Cross Cultural
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1 CULTURE
Transcript of Cross Cultural
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CULTURE
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Outline
Part I. What is culture? Understanding the concept of culture
Part II. What is the impact of culture? Leadership and HRM practices in cultural context
Part III. How to manage cross-cultural interactions and culture change? Case discussions Cultural intelligence
Part IV. Developing global culture and identities
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Part I
Understanding the Concept of Culture and Cross-Cultural Differences
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Culture & Globalization In the EightiesOctober, 1989
A developmental approach to understanding of Culture: Change of Mindset 1990-2005
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February, 1990
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Cross Cultural Alliances
May, 1999
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From Culture’s Differentiation to Culture’s integrationGeneration EA - Ethnically Ambiguous
NYTimes, Dec. 28, 2003
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From ToMindset
Fear of other Cultures Culture’s Differentiation
Ethnocentric Mind
Mindset Alliances across cultures Culture’s Interface &
Integration Global Mind
Where were we, where are we and where are we going?
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What is Culture?
A Shared Meaning System. Shared Values Shared Cognition Social Glue (Smircich, 1984)
The software of the mind (Hofstede,1990).
Shared knowledge structure that results in decreased variability (Erez & Earley,
1993).
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Artifacts and Creation - Art -Technology- Patterns of Behavior
ValuesTestable in the physical contextTestable by social consensus
Basic Assumptions aboutRelationship to EnvironmentReality, Time, SpaceHuman Nature, Activity & Relationship
Culture – a Multi Layer Construct (Schein,1985)
Visible - External
Greater Level of Awareness
Invisible – Internal
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Representations of Culture
Artifacts: Architecture and design Rituals Physical Proximity Dress Codes Expression of Emotions Beliefs and values
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Cultural Values(Hofstede, 1980, 1991, 2001)
Individualism Vs. Collectivism - The way people relate to each other:
Individual Vs. group goals
Nuclear Vs. Extended families
Self interest Vs. interest in group members
Preference to be by oneself Vs. with others
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Cultural Values (Cont.)
Power Distance (Equality Vs. inequality)-
The extent to which members of a culture accepts inequality and large differentials between those having power, and those having little power.
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Cultural Values (Cont.) Uncertainty Avoidance - reflects the emphasis
on rules and regulations, rituals, and extensive documentation.
Masculinity Vs. Femininity -Gender differentiation in roles and occupations is high in masculine cultures, and low in feminine cultures.
Future Time Orientation – Long versus short term planning.
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Hofstede, 1980
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Cultural Values (GLOBE, 1996-2004)
Collectivism 1- Social Collectivism 2- Institutional Power Distance Performance Orientation Future Orientation Assertiveness Gender Egalitarianism Humane Orientation
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National Culture (House et al., 2004) Israel Germany USA Singapo
reChina
Mean Mean Mean Mean Mean
Uncertainty Avoidance 4.01C 5.22A 4.15B 5.31A 4.94A
Power Distance 4.73C 5.25B 4.86B 4.99B 5.04B
Collectivism Group based 4.70B 4.02C 4.25C 5.64A 5.80A
Performance Orientation 4.08B 4.25B 4.47A 4.90A 4.45A
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High Context Vs. Low Context Cultures
Collectivistic cultures tend to be high context cultures.
In this culture the context of the message is important for interpreting the message and for sense-making.
Individualistic cultures tend to be low context cultures.
In these cultures the message is interpreted independent of its context.
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Tight Vs. Loose Cultures
Tight Cultures - High level of homogeneity, and strong shared values.
Loose Cultures - Low level of homogeneity, and high diversity.
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WORK BEHAVIOR(performance)
MOTIVATIONAL APPROACHES:
• Rewards• Participation in D-M and G-S• Job enrichment• TQM
INDEPENDENT / INTERDEPENDENT SELFSelf-Derived Motives:
(1) Enhancement; (2) Efficacy; (3) Consistency
CULTURAL VALUES
Collectivism / Individualism
Power Distance
Cultural Self Representation Erez & Earley, 1993
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Model Interpretation
Cultural Values are represented in the Self.
shape different selves - Independent and Interdependent Self.
serve as criteria for evaluating the meaning of management practices.
managerial practices positively affect behavior when the self interprets them as contributing to a person’s self-worth and well-being.
