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Pageiii

RidingtheWavesofCulture
UnderstandingCulturalDiversityinBusiness
FonsTrompenaarsandCharlesHampdenTurner

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Thisneweditionfirstpublishedby
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Reprintedwithcorrections1998,1999,2000
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Text1993,1997InterculturalManagementPublishersNV
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identifiedastheauthorsofthisworkhavebeenassertedinaccordance
withtheCopyright,DesignsandPatentsAct1988.
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Contents
PrefacetotheSecondEdition

ix

1
AnIntroductiontoCulture

TheImpactofCultureonBusiness

HowProvenFormulasCanGivetheWrongResult

CultureIstheWayinWhichPeopleSolveProblems

TheBasisofCulturalDifferences

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StructureoftheBook
2
TheOneBestWayofOrganisingDoesNotExist

11
13

WhattheGurusTellUs

13

NeglectofCultureinAction

14

CultureasaSideDish?

16

AnAlternativeApproach

17

Summary

19

3
TheMeaningofCulture

20

TheConceptofCulture

20

TheLayersofCulture

21

CultureDirectsOurActions

24

Cultureasa"NormalDistribution"

24

CulturesVaryinSolutionstoCommonProblemsandDilemmas

26

Summary

27

4
RelationshipsandRules

29

TheUniversalVersustheParticular

31

UniversalistVersusParticularistOrientationsinDifferentCountries

33

UniversalismVersusParticularisminInternationalBusiness

38

ReconcilingUniversalismandParticularism

43

PracticalTipsforDoingBusinessinUniversalistandParticularistCultures

48

5
TheGroupandtheIndividual

50

ConceptsofIndividualismandCommunitarianism

52

Doesmodernisationimplyindividualism?

53

Whichcommunity?

54

Isindividualismacorporaterequirement?

56

IndividualismVersusCommunitarianisminInternationalBusiness

59

Individualism,CommunitarianismandMotivation

61

DifferencesinOrganisationalStructure

63

ReconcilingIndividualismandCommunitarianism

63

PracticalTipsforDoingBusinessinIndividualistandCommunitarian
Cultures

67

6
FeelingsandRelationships
AffectiveVersusNeutralCultures

69

69

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DegreesofAffectivityinDifferentCultures

72

InterculturalCommunication

74

ReconcilingNeutralandAffectiveCultures

76

PracticalTipsforDoingBusinessinNeutralandAffectiveCultures

79

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7
HowFarWeGetInvolved
SpecificVersusDiffuseCultures

81

NegotiatingtheSpecificDiffuseCulturalDivide

87

TheEffectofSpecificDiffuseOrientationonBusiness

90

TheMixofEmotionandInvolvement

94

ReconcilingSpecificDiffuseCultures

97

PracticalTipsforDoingBusinessinSpecificandDiffuseCultures
8
HowWeAccordStatus

100
102

StatusbyAchievementandEconomicDevelopment

104

AscriptionandPerformance

107

AchievementandAscriptionOrientedCultures'Negotiations

108

TowardsReconciliation

114

PracticalTipsforDoingBusinessinAscriptionandAchievementOriented
Cultures

118

9
HowWeManageTime

120

TheConceptofTime

120

OrientationstoPast,PresentandFuture

122

SequentiallyandSynchronicallyOrganisedActivities

123

MeasuringCulturalDifferencesinRelationtoTime

125

TimeHorizon

126

TimeOrientationsandManagement

129

ManagingChangeinaPastOrientedCulture

133

PlannedSequencesorPlannedConvergence?

135

ReconcilingtheSequentialandtheSynchronic

137

PracticalTipsforDoingBusinessinPast,PresentandFutureOriented
Cultures

138

10
HowWeRelatetoNature

141

ControllingNature,orLettingItTakeItsCourse

141

ControlandSuccess

142

Howimportantisaculture'sorientationtonature?

147

ManagingbetweenDifferentOrientationstoNature

148

Ismodernmanagementabattlebetweenprivateagendas?

150

ReconcilingInternalandExternalControl

151

Summary

154

PracticalTipsforDoingBusinessinInternalandExternalOriented
Cultures

155

11
NationalCulturesandCorporateCulture

81

157

DifferentCorporateCultures

157

TheFamilyCulture

158

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TheEiffelTowerCulture

166

TheFamilyandtheEiffelTowerinConflict

171

TheGuidedMissileCulture

172

TheIncubatorCulture

175

WhichCountriesPreferWhichCorporateCultures

177

Summary

179

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12
TowardsInternationalandTransnationalManagement

182

ProblemsfortheCrossCulturalManager

183

InternationalandTransnationalCompanies

186

HumanResourceManagementintheFuture

189

TheGrowthofInformation

189

ImplicationsforBusinessStrategy

191

LocalFreedomtoPrioritiseEmploymentValues

192

LocalFreedomtoReward

193

TheErrorCorrectingManager

194

13
ReconcilingCulturalDilemmas

195

AwarenessofCulturalDifferences

195

RespectingCulturalDifferences

197

ReconcilingCulturalDifferences

200

14
SouthAfrica:TheRainbowNation

212

DilemmaMappinginSouthAfrica

213

ComparingAfricanandWesternMentalModels

216

15
Gender,EthnicityandFunctionalDiversity

221

GenderDifferencesWorldwide

221

DiversityintheUSA

224

UniversalismParticularism

225

TheGroupVersustheIndividual

226

ToShoworNottoShowOurEmotions

227

Howfardowegetinvolved?

228

Ishighstatusearnedthroughachievementorascribed?

230

ControlorBeControlled:AmericanBeliefinInnerDirectedness

232

HowIsTimeOrganisedintheUSA?

233

FunctionalDiversity

235

DiversityinIndustries

238

DatabaseMining

240

GeneralConclusions

242

Appendix1
Examplesfromthe16QuestionsUsedtoMeasureCorporateCulture

243

Appendix2
TheTrompenaarsDatabase

245

Appendix3
UnitedNotions

257

Index

259

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Pageix

PrefacetotheSecondEdition
Sincethefirsteditionofthisbookwaspublishedwehavecarriedoutagreatdealmoreworkforourdatabaseanditnowconsistsof30,000participantswhohave
completedourquestionnaire.Thisnewmaterialhasenabledustorefineanddevelopourideasandwehaveincludedourlatestthinkinginthisrevisededition.
Inadditiontoupdatingtheoriginalresearchfindings,wehaveaddedthreenewchaptersandarevisedappendix.Chapter13analysesamethodologyforreconciling
culturaldilemmasanddevelopingtransculturalcompetence.Chapters14and15discussdiversitywithinratherthanbetweencountries,describingethnicdifferences
inSouthAfricaandtheUSAandalsoconsideringtheeffectoncultureofgender,age,functionalbackgroundandorganisationalstructure.Appendix2outlinesour
researchmethodologyinmoredetail.
Thefirsteditionofthisbooktookovertenyearstocomplete.ManypeoplewhosepathsFonscrossedduringthattimewereveryhelpful.Hewouldliketodojustice
tothemallinchronologicalorder,sincehehasasequentialapproachtotime:
IamdeeplyindebtedprofessionallytoFritsHaselhoffforhisinsightsintomanagementandstrategy.HealsohelpedmetoobtainascholarshipandtodefendmyPhD
thesisinPhiladelphia.
Thankyou,too,ErikBreeandReiTorresfromtheRoyalDutch/ShellGroupforyoursponsorship,bothinmoneyandinresearchopportunityduringthedifficultfirst
yearsofmyproject.
Iamalsoverygratefultothetwogurusinmyprofessionallife.FirstofallHasanOzbekhan,whotaughtmetheprinciplesofsystemstheoryinsuchaprofoundand
stimulatingwaythatmostofthethoughtsonwhichthisbookarebasedaredrawndirectlyfromhisexcellentmind.Second,CharlesHampdenTurner,whohelpedme
todevelopthinkingaboutcultureasawayofsolvingdilemmas.Hiscreativemindencouragesmecontinuouslytostretchexistingideastonewlevels.Hemadeamajor
editorialcontributiontothefirsteditionofthisbook,whilealwaysrespectingwhatIwastryingtocommunicate.Theadditionstothissecondeditionaresosignificantly
influencedbyCharles'swayofthinkingthatIinvitedhimtobecomecoauthor.
IamverymuchobligedtoGiorgioInzerilliforhissolidattimesprovocativetranslationsfromdeepanthropologicalthinkingtomanage

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mentapplications.Hiswayofcommunicatingthelinkbetweenpracticeandconcepthasbeenveryimportantnotonlytothisbookbutalsotothewaymycolleagues
andIpresentworkshops.Manyoftheexamplesusedaredirectlyorindirectlyduetohim,andhealsoputmeonthetrackofdefiningthesevendimensionsofculture.
IamgratefultoourcolleaguesKevanHall,PhilipMerryandLeonelBrugforhelpindevelopingmoreeffectiverelationshipswithclients.Theyaresomeofthefew
peopleItrusttomakepresentationsonmajorpointsofthisbookwithoutfeelingtooanxious.
ManythankstomycolleaguesintheTrompenaarsHampdenTurnerInterculturalManagementGroup(formerlytheCentreforInternationalBusinessStudies/United
Notions),TinekeFloor,NaomideGroot,VincentMerk,OscarvanWeerdenburgandPeterPrud'homme,fortheircontinuoussupportandpositivecriticism.
WewouldalsoliketothankMartinGillofromAdvancedMicroDevicesandRSMoorthyfortheirguidanceintheapplicabilityofourthoughts.
AgreatdealofworkwasdonefortherevisededitionbyProfessorPeterWoolliamsoftheUniversityofEastLondon.Hishelpwasnotlimitedtotheproductionof
ourinteractiveeducationaltoolsbutextendedtocomplexstatisticalanalysisofourdatabase.Hisinsightshavebeenveryenlightening.Thankyou,Peter.
Chapter14onSouthAfricacametofruitionwiththesignificanthelpofLouisvandeMerwe(TrompenaarsGroupSouthAfrica)andPeterPrud'homme(United
NotionsinAmsterdam).Thankyou,LouisandPeter.
Chapter15ondiversityintheUSAwasverymuchimprovedbythecommentsofDinaRaymondofMotorola.Weneededherfemalesensitivitytocheckourmale
conclusions.ThankyouDina.
AndobviouslywecouldnotbestimulatedmorethanbythecommentsofGeertHofstede.HeintroducedFonstothesubjectofinterculturalmanagementsome20
yearsago.Wedonotalwaysagree,buthehasmadeamajorcontributiontothefield,andwasresponsibleforopeningmanagement'seyestotheimportanceofthe
subject.Bydefendinghis25yearoldmodel,wefoundanextraimpetustogobeyond"plotting"differences,todevelopamethodoftakingadvantageofthese
differencesthroughreconciliation.
WealsowanttothankNicholasBrealeyPublishingfortheirsupport,inparticularSallyLansdellwhoeditedtherevisededition.
FONSTROMPENAARS
CHARLESHAMPDENTURNER
SEPTEMBER1997

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Page1

1
AnIntroductiontoCulture
Thisbookisaboutculturaldifferencesandhowtheyaffecttheprocessofdoingbusinessandmanaging.ItisnotabouthowtounderstandtheFrench(asheer
impossibility)ortheBritish(try,andyouwillsoongiveup).Itisourbeliefthatyoucanneverunderstandothercultures.Thosewhoaremarriedknowthatitis
impossibleevercompletelytounderstandevenpeopleofyourownculture.TheDutchauthorbecameinterestedinthissubjectbeforeitgrewpopularbecausehis
fatherisDutchandhismotherisFrench.Itgavehimanunderstandingofthefactthatifsomethingworksinoneculture,thereislittlechancethatitwillworkinanother.
NoDutch"management"techniquehisfathertriedtouseeverworkedveryeffectivelyinhisFrenchfamily.
ThisisthecontextinwhichwestartedwonderingifanyoftheAmericanmanagementtechniquesandphilosophywewerebrainwashedwithinmanyyearsofthebest
businesseducationmoneycouldbuywouldapplyintheNetherlandsortheUK,wherewecamefrom,orindeedintherestoftheworld.
Bothauthorshavebeenstudyingtheeffectofcultureonmanagementformanyyears.Thisbookdescribesmuchofwhatwehavediscovered.Thedifferentcultural
orientationsdescribedresultfrom15yearsofacademicandfieldresearch.Manyoftheanecdotesandcasesusedinthetexthavecomeupinthecourseofmorethan
1000crossculturaltrainingprogrammeswehavegiveninover20countries.Thenamesofthecompaniesusedinmostofthecasesaredisguised.
Apartfromthetrainingprogrammematerial,30companies,withdepartmentsspanning50differentcountries,havecontributedtotheresearch.TheseincludeAKZO,
AMD,AT&T,BSN,EastmanKodak,ElfAquitaine,SGS/Thomson,CRA,Glaxo,Heineken,ICI,Lotus,Mars,Motorola,Philips,RoyalDutchAirlinesKLM,theRoyal
Dutch/ShellGroup,Sematech,TRW,VanLeer,VolvoandWellcome,tonameafew.Inordertogathercomparablesamples,aminimumof100peoplewithsimilar
backgroundsandoccupationsweretakenineachofthecountriesinwhichthecompaniesoperated.Approximately75%oftheparticipantsbelongtomanagement
(managersinoperations,

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Page2

marketing,salesandsoon),whiletheremaining25%weregeneraladministrativestaff(typists,stenographers,secretaries).Thedatabasenownumbers30,000
participants.Thisistwiceasmuchasfouryearsagowhenthefirsteditionwaspublished.Theempiricalresultsare,however,justanillustrationofwhatwearetrying
tosay.
Thisbookattemptstodothreethings:dispelthenotionthatthereis''onebestway"ofmanagingandorganisinggivereadersabetterunderstandingoftheirown
cultureandculturaldifferencesingeneral,bylearninghowtorecogniseandcopewiththeseinabusinesscontextandprovidesomeculturalinsightsintothe"global"
versus"local"dilemmafacinginternationalorganisations.Possiblythemostimportantaspectofthebookisthesecondofthese.Ibelieveunderstandingourown
cultureandourownassumptionsandexpectationsabouthowpeople"should"thinkandactisthebasisforsuccess.
TheImpactofCultureonBusiness
Takealookatthenewbreedofinternationalmanagers,educatedaccordingtothemostmodernmanagementphilosophies.TheyallknowthatintheSBU,TQMshould
reign,withproductsdeliveredJIT,whereCFTsdistributeproductswhilesubjecttoMBO.IfthisisnotdoneappropriatelyweneedtoBPR.(SBU=strategicbusinessunit
TQM=totalqualitymanagementJIT=justintimeCFT=customerfirstteamMBO=managementbyobjectivesBPR=businessprocessreengineering.)
Butjusthowuniversalarethesemanagementsolutions?Arethese"truths"aboutwhateffectivemanagementreallyis:truthsthatcanbeappliedanywhere,underany
circumstances?
Evenwithexperiencedinternationalcompanies,manywellintended"universal"applicationsofmanagementtheoryhaveturnedoutbadly.Forexample,payfor
performancehasinmanyinstancesbeenafailureontheAfricancontinentbecausethereareparticular,thoughunspoken,rulesaboutthesequenceandtimingof
rewardandpromotions.Similarly,managementbyobjectivesschemeshavegenerallyfailedwithinsubsidiariesofmultinationalsinsouthernEurope,becausemanagers
havenotwantedtoconformtotheabstractnatureofpreconceivedpolicyguidelines.
Eventhenotionofhumanresourcemanagementisdifficulttotranslatetoothercultures,comingasitdoesfromatypicallyAngloSaxondoctrine.Itborrowsfrom
economicstheideathathumanbeingsare"resources"likephysicalandmonetaryresources.Ittendstoassumealmostunlimitedcapacitiesforindividualdevelopment.
Incountrieswithoutthesebeliefs,thisconceptishardtograspandunpopularonceitisunderstood.

