Cross cultural Business Behaviour

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Cross cultural Business Behaviour

• Web reader
• http//docweb.khk.be/Jan20Agten/logincross.htm

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Whats in a word?

• Multi-cultural
• Enumeration, number, many
• Inter-cultural
• Interaction between different cultures
• Exchange
• Melting pot mixure
• Intra-cultural
• Differences within one culture,
• Eg. workers employees in Belgium
• Eg. Youngsters adults / students teachers
• Corporate culture
• Cross-cultural
• Intention to meet and to bridge on an equal basis

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Interculturalism

• Related to culture(s)
• Derived from the latin word inter and takes
  place between different cultures
• Dynamic concept focusing on exchange and
  mediation
• Multiculturalism describes the situation of many
  cultures existing side by side of whith each
  another

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Intercultural Reflections

• The forces that bring people from other cultures
  into your life are dynamic, potent and ever
  present.
• Myron W. Lustig, Jolene Koester

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What?

• The single greatest barrier to business
  success is the one erected by culture.
• - Edward T. Hall and Mildred Reed Hall

Culture is a thin but very important veneer that
you must be careful not to scratch. People from
different cultures are basically the same and
respond in the same way. However, make sure that
you understand their basic customs and show
interest and willingness to learn differences
between your cultures. - Mike Willis
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Differences in culture

• CULTURE
• In ordinary speech, the word culture refers to
  the entire way of life of a society.
• To the sociologist and anthropologists, culture
  consists of all the shared products of human
  society.
• These products are of two basic kinds
• Material ArtifactsPhysical Objects Clothing,
  Schools, Factories, Cities, Books
• Non material language, Ideas, Beliefs, Rule,
  Customs, Skills, Family patterns, Political
  systems
• Hospitality companies entering a new market use
  different approaches to address these issues
• Todays hospitality managers must be able to
  understand and adapt to different cultures

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Why?

• Meeting, dealing, entertaining, negotiating,
  corresponding with people of a different culture
  can be a minefield.
• Learning the simple do donts can help to
  avoid simple mistakes and help generate respect
  and understanding.
• Thus, success of your mobility requires two
  things
• 1 intercultural awareness and
• 2 effective cross-cultural communication skills.
• It also helps to minimize a cultural shock!

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The Nordic way of doing business or is there
one?
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A cultural survey

• Based on Hofstedes theory
• http//www.geert-hofstede.com/geert_hofstede_resou
  rces.shtml

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Cultural DIMENSIONSHofstede

• Power Distance (PDI)
• Individualism (IDV)
• Masculinity (MAS)
• Uncertainty Avoidance (UAI)
• Longterm Orientation (LTO)

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Power distance (PDI)

• To what extent do we accept that some people have
  more power than others?
• High Low
• hierarchical egalitarian
• top-down top-down / bottom-up
• Latin Germanic

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Individualism vs collectivism (IDV)

• Individualism
• I
• small group
• independence
• personality
•  Western 

• Collectivism
• we
• extended family, group
• interdependence
• harmony
• Portugal, Greece, Spain, Africa, Asia, Latin
  America

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Masculinity vs femininity (MAS)

• Femininity
• don t be different
• sympathy for the weak
• solidarity, caring
• environment
• Scandinavian countries, The Netherlands, Africa

• Masculinity
• be the best
• ambition, competition
• money, performance
• success, technology
• Italy, Germany, UK, Belgium, USA

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Uncertainty Avoidance (UAI)

• Strong UA
• uncertainty threat
• the unknown danger,
• risk averse
• distrust, stress
• Greece, Latin countries, German speaking
  countries, Finland

• Weak UA
• uncertainty normal
• the unknown interesting
• risk taking,  open 
• relax,  cool 
• Scandinavian, Anglo-Saxon, Dutch

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Longterm Orientation (LTO)

• LTO
• Future directed
• Perseverence
• Thrift

• Short-term Orientation
• Past and present oriented
• Tradition
• Perseveration of face
• Fulfilling social obligations

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Culture Hofstede

• Cultural Differences are programmedCulture is
  the sofware of the mind
• ex. Interpretation of State Regulations
• Every thing what is not forbidden is aloud
• ? FR
• Every thing what is not aloud is forbidden
• ? D
• Many things which are forbidden are aloud if not
  controlled
• ? B

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Culture Hofstede

• Levels of cultural programming

Inherited and learned
Specific to individual
Personality
individual
Specific to group or category
Culture
Learned
Inherited
Human nature
Universal
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Culture as an iceberg
manners, customs, language, history
explicit
1/9
tacit
Values, vision of the world, presumptions,
way of thinking
8/9
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Culture Onion-diagram
symbols
heroes
rituals
values
practices
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Symbols
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Symbols
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Heroes
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Rituals
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Symbols
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Culture Hofstede

• Cultural Differences
• programmed ex.
• Universal theory of needs ? universal
• Maslovs theory in US (low collectivism)
• dimensions are based on world statistics
• explanations for obvious differences