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A Multi-Level Model of Culture A Multi-Level Model of Culture ((Erez & Gati, 2004Erez & Gati, 2004))
IndividualCultural self-representation
Group Culture
Organizational Culture
National Culture
Global Corporate Culture
Top-Down
BottomUp
Forces at macro
levels affect
changes at micro levels of culture
New shared meanings at micro levels shape the macro level cultures through bottom-up processes
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Part II
Culture’s Consequences: Leadership & HRM in Cultural Context
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Leadership: What is it for Who?
“Arabs worship their leaders – as long as they are in power”
“The Dutch place emphasis on egalitarianism and are skeptical about the value of leadership. Terms like leader and manager carry a stigma. If a father is employed as a manager, Dutch children will not admit it to their schoolmates…”
“Russians seek power, strength and authority in their leaders.”
“The Malaysian leader is expected to behave in a manner that is humble, modest and dignified.”
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“The Americans appreciate two kinds of leaders. They seek empowerment from leaders who grant autonomy and delegate authority to subordinates. They also respect the bold, forceful, confident, and risk-taking leader as personified by John Wayne.”
“For Europeans,everything seems to indicate that leadership is an unintended and undesirable consequence of democracy.”
“Indians prefers leaders who are nurturant, caring, dependable, sacrificing and yet demanding, authoritative, and strict disciplinarian.”
“German leaders / managers are expected to have the expertise in resolving technical problems. There is no need to ‘motivate’ workers; all they need to do is to answer all the questions.”
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‘Universal’ definition of Leadership (GLOBE project; House et al., 2004)
The ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organization of which they are members.
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Leader values, beliefs, assumptions
Leader Behavior
Subordinate behavior
Reinforce = culture fit: leader acceptance & effectiveness
Not reinforce = no culture fit: no leader acceptance & effectiveness
Culture: Societal values, beliefs, assumptions
Influence of Culture on Leadership(Aycan, 2003)
Culture: Values, prototypes, ILTs,
expectations, norms, beliefs
Subordinate perception & attribution
Culture: Repertoire of behavior,
enactment, power
Culture: Repertoire of
behavior, motivation
Organizational contingencies and
structural context; assessment of member
needs
Individual characteristics (age, gender, experience,
competencies)
Individual characteristics (age,
gender, competencies)
Organizational contingencies and structural context;
assessment of leader intentions
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“Employees want Participation”
Ask opinions of employees
Silence
Not reinforce = no culture fit: no leader acceptance & effectiveness
Culture X(low power distance)
Culture Y(high power distance)
“He is testing us” or“He doesn’t dowhat to do”
Influence of Culture on Leadership: Illustration 1
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“Employees want care and guidance in their personal & professional life”
Ask how employees are doing in their family life
Silence
Not reinforce = no culture fit: no leader acceptance & effectiveness
Culture XCulture Y
“He is violating our privacy” or“Why is he askingthis? What is his/herintentions?”
Influence of Culture on Leadership: Illustration 2
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Ideal Leadership Prototypes (House et al., 2004)
Charismatic / value-based: visionary, inspirational, self-sacrificial, integrity, decisive, performance-oriented.
Team-oriented: team integrator, diplomacy, benevolent, administratively competent.
Self-protective: self-centered, status-conscious, conflict-inducer, face saver, procedural.
Participative: non-autocratic, participative
Humane: modest and humane oriented.
Autonomous: individualistic, independent, autonomous, and unique.