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Internationalmanagershaveittough.Theymustoperateonanumberofdifferentpremisesatanyonetime.Thesepremisesarisefromtheircultureoforigin,theculture
inwhichtheyareworkingandthecultureoftheorganisationwhichemploysthem.
Ineverycultureintheworldsuchphenomenaasauthority,bureaucracy,creativity,goodfellowship,verificationandaccountabilityareexperiencedindifferentways.
Thatweusethesamewordstodescribethemtendstomakeusunawarethatourculturalbiasesandouraccustomedconductmaynotbeappropriate,orshared.
Thereisatheorythatinternationalisationwillcreate,oratleastleadto,acommoncultureworldwide.Thiswouldmakethelifeofinternationalmanagersmuchsimpler.
PeoplepointtoMcDonald'sorCocaColaasexamplesoftastes,marketsandhenceculturesbecomingsimilareverywhere.Thereare,indeed,manyproductsand
servicesbecomingcommontoworldmarkets.Whatisimportanttoconsider,however,isnotwhattheyareandwheretheyarefoundphysically,butwhattheymean
tothepeopleineachculture.Aswewilldescribelater,theessenceofcultureisnotwhatisvisibleonthesurface.Itisthesharedwaysgroupsofpeopleunderstand
andinterprettheworld.SothefactthatwecanalllistentoWalkmansandeathamburgerstellsusthattherearesomenovelproductsthatcanbesoldonauniversal
message,butitdoesnottelluswhateatinghamburgersorlisteningtoWalkmansmeansindifferentcultures.DiningatMcDonald'sisashowofstatusinMoscow
whereasitisafastmealforafastbuckinNewYork.Ifbusinesspeoplewanttogainunderstandingofandallegiancetotheircorporategoals,policies,productsor
serviceswherevertheyaredoingbusiness,theymustunderstandwhatthoseandotheraspectsofmanagementmeanindifferentcultures.
Inadditiontoexploringwhyuniversalapplicationsofwesternmanagementtheorymaynotwork,wewillalsotrytodealwiththegrowingdilemmafacinginternational
managersknownas"glocalisation".
Asmarketsglobalise,theneedforstandardisationinorganisationaldesign,systemsandproceduresincreases.Yetmanagersarealsounderpressuretoadapttheir
organisationtothelocalcharacteristicsofthemarket,thelegislation,thefiscalregime,thesociopoliticalsystemandtheculturalsystem.Thisbalancebetween
consistencyandadaptationisessentialforcorporatesuccess.
ParalysisthroughAnalysis:
TheElixiroftheManagementProfession
PetersandWatermaninInSearchofExcellencehitthenailontheheadwiththeircritiqueof"therationalmodel"and"paralysisthroughanalysis".Westernanalytical
thinking(takingaphenomenontopieces)and

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Page4

rationality(reckoningtheconsequencesbeforeyouact)haveledtomanyinternationalsuccessesinfieldsoftechnology.Indeed,technologiesdoworkbythesame
universalruleseverywhere,evenonthemoon.Yettheverysuccessoftheuniversalisticphilosophynowthreatenstobecomeahandicapwhenappliedtointeractions
betweenhumanbeingsfromdifferentcultures.
Manisaspecialpieceoftechnologyandtheresultsofourstudies,extensivelydiscussedinthisbook,indicatethatthesocialworldoftheinternationalorganisationhas
manymoredimensionstodealwith.
Somemanagers,especiallyinJapan,recognisethemultidimensionalcharacteroftheircompany.Theyseemabletousealogicappropriatetomachines(analytic
rational)andalogicmoreappropriatetosocialrelations(syntheticintuitive),switchingbetweentheseasneeded.
IntheprocessofinternationalisationtheJapaneseincreasinglytakethefunctioningoflocalsocietyseriously.Theywerenotthefirsttoobserve"WheninRome,doas
theRomansdo",buttheyseemtoactonthismorethanwesternersdo.TheJapanesehavemoreoveraddedanotherdimension:"WheninRome,understandthe
behaviouroftheRomans,andthusbecomeanevenmorecompleteJapanese."
Inoppositiontothiswehaveourwesternapproach,basedonAmericanbusinesseducation,whichtreatsmanagementasaprofessionandregardsemotionally
detachedrationalityas"scientifically"necessary.Thisnumerical,cerebralapproachnotonlydominatesAmericanbusinessschools,butothereconomicandbusiness
faculties.Suchschoolseducatetheirstudentsbygivingthemtherightanswerstothewrongquestions.Statisticalanalysis,forecastingtechniquesandoperational
studiesarenot"wrong".Theyareimportanttechnicalskills.Themistakeistoassumethattechnicalrationalityshouldcharacterisethehumanelementinthe
organisation.Nooneisdenyingtheexistenceofuniversallyapplicablescientificlawswithobjectiveconsequences.Theseare,indeed,culturefree.Butthebeliefthat
humanculturesintheworkplaceshouldresemblethelawsofphysicsandengineeringisacultural,notascientificbelief.Itisauniversalassumptionwhichdoesnot
winuniversalagreement,orevencomeclosetodoingso.
Theinternationalisationofbusinessliferequiresmoreknowledgeofculturalpatterns.Payforperformance,forexample,canworkoutwellinthecultureswherethese
authorshavehadmostoftheirtraining:theUSA,theNetherlandsandtheUK.InmorecommunitariancultureslikeFrance,GermanyandlargepartsofAsiaitmay
notbesosuccessful,atleastnottheAngloSaxonversionofpayforperformance.Employeesmaynotacceptthatindividualmembersofthegroupshouldexcelina
waythatrevealstheshortcomingsofothermembers.Theirdefinitionofan

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"outstandingindividual"isonewhobenefitsthoseclosesttohimorher.Customersinmorecommunitarianculturesalsotakeoffenceatthe"quickbuck"mentalityof
thebestsalespeopletheyprefertobuilduprelationshipscarefully,andmaintainthem.
HowProvenFormulasCanGivetheWrongResult
Whyisitthatmanymanagementprocessesloseeffectivenesswhenculturalbordersarecrossed?
Manymultinationalcompaniesapplyformulasinoverseasareasthatarederivedfrom,andaresuccessfulin,theirownculture.Internationalmanagementconsulting
firmsofAngloSaxonoriginarestillusingsimilarmethodstotheneglectofculturaldifferences.
AnItaliancomputercompanyreceivedadvicefromaprominentinternationalmanagementconsultingfirmtorestructuretoamatrixorganisation.Itdidsoandfailed
thetaskorientedapproachofthematrixstructurechallengedloyaltytothefunctionalboss.InItalybossesarelikefathers,andyoucannothavetwofathers.
Cultureislikegravity:youdonotexperienceituntilyoujumpsixfeetintotheair.Localmanagersmaynotopenlycriticiseacentrallydevelopedappraisalsystemor
rejectthematrixorganisation,especiallyifconfrontationordefinanceisnotculturallyacceptabletothem.Inpractice,though,beneaththesurface,thesilentforcesof
cultureoperateadestructiveprocess,bitingattherootsofcentrallydevelopedmethodswhichdonot"fit"locally.
Theflathierarchy,SBUs,MBO,matrixorganisations,assessmentcentres,TQM,BPRandpayforperformancearesubjectsofdiscussioninnearlyeverybestsellerabout
management,andnotonlyinthewesternworld.Readingthesebooks(forwhichmanagershappilydonothavemuchtimeanymore)createsafeelingofeuphoria."IfI
followthesetencommandments,I'llbethemodernleader,thechangemaster,thechampion."AparticipantfromKoreatoldusinquiteacynicaltonethathe
admiredtheUSAforsolvingoneofthelastmajorproblemsinbusiness,i.e.howtogetridofpeopleintheprocessofreengineering.Thefallacyofthe"onebestway"
isamanagementfallacywhichisdyingaslowdeath.
Althoughtheorganisationaltheorydevelopedinthe1970sintroducedtheenvironmentasanimportantconsideration,itwasunabletokillthedreamoftheonebest
wayoforganising.Itdidnotmeasuretheeffectsofnationalculture,butsystematicallypointedtotheimportanceofthemarket,thetechnologyandtheproductfor
determiningthemosteffectivemethodsofmanagementandorganisation.
Ifyoustudysimilarorganisationsindifferentculturalenvironments,

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theyoftenturnouttoberemarkablyuniformbymajorcriteria:numberoffunctions,levelsofhierarchy,degreeofspecialisationandsoon.Insteadofprovinganything,
thismaymeanlittlemorethanthatuniformityhasbeenimposedonglobaloperations,orthatleadingcompanypracticeshavebeencarefullyimitated,oreventhat
technologieshavetheirownimperatives.Researchofthiskindhasoftenclaimedthatthis"proves"thattheorganisationisculturefree.Butthewrongquestionshave
beenasked.TheissueisnotwhetherahierarchyintheNetherlandshassixlevels,asdoesasimilarcompanyinSingapore,butwhatthehierarchyandthoselevels
meantotheDutchandSingaporeans.Wherethemeaningistotallydifferent,forexample,a"chainofcommand"versus"afamily",thenhumanresourcepolicies
developedtoimplementthefirstwillseriouslymiscommunicateinthelattercontext.
Inthisbookweexaminethevisibleandinvisiblewaysinwhichcultureimpactsonorganisations.Themorefundamentaldifferencesincultureandtheireffectsmaynot
bedirectlymeasurablebyobjectivecriteria,buttheywillcertainlyplayaveryimportantroleinthesuccessofaninternationalorganisation.
CultureIstheWayinWhichPeopleSolveProblems
Ausefulwayofthinkingaboutwhereculturecomesfromisthefollowing:cultureisthewayinwhichagroupofpeoplesolvesproblemsandreconciles
dilemmas.1Theparticularproblemsanddilemmaseachculturemustresolvewillbediscussedbelow.Ifwefocusfirstonwhatcultureis,perhapsitiseasiesttostart
withthisexample.
ImagineyouareonaflighttoSouthAfricaandthepilotsays,"WehavesomeproblemswiththeenginesowewilllandtemporarilyinBurundi"(forthosewhodonot
knowBurundi,itisnexttoRwanda).WhatisyourfirstimpressionofBurundicultureonceyouentertheairportbuilding?Itisnot"whatanicesetofvaluesthese
peoplehave",oreven"don'ttheyhaveaninterestingsharedsystemofmeaning".Itistheconcrete,observablethingslikelanguage,foodordress.Culturecomesin
layers,likeanonion.Tounderstandityouhavetounpeelitlayerbylayer.
Ontheouterlayeraretheproductsofculture,likethesoaringskyscrapersofManhattan,pillarsofprivatepower,withcongestedpublicstreetsbetweenthem.These
areexpressionsofdeepervaluesandnormsinasocietythatarenotdirectlyvisible(valuessuchasupwardmobility,"themorethebetter",status,materialsuccess).
Thelayersofvaluesandnormsaredeeperwithinthe"onion",andaremoredifficulttoidentify.
Butwhydovaluesandnormssinkdownintosemiawarenessand

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unexaminedbeliefs?Whyaretheysodifferentindifferentpartsoftheworld?
Aproblemthatisregularlysolveddisappearsfromconsciousnessandbecomesabasicassumption,anunderlyingpremise.Itisnotuntilyouaretryingtogetridofthe
hiccupsandholdyourbreathforaslongasyoupossiblycanthatyouthinkaboutyourneedforoxygen.Thesebasicassumptionsdefinethemeaningthatagroup
shares.Theyareimplicit.
Takethefollowingdiscussionbetweenamedicaldoctorandapatient.Thepatientasksthedoctor:"What'sthematterwithme?"Thedoctoranswers:"Pneumonia."
"Whatcausespneumonia?""Itiscausedbyavirus.''"Interesting,"saysthepatient,"whatcausesavirus?"Thedoctorshowssignsofsevereirritationandthe
discussiondies.Veryoftenthatisasignthatthequestionerhashitabasicassumption,orinthewordsofCollingwood,2anabsolutepresuppositionaboutlife.Whatis
takenforgranted,unquestionedreality:thisisthecoreoftheonion.
National,CorporateandProfessionalCulture
Culturealsopresentsitselfondifferentlevels.Atthehighestlevelisthecultureofanationalorregionalsociety,theFrenchorwestEuropeanversustheSingaporean
orAsian.Thewayinwhichattitudesareexpressedwithinaspecificorganisationisdescribedasacorporateororganisationalculture.Finally,wecaneventalkabout
thecultureofparticularfunctionswithinorganisations:marketing,researchanddevelopment,personnel.Peoplewithincertainfunctionswilltendtosharecertain
professionalandethicalorientations.Thisbookwillfocusonthefirstlevel,thedifferencesincultureatanationallevel.
Culturaldifferencesdonotonlyexistwithregardtofaraway,exoticcountries.Inthecourseofourresearchithasbecomeincreasinglyclearthatthereareatseveral
levelsasmanydifferencesbetweentheculturesofWestCoastandEastCoastAmericaastherearebetweendifferentnations(althoughforthepurposesofthisbook
mostAmericanreferencesareaveraged).AlltheexamplesshowthatthereisaclearcutculturalborderbetweenthenorthwestEuropean(analysis,logic,systems
andrationality)andtheEuroLatin(morepersonrelated,moreuseofintuitionandsensitivity).ThereareevensignificantdifferencesbetweentheneighbouringDutch
andBelgians.
TheaverageBelgianmanagerhasafamilyideaoftheorganisation.Heorsheexperiencestheorganisationaspaternalisticandhierarchical,and,asinmanyLatin
cultures,fatherdecideshowitshouldbedone.TheBelgianseestheDutchmanagerasoverlydemocratic:whatnonsensethateverybodyconsultseverybody.The
Dutchmanagerthinksinawaymore

