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Cross-Cultural Management look around the key issues in one of the most testing and captivating areas of organizational life, and enables you to sharpen your insights and practical skills. It offers a broad view of traditional and modern thinking on culture and management, and persuades you to apply theories in practice.
Ms. K. P. Kanchana
Preface Change is permanent and is the need of the time. There is a drastic change in the market and in the styles of doing business. The importance of cross cultural management lies here where it is providing global outlook to the business across the global, making it a global village, providing diversity and speeding the actions taken to meet the competition and the leadership styles to be implemented and major cross-cultural issues and problems that managers face . The economic, political and social reforms have brought rapid changes across the countries and brought liberalization which is changing the entire international business environment. Cross Cultural Management creates an enduring awareness at all management levels of the need to be a more global organization. It corroborate the business need for developing and implementing a global strategy to compete effectively and enhance the value provided to key customers The efficiency of cross cultural management basically depends upon the cultural background, cross cultural experiences, languages and personal experiences which in turn gives an insight on the information, technology and idea developed in one country or company can be implemented anywhere else in the world. To improve crosscultural management in the corporate should focus on building the capabilities and beliefs of individual employees. Effective management of national and international boundaries is significant for the success of business and diversity of workforce within today‘s organizations. An intense consciousness and a high degree of proficiency in cross-cultural management are the key to the success of the leaders. Cross-Cultural Management look around the key issues in one of the most testing and captivating areas of organizational life, and enables you to sharpen your insights and practical skills. It offers a broad view of traditional and modern thinking on culture and management, and persuades you to apply theories in practice. The focus of this book is practical that will help you to appreciate the true significance of cross cultural management. The various concepts such as Cross-Cultural Concepts, Leadership, Communication, Negotiation, Different Management Styles of Different Countries etc will give you the outlook as how to carry out business and take is globally. Case Studies will help you to see the real problem and how to implement theories in real environment. The purpose of the course is not country specific but deals with the people of different cultures in work settings. Thanks are due to our Director General Dr. Gurinder Singh who constantly inspired and guided me in preparing this study material. I would also like to thanks Mr. Rajan Bhandari for giving necessary guidance.
INDEXCHAPTER 1 1.1 1.11 1.2 1.20 1.21 CULTURE
INTRODUCTION TO CULTURE LAYERS OF CULTURE CHARACTERISTICS OF CULTURE EFFECTIVENESS OF CROSS CULTURAL MANAGEMENT THE CROSS CULTURALLY EFFECTIVE PERSON
1.3 COMPARATIVE MANAGEMENT 1.4 1.42 IMPACT OF CULTURE ON BUSINESS CULTURAL DIMENSIONS IMPACT ON MANAGEMENT
1.43 CULTURAL DIMENSION IMPACT ON BUSINESS STRATEGY 1.44 CULTURAL DIMENSION IMPACT ON BUSINESS STRATEGY 1.45 1.46 1.47 CULTURAL DIMENSION IMPACT ON NEGOTIATION CULTURAL DIMENSION IMPACT ON DECISION MAKING CULTURAL DIMENSION IMPACT ON LEADERSHIP CROSS CULTURAL LEADERSHIP
CHAPTER 2 2.1 2.2 2.3 LEADERSHIP
APPROACHES TO LEADERSHIP THE OHIO STATE UNIVERSITY STUDIES CROSS CULTURAL NEGOTIATION
CHAPTER 3 3.1 3.2
CROSS CULTURAL NEGOTIATIONS IMPORTANCE OF NEGOTIATIONS
3.21 3.3 3.4 3.41 3.42
CULTURAL INFLUENCES IN NEGOTIATIONS HOW CULTURE IMPACTS NEGOTIATION DIMENSIONS OF CULTURE VARIABLES INFLUENCING CROSS-CULTURAL NEGOTIATIONS INTERCULTURAL IMPLICATIONS OF NEGOTIATIONS
CHAPTER 4 4.1 4.11 4.12 4.13 4.14 4.2 4.21 4.22 4.23 4.24
ROLE OF ETHICS IN CROSS CULTURAL MANAGEMENT
HOFSTEDE‘S VALUE DIMENSIONS POWER DISTANCE UNCERTAINTY AVOIDANCE INDIVIDUALISM MASCULINITY TROMPENAAR‘S VALUE DIMENSIONS UNIVERSALISM VERSUS PARTICULARISM NEUTRAL VERSUS AFFECTIVE SPECIFIC VERSUS DIFFUSE ACHIEVEMENT VERSUS ASCRIPTION
CHAPTER 5 5.1 5.11 5.12
MODELS OF CROSS CULTURAL MANAGEMENT
HALL'S CULTURAL FACTORS HIGH CONTEXT HIGH CONTEXT DEPENDS
5.2 5.21 5.3 5.4 5.41 5.42 5.43. 5.44. 5.45 5.46. 5.47 5.48 5.49 5.50 5.51 5.52 5.53 5.6
LOW CONTEXT LOW CONTEXT DEPENDS HIGH-CONTEXT VERSUS LOW-CONTEXT CULTURES TROMPENAARS' CULTURAL FACTORS ACHIEVEMENT VS. ASCRIPTION INDIVIDUALISM VS. COMMUNITARIANISM INTERNAL VS. EXTERNAL NEUTRAL VS. EMOTIONAL SPECIFIC VS. DIFFUSE SEQUENCE VS. SYNCHRONIZATION UNIVERSALISM VS. PARTICULARISM GEERT HOFSTEDE‘S CULTURAL FACTOR POWER DISTANCE (PD): INDIVIDUALISM VS. COLLECTIVISM (IC) MASCULINITY VS. FEMININITY (MAS) UNCERTAINTY AVOIDANCE (UA) LONG- VS. SHORT-TERM TIME ORIENTATION (LTO) KLUCKHOHN AND STRODTBECK
CHAPTER 6 6.1 6.2 6.3
MANANGEMNT STYLE OF UNITED STATES OF AMERICA
SYMBOLISM URBANISM, ARCHITECTURE, AND THE USE OF SPACE FOOD AND ECONOMY
6.4 6.5 6.6 6.7 6.8 6.9 6.70 6.71 6.72 6.73 6.74 6.75
SOCIAL STRATIFICATION POLITICAL LIFE GENDER ROLES AND STATUS MARRIAGE AND FAMILY ETIQUETTE APPEARNCE BEHAVIOR COMMUNICATIONS BUSINESS HOURS PUNCTUALITY ETIQUETTES OF GIFT GIVING ETIQUETTES OF DINING
CHAPTER 7 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10
JAPANESE STYLE OF MANAGEMENT
ABOUT JAPAN JAPANESE LANGUAGE JAPANESE SOCIETY & CULTURE HISTORY OF JAPANESE-STYLE MANAGEMENT BUSINESS MANAGEMENT STYLE MEETING ETIQUETTE GIFT GIVING ETIQUETTE DINING ETIQUETTE TABLE MANNERS DEALING WITH THE FOREIGNERS
KEY CONCEPTS AND VALUES .8 GERMAN STYLE OF MANAGEMENT BUSINESS CULTURE IN GERMANY MAKING APPOINTMENTS BUSINESS DRESS COMMUNICATION SELECTING AND PRESENTING BUSINESS GIFT GERMAN NEGOTIATION STYLE GERMAN MEETINGS GERMANS ACCEPTABLE PUBLIC CONDUCT CASE STUDY: IBM GERMANY BRITISH STYLE OF MANAGEMENT CHAPTER 9 9.4 8.3 8.2 8.1 9.15 ASSOCIATIONS & COMMUNICATION BUSINESS MEETING ETIQUETTE BUSINESS NEGOTIATION DRESS ETIQUETTE BUSINESS CARDS 7.3 9.11 7.6 8.13 7.16 JAPANESE BUSINESS CULTURE: SOICHIRO HONDA.14 7.5 8. MANAGER AND ENTREPRENEUR CHAPTER 8 8.0 8.12 7.7.2 9.1 8.4 APPEARANCE BEHAVIOR COMMUNICATIONS BRITISH CULTURE .7 8.
1 10.WORKING IN THE FRANCE 10.3 10.11 FRENCH CULTURE .5 9.15 ETIQUETTE & CUSTOMS 10.6 10.13 FRANCE BUSINESS PART 2 .17 GEERT HOFSTEDE ANALYSIS .2 10.6 9.9.16 BUSINESS NEGOTIATION 10.12 FRANCE BUSINESS PART 1 .7 9.KEY CONCEPTS AND VALUES 10.4 10.DOING BUSINESS IN THE UK BRITISH BUSINESS ETIQUETTE (DO'S AND DON'TS) GEERT HOFSTEDE ANALYSIS OTHER FINDINGS CHAPTER 10 FRENCH STYLE OF MANAGEMENT 10.5 10.14 FRENCH SOCIETY & CULTURE 10.9 BEING A MANAGER IN FRANCE THE ROLE OF A MANAGER APPROACH TO CHANGE APPROACH TO TIME AND PRIORITIES DECISION MAKING BOSS OR TEAM PLAYER COMMUNICATION AND NEGOTIATION STYLES APPEARANCE BEHAVIOR 10.8 10.7 10.DOING BUSINESS IN FRANCE 10.9 UK BUSINESS PART 1 .8 9.WORKING IN THE UK UK BUSINESS PART 2 .10 COMMUNICATIONS 10.
CHAPTER 11 LATIN AMERICA 11. SUBCONTRACTING AND GEOGRAPHICAL MOBILITY .2 11.1 11.3 THE COMPANY IS LIKE A FAMILY THE IMPORTANCE OF SOCIAL STATUS TEAMWORK.
" Culture consists of patterns. For example Italian. be considered as products of action. dialect or language. Hindu. In most cases. art.1 Layers of Culture Basically there are three layers of culture which are formed as a part of our learning and perceptions. G." Hofstede. (1952). In diverse societies people come from different parts of the world and they preserve much of their original cultural traditions. way to live. (1984) in his book National cultures and corporate cultures has defined culture as: "Culture is the collective programming of the mind which distinguishes the members of one category of people from another. and other cultural traits that come from their common ancestral background and experience. Chinese. Samoan. This is generally in case of . and on the other as conditioning elements of further action.. and Mexican Americans who share a common identity.e. As the cultural differences between members of a subculture and the dominant national culture smudge and in due course disappear. language. Buddhist etc. constituting the distinctive achievements of human groups. Muslim. on the one hand. faith. 1st Layer: It is the apparent cultural conduct that distinguishes one society specific form the other society. The development of culture depends on beliefs. traditions. Germans. explicit and implicit. Human intelligence reacted stronger to experiences and needs that widened cultural status. economy etc. For instance the initial stages of humans behavior were similar to other animals lived in groups. Christian. The growth of culture had given identity to the societies which were named. customs and beliefs that set each of these natives different from the others. 1. of and for behavior acquired and transmitted by symbols." (p. 51). This results to making them a part of an identifiable subculture in their new society which set them apart from the rest of the society. customs. including their embodiments in artifacts. food tradition.CHAPTER 1 CULTURE 1. It is the innate behavior which varies from individual to individual and broadens when the individual lives in family. historically derived and selected) ideas and especially their attached values. Jewish. culture systems may. The evolution of culture is based on intelligence. 2nd Layer: It is the part of our identity and is called as Subculture. practices. food habits. those who share your culture do so because they acquired it as they were raised by parents and other family members who have it. the essential core of culture consists of traditional (i. African Americans. the subculture ceases to exist except as a group of people who claim a common ancestry. According to Kroeber & Kluckhohn. or Japanese have refer to the shared language. intelligence. Each society has norms to follow by individuals in order to retain society strong and intact.1 Introduction to Culture Culture is the inevitable part of every living things whether we talk of human beings or of animals. reaction to experiences and needs of the individual. For examples the easily identifiable subcultures in the United States which include ethnic groups such as Vietnamese Americans.
Raising children in some sort of family setting Having a sexual division of labour (e. uncle. 11. teenager. 7. An apparent example we have is western culture spread in most part of the world. people in deaf subcultures frequently use their hands to communicate with sign language instead of verbal language. 3rd Layer: This layer of culture consists of learned behaviour patterns that are shared by all of civilization wherever they live in the world.. For instance. men's work versus women's work) Having a concept of privacy Having rules to regulate sexual behaviour Distinguishing between good and bad behaviour Having some sort of body ornamentation Making jokes and playing games Having art Having some sort of leadership roles for the implementation of community decisions While all cultures have possibly many other universal traits. wife.g. mother. man) 3.. 1. sign languages have grammatical rules just as verbal ones do. Using age and gender to classify people (e. 6. Most of them identify themselves as Americans first. it is neither fixed nor static A continuous and cumulative process Learned and shared by a people .the German Americans and Irish Americans in the United States today. They also see themselves as being part of the cultural mainstream of the nation. 12. This Universal Cultural traits include: 1. However. Differences of cultures of two societies when clash leads to war and stronger one overpowers the other to establish own culture that way it broadens its culture. different cultures have developed their own specific ways of carrying out or expressing them. Classifying people based on marriage and descent relationships and having kinship terms to refer to them (e..g. Communicating with a verbal language consisting of a limited set of sounds and grammatical rules for constructing sentences 2. senior citizen. 10. 9. 8. 5.2 Characteristics of Culture Culture is dynamic. woman.g. cousin) 4.
In this perspective. Culture. the statistical significance of this relationship is very weak (e. and uniformity of practices (e. 1997). arguing either that culture matters. Kirkman and Shapiro. CCM is inevitable. Cross Cultural Management (CCM) is ―the capability to manage different attitudes. 2001. 2006). clashes with the value held by the Japanese people who believe that wisdom come with age and experience and so elders gain respect due to their age. one approach emphasises the importance of culture in cross-cultural interactions. religion and habits to achieve best business results.‖ (Mead. as Evans and Doz found that ―research on multinational enterprises suggests that their future competitive advantage may not reside in their strategy or structure.‖ (Hofstede. and values are among the building blocks of culture. other factors. Maznevski and Chudoba. such as perceptions. beliefs and attitudes can differ from each other. Kirkman et al.‖ (Evans and Doz. 2001). However. behaviour and beliefs (Harrison and Huntington. House et al. 1994:5). attitudes and beliefs. or that culture is largely overruled by other conditions. Cross Cultural Management According to Bobst. 1992:87).g. 2000. culture provides a good first impression of that person (Maznevski and Peterson. In contrast.. in this sense. ―culture is the collective programming of the mind which distinguishes the member of one human group from another. the more thoughtfully they can relate it not only to their own but also to understand and tolerate others culture. culture matters because individuals have different values and different preferences with regard to management and leadership. and amongst people themselves.g. Hofstede. Hofstede. Hofstede defined culture as followed. Given little or no other information about an individual‘s values and behaviour. Mead elaborated that culture is a sample of different values. such as personality.. Cross Cultural Management is seen as a management style that can give quality to each division of an organization that negotiates internationally. 1997:190-195). believes that wisdom come with not only age and experience but also with personal development and education. A belief is a strong thought of something that ought to be right.Behavior and values exhibited by a people Symbolically represented through language and interactions That which guides people in their thinking. includes systems of values. tolerating differences as far as possible. strong leadership. Research in the field of cross-cultural management originally evolved around two general lines of inquiry. but in their organizational capabilities to cope with the multidimensional and complex demands of a global business. and recognizing their priorities when developing shared priorities. 2004).g. 2001. the other approach takes the perspective that culture is largely overruled by other conditions. 2004). nor in their technologies or products.. Thus. 1984:21). Funakawa approached CCM in a more general way. culture.‖ (Questionnaire. Americans. Cultural assumptions and values describe the nature of relationships between people and their environment.. that are related to their cultural background (see e. Since Kluckhohn and Strodtbeck‘s seminal work (1961). Research has shown that national culture influences an individual‘s perceptions. Culture is an aspect which is of much importance and cannot be ignored by the industries when they are talking of globalization and international competition. Mead with his indepth study on the subject defined Cross Cultural Management as ―…working with members of the other culture. This line of research argues that even though culture does influence Individual outcomes. in a sense of how people and organizations focus on ‗transcending‘ cultural differences at a global situation (Funakawa. The more organizations recognize its importance and existence. 2000) are identified as predictors that overrule the weak feeling and acting . values.
20 Effectiveness of Cross Cultural Management We've cultured to live and work in a group of people who have influenced us. economic. strong situations are characterized by suppressing the expression of individual differences. there must be conditions under which specific cultural differences influence cross-cultural interactions. and ‗when‘ culture influences cross-cultural interactions is still lacking in the academic. However. In social psychology research. relationships upon which the success of projects rest. the stage of group development. leading towards identical expectations regarding the appropriate response. Consequently. to the best of our knowledge there has been little research that enables us to understand when the impact of culture on interactions is reduced. cultures do not operate as uncorrelated independent variables. From a globalize business environment perspective. ‗how‘. political. as well as the corporate world. . one would expect that most people would be serious while attending a funeral. even though they are often treated like this when studying cross-cultural interactions (Bird and Stevens. the person has considerable discretion as to how to respond to the circumstances. such as different cultural backgrounds. and situational characteristics that serve to moderate the influence of national culture on individual perceptions. This elucidation can be quite misleading. However. it has long been recognized that the strength of situations has an important influence on understanding and predicting behavior Mischel. In weak situations. Thus. and technical changes in the 21st century create cultural changes across the world. This leads to the following research question. cause irreparable damage to relationships. However. When living and working in foreign destinations. our spontaneous effect is to understand local ways of being through our own cultural references. beliefs and behaviour. p. Mischel (1977) classifies situations along a continuum from strong to weak. i. moderating conditions include the degree to which an individual identifies with the culture. Mischel‘s (1977) concept of ―weak‖ situations gives a deeper understanding of such conditions. a precise and comprehensive understanding of the questions ‗if‘.e.367) argue that cultural differences might be reduced ―if mental processes associated with national culture are relatively fluid. (2005. the questions of if and how culture matters are influenced by the situation per se. as well as several situational conditions. Weak situations are characterized by having highly ambiguous behavioral cues providing few constraints on behavior. 2003). group. 2003). In negotiation simulations across various countries. Leung et al. (forthcoming) are among the first to identify a set of conditions. The new view represents a dynamic view of culture. operating across three different categories – individual.403). and hence do not induce uniform expectations. Strong situations are characterized by having salient behavioral cues. On the other hand. attitudes. which overrule the diverse cultural backgrounds of the individuals involved. it is needed to identify ‗weak situations‘ determining cross-cultural interactions. everyone is interpreting the circumstances similarly. Globalization is leading to significant cultural cross-pollination. 1. norms. 2003. Thus. given the fact that many researchers still find that culture has an effect. and can be changed and sustained by appropriate situational factors‖. For example. weak situations provide the opportunity for individual differences. Thus. where people with potentially very different expectations meet. and behaviour. We argue that to understand when and how culture influences interactions. Following Hofstede (2001) culture has been seen as a very stable concept that changes quite slowly. one could assume that cultural differences are suppressed as norms and values of individuals in the business community become more homogenous (Bird and Stevens. leading towards the emergence of a globalised business environment (Bird and Stevens. such as technological uncertainty. to play a greater role in determining behavior. 1977). Among others. p. and in certain cases. Gibson et al. This can be the case in cross-cultural situations.effect of culture. Bird (2002) shows that within the world business community an identifiable and homogenous group is emerging that shares a common set of values.
and this has been defined as dealing with―differences and similarities of managerial systems and practices in different cultural settings‖ (definition taken from the Anderson School UCLA Doctoral program course syllabus for International Business and Comparative Management www. Economic. Similarly. The capacity to adapt his/her professional skills (both technical and managerial) to fit local conditions and constraints The capacity to adjust personally so that s/he is content and generally at ease in the host culture 1. or department is Comparative Management. 1. (All Certified Management Consultants must be competent in PESTLE so as to appreciate the requirements of different geographical and cultural settings) The best management practices have some degree of closeness to the emerging world trends in management. Comparative management entails leaders to understand the Political. In their study of management practices of best-run American companies Peters and Waterman (1982) observed that.3 Comparative Management The study of management or business practice simultaneously in two or more different cultures.These companies had believed that learning from the customer and exceeding their expectations were critical to organizational success. these companies also developed a vast "extended family" atmosphere at work by taking care of the people and developing their capabilities. being close to the customer and achieving productivity through people were among the key attributes of excellent American companies. it continues to be the subject of considerable debate. The leaders and the managers of the organizations must make a conclusion as how things happen. . often taught in business schools alongside International Business. Although the concept of comparative management evolved in the late sixties. countries. the Consulting Editor of European Management Perspectives comparative management is use to capture how managers get to steal. where and why it takes place. There is also an academic field of study called comparative management. ). According to Barry Curnow. (PESTLE). Social. Technological and Ecological context in which organizations maneuver.The aim of intercultural effectiveness is to minimize the risk of failure and develop both the individual's and the organization's chances of success in an international environment. borrow and use ideas. The Cross Culturally effective person has three main attributes: 1 2 3 An ability to communicate with people of another culture in a way that they earn their respect and trust. companies.21 The Cross Culturally Effective Person Cross Culturally effective person is someone who is able to live happily and work productively in another culture. beg. It analyzes the degree to which management principles of one country are applicable to the another.
organization culture magnifies cross-cultural differences. who to the French is considered an 'expert'. Depending upon the organization. and mergers & acquisitions. The American manager. of the organization. and sometimes even determines policy. According to Lauren's survey. style. may be quite ineffective as a 'problem solver' for the French staff may consider him/her incompetent. 1. Issue 2. Business has so rapidly developed globally. to be successful over the long term in the business a strategy has to be sound. culture influences. one might find that the best practices of management identified during the study of a sample of successful trading companies in Sri Lanka have some resemblance to emerging global trends in management. The corporate culture and its norms override the national culture's norms. and have similar values & norms. On an organizational level. understand the same cues. one of which was SmithKline Beecham. cultural differences in organizations dealing internationally have their greatest impact mainly in motivation. negotiations. Even in the area of organization and people interface SmithKline Beecham had precise ways of doing things referred to as "the Simply Better way ". However. In management.48 Cultural dimension impact on business strategy According to Mark Mallinger and Gerry Rossy research published in Graziadio Business Report. Thus. 10.For purposes of comparison the research team studied the management practices of a few multinational subsidiaries in Sri Lanka. Despite the system orientation associated with the MNC culture. In fact.41 Cultural dimensions impact on management Gale Prawda member of several philosophical practitioners associations in the US. whereas. and France and an active member of L'école de Daseinanalyze said that Culture and Business practices are in each other's pocket. the French manager managing an American organization might be considered too directive in his response to staff's questions. decision-making. the role of a manager to Americans is considered a 'problem solver' as opposed to his/her French counterpart. 2007. The management practices adopted by SmithKline Beecham were found to be highly formalized. a subsidiary of a British Pharmaceutical multinational which was in partnership with a Sri Lankan company.4 Impact of culture on Business 1. the response to operating globally varies from : Ethnocentric approach: our way is the best way Parochial ―: our way is the only way Synergetic ―: managing with diversity Excluding the synergetic approach (which is the most uncommon of the three). teamwork. culture influences the structures as well as the behavior of the different stakeholders. Thus. management is no longer restricted to the domestic territory. SmithKline Beecham promoted relationships with their local distributor network to a high degree. structure. When managing a company in a domestic operation with a homogeneous culture everyone seems to speak the same language. . but has gone beyond national borders and constantly confronts cultural diversity. the corporate culture doesn't usually take into account the national culture its operating in. in a French subsidiary. 1. The company also adopted a policy of taking care of its people and invested about one million rupees annually in developing the core-skills of the employees. rather than minimizing them. etc. UK. this universal view of a corporate culture does not erase cultural influences. Jay Barney in describing his resource-based view of the firm identifies four requirements for defensibility: Value (in the eyes of the customer). Vol. Rareness.
being good or even great the execution of the strategy is no longer enough. Binnendijk 1987. and internal management philosophy. and .for example an executive from Texas and a manager from Japan -.that binds a group of people together and gives them a distinct identity as a community. Culture can therefore be seen as a language.‖ Many organizations develop internal organization culture that are unique and support their products. sits down to negotiate a business deal with a manager from a Houston company. 8 agreement building process (bottom up or top down?). Such a strong and targeted organization culture takes time to develop and provides customers with a valuable and difficult to copy experience. each of which forms a continuum between two poles. and promotion. It is important to erect barriers around its competitive space with a unique fifth P—―culture. If the organizations what to keep it sustained for the long run and be in competition they should develop a culture in which customers are integral part of business. It is always more complicated for competitors to imitate who you are than what you do. negotiating team organization (one leader or consensus?). styles of communication (direct or indirect?). 4. In today‘s global marketplace with its rapid flow of information. unique. So when an executive from a corporation in Dallas. emotionalism (high or low?).g. and interesting business will be able to differentiate themselves from their closest competitors. (Hall 1959) Culture also serves as a kind of glue -. 9. these conditions are increasingly difficult to achieve through the traditional four P‘s of marketing—product. they usually do not share a common pool of information and assumptions to interpret each others' statements. price. Weiss 1994. 3. (e. (Salacuse 1991) identified ten factors that have an impact on the negotiating process and are influenced by a person's culture. beliefs and values of a given community. norms.49 Cultural dimension impact on Negotiation The impact of culture on the negotiating process has intrigued both scholars and practitioners. 1988).meet for the first time. J. Fisher 1980. agreement form (specific or general?). personal styles (formal or informal?). and intentions. Non-substitutability. consisted of the following: 1. attitudes to the negotiating process (win/win or win/lose?). Jeswald W. 5. The ten factors. 7. It may also give them a sense that they are a community different and separate from other communities. al. a "silent language" which the parties need in addition to the language they are speaking if they are truly to communicate and arrive at a genuine understanding. What Trader Joe‘s (The Trader Joe‘s Experience) teaches us is that a unique organization culture that is carefully aligned with both its own competitive business strategy and with the values of the customers can provide an effective defence against incipient competitors. negotiating goals (contract or relationship?). et. Campbell et al. 1988. By delivering innovative. 1. time sensitivity (high or low?). Graham. 2. But when persons from two different cultures-.a social adhesive -. the two negotiators rely on their common culture to interpret each other's statements and actions.Inimitability. Persons from the particular community use the elements of their culture to interpret their surroundings and guide their interactions with other persons. L. service. culture is defined as the socially transmitted behavior patterns. As the competition is intense for every business. Salacuse said that for the impact of culture on negotiation. place. 6. actions. Faure and Sjostedt 1993. Texas.
