Cross Cultural Differences and

their Implications for Managing

International Projects
Soumendra Roy
 Widely accepted studies
• Geert Hofstede’s study of IBM employees
in many countries
• Fons Trompenaars more recent study of
cultural differences
• Z. Aycan, et al.’s socio-cultural dimensions
 Groups of distinctions
• Relations between people
• Motivational orientation
• Attitudes toward time
• Socio-cultural dimensions
 Relations between people
• Universalism vs. particularism -- a rule-
oriented society (a well-developed legal
system) vs. a person-oriented society
• Individualism vs. communitarianism – the
individual is more important than the group
or the group is more important than the
individual
 Motivational orientation
• Sharply defined roles for men and women
vs. similar roles
• Uncertainty avoidance – seeking to avoid
uncertainty vs. tolerating high uncertainty
• Power distance – people feel comfortable
with large differences in power among
people or they prefer equality
 Attitudes toward time
• Long-term vs. short term orientation –
patient about results or not
• Sequential vs. synchronic – prefer to do
tasks one at a time or comfortable doing
several things at once
• Inner vs. outer time – preference for
working on one’s own schedule or
comfortable working on group’s schedule
 Socio-cultural dimensions
• Paternalism – superiors provide guidance,
protection, and nurturing while
subordinates are loyal and deferential
• Fatalism – the belief that it is not possible
to control the outcomes of one’s actions,
so hard work and long-term plans are not
worthwhile
 Western vs. Non-Western
Values
• Individualism • Collectivism/ group
• Achievement • Modesty
• Equality • Hierarchy
• Winning • Harmony
• Internal self-control • External control
• Pride • Saving face
• Respect for results • Respect for status
• Respect competence • Respect elders
• Time is money • Time is life
 Western vs. Non-Western
Values
• Action/ doing • Being/ acceptance
• Systematic • Humanistic
• Tasks • Relationship/ loyalty
• Informal • Formal
• Assertiveness • Indirectness
• Future/ change • Past/ tradition
• Control • Fate
• Specific/ linear • Holistic
• Verbal • Non-verbal
 Y2K, a successful project
• Each nation and organization set up its
own year 2000 computer project
• Information was widely shared among
technical specialists via the internet
• People recognized all would benefit by
sharing information
• Top management supported the work
• Needed funds were made available
 Iridium, a failed project
• A satellite telecommunication network
costing $5 billion and involving 6000
engineers and managers in 26 countries
• Sold for $25 million in 2000
• The international structure was almost
impossible to manage – many languages,
cross-cultural differences, different styles
of management and communication
 Conclusions
• There is an increasing number of
international projects
• Multi-cultural teams are needed
• Cultural differences need to be seen as an
asset, not a liability
• Managers need to be culturally aware and
flexible in their leadership styles