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Set 4
Culture, Diversity, Communication
What are some indicators of a
country’s culture?
Some proverbs—what can we learn?
All roads lead to Rome. (Rome)
All roads do not lead to Rome. (Slovenia)
An army of sheep led by a lion would defeat an army of
lions led by a sheep. (Arab)
Below the navel there is neither religion nor truth. (Italy)
Be prepared. (Boy Scouts)
Some proverbs
The big thieves hang the little ones. (Czech)
The church is near, but the way is icy. The tavern is far, but
I will walk carefully. (Ukraine)
The enemy of my enemy is my friend. (Arab)
Fish or cut bait. (U.S.)
The hammer shatters glass but forges steel. (Russia)
Some proverbs
If you can't beat 'em, join 'em. (U.S.)
The hand that gives gathers. (Sweden)
A closed mind is like a closed book; just a block of wood.
(China)
After victory, tighten your helmet strap. (Japan)
Act and you shall have dinner, think and you shall be dinner.
(Klingon)
Some highlights about culture and IB
Cultural values
Hofstede
GLOBE project
Cultural values about management vary…
Centralized (top-down) vs. decentralized decision-making:
Safety vs. risk: comfort with uncertainty and risk
Individual vs. group rewards
Informal methods vs. formal procedures/rules
Loyalty to organization vs. loyalty to profession
Cooperation vs. competition—employees, companies
Short-term profits vs. long-term growth/innovation
Valuing stability vs. valuing change
Priorities of Cultural Values
Example: US, Japan, Arab countries
Values in Culture
Impact of values on management…
Hofstede’s Dimensions of Culture
1.
2.
3.
4.
Power distance
Uncertainty avoidance
Individualism/collectivism
Masculinity/femininity
Power distance: Less powerful members accept that
power is distributed unequally
[but do they really?]
High: obey superiors; centralized, tall structures
(e.g., Mexico, South Korea, India)
Low: flatter, decentralized structures, fewer
supervisors (e.g., Austria, Finland, Ireland)
Uncertainty avoidance: create beliefs/institutions the
threat of ambiguous situations
High: more focus on expert knowledge, structure,
rules, less risk-taking (e.g., Germany, Japan, Spain)
Low: less structure in activities, fewer rules, more
employee turnover (e.g., Denmark, Great Britain)
Individualism/collectivism: look after self and
immediate family only, or broader group
High individualism: focus on work, individual
initiative, promotions based on
accomplishment/value (e.g., U.S., Canada,
Sweden)
High collectivism: less focus on work, less
individual initiative, promotions based on
seniority (e.g., Indonesia, Pakistan)
Masculinity/feminity: which social values appear
primary?
High masculinity: emphasize earnings, recognition,
advancement, challenge, wealth. Job stress is high
(e.g., Germanic countries)
High feminine countries: emphasize caring for others,
quality of life, cooperation, friendly atmosphere.,
employment security, group decision making. Job
stress is low (e.g., Norway)
GLOBE project: Global Leadership and
Organizational Behavior Effectiveness
Org. culture and diversity
interaction of national and MNC culture
multi-culturalism and diversity in MNCs
problems/advantages of diversity
Interaction between
National and Organizational Culture
National cultural values affect employee’s
behavior/performance
Cultural values employees bring to workplace
are not easily changed
Dimensions of Organizational Culture
European View of U.S. Operations of one MNC
National Patterns
of Corporate Culture
Diversity/Multiculturalism
An MNC’s mix at home and abroad may include
men, women
young, old
black, white, yellow, brown, red, etc.
multiple religions
What else??
Disadvantages of Diversity
Perceptual problems
Preconceived, erroneous stereotypes of others
Inaccurate biases
Inaccurate communication
Attitudinal problems
May lead to lack of cohesion, inability to act, poor
performance
Advantages of Diversity
More creativity
Better decisions
More effective/productive results
Less groupthink
Better teams
Communication
context
suggestions and barriers
negotiation
Verbal Communication
Context:
Information that surrounds a communication and helps
convey the message
Explains many communication differences
Verbal Communication
High-context culture: messages coded, implicit and
indirect; voice intonation, timing, facial
expressions play important roles in conveying
information
(e.g., Japan, Arab countries, Latin America)
Low-context culture: people often meet only to
accomplish objectives; tend to be direct and
focused in communications
(e.g., Germany, Scandinavia, US, Canada)
Suggestions for Communication
Use common words
Words with few alternative meanings
Follow grammar rules
Speak clearly
Avoid slang, unusual, or culturally biased words
Avoid words that require mental images (“off the charts”)
Clarify/repeat basic ideas
Test understanding—ask him/her to paraphrase
Communication Barriers
Language, body language barriers
Practical barriers
Differences in approaches to benefits, compensation, pay
cycles, holidays,
Metric system popular—include conversions in all
communications
Calendars, ways of displaying dates, paper sizes, measures
Be sure that even in English-speaking countries, words don’t
have different meanings—e.g., dollar
Cultural Differences and Negotiation
Don’t assume you can identify someone’s culture, or
that it fits.
Western bias toward “doing”. Being, feeling, thinking,
talking may shape relationship more than doing.
Norms for outsiders may be different than for
compatriots.
Don’t overestimate familiarity with someone’s culture.