1. Cross-cultural management in Europe
An International and comparative perspective
October 2002
Joop Vinke

2. Comparative Methods Social setting Business systems History
Culture
Institutions
Business systems
Organisation structure
Corporate governance
Decision making ethos
October IBS Arnhem
Joop Vinke

3. Convergence versus Divergence
Similarities
Differences
DIVERSITY
Develop models
Learn “best way”
Understand ‘transferability”
Secure national competitive advantage
October IBS Arnhem
Joop Vinke

4. What can be compared? Industrial relations systems Employment system
(employers, unions, legislation)
Employment system
(labour markets, industrial structure,
welfare regime)
Vocational education and training
Social structure
(class, gender, race)
Culture
October IBS Arnhem
Joop Vinke

5. Theoretical approaches
Industrialism
(Kerr et al 1960)
Political Economy/ Marxist
Cultural Studies
(Hofstede/Trompenaar)
Societies industrialise to “common form”
State-labour-Capital relations
Socialisation processes
(norms and values)
Technology paradigm
Ownership and control
Institutions
(socially transmitted behaviour patterns that are historically formed)
Specialisation, coordination, bureaucracy
International Division of labour
Production paradigm (Taylorism, Fordism etc.)
October IBS Arnhem
Joop Vinke

6. CULTURE
Symbols:
Gestures, words, objects etc. of which only the group members know the meaning
Heroes:
Public figures, dead or alive, real or fictive, who serve as role models
Rituals:
Acts that, for outsiders, may seem useless but are socially essential
October IBS Arnhem
Joop Vinke

7. Norms and Values Norm: Value: What is right? / What is wrong?
What is good/ bad?
What is beautiful/ ugly?
What is natural/ artificial?
What is normal, not normal?
Etc.
October IBS Arnhem
Joop Vinke

8. Explicit culture Norms and Values Symbols Heroes Rituals
October IBS Arnhem
Joop Vinke

9. Is culture inborn or learned?
Definitions:
“The right way of doing things””
“The collective mental programming of people in an environment
“The collective preference of one decision above another one””
“Integrated system of patterns of behaviour which are acquired by all members of a society
October IBS Arnhem
Joop Vinke

10. Culture and peace of mind
Culture helps people to:
make choices
and
reduce emotional stress
When they are confronted with dilemmas:
Our relations with other people
Our relationship with time
Our relationship with our natural
environment
October IBS Arnhem
Joop Vinke

11. Relationships with big problems
How equal are the members of the society?
Which are most important; obligations to a friend or to the society?
Which value prevail; masculine or feminine?
Is it allowed to show emotions?
What is private matter?, What is public matter?
Does status depend on who one is or what one has achieved?
What is the importance of the past, the present and/or the future?
Is ones destiny controllable or not?
Etc.
October IBS Arnhem
Joop Vinke

12. Research and models Trompenaars Perlmutter (1969) “MNC practice”
Hofstede (1980) “Cultures consequences”
Kluckhohn and Stodtbeck
Traxtler (1995)
Marginson and Sisson (1996)
Hoeklin, Hall
Nagelkerke (1995)
Trompenaars
October IBS Arnhem
Joop Vinke

13. Is it possible to define “national culture”?
October IBS Arnhem
Joop Vinke

14. Using models to define “national culture”
Hofstede (1980)
PDI-power distance
the extent to which a culture accepts that power in organizations is distributed unequally
MAS-Masculinity
the value attributed to achievement, assertiveness, and material success as opposed to the
stereotypical feminine values of relationships, modesty, caring and the quality of life.
IDV-Individualism
the extent to which people are supposed to take care of themselves and be emotionally independent
UAI- Uncertainty avoidance
the degree to which members of a society are uncomfortable with risk and uncertainty
CDI -Confucian dynamism
The extend to which a society exhibits a pragmatic future-oriented perspective rather then a
conventional historic or short time point of view
October IBS Arnhem
Joop Vinke

15. The seven dimensions of culture
Trompenaar
universalism vs. particularism
individualism vs. collectivism
neutral vs. affective relationships
specific vs. diffuse relationships
achievement vs. ascription
Sequential vs synchronic culture
Internal vs External control
October IBS Arnhem
Joop Vinke

16. Universalism vs. particularism
What is more important - rules or relationships?
Universalist:
“What is good and right can be defined and always applies!“
Particularist:
Great attention to the obligations of relationships and unique circumstances
October IBS Arnhem
Joop Vinke