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consistentwiththeProtestantethicthantheBelgian,whothinksandactsinamoreCatholicway.MostDutchmanagersdistrustauthority,whileBelgianmanagerstend
torespectit.
NearlyalldiscussionsabouttheunificationofEuropedealwithtechnolegalmatters.Butwhentheseproblemsaresolved,therealproblememerges.Nowheredo
culturesdiffersomuchasinsideEurope.IfyouaregoingtodobusinesswiththeFrench,youwillfirsthavetolearnhowtolunchextensively.Thefounderofthe
EuropeanCommunity,JeanMonnet,oncedeclared:"IfIwereagainfacingthechallengetointegrateEurope,Iwouldprobablystartwithculture."Cultureisthe
contextinwhichthingshappenoutofcontext,evenlegalmatterslacksignificance.
TheBasisofCulturalDifferences
Everyculturedistinguishesitselffromothersbythespecificsolutionsitchoosestocertainproblemswhichrevealthemselvesasdilemmas.Itisconvenienttolookat
theseproblemsunderthreeheadings:thosewhicharisefromourrelationshipswithotherpeoplethosewhichcomefromthepassageoftimeandthosewhichrelateto
theenvironment.Ourresearch,tobedescribedinthefollowingchapters,examinesculturewithinthesethreecategories.Fromthesolutionsdifferentcultureshave
chosentotheseuniversalproblems,wecanfurtheridentifysevenfundamentaldimensionsofculture.Fiveofthesecomefromthefirstcategory.
RelationshipswithPeople
Therearefiveorientationscoveringthewaysinwhichhumanbeingsdealwitheachother.WehavetakenParsons'sfiverelationalorientationsasastartingpoint.3
UniversalismVersusParticularism
Theuniversalistapproachisroughly:"Whatisgoodandrightcanbedefinedandalwaysapplies."Inparticularistculturesfargreaterattentionisgiventotheobligations
ofrelationshipsanduniquecircumstances.Forexample,insteadofassumingthattheonegoodwaymustalwaysbefollowed,theparticularistreasoningisthat
friendshiphasspecialobligationsandhencemaycomefirst.Lessattentionisgiventoabstractsocietalcodes.
IndividualismVersusCommunitarianism
Dopeopleregardthemselvesprimarilyasindividualsorprimarilyaspartofagroup?Furthermore,isitmoreimportanttofocusonindividualssothattheycan

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contributetothecommunityasandiftheywish,orisitmoreimportanttoconsiderthecommunityfirstsincethatissharedbymanyindividuals?
NeutralVersusEmotional
Shouldthenatureofourinteractionsbeobjectiveanddetached,orisexpressingemotionacceptable?InNorthAmericaandnorthwestEuropebusinessrelationships
aretypicallyinstrumentalandallaboutachievingobjectives.Thebrainchecksemotionsbecausethesearebelievedtoconfusetheissues.Theassumptionisthatwe
shouldresembleourmachinesinordertooperatethemmoreefficiently.Butfurthersouthandinmanyothercultures,businessisahumanaffairandthewholegamutof
emotionsdeemedappropriate.Loudlaughter,bangingyourfistonthetableorleavingaconferenceroominangerduringanegotiationisallpartofbusiness.
SpecificVersusDiffuse
Whenthewholepersonisinvolvedinabusinessrelationshipthereisarealandpersonalcontact,insteadofthespecificrelationshipprescribedbyacontract.Inmany
countriesadiffuserelationshipisnotonlypreferred,butnecessarybeforebusinesscanproceed.
InthecaseofoneAmericancompanytryingtowinacontractwithaSouthAmericancustomer(seeChapter7),disregardfortheimportanceoftherelationshiplost
thedeal.TheAmericancompanymadeaslick,wellthoughtoutpresentationwhichitthoughtclearlydemonstrateditssuperiorproductandlowerprice.ItsSwedish
competitortookaweektogettoknowthecustomer.ForfivedaystheSwedesspokeabouteverythingexcepttheproduct.Onthelastdaytheproductwas
introduced.Thoughsomewhatlessattractiveandslightlyhigherpriced,thediffuseinvolvementoftheSwedishcompanygottheorder.TheSwedishcompanyhad
learnedthattodobusinessinparticularcountriesinvolvesmorethanoverwhelmingthecustomerwithtechnicaldetailsandfancyslides.
AchievementVersusAscription
Achievementmeansthatyouarejudgedonwhatyouhaverecentlyaccomplishedandonyourrecord.Ascriptionmeansthatstatusisattributedtoyou,bybirth,
kinship,genderorage,butalsobyyourconnections(whoyouknow)andyoureducationalrecord(agraduateofTokyoUniversityorHauteEcolePolytechnique).
Inanachievementculture,thefirstquestionislikelytobe"Whatdidyoustudy?",whileinamoreascriptiveculturethequestionwillmorelikelybe"Wheredidyou
study?".Onlyifitwasalousyuniversityoronetheydonotrecognisewillascriptivepeopleaskwhatyoustudiedandthatwillbetoenableyoutosaveface.

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AttitudestoTime
Thewayinwhichsocietieslookattimealsodiffers.Insomesocietieswhatsomebodyhasachievedinthepastisnotthatimportant.Itismoreimportanttoknow
whatplantheyhavedevelopedforthefuture.Inothersocietiesyoucanmakemoreofanimpressionwithyourpastaccomplishmentsthanthoseoftoday.Theseare
culturaldifferencesthatgreatlyinfluencecorporateactivities.
Withrespecttotime,theAmericanDreamistheFrenchNightmare.Americansgenerallystartfromzeroandwhatmattersistheirpresentperformanceandtheirplan
to"makeit"inthefuture.ThisisnouveaurichefortheFrench,whoprefertheancienpauvretheyhaveanenormoussenseofthepastandrelativelylessfocuson
thepresentandfuturethanAmericans.
IncertainculturesliketheAmerican,SwedishandDutch,timeisperceivedaspassinginastraightline,asequenceofdisparateevents.Otherculturesthinkoftime
moreasmovinginacircle,thepastandpresenttogetherwithfuturepossibilities.Thismakesconsiderabledifferencestoplanning,strategy,investmentandviewson
homegrowingyourtalent,asopposedtobuyingitin.
AttitudestotheEnvironment
Animportantculturaldifferencecanalsobefoundintheattitudetotheenvironment.Someculturesseethemajorfocusaffectingtheirlivesandtheoriginsofviceand
virtueasresidingwithintheperson.Here,motivationsandvaluesarederivedfromwithin.Otherculturesseetheworldasmorepowerfulthanindividuals.Theysee
natureassomethingtobefearedoremulated.
ThechairmanofSony,MrMorita,explainedhowhecametoconceiveoftheWalkman.Helovesclassicalmusicandwantedtohaveawayoflisteningtoitonhis
waytoworkwithoutbotheringanyfellowcommuters.TheWalkmanwasawayofnotimposingontheoutsideworld,butofbeinginharmonywithit.Contrastthatto
thewaymostwesternersthinkaboutusingthedevice."Icanlistentomusicwithoutbeingdisturbedbyotherpeople."
Anotherobviousexampleistheuseoffacemasksthatarewornoverthenoseandmouth.InTokyoyouseemanypeoplewearingthem,especiallyinwinter.When
youinquirewhy,youaretoldthatwhenpeoplehavecoldsoravirus,theywearthemsotheywillnot"pollute"orinfectotherpeoplebybreathingonthem.InLondon
theyarewornbybikersandotherathleteswhodonotwanttobe"polluted"bytheenvironment.

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StructureoftheBook
Thisbookwilldescribewhythereisno"onebestwayofmanaging",andhowsomeofthedifficultdilemmasofinternationalmanagementcanbemediated.
Throughout,itwillattempttogivereadersmoreinsightintotheirowncultureandhowitdiffersfromothers.
Chapters28willinitiatethereaderintotheworldofculturaldiversityinrelationswithotherpeople.Howdoculturesdifferinthisrespect?Inwhatwaysdothese
differencesimpactonorganisationsandtheconductofinternationalbusiness?Howaretherelationshipsbetweenemployeesaffected?Inwhatdifferentwaysdothey
learnandsolveconflicts?
Chapters9and10discussvariationsinculturalattitudestotimeandtheenvironment,whichhaveverysimilarconsequencesfororganisations.
Chapter11discusseshowgeneralculturalassumptionsaboutman,timeandtheenvironmentaffectthecultureoforganisations.Itidentifiesthefourbroadtypesof
organisationwhichhaveresulted,theirhierarchies,relationships,goalsandstructures.
Chapter12considershowmanagerscanpreparetheorganisationfortheprocessofinternationalisationthroughsomespecificpointsofintervention.Thischapteris
intendedtodealinacreativewaywiththedilemmasofinternationalisation,andtorepeatthemessagethataninternationalfuturedependsonachievingabalance
betweenanytwoextremes.
Whatwillemergeisthatthewholecentralisationversusdecentralisationdebateisreallyafalsedichotomy.Whatisneededistheskill,sensitivityandexperienceto
drawuponallthedecentralisedcapacitiesoftheinternationalorganisation.
Chapter13analysesthedifferentstepswhichpeopleneedtotaketoreconcileculturaldilemmas.Thisisdonethroughacasestudywhichelicitsthevariousproblems
thatoccurwhenprofessionalpeoplefromdifferentculturesmeet.
Chapter14and15discussthediversitywefindwithincultures.ResearchfindingsillustrateethnicdifferenceswithintheUSAandSouthAfricaandtheeffecton
cultureofgender,age,functionalbackgroundandtypeofindustry.Wewillconcludethattheculturesofnationsareanimportantfactorindefiningthemeaningwhich
peopleassigntotheirenvironment,butthatotherfactorsshouldnotbeignored.
Whatthisbookattemptstomakepossibleisthegenuinelyinternationalorganisation,sometimescalledthetransnational,inwhicheachnationalculturecontributesits
ownparticularinsightsandstrengthsto

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thesolutionofworldwideissuesandthecompanyisabletodrawonwhateveritisthatnationsdobest.
References
1Schein,E.,OrganisationalCultureandLeadership,JosseyBass,SanFrancisco,1985.
2Collingwood,R.G.,EssayonMetaphysics,Gateway,Chicago,1974.
3Parsons,T.,TheSocialSystem,FreePress,NewYork,1951.

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2
TheOneBestWayofOrganisingDoesNotExist
Howeverobjectiveanduniformwetrytomakeorganisations,theywillnothavethesamemeaningforindividualsfromdifferentcultures.Themeaningsperceived
dependoncertainculturalpreferences,whichweshalldescribe.Likewisethemeaningthatpeoplegivetotheorganisation,theirconceptofitsstructure,practicesand
policies,isculturallydefined.
Cultureisasharedsystemofmeanings.Itdictateswhatwepayattentionto,howweactandwhatwevalue.CultureorganisessuchvaluesintowhatGeertHofstede1
calls"mentalprogrammes".Thebehaviourofpeoplewithinorganisationsisanenactmentofsuchprogrammes.
Eachofuscarrieswithinusthewayswehavelearntoforganisingourexperiencetomeansomething.Thisapproachisdescribedasphenomenological,meaningthat
thewaypeopleperceivephenomenaaroundthemiscoherent,orderlyandmakessense.
Afellowemployeefromadifferentculturemakesoneinterpretationofthemeaningofanorganisationwhilewemakeourown.Why?Whatcanwelearnfromthis
alternativewayofseeingthings?Canweletthatemployeecontributeinhisorherownway?
Thisapproachtounderstandinganinternationalorganisationisinstrongcontrasttothetraditionalapproach,inwhichmanagersorresearchersdecideunilaterallyhow
theorganisationshouldbedefined.Traditionalstudieshavebeenbasedonthephysical,verifiablecharacteristicsoforganisations,whichareassumedtohavea
commondefinitionforallpeople,everywhere,atalltimes.Insteadofthisapproach,whichlooksforlawsandcommonpropertiesamong"things"observed,weshall
lookforconsistentwaysinwhichculturesstructuretheperceptionsofwhattheyexperience.
WhattheGurusTellUs
ManagementguruslikeFrederickTaylor,HenriFayol,PeterDrucker,MikeHammer,JamesChampyandTomPetershaveonethingincommon:theyallgave(two
aredead)theimpression,consciouslyorunconsciously,that

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therewasonebestwaytomanageandtoorganise.WeshallbeshowinghowveryAmericanandinthecaseofFayol,howFrench,theseassumptionswere.Not
muchhaschangedinthisrespectoverthelastcentury.Isitnotdesirabletobeabletogivemanagementaboxoftoolsthatwillreducethecomplexitiesofmanaging?
Ofcourseitis.Weseethemanagerreachforthetoolstolimitcomplexity,butunfortunatelytheapproachtendstolimitinnovationandinterculturalsuccessaswell.
Studiesinthe1970s,though,didshowthattheeffectivenessofcertainmethodsdoesdependontheenvironmentinwhichweoperate.
Morerecently,mostsocalled"contingency"studieshaveaskedhowthemajorstructuresoftheorganisationvaryinaccordancewithmajorvariablesinthe
environment.Theyhavetendedtoshowthatiftheenvironmentisessentiallysimpleandstablethensteephierarchiessurvive,butifitiscomplexandturbulent,flatter
hierarchiesengageitmoreprofitably.Suchstudieshavemainlybeenconfinedtoonecountry,usuallytheUSA.Bothstructureandenvironmentaremeasuredandthe
resultsexplainthatXamountofenvironmentalturbulenceevokesYamountofhierarchicallevels,leadingtoZamountofperformance.ThefactthatJapanese
corporationsengageinveryturbulentenvironmentswithmuchsteeperhierarchieshasnotasarulebeenaddressed.
Weshouldnotethatthesecontingencystudiesarestillsearchingforonebestwayinspecifiedcircumstances.Theystillbelievetheiruniversalismisscientific,whenin
factitisaculturalpreference."Onebestway"isayearning,notafact.MichelCrozier,theFrenchsociologist,workingin1964,2couldfindnostudiesthatrelated
organisationstotheirsocioculturalenvironments.Ofcoursethosewhosearchforsamenesswillusuallyfinditandifyousticktoexaminingcommonobjectsand
processes,likerefiningoilaccordingtochemicalscience,thenpipeswillbefoundtohavethesamefunctiontheworldover.Iftheprinciplesofchemicalengineering
arethesame,whynotallprinciples?Itseemsaplausibleequation.
TalcottParsons,3anAmericansociologist,hashoweversuggestedthatorganisationshavetoadaptnotsimplytotheenvironmentbutalsototheviewsofparticipating
employees.Ithasonlybeeninrecentyearsthatthisconsiderationofemployeeperceptions,anddifferingcultures,hassurfacedinmanagementliterature.
NeglectofCultureinAction
Takethefollowingmeetingofamanagementteamtryingtointernationaliseacompany'sactivities.ThiscaseisasummaryofaninterviewwithaNorthAmerican
humanresourcemanager,acasehistorywhichwillbe

