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What are the differences in a low-context culture and a high-context culture? How would you advise a friend with a low-context culture to do business in a high-context culture? Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Herdesky, H. (2011). International management: Managing across the borders and cultures. (7 ed., pp. 135, 137 ). Upper Saddle River: The Pearson Education Company.
(Herdesky, 2011)
Chapter 3 ‘ Understanding the Role of Culture
0pening Profile: Adjusting Business to Saudi Arabian Culture
For most outsiders, Saudi Arabia is a lancl of contrasts and paradoxes. (Map 3-1 shows its location.) It has
supermodem cities. but its strict Islamic religious con
v
ictions ancl ancient social customs, on which its laws
and customs depend, often clash with modem economic and lechnical realities. Saudi Arabians sometimes
employ latitucle in legal formation and enlbrcement to ease these clashes and sometimes accommodate
different behaviors from foreigners. Nevertheless, many foreigners rnisunderstand Saudi laws and customs
or find them contrary to their own value systems. Foreign companies have had mixed success in Saud
i
Arabia due in large part to how well they unclerstood and adapted imaginativeiy to Saudi customs
.
Companies from countries with sirict separation between state and religion or where few people
actively engage in religion find Saudi Arabia’s pervasiveness of religion daunting. Religious decrees have
sometimes made companies rescind activities. For example, an itnporter halted sales of the children’s
game pokdmon because the game might encourage the unlslamic pl?ctice of gambling, and a franchisor
ivas forced to remove the face under the crown in Starbucks’ logo because Saudi authorities felt the pub-
lic display of a woman’s face was religiously immoral. However, most companies know the requirements
in advance, For instance, Coty Beauty omits models’ l’aces on point-of-purchase displays that it depicts i
n
other countries, Companies know that they must remove the heads and hands froln mannequins and musl
not display them scantily clad. Companies, such as McDonald’s, dim their lights, close their doors, and
stop attending to customers during the five times per day that men are called to pray. Companies also
adjlst voluntarily to gain the good will of customers-for exarnple, by converting revenue-generating
spice to prayer areas. (Saurii Arabian Airlines does this in the rear of its planes, and the U.K.’s Harvey
Ni.t otr does this in its department store.) During the holy period of Ramadan, people are less active
during the day because they fast, so many stores shift some opefating hours to the evenings rvhen peopie
prefer to shop.
In 2000, Saudi Arabia ratifiecJ an international agreement designed to eliminate the discrimination
of women; however, its prescribed behaviors for women appear paradoxical to outsiders. On the one
hand, rvomen now outnumber men in Saudi Arabian universities and own about 20 percent ofall Saudi
businesses. (There are separate male and female universities, and female-owned businesses can sell only
to women.) Women also comprise a large portion of Saudi teachers and doctors. On the other hand,
women account for only about 7 percent of the workforce. They cannot have private law or architectut-
al firms, nor can they be engineers. They are not permitted tc drive, because this may lead to evil
behavior. They must wear abayas (robes) and cover their hair completely when in public. They cannot
work aiongsicle men except in the medical profession, and they cannot sell directly to male customers. If
they are employetJ where men work, they must have separate work entrances and be separated from
maies by pafiitions. They must be accompanied by an adult male reiative when dealing with male clerks’
MAP 3-‘l Saudi Arabia comprises most of the Arabian peninsula. All of the
countries bordering Saudi Arabia are Arab countries (meaning that the first
language is Arabic), and all are predominately lslamic.
91
92 Part2 ‘ The Cultural Context of Global
Management
Thefema}eprescriptionshaveimplicationsforbusinessoperations.Forexample,theSaudi
American Bank established branches fot and ti”n O “”tt
by women’ Pizza Hut installed two dining
rooms-one for single men and one for ramiiies’ i*omen
do not eat there without their families’) Both
Harvey Nichols unisuk, Fiith Avenue have created women-oniy
floors in their department stores’ On
iower levels, there is mixed shopping, all nrale saiespeople
(even for products like cosmetics and bras)’
andnochangingroomsorplacestotrycosmetics’onupperfloor$,womencanchecktheirabayasand
shop in jeans. spandex, o1. *hut.u”r. The stores trave also
created drivers’ lounges for their chauffeurs’
Adownsideisthatmalestofemanagerscanvisitupperfloorsonlywhenthestofesareclosed,which
limits their ou..*uiion, of *ltoutlon* that might i*proue
servjce and performance. similady, market
research companies cannot rely on discussio”ns witir family-focused
groups to determine marketing
needs, Because men do much more of the household
purchasing, companies target them more in their
marketing than in other countries’
why do high-;;d.;;menr stores and famous designers operate in
Saudi Arabia where women
cover thenselv es in abayas and rnen typicallf weu thobis
(long robes)? Simply’ the many verY.rich
peopleinsaudiArabiaaresaidtokeepParis.ooru.”alive’EventhoughsaudiArabiaprohibitsfashion
magazines and movies. this clienteie knows what
is in fashion. (The govemment also prohibits satellite
dishes, but some estimates say that two-thircls of Saudi
homes have them’) Women buy items from
clesigners’ collections. which they wear abroad or in saudi
Arabia only in front of their husbands and
othefwomen.Underneaththekabayas,theyoltenwearveryexpensivejewelry,makeup,andclothing’
Wealthymenalsowantthelatesthigh-endfashionswhentravelingabroad,
Another paradox is that about 6o percent oithe Saudi
private workforce is foreign’ even though the
unemployment rut”l, utout 30 perceni. Ct angint *.onomic
conditions are at ieast partially responsible
for this situation. In the early 19g0s, saudi
“oil*r”urno.*
caused per capita income to jump to about
$28’000, but this plummeted below $7’000
by the early 2000s. When incomes were high,
Saudis
brought in foreignlrs to do most of the work. it the same time, the govefnment
liberally supported
univefsity training, including study abroad. saudis
developed a mentality ofexpecting foreigners to
do
all the work, o, u, i.ur, sorie of ihe work, for thern’ Ttre
tttew Zealand head of National Biscuits &
Confectionery said that Saudis now want only to
be supervisors and complain if they have to work at the
same level as people from Nepal, Bangladesh, ano
tnoia’ Although the govemment has taken steps
to
replace foreign *orter, *itr, iaudis, pievailing ;ork attitudes
impede this transition’ For exampie’ the
acceptance by a Saudi of a bellboy job at the-“Hyatt
Regency hotel in Jidda was so unusual that Saudi
newspapers put his picture on their ffont pag€s’
Saudi fuabian i”gJ.*.ti””t *”r* t ur*ttio many outsiders’ Religious
patrols may hit wornen if they
show ary hair i” p”Ufii. fnt government carries out b;headings
and hand-sevefances in public and expects
passers-by to observe the punisbments, some of which are
for crimes that would not be offenses in other
countfies. For example, the government
putficfy Uetreaded three men in e arly 2ffi2 ior being homosexuals’
However, there are inconsisrcncies. For exampl, rellgious
patrols ate more relaxed about women’s dress
codes in some Red sea resorts, and they *. tior. i*j”nt toward the visiting
female executives of MNEs
than toward Saudi women. whereas they don’t allow
Saudi women to be flight attendants on Saudi
ArabianAirlinesbecausetheywouldhavetoworkalongsidemen,theypermilrvomenfromotherArab
countries to do so. Furrher, in foreign inu”rt**t “o*poJnds
where almost everyone is a foreigner’ these
religiouspatrolsmakeexceptionstomostofthestrictreligiousprescriptions.
