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Managing Cultural Differences

In today’s global business environment, it is vital that individuals and organizations have
sophisticated global leadership skills. Communication and understanding of different
cultures is paramount to business success.
This new edition of the bestselling textbook, Managing Cultural Differences, guides
students and practitioners to an understanding of how to do business internationally,
providing practical advice on how competitive advantage can be gained through effective
cross- cultural management. Crises in the Middle East, the weakening of some emerging
markets, and the value of diversity and inclusion are just a few examples of contemporary
issues discussed in this text, which also introduces a completely new chapter on global
business ethics.
With a wealth of new examples, case studies, and online materials, this textbook is
required course reading for undergraduates, postgraduates, and MBA students alike, as well
as being a vital tool for anybody selling, purchasing, traveling, or working internationally.

Neil Remington Abramson Having worked as a consultant and manager in the private
sector for many years, Neil Abramson completed his MBA and PhD at the Richard Ivey
School of Business, Western University. He is a professor of International Strategy (ret.) at
Simon Fraser University. An East Asia specialist, Abramson researches the building of
effective, harmonious, and ethical cross-national business relationships. He has published in
the Journal of International Business Studies, Management International Review, Journal of
Business Ethics, and Organization Studies. As president of the SFU Faculty Association, he
led its successful unionization.

Robert T. Moran Bob Moran began his professional career in Japan as a Catholic priest
whose responsibilities in Japan for five years included working as a playing coach for the
best hockey team in Japan. It was during this experience that he learned that “culture
counts” and living and working in a new and complex culture required new skills. He ended
his professional career as a Professor Emeritus at Thunderbird School of Global
Management, USA. At Thunderbird he was voted by students 16 times Outstanding
Professor in International Studies. As a consultant and presenter in Executive Education
Programs he has worked for Exxon Mobil, Novartis, Singapore Airlines, Toyota, JCB, Volvo,
General Motors, and many other global organizations. Academic institutions he has worked
with include Thunderbird, SMU, Stanford, Wharton, Babson and others. The book
Managing Cultural Differences is an overview of what he has learned and taught about
leadership in complex, changing global business environments.

2
3
Praise for the Tenth Edition:

“The new newest edition of Managing Cultural Differences is outstanding. It outlines impor-
tant skill sets and excellent international background for today’s global managers and leaders.
I highly recommend it to CEOs and their management teams.”
– Harry Owens Jr., MD MIM CPE, Private Consultant, International Health Programs/Projects, USA

“With increasingly globalized markets, our workplaces today are much more diverse and
complex. The tenth edition of Managing Cultural Differences is a must-read for people
looking to become effective managers and deal makers, and to master the delicate aspects of
international business.”
– Lucy Li, National Director of Client Segment Strategy, Business Financial Services, Royal Bank of Canada

“A timely new edition that is thought provoking and superbly easy to delve into. This is a fuss
free read that skilfully marries key globalization, leadership and inter-cultural ideas and
concepts with great illustrations from social and business practice. The addition of two new
chapters on the topical themes of leadership in an increasingly challenging global world as
well as global business ethics is to be welcomed and a richly informative addition from a
reader’s perspective, be they international business studies students or global leadership
practitioners.”
– Randhir Auluck, Associate Head of School, School of Marketing and Management, Coventry University, UK

“In a world growing ever closer, the need for cultural translation to enable increased func-
tionality is more important than ever. This book is a new tool for the business toolbox, which
offers not just a path forward, but actionable examples that can be used today.”
– Harold S. Back, President, Core Financial Corporation, USA

“This new edition continues to generate enhanced understanding of cultural differences in a

business context, and offers tools for managing effectively. I highly recommend it to students
of International Business.”
– Hemant Merchant, PhD, Professor of Global Business, University of South Florida St. Petersburg, USA

4
Praise for the previous editions:

“[R]ich with new stories, examples and suggestions … contains required information for
anyone interacting in a culture other than their own.”
– Warren Wilhelm, DBA Harvard Business School, President, Global Business Alliance

“[T]his book will continue to be my guide for working with European and global clients.”
– Karen Green, Organizational Development Consultant, Karity HR Solutions, UK

“[A] must read for managers and leaders working cross-culturally.”