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referredtothroughoutthebook.Althoughthecaseisreal,thenamesofthecompanyandtheparticipantsarefictitious.
TheMissouriComputationalCompany(MCC)
,foundedin1952,isaverysuccessfulAmericancompany.Itdevelops,producesandsellsmediumsizeandlargecomputers.Thecompanycurrentlyoperatesas
amultinationalinNorthandSouthAmerica,Europe,SouthEastAsia,AustraliaandtheMiddleEast.Salesactivitiesareregionallystructured.ThefactoriesareinSt
LouisandNewark(NJ)themostimportantresearchactivitiestakeplaceinStLouis.
MCC

Production,R&D,personnelandfinancearecoordinatedattheAmericanheadoffice.Businessunitshandletheregionalsalesresponsibilities.Thisdecentralised
structuredoeshavetoobservecertaincentralisedlimitationsregardinglogos,lettertypes,typesofproductsandfinancialcriteria.Standardisationoflabourconditions,
functionclassificationandpersonnelplanningiscoordinatedcentrally,whereashiringisdonebytheregionalbranches.Eachregionalbranchhasitsownpersonnel
andfinancedepartments.Themanagementmeetseverytwoweeks,andthisweekisfocusingonglobalisationissues.
Internationalisation
MrJohnsonpaidextraattentioninthemanagementmeeting.Asvicepresidentofhumanresourcesworldwidehecouldbefacingseriousproblems.Management
recognisesthatthespiritofglobalisationisbecomingmoreactiveeveryday.Notonlydotheclientshavemoreinternationaldemands,butproductionfacilitiesneedto
besetupinmoreandmorecountries.
Thismorninganewlogowasintroducedtosymbolisetheworldwideimageofthecompany.Thenextitemontheagendawasaworldwidemarketingplan.
MrSmith,theCEO,sawachancetobringforwardwhathisMBAtaughthimtobeuniversallyapplicablemanagementtools.Inadditiontoglobalimagesandmarketing,
hesawglobalproduction,financeandhumanresourcesmanagementassupportingtheinternationalbreakthrough.
Johnson'shairstartedtoriseashelistenedtohiscolleague'spresentation."Theorganisationworldwideshouldbeflatter.Anexcellenttechniqueforthiswouldbeto
followtheprojectapproachthathasbeensosuccessfulintheUSA."Johnson'squestionabouttheacceptanceofthisapproachinsouthernEuropeandSouthAmerica
wasbrushedasidewithashortreplyregardingtheextratimethatwouldbeallottedtointroduceitinthesecultures.Thegenerousallocationofsixmonthswouldbe
providedtomakeeventhemostunwillingcultureunderstandandappreciatethebeautyofshorterlinesofcommunication.

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Finally,allofthiswouldbesupportedbyastrongpayforperformancesystemsothatinadditiontomoreeffectivestructures,theemployeeswouldalsobedirected
towardstherightgoals.
Johnson'slasttrytointroduceamore"human"sidetothediscussionconcerningtheimplementationofthetechniquesandpolicyinstrumentswasuseless.Thefinance
manager,MrFinley,expressedtheopinionoftheentiremanagementteam:"Weallknowthatculturaldifferencesaredecreasingwiththeincreasingreachofthe
media.WeshouldbeworldleadersandcreateafutureenvironmentthatisamicrocosmofMissouri."
MrJohnsonfrownedattheprospectofnextweek'sinternationalmeetinginEurope.
MrJohnsonknewfromexperiencetherewouldbetroubleincommunicatingthisstancetoEuropeanhumanresourcemanagers.Hecouldempathisewiththe
Europeans,whileknowingthatcentralmanagementdidnotreallyintendtobearrogantinextendingacentralpolicyworldwide.Whatcouldhedotogetthebest
outcomefromhisnextmeeting?WeshallfollowthisthroughinChapter4.
CultureasaSideDish?
Culturestillseemslikealuxuryitemtomostmanagers,adishontheside.Infact,culturepervadesandradiatesmeaningsintoeveryaspectoftheenterprise.Culture
patternsthewholefieldofbusinessrelationships.TheDutchauthorremembersaconversationhehadwithaDutchexpatriateinSingapore.Hewasverysurprised
whenquestionedaboutthewaysinwhichheaccommodatedtothelocalculturewhenimplementingmanagementandorganisationtechniques.Beforeanswering,he
triedtofindoutwhyheshouldhavebeenaskedsuchastupidquestion."Doyouworkforpersonnelbyanychance?"Thenhetookmeonatourthroughthe
impressiverefinery."Doyoureallythinktheproductswehaveandthetechnologyweuseallowustotakelocalcultureintoconsideration?"
Indeed,itwouldbedifficultforacontinuousprocesscompanytoaccommodatetothewishesofmostSingaporeanstobehomeatnight.Inotherwords,realityseems
toshowusthatvariablessuchasproduct,technologyandmarketsaremuchmoreofadeterminantthancultureis.Inonesensethisconclusioniscorrect.Integrated
technologieshavealogicoftheirownwhichoperatesregardlessofwheretheplantislocated.Culturesdonotcompetewithorrepealtheselaws.Theysimplysupply
thesocialcontextinwhichthetechnologyoperates.Arefineryisindeedarefinerybutthecul

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tureinwhichitislocatedmayseeitasanimperialistplot,apreciouslifeline,thelastchanceforaneconomictakeoff,apropforamedievalpotentateoraweapon
againsttheWest.Italldependsontheculturalcontext.
Itisquitepossiblethatorganisationscanbethesameinsuchobjectivedimensionsasphysicalplant,layoutorproduct,yettotallydifferentinthemeaningswhichthe
surroundinghumanculturesreadintothem.WeonceinterviewedaVenezuelanprocessoperator,showinghimthecompanyorganigramandaskinghimtoindicate
howmanylayershehadaboveandbelowhim.Tooursurpriseheindicatedmorelevelsthantherewereonthechart.Weaskedhimhowhecouldseethese.''This
personnexttome,"heexplained,"isaboveme,becauseheisolder."
Oneoftheexercisesweconductinourworkshopsistoaskparticipantstochoosebetweenthefollowingtwoextremewaystoconceiveofacompany,askingthem
whichtheythinkisusuallytrue,andwhichmostpeopleintheircountrywouldoptfor.
AOnewayistoseeacompanyasasystemdesignedtoperformfunctionsandtasksinanefficientway.Peoplearehiredtoperformthesefunctionswiththehelpofmachinesand
otherequipment.Theyarepaidforthetaskstheyperform.
BAsecondwayistoseeacompanyasagroupofpeopleworkingtogether.Theyhavesocialrelationswithotherpeopleandwiththeorganisation.Thefunctioningisdependent
ontheserelations.

Figure2.1(page18)showsthewiderangeofnationalresponses.OnlyalittleoverathirdofFrench,KoreanorJapanesemanagersseeacompanyasasystemrather
thanasocialgroup,whereastheBritishandAmericansarefairlyevenlydivided,andthereisalargemajorityinfavourofthesysteminRussiaandseveralcountriesof
easternEurope.
Thesedifferinginterpretationsareimportantinfluencesontheinteractionsbetweenindividualsandgroups.Formalstructuresandmanagementtechniquesmayappear
uniform.Indeedtheyimitatehardtechnologiesinordertoachievethis,butjustasplantandequipmenthavedifferentculturalmeanings,sodosocialtechnologies.
AnAlternativeApproach
Allorganisationalinstrumentsandtechniquesarebasedonparadigms(setsofassumptions).Anassumptionoftentakenforgrantedisthatsocial

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Figure2.1
Whichkindofcompanyisnormal?
Percentageofrespondentsoptingforasystemratherthanasocialgroup

realityis"outthere",separatedfromthemanagerorresearcherinthesamewayasthematterofaphysicsexperimentis"outthere".Thephysicsresearcherscangive
thephysicalelementsintheirexperimentsanynametheywant.Deadthingsdonottalkbackanddonotdefinethemselves.
Thehumanworld,however,isquitedifferent.AsAlfredShutz4pointedout,whenweencounterothersocialsystemstheyhavealreadygivennamestothemselves,
decidedhowtheywanttoliveandhowtheworldis

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tobeinterpreted.Wemaylabelthemifwewishbutwecannotexpectthemtounderstandoracceptourdefinitions,unlessthesecorrespondtotheirown.Wecannot
strippeopleoftheircommonsenseconstructsorroutinewaysofseeing.Theycometousaswholesystemsofpatternedmeaningsandunderstandings.Wecanonly
trytounderstand,andtodosomeansstartingwiththewaytheythinkandbuildingfromthere.
Henceorganisationsdonotsimplyreacttotheirenvironmentasashipmighttowaves.Theyactivelyselect,interpret,chooseandcreatetheirenvironments.
Summary
Wecannotunderstandwhyindividualsandorganisationsactastheydowithoutconsideringthemeaningstheyattributetotheirenvironment."Acomplexmarket"is
notanobjectivedescriptionsomuchasaculturalperception.Complextowhom?ToanEthiopianortoanAmerican?Feedbacksessionswherepeopleexploretheir
mistakescanbe"usefulfeedback"accordingtoAmericanmanagementcultureand"enforcedadmissionsoffailure"inaGermanmanagementculture.Oneculturemay
beinspiredbytheverythingthatdepressesanother.
Theorganisationanditsstructuresarethusmorethanobjectiverealitytheycomprisefulfilmentsorfrustrationsofthementalmodelsheldbyrealpeople.
Ratherthantherebeing"onebestwayoforganising"thereareseveralways,someverymuchmoreculturallyappropriateandeffectivethanothers,butallofthem
givinginternationalmanagersadditionalstringstotheirbowiftheyarewillingandabletoclarifythereactionsofforeigncultures.
References
1Hofstede,G.,Culture'sConsequences,Sage,London,1980.
2Crozier,M.,TheBureaucraticPhenomenon,UniversityofChicagoPress,1964.
3Parsons,T.,TheSocialSystem,FreePress,NewYork,1951.
4Schutz,A.,OnPhenomenologyandSocialRelations,UniversityofChicagoPress,1970.

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3
TheMeaningofCulture
Afishonlydiscoversitsneedforwaterwhenitisnolongerinit.Ourowncultureislikewatertoafish.Itsustainsus.Weliveandbreathethroughit.Whatoneculture
mayregardasessential,acertainlevelofmaterialwealthforexample,maynotbesovitaltoothercultures.
TheConceptofCulture
Socialinteraction,ormeaningfulcommunication,presupposescommonwaysofprocessinginformationamongthepeopleinteracting.Thesehaveconsequencesfor
doingbusinessaswellasmanagingacrossculturalboundaries.Themutualdependenceoftheactorsisduetothefactthattogethertheyconstituteaconnectedsystem
ofmeanings:ashareddefinitionofasituationbyagroup.
Howdothesesharedbeliefscomeaboutandwhatistheirinfluenceontheinteractionsbetweenmembersofanorganisation?Anabsoluteconditionformeaningful
interactioninbusinessandmanagementistheexistenceofmutualexpectations.
OnacoldwinternightinAmsterdamtheDutchauthorseessomeoneenteracigarshop.HisBurberrycoatandhornspectaclesrevealhimtobewelloff.Hebuysa
packofcigarettesandtakesaboxofmatches.Hethenvisitsthenewspaperstand,purchasesaDutchnewspaperandquicklywalkstoawindfreecornernearthe
shoppinggallery.IapproachhimandaskifIcansmokeacigarettewithhimandwhetherhewouldmindifIreadthesecondsectionofhispaper.Helooksatme
unbelievinglyandsays,"Ineedthiscornertolightmypaper".Hethrowsmethepackofcigarettesbecausehedoesnotsmoke.WhenIstandback,Iseethathelights
thenewspaperandholdshishandsabovetheflames.Heturnsouttobehomeless,searchingforwarmthandtooshytopurchaseasingleboxofmatcheswithoutthe
cigarettes.
Inthissituationmyexpectationsarenotmetbytheindividualobserved.Myexpectationsaboutthebehaviorofthemansaymoreaboutmyselfthanabouthim.WhatI
expectdependsonwhereIcome

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fromandthemeaningsIgivetowhatIexperience.Expectationsoccuronmanydifferentlevels,fromconcrete,explicitlevelstoimplicitandsubconsciousones.Iam
mislednotonlybythe"meaning"oftheman'sclothingandappearance,butalsoonthesimplelevelofthenewspaperandcigarettes.Whenweobservesuchsymbols
theytriggercertainexpectations.Whentheexpectationsofwhowearecommunicatingwithmeetourown,thereismutualityofmeaning.
Theexistenceofmutualbeliefsisnotthefirstthingthatcomestomindwhenyouthinkaboutculture.Inculturaltrainingworkshopsweoftenstartbyasking
participants:"Whatdoestheconceptofculturemeantoyou?Canyoudifferentiateanumberofcomponents?"In20yearswehaveseldomencounteredtwoormore
groupsorindividualswithidenticalsuggestionsregardingtheconceptofculture.Thisshowstheinclusivenessoftheconcept.Themoredifficultquestionisperhaps:
"Canyounameanythingthatisnotencompassedbytheconceptofculture?"
TheLayersofCulture
TheOuterLayer:
ExplicitProducts
GobacktothetemporaryflightdetourtoBurundifromChapter1.Whatarethefirstthingsyouencounteronaculturallevel?Mostlikelyitisnotthestrange
combinationofnormsandvaluessharedbytheBurundis(whoactuallyconsistofHutusandTutsis,twoverydifferenttribes)thatcatchesyourattentionfirst.Norisit
thesharingofmeaningsandvalueorientations.Anindividual'sfirstexperienceofanewcultureisthelessesoteric,moreconcretefactors.Thislevelconsistsof
explicitculture.
Explicitcultureistheobservablerealityofthelanguage,food,buildings,houses,monuments,agriculture,shrines,markets,fashionsandart.Theyarethesymbolsofa
deeperlevelofculture.Prejudicesmostlystartonthissymbolicandobservablelevel.Weshouldneverforgetthat,asintheBurberrycoatexample,eachopinionwe
voiceregardingexplicitcultureusuallysaysmoreaboutwherewecomefromthanaboutthecommunitywearejudging.
IfweseeagroupofJapanesemanagersbowing,weareobviouslyobservingexplicitcultureasthesheeractofbending.However,ifweasktheJapanese"Whydo
youbow?",aquestiontheymaynotwelcome,wepenetratethenextlayerofculture.
TheMiddleLayer:
NormsandValues
Explicitculturereflectsdeeperlayersofculture,thenormsandvaluesofanindividualgroup.Normsarethemutualsenseagrouphasofwhatis