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The process of living with differences

• Exercice Barnga
• Playing cards

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Culture as a static concept

• Define membership and identity
• Create exclusion of non members
• Regulate external adaptation
• Regulate internal integration
• Maintain norms that create order
• Hence favour survival
• and resist or absorb change

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Culture as a dynamic conceptdiversity as a added
value

• Cultural differences are challenging
• Challenge creativity
• Open minded
• Stimulate communication
• Never the same
• Attractive
• Boost change

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Why diversity in business

• Due to its service oriented nature, and the rapid
  expansion of the industry worldwide, the need for
  cultural awareness and management of a diverse
  workforce are becoming essential components for
  a successful outcome.
• There are many examples of successful companies
  that failed to maintain their success when
  expanded their business into other countries
  simply due to lack of cultural differences among
  employees and guests in the host country, and
  their inability to manage a diverse workforce.
• Companies that prosper have the capacity to
  effectively solve problems, rapidly adapt to new
  situations, readily identify new opportunities
  and quickly capitalize on them. This capacity can
  be measured by the range of talent, experience,
  knowledge, insight, and imagination available in
  their workforces.
• According to Dr. Santiago Rodriguez, Director of
  Diversity for Microsoft, true diversity is
  exemplified by companies that hire people who
  are different knowing and valuing that they
  will change the way you do business.
• Andreas Christoforou The need for Cultural
  Awareness and Diversity Management

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FACTORS MOTIVATING COMPANIES TO DIVERSIFY THEIR
WORKFORCE

• Social Responsibility
• Economic Payback
• Resource Imperative
• Legal Requirement
• Marketing Strategy
• Business Communications Strategy

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How to manage differences?

• Discuss in your team and collect the differences
• What language(s) do you speak at home?
• How many times do you have to have met someone
  before you invite them into your home?
• What do you do to welcome someone into your home?
  What would your grandparents do differently?
• What drink do you offer a guest?
• How do you greet a guest handshake, kiss,
  embrace? Does this depend on their age nd if
  theyre male of female?
• What is your favourite place in your home?

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Crossing the cultural treshold

• Compare your team findings with the sample given
  in Crossing the cultural tresholds
• What suits, what differs?
• Discover the differences in inter-cultural
  perspective and in intra-cultural perspective

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Mind the cultural gap

• Misunderstandings as an invitation to take
  contact
• Etiquette
• Please
• Smiling
• Shaking hands
• Kissing

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Misunderstandings as to know

• Hygiene
• wash dishes
• washing and bathing
• personal washing
• nose blowing and sniffing
• animals - pets
• carpets

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Misunderstandings as to discuss

• Food and drink
• Serviette
• Fresh crusty bread
• Bar visit (number of drinks way of paying)
• Leave a little in glass

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Misunderstandings as to feel

• Time
• Polite is be late 10 min early is polite
• Organic time linear time
• Time for going out
• Agreeing and disagreeing
• Impossible to say no
• Wanting to please by saying yes

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Exercise on identity
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Unique Personality
- education
religion -
- sexe
City/rural -
- gender
-
- black/white
- ethnicity
unique personality
Social - economic -
- nationality
- age
-
- decent
Physical/mental condition -
- profession
family -
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Cultural identity
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Cultural identity
We are all exciting immigrants
Cultures dont meet, people do!
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Culture as Backpack

• In different contexts differents aspects of
  identity
• Shopping culture I am unique
• Easily move flexibility

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Cultural Risks
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Diversity and identity

• DIVERSITY (DIVERSE WORKFORCE)
• A diverse workforce consists of diversity in
• Racial background
• Ethnic background,
• Language,
• Religion,
• Age,
• Gender,
• Sexual orientation,
• Lifestyle,
• Education,
• Experience,
• And/or ability differences (Hayles et al, 1997).
• Each of these characteristics and experiences
  makes a person unique
• Hayles et al (1997) stated that diversity
  provides access to a larger pool of knowledge,
  skills and abilities, which can create a huge
  benefit to an organization.

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Questions ?

• Has culture an influence on business?
• Is culture a manageable thing?
• On an individual level? (micro)
• On a interprise level? (meso)
• On a structural level? (macro)
• How does culture function?

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Culture Onion-diagram
symbols
heroes
rituals
Own culture
values
New culture
practices
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Culture in business

• Cultural awareness is absolutely essential to
  trading abroad
• Cultural awareness helps you to
• Adapt your product
• Understand your costumer

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Culture in business

• Two Iron Rules of International Business
• the Seller Is Expected to Adapt to the Buyer.
• the Visitor Is Expected to Observe Local Customs

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Culture in business behaviour

• Cultural dimensions
• Identity
• Management of diversity

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Misunderstandings

• MOTTO
• If you find yourself getting irritated by what
  someone from another culture does or says, the
  chances are that one of you has misunderstood
  something

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Language

• Reflect
• will promote and disseminate the importance of
  language skills in SMEs by developing
• Easy Trader

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ECO - European Career Orientation