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Cross-Cultural Differences in Leadership Prototypes
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Self-efficacing
Status conscious
Excellence oriented
Honest
Elitist
AutonomousRisk taker
Worldly
Indirect
Fraternal
Intra-group competitor
United StatesChina
USA vs. China (Javidan et al., 2006)
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Culture and management of work events
Use of sources of guidance: Superiors Unwritten rules Specialists Opinions based on own experience Formal rules & procedures Widely accepted beliefs
Influenced by the cultural context…
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HRM in cultural context: The challenges
For multinational corporations Global standardization vs. local competition Transition in the HRM approach:
globalization glocalization localization
For multicultural domestic organizations Diversity management; “unity through diversity”
Domestic organizations in transitioning economies Adaptation of ‘US’ HRM philosophies and practices to local
cultural identity Change of organizational culture
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Influence of Culture on HRM: The Model of Culture Fit (Aycan, Kanungo, et al., 2000)
Ecological,Socio-Economic
& Political Context
Ecological ContextLegal & Political
ContextHistorical EventsSocialization
Process
OrganizationalCharacteristics
Market Characteristics
Ownership / Control
Resource Availability
Socio-Cultural Context
Internal Work Culture
HRM Practices
Job Design
Supervisory Practice
Reward Allocation
Nature of Industry
Task-Driven Assumptions
Employee-Related Assumptions
Values, assumptions,belief systems,
behavioral patterns
Prevailing managerial assumptions about
what the key tasks are and how they should be
best accomplished.
Prevailing managerial assumptions about
employee nature and behavior
Size, structure, strategy
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Socio-Cultural Internal Work HRM Practices Context Culture
Fatalism
Empowering Supervision
Influence of Socio-Cultural Context on Work Culture & HRM Practices
Power Distance Proactivity Job Enrichment
Malleability Performance – Reward Contingency
Job Enrichment
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Cultural Variations and HRM practices (Aycan, 2005)
1. Individualism vs. Collectivism
Collectivism Individualism
2. Performance-orientation
Low High
Maintain Good Interpersonal Relationships & In-group Harmony
Improve Performance
3. Attitudes towards work
Work to live Live to work
4. Attitudes towards rules
Particularism Universalism
1 4 7
1 4 7
1 4 7
1 4 7
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6. Attitudes towards criticisms
Negative Positive
8. Problem-solving approach
Avoidance Third-party involvement Confrontation
7. Communication style
Indirect, subtle Direct, assertive
5. Nature of work relationships
Emotional Contractual
1 4 7
1 4 7
1 4 7
1 4 7
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Maintain good interpersonal relationships and in-group harmony
Improve performance
Subjective evaluations in recruitment, selection, and performance appraisal; indirect, subtle and non-confrontational feedback.
Objective and systematic evaluations in recruitment, selection, and performance appraisal; direct and explicit feedback.
Preference for internal or network-based recruitment
Preference for formal, structured and widespread use of recruitment channels
Criteria used in need assessment for training, career planning, and compensation and reward management emphasize loyalty
Criteria used in need assessment for training, career planning, and compensation and reward management emphasize performance outcomes and merit
Strong emphasis on employee welfare programs and intrinsic rewards
Awards, recognition, and bonuses for good performance
Criteria used in recruitment, selection, and performance appraisal emphasize ability to maintain good interpersonal relationships and work in harmony with others.
Criteria used in recruitment, selection, and performance appraisal emphasize job-related and technical competencies
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Maintain Status Hierarchy Promote egalitarianism & participation
1. Societal & Organizational Structure (Power Distance) Hierarchical
Egalitarian
3. Attitudes towards rules
Particularism Universalism
2. Decision making process
Centralized Consultative Participative
4. Most common leadership Style
Autocratic Paternalistic Democratic
1 4 7
1 4 7
1 4 7
1 4 7
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Maintain status hierarchy Promote egalitarianism & participation
Criteria used in recruitment, selection, performance appraisal, training and development need assessment, and compensation and reward management emphasize good interpersonal relationships with higher management, social class, seniority, and age
Criteria used in recruitment, selection, performance appraisal, training and development need assessment, and compensation and reward management emphasize job-related competencies and merit. Equal employment opportunity is encouraged
Differential criteria and methods used in recruitment, selection and performance appraisal
Uniform criteria and methods used in recruitment, selection and performance appraisal
Top-down performance appraisal Multiple assessors and multiple criteria in performance appraisal
Non-participative decision making in training need assessment, job analysis, and human resource and career planning
Participative decision making in training need assessment, job analysis, and human resource and career planning
One-way lecturing; role-modeling of superiors Participative, interactive training
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Inflexibility; lack of belief
in change & development
Flexibility; belief in change & development
1. Fatalism
High Low
4. Perception of human nature
Evil & stable Good & malleable
2. Planning
Past-oriented Present-oriented Future-oriented
(short-term) (long-term)
3. Attitudes towards change
Negative Neutral Positive
1 4 7
1 4 7
1 4 7
1 4 7
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Inflexibility; lack of belief in change and development
Flexibility; belief in change and development
Preference for internal or network-based recruitment
Preference for external recruitment
Low performance-reward contingency
High performance-reward contingency
Process-oriented performance evaluation (intention, effort, motivation to do the job)
Results-oriented performance evaluation
Not-so-strong emphasis on training and development
Strong emphasis on training and development
Detailed, narrowly defined, fixed job desciptions
Broad, flexible, dynamic job descriptions
Employee security plans
Equity principle in compensation and reward management; individual bonuses / commissions
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Summary of Part II National and organizational culture has an impact on leadership and HRM
practices.