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Figure3.1
Amodelofculture

"right"and"wrong".Normscandeveloponaformallevelaswrittenlaws,andonaninformallevelassocialcontrol.Values,ontheotherhand,determinethe
definitionof"goodandbad",andarethereforecloselyrelatedtotheidealssharedbyagroup.
Acultureisrelativelystablewhenthenormsreflectthevaluesofthegroup.Whenthisisnotthecase,therewillmostlikelybeadestabilisingtension.IneasternEurope
wehaveseenforyearshowthenormsofCommunismfailedtomatchthevaluesofsociety.Disintegrationisalogicalresult.
Whilethenorms,consciouslyorsubconsciously,giveusafeelingof"thisishowInormallyshouldbehave",valuesgiveusafeelingof"thisishowIaspireordesire
tobehave".Avalueservesasacriteriontodetermineachoicefromexistingalternatives.Itistheconceptanindividualorgrouphasregardingthedesirable.For
instance,inoneculturepeoplemightagreewiththevalue:"Hardworkisessentialtoaprosperoussociety."Yetthebehaviouralnormsanctionedbythegroupmaybe:
"Donotworkharderthantheothermembersofthegroupbecausethenwewouldallbeexpectedtodomoreandwouldendupworseoff.''Herethenormdiffers
fromthevalue.
SomeJapanesemightsaythattheybowbecausetheyliketogreetpeople:thatisavalue.Othermightsaytheydon'tknowwhyexceptthattheydoitbecausethe
othersdoittoo.Thenwearetalkingaboutanorm.
Ittakessharedmeaningsofnormsandvaluesthatarestableandsalientforagroup'sculturaltraditiontobedevelopedandelaborated.
Whyhavedifferentgroupsofpeople,consciouslyorsubconsciously,chosendifferentdefinitionsofgoodorbad,rightorwrong?

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TheCore:
AssumptionsaboutExistence
Toanswerquestionsaboutbasicdifferencesinvaluesbetweenculturesitisnecessarytogobacktothecoreofhumanexistence.
Themostbasicvaluepeoplestriveforissurvival.Historically,andpresently,wehavewitnessedcivilisationsfightingdailywithnature:theDutchwithrisingwaterthe
SwisswithmountainsandavalanchestheCentralAmericansandAfricanswithdroughtsandtheSiberianswithbittercold.
Eachhasorganisedthemselvestofindthewaystodealmosteffectivelywiththeirenvironments,giventheiravailableresources.Suchcontinuousproblemsare
eventuallysolvedautomatically."Culture"comesfromthesamerootastheverb"tocultivate",meaningtotillthesoil:thewaypeopleactuponnature.Theproblemsof
dailylifearesolvedinsuchobviouswaysthatthesolutionsdisappearfromourconsciousness.Iftheydidnotwewouldgocrazy.Imaginehavingtoconcentrateon
yourneedforoxygenevery30seconds.Thesolutionsdisappearfromourawareness,andbecomepartofoursystemofabsoluteassumptions.
Thebestwaytotestifsomethingisabasicassumptioniswhenthequestionprovokesconfusionorirritation.Youmight,forexample,observethatsomeJapanese
bowdeeperthanothers.Again,ifyouaskwhytheydoittheanswermightbethattheydon'tknowbutthattheotherpersondoesittoo(norm)orthattheywantto
showrespectforauthority(value).AtypicalDutchquestionthatmightfollowis:"Whydoyourespectauthority?"ThemostlikelyJapanesereactionwouldbeeither
puzzlementorasmile(whichmightbehidingtheirirritation).Whenyouquestionbasicassumptionsyouareaskingquestionsthathaveneverbeenaskedbefore.It
mightleadtodeeperinsights,butitalsomightprovokeannoyance.TryintheUSAortheNetherlandstoraisethequestionofwhypeopleareequalandyouwillsee
whatwemean.
Groupsofpeopleorganisethemselvesinsuchawaythattheyincreasetheeffectivenessoftheirproblemsolvingprocesses.Becausedifferentgroupsofpeoplehave
developedindifferentgeographicregions,theyhavealsoformeddifferentsetsoflogicalassumptions.
Weseethataspecificorganisationalcultureorfunctionalcultureisnothingmorethanthewayinwhichgroupshaveorganisedthemselvesovertheyearstosolvethe
problemsandchallengespresentedtothem.Changesinaculturehappenbecausepeoplerealisethatcertainoldwaysofdoingthingsdonotworkanymore.Itisnot
difficulttochangeculturewhenpeopleareawarethatthesurvivalofthecommunityisatstake,wheresurvivalisconsidereddesirable.
Fromthisfundamentalrelationshipwiththe(natural)environment

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man,andaftermanthecommunity,takesthecoremeaningoflife.Thisdeepestmeaninghasescapedfromconsciousquestioningandhasbecomeselfevident,
becauseitisaresultofroutineresponsestotheenvironment.Inthissensecultureisanythingbutnature.
CultureDirectsOurActions
Cultureisbeneathawarenessinthesensethatnoonebotherstoverbaliseit,yetitformstherootsofaction.Thismadeoneanthropologistlikenittoaniceberg,with
itslargestimplicitpartbeneaththewater.
Cultureismanmade,confirmedbyothers,conventionalisedandpassedonforyoungerpeopleornewcomerstolearn.Itprovidespeoplewithameaningfulcontextin
whichtomeet,tothinkaboutthemselvesandfacetheouterworld.
InthelanguageofCliffordGeertz,cultureisthemeansbywhichpeople"communicate,perpetuate,anddeveloptheirknowledgeaboutattitudestowardslife.Culture
isthefabricofmeaningintermsofwhichhumanbeingsinterprettheirexperienceandguidetheiraction".1
Overtime,thehabitualinteractionswithincommunitiestakeonfamiliarformsandstructures,whichwewillcalltheorganisationofmeaning.Thesestructuresare
imposeduponthesituationswhichpeopleconfrontandarenotdeterminedbythesituationitself.Forexample,thewinkofaneye.Isitaphysicalreflexfromdustin
theeye?Oraninvitationtoaprospectivedate?Orcoulditbesomeonemakingfunofyoutoothers?Perhapsanervoustick?Thewinkitselfisreal,butitsmeaningis
attributedtoitbyobservers.Theattributedmeaningmayormaynotcoincidewiththeintendedmeaningofthewink.Effectivesocialinteraction,though,dependson
theattributedmeaningandintendedmeaningcoinciding.
Culturescanbedistinguishedfromeachotherbythedifferencesinsharedmeaningstheyexpectandattributetotheirenvironment.Cultureisnota"thing,"asubstance
withaphysicalrealityofitsown.Rather,itismadebypeopleinteracting,andatthesametimedeterminingfurtherinteraction.
Cultureasa"NormalDistribution"
Peoplewithinaculturedonotallhaveidenticalsetsofartifacts,norms,valuesandassumptions.Withineachculturethereisawidespreadofthese.Thisspreaddoes
haveapatternaroundanaverage.So,inasense,thevariationaroundthenormcanbeseenasanormaldistribution.Distinguishingoneculturefromanotherdepends
onthelimitswewantto

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makeoneachsideofthedistribution.
Inprinciple,eachcultureshowsthetotalvariationofitshumancomponents.SowhiletheUSAandFrancehavegreatvariations,therearealsomanysimilarities.The
"average",or"mostpredictable"behaviour,asdepictedbyFigure3.2,willbedifferentforthesetwocountries.

Figure3.2
Cultureasanormaldistribution

Figure3.3
Cultureandstereotyping

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Cultureswhosenormsdiffersignificantlytendtospeakabouteachotherintermsofextremes(Figure3.3).AmericansmightdescribetheFrenchashavingthe
behaviouralcharacteristicsshowninsectionAinthegraph,orthetailofthenormaldistribution.TheFrenchwilluseasimilarcaricature,sectionZ,fortheAmericans.
Thisisbecauseitisdifferencesratherthansamenesswhichwenotice.
Usingextreme,exaggeratedformsofbehaviourisstereotyping.Itis,quiteunderstandably,theresultofregisteringwhatsurprisesus,ratherthanwhatisfamiliar.But
therearedangersindoingthis.First,astereotypeisaverylimitedviewoftheaveragebehaviourinacertainenvironment.Itexaggeratesandcaricaturestheculture
observedand,unintentionally,theobserver.
Second,peopleoftenequatesomethingdifferentwithsomethingwrong."Theirwayisclearlydifferentfromours,soitcannotberight."Finally,stereotypingignoresthe
factthatindividualsinthesameculturedonotnecessarilybehaveaccordingtotheculturalnorm.Individualpersonalitymediatesineachculturalsystem.
CulturesVaryinSolutionstoCommonProblemsandDilemmas
Toexplainvariationsinthemeaningorganisationshaveforpeopleworkinginthem,weneedtoconsidervariationsinmeaningsfordifferentcultures.Ifwecanidentify
andcomparecategoriesofculturethataffectorganisations,thiswillhelpusunderstandtheculturaldifferencesthatmustbemanagedininternationalbusiness.
Ineveryculturealimitednumberofgeneral,universallysharedhumanproblemsneedtobesolved.Oneculturecanbedistinguishedfromanotherbythespecific
solutionitchoosesforthoseproblems.Theanthropologists,F.KluckhohnandF.L.Strodtbeck,2identifyfivecategoriesofproblems,arguingthatallsocietiesare
awareofallpossiblekindsofsolutionbutpreferthemindifferentorders.Henceinanyculturethereisasetof"dominant",orpreferred,valueorientations.Thefive
basicproblemsmankindfaces,accordingtothisscheme,areasfollows:
1Whatistherelationshipoftheindividualtoothers?(relationalorientation)
2Whatisthetemporalfocusofhumanlife?(timeorientation)
3Whatisthemodalityofhumanactivity?(activityorientation)
4Whatisahumanbeing'srelationtonature?(mannatureorientation)
5Whatisthecharacterofinnatehumannature?(humannatureorientation)

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Inshort,KluckhohnandStrodtbeckarguethatmankindisconfrontedwithuniversallysharedproblemsemergingfromrelationshipswithfellowbeings,time,activities
andnature.Oneculturecanbedistinguishedfromanotherbythearrangementofthespecificsolutionsitselectsforeachsetofproblemsituations.Thesolutions
dependonthemeaninggivenbypeopletolifeingeneral,andtotheirfellows,timeandnatureinparticular.
Inourresearchwehavedistinguishedsevendimensionsofculture(seeChapter1),alsobasedonsocieties'differingsolutionstorelationshipswithotherpeople,time
andnature.Thefollowingchapterswillexplainthesedimensionsandhowtheyaffecttheprocessofmanagingacrosscultures.
Insteadofrunningtheriskofgettingstuckbyperceivingculturesasstaticpointsonadualaxismap,webelievethatculturesdancefromonepreferredendtothe
oppositeandback.Inthatwaywedonotriskoneculturalcategoryexcludingitsopposite,ashashappenedinsomanysimilarstudies,ofwhichHofstede'sfive
mutuallyexclusivecategoriesarethebestknown.Rather,webelievethatoneculturalcategoryseeksto"manage"itsoppositeandthatvaluedimensionsselforganize
insystemstogeneratenewmeanings.Culturesarecircleswithpreferredarcsjoinedtogether.Inthisrevisededitionwehavethereforeintroducednewquestionswhich
measuretheextenttowhichmanagersseektointegrateandreconcilevalues.Andwearetestingthehypothesisthatcultureswhichhaveanaturaltendencyto
reconcileseeminglyopposingvalueshaveabetterchanceofbeingsuccessfuleconomicallythancultureswhichlackthatinclination.Allculturesaresimilarinthe
dilemmastheyconfront,yetdifferentinthesolutionstheyfind,whichcreativelytranscendtheopposites.
Summary
Thischapterdescribedhowcommonmeaningsariseandhowtheyarereflectedthroughexplicitsymbols.Wesawthatculturepresentsitselftousinlayers.Theouter
layersaretheproductsandartifactsthatsymbolisethedeeper,morebasicvaluesandassumptionsaboutlife.Thedifferentlayersarenotindependentfromone
another,butarecomplementary.
Thesharedmeaningsthatarethecoreofculturearemanmade,areincorporatedintopeoplewithinaculture,yettranscendthepeopleintheculture.Inotherwords,
thesharedmeaningsofagrouparewithinthemandcausethemtointerpretthingsinparticularways,butarealsoopentobechangedifmoreeffective"solutions"to
problemsofsurvivalaredesiredbythegroup.

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Thesolutionstothreeuniversalproblemsthatmankindfacesdistinguishoneculturefromanother.Theproblemspeople'srelationshiptotime,natureandother
humanbeingsaresharedbymankindtheirsolutionsarenot.Thelatterdependontheculturalbackgroundofthegroupconcerned.Thecategoriesofculturethat
emergefromthesolutionscultureschoosewillbethesubjectofthenextsevenchapters.Theirsignificancetoworkrelatedrelationships,managementinstrumentsand
organisationalstructureswillalsobeexplored.
References
1Geertz,C.,TheInterpretationofCultures,BasicBooks,NewYork,1973.
2Kluckhohn,F.andStrodtbeck,F.L.,VariationsinValueOrientations,GreenwoodPress,Westport,Conn.,1961.