Interesting situations ion.”* the charging of interJst und th” purchase
of accident insurance’ both
of which are disallowed under strict trtu*ic ittt”rpretations
of the Koran’ In the case of in6rest’ the
Saudi government gives inrerest-free ioun* iol *o.tgug”*.
This worked well when saudi Arabia was
awash with oil money, but borrowers must now
*aiiuJ*t 10 years for a loan’ In the case of accident
insurance (by strict triumi” doctrine, there are no accirlents,
only preordained acts ofGod)’ the govern-
ment eliminated prohibifons because businesses
needed the insurance’
Personal interactions between cultures *” ttitty’ and those between
saudis and non-saudis are no
exception. u- ”
-*pi, i*is-Rogers tntemaiional GRI), a British publishing house’ sent
two salesmen to
saudiArabiaandpaidthemonu.o**rr’onbusir.theyexpectedthatbymovingaggressivelSthetwo
men could make the same number of calls * trr”v.”rro iritrei-rdtea ringdom.
They were used to working
eight-hourouy*,tor.*ngtheundivicledattentionofpotentialciients,andtorestrictingconversationtothe
business transaction. To &em, time wurlnon”” Ho*ever,
they found that appointments seldom began
at the
scheduled time and most often took place at’caf€s
where the Saudis would engage in what the salesmen
considered iOf,
“t
ii”ftut. Wherher in a caf6 oiin
‘i'”
office’ drinking coffee or tea and talking to acquain-
tancesseeme’dtotakeprecedenceoverbusines’*u*’Thesaiesmenbeganshowingsomuchirritationat
,.irrelevant” conversations, delayr, *o intrmtfiion’ r’o* ttitnOs tlat th:y
caus€d irrevocable damage to the
company,s objectives’ The Saudi counterpafi; considered
them rude and impatient’
whereas businesspersons from many countries invite
counterpar; to social gatherings at theil
homes to honor them and use personal 1.”tutio*t’ip’
to cement business arrangements’ Saudis view the
home as p.iuut” unJ
“u”n.onrid”.
questions aboui their families as rude and an invasion ofprivacy’
In
Chapter 3 ‘ Understanding the Role of Culture
contfast, Saudi businessmen seldom regard business discussions as
private; they thus welcome friends to
sit in. The opposite is true in many countries’
ln spite of contrasts and paradoxes, foreign cornpanies find rvays to be highly successtul
in Saudi
Arabia. In some cases, iegal ba(iers to some products, such as alcohoiic
beverages and pork products,
have created boons for otlier proclucts, such as soft drinks and turkey ham’
In addition, some companies
have developed specific pru.i.., in response to Saudi conditions and have later benefited from
them in
their home countries. For example, companies, such as Fuji and Kodak, created technology
lbr while-
you-wait photo development f;r Saudi Arabia because customers wanted to retrieve photos without
*yon” elie seeing them. They transferred this technology to the United States several years
later’
source’. John D. Daniels, Lee H. Radebaugh, and Daniel P. Sullivan, Intentational
Business:
Enviranments and operations, 1Oth ed. o 2004. Reprinted by permission of Pearson Education,
Inc”
Upper Saddle River, NJ.
This chapter’s opening profile describes how an understanding of the local culture
and business
environment can give managers an advantage in competitive industries. Foreign companies-no
matter how big-can ignore those aspects to their peril. Such differences in culture and
the way
of life in othei countries necessitate that managers develop international expertise
to manage on
a contingency basis according to the host-countty environment’ Powerful, interdependent
factors
in that environment-political, economic’ legal, technological, and cultural-influence
manage-
ment strategy, functions, and processes’
A critical skill for managing people and processes in other countries is cultural saYvy-
that is, a working knowledge oi thi cultural variables affecting management decisions’
(More te-
cenrly, that skill has becom-e known as cultural intelligence, or cultural quotient
(CQ))’ Managers
have often seriously underestimated the significance of cultural t’actors. According
to numerous
accounts, many blunders made in international operations can be attributed to a lack
of cultu
ral
sensitivity.
