1. Cross-Cultural Communication What is culture Universalism versus Particularism Individualism versus Collectivism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription Time Environment

2. The assessment for this course is out of 100 %, Answer ANY 2 questions (each carrying 50 marks) out of a choice of 5 questions. Time limit 1 Hour Exam on Tuesday 3 rd May 2005 Sample questions given on website http://onlinelectures.tripod.com/mba.htm Assessment

3. What is Culture Implicit Culture Explicit Culture

4. What is Culture? Set of beliefs, attitudes and values shared by a group of people and learnt over a period of time

5. Distribution of Cultural Traits

6. Levels of Culture National Regional / Ethnic / Religious / Linguistic Gender Generation Social Class Organisational

7. 1 - If we see a group of Japanese managers bowing, we are obviously observing explicit culture as the sheer act of bending. However, if we ask the Japanese, “Why do you bow?, a question that they may not welcome, we penetrate the next layer of culture. 2 - Some Japanese might say that they bow because they like to greet people: that is a value. Other might say that they don’t know why except that they do it because the others do it too. Then we are talking about a norm. 3 - You might observe that some Japanese bow deeper than others. Again, if you ask why they do it the answer might be that they don’t know but that the other person does it too (norm) or that they want to show respect for authority (value). A typical Dutch question that might follow is: “Why do you respect authority?” The most likely Japanese reaction would be either puzzlement or a smile (to hide their irritation). Layers of Culture

8. Titel Cultural Variables Universalism versus Particularism Individualism versus Collectivism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription

9. Universalism vs Particularism What is more important - rules or relationships? People in universalistic cultures share the belief that general rules, codes, values and standards take precedence over particular needs and claims of friends and relations. Rules apply equally to the whole "universe" of members. Any exception weakens the rule.

10. A universalist will say of particularists, “they cannot be trusted because they will always help their friends”; a particularist, conversely will say of universalists, “you cannot trust them; they would not even help a friend”. Universalism Vs Particularism

11. The Car Accident What happens to your friend?

12. What Right has Your Friend? A.My friend has a definite right as a friend to expect me to testify to the lower figure. B. He has some right as a friend to expect me to testify to the lower figure. C.He has no right as a friend to expect me to testify to the lower figure.

13. Clashing values of Entrepreneur (10,10) ? Robust and Consistent Systems Particular needs of our customers

14. Globalism and Locallism X (10,10) Global Standards (Critical Mass) “Be like US” Transnational Centers of Excellence Cultural Diversity (Differing solutions) Small Nations Multi-Localism

15. 1.focus is more on rules than relationships 2.legal contract are readily drawn up 3.a trustworthy person is the one who honors their word or contract 4.there is only one truth or reality, that which has been agreed to 5.a deal is a deal Universalism Vs Particularism 1.focus is more on relationships than on rules 2.legal contract are readily modified 3.a trustworthy person is the one who honors changing mutualities 4.there are several perspectives on reality relative to each participant 5.relationships evolve

16. Titel Cultural Variables Universalism versus Particularism Individualism versus Collectivism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription

17. Individualism In individualistic culture people place the individual before the community. Individual happiness, fulfillment, and welfare set the pace. People are expected to decide matters largely on their own and to take care primarily of themselves and their immediate family.

18. Collectivism In collectivist cultures people place the community before the individual. It is the responsibility of the individual to act in ways which serve society. By doing so, individual needs will be taken care of naturally. The quality of life for the individual is seen as directly dependent on the degree to which he takes care of his fellow man, even at the cost of individual freedom.

19. Employees from collectivist cultures who receive bonus feel guilty in front of others and try hard the next time NOT to earn a bonus. Individualism Vs Collectivism

20. 1.more frequent use of “I” form 2.decisions made on the spot by representatives 3.people ideally achieve alone and assume personal responsibility 4.vacations taken in pairs, even alone 1.more frequent use of “we” form 2.decisions referred back by delegate to organization 3.people ideally achieve in groups which assume joint responsibility 4.vacations in organized groups or with extended family Individualism Vs Collectivism

21. Titel Cultural Variables Universalism versus Particularism Individualism versus Collectivism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription

22. Affective vs Neutral In affective cultures people do not object to a display of emotions. It isn't considered necessary to hide feelings and to keep them inside. Affective cultures may interpret the less explicit signals of a neutral culture as less important. They may be ignored or even go unnoticed.

