CROSS-CULTURAL MANAGEMENT Professeur Gilles GUYOT Cross-Cultural Management

CROSS-CULTURAL MANAGEMENT Professeur Gilles GUYOT – Cross-Cultural Management – Slide N° 1

CHAPTER 1 : CROSS-CULTURAL MANAGEMENT n Chapter Outline l 1. 1 Introduction l 1. 2 Why Are Cross-Cultural Management Skills Important ? l 1. 3 Defining Culture l 1. 4 Managing Cultural Diversity l 1. 5 Implication for the Manager Gilles GUYOT – Cross-Cultural Management – Slide N° 2

Defining culture Culture is defined as the collective programming of the mind which distinguishes the members of one human group from another. …Culture, in this sense, includes systems of values; and values are among the building blocks of culture. (Hofstede, 1984 a, p. 21). Gilles GUYOT – Cross-Cultural Management – Slide N° 3

n This implies : l culture includes systems of values; l a culture is particular to one group and not others ; l it is learned and is not innate, it is passed down from one generation to the next; l it influences the behavior of group members in uniform and predictable ways. Gilles GUYOT – Cross-Cultural Management – Slide N° 4

Cultural values, beliefs, and attitudes n Values are defined as assumptions about “how things ought to be” in the society. They are often held at preconscious level and may never fully articulated. n A Belief is a conscious certainty that something exists, or is good, in the society. n An Attitude is normative – a conscious stance about how people ought to behave in the society. Gilles GUYOT – Cross-Cultural Management – Slide N° 5

Groups and synergy n A mixed-culture group is more likely to be synergistic when members : l value the exchange of alternative points of views; l tolerate uncertainty in group processes; l cooperate to build group decisions; l respect each other’s experiences and share their own; l use the exposure to other’s cultural values as a positive opportunity for cross-culture learning; l can overcome the misunderstandings and inefficiencies that result from members of different cultures working together. Gilles GUYOT – Cross-Cultural Management – Slide N° 6

CHAPTER 2 : DOING YOUR OWN ANALYSIS n Chapter outline l 2. 1 Introduction l 2. 2 Stereotypes and Generalizations l 2. 3 The Process of Analysis l 2. 4 Using Data l 2. 5 Developing, Testing and Correcting the Hypothesis l 2. 6 Implications for the Manager Gilles GUYOT – Cross-Cultural Management – Slide N° 7

Stereotypes and Generalizations Fixed Stereotyping Creative Generalization Attitude to the other culture Static, inflexible Dynamic, flexible Attitude to new experience Selective Explanatory Attitude to experience that contradicts the stereotype/generalization Disregarded Applied Attitude to the stereotype/generalization To be protected at all costs Always liable to modification Source of the stereotype/generalization Received Created Gilles GUYOT – Cross-Cultural Management – Slide N° 8

Framework for systematizing data n What typically happens ? n How is the behavior typically performed ? n Who typically participates ? n How do the participants typically contribute ? n What data, implements, etc. are used in the behavior ? n Where is the behavior typically performed ? n When is the behavior typically performed ? The information collected is used to explain Why. Gilles GUYOT – Cross-Cultural Management – Slide N° 9

Sources of data n Agencies, reports etc… n Journalism; newspaper stories and magazine articles; other media. n Other outsiders. n Members of the local culture. n Scholarly analysis (see chapter 3). Gilles GUYOT – Cross-Cultural Management – Slide N° 10

CHAPTER 3 COMPARING CULTURES n Chapter outline l 3. 1 Introduction l 3. 2 Modeling Cultural Orientations l 3. 3 Cultural Contexts l 3. 4 Culture, Status and Function l 3. 5 Culture and the Workplace l 3. 6 Implications for the Manager Gilles GUYOT – Cross-Cultural Management – Slide N° 11

The Kluckhohn-Strodtbeck Model Orientations Range of Variations Good (changeable/unchangeable) What is the nature of people ? A mixture of good and evil Evil (changeable/unchangeable) What is the person’s relationship to nature ? What is the person’s relationship to other people ? Dominant In harmony with nature Subjugation Lineal (hierarchical) Collateral (collectivist) Individualist Gilles GUYOT – Cross-Cultural Management – Slide N° 12

. . . /. . . Orientations Range of Variations What is the modality of human activity ? What is the temporal focus of human activity ? Doing Being in becoming Being Future Present Past Private What is the conception of space ? Mixed Public Gilles GUYOT – Cross-Cultural Management – Slide N° 13