I Examples abound. Scott Russell, senior vice president lbr human resources at
Cendant Mobility in Danbury, Connecticut, recounts the following:
An American colnpct,ty in Japan chargecl its Japctnese HR managet’ with rcducing
the workforce. The Japanese manager stutlied the issue but couldn’t find a solutian
withitr cttltural Japanese pararneters; so vvhen he carne back to tlrc Americans’
he
recl,cerl the workjirce by resigning-which was not what they wanted’z
Cuttural sensitivity, or cultural empathy, is an awareness and an honest caring abouf
another
individual’s culture. Sush sensitivity requires the ability to understand the perspective of
those living
in other (and very different) societies and the willingness to put oneselfin another’s shoes’
International managers can benefit greatly from understanding the nature, dimensions’
and variables of a specific culture and how these affect work and organizational processes’
This cultural awareness enables them to develop appropriate policies and determine
how to
plan, organize, lead, and control in a specific international setting. Such a pfocess of adap-
tation to the environment is necessary to successfully implement strategy’ It also leads to
effective interaction in a workforce of increasing cultural diversity, in both the United States
and other countries’
Company reports and management studies make it clear that a lack of cultural sensitivity
costs businesses money and oppoitunities. One study of U.S. multinational corporations
found
that poor intercultural comrnunication skills still constitute a major management problem’
Managers’ knowledge of other cultures lags far behind their understanding of other organization-
uL p.ol”rr”r.3 tn a Jynthesis of the research on cross-cultural training, Black and Mendenhall
found that up to 40 percent of expatriate managers leave their assignments early because
of poor
performance or poor adiustment to the local environment. About half of those who remain
are considered only marginaily effective. Furthermore, they found that cross-cultural differences
are the cause of failed negotiations and interactions, resulting in losses to U’S’ firms of over
$2 billion a year for failed expatriate assignments alone.4
Other evidence indicates, however, that cross-cultural training is efTective in developing
skills and enhancing adjustment and perfomance. In spite of such evidence, U’S’ firms
do little
to take advantage ol such important research and to incorporate it into their ongoing training
programs, whose purpose is ostensibly to prepare managefs belbre sending them overseas’
93
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Chapter 3 ‘ Understanding the Role of Culture
Assertiveness This dimension ref-ers to how much people in a society are expected
to be
tough, confrontational, and competitive r,ersus moclest and tender’
Austria and Germany, for
example, are highly assertive societies that value competition and have-a
“can-do” attitude’ This
compares with Sweden and Japan, less assefiive societies, which tend to
prefer warm and co-
operatiue relations and harmony. The GLOBE team concluded that those countfies
have sym-
pathy for the weak and emphasize loyalty and solidarity’
Future orientation This dimension refers to the level of importance a society attaches
to
future-oriented behaviors such as planning and investing in the future’ Switzerland and
Singapore, high on this dimension, are inctined to save for the fufure and have
a longer time
horizon for decisions. This perspective compares with societies such as Russia
and Argentina’
which tend to plan more in tire shorter term and place more emphasis on
instant gratification’
performance orient*tion This dimension measures the importance of performance
improvement and excellence in society and refers to whether or not people are
encouraged to
strive for continued improvernent. Singapore, Hong Kong, and the united sbtes
score high on
this dimension; typicaily, this means that people tend to take initiative and
have a sense of
urgency and the
“*nO”n””
to get things done. Countries iike Russia and Italy have low scores
on this dimension; they hotd oiher priorities ahead of performance, such as tradition,
loyalty’
family, and background, and they associate competition with def’eat’
Humane Orientatien This dimension measures the extent to which a society encourages
and rewards people for being fair, altruistic, generous, caring, and kind’ Highest
on this dimen-
sion are the Philippines, Ireland, Malaysia, and Egypt, indicating a. focus on
sympathy and
support for the **k. ln those societies paternalism and patronage are important, and people are
usualiy friendly and tolerant and value harmony. This compares with Spain,
France’.
and the
former West Germany, which scored low on this dimension; people
in these countries give more
importance t0 power and materiai possessions, as well as self-enhancement.
Clearly, i’esearch results such as these are helpful to managers seeking to
be successful in
cross-cultural interactions. Anticipating cultural similarities and diflerences allows
managers to
develop the behaviors and skills necessary to act and decide in a manner appropriate
to the local
societal norms and expectations’
Cultural Clusters
Gupta et al., fiom the GLOBE research team, also analyzed their data on the nine cultural dimen-
sions to deteruine where similarities cluster geographically. Their results support the existence
of ten cultural clusters: South Asia, Anglo, Arab, Germanic Europe, Latin Europe, Eastern
Europe, Confucian Asia, Latin America, Sub-sahara Africa, and Nordic Europe. They point out
the usefulness to managers of these clusters:
Mttltinational corporatiotts nmy find it less risky and ntorc proJitable to _expand itrto
morc siftilqr cgltures rather thctn tltose’t,*hich are fltasticqlly dffirent.r3
These clusters are shown in Exhibit 3-4. To compare two of their cluster findings, for
example, Gupta et al. describe the Germanic cluster as masculine, assertive, individualistic’ and
result-oriented. This compares with the Latin Atnerican cluster, which they characterize as
practicing high power distance, low performance orientation, uncertainty avoidance, and collective:
Itttin American societies tencl. to eilact life as it conrcs, taking its tutprcdictcrbility as
a fact of tife, and trot overly wortying about results’r4
99
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Flofstede’s Va *ue Finrensisns
Earlier reseat’c1-r resulted in a pathbreaking framework for understanding how basic values under-
iie organizational behavior; this liamework was developed by Hof’stede, based on his research on
over 1 16,000 people in 50 countries. He proposed four value dimensions: power distance’ uncer-
tainty avoidan.”, inOiuldualism, and masculinity.ls We should be cautious when interpreting
these results, however, because his research findings are based on a sample drawn from one
100 Part2 ‘ The Cultural Context of Clobal Management
EXFIIBIT 3-4 Geographic Culture Clusters
1Aup
ffi:ffillffil lffi: tffi’]ffi ffilffilffilffil
l**r llf*,;: llirii* llF#'” l@f lilffik.’ l*—‘lil:irr llrffib:|
‘lGuotemolo llspmkine) llStow”a II Mexrco I —
I
v”nu.u”lo
I
Source: Data {rom V. Gupta, P’ J. Hanes, and P. Dorfman, Journal of World Business 37. no. 1
(2002): 13′
multinational firm, IBM, and because he does not account for within-country differences in
multicultur.al countries. Although we introduce these vaiue dimensions here to aid in the under-
standing of 6ifferent cultures, their relevance and application to management functions will be
discussed in later chaPlers.
The first of these value dimensions, power distance, is the level of acceptance by a society
of the unequal distribution of power in institutions. In the workplace, inequalities in power are
normal, as evidenced in hierarchical boss-subordinate relationships. However, the extent to
which
suborclinates accept unequal power is societally determined. In countries in which people display
high power distance (suc-h as
-h4alaysia,
the Philippines, and Mexico), employees acknowledge the
bo-ss’i authority simply by respecting that individual’s formal position in the hierarchy, and they
seldom bypass the ctain lf command. This respectful response tesults, predictably’ in a centrai-
ized structure and autocratic leadership. In countries where people display low power distance
(such as Austria, Denmark, anel Israel), superiors and subordinates are apt to regard one another as
equal in power, resulting in more harmony and cooperation. Clearly, an autocratic management
style is not likely to be well received in low power distance countries.