23. Neutral In a neutral culture people are taught that it is incorrect to show one's feelings overtly. They accept and are aware of feelings, but are in control of them. Neutral cultures may think the louder signals of an affective culture too excited, and over-emotional. In neutral cultures, showing too much emotion may erode your power to interest people.

24. Neutral versus Affective In my society, it is considered unprofessional to express emotions overtly. Please select your position on the statement above: a)Strongly agree b)Agree c) Be undecided d)Disagree e)Strongly disagree

25. Neutral versus Affective Percentage not expressing emotions overtly Tekst –Tekst Tekst –tekst

26. 03/ Neutral versus Affective Emotions in Control Thinking: Head in Control Feeling: Heart in Passion Analysis, Paralysis (1,10)

27. 03/ Neutral Emotions in Control (10,1) Loving Neurotic Thinking: Head in Control Feeling: Heart in Passion

28. 03/ Neutral Emotions in Control Continually checking what your heart communicates (10,10) Thinking: Head in Control Feeling: Heart in Passion

29. 1.Do not reveal what they are thinking or feeling 2.May (accidentally) reveal tension in face and posture 3.Emotions build up and explode occasionally 4.Cool and self-possessed conduct is admired 5.Physical contact, gesturing or strong facial expressions often taboo 6.Statements often read out in monotone 1.Reveal thoughts and feelings verbally and non-verbally 2.Transperancy and expressiveness release tensions 3.Emotions flow easily, vehemently without inhibition 4.Heated, animated expressions admired 5.Touching, gesturing and strong facial expressions common 6.Statements read dramatically Neutral VsAffective

30. Titel Cultural Variables Universalism versus Particularism Individualism versus Collectivism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription

31. Specific Specific cultures start with the elements, the specifics. First they analyze them separately, and then they put them back together again. In specific cultures, the whole is the sum of its parts. Each person's life is divided into many components: Interactions between people are highly purposeful and well-defined.

32. Diffuse Diffuse cultures start with the whole and see each element in perspective of the total. All elements are related to each other. These relationships are more important than each separate element; so the whole is more than just the sum of its elements. Diffuse individuals have a large private sphere and a small public one. A friend is a friend in all respects: tennis, cooking, work, etc.

33. In the case of one American company trying to win a contract with a South American customer, disregard for the importance of the relationship lost the deal. The American Company made a slick, well-thought presentation which it thought clearly demonstrated its superior product and lower price. Its Swedish competitor took a week to get to know the customer. For five days the Swedes spoke about everything except the product. On the last the product was introduced. Though somewhat less attractive and slightly higher priced, the diffuse involvement of the Swedish company got the order. The Swedish company had learned that to do business in particular countries involves more than overwhelming the customer with technical details and fancy slides. Specific Vs Diffuse

34. Specific Public Private

35. Public Specific Relationship Specific

36. Public Private Diffuse

37. Diffuse Relationship Private

38. Encounter Specific and Diffuse Public Private Danger Zone Private

39. Specificity A boss asking to paint his house The colleague argues: You don’t have to paint the house if you don’t feel like it.He is your boss in the company. Outside the company, he has little authority The subordinate argues: Despite the fact that I don’t feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either.

40. Specificity Would not paint the house Tekst –Tekst Tekst –tekst

41. 1.Direct, to the point, purposeful in relating 2.Precise, blunt, definitive and transparent 3.Principles and consistent moral stands independent of the person being addressed 1.Indirect, circuitous, seemingly “aimless” forms of relating 2.Evasive, tactful, ambiguous, even opaque 3.Highly situational morality depending upon the person and context encountered Specific VsDiffuse

42. Titel Cultural Variables Universalism versus Particularism Individualism versus Collectivism Neutral versus Affective Specific versus Diffuse Achievement versus Ascription

43. Achievement versus Ascription STATUS ? What You DoWho You Are

44. Achievement Achieved status refers to what an individual does and has accomplished. Individuals derive their status from what they have accomplished. A person with achieved status has to prove what he is worth over and over again: Status is accorded on the basis of his actions.

