Workshop 1: Cultural Competence

Pieter van Nispen

Remco van Bebberen
Aschaffenburg, April 9th, 2019
 Objectives and Overview

▼ Objectives
▽ Introduction on the concept and definition of culture
▽ Learning the basic knowledge of different theories on cultures

▽ Basic understanding in national cultures (countries) and organisational cultures.

▼ Overview
▽ International context
▽ Definitions and concepts of culture
▽ Culture and groups: national culture, organisational culture, individual

▽ Dealing with cultural differences

▽ Culture and leadership

 Words

▼ Managing and Leading in Different Cultures

▼ Managing and Leading across Cultures
▼ Leadership and Management across Cultures

▼ Competence

▼ Intercultural
▼ Cross-cultural
▼ Transcultural
 International Context

▼ Can a manager decide (on his / her own) to do business internationally?

▼ No, because …
▼ the world is organised in ± 200 sovereign states, implying ...
▼ that they have to give permission.

In addition
▼ States work together through representation, treaties, international organisations.
▼ International organisations may have authority over business
▼ A state is not a country or a nation.
 Culture: Definition and Concept

▼ Culture is an institution.
▼ Institution: a way of thinking acting and
feeling …
▽ of a group of people ...
▽ at a given time and place

environment

time group

values &
beliefs behaviour
On all four levels:
thinking • search for identity
& feeling • uncertainty avoidance
Mind-map of Culture
MM - Research
MM – Definitions and Concepts
MM – Aspects
MM – People
MM – Impact
MM – Dealing with Differences
 Groups; National Level

Solomon and Schell

▼ Egalitarianism – hierarchy
▼ Group focus: individual – group

▼ Relationships: transactional – interpersonal

▼ Communication styles: direct – indirect
▼ Time orientation: low – high

▼ Change averse - change tolerant

▼ Motivation/Work-Life Balance: balance – status

▼ Questionnaire
Scores
Egalitarianism 5-9 10-13 14-17 18-21 22-25 Hierarchy

Individual 5-9 10-13 14-17 18-21 22-25 Group

Transactional 5-9 10-13 14-17 18-21 22-25 Interpersonal

Direct 5-9 10-13 14-17 18-21 22-25 Indirect

Low 5-9 10-13 14-17 18-21 22-25 High

Change Averse 5-9 10-13 14-17 18-21 22-25 Change Tolerant

Balance 5-9 10-13 14-17 18-21 22-25 Status

 Countries

Argentina France Netherlands Spain

Australia Germany New Zealand Sweden
Austria Greece Norway Switzerland
Belgium Hong Kong Pakistan Taiwan
Brazil India Philippines Thailand
Brunei Indonesia Poland Turkey
Canada Iran Portugal Ukraine
Chile Ireland Qatar United Arab
China Israel Romania Emirates
Czech Republic Italy Russia United Kingdom
Denmark Japan Saudi Arabia United States
Egypt Malaysia Singapore Vietnam
Finland Mexico South Korea
 Egalitarian/Hierarchical

▼ Hierarchy/egalitarianism is the way individuals view authority and power (deference to people
in authority).
▽ whether people are entitled to express themselves
▽ how empowered people feel to make independent decisions and take the initiative
▽ Are people in authority better or have they earned that status by merit, and is it open to
other with the same degree of effort?
▼ Hierarchy/egalitarianism refers to
▽ how people view their relationship to people in power
▽ how casually or formally people relate one another
▽ whether a culture believes all people are created equal
▽ how much social mobility exists

▽ who is responsible for decision making

▽ the degree of authority and personal initiative people feel they have
 Egalitarian/Hierarchical

Austria Brazil
China Chile
Czech
Republic
Egypt
Germany
Greece
Hong Kong
Argentina Italy Brunei
Belgium Mexico India
France Philippines Indonesia
Ireland Portugal Iran
Poland Romania Japan
Australia Qatar Singapore Malaysia
Canada Finland Russia Spain Pakistan
Denmark Norway Switzerland Taiwan Saudi Arabia
Israel Sweden Ukraine Thailand South Korea
Netherlands United United Turkey United Arab
New Zealand States Kingdom Vietnam Emirates

5-9 10-13 14-17 18-21 22-25

Egalitarianism
 Group Focus

▼ Group focus describes whether people identify themselves as part of a group or by their
individual responsibility and whether work would be a collective output or a series of
individual contributions.
▼ Group focus refers to
▽ the importance of the group in relation to the individual
▽ whether people want to be distinguished from the group or considered part of a particular
group
▽ the idea that group harmony is necessary to achieve business goals
▽ the importance of living and working together in harmony
 Group Focus