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4
RelationshipsandRules
Peopleeverywhereareconfrontedwiththreesourcesofchallenge.Theyhaverelationshipswithotherpeople,suchasfriends,employees,customersandbosses.
Theymustmanagetimeandageing.Andtheymustsomehowcometotermswiththeexternalnatureoftheworld,beitbenignorthreatening.
Wehavealreadyidentifiedthefivedimensionsofhowwerelatetootherpeople.Itiseasiesttosummarisetheseinabstracttermswhichmayseemratherabstruse.I
listthemagainwithsometranslationsinbrackets.
1Universalismversusparticularism(rulesversusrelationships).
2Communitarianismversusindividualism(thegroupversustheindividual).
3Neutralversusemotional(therangeoffeelingsexpressed).
4Diffuseversusspecific(therangeofinvolvement).
5Achievementversusascription(howstatusisaccorded).
Thesefivevalueorientationsgreatlyinfluenceourwaysofdoingbusinessandmanagingaswellasourresponsesinthefaceofmoraldilemmas.Ourrelativeposition
alongthesedimensionsguidesourbeliefsandactionsthroughlife.Forexample,weallconfrontsituationsinwhichtheestablishedrulesdonotquitefitaparticular
circumstance.Dowedowhatisdeemed"right"ordoweadapttothecircumstancesofthesituation?Ifweareinadifficultmeetingdoweshowhowstronglywefeel
andrisktheconsequences,ordoweshow"admirablerestraint"?Whenweencounteradifficultproblemdowebreakitapartintopiecestounderstandit,ordowe
seeeverythingasrelatedtoeverythingelse?Onwhatgroundsdoweshowrespectforsomeone'sstatusandpower,becausetheyhaveachieveditorbecauseother
circumstances(likeage,educationorlineage)defineit?Thesearealldilemmastowhichcultureshavedifferinganswers.Partofthepurposeofcultureistoprovide
answersandguidebehaviourinotherwisevexatioussituations.
BeforediscussingthefirstdimensionuniversalversusparticularformsofrelatingtootherpeopleletusrejointheperplexedMrJohnsonof

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theMissouriComputationalCompany(MCC)fromChapter2.Heisduetopresideoveraninternationalhumanresourcesmeetinginwhich15nationalrepresentatives
areexpectedtoagreeontheuniformimplementationofapayforperformancesystem.HereissomebackgroundonMCCandasummaryofitsmainpolicydirectives.
Sincethelate1970sMCChasbeenoperatinginmorethan20countries.Asitsforeignsaleshavegrown,topmanagementhasbecomeincreasinglyconcernedabout
internationalcoordination.Overseasgrowth,whilerobust,hasbeenunpredictable.Thecompanyhasthereforedecidedtocoordinatetheprocessesofmeasuring
andrewardingachievementworldwide.Greaterconsistencyinmanagingcountryoperationsisalsoontheagenda.Thereisnotacompletedisregardfornational
differencesthegeneralmanagerworkedinGermanyforfiveyears,andthemarketingmanagerspentsevenyearsintheSingaporeoperation.
IthasbeenagreedtointroduceanumberofpolicyprincipleswhichwillpermeateMCCplantsworldwide.Theyenvisageashareabledefinitionof"Howwedothingsin
MCC"toleteveryoneinMCC,wherevertheyareintheworld,knowwhatthecompanystandsfor.Withinthis,therewillbecentrallycoordinatedpoliciesforhuman
resources,salesandmarketing.
Thiswouldbenefitcustomerssincethey,too,areinternationalisinginmanycases.TheyneedtoknowthatMCCcouldprovidehighlevelsofserviceandeffectivenessto
theirbusinesses,whichincreasinglycrossborders.MCCneedstoachieveconsistent,recognisablestandardsregardlessofthecountryinwhichitisoperating.Thereis
alreadyahistoryofstandardisingpolicies.
TheRewardSystem
Twoyearsago,confrontedwithheavycompetition,thecompanydecidedtouseamoredifferentiatedrewardsystemforthepersonnelwhosoldandservicedmid
sizecomputers.OneofthereasonswastoseewhetherthemotivationoftheAmericansalesforcecouldbeincreased.Inaddition,thecompanybecameawarethat
thebestsalespeopleoftenleftthefirmforbetterpayingcompetitors.Theydecidedonatwoyeartrialwiththe15activesalespeopleintheStLouisarea.
ExperimentwithPaybyPerformance
Theexperimentconsistedofthefollowingelements.
Abonuswasintroducedwhichdependedontheturnoverfigureseachquarterforeachsalesperson:100%oversalaryforthetopsalesperson60%forthesecond
best30%fornumbersthreeandfourandnobonusfortheremainder.

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Thebasicsalaryofallsalespeopleofmidsizecomputerswasdecreasedby10%.
Duringthefirstyearofthetrialperiodtherewerecontinuousdiscussionsamongtheaffectedemployees.Fivesalespeopleleftthecompanybecausetheywere
convincedthesystemtreatedthemunjustly.Totalsalesdidnotincreaseasaresultofallthis.Despitethisdisaster,managementcontinuedtheexperimentbecausethey
believedthatthiskindofchangewasnecessaryandwouldtaketimetobeaccepted.
TheUniversalVersustheParticular
intheUSAisofcourseoperatinginauniversalistculture.Butevenhereauniversalistsolutionhasrunintoparticularistproblems.Thisfirstdimensiondefineshow
wejudgeotherpeople'sbehaviour.Therearetwo"pure"yetalternativetypesofjudgment.Atoneextremeweencounteranobligationtoadheretostandardswhich
areuniversallyagreedtobythecultureinwhichwelive."Donotlie.Donotsteal.Dountoothersasyouwouldhavethemdountoyou"(theGoldenRule),andsoon.
Attheotherextremeweencounterparticularobligationstopeopleweknow."Xismydearfriend,soobviouslyIwouldnotlietohimorstealfromhim.Itwouldhurt
usbothtoshowlessthankindnesstooneanother."
MCC

Universalist,orrulebased,behaviourtendstobeabstract.TrycrossingthestreetwhenthelightisredinaveryrulebasedsocietylikeSwitzerlandorGermany.Even
ifthereisnotraffic,youwillstillbefrownedat.Italsotendstoimplyequalityinthesensethatallpersonsfallingundertheruleshouldbetreatedthesame.But
situationsareorderedbycategories.Forexample,if"others"towhomyou"dounto"arenotcategorisedashuman,therulesmaynotapply.Finally,rulebased
conducthasatendencytoresistexceptionsthatmightweakenthatrule.Thereisafearthatonceyoustarttomakeexceptionsforillegalconductthesystemwill
collapse.
Particularistjudgmentsfocusontheexceptionalnatureofpresentcircumstances.Thispersonisnot"acitizen"butmyfriend,brother,husband,childorpersonof
uniqueimportancetome,withspecialclaimsonmyloveormyhatred.Imustthereforesustain,protectordiscountthispersonnomatterwhattherulessay.
Businesspeoplefrombothsocietieswilltendtothinkeachothercorrupt.Auniversalistwillsayofparticularists,"theycannotbetrustedbecausetheywillalwayshelp
theirfriends"aparticularist,conversely,

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willsayofuniversalists,''youcannottrustthemtheywouldnotevenhelpafriend".
Inpracticeweusebothkindsofjudgment,andinmostsituationsweencountertheyreinforceeachother.Ifafemaleemployeeisharassedintheworkplacewewould
disapproveofthisbecause"harassmentisimmoralandagainstcompanyrules"and/orbecause"itwasaterribleexperienceforJenniferandreallyupsether".The
universalist'schiefobjection,though,willbethebreachofrules"womenshouldnothavetodealwithharassmentintheworkplaceitiswrong".Theparticularistis
likelytobemoredisapprovingofthefactthatitcauseddistresstopoorJennifer.
Problemsarenotalwayssoeasilyagreeduponasthisone.Sometimesrulesofsupposeduniversalapplicationdonotcoveracaseofparticularconcernverywell.
Therearecircumstancesmuchmorecomplexthantherulesappeartohaveenvisaged.ConsiderthefurtheradventuresoftheMissouriComputationalCompany,with
itsheadofficeinStLouisintentonimposinggeneralpolicyguidelinesonemployeesofmanynations.
hasrecentlyacquiredasmallbutsuccessfulSwedishsoftwarecompany.ItsheadfoundeditthreeyearsagowithhissonCarl,andwasjoinedbyhisnewly
graduateddaughterClaraandhisyoungestsonPeter12monthsago.SincetheacquisitionMCChasinjectedconsiderablecapitalandalsogiventhecompanyitsown
computerdistributionandservicinginSweden.Thishasgivenarealboosttothebusiness.
MCC

isnowconvincedthatrewardsforsalespeoplemustreflecttheincreasingcompetitioninthemarket.Ithasdecreedthatatleast30%ofremunerationmust
dependonindividualperformance.AtthebeginningofthisyearCarlmarriedaveryrichwife.Themarriageishappyandthishashadaneffectonhissalesrecord.He
willeasilyearnthe30%bonus,thoughthiswillbesmallinrelationtohistotalincome,supplementedbyhiswife'sandbyhisshareoftheacquisitionpayment.
MCC

Peterhasalesshappymarriageandmuchlessmoney.Hisonlyaveragesalesfigureswillmeanthathisincomewillbereducedwhenhecanillaffordit.Clara,who
marriedwhilestillinschool,hastwochildrenandthisyearlostherhusbandinanaircrash.Thistragiceventcausedhertohaveaweaksalesyear.
AttheinternationalsalesconferencenationalMCCmanagerspresenttheirsalaryandbonusranges.TheheadoftheSwedishcompanybelievesthatperformanceshould
berewardedandthatfavouritismshouldbeavoidedhehasmanynonfamilymembersinhiscompany.Yetheknowsthatunusualcircumstancesinthelivesofhis
childrenhavemadethiscontestanythingbutfair.Therewardswithheldwillhurtmoredeeplythantherewardsbestowedwillmoti

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vate.HetriestoexplainthesituationtotheAmericanHRchiefandtheBritishrepresentative,whobothlookscepticalandtalkaboutexcuses.Heaccedestotheir
demands.
HiscolleaguesfromFrance,Italy,SpainandtheMiddleEast,whoallknowthesituation,stareindisbelief.Theywouldhavebackedhimontheissue.Hisfamilylater
saytheyfeelletdown.Thiswasnotwhattheyjoinedthecompanyfor.
ThisepisodefromourongoingMCCcaseshowsthatuniversalistandparticularistpointsofviewarenotalwayseasytoreconcile.Thecultureyoucomefrom,your
personality,religionandthebondswiththoseconcernedleadyoutofavouroneapproachmorethananother.
UniversalistVersusParticularistOrientationsinDifferentCountries
MuchoftheresearchintothisculturaldimensionhascomefromtheUSA,andisinfluencedbyAmericanculturalpreferences.Theemergingconsensusamongthese
researchers,though,isthatuniversalismisafeatureofmodernisationperse,ofmorecomplexanddevelopedsocieties.Particularism,theyargue,isafeatureof
smaller,largelyruralcommunitiesinwhicheveryoneknowseveryonepersonally.Theimplicationisthatuniversalismandsophisticatedbusinesspracticegotogether
andallnationsmightbebetteroffformorenearlyresemblingtheUSA.
Wedonotacceptthisconclusion.Instead,webelievethatculturaldilemmasneedtobereconciledinaprocessofunderstandingtheadvantagesofeachcultural
preference.Thecreationofwealthandthedevelopmentofindustryshouldbeanevolvingprocessofdiscoveringmoreandbetteruniversalscoveringandsustaining
moreparticularcasesandcircumstances.
Thestorybelow,createdbyStoufferandToby(Americans),1isanotherexerciseusedinourworkshops.Ittakestheformofadilemmawhichmeasuresuniversaland
particularistresponses.
Youareridinginacardrivenbyaclosefriend.Hehitsapedestrian.Youknowhewasgoingatleast35milesperhourinanareaofthecitywherethemaximumallowedspeedis20
milesperhour.Therearenowitnesses.Hislawyersaysthatifyoutestifyunderoaththathewasonlydriving20milesperhouritmaysavehimfromseriousconsequences.
Whatrighthasyourfriendtoexpectyoutoprotecthim?

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1aMyfriendhasadefiniterightasafriendtoexpectmetotestifytothelowerfigure.
1bHehassomerightasafriendtoexpectmetotestifytothelowerfigure.
1cHehasnorightasafriendtoexpectmetotestifytothelowerfigure.
Whatdoyouthinkyouwoulddoinviewoftheobligationsofaswornwitnessandtheobligationtoyourfriend?
1dTestifythathewasgoing20milesanhour.
1eNottestifythathewasgoing20milesanhour.