To cite an illustrative example. but also to the relationships. FT/Prentice Hall. W. International Business. and Pustay. Rymes. (referred to as H) Griffin. Here he argues that behaviour must be understood in terms of genotypes and phenotypes: the core intention of an action and the manner in which that intention is expressed in a particular cultural context. processes and actions which lie behind these dimensions. the distinction between general measures of leader style and the culturally-specific ones is explored in Misumi's (1985) theory. p. Edward T. W. loyalty and commitment. communication. (2002). Hart. Internationalization of universities: A university culture-based framework. (2003). Everett M. M. 1978. consultation and participation. W. & Yoshitaka Miike (2002). (2003). close attention to time-keeping might be construed in one culture as authoritarian leadership and in another as indicative of strong commitment to the goals of the workgroup. McGraw-Hill. specialization and formalization. 45(1). W. 45(1). understanding and innovative had given rise to effective management practices which are dynamic and adaptable to changing environments. Cultural Self-comprehension of Nations. Higher Education. These relationships and processes are power and authority relationships. 48. C. 1. FT/Prentice Hall. International Business Strategy and Operations. (2005).pdf. 44. ISBN 978-3771103118. and Pustay. C. 4th Edition. 3rd edition.10.50 Cultural dimension impact on Decision Making An understanding of structure. coping with uncertainty and risk-taking. motivation. 142. William B. E. . MacMillan Press Ltd. 2(8. 24. and Springborg. requires reference not only to such dimensions as centralization.ac. Bartell. Internationalization of universities: A university culture-based framework. Higher Education. (2003). International Business: Competing in the Global Marketplace. control and discipline. Rogers. References: Hill. R. 1-5. therefore. 46. Tübingen: Erdmann. interpersonal trust. W. 4th edition. (2008). Thus what emerges broadly from the study is that the ability of the organizations to balance different interests by being flexible.mediacom. Bartell. 1. M. M. coordination and integration. Accessible at http://www. Cambridge University Press. Final Resolution. International Business: A Managerial Perspective. 49.jp/publication/pdf2002/review24/2. M. risk taking (high or low?). 1. (1997). Globalization and the Politics of Development in the Middle East. R. Language Socialization and the Linguistic Anthropology of Education. Keio Communication Review No. Hans Köchler (ed. Springer). R. M.). Hibbert. Griffin.46 Cultural dimension impact on Leadership In the field of cross-cultural study of leadership styles.keio. (2001). Encyclopedia of Language and Education. Henry. Hall and The History of Intercultural Communication: The United States and Japan.
A. 421-422. B.J. Internationalization of universities: A university culture-based framework. Higher Education. Higher Education. . Cameron. (2003). M. 29(4). 48. The networking alliance: A mechanism for the internationalisation of higher education? Managing Education Matters. D. Reforming the Higher Education Curriculum: Internationalizing the Campus. J. 7(2). 46.S. Bartell. Organizational adaptation and higher education. Ellingboe. (1995). M. Journal of Higher Education 55(2). resistance. (2003). 45(1). J. Rudzki. R.S. 199. (1998). and recommendations from a case study at a U. 123. and Elllingboe.Teather.).J (eds. university. 3. Bartell. K. E. in Mestenhauser. Phoenix. B. 45(1). The application of a strategic management model to the internationalization of higher education institutions. Internationalization of universities: A university culture-based framework. AZ: American Council on Education and Oryx Press. Divisional strategies to internationalize a campus portrait: Results. (1984). (2004). Higher Education.
Norwood and Mansfield (1999) found that the differences within Asian and Western cultures led to several problems. Dahles and Wels (2002) observed that one must be able to deal with tensions and conflicts. According to Fellows et al. 1989). Cross-cultural interactions play a significant role in negotiations. 2001. The existing works in construction management . Selmer (2001) suggests that managers with these attributes can be used in a strategic way to develop business across borders.. 2007) and ability to communicate effectively within culturally diverse teams—teams comprising members who come from two or more different cultures. corporates identities. This gave rise to several challenges to be faced by the players. problem solving. growth and development in all situations (Hersey & Blanchard. socio-economic and cultural changes during the last few decades have influenced the internationalization of business activities as being said by Chan et al. According to Fiedler (1967:11).CHAPTER 2 Cross Cultural Leadership The concept of ‗globalization‘ was apparent before this word became popular and the industries in most countries became ripe in cross-border business activities. 1993). Therefore. The best style of leadership is that which varies with the circumstances (Mainiero & Tromley. uncertainties and frustrations while negotiating and managing various national cultures.. satisfaction. Leadership is a crucial component in the success or failure of all organizations. However. decision making. Cultural differences account for the various management and leadership methods which are practiced in different cultures. There have not been many studies of issues related to cross-cultural management in the construction industry. leadership is "an interpersonal relation in which power and influence are unevenly distributed so that one person is able to direct and control actions and behaviors of others to a greater extent than they direct and control his". 1994. Others note that managers of global firms should have the reflexive capability (London and Chen. p. and other aspects of business and technical operations. They highlighted the importance of cultural norms and values as the bases of personal networks. 2006. and business pressures and objectives. research had shown that failure to understand the cultural differences between the participating can result into undesirable circumstances. For example of doing business in China. motivational mechanism and behavioral adaptation‘ (Earley. One of the most significant aspects of leadership is the style of the leader. 929). and maximizes a firm's productivity. it is suggested that international firms should have managers who are culturally intelligent and have the ‗capacity to adapt to varying cultural settings based on the facets of cognitive and meta cognitive processing.
although derived in the context of leadership. family (now in-group) collectivism. individualism (IDV). spirituality or . p. On the other hand. namely. (1996) identified two main dimensions: egalitarian commitment versus conservatism.. Moreover. and mostly focus on exploring the dimensions of culture. many researchers have presented similar frameworks and models. McSweeney. assertiveness orientation. House et al. 552). attitudes to time. achievement versus ascription. uncertainty avoidance (UAI) and long-term orientation (LTO) differ between Eastern and Western cultures. researchers have considered concepts of general beliefs. others have suggested that cultural studies should be advanced beyond Hofstede‘s five-dimensional model. Kirkman et al. These dimensions. reward for application. social complexity. Hofstede (2001) argues that cultural dimensions such as power distance (PDI). neutral versus emotional. Western societies are more task-oriented. egalitarian commitment. affective autonomy.literature tend to have deficiencies in the frameworks they adopted. identified seven culture-level dimensions. hierarchy. long-term orientation. and uncertainty avoidance. and more complex approaches anchored in sound theory and empiricism employed (Javidan et al. harmony. Following the work of Hofstede (1980. isometrically. 2006). proposed seven dimensions of culture: universalism versus particularism. as practices and respective values.In their Global Leadership and Organizational Behavior ffectiveness (GLOBE) project which covered 62 countries. 2006 as discussed below). conservatism. in the individual-level study of the content and structure of values. Smith et al. and also have high power distance. 1991). mastery. (2003) identified nine dimensions. collectivism. which are basic premises that people endorse and use to guide their behaviour in their daily living (Bond and Leung. specific versus diffuse. much of the research has been based on the work of Hofstede although many other authors have criticized key aspects of Hofstede‘s research (see. In his work that originated from a study at IBM. These dimensions are: performance orientation. power distance. and attitudes to the environment. each easured twice. points made by Schwartz. or ‗social axioms‘. Schwartz (1994). 2004. intellectual autonomy. Leung et al. from his study of organizations in 50 countries. (2002) introduced a five dimensional structure of social axioms from a survey covering five countries. Attributes of Eastern cultures are high in peopleorientation. 2002. future orientation. individualistic. Trompenaars (1993). with relatively low power distance. for example. Many researchers have proposed frameworks for studying and measuring ‗culture‘. and utilitarian involvement versus loyal involvement. individualism versus communitarianism. humane orientation. are similar to those proposed by Hofstede (1991). Furthermore. gender egalitarianism. institutional collectivism. masculinity (MAS). their classification of social axioms comprises: cynicism. and uncertainty avoidant. 1994.. In recent studies. For example.
particularly those of India. and societal cynicism (relating to a lower emphasis on striving for high performance. Bond and Leung (2004) attempted to reveal the culture-level factor structure of social axioms. In a study of 41 nations. bi-cultural intermediaries – people who have lived in different countries and have first-hand experience of at least two cultures.‖ The cross-cultural leadership should aim at the following steps that can help organizations tackle the important but difficult task of integrating different cultures: .600 staff of 140 ethnic group in 74 countries. IATA faces the same problems as many other organizations around the world: How to acquire leaders who can enhance local business by effectively interacting with the local team and implementing global HR processes and also maintaining effective communication with headquarter? How to do business in the unfamiliar market? There are two characteristic approaches to these problems. Traditionally the corporate thinking has been biased towards western ideas and practices. Use of expatriates. Hong Kong or Singapore or Chinese nationals who have studied and worked abroad. and a general expectation of negative outcomes). and fate control. He says that we should go for the leadership. western companies often fill executive roles with Chinese from Taiwan.sending ―experts‖ from the company‘s HQ or another branch office. conservatism and collectivism). 2.religiosity. International Air Transport Association (IATA) embodies 230 airlines and has employed 1. 1. The cultural differences often make the western expatriate unable to operate and the ‗cultural translators‘ who are educated or trained abroad work well but are in very high demand and not always loyal to their employer. paying attention to the critical issue of culture. China and other parts of Asia. and extracted two factors: dynamic externality (related to power distance. Guido Gianasso. the vice-president for human capital. a pertinent outcome if there is a general suspicion of the social system. with little appreciation to the important fast growing markets. IATA believes that none of the approach is perfect. It has its headquarters in Geneva and Montreal. In the case of China.
5. 6. 3. open-minded and empathetic nature should be given preference. and traditions governing the relationship among various members of society. Adapt for the next cross-cultural challenge Cultural programs should not be replicated in their entirety because markets and cultures differ The difference in the culture. Identify two cultures that need to collaborate For the global organizations the cultural sense and potential gaps between the ―home‖ and ―target‖ cultures should be identified. 4. These are strong determinants of effective leadership behavior in a society (Fatehi. philosophy and value systems influences the behavior of the individual and their leadership styles. Identify Identify Identify Identify evaluation. In other cultures. for example. customs. content delivery and Share practices Share with the people who are working closely together and adopting an enquiring rather than judgmental mindset. The experiments carry out by various researchers and scientists have shown how widely these leadership styles vary from country to country. In order to lead effectively in another culture. high growth potential. norms. Simulation assignments which can enhance the learning experience during an intercultural program. 2. He stated that in the United States of America. leaders and appropriate leadership pairs real talent from of each culture co-leaders projects Leaders should be culturally intelligent to develop cross-cultural integration and collaboration. a realistic time frame A minimum of three to six months is a reasonable time-frame for start-up activities. Cultural differences influence leadership styles. and from culture to culture (Trompenaars. role expectations. He emphasizes that these other cultures might prefer . 1993). 7. 1996). leadership behavior and work-related cultural values of the host country's workforce (Fatehi. Fatehi argues that what constitutes a good leader in one culture may not constitute a good leader in other cultures. such would be regarded as incompetence or lack of knowledge on the part of the leader. patterns of life. a leader must understand the social values.1. norms. people would prefer democratic leaders who seek input from subordinates before making decisions. Team-players. 1996).
President Clinton emphasized the need for the United States to build closer diplomatic and economic ties with the countries of Sub-Saharan Africa. and take advantage of the cheap labor prevalent in the country since the military dictatorship. Foreign investors need to know the cultural work values of the African workforce in order to prepare their expatriate employees for assignments in these countries (Osuoha. has handed over power to an elected civilian government (Osuoha. investors who accompanied him to Africa were several African-American business leaders. Foreign Direct Investment (FDI) in Nigeria is estimated at about US $50 billion. investments in Africa (Coleman. Among U. One of the most politically significant countries in Africa that may likely attract a lot of foreign investors is Nigeria.S.S.S. 1995). 1996). Besides having technical expertise. failure of these managers to perform effectively will result in both monetary and business losses. Nigeria has the potential to become the largest market in Africa for foreign goods and services. The historic trip of President Clinton to Africa in March 1998 had developed confidence American business leaders to hunt for business undertaking in the African continent. with the U. Yukl. Congress and signed by the president. 1998). 1985. Since most U. attitude. A leader's principal objective is to assure synergy in his or her organization.S. 2000). As the desire for U.R. which governed the country for the past two decades. share of this amount at about 26% (Maps N' Facts. Two bills (H. There is the probability that foreign industrialists would rush into Nigeria to establish businesses. 1999) have been approved by the U. Nigeria is Africa's most populous country (has about one-fourth the population of the entire continent) and has an abundance of mineral resources (Compton's Encyclopedia. and lead a workforce of diverse cultures (Fatehi. firms send their most talented managers to these overseas assignments.1 Leadership Leadership is the ability of an individual to inspire and influence the thinking. . investments in Africa gathers momentum.a leader who takes charge of the situation without consulting subordinates prior to decision-making. the need to learn and understand the leadership behavior of these African countries will begin to emerge. During the course of his diplomatic mission.S. 434 & S. 2000). 666) in support of economic development in Sub-Saharan Africa (African Growth and Opportunity Act. 1989).S. international managers must possess the ability to organize. who enthusiastically applauded the notion of U. 2. 1999). and behavior of other people (Bennis & Nanus.
and the situational variables. Earley & Erez. Mainiero and Tromley (1989. demonstrate predictability and accountability in order to be trusted by followers. growth and development in all situations. 3) Trust Through Positioning-positioning is the set of actions necessary for implementing the leader's vision. While leaders continue to develop their strengths. Hersey and Blanchard (1993) view the leadership process as a function of the leader. To some people. authority and control (Adizes. the follower. 2. it means motivating subordinates to act by non-coercive means. 1988.and draw from the joint efforts of people working together a result that is more than the sum of the individual efforts put together (Koontz & Fulmer. mostly from top Fortune 200 companies.159) stated that "a leader is someone who is able to size up a situation quickly (often in the absence of information). and who may convert leaders into agents of change. define a direction to pursue. Their vision and intensity were magnetic and attracted followers towards them. 1975). and that the best style of leadership is one that maximizes productivity. leadership may mean power. Bennis and Nanus studied ninety successful business leaders. they must compensate for their weaknesses through competent staff. while to others. A leader must establish reliability. They emphasized that "the style of the leader" is the key to effective leadership. satisfaction. and mobilize subordinates' energies towards the achievement of a particular goal". the new leader is one who commits people to action. 4) Deployment of Selfleaders must recognize their strengths and weaknesses. Bennis and Nanus developed four areas of competence shared by all these successful leaders which include the following: 1) Attention through vision-all the leaders studied were agenda driven and unparalleled results oriented. 2) Meaning Through Communication-effectively communicating one's leadership vision induces enthusiasm and commitment from followers. Through intensive interviewing. 1997). In the words of Bennis and Nanus (1985: 3): Leadership is like beauty. but you know it when you see it. it is hard to define.2 Approaches to Leadership . p. and who converts followers into leaders. these leaders revealed how they viewed their roles in their various organizations.
the situation in which they worked. 1967). while Thomas Watson. Leaders with high scores were rated relationship-oriented and those with low scores were rated task-oriented. He used the Least Preferred Co-worker (LPC) scale. Situational Contingency Approach: The situational contingency approach specifies situational factors that make certain leader behavior more effective. which measured leaders' attitudes toward their least-preferred co-worker to evaluate leadership styles of managers. for example Winston Churchill. Edwin Land. Fiedler (1967) provided a framework for effectively matching the leader's behavior with the situation to determine leadership effectiveness. 1961. . The trait approach claimed that leadership attributes were inherited. the Behavioral. & Burt 1955) and the University of Michigan (Bowers & Seashore. and Franklin Roosevelt were among great leaders who used their leadership skills in the building of their nations. (b) the degree of task structure. The Trait Approach: This approach is characterized by the certain unique qualities of the persons that made them great leaders. Likert. such as tireless energy. Lee Iaccoca etc.The major approaches of leadership includes the Trait theory of leadership. and their leadership effectiveness. Situational or Contingency. and (c) the position power of the leader. The behavioral study examines a leader's behavior and its impact on subordinate performance and satisfaction. and the Cultural Contingency approaches. The behavioral approach became a major research activity at the Ohio State University (Fleishman 1953a. The conditions that influenced the effectiveness of the leadership behavior depended on a combination of: (a) leader-member liking. Fiedler empirically determined leadership styles that were good and bad within the organizational context. The Behavioral Approach: The behavioral approach focused on what leaders can do but not what leaders are. The Ohio State University studies will be reviewed in detail later in this paper. Fleishman. great intuition and extraordinary persuasive ability. George Washington. mainly in the military. Alfred Sloan. After studying the leadership styles of hundreds of leaders who worked in different contexts. Transformational. Mahatma Gandhi. Harris. The Cultural Contingency approach targets on the effect of cultural values and beliefs on the leadership style of a leader. 1966. will always be remembered for their leadership skills in building successful business organizations. and limited to individuals who possessed extraordinary abilities.
not the least of which was transformational and charismatic leadership Since he took the oath of office. Fleishman & Harris. The Ohio State University researchers. 1989). Transformational leadership uses vision. intellectual stimulation or individualized consideration to inspire followers to go beyond the call of duty in discharging their responsibilities. 1955) and the University of Michigan (Bowers & Seashore 1966. 1992). which focused on what leaders can do but not what leaders are started at the Ohio State University (Fleishman. inspirational motivation. objectives and strategies (Bass. charisma.3 The Ohio State University Studies An extensive research program. Fleishman and Peters (1962: 127) defined these two factors of leadership as follows: President Barack Obama: Transformational Leader Management Theories Demonstrated in Obama's First 100 Days During his first 100 days. long-term goals and vision.Transformational Leadership Approach: Transformational leadership is part of the "New Leadership" paradigm (Bryman. 1953a. President Barack Hussein Obama has embodied several models of leadership theory. It focuses on values. 1967) in the 1960s to investigate the behavioral approach to leadership. defining leadership as the behavior of individuals when influencing a group of followers towards goal attainment described leader behavior in two dimensions: Initiating Structure and Consideration. Fleishman. 1962. President Obama showcased several models of leadership theory. Yukl. Likert 1961. and achieving organizational goals. 1962). 1953a. 1985. a process that changes the attitude of individuals in organizations towards commitment to organizational missions. Fleishman & Peters.‖ . 2. Harris $ Burtt. one of those leadership theories is transformational-charismatic leadership. (Fleishman. Arianna Huffington (2009) wrote: ―…any list of the most impressive achievements of Obama's first 100 days should start with the intangible qualities of transformational leadership.
personal charm and charisma…He has mixed old and new media strategies to sustain and build popular support…Obama and his communications team have been clever at devising novel ways to present Obama in a sympathetic light. In their analysis of Obama's first 100 days. having a strong desire to influence others. newly chosen President-elect Barack Hussein Obama threw down the gauntlet and declared.Characteristics of Transformational and Charismatic Leadership Peter Northouse (2004) wrote that transformational leadership is ―the process whereby an individual engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower. He publicly chose his NCAA basketball tournament picks on ESPN. (b) traveling abroad more than any preceding president. they wrote: "Obama has benefited from skillful oratory. Woolley and Gerhard Peters (2009) are currently involved in a special research project regarding the American Presidency called An American President Project Exclusive Analysis sponsored by the University of California. In confronting the contemporary era of fragmented media of communication. all of which happened during his first 100 days in office In his acceptance speech delivered in Chicago's Grant Park. transformational leadership is often seen as synonymous with charismatic leadership. Indeed." The same type of intangible qualities that Huffington attributed to President Obama. charismatic leadership is ―a special personality characteristic that gives a person…exceptional powers that result in the person being treated as a leader‖ and according to Robert House (1976) displays characteristics of ―being dominant. the president has shown a savvy ability to 'find the audience. and (c) attending 87 public events. and having a strong sense of one‘s own moral values. "A new dawn of American leadership is at hand" (DeFrank. being self-confident. Santa Barbara (UCSB). He reached out to the Latino community by appearing on Spanish language television. they observed that President Obama excelled in how he communicated with the American people. . First identified by German sociologist Max Weber. Obama has appeared on the 'Tonight Show' with Jay Leno. Woolley and Peters show how President Obama attempted to stay accessible to the American people and others by (a) actively engaging the Internet generation through media technologies like YouTube and MySpace. President Obama Benefits from Personal Charm and Charisma John T. 2008)." President Obama stays accessible through New Media Technologies Furthermore.' as opposed to expecting the audience to come to him." Additionally.
