Intercultural Management

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Intercultural Management

• Effective Communication in a Global Environment

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Global Business
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Intercultural Myths

• The Global Village Myth the world is
  homogeneous
• Universality Myth underneath our differences, we
  are all really the same.

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Can Most People be trusted?

• United States 55
• United Kingdom 49
• Mexico 30
• West Germany 19
• Italy 1

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Culture Influences Values and Attitudes

• Values and Attitudes influence Business Behavior

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What is culture
Observable behaviour
Values and assumptions
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Layers of culture
Right or wrong
Language, food, dress religion, buildings,
fashion, art
Good or Bad
Assumptions about existence
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Levels of uniqueness in mental programming
(Hosfstede)
Inherited and learned
Specific to individual
Personality
Specific to group or category
Learned
Culture
Human nature
Inherited
Universal
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Cultural differences

• Type of culture
• How we relate to people
• How we relate to time

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Low context
High Context
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High-Context Cultures

• No clear separation of business and private life
• Long lasting relationships
• Implicit communication
• Loyalty to people of authority
• Spoken agreements
• Outsiders do not gain entry easily
• Negotiations slow and ritualistic

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Low Context

• Business is separate to private life
• Relationships are short in duration (functional)
• Explicit communication
• Authority is diffused
• Written agreements supported by law
• Outsiders are encouraged to join inner circle
• Negotiations structured with participant roles
  clearly defined

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A Context Continuum

ITALYFRANCE
GREECE
SPAIN
UK
ARAB
USA
VIETNAM
KOREA
SCANDINVIA
JAPAN
GERMANY

CHINA
FINLAND

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Lewins Circles
PUBLIC
PUBLIC
PRIVATE
PRIVATE
G- type high context Europe
G- type high context China Japan
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Lewins Circles Continued
PUBLIC
Work
Choir
Tennis Club
PRIVATE
Fridge
Chambers
Car
U-Type Low Context
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Lewins Circles Continued
PUBLIC
Work
PRIVATE
Choir
Tennis Club
Chambers
U-Type Low Context Europe
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Relationship with people

• Individualism Communitarian
• Neutral Emotional
• Universalism Particularism
• Achievement Ascription

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Individuals

• Use of the I form in communication
• Instant decision making by representatives
• Achievement is personal
• Individual assumes responsibility for actions
• Job Mobility and staff turnover high
• Pay for performance and individual assessment
  accepted
• Risk taking admired (link to entrepreneurship)

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Communitarians

• Risk avoidant
• Use of the we form
• Decisions referred back by delegates to
  organisations
• Achievement is group based and joint
  responsibility is assumed for actions
• Loyalty to organisation important
• Group incentives and team work expected

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Individualism
Encourages individual freedom and responsibility
However..
We need to avoid Conformism and slow Decision
making, so we must.
We dont want to degenerate Into
self-centredness, so we Must
Encourage individuals to Work for consensus in
the interest Of the group although
Communitarianism
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Verbal Communication

• Low-Context A
• B
• High-Context A
• B
• Oriental A
• B

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Tone Of Voice

• Low-Context
• High-Context
• Oriental

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Neutral Cultures

• Hide emotions
• Cool and controlled behaviour is admired
• Physical contact and strong expression of body
  language is taboo
• Tension and stress is often seen in body language
• Emotions that are controlled may sometimes explode

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Affective Cultures

• Thoughts and feelings are expressed verbally and
  non-verbally
• Expression of disagreement is uninhibited
• Lively discussion with lots of emotion admired
• Frequent physical contact and open expression
  of body language permissible

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Universalist

• Rules, regulations and procedures very important
• Agreement is usually supported by legal contract
• There is the law, and that is that
• A persons trustworthiness is based on honouring
  their word or contract

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Particularist

• Relationships more important than rules
• Legal contracts and be easily modified
• The law is relative
• A persons trustworthiness is based on whether
  they respond to changing circumstances

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Achievement

• Titles are only used when relevant
• Respect for hierarchy is based on effectiveness
  and ability of jobholder
• Senior managers may be of varying age and gender
• Senior managers hold their position based on
  competence and qualifications
• Low power distance

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Ascription

• Extensive power distance
• Titles used extensively to indicate status in
  organisation
• Respect for hierarchy is required to demonstrate
  commitment to the organisation
• Senior managers are usually male, middle-aged and
  qualified by background, formal qualifications
  and connections

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Time
Sequentially
Synchronically
Past Present Future
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Nonverbal Sensitivity

• Greetings
• Eye Contact
• Space
• Touch
• Posture
• Facial expressions
• Timing
• Silence
• Gestures

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Resolution

• Respect Knowledge Tolerance
• Understanding
• Cooperation