45. Ascription Ascribed status refers to what a person is and how others relate to his or her position in the community, in society or in an organization. Individuals derive their status from birth, age, gender or wealth. A person with ascribed status does not have to achieve to retain his status: it is accorded to him on the basis of his being.

46. 1.Use of titles only when relevant to the competence you bring to the task 2.Respect for superior in hierarchy is based on how effectively his or her job is performed and how adequate their knowledge 3.Most senior managers are of varying age and gender and have shown proficiency in specific jobs 1.Extensive use of titles, especially when these clarify your status in the organization 2.Respect for superior in hierarchy is seen as a measure of your commitment to the organization and its mission 3.Most senior managers are male, middle aged and qualified by their background Achievement Vs Ascription

47. Titel Cultural Variables How We Manage Time

48. Past – Present –or Future Past-oriented cultures the future is seen as a repetition of past experiences. Respect for ancestors and collective historical experiences Present-oriented cultures not much value to common past experiences nor to future prospects. Day-by-day experiences tend to direct people's life. Future-oriented cultures most human activities are directed toward future prospects. Generally, the past is not considered to be vitally significant to a future state of affairs. Planning constitutes a major activity in future-oriented cultures.

49. E.g. American and French telecom company giving tightly scheduled presentation in South America….American company continuing presentation without minister, else would get “delayed”…French focused on the long history with the country, indefinite after sales support. Winner – French

50. Think of the past, present and future as being in the shape of circles. Please draw three circles, representing past, present and future. Arrange three circles in any way you want that best shows how you feel about the relationship of the past, present and the future. You may use different size circles. How we manage time

51. 1.Talk about history, origin of family, business and nation 2.Motivated to recreate a golden age 3.Show respect for ancestors, predecessors and older people 4.Everything viewed in the context of tradition or history Past Vs Present Vs Future 1.Activities and enjoyments of the present are most important 2.Plans not objected to, but rarely executed 3.Show interest in present relationships. “here and now” 4.Everything viewed in terms of modern impact and style 1.Much talk of prospects, future achievements, aspirations 2.Planning and strategizing done enthusiastically 3.Show great interest in the youthful and in future potential 4.Present and past used, exploited for future advantage

52. Titel Cultural Variables Internal versus External Control

53. Internal vs External Relations with Nature Every culture has developed an attitude towards the natural environment. Survival has meant acting with or against nature. The way we relate to our environment is linked to the way we seek to have control over our own lives and over our destiny or fate.

54. Control nature Internalistic people have a mechanistic view of nature. They see nature as a complex machine and machines can be controlled if you have the right expertise. Internalistic people do not believe in luck or predestination. They are 'inner- directed' - one's personal resolution is the starting point for every action. You can live the life you want to live if you take advantage of the opportunities. Man can dominate nature - if he makes the effort.

55. Live with Nature Externalistic people have a more organic view of nature. Mankind is one of nature's forces, so should operate in harmony with the environment. Man should subjugate to nature and go along with its forces. Externalistic people do not believe that they can shape their own destiny. 'Nature moves in mysterious ways', and therefore you never know what will happen to you. The actions of externalistic people are 'outer-directed' - adapted to external circumstances.

56. Another obvious example is the use of face masks that are worn over the nose and mouth. In Tokyo you see many people wearing them especially in winter. When you inquire, why, you are told that when people have colds or a virus, they wear them so that they will not “pollute” or infect other people by breathing on them. In London they are worn by bikers and other athletes who do not want to be “polluted” by the environment. Attitude to the Environment

57. 1.Often dominating attitude bordering on aggressiveness towards environment 2.Conflict and resistance means that you have convictions 3.Focus is on self, function, own group and own organization 4.Discomfort when environment seems “out of control” or changeable 1.Often flexible attitude, willing to compromise and keep the peace 2.Harmony and responsiveness, that is sensibility 3.Focus is on the “other” i.e. customer, partner, colleague 4.Comfort with waves, shifts, cycles if these are natural Internal Control Vs External Control

58. What to do??? We need to reconcile differences, i.e. to be ourselves, but yet see and understand how the others' perspectives can help our own.