There needs to be a fit between the cultural context and HRM practices. Which one to change first to enhance the fit: values or practices?
The winning combination: adapt the HRM practices to fit the organizational culture & adapt the organizational culture to fit the HRM practices.
Start changing the HRM practices gradually.
Start the change at the behavioral level. Through rewarding and modeling of the correct behavior, values are expected to change. Leadership is the key in this process.
Cultural change should be supported by HRM systems: recruitment & selection, training & development, performance appraisal & rewarding.
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HRM Practices
Leadership
Organizational Culture: Values
Change: Where to start?
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Part III
How to Manage Cross-Cultural Interfaces and Culture Change
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Cultural intelligence is being skilled and flexible about understanding a culture, learning increasingly more about it, and gradually shaping one’s thinking to be more sympathetic tot eh culture and one’s behavior to be more fine-tuned and appropriate when interacting with others from the culture (Thomas & Inkson, 2005).
Knowledge – of culture and of the fundamental principles of cross-cultural interactions. Knowing what culture is, how cultures vary, and how culture affects behavior.
Mindfulness – the ability to pay attention in a reflective and creative way to cues in the cross-cultural situations encountered.
Behavioral skills – based on knowledge and mindfulness. These skills become competent across a wide range of situations and involve choosing the appropriate behavior from a well-developed repertoire of behaviors that are correct for different intercultural situations.
CQ: A Key to effectively managing cross-cultural difference
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“A person with high cultural intelligence can somehow tease out of a person’s or group’s behavior those features that would be true of all people and all groups, those peculiar to this person or this group, and those that are neither universal nor idiosyncratic” (Earley & Masokowski, 2004, p.140)
Cultural intelligence has three components (Earley & Ang, 2003)
Cognitive: The skills needed to conceptualize a new culture and to gather information about a new world.
Motivational: Desire to adapt to the other culture.
Behavioral: Capability of an individual to actually engage in behaviors which are adaptive.
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Case analysis
Moscow Aerospace Mr. Smith and Mr. Gonzales
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Part IV
Globalization, Global Corporate Cultures,Global Identities
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Globalization
NAFTAEUROPEAN COMMUNITY
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Protest against the Globalization
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Approaching Globalization at two levels
The corporate level – A Global Corporate Culture
The individual level – A Global Identity
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How a Global Corporate Culture is Created?
Culture = Shared Meaning System
(Bandura, 1986; Hofstede, 1980; Kluckhon, 1952;
Shewder & LeVine, 1984;Triandis, 1972)
Shared Meaning ~ Belonging to same Culture
Global Culture = Shared Meanings and Values by Players in the Global Context
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Definition:
Global Corporate Culture: the shared understanding of the visible rules, regulations and behaviors, and the deeper values and ethics of the global work context, beyond national borders
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The Functional role of values:
Adaptation to the Environment
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Global Work Context
Geographical dispersion
Cultural Diversity
High Uncertainty
Global Competition
Threat to one’s cultural Identity – Getting Lost
Global Values
High Interdependence -Networks
Openness to Diversity Trust & Ethical Behavior Low Power Distance
(Partnership)
Openness to Change Learning
Competitive Performance Quality and Innovation Customer Orientation
People focus
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SStudy 1: tudy 1: Global Corporate Values in MNC Global Corporate Values in MNC
(Berson, Erez, & Adler, 2004)(Berson, Erez, & Adler, 2004)
Organization: A Fortune-20 high tech organization A Fortune-20 high tech organization Operating in more than 100 countries Operating in more than 100 countries
Measures: Content Analysis of:
Company Annual Reports from the year 2000 CEO speeches from 2000
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CEO quotes regarding Identity
Annual Report Speeches“Our … beliefs and core values…., include •Respect for the individual• Contribution to customers• Contribution to the community”.