– Jeffrey Kolanchick, Leadership Development Advisor, Saudi Aramco, Saudi Arabia

“[A] terrific springboard for understanding the complexities, challenges and rewarding of
running global operations.”
– J.T. Battenberg, III, Chairman of the Board/CEO Delphi Automotive Systems

“[M]erits the classification as the Gold Standard of cross-cultural textbooks.”

– Richard D. Mahoney, PhD, Thunderbird School of Global Management

“[O]ne of the best organized books on the subject.”

– The HRD Review

“[A] rich, almost encyclopedic array of advice, case studies and examples … an excellent
book.”
– Academy of Management Review

5
Managing Cultural Differences
Global Leadership for the 21st Century
TENTH EDITION

Neil Remington Abramson and Robert T. Moran

6
Tenth edition published 2018
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN

and by Routledge
711 Third Avenue, New York, NY 10017

Routledge is an imprint of the Taylor & Francis Group, an informa business

© 2018 Neil Remington Abramson and Robert T. Moran

The right of Neil Remington Abramson and Robert T. Moran to be identified as authors of this work has been asserted by
them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic,
mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information
storage or retrieval system, without permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.

First edition published by Gulf Publishing Company, Houston, Texas 1979

Ninth edition published by Routledge 2014

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging- in-Publication Data

Names: Abramson, Neil R., 1953- author. | Moran, Robert T., 1938- author. |
Harris, Philip R. (Philip Robert), 1926– Managing cultural differences.
Title: Managing cultural differences / Neil R. Abramson and Robert T. Moran.
Description: Tenth Edition. | New York : Routledge, 2018. | Revised
edition of the authors’ Managing cultural differences, 2014. | Includes
bibliographical references and index.
Identifiers: LCCN 2017007985| ISBN 9781138223455 (hardback) |
ISBN 9781138223684 (pbk.) | ISBN 9781315403984 (ebook)
Subjects: LCSH: International business enterprises—Management. |
Management—Cross-cultural studies. | Acculturation. | Cross-cultural studies.
Classification: LCC HD62.4 .H37 2014 | DDC 658.1/8—dc23
LC record available at https://lccn.loc.gov/2017007985

ISBN: 978-1-138-22345-5 (hbk)

ISBN: 978-1-138-22368-4 (pbk)
ISBN: 978-1-315-40398-4 (ebk)

Typeset in Berthold Akzidenz Grotesk

by RefineCatch Limited, Bungay, Suffolk

Visit the companion website: www.routledge.com/cw/moran

7
8
To my wife Haruyo and my all-grown-up family: Rutsu, Ikkei, Karen and Tomoka. Thanks for
all the care and support you give me. To my teachers: Alan Haynes, Dick Henshel, Harry
Lane, Trevor Fisher, and so many more. Thanks for helping me come to where I am. In faith,
hope and love.
Neil Remington Abramson

To Elizabeth, Sarah, Molly, Rebecca, Benedict and of course Virgilia. You bring much joy into
our home.
Robert T. Moran

9
Contents

List of exhibits
Foreword
Preface
Acknowledgments

1 Global leadership, culture, and a changing world

Learning objectives
Learning objectives
Culture
Systems approach to culture
Key cultural terminology
Cultural understanding and sensitivity
Global transformations
Conclusions
Mind stretching
Notes

2 Global leaders and intercultural communications

Learning objectives
Introduction
Intercultural communication: introduction
The communication process
Models of intercultural communication
Nonverbal communication
Intercultural communication guidelines
Personality psychology and intercultural communications
Conclusions
Mind stretching
Notes

3 Global leaders learning in response to change

Learning objectives
Introduction
Aspects of organizational learning
Management mindsets and learning

