1. 1 Recognizing and Managing Cultural Patterns Stuart A. Umpleby The George Washington University Washington, DC

2. 2 Stuart A. Umpleby Speakers' Bio Dr. Stuart A. Umpleby is a professor in the Department of Management and Director of the Research Program in Social and Organizational Learning in the School of Business at The George Washington University, in Washington, DC. He is a past president of the American Society for Cybernetics, and Associate Editor of the journal Cybernetics and Systems.

3. 3 Origins of cultural differences Organizational structure Organizational structure National, ethnic, or religious cultural differences National, ethnic, or religious cultural differences A combination A combination

4. 4 Task oriented Person oriented Incubator Fulfillment-oriented culture Guided missile Project-oriented culture Eiffel Tower Role-oriented culture Family Person-oriented culture Egalitarian Corporate cultures Hierarchical

5. 5 Family culture Person-oriented Person-oriented Close face-to-face relationships but also hierarchical Close face-to-face relationships but also hierarchical The “parent” has authority over “children” The “parent” has authority over “children” A power-oriented corporate culture A power-oriented corporate culture High context High context Diffuse relationships Diffuse relationships

6. 6 Incubator culture Fulfillment-oriented Fulfillment-oriented Free individuals from routine Free individuals from routine Both personal and egalitarian Both personal and egalitarian Very little structure Very little structure Emotional commitment to a creative process Emotional commitment to a creative process Leadership position is achieved Leadership position is achieved

7. 7 Eiffel Tower culture Role-oriented Role-oriented Bureaucratic division of labor Bureaucratic division of labor Coordination by higher levels Coordination by higher levels Specific rather than diffuse relationships Specific rather than diffuse relationships Status is ascribed Status is ascribed Qualifications are important Qualifications are important

8. 8 Guided missile culture Project-oriented, task-oriented Project-oriented, task-oriented Egalitarian but impersonal Egalitarian but impersonal Rationale of ends Rationale of ends Neutral, not affectionate, culture Neutral, not affectionate, culture Intrinsic motivation Intrinsic motivation Individualists and specialists Individualists and specialists

9. 9 Cross-Cultural Project Teams Increasing trend in application of: Increasing trend in application of: Cross-organization projectsCross-organization projects International projectsInternational projects Global organizationsGlobal organizations OutsourcingOutsourcing Multi-cultural project teamsMulti-cultural project teams Growing body of research and literature on cultural differences Growing body of research and literature on cultural differences

10. 10 Widely accepted studies G. Hofstede’s studies of IBM employees in many countries G. Hofstede’s studies of IBM employees in many countries F. Trompenaars and C. Hampden- Turner’s more recent studies of cultural differences F. Trompenaars and C. Hampden- Turner’s more recent studies of cultural differences Z. Aycan, et al.’s socio-cultural dimensions Z. Aycan, et al.’s socio-cultural dimensions

11. 11 1) Relations between people Individualism vs. communitarianism – the individual is more important than the group or the group is more important than the individual Individualism vs. communitarianism – the individual is more important than the group or the group is more important than the individual USA, Australia, UK Guatemala, Ecuador, Panama USA, Australia, UK Guatemala, Ecuador, Panama Universalism vs. particularism – a rule-oriented society (a well- developed legal system) vs. a person-oriented society Universalism vs. particularism – a rule-oriented society (a well- developed legal system) vs. a person-oriented society

12. 12 2) Motivational orientation Masculinity vs. femininity – sharply defined roles for men and women vs. similar roles Masculinity vs. femininity – sharply defined roles for men and women vs. similar roles Japan, Austria, Germany Sweden, Norway, Netherlands Japan, Austria, Germany Sweden, Norway, Netherlands Uncertainty avoidance – seeking to avoid uncertainty vs. tolerating high uncertainty Uncertainty avoidance – seeking to avoid uncertainty vs. tolerating high uncertainty Power distance – people feel comfortable with large differences in power among people or they prefer equality Power distance – people feel comfortable with large differences in power among people or they prefer equality Malaysia, Mexico Austria, Denmark Malaysia, Mexico Austria, Denmark

13. 13 3) Attitudes toward time Long-term vs. short term orientation – patient about results or not Long-term vs. short term orientation – patient about results or not China, Japan, South Korea Western countries, Nigeria, Pakistan China, Japan, South Korea Western countries, Nigeria, Pakistan Sequential vs. synchronic – prefer to do tasks one at a time or comfortable doing several things at once Sequential vs. synchronic – prefer to do tasks one at a time or comfortable doing several things at once Inner vs. outer time – preference for working on one’s own schedule or comfortable working on group’s schedule Inner vs. outer time – preference for working on one’s own schedule or comfortable working on group’s schedule