Argentina
Chile Austria
France Brazil
Germany China
Hong Kong Egypt
India Greece
Iran Italy
Australia Ireland Mexico
Belgium Israel Pakistan
Czech Portugal Philippines
Republic Romania Saudi Arabia Brunei
Denmark Russia Singapore Indonesia
Finland Spain Taiwan Japan
Netherlands Sweden Thailand Malaysia
Canada Norway Ukraine Turkey Qatar
New Zealand Poland United United Arab South Korea
United States Switzerland Kingdom Emirates Vietnam

5-9 10-13 14-17 18-21 22-25

Individual Group
 Relationships

▼ The relationships dimension describes the importance a society ascribes to building extensive
connections and developing trust and how central relationships are as a prerequisite to working
with someone.
▼ Relationships refer to
▽ the importance of developing a personal relationship before conducting business
▽ the implied expectations and obligations of a relationship
▽ whether trust is assumed or earned
▽ whether rules are interpreted equally or there are special conditions for friends
▽ the value of connections
 Relationships
Argentina Brazil
Brunei Chile
Egypt
France
Greece
India
Indonesia
Italy
Australia Japan
Czech Austria Malaysia
Republic Belgium Mexico
Denmark Germany Pakistan
Finland Hong Kong Philippines
Netherlands Ireland Portugal
Norway Israel Qatar China
Poland New Zealand Singapore Iran
Romania Ukraine Spain Saudi Arabia
Russia United Taiwan South Korea
Canada Sweden Kingdom Thailand United Arab
United States Switzerland Vietnam Turkey Emirates

5-9 10-13 14-17 18-21 22-25

Transactional Interpersonal
 Communication Styles

Communication styles refer to

▼ the ways societies use language, both verbal and non-verbal
▼ the amount of information people need to receive or share in order to understand a
message. Is it brief and task-relevant, or does it include background information as
well?
▼ the directness or subtleness of the language people use
▼ the way people use words or gestures to express feeling or moods
▼ the importance of harmony and saving face
 Communication Styles

Argentina
Brazil China
Chile Egypt
Czech Greece
Republic Hong Kong
Finland Iran
France Italy
Ireland Mexico
Poland Qatar
Portugal Saudi Arabia
Denmark Romania Singapore Brunei
Germany Australia Russia South Korea India
Israel Austria Spain Taiwan Indonesia
Netherlands Belgium Ukraine Thailand Japan
Norway Canada United Turkey Malaysia
Sweden New Zealand Kingdom United Arab Pakistan
Switzerland United States Vietnam Emirates Philippines

5-9 10-13 14-17 18-21 22-25

Direct

Indirect
 Time Orientation

▼ Time orientation is the degree to which people believe they can control time and
whether schedules or people are more important. It affects time management, long-
and short-term planning, schedules, and adherence to agendas and deadlines.
▼ Time orientation refers to
▽ the amount of control people feel they have over time. Do you control time, or is
it out of your control?
▽ the importance society places on relationships versus keeping schedules
▽ attitude toward timekeeping and punctuality
▽ comfort level with short-range versus longer-term planning
▽ the appropriateness of assigning set times for social functions or business meeting
to start and finish
 Time Orientation

Argentina
Brazil China
Brunei Czech
Chile Republic Australia
Egypt France Austria
Greece Ireland Belgium
India Italy Canada
Indonesia New Zealand Finland
Iran Norway Hong Kong
Malaysia Poland Israel
Mexico Romania Japan
Saudi Arabia Pakistan Russia Netherlands
Spain Philippines Singapore South Korea Denmark
Thailand Portugal Taiwan Sweden Germany
United Arab Qatar Turkey United Switzerland
Emirates Vietnam Ukraine Kingdom United States

5-9 10-13 14-17 18-21 22-25

Low High
 Change Tolerance

▼ Change tolerance refers to the perception of how much control we believe we have
our lives and destinies (is our life determined by us or by external forces?) and our
comfort level with change, innovation, and risk taking. Do we see change as
bringing opportunities or as threats to be avoided?
▼ Change tolerance refers to
▽ openness to change and innovation
▽ willingness to take risks
▽ if people feel they control their destiny or if their environment controls them
▽ preference for rules and structure
▽ how the organization encourages and rewards initiative and deals with failure
Change Tolerance
Argentina Austria
Belgium Brazil
China
Denmark
Finland France
Germany
Greece
India Ireland
Italy Malaysia
Brunei Pakistan
Chile Poland
Czech Portugal
Republic Qatar
Egypt Romania Hong Kong
Indonesia South Korea Israel
Mexico Spain Japan
Philippines Sweden Netherlands
Russia Switzerland New Zealand
Thailand Taiwan Norway
United Arab Turkey Singapore
Saudi Arabia Emirates Ukraine United Australia
Iran 5-9 Vietnam10-13 United 14-17
States Kingdom18-21 Canada22-25