10
 Environmental change and its learning effects
Individual learning
Conclusions
Mind stretching
Notes

4 Negotiating long term for mutual benefit

Learning objectives
Japanese patterns of behavior
Learning objectives
Three examples of “cultural baggage”
Negotiating across cultures
Assumptions and negotiating
Framework for international business negotiations
Conflict resolution and negotiations
The price of failed negotiations
Conclusions
Mind stretching
Notes

5 Women leaders in global business

Learning objectives
Are women the answer to problems of culture clash?
Learning objectives
Current status of global women managers
Global cultural stereotypes about women leaders
Balancing work and family
The glass ceiling
Company initiatives to break the glass ceiling
Women and overseas, expatriate assignments
How have several specific women succeeded? Are they going about business differently?
Conclusions
Mind stretching
Notes

6 Motivating the global workforce: the case for diversity and inclusion

Learning objectives
Introduction
Cultural diversity competitive advantages
Sources of global diversity
Integrating diversity
Conclusions
Mind stretching

11
 Notes

7 Lessons for global leaders

Learning objectives
Lesson one: Sir Ernest Shackleton
Lesson two: building partnership for material benefit
Lesson three: Winston Churchill, as CEO
Framework: leadership skills to make globalization succeed
Description of competencies
Final lesson: from Steve Jobs
Mind stretching
Notes

8 Teams: colocated or virtual

Learning objectives
High-performing teams
Rating the performance of your global teams
Understanding team strategy
Team building for success and synergy
Improving performance through team culture
Global teams
Meeting when teams are virtual
Team leaders or members as influencers of others on a team
High-performing global leadership
Teams and empowerment
Intercultural, cultural, interethnic, and any couple relationship as a team
Conclusions
Mind stretching
Notes

9 Global business ethics: building personal ethics to achieve trust and relationship

Learning objectives
Introduction
Ethics and evolutionary psychology
Ideational ethics: Confucianism in China
Ideational ethics: Buddhism
Western Judeo-Christian views on reconciliation
Conclusions
Mind stretching
Notes

10 Managing global transitions and relocations

12
 Learning objectives
Our family moves back to France
Saga of my Brazilian adventure
My first truly global experience
Being normal in my “personal” culture
Uprooted childhoods
Relocation challenges
One family’s experience after living in Europe and returning home
Cross-border global travel
Coping with transitional challenges
Fostering acculturation strategies
Stage 1: personnel and program assessment
Stage 2: personnel orientation and training
Stage 3: support service: on-site support and monitoring
Stage 4: reacculturation—reentry program
Business etiquette and protocol abroad
Assessment instruments
Academic studies on “acculturation”
Conclusions
Mind stretching
Notes

11 International strategy in a global business environment

Learning objectives
Introduction
The strategic planning process
Japanese strategic theory
Chinese strategic theory
Conclusions
Mind stretching
Notes

12 Doing business in the Middle East

Learning objectives
Introduction
Commonalities across Middle Eastern cultures
Cultural aspects of doing business in Turkey
Egypt
Saudi Arabia
Iraq review
Iran review
Israel review
Middle Eastern reactions to Westerners

13
 Conclusions
Mind stretching
Notes

13 Doing business in Latin America

Learning objectives
Latin American overview
Central American countries
South American cultural development
Mexico and NAFTA
Brazil
Argentina
Latin American cultural themes
Challenges for Pan-American cooperation
Conclusions
Mind stretching
Notes

14 Doing business in East Asia

Learning objectives
Introduction
China, Japan, and Korea comparisons
China
Japan
South Korea
Hong Kong
Conclusions
Mind stretching
Notes

15 Doing business in South and Southeast Asia, and Australia

Learning objectives
Introduction
General considerations
National character
India
Australia
Singapore and Malaysia
Thailand
Vietnam
Conclusions
Mind stretching
Notes

14
16 Doing business in Europe and Russia: Great Britain, Ireland, France, Germany, Italy, and
Russia

Learning objectives
Historical perspective
European diversity
Western Europe
Great Britain
Ireland: The Emerald Isle
France
Germany
Italy
Russia
Conclusions
Mind stretching
Notes