2009) e.. Obama's works were characterized by an ambitious agenda and decisive action through which he showed evidence that the office of the American presidency requires carefully formulated combinations of leadership approaches (Conrad & Holder). in his first 100 days. Consequently. the unprecedented election of Barack Obama as the 44th President of the United States of America was met with heightened euphoria and emphatic hallelujahs (DeFrank). President Obama demonstrated a number of well-recognized leadership models including the five highlighted below: Charismatic/Transformational Leadership Theory Charismatic/Transformational Leadership Theory demonstrated in just about everything "from the president's personal equanimity …to his masterful use of the bully pulpit" (Huffington. Undoubtedly some wondered. seizing the moment to force GM and Chrysler (which received substantial amounts of federal aid to keep operating) to endorse part of his environmental policy by accepting an accelerated time table for new MPG standards (Garrett. 2009).exceptional powers that result in the person being treated as a leader" (Weber as cited in Northouse.g. President Obama Active from Day One in Office For the most part (whether one agrees or disagrees with his policies or accomplishments) President Obama attempted to fulfill his pledge to be that new kind of presidential leader (Conrad & Holder. 2008). 2009). "Charismatic leadership is a unique personality characteristic that gives a person. "Can he truly live up to all the hype and handle well the monumental task at hand?" From day one. Winston. the ills of the nation and the planet called all his leadership skills into practice.. Leader-Member Exchange Theory Leader-Member Exchange Theory (LMX) in that he worked with individual staff members including Vice President Joseph Biden and White House Chief of Staff Emmanuel Rohm. 2009). . From the first day he sat down in the Oval Office. Contingency Leadership Theory Contingency Theory in so far as he showed a knack "of capturing the essence of a moment and delivering exactly what it demands" (Conrad & Holder. 2009). putting his bold promise of "a new kind of American leadership" clearly on the line.with expectations for his incoming administration at a historic high (Ruggeri.
and (c) in receiving of heads of state representing various countries and cultures around the world e. 2009. The challenge of a global leader is to hold the multiple interests at heart and begin to see the possibilities of how groups of people who are seemingly very different can work together to accomplish an overall higher goal. TheFragileMind. all the predictions are based on the unique worldview. G. far more. and environmental implications of the work you do at a global level? The one thing one must find is the positive global intention that is carried during the planning of global activities. How one develops the large system sensitivity to begin to understand the economic. . filled with own cultural experience. social. his appointed Cabinet.g. Corporate leaders are having as much impact across countries as our political systems.Team Leadership Theory Team Leadership Theory in that he worked with (a) the ordinary teams of the presidency including his White House staff. (2009). Israeli Prime Minister Netanyahu (Mitnick. Because of the size and scope of the potential impacts and subsequent changes of our actions. and Holder. it is probably impossible for one person to imagine the overall consequences. This is further limited by the fact that individually. (b) in his first appearance at the G20 summit where he attempted to begin "healing bruised relations with American allies" (Parsons. References: Conrad. 2009). and in many cases. Global Consciousness One aspect of leadership at a global level is an understanding of the larger system implications of our actions. 2009). Lawson. J. the National Security Council and (b) specialized task forces like his team of economic advisors (which actually began working before the president the president took the oath of office) (Sahadi. Cross-cultural Leadership Theory Cross-cultural Leadership Theory demonstrated (a) in his inaugural speech through which he spoke directly to enemies of Western values and made promises to "the poor nations of the world"(Obama.org. 2008). 2009). President Obama: A New Kind of Leader.
com. Ruggeri.com. C. Huffington. NyDailyNews. (2009). Sahadi. (2009). Obama demands that Israel stop settlements. Leadership: Theory and Practice – 3rd Edition. B. J. Democrat Barack Obama wins historic presidential election over Republican John McCain. the Bad. Obama at G-20 summit: Popular president. California: Sage Publications. (2008). (2008). Thousand Oaks. unpopular plan. G. CNNMoney. Obama‘s First 100 Days: The Good. HuffingtonPost. (2009). Los Angeles Times: World. Northouse. Mitnick. (2009). Obama. Obama names his economic team.DeFrank. P. T. and the Geithner.com.S. (2009). A. How feasible is that? Christian Science Monitor. . News & World Report. (2004). A. Inaugural Address. U. H. Barack Obama Faces Historically High Expectations As President. Parsons.
social. Situational constraints 3. Common interest considers the fact that each party in the negotiation shares. In essence. 1991). and alternatives available to the negotiating international company and the host country also change. and they act in certain culturally emblazoned ways. Negotiation outcomes. Areas of conflicting interests could include payment. resulting in a fresh interpretation of the four Cs. Their goals are locked together. the compromises that are negotiated may not produce the result. A fixed or set of rules or procedures for resolving the conflict does not exist. what one wants is not necessarily what the other one wants. Creating value is a cooperative process in which the parties in the negotiation seek to realize the full potential benefit of the relationship. The objective is to pursue a win-win situation for both parties. Negotiation consists of two distinct processes: Creating value and claiming value. and the perspective. The key to create value is finding interests that the parties have in common or that complement each other. The purpose of a negotiation is a joint decision-making process through which the parties create a mutually acceptable settlement. profits. compromise. A modern definition of negotiation is two or more parties with common (and conflicting) interests who enter into a process of interaction with the goal of reaching an agreement (preferably of mutual benefit). know-how. Compromise involves resolving areas of disagreement. contractual responsibilities. Rules of procedure are as much a product of negotiation as the issues. to have one side capitulate. Although a win-win negotiated settlement would be best for both parties. Over time. or to take their dispute to a higher authority to resolve it. John Kenneth Galbraith said ―Sex apart. to permanently break off contact.1 CROSS CULTURAL NEGOTIATIONS . at least for the moment.CHAPTER 3 CROSS CULTURAL NEGOTIATION The word ―negotiation‖ has originated from the Roman word negotiari meaning ―to carry on business‖ and is derived from the Latin root words neg (not) and otium (ease or leisure). These factors operates in business and economic situations that have cultural influences. and quality. negotiation is the most common and problematic involvement of one person with another. The parties. The process of bargaining. A conflict of interest exists between two or more parties. has. A seller cannot exist without a buyer. Bargainer characteristics. The theory of the negotiation process includes the following dimensions: 1. 3. Without a common goal. distribution. Conflict occurs when people have separate but conflicting interests. 2. and the two activities are not unrelated. there would be no need for negotiation. negotiation takes place within the context of the political. Parties at the negotiating table are interdependent. and 4. that is. the environment.‖ negotiations is a decision making process that provides opportunities for the parties to exchange commitments or promises through which they will resolve their disagreements and reach a settlement. Negotiations Take Place within the context of the four Cs: Common interest. These theories are based on parties who share certain values and beliefs based on their culture. then reconciling and expanding upon these interests to create a win-win situation. We bargain when: 1. The negotiation process has few rules of procedure. 3. economic. conflicting interests. prefer to search for agreement rather than to fight openly. Claiming value is essentially a competitive process. andcriteria (Moran and Stripp. or the parties prefer to work outside of a set of rules to invent their own solution to the conflict. or wants something that the other party has or does. 2. and cultural systems of a country. The criteria include the conditions under which the negotiations take place. the four Cs change and the information.
In an international negotiations. Other cultures think inductively: deal with problems at hand and principles will develop. and the expectations they hold of counterparts‘ behavior. 3. International arbitration has a time-tested set of rules and procedures to govern the arbitration.2 Importance Of Negotiations The importance of negotiation can be understood by an example of Rolls Royce. Intercultural negotiations exist because people think. the organization to manage the proceedings. they made concession after concession. they had actually made an extremely costly mistake. In every negotiation the participants have different points of view and different objectives. The international negotiator must be careful about cultural stereotypes Needs. Goals: motivating the parties to enter. they found that they were selling each engine for substantially less than it cost to build. you bring to the negotiating table the values.3 How Culture Impacts Negotiation · By conditioning one‘s perception of reality · By blocking out information inconsistent or unfamiliar with culturally grounded assumptions · By projecting meaning onto the other party‘s words and actions · By impelling the ethnocentric observer to an incorrect attribution of motive Culture influences negotiation through its effects on communications and through their conceptualizations of the process. the ends they target. and 4. The situation reverses when two cultures are involved in negotiation leading to misunderstandings and miscommunications. The process of negotiating that involves communications and actions. They ended up with a contract that any rational engineer would have known was ridiculous. In some countries. Some cultures prefer a deductive approach: first agree on principles and later these principles can be applied to particular issues. Some cultures are likely to search for compromise while others will strive for consensus and still others will fight until surrender is achieved. negotiating is seen in practically every transaction. It is basically a process where two groups or persons agree to submit the dispute to a non-aligned third person and further agree that they will carry out that third person‘s decisions. 3. beliefs and background interference of your culture and normally will unconsciously use those elements in both the presentation and . the means they use.21 Cultural Influences in Negotiations Inter cultural is when two individual interact. and an established group of experienced arbitrators.In summary. a famous name and a fine engineering firm. By driving the price so low. Culture affects the range of strategies that negotiators develop as well as the many ways they are tactically implemented. 2.5 billion on the L-1011. Experience by itself is insufficient unless it is transformed into expertise. 3. fixed-price contract. Despite repeated warnings from their own engineers. they bankrupted a key supplier. values. and behave differently reaches agreements on practical matters. negotiations primarily consists of five aspects: 1. Arbitration is another form of negotiation and one of the most widely used methods of settling disputes. Specific situational conditions under which the negotiation is conducted. The two parties to a great extent wanted the engine contract for Lockheed‘s L-1011 airliner. When the nearly inevitable cost overruns occurred. The moral is quite clear–if a deal is too good for any side. 3. They agreed to go well beyond the existing state-of-the-art on a low-margin. whether it is buying fruits or buying industries. The Lockheed negotiators naturally felt they had negotiated very well. and ultimately lost $2. feel. Arbitration avoids going to court and the uncertainties of an unknown legal system. This contract (and various other mistakes) literally drove Rolls Royce. When the negotiation is done in the home country it is accelerated communications by making logical cultural assumptions. into bankruptcy. interests and expectations may differ radically. However. could not meet their commitments to their own customers. Preexisting background factors of cultural traditions and relations. it is probably bad for both of them.
outward forms of status such as protocol. Nordic. Israeli preference for direct forms of communication and the Egyptian preference for indirect forms exacerbate relations between the two countries. negotiation rules and practices often vary widely across cultures. South Asia. different weight to legal. Low power distance cultures include the Anglo-American. Low risk-avoiders require much less information. rules. Hong Kong. respectful of age and seniority. power distance and individualism. and hierarchy are considered important. and can act quickly. Power distance refers to the acceptance of authority differences between people. Masculine cultures value assertiveness. A low power distance culture values competence over seniority with resulting consultative management style. people tend to avoid uncertain situations while in low uncertainty avoidance cultures. High risk-avoidance cultures tend to have lots of formal bureaucratic rules. have fewer people involved in the decision-making. the Nordic nations.interpretation of the data. the Israelis viewed Egyptian indirectness with impatience and viewed it as insincere. The cross-cultural negotiator cannot take common knowledge and practices for granted. standards and formulas and trust only family and friends. and tolerates deviant ideas. independence. uncertainty avoidance. In weak uncertainty avoidance cultures. People in low uncertainty avoidance societies dislike hierarchy and typically find it inefficient and destructive. favors conformity and safe behavior. In low power distance one strives for power equalization and justice while high power distance cultures are status conscious. and Singapore all have low uncertainty avoidance.‘ The competitiveness and assertiveness embedded in masculinity may result in individuals perceiving the negotiation situation in win-lose terms. Low masculinity and low power distance may be related to the sharing of information and the . task orientation and self achievement (traditional ‗masculine‘ characteristics) while feminine cultures value cooperation. A problem solving orientation is likely to be found in cultures characterized by low uncertainty avoidance and low power distance. Masculine cultures subscribe to ‗live-to-work‘ while feminine societies subscribe to ‗work-to-live. Masculine societies tend to have more rigid division of sex roles. Decisions regarding reward and redress of grievances are usually based on personal judgments made by powerholders. relationships solidarity with the less fortunate. paying more attention to some arguments than others. formality. In high power cultures. people are generally more comfortable with ambiguous uncertain situations and are more accepting of risk. The most masculine country is Japan. The United States. Nations tend to have a national character that influences the types of goals and processes pursued in negotiations. the way evidence and new information are used or the way one point seems to lead to the next. Uncertainty avoidance refers to the degree to which one feels uncomfortable in risky and ambiguous (uncertain. interpreting and judging the other culture by your own standards. or personal relations). In high uncertainty avoidance cultures. plans.4 Dimensions of Culture Hofstede1 devised four cultural dimensions which could explain much of the differences between cultures: masculinity. The Egyptians interpreted Israeli directness as aggression and were insulted. unpredictable) situations. Thus cross-cultural negotiators bring into contact unfamiliar and potentially conflicting sets of categories. the difference between those who hold power and those affected by power. and behaviors. The most feminine societies are the Nordic countries. Power distance implies a willingness to accept that the party which comes out most forcefully gets a larger share of the benefit than the other party. deviance and new ideas are more highly tolerated. High power distance cultures are Latin America. These patterns can extend to styles of decision making (the way officials and executives structure their negotiation communication systems and reach institutional decisions) and logical reasoning (way issues are conceptualized. Masculinity is related to assertiveness and competitiveness while femininity is related to empathy and social relations. technical. rely on rituals. and Arabic cultures. nurturing. and Germanic cultures. Difficulties sometimes arise from the different expectations negotiators have regarding the social setting of the negotiation. modesty and quality of life (traditional ‗feminine‘ characteristics). a more distributive process is expected in masculine societies where the party with the most competitive behavior is likely to gain more. Uncertainty avoidance may lead to focus on the obvious competitive and positional aspects of negotiation and may hinder the exchange of information on interests and development of creative proposals. Thus. 3. followed by Latin American countries.
conflicting. which include the parties and their objectives. · Winning. the skills and experience of the negotiators. · Communication. · Anticipation. power and dependence— that one of the parties gains more power in the relationship. · Achieving consensus.41 Variables Influencing Cross-Cultural Negotiations Two groups of variables influence he process of international business negotiation: 1.‖ It can include the perceived cooperation/conflict—that the parties have something to negotiate for and something to negotiate about. The position of the market (seller‘s vs. · Need satisfaction. · You must reduce differences to reach an agreement. · A deal. 3. · Compromise or settlement. · Both written and unwritten aspects of negotiation are important · A bargaining process. or complementary. · It can create problems and generate bad feelings. · Both parties must be in a position to communicate clearly and overcome cultural barriers to effective communication.‖ · Searching for alternatives. · Mutual understanding.offering of multiple proposals as well as more cooperative and creative behavior. · One must ascertain expectations and then work for their achievements. long-term expectations of the true deals or benefits and short-term expectations concerning the prospects of the present deal. · One must narrow down differences and emphasize commonalities of interest. and the respective government. threats. often categorized as being common. 2. · Persuasion. the expectations.buyer‘s) and finally.42 Intercultural Implications of Negotiations · A situation. · Practicing empathy · You must appreciate the problems and limitations of your ―opponents. High masculinity and high power distance may result in competitive behavior. · The appreciation of cultural differences is essential in cross cultural situations. Atmosphere is the perceived ―milieu. Background factors. · You must familiarize yourself with management styles and assumptions of others to anticipate their moves. Twelve variables in the negotiation process lead to understanding the international negotiating styles better. and perceived distance—that the parties are unable to understand each other. · A conscious endeavor to manage cultural differences is required. · You should be systematic and simple · Conflict management · It is possible to manage conflicting interests. · One must be prepared to give and take. agents. such as consultants. and finally. 3. . · You must establish your credibility and be soft while not losing your grip on the problem. Other aspects include third parties involved. negative reactions.
· You should create the need first. International Management. Introduction to Globalization and Business. and how to listen. · Time and opportunity · Timely actions based on opportunity management. · Managing power and information. how to ask questions. · Selling. that relationship building can be a time consuming process. and skills is important. (2005). Pearson Education Limited. They must remain calm. of settling disputes. (2003). that the long-term perspective must be pursued. They recognize that things take longer to communicate across cultures. Economic Development. is not about numbers or terms or dates but personal relationships. Analysis provide the needed edge in highly competitive situations. Sage Publications Hodgetts. Effective international negotiators understand that negotiation. The effective international negotiator knows how to probe. Therefore.· A means of getting what you · It also means giving what others want from others. be flexible and willing to accept new conditions. 7th Edition. easiest to satisfy. The problem with deal orientation is that the difficulty of creating and enforcing a legal agreement across multiple legal and government jurisdictions can be insurmountable. . A deal orientation is essentially static in nature while the world is dynamic. genuine and rational manner. not lose sight of the ultimate objectives of the negotiation. International Management: Theories and Practice. 6 th Edition. Negotiators who have an effective ongoing relationship will be able to agree to disagree and not have the disagreement negatively affect their relationship. Expect of you. Effective international negotiators have staying power. ISBN: 0-201 64858-X. and communicate a commitment to the negotiation and the satisfaction of mutual needs. P. It is about developing relationships of trust and mutual respect. Experienced international negotiators create agendas in advance and try to get buy-in from the other side on the agenda before the actual start of the negotiation. working on developing solid mutually beneficial relationships is the first step to traveling the road to success. as well as being the first step towards establishing trust and relationships. Todaro. Luthans Doh. He or she must become relationship oriented rather than deal oriented. 2005. (2000). He or she seeks areas where needs are mutual and hence. · Gaining the favor of people · It is easier to gain favors while acting in a from whom you want nothing. M. Prentice Hall. M. · You should know in advance the limitations of your power. · The least troublesome method· The use of intercultural negotiating styles. first and foremost. modes. Sharing of information is crucial towards success. Tata McGraw Hill Tayeb. References: Parker B. Once mutual needs are established. remain on the creative lookout for needs. meeting individual needs can begin to be accomplished.
Countries with low power distance include USA. and they seldom bypass the chain of command. Parents treat children as equals. etc. This respectful response results in a centralized Structure and autocratic leadership. Parents teach children to be obedient. Pakistan. These value dimensions as proposed by Hofstede provide a useful framework for understanding the workforce diversity. UK. Supervisory personnel constitute large Countries with high power distance include India. etc. The extent to which the subordinates accept unequal power is societally determined under this dimension. Hofstede has analyzed IBM employees in 53 countries in the world and showed differences in values between Countries. Interdependence between less powerful and more powerful people Emphasis on decentralization. France. an autocratic management style is not likely to be well received in low-power distance countries. There are several value dimensions available from the research work undertaken by the researchers. As a powerful component of society‘s culture. Denmark Austria. Flatter organization structures. The characteristics differences between high power distance and a low power distance countries can be observed as follows: Countries with low power distance in. clude-USA.11 Power Distance It is the level of acceptance by a society of the unequal distribution of power in institutions. right or wrong. Values are a society‘s ideas about what is good or bad. UK. Japan. etc . values are Communicated through the cultural values already discussed and are passed on from generation to generation. These are explained: 4. France. In countries where people display low power distance. Most of the variations stem from underlying value systems. resulting in more harmony and cooperation. Denmark Austria.Countries with high power distance include India. Hence. This is reflected in four dimensions given by him. employees acknowledge the boss‘s authority simply by respecting that individual‘s formal position in the hierarchy. Pakistan. Japan.12 Uncertainty Avoidance High Power Distance Countries Inequalities among people exist and are desired.1 Hofstede‘s Value Dimensions G. etc. Dependence of less powerful people on more powerful people Centralization is popular. Low Power Distance Countries Lesser inequalities among people. superiors and subordinates are apt to regard one another equal in power. which cause people to behave differently under similar ircumstances. Taller organization structures. Values determine how individuals will probably respond in any given circumstance. Supervisory personnel are lesser in proportion among the workforce proportion.CHAPTER 4 ROLE OF ETHICS IN CROSS CULTURAL MANAGEMENT The cultural variables described above result from unique setsof shared values among different groups of people. The value dimensions proposed by him are: · Power Distance · Uncertainty Avoidance · Individualism · Masculinity 4. These value dimensions can again prove to be a powerful tool for understanding cultural diversity. 4. In the countries where people display high power distance.
In the countries that price individualism. Encouragement to employees for assuming responsibilities. some managers take more risks. Differences in focus in individualism and collectivism are explained in the followingTable. emotional dependence on belonging to―the organization. (2) 'I'. 4. employees exhibit little aggressiveness and lifetime employment is common. (4) Need for selective friends. . Individualism 1) Individual take care of self and family. Low labour turnover. if not on an economic level. Managers have propensity for low-risk decisions. Less ambitious employees. Flatter organization structure.‖ and a strong belief in group decisions. (5) Greater individual initiative. individual initiative and achievement are highly valued. which are valued in individualistic societies. Risk-taking attitude. Other management practices reflect the emphasis on group decision-making processes in the collectivist societies. In the countries where low individualism prevails. The society values harmony and saving face. and there is high job mobility. Australia. People from collectivist countries believe in the will of the group rather than that of the individual and their pervasive collectivism exerts control over individual members through social pressure and fear of humiliation. In a business context this value results in formal rules and procedures designed to provide more security and greater career stability. and there is strong sense of nationalism. democracy. Countries with high uncertainty avoidance include-India. (7) Tasks take precedence over relationships. In countries with lower levels of uncertainty avoidance nationalism is less pronounced. (9) Countries include USA. High Uncertainty Avoidance Countries High incidence on rules and regulations. and protests and other such activities are tolerated. Taller organization structure. More ambitious employees. (6) Protestant work ethic. Risk-averting attitude. UK. Countries with low uncertainty avoidance UK. etc. (8) Promotions are based on merit and performance. there exist a tight social framework.includeJapan. People shirk responsibilities. the relationship of the individual to organizations is one of independence on emotional level. USA. The differences between countries with low uncertainty avoidance and high uncertainty avoidance can be studied as under: Low Uncertainty Avoidance Countries Less incidence on rules and regulations.It refers to the extent to which people in society feel threatened by ambiguous situations. High labour turnover. autonomy and independence. Countries with a high level of uncertainty avoidance tend to have strict laws and procedures to which people adhere closely. (3) Independence of individual from organisation. Pakistan. Hiring and promotion practices in collectivist societies are based on paternalism rather than achievement or personal capabilities. etc. Austria. company activities are less structured and less formal. Israel. As a consequence. consciousness. whereas individualistic cultures emphasize self-respect. etc.13 Individualism This refers to the tendency of people to look after themselves and their immediate family only and neglect the needs of society.
and organizational interests generally encroach on employee‘s private lives. Sweden. Neatness and taste is the key. and with low tolerance for uncertainty. Group decision-making is emphasized.Collectivism (1) Interest of group. Pakistan. and a reduced need for assertiveness.14 Masculinity This refers to the degree of traditionally ―masculine‖ values assertiveness. In organizations. Achievement is defined in terms of human include contacts and living environment. one finds considerable job stress. They are emotional and easily outraged by slightest provocation. (9) Countries include Japan. ―femininity‖ emphasizes ―feminine‖ values-a concern for others. they are interdependent and interactive. one finds less conflict and job stress. Cross cultural negotiator must respect different cultures. Countries with low masculinity Denmark. The degree of masculinity affects in the following characteristic ways: High Masculinity Low Masculinity Career is considered as most important. consciousness. Some Examples Are: (a) Japanese are with less power distance. aggressiveness and a lack of concern for others -that prevail in society. UK. These Hofstede‘s values do not operate in isolation. An awareness of the differences on these important characteristics between cultures can help to develop a strategy for tackling them. India. Do not make enquiries about Arab‘s wife or daughters or discuss your own. In highly masculine society women are expected to stay at home and raise family. (5) Less individual initiative. Do not point sole of your foot to some one. defined in terms of money and recognition. Individual decision-making Is emphasized. In comparison. etc. when interacting with Arabs maintain strong eye contact. Hofstede dimensions provide a framework for prediction of many kinds of behavior in cross-cultural organizational settings. Work needs take precedence. Do not gesture with left hand. Countries with high masculinity includefriendly atmosphere. Hofstede provides a framework for understanding cultural diversity across nations. In countries with low masculinity. Japan. nurturing. rather. more women in high-level jobs. (c) In Middle-East. 4. (7) Relationships prevail over task. Norway. etc. They believe in consensus. punctuality in business and social interaction is important. (3) Dependence on organization. highly task-oriented. Importance is placed on cooperation and Achievement is given importance and is Employee security gets precedence. (2) 'We'. (8) Promotions are seniority-based. USA. The behavior of Japanese bears this out. etc. (4) Social relationships. (6) Less support for protestant work ethic. for relationships. Taiwan. (b) In France. (d) Indians are found to have: . care for weak and for quality of life. materialism. He must develop high tolerance for ambiguity and have patience to get clarity.
(iv) Indian culture is affected by region. recognition of achievements and actions. Boss is benevolentautocrat and has more privileges. indifference towards health and cleanliness. (ii) Individualism: They believe in individual rewards. Indians also feel that small is good and they care more for tomorrow than today as compared to. language. responsibilities and even the teams have to be designed keeping in view their individualistic tendencies. (e) Americans value directness.(i) Large power distance: Indians look for approval from superior.many other cultures. spiritualism. Also GNP of the countries was used to place the countries in the figure. openness. as have low self-esteem. independence and informality and hence possess: (i) Low power distance: They believe in quick decision making and may not consult any superior before taking decision. This approach again provided the basis for understanding the individual cultures but did not help much in comparing and contrasting the various cultures effectively and to the fullest.The attitudinal dimensions used by the two were: · The importance of work goals. and gradations of society. expect protection from organization and colleagues. . Core values of Indian culture are tolerance hallmark of society. by geographic region.21 Universalism versus Particularism This dimension deals in type of orientation towards obligation. faith in superstitions. · Work role and interpersonal orientation. emphasis on liberty and equality. 4.2 Trompenaar‘s Value Dimensions Trompenaar through his research work gave another set of value dimensions. · Need fulfilment and job satisfaction. Ronen and Shenkar developed eight country clusters grouped according to the similarities in the attitudes of the employees. etc. (iii) Somewhat collectivitist tendencies but with individualistic streaks. respect for elders and religious teachers. climate. faith in respective religions. religion. b. (ii) Weak uncertainty avoidance: Each day is taken as it comes and not feared from. These 4 dimensions are as follows: · Universalism versus particularism · Neutral versus Affective · Specific versus Diffuse · Achievement versus Ascription 4. the most developed nations close to the center. faith. The results of their study coincide with the Hofstede‘s value dimensions. family. Geographic Clusters Nath and Sadhu categorised the four value dimensions given by Hofstede as well as those given by some other researchers. The two aspects can be characterized as in the following table: Universalism Rules Legal Systems Contracts ―Higher Obligations‖ ―Objectivity‖ One right way Particularism Relationships Personal Systems Interpersonal Trust Duty to friends. education and history. · Managerial and organisational variables. Relativity Many ways.