17. Individualism vs. collectivism
Do we function in a group or as an individual?
“It is more important to focus on individuals so that they can contribute to the collective as and if they wish”
“It is more important to consider the collective first since that is shared by many individuals”
October IBS Arnhem
Joop Vinke

18. Neutral vs. affective (emotional) relationships
“The nature of our interactions should be objective and detached”
North American and North European business relationships
“The expressing the emotions is part of the relationship and therefore acceptable”
South American and European business relationships
October IBS Arnhem
Joop Vinke

19. Specific vs. diffuse relationships
When the whole person is involved in a
business relationship there is a real
and personal contact, instead of the
specific relationship prescribed by contract.
October IBS Arnhem
Joop Vinke

20. Achievement vs. ascription
Do we have to prove ourselves to receive status or is it given to us?
Achievement:
One will be judged
on what you have
Recently
accomplishes and on
your record
Ascription:
The status is
attributed to you, by
birth, childhood,
gender or age, but
also by your
connections and your
educational record.
October IBS Arnhem
Joop Vinke

21. Sequential vs. synchronic culture
Is time a line ?
Or is it a circle?
October IBS Arnhem
Joop Vinke

22. Past, present and future
How would You draw it??
October IBS Arnhem
Joop Vinke

23. Internal vs. External control
Do we control our environment or
work with it ?
Major focus affecting their lives and the origins of vice and virtue as residing within the person (part of the nature)
World is more powerful than individuals. Nature is to be feared or emulated.
October IBS Arnhem
Joop Vinke

24. Be effective in doing business and managing with different culture
Global Literacy
Be effective in doing business and managing with different culture
This applies equally to:
those working where there is diversity in the work force
those travelling and working in different cultures
those receiving business visitors from other cultures
October IBS Arnhem
Joop Vinke

25. Don’t………..!
Change your behaviours to try to emulate the culture(s) you are working with. or
Simply 'Do in Rome as Romans do... etc.
October IBS Arnhem
Joop Vinke

26. Try …………Reconciliation
In dealing with different cultures, you
have several options:
• Ignoring other culture
• Abandon your standpoint
• Compromise or…………
Reconciliation:
October IBS Arnhem
Joop Vinke

27. Central guidelines with local adaptations and discretion
Universalism
…We do not want to drown in chaos or lose our sense of central directions so we must…
…Apply rules and procedures universally to ensure equity and consistency although……
..Encourage flexibility by adapting to particular situations. However......
…We do not want to degenerate into rigidity and bureaucracy so we must………
Particularism
Central guidelines with local adaptations and discretion
October IBS Arnhem
Joop Vinke

28. MAS VERSUS UAI
October IBS Arnhem
Joop Vinke

29. PDI VERSUS UAI
October IBS Arnhem
Joop Vinke

30. A model for the Diversity of European regimes
Rheinic
Germany, Austria, Netherlands,Scandinavia, France
Anglo-Saxon
UK, Ireland
Latin Rim
Greece, Spain Southern Italy, Portugal
October IBS Arnhem
Joop Vinke

31. Social partnership in various forms
The “Rheinic Model”
Social partnership in various forms
Germany, Austria, Netherlands, Scandinavia, France
Juridified industrial relations
Work councils
Emphasis on social cohesion and social market
Welfare as “first resort”
Corporatist tradition
October IBS Arnhem
Joop Vinke

32. The “Anglo-Saxon model”
Free market
UK, Ireland
Voluntarist, adversarial industrial relations
Welfare as “last resort”
October IBS Arnhem
Joop Vinke

33. Greece, Spain Southern Italy, Portugal
The “Latin Rim model”
Greece, Spain Southern Italy, Portugal
Conflictual, antagonistic industrial relations
Mixed labour market
Rudimentary welfare (church, family support)
October IBS Arnhem
Joop Vinke

34. More information?? Try : www.7d-culture.nl
“Culture's Consequences : Comparing Values, Behaviours, Institutions, and Organizations Across Nations”n
“Cultures and Organizations”
By Geert Hofstede
“Riding The Waves of Culture: Understanding Diversity in Global Business”
“The Seven Cultures of Capitalism”
“21 Leaders for The 21st Century”
“Building Cross-Cultural Competence: How to Create Wealth from Conflicting Values “
By Fons Trompenaars
Try :
October IBS Arnhem
Joop Vinke