The second value dimension, uncertainty avoidance, refers to the extent to which people
in a society feel threatened by ambiguous situations. Cauntries with a high level of uncertainty
D
N
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\^”
,6f
v
Chapter 3 ‘ Understanding the Role ol Culture 101
High
jaa
MAI ARA
A&4,&AA&AA:”j
JPN SPA ARG US GER UK DEN ISR AUT
AA
FRA ITA
AA
MEX IND
Power Distonce*
Orienialion Toword AuthoritY
Low
!:iili:rl)’:*r9;r’::1’trji4tpj:’_r:i i _
_:qFit?!i’i!
:1
U ncertointy Avoidonce*
*Noi io scole-indicoles relolive mdgnitude’
l’l;e: ARA = Arob Counlries
AUT = Ausiris
Saurce”BasedonG.Hofstede,”NationalCulturesinFourDimensions”‘
,nternationat 5tudies of Managernent and Organization (Spring-summer 1983)’
avoidance (such as Japan, Porlugal, and Greece) tend to have
strict laws and procedures to which
their people adhere closeiy, unoi ,i.ong sense of nationaiism prevails’
In a business context’ this
value results in formal rules and procedures clesignerl to provide
more security and greater career
stability. Managers have a propensity for low-risk decisions, employees
exhibit little aggressive-
ness, and lit-etime employmeni is common. In countries with
lower levels of uncertainty avoid-
ance (such as Denmafk, Great Britain, and, to a lesser extent,
the United States)’ nationalism is
less pronounced, and protests ancl other such activities are tolerated’
As a consequence’ company
activities are less stl’ucturod and less formal, some managers take more risks’
and high ‘job
mobility is common.
High
.l,A A
GRE JPN
Desire for StobilitY
:j:r:r:: : rj, :.j.:ij i$ i …: .. r::l’]’r:;ri J:f :ir:;:’;r:1
:irl
AAAAAA
FRA KOR ARA GER AUL CAN
Low
A-A A A A r’1:
U5 UK IND DEN SIN
t’l;
,.r
*Not lo scole-indicotes relotive mognilude’
Note: AUI = Auskolio
Source: Based on G. Hofstede, 1983′
The third of Hofstede’s value dirnensions, individualism, refers to the tendency
of peopie
to look after themselves and their immediate families only and to neglect
the needs of society’ In
countries that prize individualism (such as the united states, Great Britain,
and Australia) dernoc-
racy, individual initiative, and achieverrent are htghly valued; the
relationship ofthe individual to
ffiirations is one of independence on an emotional level, if not
on an economic level’
In countries such as pakistan and panama, where iow individualisrn prevails-that
is,
where collectivism predominates-one finds tight social frameworks, emotional
dependence on
belonging to “the organization,” ancl a strong belief in gl-oup decisions’
People liom a collectivist
counrt, tte lapan, Uelieve in the witl of the group rather than that of the in6ividual’ and their
p”.uuriu” collectivism exerts control over inclividual members through social pressure
and the
feat of humiliation. The society valorizes harmony and saving face, whereas
individualistic
cultures generally emphasize sell–respect, autonomy’ and independence’
Hiring and promotion
practicesln collectiviit societies are based on pateinaiism rather than achievement
or personal
capabilities, which are valued in indivi’dualistic societies. Other management
practices (such as
the use of quality circles in Japanese factories) retlect the emphasis on group decision-making
processes in coilectivist societies.
Hofstede’s findings indicate that most countries scoring high on indivi{ualism
have both a
higher gross nationat pi.oduct and a freer political system than those countries
scoring low on
indivictualism-that is, there is a strong relationship u*ong individualism’ wealth,
and a political
,f*”* with balanced power. Other studies have fbund that the output of individuals working in a
group sening cliffers between individuatstic and collectivist societies. In the
United States, a highly
individualistic culture, social loafing is common-that is, people tend to
perform less when working
as pafi of a group than when worklng a1one.l6 In a comparative study of the United
States and the
People’s Republic of China (a highly coilectivist society), Earley found that the Chinese
did not
exhibit as much social ioaling as the Americunr.lT This result can be attributed to Chinese
cultural
‘alues,
which subordinate peisonal interests to the greater goal ofhelping the group succeed’
1OZ Part 2 ‘ The Cultural Context of Giobal Management
;High
lndividuolism
:-r;l$jt:i?:r:rr!4-:;,ii4gi4i|4:ih$t j4*!!–Lli:! ri:d ie ;
‘A A A A
A A
AUL U5 UK CAN FRA GER
*Nof lo sole*indicotes relolive mognilude.
Source: Based on G. Hofstede, 1983′
Colledivism
…:l
rgiii!,t!.:j:-iii:i#i|:.1tai!tr r:i:P{giiiiti}’itili!i’+u!+j|i:iii;::1″i i 4}
:
A A l A A A+!;’
SPA JPN MEX ITA KOR SIN
lndividuolism*
The fourth value dimension, masculinity, refers to the degree of traditionally “masculine”
values-assertiveness, materialism, and a lack of concem for others-that prevaii in a society’
In
comparison, f’emininity emphasizes “t’eminine” values-a concern for others, fbr relationships,
and ior the quality of tife. tn trighty masculine societies (Japan and Austria, for example),
wornen
are generally expected to stay irome and raise a family. In organizations, one finds
considerable
job ltress, and organirational interests generally encroach on employees’ private lives’
In coun-
tries with low masculinity (such as Switzerland and New Zealand), one finds
less conflict and
job stress, more women in high-ievel jobs, and a reduced need for assertiveness’ The United
states iies somewhat in the middle, according to Hofstede’s research. American
women typical-
ly are encouraged to work, and families often are able to get some support lbr child care
(through
day-care centers and maternity leaves).
.rHigh MosculinilY*
Low
i bng’l’erm/ShorFlerm
Orienlqlion*
High Low …{.’.
.A’A A A I i A A A A A $i&t fiR rin iIl viE BM Nb us cAN uK E/w AFR
*Not to role-indicoles relofive mognilude.
Source: Based on G. Hofstede,2001.