59. Your choices Ignoring other cultures - Sticking to your own cultural standpoint. Impose your own way of doing things because you believe it is the best way or because you have not recognized others way or don’t respect them Abandon your standpoint - Go native'. ‘When in Rome, do as Roman's do' approach. Acting or trying to keep up – still an amateur. Other cultures will mistrust you - and you won't be able offer your own strengths to the marriage. Compromise - Sometimes your way, sometimes others. A win- lose solution or even lose-lose solution. Compromise can not lead to a solution in which both parties are satisfied. Reconciliation - What is needed is 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. This is reconciliation.

60. Cultural Adaptation – how people can change 1 2 3 4 5 6 Integration Adaptation Acceptance Minimization Defense Denial Only we are human. ‘They’ are wrong. We are all the same under the skin We are all different … & it’s OK I can see it from your point of view I always see things more than one way CULTURE DIMENSIONS

61. Three Step Approach RECOGNITION Increase awareness of one’s own cultural perspective RECONCILIATION Resolve cultural differences RESPECT Appreciate cultural differences.

62. Integrated view on Leadership Competence Whereas managers make decisions on issues High performing leaders and entrepreneurs continually reconcile dilemmas Transcultural Competence = the propensity to reconcile seemingly opposing values

63. Other Cultural Issues

64. Hofstede’s Value Dimensions Power distance is the level of acceptance by a society of the unequal distribution of power in institutions. Uncertainty avoidance refers to the extent to which people in a society feel threatened by ambiguous situations. Individualism refers to the tendency of people to look after themselves and their immediate family only and neglect the needs of society. Masculinity refers to the degree of traditionally “masculine” values that prevail in a society.

65. Degree the society reinforce HighLow Individualis m individual achievement A High Individualism ranking indicates that individuality and individual rights are paramount within the society. Individuals in these societies may tend to form a larger number of looser relationships. A Low Individualism ranking typifies societies of a more collectivist nature with close ties between individuals. These cultures reinforce extended families and collectives where everyone takes responsibility for fellow members of their group. Power Distance inequality, between people High Power Distance ranking indicates that inequalities of power and wealth have been allowed to grow within the society. These societies are more likely to follow a caste system that does not allow significant upward mobility of its citizens. Low Power Distance ranking indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed. Uncertainty Avoidance uncertainty and ambiguity High Uncertainty Avoidance ranking indicates the country has a high level of uncertainty and ambiguity. This is reflected in a high concern for rules, regulations, controls, and issues with career security. Low Uncertainty Avoidance ranking indicates the country has a low level of ambiguity and uncertainty. This is reflected in a society that more readily accepts change and takes more and greater risks. Masculinitytraditional masculine work role model of male achievement, control, and power. A High Masculinity ranking indicates the country experiences a high degree of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure, with females being controlled by male domination. A Low Masculinity ranking indicates the country has a low level of differentiation and discrimination between genders. In these cultures, females are treated equally to males in all aspects of the society.

66. Guidelines for Effective Communication in the Middle East Be patient. Recognize the Arab attitude toward time and hospitality – take time to develop friendship and trust, as these are prerequisites for any social or business transactions. Recognize that people and relationships matter more to Arabs than the job, company, or contract – conduct business personally, not by correspondence or telephone. Avoid expressing doubts or criticism when others are present – recognize the importance of honor and dignity to Arabs.

67. Guidelines for Effective Communication in the Middle East (contd.) Adapt to the norms of body language, flowery speech, and circuitous verbal patterns in the Middle East, and don’t be impatient to “get to the point.” Expect many interruptions in meetings, delays in schedules, and changes in plans.