Figure4.1showstheresultofputtingthesequestionstoavarietyofnationalities.Thepercentagerepresentsthosewhoansweredthatthefriendhadnorightorsome
rightandwouldthennottestify(corb+e).NorthAmericansandmostnorthEuropeansemergeasalmosttotallyuniversalistintheirapproachtotheproblem.The
proportionfallstounder75%fortheFrenchandJapanese,whileinVenezuelatwothirdsofrespondentswouldlietothepolicetoprotecttheirfriend.
Timeandagaininourworkshops,theuniversalists'responseisthat,astheseriousnessoftheaccidentincreases,theobligationtohelptheirfrienddecreases.They
seemtobesayingtothemselves,"thelawwasbrokenandtheseriousconditionofthepedestrianunderlinestheimportanceofupholdingthelaw".Thissuggeststhat
universalismisrarelyusedtotheexclusionofparticularism,ratherthatitformsthefirstprincipleintheprocessofmoralreasoning.Particularconsequencesremindus
oftheneedforuniversallaws.
Particularistcultures,however,arerathermorelikelytosupporttheirfriendasthepedestrian'sinjuriesincrease.Theyseemtoreason,"myfriendneedsmyhelpmore
thanevernowthatheisinserioustroublewiththelaw".Universalistswouldregardsuchanattitudeascorrupt.Whatifweallstartedtolieonbehalfofthosecloseto
us?Societywouldfallapart.Thereisindeedsomethinginthisargument.Butparticularism,whichisbasedonalogicoftheheartandhumanfriendship,mayalsobe
thechiefreasonthatcitizenswouldnotbreaklawsinthefirstplace.Doyouloveyourchildrenorpresentthemwithacopyofthecivilcode?Andwhatifthelaw
becomesaweaponinthehandsofacorruptelite?Youcanchoosewhatyoucallcorruption.
Inaworkshopweweregivingsometimeagowepresentedthisdilemma.TherewasoneBritishwoman,Fiona,amongthegroupofFrenchparticipants.Fionastarted
thediscussionofthedilemmabyask

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Figure4.1
Thecarandthepedestrian
Percentageofrespondentsoptingforauniversalistsystemratherthanaparticularsocialgroup
(answerscorb+e)

ingabouttheconditionofthepedestrian.Withoutthatinformation,shesaid,itwouldbeimpossibletoanswerthequestion.Whenthegroupaskedherwhythis
informationwassoindispensable,Dominique,anemployeeofaFrenchairline,interjected:"Naturallyitisbecauseifthepedestrianisveryseriouslyinjuredoreven
dead,thenmyfriendhastheabsoluterighttoexpectmysupport.Otherwise,Iwouldnotbesosure."Fiona,slightlyirritatedbutstilllaughing,said:"That'samazing.
Formeitisabsolutelytheotherwayaround."
Thisillustrationshowsthatwe"anchor"ourresponseinoneofthetwoprinciples.Allnationsmightagreethatuniversalsandparticularsshouldideallyberesolved,that
is,thatallexceptionalcasesbejudgedbymorehumanerules.Whatdiffersaretheirstartingpoints.
AsFigure4.1shows,universalistsaremorecommoninProtestantcultures,wherethecongregationrelatestoGodbyobediencetoHiswrittenlaws.Thereareno
humanintermediariesbetweenGodandHisadher

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ents,noonewiththediscretiontohearparticularconfessions,forgivesinsormakespecialallowances.PredominantlyCatholicculturesretainedthesefeaturesof
religion,whicharemorerelationalandparticularist.Peoplecanbreakcommandmentsandstillfindcompassionfortheiruniquecircumstances.GodfortheCatholicsis
likethem,moreoverHewillprobablyunderstandthatyouwerelyingforyourfriend,particularlyonewhohadthebadlucktohavethestupidpedestriancrossingin
frontofhisorhercar.
Countrieswithstronglyuniversalistculturestrytousethecourtstomediateconflicts.ArecentlyreleasedAmericanbookonautomobileinsuranceiscalledHitMeI
NeedtheMoney.IndeedtheUSA,creditedwithbeingthemostlitigioussocietyonearth,hasconsiderablymorelawyersperheadofpopulationthanrelatively
particularistJapan.Themoreuniversalthecountry,thegreatertheneedforaninstitutiontoprotectthetruth.Thereisalsoincidentallyastrongcorrelationbetween
universalismandexpenditureperheadonpetfood.ThisisnotthesameaspetownershipparticularistFrancehasmoredogsthanuniversalistGermany,butFrench
dogsareintegratedintothefamilyandeatleftovers.Ithasnothingtodowithwhatlawyerseat,eitherthereasonisthelackoftrustinhumanityinauniversalist
society.Dogs,likelawyers,aretheinstitutionneededforprotection,andoneofthewaysmistrustinpeoplecanbecombatted.
However,countriesmaybemoreorlessuniversalistdependingonwhattherulesareabout.FrenchandItalianmanagers,whowereparticularistonthetraffic
accident,believethatwhenwritingonasubjectasimportantasfoodyouhaveauniversalobligationtotruth.Considerthefollowingscenario,describedbyStouffer
andToby.
Youareanewspaperjournalistwhowritesaweeklyreviewofnewrestaurants.Aclosefriendofyourshassunkallhersavingsinanewrestaurant.Youhaveeatenthereandyou
reallythinktherestaurantisnogood.
Whatrightdoesyourfriendhavetoexpectyoutogoeasyonherrestaurantinyourreview?
1aShehasadefiniterightasafriendtoexpectmetogoeasyonherrestaurantinmyreview.
1bShehassomerightasafriendtoexpectmetodothisforher.
1cShehasnorightasafriendtoexpectmetodothisforher.

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Figure4.2
Thebadrestaurant
Percentageofrespondentswhowouldnotwriteafalserevieworgivenorightto
thefriendtoexpecttobehelped(answerscorb+e)
Wouldyougoeasyonherrestaurantinyourreviewgivenyourobligationstoyourreadersandyourobligationtoyourfriend?
1dYes.
1eNo.

Inthissecondexample,auniversalist'sviewisthatasajournalistyouarewritingforeveryone,theuniverseofreaders,notforyourfriend.Yourobligationistobe
"truthfulandunbiased".Insomecultures,then,itseemsmoreimportanttouniversalisegoodtastethanlegalprocedure.Forthemitiseasiertoleavethepedestrianin
troublethantojudgethequalityoffoodwrongly.(SeeFigure4.2.)
Athirddilemmaweusetoexplorethisdimensionhastodowiththeruleofconfidentialityconcerningthesecretdeliberationsofabusiness.

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Youareadoctorforaninsurancecompany.Youexamineaclosefriendwhoneedsmoreinsurance.Youfindheisinprettygoodshape,butyouaredoubtfulononeortwominor
pointswhicharedifficulttodiagnose.
Whatrightdoesyourfriendhavetoexpectyoutotonedownyourdoubtsinhisfavour?
1aMyfriendhasadefiniterightasafriendtoexpectmetotonedownmydoubtsinhisfavour.
1bHehassomerightasafriendtoexpectmetonedownmydoubtsinhisfavour.
1cHehasnorightasafriendtoexpectmetotonedownmydoubtsinhisfavour.
Wouldyouhelpyourfriendinviewoftheobligationsyoufeeltowardsyourinsurancecompanyandyourfriend?
1dYes.
1eNo.

Therearesomeinterestingdifferencesherebetweenthescoresonthisdilemmaandtheprevioustwo.TheJapaneseandIndonesians,especially,jumpfromthe
situationalethicstheyshowedpreviouslytoastronglyuniversalisticstanceoncorporateconfidentiality.Quitepossiblythisoccursbecausethesituationisbroaderthan
aparticularfriendatstakehereisloyaltytoagrouporcorporationversusloyaltytoanindividualoutsidethatgroup.
Thisdilemmamayalsobepresentingissuesofcommunitarianismversusindividualism,tobeconsideredinChapter5.Asthesedimensionsarerelatedaswellas
relational,wemustbecarefulininterpretingthemeaningdifferentnationalgroupsgivethem.
UniversalismVersusParticularisminInternationalBusiness
Whencompaniesgoglobalthereisanalmostinevitablemovetowardsuniversalistwaysofthinking.Afterall,productsandservicesarebeingofferedtoawiderand
wideruniverseofpeople.Theirwillingnesstobuyis"proof"ofauniversalappeal.Itfollowsthatthewaysofproducingtheproduct,managingthosewhomakeitand
distributingittocustomersshouldalsobeuniversalised.Letusconsiderthefollowingexamplesofsomeoftheareaswheretheuniversalistversusparticularistdilemma
showsup:

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Figure4.3
Thedoctorandtheinsurancecompany
Percentageofrespondentswhowouldnottonedowntheirdoubtsinfavouroftheirfriend
(answerscorb+e)

thecontract
timingabusinesstrip
theroleofheadoffice
jobevaluationsandrewards.
TheContract
Weightycontractsareawayoflifeinuniversalistcultures.Acontractservestorecordanagreementonprincipleandcodifieswhattherespectivepartieshave
promisedtodo.Italsoimpliesconsenttotheagreementandprovidesrecourseifthepartiesdonotkeeptotheirsideofthedeal.Introducinglawyersintotheprocess
ofnegotiationputsthepartiesonnoticethatanybreachcouldbecostlyandthatpromisesmadeinitiallymustbekept,eveniftheseproveinconvenient.
Howmightalegalcontractbeperceivedbyamoreparticularistbusi

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nesspartner?Thereisanotherreasonwhypeopletendtokeeptheirpromises.Theyhaveapersonalrelationshipwiththeircolleague,whomtheyholdinparticular
regard.Ifyouintroducecontractswithstrictrequirementsandpenaltyclauses,theimpliedmessageisthatonepartywouldcheattheotherifnotlegallyrestrainedfrom
doingso.Thosewhofeeltheyarenottrustedmayaccordinglybehaveinuntrustworthyways.Alternativelytheymayterminatetheirrelationshipwithauniversalist
businesspartnerbecausethatpartner'sprecautionsoffendthemandthecontracttermsaretoorigidtoallowagoodworkingrelationshiptoevolve.
Oneseriouspitfallforuniversalistculturesindoingbusinesswithmoreparticularistonesisthattheimportanceoftherelationshipisoftenignored.Thecontractwillbe
seenasdefinitivebytheuniversalist,butonlyasaroughguidelineorapproximationbytheparticularist.Thelatterwillwanttomakethecontractasvagueaspossible
andmayobjecttoclausesthattiethemdown.Thisisnotnecessarilyasignofimpendingsubterfuge,butapreferenceformutualaccommodation.Giventheriseof
Japaneseeconomicpower,theautomaticsuperiorityoftheuniversalistpositioncannolongerbeassumed.Goodcustomerrelationshipsandgoodemployee
relationshipsmayinvolvedoingmorethanthecontractrequires.Moreover,relationshipshaveaflexibilityanddurabilitywhichcontractsoftenlack.Asian,Araband
Latinbusinesspeoplemayexpectcontractstobequalifiedwherecircumstanceshavechanged.
InatenyearcontractbetweenaCanadianballbearingproducerandanArabicmachinemanufacturer,aminimumannualquantityofballbearingswasagreedupon.
AfteraboutsixyearstheordersfromtheMiddleEaststoppedcomingin.TheCanadians'firstreactionwas:"Thisisillegal."
Avisittothecustomeronlyincreasedtheirconfusion.ThecontracthadapparentlybeencancelledunilaterallybytheArabsbecausetheCanadiancontractsignerhad
leftthecompany.ThesocalleduniversallyapplicablelawwasnotconsideredrelevantanymoreintheeyesoftheArabs.WhatcouldtheCanadianssayagainstthis
logic,especiallywhentheydiscoveredthattheballbearingswereneverevenused?Itturnedoutthattheproductwaspurchasedsolelyoutoftheparticularloyaltyto
theCanadiancontractsigner,notbecauseofafeltlegalobligation.
TimingaBusinessTrip
AuniversalistbusinesspersonaNorthAmerican,British,Dutch,GermanorScandinavianiswisetotakemuchlongerthanusualwhenvisitingaparticularist
culture.Particularistsgetsuspiciouswhenhurried.Atleasttwicethetimenormallynecessarytoestablishacontractualagreementisnecessarytoforgewhathastobe
acloserrelationship.Itisimpor

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tanttocreateasoundrelationalandtrustworthybasisthatequatesthequalityoftheproductwiththequalityofthepersonalrelationship.RollsRoycerecentlygave
ToyotaadeadlinetomakeanacquisitionofferandToyotapromptlywithdrew.SomethingsimilarhappenedinnegotiationsbetweenSamsungandFokker,whenafter
aDutchdeadlineSamsungpulledout.Thisprocesstakesaconsiderableamountoftime,butforparticularists,thetimetakentogrowclosetoyourpartnerissavedin
theavoidanceoftroubleinthefuture.Ifyouarenotwillingtotaketimenow,therelationshipisunlikelytosurvivevicissitudes.
TheRoleofHeadOffice
Inthosewesterncountrieswhicharehighinuniversalism,theheadofficetendstoholdthekeystoglobalmarketing,globalproductionandglobalhumanresource
management.Ourownexperience,though,isthat,withinmoreparticularistnationalcultures,thewritoftheheadofficefailstoshapelocalwaysofoperating.Different
groupsdeveloptheirownlocalstandardswhichbecomethebasisoftheirsolidarityandresistancetocentralisededicts.Stratifiedboundariesarecreatedbythe
nationalsubsidiarybetweenitselfandheadofficeanddifferentiationisdeliberatelysought.
Particularistgroupsseekgratificationthroughrelationships,especiallyrelationshipstotheleader.Generally,themoreparticularist,thegreaterthecommitmentbetween
employerandemployee.Theemployerintheseculturesstrivestoprovideabroadarrayofsatisfactionstoemployees:security,money,socialstanding,goodwilland
socioemotionalsupport.Relationshipsaretypicallycloseandlonglasting.Jobturnoverislowandcommitmentstothelabourforcelongterm.Thelocalchiefwishes
allthistoredoundtohisorherowncredit,notthatoftheforeignowner.ResearchdoneinanAmericanbankwithbranchesinMexicofoundMexicanstafftobefar
moreparticularist,withatendencytodistancethemselvesasfaraspossiblefromheadofficeintheUSAinordertominimiseuniversalistpressures.2
Whatfrequentlyoccursisthatforeignbasedsubsidiarieswillpretendtocomplywithheadofficedirectives,whichleadstoakindofritualistic"corporateraindance".
Theywillgothroughthemotionssolongastheyareunderscrutiny,buttheydonotbelievethatrainwillresult.Assoonastheattentionofheadofficeisdivertedto
othermatters,normallifeproceeds.
JobEvaluationsandRewards
Headofficepoliciesinthehumanresourceareaoftenlaydownsystemsthatallexpatriatemanagersarerequiredtoapplylocally.Thelogicofthisuniversalsystem
thatalljobsshouldbedescribed,allcandidatesshould

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havetheirqualificationscomparedwiththesedescriptionsandalljoboccupantsshouldhavetheirperformanceevaluatedagainstwhattheircontractsspecifiedthey
woulddoissurely''beyondculture".Itseemsademonstrablyfairanduniversalwayofmanaging.Thisgeneralsystemsprangupinthepostwaryearswhen
companies,especiallyAmericanmultinationals,sawveryrapidgrowth.ThousandsofemployeeswithintheUSAneededfairmethodsofappraisalandpromotionand
beforelongthisspreadtotherestofthedevelopedworld.Labourunionsoftengavetheirsupporttothesemethods,seeingthemasprotectionfromarbitrarydiscipline
orantiunionactivity.Aworkercouldonlybefiredfordemonstrablefailuretodoadefinedpieceofwork.Insuchregulationstherewas,indeed,protectionformany
employees.Managershadtobehaveconsistently.Theycouldnottakeharshstepsinoneinstanceandbelenientinanother.
AsystemdesignedbyColonelHayoftheAmericanarmy,calledtheHAYjobevaluationsystem,isnowwidelyusedinbusinessestoevaluatewhatbasesalariesshould
befortheperformanceofvariousfunctions.Eachfunctionandjobwithinitisscoredwiththehelpoftheemployee,hisorherdirectsuperiorandapanelwhich
includespeopledoingsimilarjobselsewhere.Thishelpstomaintaininternalconsistencyandfacilitatestransfersbetweendifferentsubsidiariesthroughoutacompany's
networkwithoutchangesinsalaryortraining.Minorconcessionsareusuallymadetolocalconditionsbywayofacostoflivingallowance,butotherwiseuniformityis
maintained.Allthissoundshighlyplausible.Allsuchproceduresmayappeartobeworkingwiththepaperworkdulycompleted.Butwhatinfacthappensinmore
particularistsocieties?
Thefollowingincidentoccurredinamultinationaloilcompany.DuringapresentationtoagroupofVenezuelanmanagers,representativesfromheadofficewere
explainingnewdevelopmentsintheHAYfunctionassessmentsystemforR&Dfunctions.Theyexplainedthatthefunctionwouldbelessclearlyseparatedfromthe
functionholder,andthattherewouldnowbe"benchmarks"determiningthelevelofthefunction.TheVenezuelansshowedtheproformaresponsebyconcludingthe
presentationwithaloudroundofapplause.
Afteragoodlunchandathirdglassofwine,afewoftheVenezuelanmanagersbecamequitetalkative.Theyaskedwhetherthevisitinggroupwouldbeinterestedin
hearingabouttheVenezuelanwayofassessingfunctionsinthelaboratory."Wouldyouliketohearwhatwesaywedoorwhatwereallydo?"theyasked.Already
awareofwhattheir"partyline"was,theheadofficerepresentativesaskedforwhatreallywenton.
Realityturnedouttobemuchsimplerthanthecomplexsystem.Each