17 Doing business in Africa

Learning objectives
Beginnings
Modern Africa
Aspects of African culture
Cultural characteristics of Africans
Cultural specifics by geographic regions
Conclusions
Mind stretching
African resources
Notes

18 Doing business in Canada and the United States

Learning objectives
Introduction
American–Canadian comparisons
The United States of America
The Dominion of Canada
Conclusions
Mind stretching
Notes

Index

15
16
17
Exhibits

1.1 Counting elevator floors

1.2 Positions of 40 countries on the power distance and uncertainty avoidance scales
1.3 Positions of 40 countries on the power distance and individualism scales
1.4 Nine dimensions
1.5 Continuum of cultural variables
1.6 Interculturally competent leader
2.1 Middle East low-/high- context communication
2.2 An emergency
2.3 Fast and slow messages
2.4 Monochronic versus polychronic people
2.5 Types of nonverbal communication
2.6 Research- identified behaviors most important for intercultural effectiveness
2.7 Eight Jungian personality types
2.8 Dominant and auxiliary attitude- function preferences based on MBTI assessment
2.9 Distribution of extraverted attitude- functions encountered in international
communications
2.10 Se, Fe, Te, Ne dominant or auxiliary extraverted attitude- function national
communication style clusters
2.11 Characteristic dominant attitude- function behavior when stressed
3.1 Comparing Perlmutter’s three mindsets
3.2 American values and possible alternatives
3.3 Relative attractiveness of foreign market entry strategies
3.4 Comparison of crisis, reactive, and anticipatory change situations
3.5 Measures of firm performance
3.6 Four temperament- based leadership styles, change and learning
3.7 Biggest trading nations (world total = $27,567 billion)
3.8 Temperament by national culture for the top 20 trading nations
4.1 The US negotiator’s global report card
4.2 A two- dimensional schematic showing various styles of conflict resolution
4.3 War forges a new era in corporate Arab/American relationships
5.1 Status of global women executive officers, 2016, an update
5.2 Select survey results of the corporate gender gap report, 2010
5.3 Difference index scores
5.4 A study of women and wages worldwide
6.1 Examples of indicators that companies can use to monitor employee performance
6.2 Some key individual competencies related to performance
6.3 Root causes of immigration

18
6.4 Comparing Bartlett and Ghoshal’s theory of coordination with the theory of goal
interdependence
6.5 Comparing constructive controversy and concurrence seeking
6.6 Reddin’s leadership grid
7.1 Map of Shackleton’s journey
7.2 Moran/Riesenberger framework
8.1 Characterizations of high- synergy and low- synergy societies
8.2 Typical phases on the path to becoming a high- performing team
8.3 Team performance
8.4 Human factors that foster or hinder professional synergy within a project
8.5 Self- management competencies and effective team members
8.6 Cohen/Bradford model of influence without authority
9.1 Main world religions and number of adherents (2011)
9.2 Ethical characteristics of ideational and sensate cultures
9.3 What are America’s values in 2016?
9.4 Xunzi Confucian spheres of moral reasoning
9.5 Ten largest Buddhist national populations
10.1 The foreign deployment process: selection/preparation/support/reentry best practices
10.2 UN study cites value of global migration
11.1 Double diamond strategy model
11.2 Entry barrier criteria
11.3 Buyer power criteria
11.4 Supplier power criteria
11.5 Substitutes power criteria
11.6 Rivalry criteria
11.7 Competitive analysis
11.8 Three generic strategies
11.9 Potentially necessary resources
11.10 Gap analysis protocol
11.11 Potentially necessary organization capabilities
11.12 Implementation flowcharting at a junior gold- surveying company
11.13 Four Jungian problem- solving styles
11.14 Si, Fi, Ti, Ni introverted national attitude- function problem- solving preferences
11.15 Rules of thumb for strategic planning
12.1 Pillars of Islamic belief
12.2 Qualities of a good manager as defined by Islam
12.3 Effects of value conflicts between Western business and Islam
12.4 Jungian communication style preferences for Middle Eastern and Western nations
12.5 Jungian problem- solving style preferences for Middle Eastern and Western nations
12.6 Behavioral differences based on power- distance
12.7 Behavioral differences based on individualism vs. collectivism
12.8 Behavioral differences based on task vs. relationship
12.9 Behavioral differences due to uncertainty avoidance
13.1 Latin America: profile