68. Differences between Japanese and American Communication Styles (Exhibit 4-8) Japanese Ningensei Style of Communication Indirect verbal and nonverbal communication Relationship communication Discourages confrontational strategies Strategically ambiguous communication Delayed feedback Patient, longer term negotiators Uses fewer words U.S. Adversarial Style of Communication More direct verbal and nonverbal communication More task communication Confrontational strategies more acceptable Prefers more to-the-point communication More immediate feedback Shorter term negotiators Favors verbosity

69. Differences Between Japanese and American Communication Styles (Contd.) Distrustful of skilful verbal communicators Group orientation Cautious, tentative Complementary communicators Softer, heartlike logic Sympathetic, empathetic, complex use of pathos Expresses and decodes complex relational strategies and nuances Exalts verbal eloquence More individualistic orientation More assertive, self-assured More publicly critical communicators Harder, analytic logic preferred Favors logos, reason Expresses and decodes complex logos, cognitive nuances

70. Differences Between Japanese and American Communication Styles (Contd.) Avoids decision making in public Makes decision in private venues, away from public eye Decisions via ringi and nemawashi (complete consensus process) Uses go-betweens for decision making Understatement and hesitation in verbal and nonverbal communication Frequent decision making in public Frequent decisions in public at negotiating tables Decisions by majority rule and public compromise is more commonplace More extensive use of direct person-to-person, player-to- player interaction for decisions May publicly speak in superlatives, exaggerations, nonverbal projection

71. Differences Between Japanese and American Communication Styles (Contd.) Uses qualifiers, tentative, humility as communicator Receiver/listening-centered Inferred meanings, looks beyond words to nuances, nonverbal communication Shy, reserved communicators Distaste for purely business transactions Mixes social and business communication Favors fewer qualifiers, more ego-centered More speaker- and message- centered More face-value meaning, more denotative More publicly self-assertive Prefers to “get down to business” or “nitty gritty” Tends to keep business negotiating more separated from social communication

72. Differences Between Japanese and American Communication Styles (Contd.) Utilizes matomari or “hints” for achieving group adjustments and saving face in negotiating Practices haragei or belly logic and communication More directly verbalizes management’s preference at negotiating tables Practices more linear, discursive, analytical logic; greater reverence for cognitive than for affective

73. Managing Cross-Cultural Communication Developing cultural sensitivity Careful encoding Selective transmission Careful decoding of feedback Follow-up actions

74. Behaviors Most Important to Intercultural Communication Effectiveness Respect (conveyed through eye contact, body posture, voice tone and pitch) Interaction posture (the ability to respond to others in a descriptive, nonevaluative, and nonjudgmental way) Orientation to knowledge (recognizing that one’s knowledge, perception, and beliefs are valid only for oneself and not for everyone else) Empathy Interaction management Tolerance for ambiguity Other-oriented role behavior (one’s capacity to be flexible and to adopt different roles for the sake of greater group cohesion and group communication

75. Revering Hierarchy:

76. Individualism-Collectivism:

77. Taking Care of Business:

78. Risk Avoidance:

79. Long-term Orientation:

80. Monochronic Vs. Polychronic Monochronic CulturePolychronic Culture Interpersonal RelationsInterpersonal relations are subordinate to present schedule Present schedule is subordinate to Interpersonal relations Activity Co-ordinationSchedule co-ordinates activity; appointment time is rigid. Interpersonal relations co- ordinate activity; appointment time is flexible Task HandlingOne task at a timeMany tasks are handled simultaneously Breaks and Personal TimeBreaks and personal time are sacrosanct regardless of personal ties. Breaks and personal time are subordinate to personal ties. Temporal StructureTime is inflexible; time is tangible Time is flexible; time is fluid Work/personal time separabilityWork time is clearly separable from personal time Work time is not clearly separable from personal time Organisational PerceptionActivities are isolated from organisation as a whole; tasks are measured by output in time (activity per hour or minute) Activities are integrated into organisation as a whole; tasks are measured as part of overall organisational goal

81. Definitions of Cultural Terms Self-reference criterion refers to the unconscious reference point of one’s own cultural values. Parochialism occurs when a Frenchman, for example, expects those from or in another country to automatically fall into patterns of behavior common in France. Ethnocentrism describes the attitude of those who operate from the assumption that their ways of doing things are best – no matter where or under what conditions they are applied.