High and Low- Context Cultures (Hall 1976) n In high-context cultures l Relationships between individuals are relatively long lasting and individuals feel deep personal involvement with each other. l Because so much is communicated by shared code, communication can be economical, fast and efficient – particularly in a routine situation. l People in authority are personally responsible for the actions of subordinates. l Agreements tend to be spoken rather than written. l Insiders and outsiders are tightly distinguished. l Cultural patterns are ingrained and slow to change. n Low-context cultures have opposite characteristics Gilles GUYOT – Cross-Cultural Management – Slide N° 14

“Though their professional activity, managers, play an important role in society”* Percentages in agreement Denmark 32% USA 52% United Kingdom 40% Switzerland 65% Netherlands 45% Italy 74% Germany 46% France 76% Sweden 54% * Source : Laurent, 1983, P. 80 Gilles GUYOT – Cross-Cultural Management – Slide N° 15

“ In order to have efficient work relationships, it is often necessary to bypass the hierarchical line”* Percentages in disagreement Sweden 22% Belgium 42% United Kingdom 31% France 42% USA 32% Germany 46% Denmark 37% Italy 75% Netherlands 39% China 6% Switzerland 41% * Source : Laurent, 1983, P. 86 ; Adler et al. , 1989, P. 64 Gilles GUYOT – Cross-Cultural Management – Slide N° 16

“It is important for a manager to have at hand precise answers to most of the questions that his subordinates may raise about their works”* Percentages in agreement Sweden 10% France 53% United Kingdom 27% Germany 46% USA 18% Italy 66% Denmark 23% Indonesia 73% Netherlands 17% China 74% Switzerland 38% Japan 78% Belgium 44% * Source : Laurent, 1983, P. 86 Gilles GUYOT – Cross-Cultural Management – Slide N° 17

Culture and the workplace The hofstede research n Work-related values are not universal; n National cultural values are likely to persist, even when a multinational tries to impose the same norms on all its branches; n Local values determine how headquarters regulations are interpreted; n By implication, a multinational that insists on imposing the same organizational norms is in danger of creating unnecessary morale problems and inefficiencies. Gilles GUYOT – Cross-Cultural Management – Slide N° 18

Hofstede n Comparisons between the different cultures are plotted across four dimensions : l Power distance : the distance between individuals at different levels of a hierarchy; l Uncertainty avoidance : more or less need to avoid uncertainty; l Individualism versus collectivism : the relations between the individual and his/her fellows; l Masculinity versus feminity : the division of roles and values in society. Gilles GUYOT – Cross-Cultural Management – Slide N° 19

Key to the countries and regions in Figures l l l l l l ARA Arab countries (Egypt, Lebanon, Lybia. Kuwait, Iraq, Saudi-Arabia. U. A. E) KOR South Korea ARG Argentina AUL Australia AUT Austria BEL Belgium BRA Brazil CAN Canada CHL Chile COL Colombia COS Costa Rica DEN Denmark EAF East Africa (Kenya, Ethiopia, Zambia) EOA Equador FIN Finland FRA France GBR Great Britain GER Germany GRE Greece GUA Guatemala HOK Hong Kong IDO Indonesia IND India IRA Iran IRE Ireland l ISR Israel l ITA Italy l JAM Jamaica l JPN Japan l MAL Malaysia l l MEX Mexico l NET Netherlands l NOR Norway l Nzl New Zealand l PAK Pakistan l PAN Panama l PER Peru l PHI Philippines l POR Portugal l SF South Africa l SAL Salvador l SIN Singapore l SPA Spain l SWE Sweden l SWI Switzerland l TAI Taiwan l THA Thailand l TUR Turkey l URU Uruguay l USA United States l VEN Venezuela l WAF West Africa (Nigeria. Ghana Sierra Leone) l YUG Yugoslavia Gilles GUYOT – Cross-Cultural Management – Slide N° 20

Individualism – Collectivism Dimensions Gilles GUYOT – Cross-Cultural Management – Slide N° 21

Masculinity-Feminity dimensions Gilles GUYOT – Cross-Cultural Management – Slide N° 22

Individualism-Collectivism & Masculinity-Feminity dimensions Gilles GUYOT – Cross-Cultural Management – Slide N° 23

Masculinity-Feminity & uncertainty avoidance dimensions Gilles GUYOT – Cross-Cultural Management – Slide N° 24

Uncertainty avoidance & Individualism-Collectivism dimensions Gilles GUYOT – Cross-Cultural Management – Slide N° 25

Power distance & uncertainty avoidance dimensions Gilles GUYOT – Cross-Cultural Management – Slide N° 26