19
13.2 China’s role in Latin America
13.3 Kras’ Cultural Factors
13.4 Historical stereotypes
14.1 World trade comparisons, 2015
14.2 Pioneering entrepreneur and capitalist
14.3 Younger generation of Chinese entrepreneurs
14.4 North Korean nightmare
14.5 Korean culture may offer clues to Asiana crash- landing
15.1 Exports, imports, and total trade and national ranking, 2015 ($ billions)
15.2 Ease of doing business (world rankings)
15.3 Measuring business regulations (world rankings, 1 to 185)
15.4 Problem- solving and communications style in national cultures
15.5 The high- tech revolution
15.6 India’s Tata enterprises
15.7 Indian growth rates slowing?
15.8 Transforming Vietnam
16.1 Cross- border Alpine business
16.2 General tips for doing business in Europe
16.3 Perceptions of France
16.4 Business tips with the French
16.5 Business tips with Germans
16.6 Observations on Italy
16.7 Concluding tips for doing business in Italy
17.1 Impact of telecommunications in Africa
17.2 Jones & Smith Food Company
17.3 Mauritius: multidiversity progress
17.4 The new South Africa
17.5 China in Africa
18.1 Comparative economic and social indices
18.2 World Bank: ease of doing business
18.3 Nations predisposed in favor of Te or Fe communications styles
18.4 American versus Canadian negotiation strategies and behavior
18.5 Relationship criteria for American and Canadian business cultures
18.6 Buyer–seller relationship- building activities by mean score
18.7 Culture contrast
18.8 America’s changing culture
18.9 Largest ethnic identity groups in Canada
18.10 A personal recollection, traveling in China

20
Foreword

Each day I drive down the road to my office, which connects New Delhi, the capital city of
India, to the home of the Taj Mahal—Agra. From the humble bullock cart to the technological
and engineering marvel—the latest limousine; from the farmer carrying his harvest to the
market to the Ivy League-educated executive; from the cows, to the trucks and the crowded
buses, everyone seemingly has equal right to space on the road. Yet in all of this chaos, each
person seems to be headed somewhere with intent.
One often wonders what overseas visitors, especially businesspeople, would think of this on
their first visit to India. Would the Westerners, who are perhaps “goal-focused,” ponder how
they will meet their objectives in this chaos? Would the Chinese, who are perhaps used to
“order,” contemplate on how they will meet their objectives? What is the Indian, who is used
to “ambiguity,” thinking? What if they are actually members of the same global company;
perhaps part of the same team that has been tasked with executing a time-limited project?
Having worked with Japanese, Indian, American, and British MNCs, I am often reminded of
my early days in one of the first Indo-Japanese joint ventures in India, almost three decades
ago, when the Indian and the Japanese teams prepared two entirely different time plans for
setting up the same project in India. One of the major points of contention, fairly simple as it
may seem, was the time it would take to bring component parts from the South to the North
of India, a journey of over 2,000 km. The Indian team gave ten days, and the Japanese five in
their respective estimates. This variance applied to most other activities in the project plan as
well, with the overall project estimate varying from 18 to 30 months depending on who one
asked. The matter was resolved amicably at 26 months after both teams were asked to
experience the 2,000 km journey by traveling together.
After this episode, which is described below in greater detail, all other issues of contention
fell into place, as both teams made it a point to experience all areas of difference together and
develop countermeasures for each activity. A joint team made the presentation to the Indo-
Japanese Board. The joint venture went on to become a huge success. What brought this about
was the underlying and unwritten understanding of one another’s point of view, taken in the
context of culture.
India is a land of 1.2 billion people, with 22 official languages, 1,596 dialects, and seven
major religions; where chaos seems the only order; where the day after tomorrow could mean
any day after two; where people are comfortable with making improvisations based on
context on a continual basis to accommodate the constantly changing plans of others. And
yet, there are world class companies, extremely successful, operating in India.
So, let’s return to the 2,000 km journey from the South to the North. On the very first day
we had to postpone our departure because of a “bandh” (a general strike) called by a Southern
state to protest a river water-sharing dispute that went back over five decades. We set-off on
the second day and had several interesting experiences together. Road signage in India is