Change Averse
 Motivation/Work-Life Balance

▼ Motivation/work-life balance describes the emphasis that people in a society place

on achievement and status by hard work, versus the focus on personal time and
activities.
▼ Motivation/work-life balance refers to
▽ how people identify the ways they gain status, whether through achievement or
personal life; how people define their status in society, whether from personal
life or work achievements
▽ how one’s work influences one’s self-image and self-perception
▽ motivation for success: why people work and what I means
▽ how much work-life balance is values
▽ which is more motivating: time off or a promotion\the presence or absence of
laws and policies promoting family benefits
▽ what constitutes status
 Motivation/Work-Life Balance

BrazilBrunei
Chile Czech Rep
Egypt Denmark
France Finland
Germany Ireland
Greece Israel
India Italy
Indonesia Netherlands
Iran Pakistan
Malaysia Philippines
Mexico Poland
New Zealand Romania
Portugal Russia Australia
Qatar Sweden Canada
Norway Spain Ukraine Hong Kong
Saudi Arabia Switzerland United Singapore China
United Arab Thailand Kingdom South Korea Japan
Emirates Turkey Vietnam Taiwan United States

5-9 10-13 14-17 18-21 22-25

Balance Status
 Groups; Organisations

▼ Definition: the way of thinking, acting and feeling of the people working for that organisation
▼ Influence from national cultures, suppliers, customers and more
▼ Problems in international context; e.g. daughter company
▼ Hard to measure
▽ USA versus Europe – values versus practices
▽ European research: Hofstede, Dreimüller
 Dreimüller; 4ling®
change support control

external

society

external
task culture aim culture
proces

primary
make task oriented
internal

means

internal
team culture process culture

change proces control

 Task Culture
▼ core: activities
▼ approach: the method, the objective
becomes clear while doing the job
▼ systems: adapting rules and procedures
▼ allows making mistakes
▼ staff: curious, innovative
▼ organisation: initiative, freedom,
egalitarian, informal
▼ communication: open
▼ success: new products
▼ management style: innovator, mediator,
taking risk
▼ key: creativity, improvisation, future
directed
▼ examples: R&D departments, advertising
agencies, investment companies
▼ danger: pursuing a hobby
 Aim Culture
▼ core: results
▼ approach: use people effectively
▼ systems: rules and procedures depending on
objective
▼ failures do not exist
▼ staff: obedient, carry out instructions
▼ organisation: logical whole on basis of
power
▼ communication: one-way traffic
▼ success: market share
▼ management style: producer and manager
▼ key: position, winning, effective
▼ examples: police stations, marketing
departments, operation theatres
▼ danger: compartmentalization
 Team Culture
▼ core: adaptation
▼ approach: work tuned to employee
▼ systems: broad interpretation of rules and
procedures
▼ mistakes: improved, not punished
▼ staff: not controlled
▼ organisation: security and consensus
▼ communication: negotiations
▼ success: care for people
▼ management style: mentor and stimulator
▼ key: teamwork, trust, loyality, preventing
conflicts, the human being
▼ examples: retail trade, group practices
▼ danger: anarchy
 Process Culture
▼ core: systems, rules and procedures
▼ approach: formalised realisation of
objectives
▼ systems: optimizing rules and procedures
▼ preventing structural mistakes
▼ staff: controlled
▼ organisation: impersonal, no individual
freedom, controls, provides security
▼ communication: set down responsibilities,
measuring and documentation
▼ success: routine
▼ management style: controller and
coordinator
▼ key: process, ratio, plans
▼ examples: insurance companies,
government
▼ danger: bureaucracy
 Dreimüller; Example

TEAM

4.0

2.0

Present culture
PROCESS 0.0 TASK
Desired culture

AIM
 Hofstede’s Model; Dimension 1 and 2

Effectiveness Customer oriented

▼ Means oriented ▼ Internal focus

▽ ways of doing things ▽ honesty
▽ how ▽ knowing what is best for the customer

▼ Goal oriented ▼ External focus

▽ realising goals ▽ do what the client wants
▽ what ▽ results

▽ pragmatic
 Dimension 3 and 4

Control Social control

▼ Loose working discipline ▼ Local

▽ loose structure ▽ short term
▽ low predictability ▽ internally oriented

▽ limited control and discipline ▽ strong social control

▽ lots of improvisation ▼ Professional culture
▼ Tight working discipline ▽ the opposite

▽ the opposite
 Dimension 5 and 6

Attitude towards outsiders Management philosophy

▼ Open system ▼ Focus on people

▽ outsiders welcome
▽ everybody fits in
▼ Closed system
▽ the opposite
▽ taking the personal problems of staff into
account
▼ Focus on work
▽ putting much pressure on people to
deliver their work in time
 Dimension 7 and 8