22 Neutral versus Affective This dimension focuses on emotional orientation of relationships. age.24 Achievement versus Ascription This dimension examines the source of power and status in the society. extrovert Separate work and private life Diffuse Indirect direct confrontation More closed. Two diverse approaches to time exist are: · Monochromic · Polychromic Monochromic time represents the ordered. schooling or other criteria Other Factors Affecting Cross-culture Differences Besides values dimensions another way to study and understand cultural diversity is on the basis of certain culturally based variables that cause frequent problems for the people in international management.Oriented towards obligation personal obligations Oriented towards societal 4. schedule driven view of time.23 Specific versus Diffuse This dimension relates to the people‘s involvement in relationships. waste lot of time and never stick to schedule. vocal Strong body language 4. tight calendar and promptness. cyclical. They stick to the schedule and never waste time. The two aspects differ in the following manner: Achievement Ascription Status based on competency and achievements Status based on position. Polychromic time is the view that the time is a vague element that is caught up in the multiple.The following table shows the comparison between the two aspects: Neutral Physical contact reserved for close friends and family Subtle communication ―Hard to read‖ Affective Physical contact more open and free Expressive. The table below contrasts the two aspects: Specific Direct Confrontational Avoid Open. introvert Link private and work life 4. Material Factors . Such cultures lack precision in time. and concurrent involvement of different people. Such cultures are characterized by precise appointments. These factors are: Temporal Factors This relates to the degree to which the various nations believe in ―Time is money‖ concept. linger on the jobs. precise.
America. Such differences have implications for management functions. and 4. touching. cosmetics and silence. American Value System The American value system in the decreasing order of importance or priority of values can be highlighted as follows: · Equality · Freedom · Openness · Self-reliance · Cooperation · Family Security · Relationship · Privacy · Group Harmony . that is which believe that they themselves can control the future.. artifacts. The analysis of following situations in order to point out the differences in values across cultures and their influence on daily business interactions: I.The material elements of the culture are composed of those things used to organize its economic activities. These sets of values have been accumulated. eye contact. The value systems of these countries are also summarized. For this reason. company. posture. natural resources and so on. Language The language not only relates to the spoken language but also unspoken language which includes facial expression. color symbolism. clothing. are based on several sets of cultural values developed since childhood. It involves these things and objects people love using. These values differ from country to country and even within the country. Value Systems of Some Countries Most of the life‘s actions and interactions. whether they may be for business purpose or for personal needs. walking. 2. The attitude of various nations towards the usage of these resources varies. rewarded and enforced by the family. in the proceeding pages we have made an attempt to develop brief cultural profiles or the countries based on value systems of: 1. These at the same time may include various infrastructural facilities. tend to take the change easily and with speed but it is not the case with cultures having external locus of control. etc. myth. Cultures with internal locus of control. hand gestures. hairstyle. such as motivation and reward systems. Middle-Eastern countries. legends and expressions of arts. and country. Russia. Change This refers to the attitude of the culture towards change. which is depicted through folklore. proxemics. Japan. The value differences playa major role in creating cultural diversity. community. 3. Aesthetics Aesthetics deals with the culture‘s sense of beauty. The values regarding acceptance of change and pace of change may vary across cultures.
. can be listed as follows: · Family Security· Freedom · Self-reliance · Openness · Material Possessions · Cooperation · Spirituality · Equality · Time · Relationship · Reputation . can be listed as follows: · Relationship · Group Harmony · Family Security · Freedom · Cooperation · Group Consensus · Group Achievement · Privacy · Equality · Formality · Spirituality · Competition · Seniority · Material Possessions · Self-reliance · Authority · Time · Openness · Risk-taking · Reputation III. Japanese Value System The Japanese values. in the decreasing order of priority. in the decreasing order of priority.· Reputation · Time · Competition · Group Achievement · Spirituality · Risk-taking · Authority · Material Possessions · Formality · Group Consensus II. Russian Value System The Russian values.
N. (2002) The Blackwell Handbook of Cross-cultural Management Blackwell Guirdham. (2007) Cross-Cultural Management in Work Organisations CIPD Gannon. F. Middle-Eastern Value System The priority-wise list of middle-eastern values. References: Adler.· Authority · Formality · Group Harmony · Group Achievement · Risk-taking · Seniority · Competition · Privacy · Group Consensus IV. values. in the decreasing order of priority. (2005) Cultures and Organizations McGraw Hill Jandt. M-J and Price. expectation or work and group relations. (2001) Culture‘s Consequences: International Differences in Work Related Values Sage Hofstede. and Newman. These values in turn also exercise influence at the organizational level. (2008) International Dimensions of Organizational Behavior (5th edition) Prentice Hall Browaeys. these values playa major role in affecting an individual motivations. G. G. M. M (2005) Communicating across cultures at work (2nd edition) Palgrave Macmillan Hofstede. (2008) Understanding Cross-cultural Management FT Prentice Hall French. (2004) An Introduction to Intercultural Communication: Identities in a Global Community Sage .attitudes and behavior which community adopts. R. can be listed as follows: · Family Security · Family Harmony · Parental guidance · Age · Authority · Compromise · Devotion · Very Patient · Indirectness · Hospitality · Friendship · Formality/Admiration · Past and Present · Religious Belief · Tradition · Social Recognition · Reputation · Friendship · Belongingness · Family Network As culture has been described as a set of beliefs. R. K.
Bochner. R. and Barsoux. A. & Shortland. S. Schneider. S. S.choices and consequences in multinational people management London: Kogan Page. and and Kâgitçibasi. S. and Furnham. (2001) The Psychology of Culture Shock Routledge. J-L (2002) Managing Across Cultures (2nd edition) Prentice Hall Journals: Cross-cultural Management International Journal of Human Resource Management International Journal of Cross-cultural Management . Understanding cultural diversity in Business (2nd edition) Nicholas Brealey Ward. Schneider. J-L (2003) Managing Across Cultures (2nd edition) Prentice Hall Smith. C. F.Mead. C. and Hampden-Turner. S. (2005) International Management: Cross-cultural Dimensions (3rd edition) Blackwell Perkins. Ç. P.B..H. (2006) Strategic International HRM . (2006) Understanding social psychology across cultures: living and working in a changing world Sage Trompenaars. Bond. M. (1997) Riding the Waves of Culture. and Barsoux.
often blunt communication Non-verbal behavior less important Explicit information given. 6. 3. the way they handle the problem which differs from culture to culture. They developed the approaches of Cultural Dimensions along with the dominant value system. Whilst this means that more explanation is needed. ambiguity avoided Meaning directly conveyed relationships are shorter-term Low context and High context. High context depends heavily upon: external environment situational context non-verbal behavior meaning indirectly conveyed relationships are long-lasting agreements may be verbal & changeable 5.2 Low context In a low-context culture. 4. Context 5.1 Hall's cultural factors Edward T. Many researchers have conducted the study on Cross Cultural Management. They are similar in some respect and different in others. The cultural dimensions reflect the basic of the society. . He is known for high context cultural factors and low context cultural factors.21 1 2 3 4 5 6 Low context depends heavily upon: External environment less important Direct.11 High context High-context culture has many related elements for people to understand the rule which otherwise can be very perplexing for people who does not understand the 'unwritten rules' of the culture. it also means there is less chance of misunderstanding particularly when visitors are present. 5. These approaches can be summarized as the various works of thinkers and researchers. 5. During World War II the foundation for his research on cultural perceptions was laid when he served the U.S. Army in Europe and Philippines. which affects the smooth functioning and the success of the organization. 5.CHAPTER 5 MODELS OF CROSS CULTURAL MANAGEMENT Leaders of Multi National Organizations today encounter cultural differences.12 1. 5. 2. very little is taken for granted. Hall was an anthropologist who worked on the key cultural factors.
para-verbal cues. the lines. . relationships. ―meaning and context are inextricably bound up with each other‖ (Hall. 2005). Task more important than relationships Relationship more important than task. All cultures are to be found in relation with one another through their communication style.de). changing as needed People bonds Strong people bonds with affiliation to Fragile bonds between people with family and community little sense of loyalty. eye movement. Strong sense of family. with Many overt and explicit messages Overtness of messages use of metaphor and reading between that are simple and clear. Level of commitment to relationships. outward reaction Cohesion and Strong diistinction between ingroup and Flexible and open grouping separation of groups outgroup. 2005). patterns. inward reactions Visible. High commitment to long-term Low commitment to relationship. 36 as presented in Wurtz. Low-context communication is primarily through verbal communication that is in written and oral – most of the information is in the in the plain code. This is the easiest concept to define culture and intercultural encounters. and the Swiss. Japan and Arab countries have high. Germans. such as Scandinavians. 2005). These transactions feature pre-programmed information that is in the receiver and in the setting. Flexibility of time Time is highly organized. Inner locus of control and personal Outer locus of control and blame Locus of control and acceptance for of others for failure attribution for failure failure Use of non-verbal communication Expression of reaction Much nonverbal communication More focus communication language on than verbal body Reserved.context communication culture. 2006). 2006 and www.Hall posits. external. High-context communication involves implying a message through non verbal communication. with only minimal information in the transmitted message (Hall. are predominantly low-context communicators (Wurtz. 1976 as presented in Dahl. Cultures. Product is more important than Process is more important than product process 5. ( Wurtz. p. 2000. Time is open and flexible. and the use of silence (Wurtz.Factor High-context culture Low-context culture Many covert and implicit messages.via-web. 2005).3 High-Context versus Low-Context Cultures Hall affirmed high-context and low-context cultures where the high and low context conception is chiefly concerned with the way information is transmitted (communicated) and where context has to do with how much you need to know before you can communicate effectively (Dahl. that involves communication through body language.
42 Individualism vs.Achievement-oriented countries include Austria. and negotiations are made on the spot. This is predominantly factual for up-and-coming markets unacquainted to deal with people from more developed countries.‖ Fons Trompenaars is one of the 50 most influential management thinkers alive. if not the most important. as status is accorded based on their actions. Highly individualistic countries include Canada. the United Kingdom and the United States. The emphasis is on individual responsibility and decision-making. 5. process in their organization. It is about the rights of the individual which seeks to let each person grow or fail on their own. most very well understand that it is a very important. and team work is seen as denuding the individual of their inalienable rights.4 TROMPENAARS' CULTURAL FACTORS ―It is still amazing how reluctant leaders are to tackle the whole issue of the intercultural realities of their organization. Status is attributed to who or what a person is. which may be as much luck as judgment. 5. Ascription Achievement culture is based on performance. the United Kingdom and France. Communitarianism Individualism culture is when people make their own decisions and they work for individual success. When designing sales strategies International trade consultants and lawyers consider these cultural dimensions.41 Achievement vs. the United States.5. Deep inside. A Dutch culturalist has done his intensive study into international culture. . Ascription culture is based on the assumption that status is through other means as is acquired by right rather than daily performance. gender and social connections. He teamed with Charles Hampden-Turner (a dilemma enthusiast). to understand individuals. This is based on age. where buyers and sellers are from different cultures. High achievers are given status in Achievers and they must continue to prove their worth. Switzerland. Professor Trompenaars premeditated and analyzed the problem resolution behaviour of the people of different culture in their specific countries and identified 7 basic dimensions for culture.
China. People are easily accepted into the public space. the United Kingdom and the United States show a strong severance between public and private life. like the United States. Many Asian countries have an external culture in which the environment shapes their destiny. The public space of specific individuals is much larger than their private space. It is about thinking and personal judgement.46. All elements are related to each other. trust. Emotional In neutral cultures emotions are held in check. Example USA. countries like Japan and the United Kingdom where people do not show their feelings. group. Externalist culture refers to the outer world. Spain and Venezuela are examples of diffuse cultures where work and private life are closely linked but intensely protected. . 5. In specific cultures. Countries like Austria. It sees Communitarianism as selfless and far-sighted. ‗in our heads‘. standards. Specific individuals concentrate on hard facts. the whole is the sum of its parts. Neutral vs. diffuse culture people guard both spaces carefully Diffuse individuals have a large private space and a small public one. External Internalistic culture people believe that what happens to them is their own doing. company and country before the individual. understanding.45 Specific vs. demeanor. Internal vs. Switzerland. It assumes that thinking is the most powerful tool and that considered ideas and intuitive approaches are the best way. Synchronization Time as sequence sees events as separate items in time. 5. ambiance. Communitarianism culture prevails in the country like Japan that gives importance to the group before the individual. It put the family. decisions are referred to committees and groups jointly assume responsibilities. Interactions between people are highly purposeful and well-defined. In an emotional culture. People from diffusely oriented cultures start with the whole and see each element in perspective of the total. Diffuse People from specific cultures take specific elements into consideration. Like most introverts. and contracts. People with sequence culture will like to do one work at a time.Communitarianism culture is about the rights of the group or society. Sequence vs. 5. Mexico. people profusely express their feelings naturally and openly. Because they don‘t believe they are in full control of their destinies. They analyze the issues separately.43. The qualities that are cherished by diffuse cultures are style. during excitement they talk loudly and show great enthusiasm while greeting people. Success is achieved in groups. Netherlands and Switzerland are high-emotion countries. It finds order in a actions that happen one after the other. but it is very difficult to get into the private space. 5. sequence one after another. They smile a lot while they interact.44. and then they put them back together again. etc. It assumes that we live in the 'real world' and that is where we should look for our information and decisions.
Subordinates view their boss as a benevolent autocrat and they follow him blindly. • Importance of security and restrictions or barriers to access: explicit. When no rules fit. Countries with low PD are apt to view subordinates and supervisors as closer together and more compatible. • Focus on expertise.51 Universalism vs. or employees. Hofstede identified five dimensions and rated 53 countries on indices for each dimension. and acting that are well-established by late childhood. It finds order in coordination of multiple efforts. with flatter hierarchies in organizations and less difference in salaries and status. ideas and practices cannot be applied the same everywhere.vs. nationalism or religion) and its symbols: significant/frequent vs. weak. minor/infrequent use.49 Power Distance (PD): Power distance is the extent to which people with less power expect and accept people with higher power within a culture. enforced. Particularism Universalism is about finding broad and general rules. citizens. official stamps. Indonesia and Venezuela. 5. Power distance may influence the following aspects • Hierarchies in mental models: tall vs. integrated. the Dutch cultural anthropologist Geert Hofstede conducted detailed interviews with 1lakh 16 thousand employees of IBM in 53 countries. shallow. In other words people of synchronized culture will like to take multiple tasks together and they juggle with them for their completion for example in the cultures like France and Mexico. When no rules fit. customers. masculinity • Uncertainty avoidance • Long. Countries that practise high particularism include China. short-term orientation 5. Australia. transparent. Through standard statistical analysis he formulated his theory that world cultures vary along consistent.. synchronized together. rather than trying to force-fit an existing rule.g.) His focus was not on defining culture as refinement of the mind (or "highly civilized" attitudes and behavior) but rather on highlighting essential patterns of thinking. Germany. or logos: strong vs. 5. It tends to have centralized power and reveal tall hierarchies in organizations with large differences in salary and status. feeling. experts. His five dimensions of culture are the following: • Power-distance • Collectivism vs. (One weakness is that he maintained that each country has just one dominant culture. frequent restrictions on users vs. certifications. • Prominence given to leaders vs. implicit freedom to roam. Particularistic peoples believe that circumstances dictate how ideas and practices are applied. authority. fundamental dimensions. Universalistic countries focus more on formal rules than relationships. it changes according to the requirements and culture. • Emphasis on the social and moral order (e. America is highly universalistic Particularism is about finding exceptions. individualism • Femininity vs. Sweden and the United Kingdom are universalistic countries. . Therefore.Time as synchronization sees events in parallel. The culture place more emphasis on relationships than rules. it finds the best rule.48 Geert Hofstede‘s Cultural Factor During 1978-83.
a managers‘ section obvious to all but sealed off from non-managers): frequent vs. Culture with high-masculinity index would focus on the following elements: • Traditional gender/family/age distinctions • Work tasks. and subordinates. Traditional feminine work includes building relationships with supervisors. recognition. will give their best to achieve behavioral goals. and strive to maintain the relationship. Traditional masculine work includes earnings. and employment security to the employees. wise leaders are given importance. collectivist cultures give significance to learning.g. Hofstede focuses on the traditional obligation of audacity. physical environment. advancement.51 Masculinity vs. Individualism and collectivism may influence the following aspects of individual‘s working behaviors. Collectivism implies that people are social well beings and are incorporated since birth into strong. roles. Collectivism (IC): Individualism in cultures is when individual is anticipated to look only after one‘s self or immediate family but no one else. people. and the intrinsic rewards of expertise. • Motivation : For individualist cultures. 5. At work. • Rhetorical style: For individualist cultures it includes controversial or argumentative Speech and for collectivist cultures it comprises of official slogans and submissive exaggeration and controversy • Prominence: For individualist cultures prominence is given to youth whereas in collectivist cultures aged. it is demonstrated all the way through materialism and consumerism and for collectivist cultures it is of social-political agendas. rivalry. and mastery.50 Individualism vs. look to provide good living and working conditions. is based on personal achievement and for collectivist cultures it is in favor of group achievement • Images of success: For individualist cultures.• Social roles used to organize information (e. they emphasis more on harmony and integrity. with quick results for limited tasks • Attention gained through games and competitions Feminine cultures would emphasize the following: • Blurring of gender roles . skills. peers. Femininity (MAS): Masculinity and femininity submit to the gender roles.. interconnected groups. and challenge. experienced. and sturdiness to masculinity and roles such as looking after home and children. infrequent 5. and empathy to Femininity. In personal life.
High-UA cultures would put emphasis on the following: • Simplicity. These cultures tend to be expressive. and aggressive and avoid uncertain situations. and appeals to unifying values 5. • Virtuous behavior to others means not treating them as one would not like to be treated. exchange. punctuality. These cultures tend to be less expressive and less openly anxious.53 Long. . and sound to maximize information(multiple links without redundant cueing. visual aesthetics. Cultures differ in their tolerance to uncertainty. and relational support (rather than mastery and winning) • Attention gained through poetry. older people (parents) have more authority than younger people (and men more than women). Hofstede and Bond found such countries shared the following beliefs: • A stable society requires unequal relations. and restricted amounts of data • Attempts to reveal or forecast the results or implications of actions before users act Cultures with Low UA would emphasize on the following • Complexity with maximal content and choices • Acceptance (even encouragement) of wandering and risk.• Mutual cooperation. • The family is the prototype of all social organizations. Michael Bond convinced Hofstede that a fifth dimension Long. with a stigma on ―over-protection‖ • Mental models and help systems might focus on understanding underlying concepts rather than narrow tasks • Coding of color. Short-Term Time Orientation (LTO) In the early 1980s. and relationships and help to make events clearly interpretable and conventional. Short-Term Time Orientation is needed to be added to the cultural dimensions. and relaxed.) 5.vs. and tolerance for uncertainty.52 Uncertainty Avoidance (UA): Uncertainty Avoidance is the extent to which people differ in the degree to which they feel angst about uncertainty or unknown situations. limited choices. Long-Term Orientation plays an important role in Asian countries that had been influenced by Confucian philosophy over many thousands of years. legal-religious-social requirements. People seem active. and focus on tactical operations rather than strategy. raise their voices. creating different rituals and having different values regarding formality. institutions. people behave quietly without showing aggression or strong emotions People appear easy-going. consequently.vs. The low UA cultures businesses may be more informal and focus more on long-range strategic matters than day-today operations. and show emotions. require longer career commitments. emotional. and expect structure in organizations. people talk with their hands. with clear metaphors. Hofstede noted that cultures with high uncertainty avoidance tend to have more formal rules. typography.
Cross-cultural psychology has two broad aims: to understand the differences between human beings who come from different cultural backgrounds. and find fulfillment through creativity and self actualization. Countries with high LTO cultures would emphasize on the following aspects • Content focused on practice and practical value • Relationships as a source of information and credibility • Patience in achieving results and goals Countries with low LTO countries would emphasize on the following • Content focused on truth and certainty of beliefs • Rules as a source of information and credibility • Desire for immediate results and achievement of goals Hofstede notes that some cultural relativism is necessary: it is difficult to establish absolute criteria for what is noble and what is disgusting. by contrast. Western countries. gentle or aggressive) to the social (we all relate to our parents and siblings). The similarities may be sought at all levels . These trends and tendencies should not be treated as defective or used to create negative stereotypes but recognized as different patterns of values and thought. all people develop cultural values based on their environment and early training as children. Of the 23 countries compared. There is no escaping bias. act. and being frugal. the following showed the most extreme values: China (ranked 1) Japan (4) USA (17) Pakistan (23) Based on this definition. and persevering. Not everyone in a society fits the cultural pattern precisely. or relative distance). to the personal (we can be both happy and sad. it is necessary to cooperate to achieve practical goals without requiring everyone to think. In a multi-cultural world. . to the cultural (we all share cultural norms with others of the same cultural background).• Virtuous behavior in work means trying to acquire skills and education. and believe identically. but there is enough statistical regularity to identify trends and tendencies. focus on treating others as you would like to be treated. patient. working hard. and to understand the similarities between all human beings. were more likely to promote equalrelationships.from the physiological (our eyes are able to perceive colour) through the cognitive (we are also able to perceive perspective. emphasize individualism. Hofstede and Bond concluded that Asian countries are oriented to practice and the search for virtuous behavior while Western countries are oriented to belief and the search for truth.
They suggested that the solutions for these problems preferred by a given society reflects that society's values.good. He defined a value as: "A conception. 3. Florence Kluckhohn and Fred Strodtbeck set out to operationalise a theoretical approach to the values concept developed by Florence's husband. What is the prime motivation for behaviour . 2. to grow ("Being-in-becoming"). or Far Away) but did not explore it further.past. 5. p 395). There. measurement of the preferred solutions would indicate the values espoused by that society. 1951. 5. They started with three basic assumptions: "There is a limited number of common human problems for which all peoples must at all times find some solution". "While there is variability in solutions of all the problems. Kluckhohn and Strodtbeck also suggested a sixth value dimension of Space (Here. and those of others are strange.mastery. Four basic questions and the value orientations reflected in their answers. present or future? What is the relationship between Humanity and its natural environment . 1. They then speled out the possible answers to each of the questions. 3.61 Florence Kluckhohn and Fred Strodtbeck developed a theory which put these principles into action.62 Table 1. "All alternatives of all solutions are present in all societies at all times but are differentially preferred". Clyde Kluckhohn (1949. Consequently.6 One theory of basic human values which has been very influential is that of Kluckhohn and Strodtbeck (1961). of the desirable which influences the selection from available modes. bad ("Evil") or a mixture? 1. arguing that the preferred answer in any society reflects the basic orientation of the society to that aspect of its environment. submission or harmony? How should individuals relate with others . 1952). The orientations to each question are shown in Table 1. . it is neither limitless nor random but is definitely variable within a range of possible solutions".hierarchically (which they called "Lineal"). He argued that humans share biological traits and characteristics which form the basis for the development of culture. and that people typically feel their own cultural beliefs and practices are normal and natural. or even inferior or abnormal. They suggested five basic types of problem to be solved by every society: On what aspect of time should we primarily focus . as equals ("Collateral"). and on preserving and maintaining traditional teachings and beliefs. distinctive of an individual or characteristic of a group.5. Question Time Orientation Past Description We focus on the past (the time before now). What is the nature of human nature . means and ends of action." (Kluckhohn. explicit or implicit. or according to their individual merit? 4. 2.to express one's self ("Being"). or to achieve? 5.
Motive for behaving Being Being-in-becoming Achievement (―Doing‖) In proposing orientations to the Nature of Human nature question. or whether we are born the way we are . and seeking new ways to replace the old. and that of mutability. emphasising activity valued by our self but not necessarily by others in the group Motivation is to develop and grow in abilities which are valued by us. emphasising activity that is both valued by ourselves and is approved by others in our group. nature and the super-natural We can and should exercise partial but not total control by living in a balance with the natural forces We cannot and should not exercise control over natural forces but.Present We focus on the present (what is now). planning ahead. although not necessarily by others Our motivation is external to us. rather. are subject to the higher power of these forces.good. We focus on the future (the time to come). and in. bad or mixed. and on accommodating changes in beliefs and traditions. We can and should exercise total control over the forces of. Kluckhohn and Strodtbeck suggested that there are two dimensions involved . Future Humanity and Natural Environment Mastery Harmonious Submissive Relating to other people Hierarchical (―Lineal‖) Emphasis on hierarchical principles and deferring to higher authority or authorities within the group As equals (―Collateral‖) Individualistic Emphasis on consensus within the extended group of equals Emphasis on the individual or individual families within the group who make decisions independently from others Our motivation is internal.