21
difficult to come by, so one often had to stop to ask local passersby for directions. The
directions are “approximate”—turn right from the yellow house with the clothes line, left from
the small biscuit shop, etc. Also, since we in India often speak only three languages each, and
there is often no overlap among the 22 languages officially recognized, communication cannot
be taken for granted.
We passed trucks with broken axles, not because their quality was substandard, but because
overloading was the norm and not the exception. We were invited into homes for meals,
though we were complete strangers—and of course we accepted some invitations. Food was
often served on banana leaves or in “thaalis” (a round steel tray). The entire meal was served
simultaneously, including the dessert. Our Japanese guests noticed that the food was mixed by
the person eating it in the proportion that he or she liked it best. It was therefore
“approximate.” In contrast, in the West and even in Japan, precise quantities are served, and
those by course.
Our Japanese colleagues, being used to “precision, tight tolerances, and just-in-time,” began
to understand that at least within the new joint venture and its supply chain, an enormous
cultural change from “approximation” to “precision” would be required. It was this
understanding that was the critical factor that laid the foundation for a successful joint
venture. Needless to mention, our Japanese colleagues made extensive notes at every stage.
I first had the privilege of meeting Professor Moran in India and later in the UK during
modules he was conducting for our future global leadership team based on the title of his
book, Managing Cultural Differences. In a program comprising seven distinct modules
covering finance, strategy, operation, etc., his module was rated as the very best—the most
appropriate and relevant, and he personally as the most articulate professor—by the
participants, our future leaders representing Brazil, China, India, the UK, and the USA. It
enabled the participants to better understand one another, especially in a cultural context, and
therefore arrive at synergistic decisions during these discussions. The unspoken “whys” of the
opinions of one another were much better appreciated. Most participants recommended that
this be the very first module in the future!
Most global managers, aspiring or otherwise, are challenged by a highly dynamic
environment even in the land of their own birth, which only becomes more complex as they
step onto the shores of others. It is how they are able to empower themselves to leverage the
power of culture to maximize organizational performance in a cross-cultural environment that
will determine their ultimate success. To my mind, it is not humanly possible or even
necessary to be an expert in all cultures, but it is important for us to develop a local cultural
sensitivity within an overall global context.
In its tenth edition, the authors maintain the theme that our global world is changing
(witness the Brexit vote in the UK and the 2016 presidential win of Mr. Trump in the USA,
among many other world changes). As a result, complex and sophisticated skills are
increasingly necessary for today’s global leaders, managers, and travelers.
There are two new chapters in the tenth edition. Chapter 7, “Lessons for global leaders,”
focuses not on theories of global leadership, but on some things we know about the behaviors
of skilled global leaders. Chapter 9, “Global business ethics,” suggests ways to build trust and
relationships across cultures. Other chapters have been reorganized and there is much new
material. New material and sections have been added in Chapters 11–18. Each chapter begins

22
with a short list of learning objectives for the reader.
I would like to thank Professors Moran and Abramson for penning this edition, with special
thanks to Professor Moran for asking me to write this Foreword to the tenth edition.
Managing Cultural Differences is a must-learn and must-read text for every business
school; in fact, for every aspiring and practicing business leader. This edition improves an
already classic business text and is perhaps the most comprehensive, easy to relate to, and
therefore to understand, that I have had the pleasure of reading.
I am sure all readers will benefit immensely from it, as I have.
Vipin Sondhi
MD and CEO
JCB India Limited
March 14, 2017