Leadership Identification with the organisation

▼ Autocratic ▼ Degree of feeling fitting in in the

▼ Paternalistic organisation
▼ Consultative
▼ Democratic
 Groups; Individual Culture

education socio-economic
sex colour status
profession age
sexual sports
political preference physical
preference mental religion
vitality
parenthood ethnicity
family Hoffman

national
organisation
team
individual
 Dealing with Cultural Differences

Knowledge
Attitudes

Skills

Cultural Competence
 Golden Rules

▼ Respect, politeness
▼ Mentality, background, development
▼ Give time, opening
▼ Question yourself, never be satisfied about yourself
▼ Transfer of information: form and content, interactive, variation
▼ Language!
▼ Jokes: yes and no
▼ Know your own culture
▼ Sensitivity for status
▼ Collectivism versus own responsibility
▼ Obedience versus initiative

… and ultimately your own list!

Bridging Differences
 Culture and Leadership

▼ GLOBE: Global Leadership and Organizational Behavior Effectiveness; builds (originally) on

Hofstede; www.globeproject.com
▼ Studt 2004: country visualisations
▼ CEO study 2014; over 1,000 firms in 24 countries
▽ How does national culture influence the kinds of leadership behaviors expected in a society?
▽ What CEO behaviors generally lead to success?
▽ What are some distinctions between the high-performing CEOs (i.e., superior), and
underperforming CEOs (i.e., inferior)?
▽ How important is it that CEO leadership behaviors match the leadership expectations within
a society?
Finding National Culture

NB no direct link between national culture and CEO behavior

 Finding Behaviour and Success

▼ Six global leadership behaviors

▽ Charismatic leadership behavior most impactful leadership behavior (both TMT Dedication
and Firm Performance); all six of the primary dimensions of Charismatic leadership are
important
▽ CEO Team-Oriented behavior
▽ Humane-Oriented leadership
▽ Participative leadership is moderately related to TMT Dedication but not Firm Performance
▽ Autonomous and Self-Protective leadership are generally ineffective.
▽ Administrative competence also proved to be quite significant in impacting both TMT
Dedication and Firm Performance
Finding CEO Performance

Part of chart; dark blue: superior CEOs, light blue inferior

 Finding Leadership and Society

▼ The “fit” (or match) between the CEOs behavior and the leadership expectations within a
society predicts the level of TMT Dedication and Firm Competitive Performance. Better fit
with expectations gives the CEO better results in terms of the TMT Dedication and Firm
Performance.
▼ In addition, GLOBE findings speak to leadership effectiveness in terms of leaders matching,
failing to match, or exceeding societal expectations. Superior CEOs exceed their societies’
expectations … also exceed their societies’ expectations regarding administrative competence
▼ CEOs who lead extremely dedicated TMTs and extremely competitive firms are substantially
more visionary, performance oriented and administratively competent than expected by their
societies.
MM - Research
 MM - Research

▼ Culture affects everyone (part of culture)

▼ Stereotypes cannot be avoided
▼ Stress commonalities for staff and stakeholders but spot the differences that may benefit the
performance
MM – Definitions and Concepts
 MM – Definitions and Concepts

▼ An understanding of culture
▽ one definition
▽ one concept

▼ Awareness of basic perceptions, stressing communicative moral universalism and avoiding

monism and relativism
▼ Need for cultural competence for everyone (in different degrees)
MM – Aspects
 MM – Aspects

▼ Values versus practices (in organisational culture)

▼ Working with or against nature (e.g. pollution, climate change, energy)
▼ Focus on task or person (national and organisational culture)
▼ Degree of showing emotions – business like versus human scale
▼ Degree of following rules and taking circumstances into consideration
▼ Stressing appropriate symbols and heroes
▼ (In)formal power, soft controls, positive management
▼ Functional versus social hierarchy (positions, job titles); egalitarianism
▼ Work-life balance: relates to involvement with company
▼ Change tolerance (in itself and over time)
▼ Gender (role patterns): playing up and suppression
MM – People
 MM – Dealing with Differences

▼ Body language: kinesics (greetings, gestures, facial expressions), touching, clothing and
physical appearance
▼ Tone of voice; pitch!
▼ Direct and indirect communication
▼ High and low context
▼ Attitudes
▼ Adaptation
 MM – People

▼ Organisational culture
▼ Teams
▼ Individual and group (the relation as such)
▼ Identity
MM – Impact
 MM – Impact

▼ Functioning in multicultural society

▼ Globalisation and its impact
▼ Transformation in Central and Eastern Europe
▼ Effects of organisation of society
▼ Time (from appointments to long-term vision)
▼ Media relations
▼ Accommodation of religion; e.g. prayer times, ceremonies, key days
▼ Habits and traditions
▼ Geographical background
MM – Dealing with Differences