Assertive/Moteriolistic Reloiionol .r-:
:
. .;*rtsio:*,”*,rri6i.**,*:1ig+1E:,:*:;ffia:!!tl1en;{*i’}1l.it:-ltitsiil$i:*:ldl*F;l:tt3:n1€**ti1q::v
liF-
{ii*;”*{*-e- t 4’a.-“‘^a e a -4 $.-ui’=
JPN ruix cER uk us ARA FRA KoR PoR cHc DEN swE
*Not to scqle-indicoles relotive mognilude
Source: Based on G. Hofstede, 1983′
The four cultural value dimensions proposed by Hofstede do not operate in
isolation;
rather, they are interdependent an auitudes and behaviorr. po1′ example, in a 2000 study of small to medium-sized Australia, Finland, Greece, Indonesia, Mexico, Norway’ and Sweden’ based dimensions, Steensma, Marino, and Weaver found that “entrepreneurs masculine and individualistis have a lower appreciation for cooperative strategies enirepreneurs from societies that are feminine and collectivist’ Masculine op”rution in general as a sign of weakness and individualistic societies inAependence and control.”is In addition, they found that high levels of prompted more cooperation, such as developing alliances to share risk’
l-onE-term/Short-teIm Orientation Later research in 23 countries, using a Survey by Bond and colleagues called the chinese value survey, led Hofstede to develop a sion called the conlucian work dynamism, which he labeled a long-tel’m/shorl-term He detined long-term orientation as “the extent to which a culture accept delayed gratifrcation of their material, social, and emotional needs'”19 *unug”t, in moit Asian countries ate more future-oriented and so stride toward Chapter 3 ‘ Understanding the Role of Culture 103
profits. Those coun-
value on short-termtheyvalueinvestmentinthefutureandarepreparedtosacril’rceshort-term United States place a higher
results and profitability, and evaluate their Trarnpenaars”s Value Dimensians
FonsTrompenaarsalsoresearchedvaluedimensions;hisworkwasspreadoveraten-year 47 nationa’l cultures’ some of those
dimensions, such as inai”iJ”urr*, people’s attituie outer-
directedness, are simitar to those discussed so are not
presentedhere;other,”l””t”.lfindingst.o*r,o-p”naars’sresearchthataffectdailybusiness of some of the countries along those
dimensions, in uppro”irnu,?il1″1ijo,6;;.idir’*” a range from personal to-*o”i”tut, basecl on each interesting patterns emerge’zl
one can see that the same countries tend to with the
exception of the emotional orientation’
Looking at rro*f”nuur*,s dimension of universalism rhe universaiisrtc apprPo”Jii’;;il;;;’uno wt”*t objectively’ individual circumstances, whereas the parricularistic Spain, for “”u*pt”-!”u,r’irr”-ii.rr Trompenaars rouna, rur'”^u*fr”, thut p”opl” in pass
on insider information to a friend thun ihoo in universalistic ‘ r’-r:- Porliculoristic ‘s'”Universolistic ” .. -.,..- ,. +-;,******X ._i_ i =, . US GER SWE UK ITA IRA JPN *Not to smle-indicoles relotive mognitude’
Source:Data based on F Trompenaars’ 1993′
Intheneutralversusaffectivedimension,thefocusisonthe.emotionai”ll”’11’^:T: tbr example, would openly express emotlons
even in a business ,ltuat”i’*, *rrereas the British unp.of”rtional; they, in turn would be regarded ,;High
. Hioh
Obligolion* low
Emotionol Orienlrot’ron in Relctionshipsi Low
‘ , Neutrol A$eciive ‘ ‘Pi., ii.f:e
tA JPN UK OTN SWE UK FRA SPA ITA *Nol to scole-indiccl* retolive mognilude’
Source: Data based on F Trompenaars’ 1993′
As far as involvement in relationships goes, people (orsomewherealongthatdirnension).Managersinspecific-orientedcultures-theUnited *o’k un’l p””onul issues and relationships;
rhey compartmentalize their work andprivate lives, diffuse-oriented cultures-Sweden, China-work spills vice versa. 1O4 ParL 2 ‘ The Cultural Context of Globai Man:rgetnent
,, High Privocy in RelctionshiPs* DiffuseSpeci{ic
A *Nol to scole*indicoles relqlive mognilude’
Source: Data based on F. Trompenaars, ‘i993’
In tire achievement versus ascription dimension, the question that arises is “What is the
source ofpower and status in society?” ln an achievement society, the source ofstatus and ence is based on individual achievement-how well one performs the cation and experience one has to offer. Therefore, women, rninorities, and young have equal opportunity to attain position based on theil achievements. In an ascription-oriented
society, peopl; ascribe status on the basis of class, age, gencler, and so onl one is more be boin into a position of influence. Hiring in Indonesia, for example, is more likely to on who you are than is the case in Gennany or Australia’
l-lrgh
Personsl
Source of Power ond Slofus Society
*Nol lo scole-indicoles relotive mognilude’
Source: Data based on F. Trompenaars’ 1993′
It is clear, then, that a lot of what goes on at work can be explained by differences people’s innate value systems, as described by Hofstede’ Trompenaars’ and the feseal.chers. Awareness of suctr differences and how they influence work uselul to you as a future international manager’
erEtiea! Sp*ratione! \JaEale Eiffsremces
After studying various tesearch results about cultural variables, it helps to identify culturally based variables that cause fiequent problems for Americans in international gement. i*portun, variables are those involving conflicting orientations toward time’ materiai factors, ancl individualism. We try to understand these operational because they strongly influence a person’s attitudes and probable response T!nre Americans often experience much conflict and frustration because of differences ihe concept of time around the world-that is, difterences in temporal values’ time is a valuable and limited resource; it is to be saved, scheduled, and we waste it. The clock is always running-time is money’ Therefore, deadlines hal,e to be met. When others aie not on time for meetings, Americans may meetings digress from their purpose, Americans tend to become impatient’ toward time are found in Westem Europe and elsewhere’
In many parts of the world, however, people view time from different and spectives, often based on religious beliefs (suctr a* reincarnation, death), on a belief in destiny,lr on pervasive social attitudes. In Latin comrnon attitude toward time is ttaiiana, a word that literally means Arnerican pet’son using this word, however, usually means an indefinite Similarly, the word bgkra inAlabic can mean “tomorrow” or “some time Americans usually regard a deadline as a firm commitment, Arabs often imposed on them as an insult. They feel that important things take a cannot be rushed. him an important task or that he wouid not treat that task with respect. International have to be caret’ul not to offend people-or iose contracts or empioyee they rnisunderstand the local language of time’
A, ,fu A&AA t& A&A&A AA” A. A ,lr Chapter 3 n Understancling the Role ol Cuiture 105
ehange Based largely on long-standing religious beliefs, values regarding the acceptance
of change and the pace of:”hange can vary immensely among cultures’ Western people believelhat an individual can exert some control over the future and can manipulate events,
particularly in a business context-that is, individuals feel they have some internal control’ *uny non-W”stern societies, however, control is considered external; people generally believe destiny or the will of their God, and therefore adopt a passive attitude or even teel hostility
toward those introducing the “evil” of change. In societies that place great importance on tradi-
tion (sucli as Japan), one small area of change rnay threaten an entire way of lif’e’ However, the
younger generations are becoming more exposed to change through globalization, technology,
and meOia exposure, International firms are agents of change throughout the world’ Some
changes are more popular than others; for example, McDonald’s hamburgers are apparently one
change the Japanese are willing to accept.