23
Preface

Since the ninth edition of Managing Cultural Differences was published there have been many
changes in our global world. Some of these changes are political, some are wars that continue
to destroy and kill innocent people, and all have significant economic consequences that
impact the quality of life of those most needing help.
Many copies of Managing Cultural Differences have been sold in the United Kingdom and
the United States, where Brexit narrowly passed in 2016 and Donald Trump was elected
president of the United States. In both cases the winners argued that economic nationalism
would make Britain and the United States better off. We don’t believe this will happen under
Trump or May, but we believe trading between nations will continue and a wall will create
many more problems than it was intended to solve.
We believe, more than ever, that anyone working in our diverse world needs more
sophisticated and common-sense leadership skills. We need individuals who are curious, open,
and who don’t believe the world gets better when our side wins all the time. Racism, sexism,
xenophobia, and other -isms haven’t worked for any country in the past and they won’t work
now.
In the tenth edition of Managing Cultural Differences we have kept these three words but
added a subtitle. The title is now Managing Cultural Differences: Global Leadership for the
21st Century. There are two new chapters, one on Global Ethics and another on Behaviors of
Skillful Leaders. We have also kept a lot of the old “good stuff” and we continue to strive for a
balance between theory and practice.
We especially strive to write so that readers will remember a few points from every chapter
and use some of what they remember, and hope in so doing they will add value to their
personal and professional lives.
Neil Abramson, Vancouver, British Columbia, Canada
Robert Moran, Paradise Valley, Arizona, United States

24
Acknowledgments

This is the tenth edition of Managing Cultural Differences. Over the years many people have
contributed in many ways to making this book what it is today. We thank you all.
Again we acknowledge Vipin Sondhi, the Managing Director and CEO of JCB India, for
writing the Foreword. He is an executive of exceptional skill.
Natalie Tomlinson is wonderful to work with. As a small thanks to her we were able to
recommend some special restaurants in Naples prior to her first visit. Although this is not part
of our professional vocabulary usage, we both think you are “cool” Natalie.
Georgia Lessard is always easy to work with and Managing Cultural Differences, tenth
edition, was no exception.
We acknowledge and thank Haruyo Abramson who solved complex formatting difficulties.
We also thank the many professors, reviewers, and readers of previous editions who gave
us feedback and suggestions. We incorporated many in this edition.

25
1
Global Leadership, Culture, and a Changing
World

We begin Chapter 1 and Managing Cultural Differences, tenth edition, with six actual
situations involving managing cultural differences and global leadership skills.
After reading the first three chapters of the book, all should have a good
understanding of the basis of the misunderstandings and be able to identify alternative
responses that might have good results.
There is no perfect “road map” for success in a global world. There are, however,
“global road mapping skills.”

26
 Situation 1

Question from a European to a Chinese HR director concerning attendance at a

company-sponsored course:
Do you think Mr. Zhao will be able to come to the course next week, as I would like to make hotel reservations
for him and the hotel is quite full?

Answer:
It is possible he may have to attend a meeting in Shanghai.

Follow-up question two days later, before the course begins, sent by email:
I am following up our earlier conversation and am wondering if Mr. Zhao will be attending the course?

Learning Objectives

After reading and studying concepts/examples and illustrations in Chapter 1, readers

should:

1. Reflect on any prejudices or biases they might hold about other peoples or
cultures.
2. Be convinced that “culture counts” more than ever in today’s global world.
3. Understand the importance of learning the national character and management
philosophies of their global counterparts.
4. Be aware of some of their global skills.
5. Begin to see events and issues from their own and from the other’s perspective.

Answer by email:
As I told you previously, he will NOT attend.

Result: A significant misunderstanding between the Chinese HR director and the Westerner.
The HR director ignored the Westerner at work for several days.