L. Mexican-Americans. (1961). Since then other theorists have also developed theories of universal values . Values and Value Orientations in the Theory of Action. In doing so. F. however. K. However the theory developed by Kluckhohn & Strodtbeck remains widely used and has sparked a good deal of research . (1980).). Culture's Consequences: International differences in work-related values. Kluckhohn.: Sage. Calif.: Sage. Moreover they suggested that "mixed" may mean either both good and bad. Hofstede. G. and questions to probe the value orientations used by members of those cultures in dealing with the situations involved. Toward a General Theory of Action. and Zuni pueblo dwellers. (2001). attracted over 400 delegates. Beverly Hills. however they were able to develop real-life situations relevant to all five cultural groups. A. which has in turn generated new theories. Shils (Eds. for instance. Though their work our understanding of ourselves as human beings has been increased. Kluckhohn. They were then able to draw value profiles of each group. they did not attempt to develop measures of the Nature of Human Nature orientations. (1949). Evanston. Kluckhohn. Although the Kluckhohn and Strodtbeck theory was derived half-way though last century it has generated much further research. These included itinerant Navaho. F. Variations in Value Orientations. institutions and organizations across nations Beverly Hills. A conference of users of the theory in 1998 (Russo. Kluckhohn & Strodtbeck interviewed members of five different cultural groups in the South-West USA. Texan homesteaders. Peterson . Hofstede (1980. C. Mormon villagers. To test their theory out. Culture's Consequences: Comparing values. showing the ways in which they differed from each other. All of this work was published in their 1961 book.and cannot change. Calif. or neutral.: Row. For the remaining four dimensions. MA: Harvard University Press. In T.as any good theory should. K. behaviors. and the ways in which they were similar. C. (1951). Ill. G.notably Rokeach (1979). Hofstede. and immediately made a strong impact on cross-cultural psychologists. K. & Strodtbeck. (1952) Culture: A Critical Review of Concepts and definitions. Mirror for Man Kluckhohn.R. C. 2001) and Schwartz (1992). finding them too complex. Cambridge. 2000). or can learn to change (in either direction). Parsons and E.
The Americans are sentient of the differences in spite of the fact that they have experienced economic revolution." Northeast region has been overtaken by California‘s Silicon Valley which once upon a time was the leader in technology and industry.Chapter 6 MNANGEMNT STYLE OF UNITED STATES OF AMERICA Until the political formation of the United States. The Northeast part of United States is densely populated. With the decline in the automobile and steel industries which were central to community and economy the Great Lakes area of the upper Midwest. . The South region are known as the sunshine states. this was referred to South America. The country has political and economic dominance of Anglo. and new economic frontiers. is now known as the rust belt. The inheritance of slavery and the persistence of economic and social inequalities based on race is the defining characteristic of this country. The people are mobile and often leave their regions of origin. The Midwest is the abode of the family farm and is the "corn belt" and "breadbasket" of the nation and is both rural and industrial. Its widespread strip of urbanization is called as national "megalopolis. Modern uses of the term United States emphasize the country's political and economic dominance in the western region. retirement havens. the name "America" was used to refer and after the Revolutionary War.
D. The United States is the world's fourth largest country. Its forty-eight contiguous states are situated in the middle of North America. The mainland United States borders Canada to the north and Mexico. Washington.C. with an area of 3. It includes fifty states and one federal district.The West has the nation's most open landscape and unlimited opportunity and individualism.529.107 square kilometers).679. and to the east lie the Atlantic Ocean. The western border meets the Pacific Ocean. . and the Straits of Florida to the south. the Gulf of Mexico.192 square miles (9. where the capital. is located..
6. and fast foods. When there is any reason to protest in US they represent flag. northern abolitionists hoisted the flag upside down to protest the return of an escaped slave to his southern owner.2 URBANISM. These languages include Dutch. African languages and less widely spoken languages such as Basque. Thus. Asian. Yiddish.The flag of United States is the powerful national symbol. AND THE USE OF SPACE The United States has numerous states which are either urban or suburban. language has become an important aspect of the debate over the meaning or nature of American culture. As the twenty-first century begins. convenience. and Greek. each having its own history of economic development. It is made up of stripes symbolizing the original thirteen colonies and fifty stars representing the fifty states. but by the midtwentieth century its industries had declined and much of its middle class population had relocated to the suburbs. and junk foods. immigrants. It became an important industrial center in the nineteenth century. and regional variants. they speak a range of class. spoken English reflects the nation's immigration and history. ARCHITECTURE. 6. ethnic.Exterior facade of United States capital in Washington DC Americans are expected to speak Standard English. Chicago and Los Angeles have emerged as important cities in connected world. In the nineteenth century. For example New York was founded by the Dutch which was the hunting and fishing grounds of Native Americans. and slaves. most Americans do not speak Standard English. instead.1 SYMBOLISM. Like New York.. It is estimated that 60 percent of Americans are obese. New York is a "global" city resurrected from decline by its role as a center of finance in the world economy. The average diet is high in salt. Scandinavian. Spoken English has many dialects which are been influenced by Native Americans. 6. Americans as a whole enjoy the taste of hamburgers. Spanish has become more widely spoken. and upside-down flags continue to be used as a sign of protest. fat.3 FOOD AND ECONOMY Americans eat large amounts of processed. . However. German. hot dogs. and refined carbohydrates.
including high quality fresh and local produce. The judicial branch consists of the Supreme Court and the U. imported cheeses. Court of Appeals.7 MARRIAGE AND FAMILY Marriage is formally a civil institution but is commonly performed in a church. The powers and responsibilities of the Federal government are set out in the Constitution. fine coffees. Stratification is in evidence in many aspect of daily life. are available in every city and in many towns. Half of all adults are unmarried. The national government consists of three branches viz-a. . The country produce more than it requires in the country and therefore it‘s the world's leading exporter of food. 6. The social segregation of blacks and whites in cities mirrors their separation. women are often up to middle-management positions. Rates of marriage are higher among whites than among blacks. With the exception of local-level offices.viz the executive. Basic Economy. marriage appears to be on the decline. politics is highly professionalized: most people who run for political offices are lifelong politicians. . Gourmet foods. With a few exceptions. it appears that the gap between rich and poor is growing. including those who have never married and those who are divorced. gourmet. The legislative branch includes members elected to the upper and lower houses of Congress: the Senate and the House of Representatives. The degenerating houses of blacks in the inner cities are contrasts with giant homes of whites in the suburbs all across the country is the mark of demarcation. cleanliness. regional. the "glass ceiling" keeps women out of high management positions. which was adopted in 1789.4 SOCIAL STRATIFICATION Americans do not believe in caste or class rather they believe in equal opportunity. The gross national product is the largest in the world. In general. The executive branch includes the President and federal agencies that regulate everything from agriculture to the military. strong regional or Spanish accents are associated with working-class status.S. 6. Secretarial or lowlevel administrative jobs are called as pink collar jobs as they are predominantly occupied by females. However only the top 1 percent of the population has made significant gains in wealth in the last few years.6 GENDER ROLES AND STATUS W omen are paid less as compared to women though they say they give equal opportunity to males and females as women are paid seventy cents to every dollar what male earns for the same or comparable job.Industrial food producers use advertising to associate processed foods with the desirable modern and industrial qualities of speed. Similar gains have not been made by the poorest sectors. Speed of preparation was essential in a nation of nuclear family and therefore. and efficiency. With some exceptions. The political system is dominated by two parties: the Republicans and the Democrats. Gambling and lotteries are very popular in America. the legislative and the judicial that are intended to provide "checks and balances" against abuses of power. In the whitecollar world. Statistically. and alternative styles of eating are highly influential. 6. 6. The United States has highly mechanized industrial economy which is very advanced.5 POLITICAL LIFE The United States is a federal republic composed of a national government and fifty state governments. Leadership and Public Officials. and European kinds of bread.
With the exception of Vermont. Classic clothing with typical colours of navy. 6. It includes dark coloured business suits in typical colors of gray and navy. ivory. Men may conduct business without wearing a jacket and/or tie. but Americans value emotional and bodily restraint. The typical model of the family is the nuclear family consisting of two parents and their children. The high rate of divorce and remarriage has also increased the importance of stepfamilies. But the part of the country where it is extremely warm summer women use to dress up in business dress. Attires of women includes a suit or dress with jacket. For an important formal meetings. or skirt and blouse. gray. 6. Casual clothing is appropriate when not attending a work related meeting/dinner. they prefer to wear a white shirt and for less formal meetings a light blue shirt can do. and white gives a confident and conservative appearance. Bodily restraint is expressed through the relatively large physical distance people maintain with each other.8 ETIQUETTE Personal posture appears to be insensitive. loud.70 Behavior . gay marriages are increasingly common whether or not they are formally recognized by the state. especially men. and demonstrative to people from other cultures. The permanent smile and unrelenting enthusiasm of the stereotypical American may mask strong emotions whose expression is not acceptable. civil unions are legal only between heterosexual adults. Some religious denominations and churches recognize and perform gay marriages.9 APPEARNCE Business suit and tie are apt every part of Unites States of America. 6. However.
It is important to have a good eye contact during handshake.. An invitation for a meal or a modest gift is usually acceptable. or dinner meetings depending on time schedules and necessity. If they are meeting several people at one time.. it is polite to take a small box of good chocolates or a bottle of wine or a potted plant or flowers for the hostess. a call should be given proclaiming the expected delay. sincerity and confidence. with a 30 to 60 minute lunch break. they will maintain eye contact with the person with whom they are shaking hands . Good friends may give a brief embrace. to 5 or 6 pm. luncheon meetings. Business meetings may be arranged as breakfast meetings. Good eye contact during business and social discussion shows interest. gifts are given on the occasion of birthdays.Business discussion may take place during meals. or Mrs. They use the prefixes such as Mr.. Many public places and private homes do not allow smoking. is treated as a social meal and a time to build rapport. anniversaries and on Christmas.71 Communications People of USA offers firm handshake lasting for 3-5 seconds when they greet or at the time of leaving. The larger the city. They generally open the gift in public.73 Punctuality Punctuality is a very important rule of business etiquette. It can include a simple card with a personal note written on it. Ms. However. 6.30 or 9. If gift is given it should not appear to be a bribe. Gift giving is discouraged or limited by many US companies. . until they move to the next person. 6. A gracious written note is always appropriate and acceptable. more formal is their behavior. . Every effort is being made to arrive on time to any scheduled meetings or appointments. many times more social discussion happens during the actual meal. If the person is late for the meeting or an appointment. and their full name when they introduce themselves. even though for business purposes. 6. In some areas laws have been passed to prevent smoking in public places.00 a. 6. People stand in a queue and wait for their turn. A smile is a sign of friendliness. If the person is invited to someone's home for dinner. Generally a dinner.74 Etiquettes of Gift Giving In general.72 Business hours The normal business hours are Monday to Friday from 8.m. Chewing of toothpick in public is not considered as good. They seek permission if they need to smoke. They generally exchange business cards during introduction.
D. Graham. Newbury Park: Sage Publications. They can refuse to the specific foods or drinks without offering an explanation. Fisher. no more than 10 minutes late if invited to a small party. They always leave a small amount of food in the plate when finished eating. References Binnendijk. Germany. .G. To use the knife. "Marketing Negotiations in France. But if the fork and knife is laid parallel to each other on the right side of the plate it indicates the meal is over. and the United States. 48-54. It is against the dinning etiquette to put the napkin in the lap as soon as one sits down. International Negotiation: Across-Cultural Perspective. the fork is switched to the left hand. Table manners are more relaxed in the U. Hans. ed.). Faure. A cross with knife and fork on the plate indicated the person is not through with his meals. John L.6. et al.75 Etiquettes of Dining It is important to arrive on time if invited for dinner. Dept.S. 49-62. To continue eating. the United Kingdom. the fork is switched back to the right hand.(1988).: U. Yarmouth. N. If the party is large late upto 30 min is acceptable.C. than in many other countries. "Culture and Negotiation: An Introduction" in Culture and Negotiation (Faure and Rubin eds. "Buyer-Seller Negotiations Around the Pacific Rim: Differences in Fundamental Exchange Processes. National Negotiating Styles. of State. (1987). The fork is held tines down. Glen (1980). Campbell. Guy-Olivier and Gunnar Sjostedt (1993).S. The knife is used to cut or spread something." Journal of Consumer Research 15.C. They generally serve the food in large serving dishes and are passed around the table for everyone to serve themselves." Journal of Marketing 52. Maine: Intercultural Press. The fork is always held in the right hand and is used for eating. (1988). It is not advisable to start eating until the host starts or says to begin. There are many foods which can be eaten by hand. et al. Washington.
542. Houston: Gulf Publishing Company. 153-170. Negotiation -. Newbury Park.Graham. New York: Doubleday. Negotiation Theory and Practice. E. L. Salacuse. Anthropology: The Study of Man (4th ed. Roy et al. A. Jeswald W. Stripp (1991). and William G. . Hall. Herberger (1983).Don't Shoot From the Hip: Cross Cultural Business Negotiations. Culture's Consequences: International Differences in Work-Related Values. Mass. (1991). Hofstede. & Hain.(1990). Boston: Houghton Mifflin. Maine: Intercultural Press. Lewicki. Gunn. Cambridge: PON. Adamson (1972). Robert T. Edward T.: Oelgeschlager. 61. Successful International Business Negotiations. Moran. Irwin. AAPSS. Inc. Kolb." Breslin & Rubin. Hoppman. Making Global Deal . 24-47. (1993). Geert (1980).CA: Sage Publications. 160-83. Edward T and Mildred Reed Hall. eds. Understanding Cultural Differences.Readings. Pye. Deborah M and Gloria G.) New York: McGraw-Hill. "Negotiators Abroad . Terrence (1995).. Hughes. "Her Place at the Table: A Consideration of Gender Issues in Negotiation." Harvard Business Review. Exercises and Cases. "Two Paradigms of Negotiation: Bargaining and Problem Solving. and R. The Silent Language. Chinese Negotiating Style. Hall. (1959). Philip and Brian Sheehan (1993). Cambridge." Business & The Contemporary World 5. Illinois: Richard D. Burr Ridge.Negotiating in the International Market Place. Yarmouth." Annals. John L. (1982). Coolidge (1991). Hoebel. "Business Cultures: The Transfer of Managerial Policies and Practices from One Culture to Another.
But I refuse to be blown off my feet by any. They believe in harmony which is the guiding philosophy for the family.3 Japanese Society & Culture Japanese culture does not turn down anyone‘s requests as they believe that this gesticulation can cause embarrassment and loss of face to the other person. business settings and society as a whole. But if they do not agree on the request they will say.416 (July 2008). island chain between the North Pacific Ocean and the Sea of Japan . Japanese people do not criticize. rather than the . and therefore children of Japan are taught individual.2 Japanese Language In Japan almost 99% of country‘s population speak Japanese making it the most spoken language of the world. 7. insult or put anyone on the spot openly. to work in a group. I want the cultures of all the lands to be blown about my house as freely as possible.1 About Japan Japan is located in Eastern Asia. It has the population of 127.Chapter 7 JAPANESE STYLE OF MANAGEMENT ―I do not want my house to be walled in on all sides and my windows to be stuffed. The education system of Japan accentuates the mutual dependency of people. They work together for the whole. The origin of the Japanese language has been predicted and approved to be close in syntax to the Korean language. particularly in Kyoto and Osaka.‖ . east of the Korean Peninsula.(Mahatma Gandhi ) 7. Japanese people are very polite and take personal responsibility. 'it's inconvenient' or 'it's under consideration'. Its capital is Tokyo. They follow both Shinto and Buddhism including Christianity 7. Colloquial language are used in areas.288.
which were the good products for export. 1. The areas that were giving benefit in the beginning like silk and tea. Those areas and their products that has a intricacy in the beginning. in the transition to import swapping and expansion of exports.4 History of Japanese-style management Tokyo Photos Tokyo Otemachi Business District An economic historian. and indigenous clothing.7. which suffered strong external competition (Yasuoka 1981). Those industries and products that were not affected by the international economy such as salt. cotton and wool. has cut off the three areas of industry where the Japanese style of management was first recognized subsequent the changes brought about by the Meiji Restoration. 3. 2. . materials for housing such as straw floor mats and wood. soy sauce. Yasuoka Shigeaki. for example. This procedure was most evident in the last group. soya-bean paste. Japanese-style management became firmly institutionalized. and shake and fuels such as coal and charcoal. where.
5. Japanese traditional form of greeting people is the bow. Every person has a distinctive position in the hierarchy. In Japan they greet each other in very formal and ritualized way. How much one bows is based on the relationship. tone of voice and posture. but a bonsai tree can be given. 7. 3. especially who is senior in age or status. a social or a business situation. Lilies. 4.5 BUSINESS MANAGEMENT STYLE Japanese Non-Verbal Communication 1. 7.7 1. 4. Never give anything in the number of nine. Non verbal communication is also being given due importance.6 2. It is also considered as disrespectful to stare into the person's eyes. whether it‘s a family unit. Gift Giving Etiquette People of Japan love to give and receive gift. Japanese do not give potted plants as they are considered as encouraging sickness. Making frowning faces when someone is speaking is understood as a sign of incongruity. 2. In a party they will be served first. it is highly ritualistic and significant and the way it is wrapped is also very important. Japanese Hierarchy. the extended family. Even white flowers of any kind are also associated with funerals. Japanese rely on facial expression. camellias or lotus are not given as the gift as they are associated with funerals.7. . 5. 7. People show great deal of reverence and regard to somebody who is higher in status or in the age. Japanese are cognizant of age and status and they follow it religiously. 6. 2. 3. The eldest person in a group is always honored. In crowded state of affairs the Japanese avoid eye contact to give themselves private space. Gifts are always wrapped in Japan and is never opened in public. Even at school children are made to learn to call the senior students as senpai and junior as kohai. Gifts are given for many occasions which can be a good quality chocolates or small cakes. 3. Meeting Etiquette 1.
4.9 Table Manners 1. or if it‘s pointed towards the person or crossed when putting them on the chopstick rest. Japanese rarely invite anyone to their house. People in Japan follow the protocol very religiously. so one wait unless they are being said where to sit. Generally they do not like any discussion at the table as they like to relish their food. 2. 7. The eldest person or the honored guest is made to sit in the center of the table and he starts with the eating first. One is supposed to remove their shoes pointing away from the doorway before entering the house. 7.10 Dealing with the Foreigners 1. Personal relationship is very important and Japanese like to do business with people with whom they have . therefore they learn how to use the chopsticks. 5. It is good to give greetings cards or seasonal cards to maintain relationship. They can tolerate mistakes till the time they show respect.7. 3. It is not appreciated if one arrives late for more than 5 minutes late if invited for dinner. 7. It is always advisable to put bones on the side of the plate. 2. People of Japan realize that foreigners cannot work in Japan. 7. and leave a small amount of food on the plate when finished eating. People always dress in formal unless being told that the occasion is informal. but if it‘s a large social assembly arriving bit late can be accepted 3. 2.8 Dining Etiquette 1.12 Business Meeting Etiquette 1. Its always advisable to return the chopsticks in its rest after every few bites or when speaking or drinking. People in Japan do not like if they pierce food with chopsticks.11 Associations & Communication the relationship. 2.
They have a difficult time saying 'no'. Be patient and try to work out as Japanese remain silent for long period of time. 4. 3. 2. position. They give their business card facing Japanese side to the beneficiary. They believe in written contracts. 2. It is require to take appointments and preferably one week in advance for meetings. Hierarchy is followed. so you must be vigilant at observing their non-verbal communication.profitable it may appear as they look for long-term 7. 1. They prefer board agreements and mutual understanding so that when problems arise they can be handled flexibly. The Japanese exchange business cards when they meet people. The card is in Japanese. 1. Group decision-making and consensus are important. They even close their eyes if they are listening attentively. It is desirable to accept the request. Japanese go for conventional business attire. they want that both the parties to come with their best offers. business suits and women dress up conventionally. 4. 7.15 Dress Etiquette Men prefer to wear dark-coloured. one may loose the deal.1. Punctuality is important. 3. They keep the room open for re-negotiation as they not take the contracts as final agreements. Business Cards to have one side of the business card translated into Japanese. They keep quality cards with them and keep their cards in immaculate condition. Japanese do not confront and do not say ‗no‘ and give importance to non verbal communication. 5. with the rest of the people in descending rank until the most junior person is seated closest to the door. it is not acceptable to raise voice or loose temper. 1. During negotiation with the Japanese. It is important to arrive on time for meetings. and age.14 2. Japanese rarely compromise. 3. 7. The most senior Japanese person will be seated furthest from the door. 6.13 Business Negotiation relationship. how so ever difficult or non. So it is advised . 2. and they respect people who are higher in status.
. only three passed.000 in German. and he was notably abstemious in both wine and women. Honda not only proved that you could. though. was no more promising. Superdesign went with super-efficiency in production engineering. Out of 50 piston rings tested in Honda's first manufacturing venture. His 1947 notion. Honda invested $450. European manufacturers believed it was impossible to run motorcycle engines at 15. said one baffled journalist. to make them aware of the status the person is holding in the organization and during the meeting it has to be placed in front of the person owning the card on the table which can be kept in the business card case at the end of the meeting. It is compulsory that the business card should include the title of the person. the great man admitted that he didn't understand computers. Five years later. manager and entrepreneur The romantic image of the founder-millionaire wearing overalls. was only one factor in his decision to take relatively early retirement. with even faster bursts. Henry Ford I didn't totally surrender power until death took over the decision. though an eccentric one. Like Ford.000 rpm. the business failed. 'Mr Honda'. to make motorized bicycles with two-stroke engines adapted to run on pine-root extract. whose first business efforts were littered with failures and false starts. while in sex his 'powers of doing and recovery' weren't what they had been. Swiss and American machine tools.' In contrast to Honda. With the Japanese market in recession. and deserved the description. I should quit the life of an entrepreneur. He also couldn't drink so much sake as before. In his early sixties. So it was with Soichiro Honda. tinkering visibly with some mechanical marvel in workshop or lab.. Yet Honda was known as 'the oriental Henry Ford'. is often reality.16 Japanese Business Culture: Soichiro Honda. Honda learmt the principles of efficient production quality the hard way. 7. however. in many ways the least typical of the post-war Japanese economic victors: but simultaneously the most visible archetype of the success of Japanese business culture. but also started to win Grand Prix races all over the world. ' is a management executive who always wears red shirts and tells naughty stories when drinking. At Honda's motorcycle plants not a single storeroom .4.' The drinking was important to Honda. The fact that he couldn't keep up with the technology. Honda came of technological age.taking them apart to see how they were made: and discovering that their best was simply not good enough.' and 'without sex and sake. He then 'reverse-engineered' the European bikes he was copying . Not surprisingly. reckoning that they were the best in the world.