“Who are we? What do we believe? What are our values?
•We preserve…values like trust, respect, integrity,
•…Contribution to our customer, as well as to the community…”
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Annual Report Speeches
•“The company…” has long been admired for our culture-•A performance meritocracy• ..and a firm belief that every community in which we…. work should benefit by our presence”.
•Benefiting from each others’ successes and suffering from each others’ failures…
•As diverse as our languages, our cultures… may be, together we are all part of one ecosystem now”.
Interdependence
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Annual Report Speeches
“Leadership in the digital renaissance will not be about hierarchy, title, or status”
Egalitarianism: “Our highly decentralized structure has enabled us to move quickly”Acceptance of Diversity
“Every community in which we live and work should benefit by our presence”.
“Diversity nourishes the soul of our company”
Egalitarianism; Diversity
64Global Values
Individualism
Short Term O
rientati
Long Term O
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Change/Innovation
Competitiveness
Egalitarianism
Accept. of Diversity
Interdependence
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CEO Speeches
Annual Report
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International Alliances MNC
International Mergers & Acquisitions
Study 2. Cultural Interface: How Local Subsidiaries & Employees Adapt to the Global
Corporate Context?
How to bridge between Cultural icebergs?
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Cultural Adaptation (Berry, 1992)
High Low
High Integration Assimilation
Low Separation Marginalizat.
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Preservation of Own Values
Glocal
Local
Global
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Key success factors (KSFs) affecting structural Key success factors (KSFs) affecting structural cooperations outcomecooperations outcome
Proceeding of the deal
Business environment
Deal strategy
National culture
Leadership
Organizational culture
Deal motivations
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KSFs Success
Integration
Enhancing success in Structural Enhancing success in Structural Cooperations - a system modelCooperations - a system model
Analysis
Synthesis
Identifying gaps in KSFs is a necessary but insufficient action for success
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Study 3: Global and Local Managerial Roles
Organization: A Fortune-20 high tech organization. Operating in more than 100 countries
Participants: 406 mid-level managers from 21 countries, classified into 6 regional zones.
Measure
A 31-item survey of Managerial Role Perceptions
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Task
People
Strategic Planning
Change
Improve organizational efficiency… align work with vision...
Demonstrate uncompromising integrity
Manage business processes to achieve breakthrough objectives
Build and execute a financial strategy that achieves growth
Increase the org. ability to anticipate global trends Lead the organization through ongoing change
Constructively intervene to resolve performance problems
Create an environment of trust and respect
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Four Factors of the Managerial RoleFour Factors of the Managerial Role
Local FocusLocal Focus
Global FocusGlobal Focus
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Findings
Similarities across Cultures with respect to Global managerial roles
Significant Differences across Cultures with respect to Local managerial roles.
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How Individual Employees Adapt to the Global Context?
Developing a sense of belongingness
Social Identity Theory (Tajfel, 1978; Tajfel & Turner, 1979)
Identity reflects individuals’ membership in a group
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Global Identity – A Sense of Belongingness to a Worldwide Culture (Arnett, 2002).
Global Corporate Identity:“Individual’s sense of belonging to, and
Identification with groups (such as multicultural teams,)
operating in the global work environment of multinational organizations (Gati & Erez, in press)
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A Global and a Local Identity Multiple Identities
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Summary Adaptation to Cultural Interface by
Developing Global Corporate Values Acceptance of Diversity Interdependence Openness to change
Balancing the global corporate values with the local cultural values.
Think Global Interact Local
Creating a sense of belongingness to the MNC and strengthening employees’ Global Identity
Creating opportunities for involvement in global activities
Facilitating the integration/Duality of a Global and a Local Identity by a supportive corporate culture