Material Faetors In large par1, Americans consume resources at a far greater rate than most
of the rest of the world. Their attitude toward nature-thal it is there to be used for their benefit-
differs from the attitudes of Indians and Koreans, for exampie, whose worship of nature is part of
their religious beliefs. Whereas Americans often value physical goods and status symbols, many
non-Westerners find these things unimportant; they value the aesthetic and the spiritual realm. Such
dift’erences in attitude have implications for management functions, such as motivation and reward
systems, because the proverbial can’ot must be appropriate to the employee’s value system’
lndividualism In general, Americans tend to work and conduct their private lives indepen-
dently, valuing individual achievement, accomplishments, promotions, and wealth above any
group goals. In many other countries, individualism is not valued (as discussed previously in the
context of Hofttede’s work). In China, for example, much more of a “we” consciousness prevails,
and the group is the basic building block of social life and work. For the Chinese, conformity and
,oop”1uiion take pleceden”” ou”i individual achievement, and the emphasis is on the strength of
the iamily or community-the predominant attitude being, “We all rise or fall together.”
International *unig*rt often face conflicts in the workplace as a result of differences in these
four basic values of time, change, matedalism, and individualism. If these operational value differences
and their likely consequences are anticipated, managers can adjust expectations, communications,
work organization, schedules, incentive systems, and so forth to provide for more constructive out-
comes for the company and its employees. Some of these operational differences ale shown in
Exhibit 3-5, using Japan and Mexico as exarnples. Note in particular the factors of time, EXHIS;T 3.5 Fundamental Differences Between Japanese and Mexican Culture that Affeqt Business Organizations22
::
i-i t {, Dimension Japanese Culture Mexican Culture
Hierarchical nature Rigid in rank and most communication; Rigid in all aspects Individualism vs. collectivism Highly collective culture; loyalty to Collective relative to family group; Attitudes torvard work Work is sacred duty; acquiring skills, Work is means to support self Time orientation Balanced perspective; future oriented; Present oriented; time is imprecise; desirable objectives
Approach to problem solving Holistic, reliance on intuition, pragmatic, Reliance on intuition and Fatalism Fatalism leads to preparation Fatalism makes planning, disciplined View of human nature Intrinsically good Mixture of good and evil Chapter 4 . Conrmunicating Across Cultures 135
n :li–
./i :; ij,
*HFllBlT 4-3 Forms of Nonverbal Communication
. Facial expressions
. Body posture
. Gestures with hands, afins, head, etc.
. Interpersonal disiance (proxemics)
. Touching, body contact {crntext
East Asi1ns live in rclatively complex social netv,ot’ks tvith prescribed role relaliorts;
attention to context is, therefore, intportant fot’ their effective ftutctionitg. In con’ .'”#::;”);ffi;’l;
A major differentiating factor that is a primary cause of noise in the communication The context in which the communication takes place aff’ects the meaning and interpretation of
the interaction. Cultures are known to be high- or low-context cultures, with a relative range in
between.4l In high-context cultures (Asia, the Middle East, Africa, and the Meditenanean),
feelings and thoughts are not explicitly expressed; instead, one has to read between the lines
and interpret rneaning fiom one’s ggneral understanding. Two such high-context cultures are
those of South Korea and Arab cultures. In such cultures, key information is embedded in the
context rather than rnade explicit. People make assumptions about what the message means
through their knowledge of the person or the surroundings. In these cultures, most communica-
tion takes place within a context of extensive information networks resulting fiorn close Asian communication style. where personal and business relationships are rlore compartmentalized, communication to view events as the result of specific agents, while easterners view events in a broader and
ion g”, -,”r,n c,’,nt”*t.41 standing may preciude reaching a soiution, and conflict may arise. Germans, for example, will
expect considerable detailed information before rnaking a business decision, whereas Arabs
will base their decisions more on knowledge of the people involved-the information is this today.” People in high-context cultures, such as in Asia, and, to a lesser extent, in England,
convey their thoughts in a more indirect, implicit mannerl this means that solneone from
Germany needs to have more patience and tact and be wiliing to listen for clues-verbal and People in high-context cultures expect others to understand unafiiculated moods, subtle :,t
ral ,;,’
i].l :1,
‘ll
L’i
jii !. I,i ..fJ
l,ti High Jopon
x c 1l li $ ji ‘1;
‘,1
:1 :il ii|:t li: Chaprer 4 ‘ Communicating Across Cultures 137
EKHlglT 4-4 Cultural Context and lts Eftects on Communicationa5
(high context/ i mplicitl
Middle Eost
Lolin Americo
Africo
Medilerroneon
Englond
Frsnce
North Americo
Scsndinovio
Germony
Low (l ow co nt exl / expli cil )
Explicitness of communico*ion
Switzerlond
HighLow
perceive those tiom low-context cultures as too talkative, too obvious, and redundant. Those
from low-context cultures perceive high-context people as nondisclosing’ sneaky, and mysteri-
ous. Research indicates, for example, that Americans find talkative people more attractive,
whereas Koreans, high-context people, perceive less verbal people as more att!’active. Finding
the right balance between low- and high-context communications can be tricky. as Hall and Hall
pointlut: “Too much infbrmation leads people to feel thef are being talked down to; too little
intbrmation can mystify them or make them feel lett out:’44 Exhibit 4-4 shows the relative level
of context in various countries. interpretation is illustrated in the Comparative Management in Focus: Communicating with Arabs.