. 'What do you think of the pay offer you're making to us?' According to author Tetsuo Sakiya.much too direct in the early days. and BSA. if he leaves tasks to other companies. As a top Honda man later explained.' The result was the Civic. There's the indefatigable inventor who (as with the non-polluting engine) prefers to create his own technology because. a 'world car': he undertook deep global research. Honda's strength was to be ahead or abreast in all the improvements to the car in his time. to judge by one anecdote. the Japanese car establishment refused to take Honda's car plans seriously especially when they saw his first. Honda recovered from his false start to build. very deliberately. with workers at the once-famous Triumph factory fruitlessly defying the management's efforts to close the works down forever. 'There are some technologies that we didn't have. $35. moved straight on to double-decker trucks at the other. Matchless. His vault. Building the world's 24th largest company (1993 sales. Fujisawa replied that 'The offer is so low. Honda would not buy in technology. As in bikes. a foreign thing that is not part of yourself.. as he hit his employee over the head with a wrench. there will be fewer fields to conquer.' While definitely visible. into 'everything from road conditions to driving habits.existed for parts. The whole secret of Honda was his direct participation in the life of the firm and its employees ." shouted Honda. fitted the pattern better when asked this question by the head union negotiator.even though. Honda's partner. In the Honda era. raw materials. from fascias and four-wheel steering to engine and braking systems . atypically for a Japanese company. up to one every seven seconds. to number three in Japan (and number one in America) is all the more remarkable . It's one that. their decline and fall ended in pathos.8 billion) on the pillion of the motorbike is not only a prime economic achievement. that intervention isn't how the West pictures Japanese management. 'A bolt that had been tightened by a young worker made a few more turns when Honda did it himself. This is how you're supposed to tighten bolts. "You damned fool. I . before Honda demonstrated the method. deliveries went in at one end. bearing once-proud names such as Norton. and finished bikes. and in the end you don't know where to go with it. would have been disbelieved especially by the established British companies. doomed model: little more than a covered motorbike. or finished machines. so in cars. from a standing start.' It's hard not to see in this philosophy the highly visible example of Soichiro Honda writ large. Like those benighted British firms. wrote Robert Shook.given that the opposition in Japanese cars was infinitely tougher than the biking Brits.But when you buy technology it remains frozen. Takeo Fujisawa.
placing top executives in an open office signifies the intention to have an open style. not only leading his men by example. is the antithesis of visibility and delivers an utterly contrasting message. What kind of men are they?' But then he thought. they do it until they become completely exhausted. proposed a new pay negotiation at that time. he is a damned liar. If someone says he works out of loyalty to the company. Putting the emphasis on easy access to colleagues signals that involvement figures high in the corporate values. Even I work because I like working. based on the 'behind closed doors' principle. 'I must recognize that man achieves the highest degree of efficiency when he plays. Honda got angry with 'workers who played baseball on the plant grounds'. On that executive floor. That between managers and managers is also crucial. . One of Honda's successors decided to move the executive suite from the customary top floor to mid-building (so that senior management would spend the minimum time elevating up or down). But you can't ignore the high and highly visible symbolism of this office layout.' The boss went on to admit that 'It is our (management's) fault that the situation has become such that we had to make such a low offer'. but changing the example to one that suited both them and the company. and received thunderous applause. Visibility isn't only a matter of contact and example between management and men. Why round? So that anybody who wants can sit down for a discussion at will. yet it was he who stumbled on the management style which eventually got the company out of manpower messes for keeps. 'In collective bargaining. in which rank and status have no practical importance. also at round desks. I must create a workshop where everybody will enjoy working. even though baseball does not bring a single yen to them. Taking the executive suite off the top foor signals that there is no exclusive. The proximity of the desks establishes that lines of communication are to be short and easily opened. saying to himself. Everyone must work for himself. there are no separate offices . predicted that sales would pick up in March. But when it comes to playing baseball. That's eminently practical. Honda himself stayed clear of industrial relations (wisely.' Which is what Honda proceeded to do. The other executives are scattered about the enormous room. in view of his penchant for hitting workers with wrenches). they complain about having to work too hard. He sits in a corner at a round desk. The classic Western office layout. The round tables indicate that decisions are only to be taken after full discussion among colleagues who are always on tap.think it's ridiculous. Then.not even for the chief executive. literally higher authority. no doubt.
not water-cooled. family. though. 'If the company belonged to the.." Fujisawa replied. as a banker discovered when he once addressed the pair as follows: I think you have an outstanding business going for you.retiring by mutual agreement on the same day twenty-two years later. despite their enormous success and prestige. lowpowered bike called 'Dream Type D. which results only from the 99% that is called failure.The Honda message is entiely consistent with the visible example of the founder. Honda was then forty-two. the two men enabled their successors to go beyond them. with a rhetorical quote.' The name arose when somebody.' At which point. He obstinately insisted. 'can be achieved only through repeated failure and introspection. at a sake and sardine party to celebrate the prototype. 'Success'." At the dinner. Honda yelled out. In the 'sex and sake' valedictory quoted earlier. made plenty of mistakes on the road from the Dream to the Civic and beyond. It was based on a little. The unanimity of the partners.' They replied as one man. but I guess that's difficult for a man like you to understand. that you will eventually hand over the company to your sons. our teamwork will not function. By playing no part in operational management. "The same thing can be achieved with an air-cooled engine. You can get the flavour of their creation from a story about the initial build-up of Honda. who would have the motivation to work for the company?'. They never did part . Honda. against all contrary opinion in the company. was a powerful force in Honda's success and dates back to a 1949 conversation between Honda and Fujisawa. the Machines. informed Honda. Honda revealed that neither he nor Fujisawa had seen any operational papers or attended any operational meetings for the previous ten years..' The errors occurred even in the technology where he was most triumphant. I'm not talking only about money. by Tetsuo Sakiya. That was always their intention. four years younger. success represents 1% of your work. In fact. 'That's it! Dream!' The story comes form an excellent book entitled Honda Motor: The Men. I presume. on this and other issues.' A very Japanese wish. remarked that it was 'like a dream. 'We have no such thought whatsoever. that 'I will work with you as a businessman. that air-cooled engines. Here's Sakiya's fascinating account of the proceedings: 'They had not seen each other for quite some time and Fujisawa's mind was made up: "If Mr Honda refuses a water cooled engine. he wrote. engines. Honda told Fujisawa. Fujisawa resolved the issue at dinner with his long-time partner. already known as a brilliant inventor.' As Honda explained. What I mean is that when we part. If the two of us cannot go in the same direction. I hope I will have gained a sense of satisfaction and achievement. but a perfect expression of what business friendship means. this would mean he is following a path different from mine. held the future for cars. "You can do one . and Fujisawa. But when we part I am not going to end up with a loss. of course. the Management. Finally.
This domestic Japanese bloodbath began with near-defeat. . has been a major factor behind the national success. In eighteen months. especially a rival. the counterattack was even more dramatic. and George Stalk." Honda agreed. too.' The message got across.' Suiting the action to the words.of two things. Yamaha decided to match Honda new model for new model. "Okay. won't you?" "I will. Jr.In innovation. The next day Honda went to the R & D centre and told the engineers. Honda produced more. we could beat Honda.." said Fujisawa. highly developed in the Japanese economy as a whole. "I'm sure I should continue to be the president. a veteran Japan watcher and resident. His words were reported by James Abegglen. but replied. until the Japanese islands seemed in some danger of sinking under the weight of unsold motorbikes. Its 81 new models were accompanied by 32 discontinuations. Yamaha's motorbike sales had pulled tantalizingly close to Honda's: 37% of the domestic market against 38% . the greatest example came in the motorcycle wars of the early 1980s. Compared to them. who hated to give in to anybody or anything. sales attention is focused on four-wheel vehicles." "Then. our specialty at Yamaha is mainly motorcycle production. There was a reason for the rise. In 1981 Yamaha announced a new factory that would inside one year take the domestic lead. after which the meeting turned into a party with both of them drinking sake and singing old folk songs together. Honda introduced 81 new models. in their book Kaisha: 'At Honda. Remember. Their conversation had lasted no more than a few minutes.and you can't get much closer than that.." 'Honda looked unhappy to have to make such a decision. his surrender was another marvellously visible example to everybody else.' Honda adopted a new battle cry: 'Yamaha wo tsubusu. Most of the best people have been transferred (into cars). That characteristic.' translated as 'We will crush/break/smash/butcher/ slaughter/or destroy Yamaha. If only we had enough capacity. That understated the full impact of Honda's devestating response. In Honda's saga. I think you should choose now."' Although Honda was never seen to smile when anybody talked about water-cooling thereafter. Whatever Yamaha produced. as Yamaha's president shrewdly spotted. competitive man.. then it went for the supreme prize. "you will permit your engineers to work on water-cooled engines. or you can join the engineers at Honda Motor.' This was not a threat that Honda could brush aside. this was a highly combative. Its reading of the situation was as clear as Yamaha's: 'Yamaha has not only stepped on the tail of a tiger. it has ground it into the earth. against only 34 from Yamaha. You can continue to serve as the president of our company. now you can work on water-cooled engines. within two years the upstart would be 'number one in the world.
Developing a philosophy built on the experience of a practical engineer. he and Fujisawa had delegated all operational responsibility.' After a year of blood. 'We plunged like a diving jet. Better communication . At Honda.on time. 'was seeing fresh Hondas and increasingly stale Yamahas. enormously practical: 1. The group chairman at Yamaha observed the wreckage and said.C.listen. Quality in all jobs . with excellence and consistency. Dept. That was only posible because. a mere 43-year old. Washington.learn. D. And the visibility is inseparable from the success.Since Yamaha could only manage three withdrawals. who had started the wars. Development teams are selected to match the age group at which the new model is targeted.long after his own active day. Source:. As Rosabeth Moss Kanter has pointed out. Honda was thus free to concentrate on his vision of the future and to share it visibly with others. like the man himself. and the great motorbike wars were over. 2.just as Honda packed himself off when he considered that his prime usefulness was over. Hans. ed. analyse. the founding father had created a corporate culture that would go on working towards his objective . is still highly visible.: U. the story had a happy ending . as noted above. His influence. he didn't have the chance to pursue this more sensible strategy: he was out. and engineers in R&D who haven't reached top status by forty are packed off elsewhere . From now on I want to move cautiously and ensure Yamaha's relative position. in turn made way for a younger man ten years later. a key to Honda's success was that its resident genius used to work directly on new products with the engineers. My ignorance is to blame. His successor. 'The customer. evaluate and improve. (1987).nothing less than becoming and remaining the world's best motor manufacturer .' The Yamaha motorcycle boss.By Edward De Bono and Robert Heller References Binnendijk. .' says Kaisha. Those victorious product development strengths are no accident. it was outgunned by 113 changes to 37. now saw reality: 'We can't match Honda's product development and sales strength.S.' Personally. National Negotiating Styles.for Honda. think. ask and speak up. sweat and tears. The corporate vision statement is like the founder himself. Reliable products . the production of new models and new ideas is thought so important that it's a young man's job. of State. 3.
Boston: Houghton Mifflin. Faure. Hoppman. Newbury Park: Sage Publications. . Pye. E. the United Kingdom. Houston: Gulf Publishing Company. 542.(1988). Glen (1980).Campbell. (1993). "Negotiators Abroad .. Cambridge. Exercises and Cases. Inc. Roy et al.(1990).G. and William G. Geert (1980).: Oelgeschlager. Guy-Olivier and Gunnar Sjostedt (1993). Fisher.) New York: McGraw-Hill. John L. Cambridge: PON. Maine: Intercultural Press. Salacuse. "Two Paradigms of Negotiation: Bargaining and Problem Solving. Coolidge (1991)." Journal of Marketing 52.Don't Shoot From the Hip: Cross Cultural Business Negotiations." Business & The Contemporary World 5.C. (1988). "Buyer-Seller Negotiations Around the Pacific Rim: Differences in Fundamental Exchange Processes. 61. Stripp (1991). Newbury Park. Edward T and Mildred Reed Hall. 24-47. Lewicki. Jeswald W. Moran." Annals. International Negotiation: Across-Cultural Perspective. Adamson (1972). Edward T. 153-170. 48-54. Graham. 160-83. 49-62. New York: Doubleday. Burr Ridge. Hofstede. Anthropology: The Study of Man (4th ed. Hall. John L. "Marketing Negotiations in France. Maine: Intercultural Press. The Silent Language. Irwin. Yarmouth. Hoebel. Terrence (1995). Hughes. Yarmouth. Negotiation -. (1991). et al. L. Mass. Hall. (1982). and R.Negotiating in the International Market Place. Successful International Business Negotiations. Herberger (1983). eds. "Business Cultures: The Transfer of Managerial Policies and Practices from One Culture to Another. Negotiation Theory and Practice.)." Harvard Business Review." Breslin & Rubin. Kolb. A. Culture's Consequences: International Differences in Work-Related Values. Illinois: Richard D.Readings. Graham. and the United States. Deborah M and Gloria G. Robert T.CA: Sage Publications. Philip and Brian Sheehan (1993). (1959). Chinese Negotiating Style. "Her Place at the Table: A Consideration of Gender Issues in Negotiation. N. Gunn. Germany. et al." Journal of Consumer Research 15. "Culture and Negotiation: An Introduction" in Culture and Negotiation (Faure and Rubin eds. Understanding Cultural Differences. & Hain. Making Global Deal . AAPSS.
1% others made up largely of Greek. For them the customer satisfaction is the most important and hence they even are ready to customize the product according to the customers‘ requirement. 8.0 BUSINESS CULTURE IN GERMANY An overview Germany has established its management style after World War II with the sense of pro activeness and long term goals. Germans are very fond of their homes and keep every part of their home very clean and in order and only close relatives and friends are invited to the home.CHAPTER 8 GERMAN STYLE OF MANAGEMENT Germany is located in Central Europe. Poland 456 km and Switzerland 334 km. German is the official language of Germany. Germans style of management is very rigorous. They compete for excellence in their products and services Germans do not compromise on product quality and product service. Russian. Danish. Germany has Population of about 82. These people are very particular about the rules and regulations. 34% Roman Catholic 3. Czech Republic 646 km. They work on four watchwords 1 2 Quality Responsiveness .4% Turkish. They believe in competition. Roman. E. and 6. The other language that are spoken in Germany are Sorbian. cloudy and wet winters. As far as religion is concerned it has 34% Protestant. They segregate work life and personal life. Luxembourg 138 km.3% unaffiliated or others. They are the masters in planning so that they can take precautions in their activities or in the decisions that they take.609 as per the census report of July 2008 and as per the ethnic make up is concerned the country has 91. Summers are occasionally warm. Serbo-Croatian and Spanish. They work as a team to win over the competition. Daimler-Benz and BMW competing for a specific niche.5% German. Italian.424. bordering Austria 784 km. Netherlands 577 km. Germans companies deride price competition as far as possible. They use their time in most effective and efficient way at the work place ad try to leave the office at time indicating that they have planned their work and time well. Polish.7% Muslim and 28. They might compete for the same market but they believe in market dominance rather than market share. It has temperate and marine climate with cool. Turkish and Kurdish.g. France 451 km. Belgium 167 km. German culture is a planning culture. 2. Its capital is Berlin. Denmark 68 km. 95% people speak German.
3. 2. The letter should be written in German.m. They are the strong followers of rules and regulations. even the number of lawyers in Germany is also not much. Letters should be addressed to the top person in the functional area. 8. or 3:00 p. Avoid scheduling appointments on Friday afternoons. It is important to take appointment well in advance preferably 1-2 weeks. They try to resolve the differences with pacification. 7. chambers of commerce. policies and regulations. Making changes in the time and place of appointment is not acceptable. 5. sometimes over a beer. Even the top managers are aware of their floor and working. Germans do not entertain without appointment. Arriving even five to ten minutes late than the specific time is alleged as late particularly for the subordinate. and trade unions. or between 3:00 p. If you write to schedule an appointment. In Germany they do not prefer any type of litigation. They work in accordance with the government standards. This is done by deriving the strong inputs from the management associations.m. Therefore the commercial groups do not have many legal staffs. as some offices close by 2:00 p. . 6.m.m.1 1.m. on Fridays. MAKING APPOINTMENTS Punctuality is very important in German business culture. it is expected out of him to inform his delay and the cause of it. the letter should be written in German. 8. 4.3 4 Dedication Followup German managers are very much production oriented and hence they intimately know their production line and floor. If the appointment is taken through letter it should address to the top person in the functional area clearly indicating the person's name and the business title. including the person's name as well as their proper business title.m. and 1:00 p. or sometimes in a gettogether called by a chamber of commerce or an industrial association. The ideal times for business are between 10:00 a. and 5:00 p. All German products are subject to norms--the German Industrial Norms ―Deutsche Industrie Normen‖-DIN established through consultation between industry and government. If by any reason the person is coming late. They believe in open discussion on any type of misunderstandings or disagreement caused over the meeting.
In East Germany female employees should not wear excess flamboyant ornaments as the standard of living in this part is lower than the west part of Germany part as it can cause resentment. 2. But formal invitation means formal. 4. German culture is highly fact oriented and hence do not facilitate emotional comfort or social networking to the new comers. 3. The Germans are not in the notion where they mingle with the strangers.3 1.8. Casual outfits like pants with a jacket or blazer will not be appropriate for the meeting especially if the person is meeting for the first time. 2. For social gathering informal dress can be worn. Germans are interested in the academic credentials of the person to do the business. Business dress is formal with dark and conventional suits for both men and women. but not very informal clothes. Men can attend without jacket and tie. Therefore if one sees the party of Germany one can find that the people who are acquainted with each other are found interacting and hanging out together and they do not give chance to the strangers to meet and interact. The newcomer should introduce first to the group. 3. COMMUNICATION 8. The rationale behind this is that they have the ―village community‖ mentality against the ―settlement community‖ of the Europeans and Australians. .2 BUSINESS DRESS 1.
8. preferably pens. beer is over and over again a good topic of conversation. They do not have believed in the concept of an open-door policy.4 SELECTING AND PRESENTING BUSINESS GIFT 1. cost of personal objects. . especially if its given in a very casual acquaintances then it is taken with suspicion. In German culture offering a small gift at the time of first meeting is courteous. In German business protocol compliment giving is not the part of business. 8. 6. personal questions viz-a. Work and professions. Most people will love to give the detail reply of the question asked. work and family life. particularly soccer .viz salary. 5. 7. Extensive and significant gifts should be given in more official and public environment. Germans do not feel comfortable in discussing about topics of World War II. They keep the doors of their workplace closed. German‘s are very formal in communication. or imported liquor. While conversation there are certain topics that they love to talk about such as Sports. Only family members and friends are called by the first name. previous experiences and travels in Germany and other parts of Europe. 9.4. politics. classy office stuff. recent holidays. current events. travel. They believe in written communication so that they can have back up to make the decisions and to maintain a record of decisions and discussions. 2. In Germany it is considered bizarre and irritating to ask question while moving without waiting for the answer. Prefixes are used before the name to call a person.
fine chocolates or a good wine. The business card should be detailed carrying all the information like the first name.5 GERMAN NEGOTIATION STYLE 1. Beer is not considered as a good gift. Meetings are always formal presided by the chairperson. title or position that the person is holding and also the degree earned from the university. One should carry enough business cards if dealing with the Germans. 5. Dresses.3. . German meetings are agenda based as they are very schedule-oriented. 2. perfumes etc has to be avoided as it can be considered as too personal. Gifts can include a bunch of roses. Once the contract is signed any amendments or manipulation is not possible unless both the parties agree on it. Gifts should be properly wrapped. Avoid giving lilies as it is used in funerals. They are very analytical and work on the facts to come up with the decision. 4. Germans are very straightforward in their communication so if the person is new should clarify all the doubts to prevent any type of misunderstandings or complications. The discussions are based on facts and information. as Germany itself is the producer of finest brands of the world. Gifts are generally offered when invited for social occasions such as dinner and it should not be very expensive. 4. 3. 8.
3. This may become the best route to make progress when negotiations reach a deadlock. Decision-making in German business culture is slow. an excessive efforts to force a personal level of contact can leave the other with an uncomfortable feeling of obligation to you. 2. Germans are generally very private people. Any attempt of assertiveness and confrontational with a significant German company are usually counterproductive.5. 7. Germans are very direct in disagreement and criticism. 6. At the beginning of a new relationship. They can say no directly. long-drawn-out. Germans are generally very formal but they become very emotional if their sense of order and routine becomes challenged. Germans will not compromise easily rather they will like to look for common ground. Germans need more time to form relationships on a personal level. 8. and every detail relating to the proposal will be conscientiously examined. 9. They don‘t like to discuss personal matters during business negotiations. Germans don‘t get impressed by ostentatious presentations. Presentations should be substantial and should have more technical data and fact. So it should not be expected that substantial decisions can be .6 GERMAN MEETINGS 1. Germans see all the details while dealing so it is required to do detailed planning and preferably schedule few informal initial mini-meetings so as to make the party aware of the issues or rules and regulations. 8.
This communication behavior has evolved from the historical ―village mentality‖ as they do not expect to be greeted by a stranger and even they will not greet the strangers. so there is no need to get into superficial pleasantries‖. In such cases. Questions are often very hard and fast after a brief introduction of persons. They focused on the logic and integrity of the facts of an argument and feel no restraint in carrying out his or her point. one continues to speak until the other simply gives way. there is no relationship. They talk so affectionately 3. or even louder in order to avoid being interrupted by someone else. Persons from highly relationship-oriented cultures. 5. once a decision is finally made. In German one has to be careful in addressing a person in English. 9. One may often be interrupted in the middle of the answer. where emotional comfort and the preservation of ―face‖ has priority over truth-based issues. However. At the end of a meeting or presentation. 8. Small talk is hard to get hold of for Germans. Germans rather prefer to have a third-party introduction. Interruptions are also quite common if the other person is getting off topic. but Germans will continue to speak. This efficient and time-managed way of conducting meetings result in very typical communication patterns. and he will move on to the next question. . once the other party has received a satisfactory answer to his question. Germans do not accept the greetings of the strangers in the formal official environment even though they make an eye contact with each other. 6. rules of any kind are meant to be taken seriously. Though they speak very good English but may well feel affronted at the presumption especially among the age group of 45 to 60. The reason is that they believe that. 2. Germans look for a very detailed agenda for the meeting and will work efficiently point by point with very little time given to small talk or other secondary points which they considered unimportant. it is extremely difficult to change. 4. especially if the intercultural communication language is German. 7. ―since I don't know this person. Germans often signal their approval or thanks by gently rapping their knuckles on the tabletop instead of applauding.7 GERMANS ACCEPTABLE PUBLIC CONDUCT 1. In German culture.made spontaneously at the table. must therefore be careful of being ―run over‖ in meetings and discussions with fact-oriented communicators. Though interruptions are effective tactics in a discussion. 8.
When the person is interacting or talking eye contact during the introduction is taken as very important and it should be maintained as long as the person is addressing. Off-site working-places enable the employees to work partly at home. Evaluation studies concerning the pilot projects came to the conclusion that this way of working could positively benefit the company. The IBM case can be regarded as a typical kind of 'alternating' telework (in other words. in the areas of development. whereas the second is often used to refer to sales representatives equipped with a laptop. 6. as new ways of working off-site began to develop which were not covered by the original agreement. The plant agreement was initially limited to a two year period. 8. 5. But when it is among good friends and family members hugging and kissing on both cheeks are common (hand-shaking between parents and grown children. Arrangements for off-site working have existed since 1988. when IBM started to test the possibilities by means of three pilot projects.8 Case study: IBM Germany (Gaby Spaeker/Hans-Juergen Weissbach) Introductory IBM was awarded with the "Innnovationspreis der deutschen Wirtschaft 1991" (German business prize for innovation) for its plant agreement concerning the introduction of "Außerbetriebliche Arbeitsstätten" (off-site working places). Nevertheless the official number of participants dropped from about 180 in 1992 to less than 140 by June 1993). management and monitoring of the computer centre. and the plant agreement was subsequently extended. or between adult siblings is not at all uncommon). However. 4. In Germany the organizational culture is known as a ―middle hierarchical‖ culture as there is well defined organizational hierarchy which they observe very strictly. IBM categorises this type of work consciously against the traditional terms of "homework" and "telework". queuing or waiting for the turn. the characteristic for this type of work is not so much the technology used but rather the place where the tasks are fulfilled. a combination between work at home and at the company's working place). its clients and also the employees themselves. 7. Thus. in the light of first experiences it became clear in 1993 that further negotiations were necessary.when they get to know each other well which is generally reserved for a close circle of family and friends. Germans despite of having high value of rules and social conduct do not have that trait in public life like. . At the time of arrival and departure they go for firm and brief handshakes in both business and social relationships. because the first one suggests an unqualified type of working at home.
say. and which as a consequence requires new training initiatives and new qualifications from its employees. By October 1992. it has primarily been highly qualified staff who have been able to benefit from this form of teleworking. Recently. Faster PCs and communications links mean that tasks can be performed quicker and cheaper.000 per year. The use of home-based teleworking developed slowly and step by step. But IBM's plan is to maintain a commitment to full employment practices. albeit at an overall lower basis. because IBM wanted to adopt innovations cautiously. 180 homes of employees had been equipped as working places. there has been a shift of emphasis from production to information services. in advance of a decision by management to proceed. once it has reduced the number of employees by early retirement arrangements. it doesn't make sense to be on call at work for a whole night. clearly the opportunity to undertake work tasks at home is much greater in the service and software development departments than in the production division. a figure . This might seem paradoxical. and this is more likely to be possible for highly qualified creative staff than for an employee engaged. These are jobs which are suited for working at home. For example. In practice. Another company motive for off-site working was stated as the need for increasing productivity. and to meet the company's real needs of the time. and have to travel to and from work as well. Increased personnel costs should be compensated by increases in creativity and motivation. so that system software knowledge and user programming becomes more and more important. This process was under the responsibility of a number of separate departments. if problems which crop up can easily be solved at home during a few minutes.000 and DM 30." The organisational implications of off-site working were researched by the company's personnel department. Organisational aspects Looking at the expected increase in productivity in conjunction with the extra costs of providing equipment for home workplaces meant that there have been restrictions imposed on the types of work considered suitable for this sort of working. The technical possibilities of working at home have improved as well. in typing work.Why was the off-site working places agreement introduced in 1991? According to one early participant: "The time was ready for innovation. One major reason given for the policy's introduction by IBM was the company's desire to ensure that it was attractive as an employer to potential new employees. The company is engaged in a business sector which is subject to permanent change. Each equipped home cost (depending on the hardware installed) between DM 6. It was obvious that certain tasks can be undertaken at home. Though the plant agreement explicitly covers all employees (in contrast to IBM agreements in other countries). The most relevant factor remains the potential increase of productivity brought about by home-based working. which had to finance off-site working out of their budgets. This has meant that the importance of off-site working arrangements should be enhanced: The percentage of jobs which include data processing tasks will increase to nearly 60 % until the year 2000 according to cautious estimates. given that the company began a process of shedding several thousand jobs over a period of years only a short time after the introduction of this type of telework. a year after the agreement had been concluded.
