information. In the first stage he considers an important preparation before starting business with other countries. The first step to a successful negotiation is to have credibility.

for example. such as "multiple issue. but there are different countries in Latin America and each has a different behavior. among others. . Example of this is that it describes the behavior of Latin America. time of meeting in each country. He cites some cultural data that can be crucial when dealing with other countries. so if the dealer does not know the behavior of these countries that he will negotiate with it has a great risk of failing. it may provide support for various phases and dimensions. The fifth stage: concessions and agreement is the final part of the negotiation.. This step is different in many cultures. But it treats these data superficially and does not comment much about them which is an unfavorable aspect compared to the first book. The book shows us how to lead with situations of managing conflict.g. Another negative aspect is that the book is very general about behavior of people in a given region. In the fourth stage the hard bargaining starts. This is the stage where each party tries to persuade the other to their advantage. In this case the book cites that there may be differences in how it is handled in different countries. The book's a good perspective in what to expect when a negotiation with another culture it's done. and so forth).. hierarchy. Another point described in the book is the facilities that the Internet provides for negotiations. Third stage is set by the moment that each side typically makes a presentation and states its position. acts. 12 . One contemporary tool in the negotiation making that helps to avoid circumstances of conflict is the online B2B marketplace. internal company communications and Negotiations. multiple party Transactions of business buy-sell nature. some variables that the book cites is the protocol. Americans and Brazilians taking into account some variables. The Web Application. as the Russians to the formal contract is required. We know that when we negotiate with some countries it is necessary to understand their culture. for example the Japanese consider an insult to formulate formal contracts. subject matter and so forth. international dispute resolution (business disputes. what the book does not mention is that in certain countries dealers have some different values as to what to expect from the negotiator. The book shows a comparison between the negotiating tactics of Japanese. political disputes).Second Stage: relationship building is the process of getting to know one´ s contacts in a host country and building mutual trust before embarking on business discussion and transactions. exchanges where buyers and sellers negotiate prices speed up the decision-making and transactions process. about the approach and negotiator aspects (e. This process has different importance depending on the country.

Usunier and J.be/01/index.geert-hofstede.accel-team. Harvard Business Review (1968). Alston 13 .reseauconsultants.org/wiki/Motivation#La_th.edu/sites/globe/ http://www.S. and Organizations: The GLOBE Study of 62 Societies.com/pub-GLOBE-intro. A.and Korea. 370-396 (1943).27Herzberg_.com/ http://corpculture.pdf http://wiki.29 http://www.pdf http://lirhe. 1996 Culture.files. Herzberg Can American management concept work in Russia?. Thomas Hegelsson .281959. Psychological Review.com/motivation/index. Managing across borders and cultures. J. 5th edition. Vipin Gupta.php?option=com_content&view=article&id=102&Itemid=118 http://fr.stephanehaefliger.com/Q/Compare_and_contrast_maslow's_hierarchy_of_needs_theory_with_herzberg's_t wo_factor_theory http://www.net/yo9esh/motivation-theory-presentation http://www.za/easypass-blog-page/chapter-1-the-business-world-and-business-management http://www.com/campus/biblio/003/Maslow_et_Herzberg/meheltm. Pearson international edition Marketing across culture. 50.-C.jpg Written references International management.ru/content/organizational-culture-slassification-schemes-elements-dimensionsmeasurement-and-change http://www.slideshare. 2004.grovewell.ac.html http://easypass.Elenkov Managerial Principles in Japan. A Theory of Human Motivation.technion.fr/publications/Autres/sup_gond_aes15. F.com/node/28089#web-28089 http://limkokwingmba. Business Horizons (1989). J.wordpress. A. D. Paul J Hanges. Robert J House.pdf http://www.com/2008/08/herzberg-and-maslow. Leadership. by Helen Deresky. Maslow One more time: How do you motivate employees.A9orie_des_deux_facteurs_d. California Management Revue n°4 (1998).I. Mansour Javidan.References Web references http://www.C3.co.il/~merez/papers/frontwm.html http://iew3.wikipedia.answers. H. Lee Culture in International Business. China . Peter W Dorfman. P.flatworldknowledge.univ-tlse1.thunderbird.