COMPARATIVE MANAGEMENT IN FOCUS
Communicating with Arabs
In rhe Mjddle East, the meaning of a communication is irnplicit and interwoven, and consequently much
harder for Americans, accustomed to explicit and specific meanings, to understand.
Arabs are warm, emotiollal, and quick to explode: “soun language conrains the means for overexpression, many adjectives, words that allow for exaggeration,
und *.tupho.s to emphasize a position, What is said is often not as impo(tant as /eorr it is said. used for dramatic effect. Family, friends, and connections are very important on all levels in the Middle East and will take pre-
ceclence over business ftansactions. Arabs do business with people’ not companies, and they make
commitments to people, not contracts. A phone call to the right person can help to get al’ound seemingly
insurmountable obstacles. An Arab expects loyalty from friends, and it is understood that giving and
receiving tavors is an inherent part ofthe relationship; no one_says no to a request t’or a favor’ A lack ol
follow-through is assumed to be beyond the friend’s control.46 by declining refreshment or rushing into business discussions. Part of that hospitality is the elaborate
syste* of gieetings and the long period of getting acquainted, perhaps taking up the entire first meeting.
While the handshake may seem iimp, the rest of the greeting is not. Kissing on the cheeks is common
among men, as is hand-holding between male friends, However, any public display of intimacy betweeu
men and women is strictly forbidden by the Arab social code’
Women piay little or no roie in business or ente(ainment; ihe Middle East is a male-doniinated
society, and it ii impolite to inquire about women. Other nonverbal taboos include showing the soles of 138 Part2 ” The Cultural Context of Global Management
Westerner Meeting with Arab Businessmen.
Sou rce: Getty lmages/Digital Vision
The Arab society also values honor. Hanis and Moran explain: ‘Flonor, social prestige, and a In their nonverbai communication, most Arab countries are high-contact cultures. Arabs stand The Muslim expression Bukra insha Allah-“‘fomorrow if Allrih wills”—-explains much about In verbal interactions, managers must be aware of dilferent patterns of Arab thought ancl Exhibit 4-5 illustrates some of the sources of noise that are likely to interfere in the communi- For people doing business in the Middle East, the follorving are some useful guidelines for ‘ Be patient. Recognize the Arab attitude toward time and hospitaiity-take time to develop friend- . Recognize that people and relationships matter more to Arabs than the job, company, or ‘ Avoid expressing doubts dr criticism when others are present-recognize the irnportance of ‘ Adapt to the norms of body language, flowery speech, and circuitous verbal patterns in the . Expect many intemtptions in meetings, delays in schedules, and changes in plans.5z t r#q
iiu
:,S”:
3,
:i ‘$ jtli fi r *’ _– — , Culiurolvolues,expecllionsj:rm:J+/- i distonce/cold _.-.._-_.* —,.*- – – ond lrme/logrc;, directness: {riendship ond loyolty not
Chaprer 4 ‘ Communicating Across Cultures 139
EXFtlSlT 4-5 MisCOmmunication Between Americans and Arabs caused by cross-cultural Noise
Coniexl
,t 1\I *\ I Ti::f,i#v -‘ -.- *=”*-* {,iunffi;,n,i,ld:lt noi messose cui orr
; impolience; uttoUtltt’# I. ,t”l..ttr.”t , Sender — Encoding .–., Medium/messoge _- Decoding –* ARAB Encoding -‘- Sender
l+* Polychronic
, messese nonverbol Ilo*ery/llowerV time system; i lmpotience; i:l;tl”X*ffi ; irusholion; evJnt “if t honot misunderstood
I Ccrnmunicatiein ehannels
In addition to the variables related Io the sender and receiver of a message, the channel itself and the context of the message must be taken into consideration’ ables include fast or slow messages and intbrmation flows, as well as different lnformation systems Communication in organizations varies according to where and it originates, the chinnels, and the speed at whichit flows, whether tl ts tbrmal or rnformai’ so forth. The type of organizational structure, the staffing policies, and the leadership aff’ect the nature of an organization’s information system’
As an international*manager, it is useful to know where and how infonnation originates and
the speed at which it flows, both internally and extemally. In centralized organizational in south Amedca, most information origtnates from top managers. workers take less ro keep managers informed than in a typical company in the United States, where delegation in information flowing from the staff to the managers. In a decision-making system in people are involved, such as the ringi system of consensus decision making in Japan, the expatriate
needs to understand that {here is a systematic pattem for information flow.
Context also affects infbrmation flow. In high-context cultures (such as in the Middle
East), information spreads rapidly and freely because of the constant close contact implicit ties among people andorganizations. Information flow is often informal. In cuiiures (such as Germany or the United States), information is controlled and focused, it does not flow so tieeiy.53 Compartmentalized roles and office layouts stifle information
channels; information sources tend to be more formal’
It is crucial for an expatriate managel to find out how to tap into a firm’s infonnal sources
of information. In Japan, employees uruully have a drink together on the way honre and this becomes an essential source of information. However, such communication are based on long-terrr relationships in Japan (and in other high-context cultures)’ information may not be readily available to “outsiders.” A considerable barrier in Japan separates
strangers from familiar liiends, a situation that discourages communication’
firms in
on Hofstede’s
f’rom societies that are
as compared to
cultures view co-
place a high value on
uncertainty avoidance
developed
fifth dimen-
dimension’
program^s its members to
In other words’
long-term goals;
tries such as Great nrltuin, Canuda’ and the
employees accordingly’
period, with 15,000 -u*g”r, i.o* 2g countries representing
toward time’ and relative inner-versus
elsewhere in this chapter and others’ and
activities are explained next, along *,tr,, *'” ptacement
view the placement of these countries along
dimension, ‘o*”
be at similar positions on all dimensions’
versus particularism, we find that
without consideration for
approach-more common in Asia and in
ouligation on i”lutionrhips and is more subjective’
particularistic societies are more likely to
societies’
– “. f – “” -? i- ^*
SPA CHI
relationships. rr,” rturiun,, r,a”*i,un,, and Chinese,
and Japanese would consider such displays
as “hatd to ‘read””
r. *rlffj,[,*i]{r*srsr4*$#.Be}ss*!$i$*i*e.+’ar}:riiar$.5*:!*.*fi:;:ia+.sw*’A{r,*dt!ff#ry
-“”T**”-I’*;*.. a A a a Ai;r’
CHI
tend to be either specific 9″ lijf.”t:
States, United Kingdom, France-separate
and they are more open and direct’ In
over into personal relationships and
Low
SWE
influ-
job and what level of edu-
people usually
likely to
be based
– Low
in
GLOBE
behavior can be vefy
some specific
mana-
change’
value differences
to work situations’
in
To Americans’
spent with precision, lest
and schedules
feel insulted; when
Similar attitudes
longer per-
in which time does not end at
America’ tbr example’ a
“tomorrow”‘ A Latin
titne in the nezu future’
in the future'” While
regard a deadline
long time and therefore
‘lb ask an Arab to rush something, then, is to imply that you have not given
managers
cooperation-because
ITA JPN
UK US FRA GER
SPA CHI
US UK SWE GER FRA
ITA SPA
JPN CHI
generally
In
in
individualism, change (fatalism), and materialism (attitudes toward work) exprcssed in the exhibit.