IBM hopes to save office space. simply using their PC for their work. IBM employees were already familiar with e-mail. who has the particular task of handling the administrative aspects of the maintenance of the off-company working places. and the administration. The decision to allow an employee to telework is taken by that person's immediate line manager.has been undertaken but its findings are not fully published." . Some indication of the scheme's success with employees can be gauged from the fact that no-one has yet asked to leave off-site working to return to the workplace. Therefore an assessment of cost savings and levels of satisfaction by participants engaged in off-company work is not available. if required. training for employees beginning the programme was not considered necessary. The decentralisation process introduced for off-site working means that it is the line manager who has the key role in ensuring its success.which includes the monthly telecommunication charges and a small reimbursement of DM 40 to the employee for electricity expenses and for the use of private accommodation for work. Control and management "Management by objectives" has been part of the entrepreneurial culture at IBM Germany for some years. As one staff member put it. This is not necessarily a dedicated data line. but for the individual performance. "The employees of IBM are not paid for presence. software and data links) and furniture was provided by IBM. Some employees (for example those engaged in word processing) manage without an on-line connection. with its 10-20 teleworking employees. All the technical equipment necessary (hardware. An external evaluation study . IBM does not plan to monitor the programme at a higher level within the company. It is not only the financial arrangements for teleworking which have been decentralised within the company. An external company carried out a security check. Both the employee and the manager can initiate a proposal to telework. in the longer term. in order to stay in contact with colleagues and to discuss arrangements with their line manager. This means that the company maintains the previous working site of the teleworking employee. At least once a week the teleworker is expected to visit the company's office. Technological background An online-connection is available for all home-based workers.carried out by the University of Tuebingen in co-operation with the Fraunhofer-Institut fuer Arbeitswirtschaft und Organization (IAO) . who considers both the individual's aptitude to work in this way and the nature of the jobs they are undertaking. which has been available for several years and since working processes did not change with the introduction of off-site working. but (depending on the requirements and cost) may be a standard phone line or ISDN line. combined with the decentralisation of responsibility and the long established principle of time management based on flexitime working models. but this is not currently an explicit objective of the off-site working agreement. This person serves as a connecting link between the department. Two central principles of the plant agreement are that teleworking is only to be undertaken voluntarily and that there is a right to return to the company workplace at any time. The manager is supported by a co-ordinating person (one for each sector). and undertook to arrange for new telecoms links to be installed.
"The more the line manager can trust the employee. Communication Communication within the company has changed considerably through the use of technology. but currently a meeting will be more constructive. to see if any modification of management style will be necessary. a part. in many cases employees have requested off-company working for personal reasons and in these situations the economic case for or against home-working is not considered by their line manager. "Sometime we will perhaps learn to perform teamwork via electronic media. the higher is the degree of independence he can offer him". and procedures for selecting teleworking employees. shorter-term objectives are monitored through a monthly report. The IBM principle is to establish organisational innovations such as off-site working only if effective communication within a team or office is guaranteed." said one member of IBM." said one IBM staff member. the risk of the . Although covered in the preamble to the plant agreement. Within a yearly framework of individual performance objectives which are defined "in dialogue" between employee and manager. and his or her individual needs for contact and communication. have already been considered above. There are some colleagues who are known as self-managed workers and others who obviously need more direct supervision. trust is better" is the motto pursued. This system of management control is as applicable to part-time work at home and work at the office. But differences cannot be denied between the style of communication between colleagues of the same team working within the office and working off-site. For example a parent who has worked reduced hours since the birth of a child could ask to telework. The need for close personal communication can set a limit to the amount of off-site working possible. A high degree of sensitivity is needed if the line manager has to assess the employee's ability for autonomous self-management. However. This is not true only of teleworked jobs. the company is monitoring the experience of off-site working. "Control is good. it makes a great difference whether the employee is permanently available in the office or not.time working place will not be economic". a general evaluation of this area is not yet possible. According to the IBM experts. This often means that part-time working off-site proves unrealistic. if there are no good social reasons for beginning off-site working. "If high investment is necessary. Clearly line manager and home-based employee have to trust in each other. e-mail has replaced the need to see colleagues as frequently as in the past. Selection of teleworkers The aims and objectives of the company. But these features correspond to the conditions within the company.Supervision focused on success in meeting set objectives has been the basis for individual agreements between employees and line managers by which aims and standards of performance are fixed and monitored by an assessment process. Off-site working has not altered this procedure. However. However. This trust is based on the assumption that the person who asks for greater freedom and autonomy in performing their work is aware of the need of reliability. the economics of the proposed working arrangement will be considered. For example. except to the extent that the monitoring of working hours is now undertaken at home by means of a diary. "Although leading by objectives already has a certain tradition. However. the scheme is not primarily intended for parents with little children.
The same career development opportunities are guaranteed for teleworkers as for normal office-workers. . telephone calls and similar administrative tasks. Employees off-site deal with their own letters. The weekly attendance in the office is a minimum requirement. and it is up to line managers to decide if more regular communication and contact is considered appropriate. Under other collective agreements. However. As a result. It might even be that they have better chances for promotion. The works council is not allowed to see the working diaries kept by teleworking staff. but sends information via e-mail instead. if it is true that productivity and motivation increase for home-based staff. homebased workers have the same rights to training as workplace based staff. there are concerns that individual breaches of current limits will weaken these controls. No findings are available on the issue of overtime working at present. Off-site working has not affected the employment status of employees. whilst their colleague deals with matters which need attention in the office. provided that the homebased location is appropriate and that the employee is competent at time-management: aspects which are considered when a proposal for off-site working is first approved. Evaluation The introduction of off-site home-based working has not. and should be available in two years' time. "Qualified employees at off-site working places have in the past developed the ability to switch between profession and family. Further research is being carried out. Evidence suggests that the on-line link between company and home has not fundamentally changed the degree to which employees feel they area available to their employer. which are no longer passed to a secretary to be undertaken. 0 The question whether the mixing of family life and professional life creates a double burden for employees is not linked only to the issue of the location of work. The company requires initiative in this area. A sufficient degree of separation should be guaranteed. say. since this depends mainly on the quality of performance. in itself. for many of them performed additional work at home. especially from highly qualified staff who are expected to decide their own training needs. three employees have distributed their work between them in such a way that two are able to work partly from home. It is typical to find that. led to wider changes in management (the reduction of hierarchies at IBM has already come about for other reasons. but the study could find no evidence that teleworking staff were disadvantaged in this area.increasing isolation of domestic workers should be reduced with a consciously flexible time management system. is likely to be difficult to prevent in modern daily working life. and is the subject of a separate 1992 works agreement). the way in which work is divided between work colleagues has changed." said one staff member. this trend is as much a feature of office-based working as home-based working and despite the works council's efforts. However career progression could oblige offsite workers to return to the workplace and abandon their participation in the telework scheme. However. and in consequence cannot monitor how well the regulations on working hours are being obeyed. to be received when the PC is next switched on. Clearly it is more satisfactory is the company does not call by phone outside work hours in the evening or weekends. The question of whether home-based working means that employees are less able to be out of reach of their employer deserves a similar answer.
on an outsourcing basis. However. but otherwise any time not included in the regular contractual working hours is at one's free disposal. However in practice. The employer's counter-argument is that employees have autonomy and flexibility in fixing their own working hours. Today (1997) the limitations of the pilot project have been removed and off-site teleworking is regulated under a general plant agreement which includes all types of remote work including mobile work. neither works council representatives nor management have the right to get access to home accommodation. it is believed that at least 4. given the reduction in the number of jobs in the company and the IT sector. Any increased risks of data security at domestic working places is discounted by experts. Concerning the issue of working time. and/or employees may have left the firm formally. . the real number of telework jobs have not come up to the initial expectations held at the time when the agreement was first signed. this agreement is less favourable for employees. The negotiations with the works council and the discussions with trade unions led to the integration of a number of proposals made by the union into the plant agreement on off-site working. the works council has been given limited rights of participation and control. are used. Concluding remarks In practice. In general. the good communication links and the guaranteed quality of work corresponding with legal and social regulations. Without the employee's permission. The need to attract employees is no longer so acute.000 employees are directly affected.000 to 5. its influence has been limited to formulating the original plant agreement. because the works council can monitor only the time officially spent working. In theory. broader agreement of 1993. It can be assumed that: formal arrangements for off-site working were not approved. off-site workers should have been no more or less affected by this process of downsizing than their colleagues on site. because of the preservation of regular employment.From the end of 1992. Participation of the works council Though the plant agreement gives employees the right to ask to begin off-site working. it does not give an automatic right for their requests to be granted. Under the new agreement. Concerning questions of ergonomic standards and security. the same regulations apply for off-site working as do at the company's own premises. Thus. This means that the works council has no powers to intervene in the individual agreements between line managers and employees. where the company has not compensated employees for the costs incurred. irregular forms of telework have developed. Many trade union concerns and criticisms of telework do not apply in the case of IBM. and that Sunday working could reemerge as a norm. nearly 25% of the proposed off-site working arrangements were cancelled or postponed in 1993. some members are concerned that existing working hours agreements will be under threat. and negotiating the revised. but employees continued to be able to work from home (the effect of this is that the company is not responsible for meeting equipment costs). Furthemore. The working hours at the office and at home are registered in a weekly plan in order to ensure the employee's availability. IBM was engaged in a process of considerable job reduction. but may be continuing to work for IBM as independent contractors.
html International Management.worldbusinessculture. Culture. References: http://www.uk/resources/global-etiquette/france-country-profile.com/German-Management-Style.html http://www. Marburg. Spaeker: Telearbeit.html http://www.worldbusinessculture.kwintessential.uk/resources/global-etiquette/germany-country-profile. 1997).co.cfm/german_culture_leadership_style#ixzz0c0qxBBFO . Weissbach: Neue Entwicklungen bei der sozialen Gestaltung von Telearbeit. Spaeker.com/French-Management-Style. http://international-trade-leaders. Lampe.suite101. 1994) and 1995 (Weissbach. Strategy and Behavior (6th edition.kwintessential.co.The IUK Institute reported on the project in 1993 (Fischer. Hodgetts-Luthans-DOH).html http://www. Dortmund.com/article.
A thoroughly multicultural society. African. You may sometimes upset people by things that you say or do. This culture is partly entrenched by the education system which has very wealthy private (called public) schools that the wealthier parts of society use.2 Behavior Always be punctual in England. if they do. men should wear solid or patterned ties. not loafers. are still evidence of the class structure. tradition is a very strong component in the culture. though it is still important to maintain a conservative image. colonial possessions. while avoiding striped ties. accents. This has led to a multi-cultural society that has seen some eruptions of race tensions in the poorer parts of society. Scotland. Arriving a few minutes early for safety is acceptable.1 Appearance Business attire rules are somewhat relaxed in England. Racial discrimination although illegal does exist in some parts of the society as it does in every society. if you ask people for help they will readily try to oblige. Caribbean and Asian heritages now comprise ~5% of the population with about half of those born in the UK. The people can seem to be reserved and formal in interactions. Dark suits. dress. Additionally. The tradition of the English culture has been a class system based on hereditary titles and bloodlines. Nevertheless. Wales and Northern Ireland. Cultural aspects such as manner of speech. usually black. 9. respecting local people and customs. the UK continues to blend its rich cultural heritage with a modern and innovative outlook. educational backgrounds. There still appears to be a disproportionate representation of the educated "elite" in the positions of power in Government and business that is referred to as "the old boy's network". Knowledge and an appreciation of the basic cultural. The heritage of the UK (particularly England) is very rich with world discoveries. even if these things seem perfectly normal in your own culture. not given to excessive behavior or expression of emotion. blue. Men's shirts should not have pockets. There is also a strong respect for individual privacy. but conservative dress is still very important for both men and women. . The people of the UK are mainly Caucasian but in recent years immigrants from England's former colonial possessions now means people of Indian. ethical and business values of the UK is crucial to any organization wanting to conduct business in such a varied yet traditional country. Men wear laced shoes. and the monarchy.CHAPTER 9 British Style of Management The United Kingdom is a nation of cultural and ethnic diversity consisting of four countries each with a clear identity: England. are quite acceptable. the pockets should always be kept empty. Businesswomen are not as limited to colors and styles as men are. or gray. etc. 9. civil and European wars and as such. Britain you will find most people are kinder to you if you behave politely.
When doing business in the UK you generally find that direct questions often receive evasive responses and conversations may be ambiguous and full of subtleties. it is considered inappropriate to touch others in public. Therefore asking personal questions or intensely staring at another person should be avoided. When dining out. A business lunch will often be conducted in a pub and will consist of a light meal and perhaps a pint of ale. Eye contact is seldom kept during British conversations. it is important to pay attention to tone of voice and facial expression. One gesture to avoid is the V for Victory sign. Consequently. cannot be overestimated. Loud talking and disruptive behavior should be avoided. This is a very offensive gesture. in particular the English. Often times ordinary vocabulary can differ between the two countries. Humour . Supported by a long-established system of government and . Privacy is very important to the English. the UK is fast becoming Europe's leading business centre. It can be highly implicit and in this sense is related to the British indirect communication style. often in the form of self-depreciation or irony. The importance of humour in all situations. Furthermore. therefore it is unwise to rush the English into making a decision. both civil and European wars and an constitutional monarchy. English is the official language.Decision-making is slower in England than in the United States.The British.3 Communications In England. this means your British colleagues will approach business with an air of formality and detachment.A vital element in all aspects of British life and culture is the renowned British sense of humour. A simple handshake is the standard greeting (for both men and women) for business occasions and for visiting a home. positive or negative are rare and should be avoided. as this may be an indication of what is really meant. and one should maintain a wide physical space when conversing. Humour is frequently used as a defense mechanism. do not bring up the subject of work. 'Stiff upper lip' . it is not considered polite to toast those who are older than yourself. If a man has been knighted. The fourth largest trading nation. are renowned for their politeness and courtesy. In British culture open displays of emotion. During meetings. done with the palm facing yourself. When socializing after work hours. but it should be noted that Queen‘s English and American English are very different.Key Concepts and values Indirectness . The United Kingdom is renowned for its colorful history and strong sense of tradition that has been shaped by a colonial empire. Personal space is important in England.This is a term often used to describe the traditionally British portrayal of reserve and restraint when faced with difficult situations. 9. Gifts are generally not part of doing business in England. including business contexts. This is a key element of British culture and is a fundamental aspect of British communication style.4 British Culture . tap your nose. To signal that something is to be kept confidential or secret. he is addressed as "Sir and his first name" example: Sir 9.
7 British business etiquette (Do's and Don'ts) DO respect personal space. o The British prefer to work in the security of a group-established order with which they can identify. The British value their space and keeping an acceptable distance is advised. in order to operate successfully in the UK business environment. . DON'T underestimate the importance of humour in all aspects of business in the UK. o Negotiations and decisions are usually open and flexible.economic stability. o First names are used almost immediately with all colleagues. However. o Business cards are an essential prop and are usually exchanged. o In general. It is considered polite to do so. creating an atmosphere of support and encouragement.Doing business in the UK Business practices in the UK o Business meetings in the UK are often structured but not too formal and begin and end with social conversation. punctuality is essential at any business meeting or social event. DO remember to shake hands on first meetings. DON'T ask personal questions regarding your British counterpart's background. DO make direct eye-contact with your British counterpart. 9. o The boss often takes the role of a coach. however remember to keep it to a minimum or it could be considered impolite or rude. therefore decision-making is often a slow and systematic process. The principal divide is between managers and other ranks. Major decisions are made at the very top. o Teamwork is very important. the board of directors is the principal decision-making unit. offering skills in areas such as research. Exceptions are very senior managers. However. Structure and hierarchy in UK companies o Today. o When making business appointments it is best practice to do so several days in advance. there are a number of important issues to take into consideration both before and during your time there. development and technology. 9. the UK is an attractive base for overseas business.6 UK Business Part 2 . occupation or income. Your British counterparts will favour a win/win approach. however there exists a strong feeling of individual accountability for implementation and error. Working relationships in the UK o UK managers generally favour the establishment of good working relationships with their subordinates. UK businesses maintain relatively "flat" organisational hierarchies. DON'T forget that instructions are often disguised as polite requests. you should always wait to be invited to use first names before doing so yourself. 9.Working in the UK Working practices in the UK o In accordance with British business protocol. o The British are inclined to follow established rules and practices.5 UK Business Part 1 .
more accepting.In accordance with British business etiquette. indicating that change in England can be achieved more rapidly than in many other countries In analyzing Predominantly Christian countries. less structured. risk-taking attitudes are required to promote novel problem-solving strategies Judging by my international statistics. to the union head office official. relaxed attitude. informal. In the UK. This indicates that predominantly Christian countries have a strong belief in individuality. Individuals in these countries may tend to form a larger number of looser relationships 9. with individual rights being paramount within the society. Never arrive early. if they are assertive and selfsufficient in their work. The Industrial Relations Act came into effect in 1971. risk-taking. 9. coupled with high patriotic feelings British managers seem to be characterized by a more liberal.' British managers were inclined to be more easy-going. the number 13 is considered extremely unlucky. it being possible to prosecute unofficial strike leaders.9 Other Findings 'Britain's bosses believe that happy employees mean bigger profits. British managers frequently adopt the same set of work and leisure attitudes. the British work more days and longer hours than most other European countries. Sitting with folded arms during a business meeting is a sign of boredom and that you are uninterested. . coupled with a single-minded individual-oriented competitive attitude: probably in uncertain situations. The power distance and uncertainty avoidance are ranked considerably lower than the first two. when entering a room allow those of a higher rank to enter first. It is important to respect rank in the UK. Long-term orientation ranks the lowest. laid back. open. Agreements between management and unions became enforceable at law which meant damages could be claimed. It is advised to arrive 10-20 minutes after the stated time when visiting someone's home. humorous. less critical. This made 'unofficial' strikes illegal and in this way transferred the responsibility for deciding whether to strike or not from the men on the spot that is from their elected shop steward. the British manager will tend to behave similarly in their private leisure domain. that is. the primary correlation between religion and the Geert Hofstede Dimensions is a high Individualism (IDV) ranking. Asking about another's salary in the UK is particularly offensive and should never be done.8 Geert Hofstede Analysis The Geert Hofstede analysis for England illustrates their strong feelings towards individualism and masculinity. more individualistic.
09.) A company can fire who it wants . to redundancy pay and to protection against unfair or discriminatory dismissal Gambling is very popular in Britain. even if they don't use it. and people are legally entitled. British people like to have a lot of their own personal space. The British buy more lottery tickets than any other people in the world. they could take them to court. Do not call Welsh. Scottish or Irish people "English" There are a number of situations in which it is common to leave a tip (sometimes called a gratuity).up to a point. People don't touch others very much. let him/her be served first British people don't like to be embarrassed. or to understand what you say to them. or supplier. partner. British take a strong court system for granted. It is rare for people to go to someone's house without having arranged it first. most people will sit away from other people. although you should not feel that you have to do this if you cannot afford to do so or if you were not happy with the service provided. It has been estimated that 75% of adults in Britain play the lottery at least once a week Queuing fairly is important in the UK: if someone was there before you. Bargaining may be hard and prolonged but in the end you can only work with people you can trust and that means with people whose word means something. The date comes first: 03.39. for example. (And British know what happened on that date. Agreements reached at the end of the bargaining process were on the whole being implemented and maintained unless there was good reason to do otherwise. They fear that they may not be able to make conversation with you. and will usually apologise if they touch someone accidentally. If there are several spare seats in a public place.Management and worker representatives in the United Kingdom are trained to negotiate. If you are a woman. form agreements and stick to them. Which topics are best avoided for small talk? . British think most problems could be solved if only people would put aside their prejudices and work together. They probably don't know much about your country or culture. There is a reasonable amount of employment protection legislation both in national law and in EU law. and fear they might say something that offends you. British know that if they went into business and had problems with a customer. They want their own privacy. a British man may worry that you will feel threatened if he starts speaking to you.
or marriage ("Do you have a girlfriend?". http://www. .kwintessential. or people who may have some personal problems or sensitivities.uk/resources/global-etiquette/germany-country-profile. or are embarrassed by the subject) .Complicated subjects.Age.Money. http://www.com/German-Management-Style.Previous or current relationships.Jokes that might offend (especially sexist or racist jokes) .Politics .com/French-Management-Style.html 2.You may need to be careful when you talk about some topics. http://www.Criticisms or complaints References: 1.html .worldbusinessculture.Gossip about somebody (you may be talking about the person's friend or favorite person) .Religion . especially with people that you've only just met. eg philosophy .Sex (some people have strong religious views about this. people who are older than you.html 3. people who appear to have strong religious or political views. eg "You seem to have put on some weight" . eg "How much do you earn?" . "Are you married?") .worldbusinessculture. eg "How old are you?" .co.Appearance or weight.
level. This indicates most of its people share in its economic prosperity and comprehensive social welfare programs. in business it is safest to be formal and reserved in your behavior and expect that your French colleagues will be the same. France has a population of approximately 58 million people and is the largest West European country. as well as being known as a world center for culture 10. A modern and diverse country. France encompasses a wealth of landscapes and identities influenced by an amalgamation of cultural and historical differences. France is a nation that takes immense pride in its history and prominent culture. where appropriate conduct. A person will be judged in France on their educational level. This warmth is more evident in the country side where the people are more relaxed. depending upon the person you are dealing with and the relationship between you. As the largest Western European country. France does not have an official religion. 10. and are extremely proud of their heritage. Education is of great importance to the French. for French citizens The French are very aware of their presence. The French are a kind and friendly people if you look beyond this pride in their country and its achievements.CHAPTER 10 French Style of Management France has a rich history of culture and the French take extreme pride in their culture.2 The Role of a Manager French business behavior emphasizes courtesy and a degree of formality. Chief executives of French companies often come from a select group of universities and share a similar background. many of whom are from other European countries or former Communist countries. The French enjoy a very high standard of living and they are ranked 2 nd out of the top 175 countries in the world in the Human Development Index. Communication may be both formal and informal.1 Being a Manager in France The business set up in France is egalitarian and to ensure successful cross cultural management it is important to remember to treat each and every person with equal respect and deference. This is demonstrated by the fact that the educational system is almost free of charge from the primary school through the Ph. approximately 4/5 the size of Texas. value politeness and they are generally reserved in their social interactions. family reputation and wealth. In other words. mutual trust and understanding are the key to your organisations success. it is best to send a . France is home to approximately 4. They respect privacy.D. Such cultural identities play a crucial role in French business culture. When the index is adjusted for women it shows that France is 6 th amongst 146 countries. To some people this may sometimes be seen as arrogance but one must understand the depth of pride they have. They boast of their long history and their important roles in world affairs.5 million foreigners. They are very patriotic. Consequently. but the majority of French citizens are Roman Catholic.
and will shake people‘s confidence.3 Approach to Change France‘s intercultural adaptability and readiness for change is developing all the time. Newcomers to the French management style should carefully study the corporate culture of specific companies because they may vary. . While in risk-tolerant environments. Role allocation within the team is generally quite clearly defined and people will take greater responsibility for their specific task than for the group as a whole.6 Boss or Team Player French like working in teams and collaborate quite well. and adherence to schedules is important and expected. and the potential of embarrassment that may accompany failure. France is seen to have a medium tolerance for change and risk. especially if it is someone whose credentials and experience are comparable. Because of this attitude. 10. failure is perceived as a learning process that encourages confidence in future ventures. 10. Effective cross cultural management skill will depend on the individual‘s ability to meet deadlines. The leader will be deferred to as the final authority in any decisions that are made. and develop any resulting synergies. Successful cross cultural management will depend on the individual‘s ability to harness the talent of the group assembled. to those who believe it is most important to simply execute the instructions by their leadership. often both literally and figuratively. intercultural sensitivity is going to be required. brings about aversion to risk and the need to thoroughly examine the potential negative implications. albeit somewhat direct and blunt.5 Decision Making For effective cross cultural management it is important to remember that hierarchy is part of the French business culture. 10. failure in France causes a longterm loss of confidence by the individual as well as by others. This is a country where rank has its privilege. Praise should be given to the entire group as well as to individuals.senior executive to initiate the relationship with the French decision-maker.4 Approach to Time and Priorities France is a controlled-time culture. 10. especially when conducting group meetings and discussing contributions made my participating individuals. People in controlledtime cultures tend to have their time highly scheduled. In France missing a deadline is a sign of poor management and inefficiency. Consequently. The communication within a team is generally quite collegial. employees will range from feeling empowered to speak out in the management process. The fear of exposure. Decision making is done at the highest levels. often without consultation with subordinates. and it‘s generally a good idea to provide and adhere to performance milestones. but they do not dominate the discussion or generation of ideas. It is important for innovations to have a track record or history noting the benefits if they are to be accepted and implemented.