Hofstede’s Model n Weaknesses : l Suggestion that culture coincides with national territory. l Methodological and conceptual weaknesses. l Culture-bound; research parameters set by Western team. l Respondents restricted to a single organization (IBM). . /. . . Gilles GUYOT – Cross-Cultural Management – Slide N° 27

Hofstede’s Model n Strengths : l Respondents restricted to a single organization (IBM) l The four dimensions make significant comparisons. l Immediate relevance to the manager. l The Biggest and the Best. l The best starting point for further analysis. Gilles GUYOT – Cross-Cultural Management – Slide N° 28

CHAPTER 4 STRUCTURES FOR MAKING DECISIONS n Chapter outline l 4. 1 Introduction l 4. 2 The functions of structure l 4. 3 Influences other than culture l 4. 4 Culture and structure l 4. 5 Bureaucracy l 4. 6 Implications for the Manager l 4. 7 Summary l 4. 8 Exercise Gilles GUYOT – Cross-Cultural Management – Slide N° 29

The Functions of structure n Structures have the functions of l Assigning Responsibilities Each member of the organization is given responsibilities for performing specific tasks. l Assigning Relationships The tasks assigned to the member are coordinated with those assigned to other members. Gilles GUYOT – Cross-Cultural Management – Slide N° 30

Influences on the Organizational structure n Factors that influence the structure include : l strategic factors l industry factors l size l technology l the complexity of the task l culture Gilles GUYOT – Cross-Cultural Management – Slide N° 31

Vertical communication in a simple hierarchy A C B Gilles GUYOT – Cross-Cultural Management – Slide N° 32

Horizontal communication in a simple hierarchy A C B Gilles GUYOT – Cross-Cultural Management – Slide N° 33

Relations in a hierarchy A D B C Gilles GUYOT – Cross-Cultural Management – Slide N° 34

Bypassing the Hierarchy (1) A D B C Gilles GUYOT – Cross-Cultural Management – Slide N° 35

Bypassing the Hierarchy (2) A B C Gilles GUYOT – Cross-Cultural Management – Slide N° 36

The Matrix Structure B A C Gilles GUYOT – Cross-Cultural Management – Slide N° 37

The Bureaucracy n Job specification l The bureaucrat is expected to perform specified duties, and to refrain from meddling in the duties allocated to others. l He/she fills a particular specialized function which complements functions performed by other members of the organization. …/… Gilles GUYOT – Cross-Cultural Management – Slide N° 38

n Reporting relationships l Relationships with superiors, subordinates, and peers are regulated. n Remuneration l Pay and allowances (including sick pay and pensions) are structured for all members of the organization according to their rank and duration of service, and the emoluments paid for any given job are tipically detailed in the job specification. …/… Gilles GUYOT – Cross-Cultural Management – Slide N° 39

n Entry to the organization l Qualifications for entry (which usually include examinations passed and certificates held) are specified. Age restrictions also apply. The bureaucrat is appointed on the basis of his/her knowledge and professional expertise. n Criteria for promotion, rewards and punishments n Exit from the organization l The bureaucrat must retire by a certain age, for instance 65. Gilles GUYOT – Cross-Cultural Management – Slide N° 40

n Crozier (1964) analysed four basic elements in French bureaucracy : l the impersonality of the rules - members have a low tolerance of ambiguity, reflecting high needs to avoid uncertainty l the centralization of decisions l strata isolation - senior officials (who have passed the baccalaureate) from junior officials, reflecting high-power distances l the development of parallel power relationships Gilles GUYOT – Cross-Cultural Management – Slide N° 41

The Full Bureaucracy Large power distances Large needs to avoid uncertainty Gilles GUYOT – Cross-Cultural Management – Slide N° 42

The Market Bureaucracy Small power distances Small needs to avoid uncertainty Gilles GUYOT – Cross-Cultural Management – Slide N° 43

The Workflow Bureaucracy Small power distances Large needs to avoid uncertainty Gilles GUYOT – Cross-Cultural Management – Slide N° 44

The Personnel Bureaucracy Large power distances Small needs to avoid uncertainty Gilles GUYOT – Cross-Cultural Management – Slide N° 45

CHAPTER 5 PATRONAGE RELATIONSHIPS n Chapter outline l 5. 1 Introduction l 5. 2 Informal relationships and patronage l 5. 3 Patronage, society and culture l 5. 4 The organizational context l 5. 5 Building modern organizations in patronage cultures l 5. 6 The "Outsider" manager and informal relationships l 5. 7 Implications for the manager Gilles GUYOT – Cross-Cultural Management – Slide N° 46

Thank you Gilles GUYOT – Cross-Cultural Management – Slide N° 47