‘l:’
*
E
tg
,ri#l
g!
,#
‘*
)E
‘,t
blurred in authority and responsibility
work group dominates; group harmony don’t transfer loyalty to work group;
very important individualistic outside family
workirg hard, thriftiness, patience, and family; leisure more important
and perseverance are vir.tues than work
monochronic in dealings with outside world time commitments become
consensus important emotion, individual approach
rclutine unnatural
J
,Lil
:
,:,|:
‘ Eye contact
. Clothing, cosmetics, hairstyles, jewelry
. Paralanguage (voice pitch and inflections, rate of speech, and silence)
. Color syrnbolism
. Attitude toward time and the use of time in business and social interactions
. Food symbolism and social use of meals
trctst, vtesterrters live in less constraining social worlds that strcss irtclependence and
allorv tlzem to pay le’ts attentiott to coiltext.
plocess is that of context-which actually incorporates many of the variables cliscussed eariier.
personal relationships. See the fbllowing Management Focus for further explanation of the
In low-context cultures (Germany, Switzerlancl, Scandinavia, and North America),
media have to be more explicit. Feeiings and thoughts are expressed in words, and infor-
mation is more readily avaiiable. Westerners focus more on the individual, and therefore tend
In cross-cultural communication between high- and iow-context peopie, a lack of under-
present, but it is implicit. People in low-context cultures, such as those in Germany,
Switzerland Austria, and the United States, convey their thoughts and pians in a direct,
straightforward communication style, saying something iike “we have to make a decision on
nonverbal-as to their colleagues’ wishes.
gestures, and environmental clues that people fiom iow-context cultures simply do not process.
Misinterpretation and misunderstanding often result.43 People li’om high-context cultures
ra
,i.
:iL:i
,i:
}
;t*
S:,
a)
oI
5′
!’i
I
i;,1
*:
::i
.,$i
,1i
it
F]
!a.
The importance of undel’standing the role of context and nonverbal language to avoid mis-
Eloquence anci flowery speech are aclmired for their own sake, regardless of the content. Loud speech is
At the core of Middle Eastern culture are friendship, honor, religion, and traditional hospitaiity’
Because hospitality is a way of life and highly symtrolic, a visitor lnust be careful not to reject it
on.’, L*t and using the lell (unclean) hand to eal or pass something. In discussions, slouching in a seat
or leaning against a wall communicates a lack of respect.
secure place in society are brought about when conformity is achieved. When one fails to conform, this is
considered to be damning and leads to a degree of shame.”a7 Sharne results not just from doing something
wrong but from having others find out about that wrongdoing. Establishing a climate of honesty and trust
is part of the sense of honor. Therefbre, considerable tact is needed to avoid conveying any concern or
doubt. Arabs tend to be quite introverted until a mutual trust is built, which takes a long time.as
and sit closer and touch people of the same sex more than Westerners. They do not have the same con-
cept of “public” and “private” space, or as Hall puts it. “Not only is the sheer noise level much higher.
but the piercing look of the eyes, the touch of the hands, and the mutual bathing in the warm moist
breath during conversation represent stepped-up sensory inputs to a level which many Europeans find
unbearably intense. On the other hand, the distance prefened by North Americans may leave an Arab
suspicious of intentions because of the lack of olfactory contact.”49
the Arab culture and its approach to business transactions. A cultural ctash typically occurs when an
American kies to give an Arab a deadline. “I am going to Damascus romoruow morning and will have tcr
have my car tonight,” is a sure way to get the mechanic to stop work;’explains Hall, “because to give
another person a deadiine in this part of the wodd is to be rude, pushy, and demanding.”s0 In such
instances, the attitude toward time communicates as loudly as words.
communication. Compared to the direct, linear fashion of Anterican communication, Arabs tend to
meander: They start with social talk, discuss business for a while, loop round to social and generai
issues, then back to business, and so on.5l American impatience and insistence on sticking to the subject
will “cut off their loops,” triggering confusion and dysfunction. Instead, westerners should accept that
there will be considerable time spent on “small talk” and sociaiizing, with tiequent intem:ptions, before
getting down to business.
cation process tletween Americans and Arabs.
effective communication:
ship and trust, for these are prerequisites for any social or business transactions.
contract-conduct business personally, not by correspondence or telephone.
honor and dignity to Arabs.
Middle East, and don’t be impatient to “get ro the point.”
s:
‘$!
t1
,{
:’.i
4
F.
:+
‘{t
; Physicol Dissononce in loVhigh contoct nntglY::,1-LAtt
, distonce,/cold ond time,/logic; *-> ottended; lntenoect
Dispbf Rubs
*–
NOtSE *-.,
“””‘*”-***
i1 lime system ti+
Receiver
; AMERICAN
1 Receiver <-- Decoding --- Feedbock medium----
1 Mlrrndurstood.*——— verbol’/<--*-.*. Demonstrqtive <-^*--*-
, A incongruence; and indire* longuoge; hospitolity;
closeconioct open meetins
Alloh wills” dissononce
I
I
I
I
i
i
I
I
I
I
i
i
I
I
I
the variables linked to
These vari-
types of media’
how
and
style will
structutes, as
responsibility
results
which many
and the
low-context
and thus
from work’
networks
The same
