CULTURE IN A GLOBAL CONTEXT Dr. Rayna Dimitrova 19 October 2009 CULTURE IN A GLOBAL CONTEXT Dr. Rayna Dimitrova 19 October 2009

Culture Understanding the concept Understanding the concept Multi-faceted nature Multi-faceted nature Over 164 definitions, lack of overriding one Over 164 definitions, lack of overriding one Understanding culture has become an area of academic study in its own right Understanding culture has become an area of academic study in its own right

Exploring culture Difficult since not all members of the society share the same values Difficult since not all members of the society share the same values Risk of stereotyping Risk of stereotyping There is propensity for people to have multiple of overlapping identities, which are constantly changing There is propensity for people to have multiple of overlapping identities, which are constantly changing

Macro level perspective Political/economic system Political/economic system Religion/philosophical beliefs Religion/philosophical beliefs Economic prosperity Economic prosperity Language (Belgium vs. Switzerland) Language (Belgium vs. Switzerland) Educational system Educational system Values/shared meanings Values/shared meanings

Cultural aspects Attitudes, beliefs, values, rituals, Attitudes, beliefs, values, rituals, taken for granted assumptions Behaviour Behaviour Shared meaning and understanding Shared meaning and understanding

Hofstede’s classic quote “collective programming of mind that distinguishes the members of one group or category of people from another.” “collective programming of mind that distinguishes the members of one group or category of people from another.”

Hofstede’s work Genesis in 1960, two major surveys on cross-cultural differences in IBM in 64 countries Genesis in 1960, two major surveys on cross-cultural differences in IBM in 64 countries Further developed in 1980 Further developed in 1980 Continues to publish in 21 century Continues to publish in 21 century With five dimensions seeks to conceptualize differences between cultures With five dimensions seeks to conceptualize differences between cultures

Hofstede model of Cultural Dimensions Power distance Power distance Individualism Individualism Masculinity Masculinity Uncertainty avoidance Uncertainty avoidance Long term orientation Long term orientation

Power distance (PDI) The degree of inequality that members of a culture expect and accept The degree of inequality that members of a culture expect and accept Importance of status, hierarchy Importance of status, hierarchy Suggests level of inequality is endorsed by followers as much as by leaders Suggests level of inequality is endorsed by followers as much as by leaders Arab countries – high Arab countries – high Austria, Israel – very low

Individualism/collectivism (IDV) The extent to which people in a culture act as individuals and stress their own interests The extent to which people in a culture act as individuals and stress their own interests Latin countries rank among most collectivistic Latin countries rank among most collectivistic Western, such as US, UK, Australia most individualistic Western, such as US, UK, Australia most individualistic Individualism is correlated w/ national wealth Individualism is correlated w/ national wealth

Masculinity/femininity (MAS) Refers to values placed on traditional male or female values Refers to values placed on traditional male or female values Masculine cultures: competitiveness, assertiveness, ambition, accumulation of wealth Masculine cultures: competitiveness, assertiveness, ambition, accumulation of wealth Feminine cultures: relationship and quality of life Feminine cultures: relationship and quality of life Japan, Slovakia vs. Sweden, Norway Japan, Slovakia vs. Sweden, Norway

Uncertainty avoidance (UAI) The extent to which members welcome uncertainty and change as opposed to desiring structured situations The extent to which members welcome uncertainty and change as opposed to desiring structured situations High: One could expect preponderance of unambiguous rules, policies and regulations in work organizations High: One could expect preponderance of unambiguous rules, policies and regulations in work organizations Japan vs. Singapore Japan vs. Singapore Germany scores 65 Germany scores 65

Long term orientation (LTO) * Describes society’s time horizon Describes society’s time horizon Importance attached to the future vs. past and present Importance attached to the future vs. past and present LT values: thrift, perseverance LT values: thrift, perseverance ST: respect for tradition, fulfilling social obligations ST: respect for tradition, fulfilling social obligations China vs. US, African countries China vs. US, African countries

Synthetic cultures….. Are the ten “pure” cultural types derived from the extremes of the five dimensions Are the ten “pure” cultural types derived from the extremes of the five dimensions

Country ratings CountryPDIIDVMASUAILTO China Japan Brazil India US

Organizational vs. national culture National cultures distinguish similar people, institutions/organizations in different countries. National cultures distinguish similar people, institutions/organizations in different countries. Organizational cultures, distinguish different organizations within the same country. Organizational cultures, distinguish different organizations within the same country. Managing international business means handling both national and organization culture differences at the same time. Managing international business means handling both national and organization culture differences at the same time. Corporate never trumps national ! Corporate never trumps national !

Surviving in multicultural world One does not need to think, feel, and act in the same way in order to agree on practical issues and cooperate One does not need to think, feel, and act in the same way in order to agree on practical issues and cooperate Agree to be different Agree to be different Diversity should be seen less as part of HR and more as something owned by the business Diversity should be seen less as part of HR and more as something owned by the business

Managing intercultural communication Guidance on work processes and procedures Guidance on work processes and procedures Recognize different types of contributions Recognize different types of contributions Observe the communication of international staff Observe the communication of international staff Watch out for relational conflicts Watch out for relational conflicts(hierarchy)

Managing intercultural communication (continued) Ensure clarity of language Ensure clarity of language Choose the most appropriate communication channels Choose the most appropriate communication channels Recognize and deal with problems promptly Recognize and deal with problems promptly Offer cross-cultural integrating sessions Offer cross-cultural integrating sessions

Case study: IATA International Air Transport Association International Air Transport Association Represents 230 airlines, employs 1,600 staff of 140 nationalities in 74 countries Represents 230 airlines, employs 1,600 staff of 140 nationalities in 74 countries HQs in Geneva and Montreal HQs in Geneva and Montreal Fast growing markets India, China Fast growing markets India, China “We cannot sell in Mumbai with a Montreal mindset” “We cannot sell in Mumbai with a Montreal mindset”

IATA’s cross-cultural program 1. Identify the cultures that need to collaborate 2. Identify leaders in each culture 3. Identify pairs of co-leaders 4. Identify real projects 5. Identify realistic timeframe 6. Share practices 7. Adapt for the next challenge

Case study: call center in India 2600 employees in India provide call center and home office support for Norwich Union, Aviva’s UK insurance business 2600 employees in India provide call center and home office support for Norwich Union, Aviva’s UK insurance business

Seven failings of useless leaders 1. Kill enthusiasm 2. Kill emiotion 3. Kill explanation 4. Kill engagement 5. Kill reward 6. Kill culture 7. Kill trust

Thank you! Let’s see the movie now! Let’s see the movie now!