Situation 2

27
A few days after Michael had arrived in Japan, he was reading and replying to emails received
from his new Japanese colleagues. He was willing to support them as much as possible, and
was keen to be accepted by the new organization as the new boss. He, therefore, carefully
worded his email replies. He also tried to provide advice and guidance whenever he felt it
could be useful for his Japanese colleagues.
One email he had received had important documents attached and had been widely
distributed by his colleague. Unfortunately, a draft had not been shared with him prior to
distribution. Both the mail text and the document had been prepared very carefully by his
Japanese colleagues, and the content was almost perfect. Overall, Michael was very pleased.
However, Michael decided that he should provide some feedback to his Japanese colleagues.
He wanted to ensure that in the future he would have the chance to review such important
documents before they were sent out. So he added his reply:
The documentation you had put together and sent out was very well done. I thank you very much for your hard work and
would kindly ask you to consider my thoughts when preparing these kinds of documents. Perhaps, in the future, you can
share the draft version with me prior to sending it out.
Best regards, Michael

After his Japanese colleagues received his reply, they got together to discuss corrective actions
as they felt very committed to meeting all the expectations of their new boss. Thinking he was
very angry, they tried to find out what went wrong on their side, how to then reply to their
boss, and how to establish a special review process. But even after longer discussions, they
found no serious mistakes, and everybody was unsure about how to proceed.

Situation 3

Our legal person is very intelligent and an excellent negotiator. She was born in Germany but
has spent many years in the US and Canada. One would think she was an American by the
way she presents herself and by her accent. During negotiations, I have noticed that she
speaks very quickly, with never-ending sentences. I can only imagine what the Chinese
thought. I believe they were not following her and were getting a little frustrated. Also, the
lawyer was not patient. She would not let them question or make any comments.

Situation 4

Guus Hiddink, the coach of the South Korean soccer team in the 2002 World Soccer Games
held in South Korea and Japan, experienced the following:
He learned that the younger players on the team tended to pass to the more senior “strikers” in consistent patterns.
Recognizing this as a “problem,” he brought the team together, told them that for the honor of their country and in order
to do well in the upcoming games, they had to pass to the person who seemed to be in the best position to score. The team
agreed.

However, there was little change in the pattern of passing after his “pep talk.”

28
Situation 5

As an American, my first Christmas party in Switzerland was an enlightening experience. I

had only been in the country for about three months and was just getting to know a few of
my co-workers. We were all sitting at the traditional long Swiss-style tables, and our table had
about 20 people. This included our “big” boss, a few of his direct reporters, and my peers and
me. After dinner and a few glasses of wine, the conversation started to get very
“questionable.” So I just sat back to see what was going to happen and how everyone else was
going to take this.
The situation was that the American “big boss” and a few of his direct reporters (Spanish)
began saying some things about a female (American) colleague’s body directly to her. I said
“Wow” to myself and watched the American woman become increasingly uncomfortable, but
no one challenged any comments.

Situation 6

Barbara had a PhD in chemistry, as did her boss with whom she had a good working
relationship. Barbara was frustrated because her boss had never given her any positive
feedback on her work. The only time any feedback was offered was when Barbara made a
mistake and, in this case, the feedback was negative and strong.
The world has changed, and so must people living in this changed global world. But not
everything has changed.
The premise of this book is simple: just as no two individuals are exactly the same, neither
are two nations of societies. However, the people in the same culture share certain things in
common that are not necessarily shared by people of another culture. This is the reality.
Our goal is to help readers think or rethink many aspects related to the attitudes and skills
we all need to survive and thrive in today’s global environment. Or, to write it more simply:
to learn to live and work with differences. Hence, the title of our book, Managing Cultural
Differences.
In the early stages of socialization, the parents or caregivers of children from all cultures
have a major influence on how their children behave and their values and attitudes. The
parental influence example illustrates this point.1

An Example of Parental Influence

When I began delivering executive seminars for a particular large global company about
eight years ago with a professional colleague, his presentations to executives were good
but not great, according to the ratings of attendees. Feedback was that they were a little
too academic in contrast with a different style that included “stories” to illustrate
academic points. Over the years, he has included more and more stories to illustrate
what he wants participants to remember and use.
I suspect some of his stories have fabricated elements, but he recently told the
following, which illustrated to me the influence of parents on children:

29
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