14. 14 4) Control Internal control vs. External control Internal control vs. External control The culture’s belief that it controls its environment or works with itThe culture’s belief that it controls its environment or works with it Implications for (newly) democratic systemsImplications for (newly) democratic systems

15. 15 5) Socio-cultural dimensions Paternalism – superiors provide guidance, protection, and nurturing while subordinates are loyal and deferential Paternalism – superiors provide guidance, protection, and nurturing while subordinates are loyal and deferential Fatalism – the belief that it is not possible to control the outcomes of one’s actions, so hard work and long- term plans are not worthwhile Fatalism – the belief that it is not possible to control the outcomes of one’s actions, so hard work and long- term plans are not worthwhile

16. 16 Western vs. Non-Western Values Individualism Individualism Winning Winning Respect for results Respect for results Specific/ linear Specific/ linear Verbal Verbal Achievement Achievement Internal self-control Internal self-control Pride Pride Collectivism/ group Collectivism/ group Harmony Harmony Respect for status Respect for status Holistic Holistic Non-verbal Non-verbal Modesty Modesty External control External control Saving face Saving face

17. 17 Western vs. Non-Western Values Equality Equality Respect competence Respect competence Time is money Time is money Action/ doing Action/ doing Systematic Systematic Tasks Tasks Informal Informal Assertiveness Assertiveness Future/ change Future/ change Control Control Hierarchy Hierarchy Respect for elders Respect for elders Time is life Time is life Being/ acceptance Being/ acceptance Humanistic Humanistic Relationship/ loyalty Relationship/ loyalty Formal Formal Indirectness Indirectness Past/ tradition Past/ tradition Fate Fate

18. 18 Year 2000 ( Y2K) project Each nation and organization set up its own year 2000 (Y2K) computer projects Each nation and organization set up its own year 2000 (Y2K) computer projects Information was widely shared among technical specialists in meetings, papers and various mediaInformation was widely shared among technical specialists in meetings, papers and various media People recognized all would benefit by sharing informationPeople recognized all would benefit by sharing information Top management supported and funded this projectTop management supported and funded this project

19. 19 Y2K results: A successful project Millions of Y2K projects completed worldwide with resounding success Millions of Y2K projects completed worldwide with resounding success Ahead of ScheduleAhead of Schedule Generally below budgetGenerally below budget With no significant failuresWith no significant failures

20. 20 Iridium project: Anywhere to anywhere communications

21. 21 Iridium project A satellite telecommunications network costing $5 billion and involving 6,000 engineers and managers in 26 countries A satellite telecommunications network costing $5 billion and involving 6,000 engineers and managers in 26 countries Used proven project management methods and promising practices Used proven project management methods and promising practices Capability Maturity Model: Capability Maturity Model: Level 3  Level 4

22. 22 Iridium project results: A failed project The international structure was almost impossible to manage – many languages, cultural differences, different styles of management and communication The international structure was almost impossible to manage – many languages, cultural differences, different styles of management and communication Cost: US$3.4B  US$5.0B Cost: US$3.4B  US$5.0B Implemented in 1998-1999 Implemented in 1998-1999 Bankrupt in 2000  Sold for US$25 million Bankrupt in 2000  Sold for US$25 million

23. 23 Cultural maturity Concern for culture of others High Low Accommodating: When in Rome… Recognition Low Concern for own culture Respect Reconciliation Forcing: My way or… High Adapted from: Trompenaars & Hampden-Turner, 2003

24. 24 Reconciliation “An approach where the two opposing views can come to fuse or blend - where the strength of one extreme is extended by considering and accommodating the other” “An approach where the two opposing views can come to fuse or blend - where the strength of one extreme is extended by considering and accommodating the other” Trompenaars & Hampden-Turner, 2003

25. 25 Conclusions There is an increasing number of international, multi-cultural projects There is an increasing number of international, multi-cultural projects Multi-cultural teams can provide experience and innovative thinking Multi-cultural teams can provide experience and innovative thinking Cultural differences can be seen as an asset Cultural differences can be seen as an asset Managers need to be culturally sensitive and use flexible leadership to promote creativity and innovation Managers need to be culturally sensitive and use flexible leadership to promote creativity and innovation

26. 26 Contact Information Prof. Stuart Umpleby Department of Management Department of Management School of Business School of Business George Washington University George Washington University Washington, DC 20052 USA Washington, DC 20052 USA www.gwu.edu/~umpleby www.gwu.edu/~umpleby umpleby@gwu.edu umpleby@gwu.edu

27. 27 Questions? Thank you very much!