If you do not speak French. The French handshake is brief. . Dress conservative and invest in well-tailored clothing. French businessmen do not loosen their ties or take off their jackets in the office. The French have a great respect for privacy.10 Communications French is the official language in France. such as flashy jewelry 10. regardless of how minute. as they demonstrate interest in intellectual pursuits. You will have to be patient and not appear ruffled by the strict adherence to protocol. and is accompanied by a short span of eye contact. Patterned fabrics and dark colors are most acceptable.9 Behavior Punctuality is treated very casually in France. French handshakes are not as firm as in the United States.10. The French will carefully analyze every detail of a proposal.7 Communication and Negotiation Styles French business emphasizes courtesy and a fair degree of formality. Always shake hands when meeting someone. Women should also avoid any glitzy or overpowering objects. The French often complain that North Americans lecture rather than converse. The French frequently interrupt each other. but lunch is best. Business can be conducted during any meal. Gift giving is left to the foreigner‘s discretion. Avoid confrontational behavior or high-pressure tactics as it can be counterproductive. as well as when leaving. Never attempt to be overly friendly. Women should also dress conservatively. Good gifts to present include books or music. Always give notice before your arrival. but avoid bright colors. The French are often impressed with good debating skills that demonstrate an intellectual grasp of the situation and all the ramifications. Additionally. it is a good idea to hire an interpreter so as to avoid any cross cultural misunderstandings. 10. The French believe this permeates the taste buds. with strong definition and competition between classes. France is a highly stratified society. The French have a great appreciation for the art of conversation. The French generally compartmentalize their business and personal lives. Business is conducted slowly. compromising the taste of the meal. it is very important that you apologize for your lack of knowledge. do not "drop in" unannounced. Wait to be told where to sit as there may be a protocol to be followed. 10. Avoiding bright or gaudy colors is recommended. Although English may be spoken. Knock and wait before entering into a room. Most individuals in business speak English. as the argument is a form of entertainment. Avoid drinking hard liquor before meals or smoking cigars between courses.8 Appearance The French are very conscientious of their appearance.
Individualism in the French business environment means that a greater concern is placed on social status and being judged as an individual. This outlook originated in the power and authority of the earlier monarchs and despite the democratic society. relationships must be formed first before business can begin. rules and administrative practices are favoured over effectiveness or flexibility. Respecting this privacy is particularly important when working in France. o Generally speaking in French business culture.12 France business Part 1 . remains a significant part of the French presidency today. Individualism and individuality – France‘s distinguished individuality is an important cultural characteristic that describes the French passion for uniqueness and freedom of opinion. for those wishing to conduct business in France.11 French culture . meeting. o In French business culture only the highest individual in authority can make the final decision. despite the clear hierarchical structure. o It is essential that you work successfully with all levels of the business organization. In the world of French business. o In accordance with French business culture. However. deadlines are open to negotiation. Eye contact is frequent and intense. which is equally essential in France. French bosses generally take a dictatorial and authoritative approach. Working relationships o The French have an inherent sense of privacy exhibited in their definite distinction between business and personal life. o Business organisations in France are highly organized and well structured. Americans are known to offend everyone in a restaurant. The French have a low tolerance for uncertainty and ambiguity. transportation system. Consequently. Uncertainty avoidance – One aspect of French culture that has a major influence on business in France. or on the street with their loud voices and braying laughter. vertical hierarchy in French business culture. is the country‘s attention to rules and regulations. individuality should not be confused with the term individualism. is significant in their reluctance to take risks. both in society and in business. which.Key concepts and values Centralization – France has a long and notable history of centralization reflected in its geography. but refers to having a separate but equal sense of place in society.Working in the France Working practices o Arriving for business appointments 10-15 minutes after the scheduled time is not considered late and is therefore acceptable in France. and can often be intimidating to North Americans 10. . Government and business. Structure and hierarchy o There exists a strong. 10. unless specifically stated. centralization exists in the concentrated authority that generally lies with one individual.Be sensitive to the volume of your voice.
o DO make direct but moderate eye contact with your French business colleagues. but parents take their role as guardians and providers very seriously. Friendship involves frequent.13 France business Part 2 . Relationships . o DON‘T be put off by frequent differences in opinion and rigorous debate during business negotiations. The subject of business. o A business meeting should begin and end with a brisk handshake accompanied by an appropriate greeting and the exchanging of business cards. The French take their time before arriving at a decision 10. • Friendship brings with it a set of roles and responsibilities. should only be brought up by the host and at a later stage in the meal. o Despite the formality of French business culture.10. it is not uncommon practice to stray from the agenda during meetings. including being available should you be needed.15 Etiquette & Customs . using titles wherever possible. The French will appreciate your ability to defend your position. followed by their Christian name. • The extended family provides both emotional and financial support. o DON‘T rush or display signs of impatience with your French counterparts. Business etiquette (Do‘s and Don‘ts) o DO maintain a constant air of formality and reserve during all business practices and at all levels within the business. if not daily.Doing business in France Business practices o In French business culture it is customary to only use first names when invited to do so. o DON‘T discuss your family or other personal matters during negotiations. it is only with their close friends and family that they are free to be themselves. • Families have few children. Sometimes the French will introduce themselves by saying their surname first. o Lunch is the best place to forge business relationships in France. contact. Your efforts will not go unnoticed. • Although the French are generally polite in all dealings.Public vs. rather than reaching final decisions. the French have a practical approach towards marriage. o DO try to learn a few basic French phrases and use them whenever possible. 10. Initial meetings are often dedicated to information sharing and discussion. however. Private • The French are private people and have different rules of behaviour for people within their social circle and those who are not. • Despite their reputation as romantics.14 French Society & Culture French Family Values • The family is the social adhesive of the country and each member has certain duties and responsibilities.
Table manners: • Table manners are Continental -. • If you have not finished eating. once on the left cheek and once on the right cheek. • If you give wine. • Do not begin eating until the hostess says 'bon appetit'. Dining Etiquette If you are invited to a French house for dinner: • Arrive on time. especially in Paris. • The further south you go in the country. • Peel and slice fruit before eating it. • Some older French retain old-style prohibitions against receiving certain flowers: White lilies or chrysanthemums as they are used at funerals. • First names are reserved for family and close friends. • Gifts are usually opened when received. • If invited to a large dinner party. make sure it is of the highest quality you can afford. Wait until invited before using someone's first name. Business Etiquette and Protocol . • Do not cut salad with a knife and fork. the more flexible time is. Under no circumstances should you arrive more than 10 minutes later than invited without telephoning to explain you have been detained. The French are fashion conscious and their version of casual is not as relaxed as in many western countries. • Friends may greet each other by lightly kissing on the cheeks. Fold the lettuce on to your fork. • Prohibitions about flowers are not generally followed by the young. • If there is a seating plan. • Finish everything on your plate. red carnations as they symbolize bad will. although your hands should be visible and not in your lap.Meeting Etiquette • The handshake is a common form of greeting. • You are expected to say 'bonjour' or 'bonsoir' (good morning and good evening) with the honorific title Monsieur or Madame when entering a shop and 'au revoir' (good-bye) when leaving. you may be directed to a particular seat. any white flowers as they are used at weddings. send flowers the morning of the occasion so that they may be displayed that evening. • Do not rest your elbows on the table.the fork is held in the left hand and the knife in the right while eating. which is considered unlucky. cross your knife and fork on your plate with the fork over the knife. The French appreciate their wines. Gift Giving Etiquette • Flowers should be given in odd numbers but not 13. • Leave your wineglass nearly full if you do not want more. When in doubt. it is always best to err on the side of conservatism. it is polite to greet your neighbors with the same appellation. • If you live in an apartment building. • Dress well.
• The French will carefully analyze every detail of a proposal. Secretaries often schedule meetings and may be used to relay information from your French business colleagues. • The way a French person communicates is often predicated by their social status. • If you expect to be delayed. • Appointments may be made in writing or by telephone and. The French generally compartmentalize their business and personal lives. as the French do not appreciate hyperbole. . • When an agreement is reached. You will have to be patient and not appear ruffled by the strict adherence to protocol. the French may insist it be formalized in an extremely comprehensive.Relationships & Communication • French business behavior emphasizes courtesy and a degree of formality. education level. • The French are often impressed with good debating skills that demonstrate an intellectual grasp of the situation and all the ramifications. regardless of how minute. • It is always a good idea to learn a few key phrases. • Do not try to schedule meetings during July or August. • Avoid confrontational behavior or high-pressure tactics. not to make decisions. • Business is conducted slowly. logical presentation that explains the advantages of a proposal in full. are often handled by the secretary. 10. • Maintain direct eye contact while speaking. telephone immediately and offer an explanation. as this is a common vacation period.16 Business Negotiation • French business emphasizes courtesy and a fair degree of formality. • High-pressure sales tactics should be avoided. The French are more receptive to a low-key. Business Meetings Etiquette • Appointments are necessary and should be made at least 2 weeks in advance. • Creating a wide network of close personal business alliances is very important. since it demonstrates an interest in a long-term relationship. Decisions are generally made at the top of the company. • Trust is earned through proper behavior. • Written communication is formal. • Business is hierarchical. • Wait to be told where to sit. • If you do not speak French. • Discussions may be heated and intense. an apology for not knowing their language may aid in developing a relationship. • Meetings are to discuss issues. the French often appear extremely direct because they are not afraid of asking probing questions. • Mutual trust and respect is required to get things done. depending upon the level of the person you are meeting. It can be counterproductive. • In business. precisely worded contract. • Avoid exaggerated claims. • Never attempt to be overly friendly. and which part of the country they were raised.
Business Cards • Business cards are exchanged after the initial introductions without formal ritual. • Have the other side of your business card translated into French. Although not a business necessity, it demonstrates an attention to detail that will be appreciated. • Include any advanced academic degrees on your business card. • French business cards are often a bit larger than in many other countries.
10.17 Geert Hofstede Analysis The Geert Hofstede analysis for France illustrates their emphasis on uncertainty avoidance. The high uncertainty avoidance ranking indicates France‘s concerns for rules, regulations, and issues with career security. In addition to uncertainty avoidance, both individualism and power distance are also ranked fairly high, with masculinity ranking the lowest Corporate Culture The French do not like clear procedures: they want to maintain some form of "grey zone" and do not believe that it is right to use always the same and only way to do the same things ; organizational charts and objectives are not clear. The French do not organize meetings to reach a decision: they meet to exchange information, then the person in charge takes the decision... If you need to have a serious and/or difficult discussion with someone, you'll invite him/her for lunch and business lunches are an important part of corporate communication; of course, be ready to drink wine... The French are more flexible and creative and they do not feel bound to a previous decision. Only written commitments are serious: nothing oral is really binding. The French are much more sentimentally attached and faithful to their company: they like to put corporate relations on a personal basis. Top-down management: for the French, the Boss is the Boss and management is very authoritarian. The French are highly polychromic: they love to do several things at the same time and they are good at that. Within the company, the French keep the doors closed (open floor offices are not popular), are reluctant to work in a team and information is often distributed selectively
Within the company, the French are less constrained by social codes such as "you must play golf with your boss", or "each of us must give $5 for this charity" etc... and they do not like to mix corporate life and personal life ; being invited at one's boss' home is the worst possible thing that may happen ! In a nutshell it is a different world: for an American and it is hard to conceive that a country operating in the above way can be the fourth or the fifth world economic power! As compared to the USA, France is a much more hierarchical culture with, again, a strong emphasis on the relationship, more feminine, valuing long term.
French Business Meetings Etiquette Appointments are necessary and should be made at least 2 weeks in advance. Appointments may be made in writing or by telephone and, depending upon the level of the person you are meeting, are often handled by the secretary. Do not try to schedule meetings during July or August, as this is a common vacation period. If you expect to be delayed, telephone immediately and offer an explanation. Meetings are to discuss issues, not to make decisions. Avoid exaggerated claims, as the French do not appreciate hyperbole. French Negotiation Style French business emphasizes courtesy and a fair degree of formality. Wait to be told where to sit. Maintain direct eye contact while speaking. Business is conducted slowly. You will have to be patient and not appear ruffled by the strict adherence to protocol. Avoid confrontational behaviour or high-pressure tactics. It can be counterproductive. The French will carefully analyze every detail of a proposal, regardless of how minute. Business is hierarchical. Decisions are generally made at the top of the company. The French are often impressed with good debating skills that demonstrate an intellectual grasp of the situation and all the ramifications. Never attempt to be overly friendly. The French generally compartmentalize their business and personal lives. Discussions may be heated and intense. High-pressure sales tactics should be avoided. The French are more receptive to a low-key, logical presentation that explains the advantages of a proposal in full. When an agreement is reached, the French may insist it be formalized in an extremely comprehensive, precisely worded contract. French Dress Etiquette Business dress is understated and stylish. Men should wear dark-coloured, conservative business suits for the initial meeting. How you dress later is largely dependent upon the personality of the company with which you are conducting business. Women should wear either business suits or elegant dresses in soft colours. The French like the finer things in life, so wear good quality accessories. 4 Conclusion:
Both Germany and France have the different Management style and Business etiquettes but they have similarities in their Management styles and Business Etiquettes. Some of these similarities in Management styles and business etiquettes are as follows: 1. Prior appointment should be taken 1. Do sit unless you are asked to sit 2. Maintaining eye contacts while speaking is essential in both the countries. 3. Business in both the countries is hierarchal. 4. In both the countries avoiding confrontational behavior or high- pressure tactics is necessary because it can be counterproductive. References: 4. http://www.kwintessential.co.uk/resources/global-etiquette/germany-country-profile.html 5. http://www.worldbusinessculture.com/German-Management-Style.html 6. http://www.worldbusinessculture.com/French-Management-Style.html
Guatemala. Definitions of Latin America vary. From a cultural perspective. Elvira. in the Caribbean. Latin America generally includes those parts of the Americas where Spanish. European colonial culture. Language Spanish is the predominant language in the majority of the countries. from Italy. professor of management theory and business history at the graduate business school (ITESM) in Monterrey (Mexico). high art) and popular culture (music.and twentieth-century immigration (e. or Portuguese prevail: Mexico. and Music. owing to the region's history of colonization by Spain. painting. and Cuba. Brazil (particular the southeast and southern regions). most of Central America. How Culture Affects Work Practices in Latin America Some global executives would be surprised to learn that many employees in Mexico like to do their jobs in the presence of such religious images as the Virgin of Guadalupe. academic director of Lexington College in Chicago. There is also increasing attention to the relations between Latin America and the Caribbean as a whole.1 The Company Is Like a Family . have published a book on this phenomenon. South and North America (Mexico and many parts of the United States). Portuguese is spoken primarily in Brazil. and French Guiana. The richness of Latin American culture is the product of many influences. California and the Southwest. Bolivia and Paraguay. Chile and Venezuela. Panamá and Peru The introduction of slaves from Africa.g. such as literature. and includes both high culture (literature. whose importance is today particularly notable in countries such as Mexico. which are spoken throughout Central (including the Caribbean). Cuba. Chinese and Japanese immigration influenced the culture in Brazil. Venezuela. South America. including: Pre-Columbian cultures. and cities such as New York and Miami). Colombia. and France. Panama. See further discussion of definitions at Latin America. this imperial history left an enduring mark of their influence in their languages. Germany. Ecuador. folk art and dance) as well as religion and other customary practices. There is also an important Latin American cultural presence in the United States of America (e. Peru. Uruguay. They show how these factors can determine the success and failure of a business organization.g. Portugal. especially in countries such as Dominican Republic.‖ In the chapter titled ―Culture and Human Resource Management in Latin America‖. which has influenced for instance dance and religion. entitled ―Managing Human Resources in Latin America.Brazil. and Marta M. the two scholars identify the cultural values that determine Human Resources in the region.CHAPTER 11 LATIN AMERICA Latin American culture is the formal or informal expression of the peoples of Latin America. French. where it is both the official and the national language. French is also spoken in smaller countries. and part of the Caribbean in which Haiti (a non-Hispanic country with some Hispanic cultural influence) is generally included. Their religious devotion in one example of how local culture affects the styles and practices of work in Latin America. European influence is particularly marked in so-called high culture. Moreover. Nineteenth. and Eastern Europe) also transformed especially countries such as Argentina. Anabella Dávila. 11.
On the other hand. The family is equally important when promotion is involved. ―executives know that the survival of their organizations depends more on social and governmental relationships than on any support they get from the country‘s financial system.‖ notes the study. loyalty and sense of responsibility that are important to keeping the organization together. In Mexican companies. With the exception of Argentina and Costa Rica. However. because a boss must assume that role without actually behaving as such. For example.‖ Third. 11. social relationships and physical appearance ―can explain the cultural content of the glass ceiling in Latin American companies. Latin American firms are managed like a family. even if his ―sons‖ wind up being too dependent in many respects throughout their working career.2 The Importance of Social Status This is the cultural framework that defines Human Resource practices within the Latin American company. This illustrates the hybrid style of management. as noted earlier. including religious behavior. Behaving any other way would be interpreted as an offense against one‘s superiors and colleagues.‖ notes the study. ―The senior executive has the personal obligation to protect subordinates. especially recruitment and personnel management. Job titles and additional benefits also have a great significance because of the social status that they bring. some practices are rejected by employees. especially Latin American women. Latin Americans prefer to depend on someone closer to the center of the organization. popular celebrations play a major role in the workplace. So managers feel obliged to provide formal basic education and technical training whenever they modernize work procedures. age and sex. It is no easy task to play the role of supervisor. Doing so would have disciplinary consequences. First. all of which are associated with social status. birthplace and other factors. however. Second. This guarantees the trust. Latin American corporate training and development divisions suffer significant internal conflict when it comes time to provide more advanced business training. ―The shortage of . In Chilean companies. the researchers said there is insufficient empirical research in that area. Latin American companies try to eliminate the existing power distance between directors and subordinates by creating committees that symbolize the egalitarian spirit among all members of the organization. Employees generally put the well-being of their families ahead of their professional careers. paternalism involves a ―father‖ who cares for his sons by engaging in permissive practices and providing moral support. ―Latin Americans value status within a hierarchy because it indicates social distance between the higher-up and his subordinates.‖ Generally speaking. Companies generally recruit new workers through their current employees and employees‘ family members and close relatives. age and gender. there is the importance of personal relationships. paternalistic leadership. They realize that new management techniques don‘t always fit in well with local tradition. and even take care of the personal needs of workers and their families. Dávila and Elvira explain that social differences are manifested locally through benevolent.The authors define the Latin American business model as a hybrid of globalization and the region‘s historic traditions. in addition to social contacts. those traditions are characterized by large social gaps and a widespread collectivism that has various manifestations. On the other hand. ―Despite this sort of hierarchical status.‖ In Chilean companies. there is a sense of loyalty to the primary group. for example. and to accept that this authority leads to behavior that avoids conflict and confrontation with one‘s superiors. social discrimination exists on the basis of appearance. Latin Americans expect to be treated with courtesy and kindness while at work. The collective spirit of the workplace is manifested in several ways. executive selection and promotion generally reflect physical appearance.
technical knowledge. It is also important to recognize the loyalty of employees by establishing ceremonies that honor their seniority. with grave consequences. This frees each employee from taking responsibility. the research should be viewed cautiously. Subcontracting and Geographical Mobility According to the study. Only multinational companies and large Latin American firms provide variable compensation based on corporate performance. Dávila and Elvira warn that individual financial compensation can stigmatize a worker as a ―favorite‖ of management. That kind of approach does not reflect the preferences of Latin American culture. the results of that sort of evaluation are rarely used. family also plays a central role. including family. socio-economic level. highly valued benefits for top executives confer extra status – including luxury cars. Latin American culture ―tends to favor the development of teamwork. If Mexicans had a choice. Dávila and Elvira warn about linking compensation to formal evaluation of workers‘ performance.‖ says the study. it is not easy to make this work. Compensation usually comes in the form of fixed salary. Latin American companies usually devote only a small part of their budget to training. 11. the authors warn. and found young. The worker can wind up being rejected by the group. they prefer a managerial style in which one senior executive makes the decisions. ―That style may well be necessary. Latin Americans traditionally accept the sort of manager who acts as a mediator between parties in a conflict.‖ When it comes to compensation.‖ says the study. Young managers accepted modern methods of management and production more readily than older managers did. Not surprisingly. Nevertheless. However. because the culture of work varies significantly according to age. The hybrid model of management is clear when it comes to working arrangements. not on factors that promote teamwork and organizational flexibility. Some studies discovered that ―manufacturing plants in Mexico made major cuts in their expatriate staffs.3 Teamwork. Fixed salaries are more appropriate in a hierarchical and individualistic system where more value is placed on the centralization of authority. Given the low level of confrontation between managers and their subordinates. Moreover. When it comes to compensation and recognition. bilingual talent with managerial skills and university degrees [to replace them]. Many benefits. In contrast. and educational achievement. the quality of family life cushions workers from recurrent economic crises. In Mexico. including vacations and retirement benefits. and private-school tuition for their children. concepts that are essential to teamwork. involved ceremonial recognition. . It allows companies to resolve conflicts and confrontations. Although employees accept the idea of getting involved in modern managerial practices. because power sharing and decentralization run against the grain of such Latin American cultural values as centralization and organizational hierarchy. formal education. they would not work. given the dynamics involved when working in groups.‖ Employees value social relationships based on personal communication and empathy. and skills for analysis and communication represent serious obstacles for Mexican workers. work is considered an obligation and way to enjoy the important things in life. however. Sharing responsibility for decision-making has other advantages. Executives who have higher education are the exception to this rule. However.
Managers impose those barriers. Latin Americans generally lack the flexibility they need. ―during times of conflict. However. In the United States. However. they argue that HR systems will become more effective if they support job stability. the most highly valued employees are. Latin Americans tend to identify with their ‗in-group. foreign investment threatens local employment. ―Because of personality and culture. However. they recommend putting workers and their families at the center of any additional benefits that the company provides. The lack of geographical mobility is another challenge for both executives and employees. and authority is rarely delegated. Some Latin American executives push for their companies to expand beyond borders. those who work full-time. ―Both those goals force senior management to learn how to share information with employees. and they take responsible positions outside their homelands. down to the bottom. Their Own Styles of Confrontation Establishing solid. .‖ says the study. Although many workers have only one option when they go looking for work. for example.Workers feel motivated to share the responsibilities of their team. stronger labor-management relations. Sometimes. families get together only once a year. Dominicans prefer autocratic intermediaries. logically. There are fewer horizontal relationships. most executives prefer to stay close to their nuclear families.‖ Beyond that. In conclusion. ―For example. Latin America‘s sense of nationalism surges. families see each other every Sunday. along with its sense of unity that provokes ―the desire to manufacture higher-quality products and use technology more efficiently.‘ rather than the entire organization. Add the fact that subordinates lack a spirit of confrontation. However. Whenever that happens.‖ Each Latin American country has its own confrontational style in times of conflict.‖ Communication within a typical Latin American organization has a hierarchical and vertical structure in which ―information generally flows from above. a senior executive of Coca Cola América Latina explained. this situation changes radically when there is a threat coming from outside and. the authors make the following proposals: From a social perspective. to assure their success. this can also provide ―another way for people to cut their individual risk by sharing decision-making with other individuals in the company. ―courtesy and diplomacy are highly valued in labor relations. They receive benefits and promotional opportunities not provided to part-time employees. social interaction. it will be hard to convince workers to accept those sorts of conditions. at Thanksgiving. as the authors note.‖ When multinational managers behave abusively. workers immediately organize unions and confront the company. managers have been accused of exploiting workers. and the sustainable development of the company.‖ The authors warn that modern approaches to organizing work may wind up failing in Latin America because of historic rivalries between management and labor during the region‘s industrialization process. In Mexico and Brazil. In an interview. Mexicans like a style that involves concern for others. and it‘s no wonder that communications are less than adequate. They also recommend that the Human Resources staff try to satisfy workers‘ basic needs. Finally. According to the study. Argentines prefer a style that involves mediating between parties in a conflict.‖ says the study. because they prefer social networks based on friendship. stable labor relations requires personal contacts as well as friendly.‖ Latin America could benefit from any cut in labor costs that might result from creating more flexible labor contracts.
http://www. Their challenge is to learn how to use culturally determined Human Resources practices – whose manifestations are hard to predict – and base them more on the organization‘s social structure than on its economics. however.html 2.uk/resources/global-etiquette/germany-country-profile.‖ The performance of HR departments must be viewed from a cultural perspective.worldbusinessculture.worldbusinessculture.com/German-Management-Style. http://www.They warn. that ―Human Resources departments will not be able to achieve a strategic position in the companies of the region until they demonstrate their direct contribution to overall organizational performance.‖ References: 1.com/French-Management-Style.html . 3.kwintessential.html.co. http://www.
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