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year,theyexplained,thesixpersonmanagementteamgottogetheraftertheassessmentround.Inthemeetingthisgroupdecidedonthemostappropriatecandidates
forpromotion.TheemployeesselectedwerethenrushedtotheHRdepartmentinordertosetupthefunctiondescriptionrequiredbyheadoffice.HRhadalreadybeen
informedofwhatthescorewastobefortheparticularfunctions.
Thisisaninterestingexampleofreversecausality.Insteadofthejobdescriptionandevaluation"choosing"thepersonthatbestfilledit,thepersonwasfirstinformally
andintuitivelychosenandthenwrotetheirowndescriptionandevaluation.
Thisbegsthequestionofwhetheraprocessinwhichuniversalsguideparticularsisnecessarilybetterthanaprocessinwhichparticularpeopleguideandchoosetheir
universals.AsthelocalVenezuelanbossputit:"Whodecidesonthepromotionofmysubordinates,ColonelHayorme?"Thesamekindofquestionandcircularity
willarisewhenweconsiderperformanceandachievementinChapter8.
ReconcilingUniversalismandParticularism
Inallthesevenculturaldichotomieswehaveidentified,ofwhichuniversalismversusparticularismisthefirst,thetwoextremescanalwaysinasensebefoundinthe
sameperson.Thetwohornsofthedilemmaareveryclosetoeachother,asitiseasytorealiseif,asauniversalist,yousubstituteyourfatherordaughterforthefriend
whoisdrivingthecar.Infruitfulcrossculturalencountersbothsidesavoidpathologicalexcesses.Figure4.4,whosemethodologyisexplainedinChapter13,
illustratesthis.
Thisfigureshowsthebeginningsofaviciouscircle.Ifyoufollowthelogicoftheflow,youseethattheuniversalistapproachatbesthelpsustoavoidthepathologies
ofparticularismtakentoofarandtheparticularistpositionneedstobetakentoavoidthepathologiesofuniversalismtakentoofar.Infact,theuniversalistpositionis
encouragingoppositionfromtheparticularistposition.
Whenthetwoareworkingeffectivelytogetherwetalkaboutavirtuouscircle.Herecrossculturalencounterscansynergiseandcomeoutonalevelmuchhigherthan
anyoftheculturescouldachieveontheirown.
Inonecasetheresolutionbroughtacompanytoahigherlevel.AgroupofEuropeanmicroprocessorsalespeoplewerecomplainingthattheylostalargepartoftheir
potentialmarketbecauseAmericanheadquarterscouldnotproducetheadaptationswhichdifferentEuropeanclientswererequesting.WheninterviewingtheHQin
California,theAmericanssaidthattheycouldn'tunderstandwhytheirEuropeancol

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Figure4.4
Reconcilinguniversalismandparticularism

leaguescouldnotgraspthelossofeconomiesofscaleandthegrossundercapacitywhichtheirchipsfacilitiesexperienced.Itisobviouslynotenoughsimplytomap
theproblematicnatureofadilemmaastwohorns,oneopposingtheother,asinFigure4.5.
Whenapproachingthisdilemmabetweenthetwoextremes,wemayseekacompromise.However,acompromiseisfrequentlyworsethanjustchoosingbetweenone
ofthetwohorns.Itcouldmean,forexample,goingfortwochipsinsteadofoneuniversalchip.Bydoingthisyouwouldlosebotheconomiesofscaleandmostof
yourclients.Thebestapproachistoframethedilemmasastwoaxes,XandY,andthentrytofinda10/10solution.Thismeansthatthedrivefortheuniversalchip
needstobeconnectedinsomewaytotheprocessoffulfillingtheparticularneedinEurope.
InourworkshoptheAmericansproposedtoinvitetheR&Dpeoplefromsomeoftheirclientstocodevelopthenext(universal)chip.TheEuropeans,inturn,thoughtit
wouldbepreferrabletogetAmericanR&DpeopleovertoworkwithlocalR&DpeopleinEurope.Theprinciplewasthesame,butthestartingpointwasdifferent.The
Americanspreferredtostartfromauniversalpositionandhavesomeinputfromtheparticularneedsoftheclient.TheEuropeansfeltmoreathomewithfirsttesting
the

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Figure4.5
Aviciouscircle

valueoftheirparticularneedbysomeuniversalCalifornianrules.Butbothwereaimingforthecreationofaunique,particular,customisedmicroprocessorthatmight
leadtoarenewedspateof"universalsales".
TheCaseofthePharmaceuticalJointVenture
MrGeddyTeok,anAmericanChinese(secondgeneration)employeeofalargeNewJerseypharmaceuticalfirm,wasbasedinTokyo,Japan.Hismainaimwasto
getamajorjointventuregoingwithoneofthelargestJapanesepharmaceuticalmanufacturers.Afterfouryearsofnegotiatingthesuprememomenthadcomefor
signingcontracts.ObviouslythelawyersfromHQinNewJerseywerewellpreparedandsentthecontracttoGeddyoneweekbeforethe"ceremony".
AfterfouryearsofJapaneseexperience,GeddywasshockedwhenhereceivedthedocumentfromtheUSA.Hetoldus:"Icouldnotevencountthenumberof
pages.Therewerejusttoomany.ButIrememberthenumberofinchesitmeasuredwhenlayingitonthetable.IwouldguessthatwitheveryinchoneoftheJapanese
wouldleavetheroomindespair.Ihopetheywillcomewithagroupoften.ThenatleastIwillkeeponepersontotalkto.TheJapanesewillsigncontracts,butyou
shouldnottakeittoofar."
GeddyTeokdecidedtocallHQandaskforsomehelp.Thelegaldepartmentsaidthattherelationshipwassocomplexthatthecontractneededtocovermany
possibleinstances.Moreover,aconsultancyfirmthatadvisedthemregularlysaidthatAsiansingeneralandJapaneseinparticularhadareputation

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ofbeingquitelooseindefiningwhatwasdevelopedbythemandwhatcamefromtheUSA:"Webetterhavesomepainnowandbeclearinthetermsofour
relationship,thantorunintoproblemslaterbecauseofmiscommunication.Iftheysignitatleasttheyshowtheyareserious."
Geddywasindespair,butheonlyhadadaytodecidewhattodo.Themeetingwastomorrow.ShouldheperhapscalltheJapaneseCEO,withwhomhehadbuiltup
quitearelationship?Orshouldhejustgoforit?Geddyframedhisdilemmaquiteclearlytous:"WhateverIwoulddo,itwouldhurtmycarreer.IfIinsistonthe
Japanesepartnerssigningthecontracttheywillseeitasproofofhowlittletrusthasbeendevelopedovertheyearsofnegotiation.Thismightmeanapostponementof
thediscussionsandintheworstcasetheendofthedeal.IfIreducethecontracttoacoupleofpagesandpresentitasa'letterofintent',HQingeneralandevenworse
thewholelegaldepartmentwilljumponme,jeopardizingmycareer."
IfyouwereGeddy,whatwouldyoudo?
Beingawareoftheculturaldynamicsdoesnotreallyhelpyou(don'tforgetthatifyouwerenotawareoftheculturaldifferencesbetweentheJapaneseandthe
Americansyoursituationwouldbeevenworse).ItisnotenoughtosaythattheAmericanstendtobeuniversalistsotheybelievetheJapaneseshouldsignthe
contract.NordoesitsufficetosaythattheJapanesetendtobeparticularistintheirapproach.Transculturaleffectivenessisnotonlymeasuredbythedegreetowhich
youareabletograsptheoppositevalue.Itismeasuredbyyourcompetenceinreconcilingthedilemmas,i.e.thedegreetowhichyouareabletomakebothvalues
worktogether,asinthemicroprocessorcase.
ItmightbeadvisableforGeddytoaskwhatthelogicofthetypicaluniversalistwouldbeinordertohavethecontractsigned.Infact,theAmericans'positionis:"Our
trustintheotherpartyisnotsufficientsoweneedthebackingofabindingcontract."FortheJapanese,whodofrequentlysigncontracts,thelogicwouldbe:"I'llonly
signthecontractifIhavetrustintheotherpartyandtheyseethisasasignofrespectforourrelationship.Wheretherelationshipisgoodenoughwecaneasilychange
thedetailsofthecontractlater,e.g.iftheparticularcircumstanceshavechanged."
WewouldadviseGeddytodothefollowing.First,makecultureapointofdiscussionandtelltheJapanesecounterpartwhatkindofproblemyouarefacing:"Our
Americanheadquartershavesentmea1100pagecontract.ObviouslythisisnormalpracticeintheUS,butitwasnotmeanttoinsultyou."Bydoingthisyouare
sharingthedilemma.TrytoestablishandrespecttheJapaneselogicbyasking:"Whatwouldyoudoinmycase?"
TheactualJapaneseresponsewasanotherquestion:"Howlongwould

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youstayhere,MrTeok?"Geddy'sanswerwashonestandbrilliantatthesametime:"Untilthejobisdone,MrSamamoto.""InthatcaseI'llsignthecontract,''replied
theJapanese.
TestYourself
Inordertomeasurethedegreetowhichindividualsandculturestendtoreconcilewehavedevelopedaseriesofquestionsthatnotonlymeasurethedegreetowhich
youidentifywithoneoftheopposingvalues,butalsoyourtendencytoreconcile.Wearecurrentlytestingthehypothesisthatthecreationofwealthishighlycorrelated
withpeople'scapacitytoreconcile.Inthefirstdimensionthequestionswouldbethefollowing:
SixmonthsaftertheABCminingcompanyhadsignedalongtermcontractwithaforeignbuyertobuybauxitein10annualinstalments,theworldpriceofbauxitecollapsed.
Insteadofpaying$4atonnebelowworldmarketprice,thebuyernowfacedtheprospectofpaying$3above.
ThebuyerfaxedABCtosayitwishedtorenegotiatethecontract.Thefinalwordsofthefaxread:"Youcannotexpectusasyournewpartnertocarryalonethenowruinous
expenseofthesecontractterms."
ABCnegotiatorshadaheateddiscussionaboutthissituation.Severalviewswereoffered:
1Acontractisacontract.Itmeanspreciselywhatitstermssay.Iftheworldpricehadrisenwewouldnotbecrying,norshouldthey.Whatpartnershiparetheytalkingabout?We
hadadeal.Webargained.Wewon.Endofstory.
2Acontractsymbolisestheunderlyingrelationship.Itisanhoneststatementoforiginalintent.Wherecircumstancestransformthemutualspiritofthatcontract,thentermsmust
berenegotiatedtopreservetherelationship.
3Acontactsymbolisestheunderlyingrelationship.ItisanhoneststatementoforiginalintentButsuchrigidtermsaretoobrittletowithstandturbulentenvironments.Onlytacit
formsofmutualityhavetheflexibilitytosurvive.
4Acontractisacontract.Itmeanspreciselywhatthetermssay.Iftheworldpricehadrisenwewouldnotbecrying,norshouldthey.Wewould,however,considerasecond
contractwhosetermswouldhelpoffsettheirlosses.

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Allocate"1"totheapproachyoupreferand"2"toyoursecondchoice.Similarly,indicatewhatyoubelievewouldbefavouredbyyourclosestcolleaguesatwork.

Thistypeofquestionisaskedinordertoassessparticipants'preferenceforafulluniversalistanswer(1)afullparticularistanswer(2)aparticularistanswer
reconciledwiththeuniversalorientation(3)andauniversalistanswerreconciledwiththeparticularrelationship(4).Ourcurrentresearchistryingtofindsupportfor
thehypothesisthatanswers3and4aremoreeffectiveinsuccessfultransculturalrelationships.
FinallyweshouldreturntoMrJohnsonofMCC.
Whatdoyouthinkwillhappenwhenhetriestointroducepayforperformanceworldwide,especiallyinparticularisticcultures?
Doyoubelievethatbonusesof30%,60%and100%oversalary,takenfromthesalariesofotheremployees,willbedeemedfair?
Willhighperformersbeencouragedordiscouragedintheirworkbythosewhosesalarieshavebeencutinordertopaythem?
Willlocalmanagementcooperatewholeheartedlyinthischangeorfindwaysofgettingaroundit?
Doeslocalmanagementhaveitinitspowertoorganisesalesterritoriessothatitcanchoosewhoperformswellforparticularareas?
PracticalTipsforDoingBusinessinUniversalistandParticularistCultures
RecognisingtheDifferences
Universalist

Particularist

1Focusismoreonrulesthan
relationships.

1Focusismoreonrelationshipsthan
onrules.

2Legalcontractsarereadilydrawnup. 2Legalcontractsarereadilymodified.
3Atrustworthypersonistheonewho 3Atrustworthypersonistheonewho
honourstheirwordorcontract.
honourschangingmutualities.
4Thereisonlyonetruthorreality,that 4Thereareseveralperspectiveson
whichhasbeenagreedto.
realityrelativetoeachparticipant.
5Adealisadeal.

5Relationshipsevolve.

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copyright law.

TipsforDoingBusinessWith:
Universalists(forparticularists)

Particularists(foruniversalists)

1Bepreparedfor"rational",
"professional"argumentsand
presentationsthatpushforyour
acquiescence.

1Bepreparedforpersonal
''meandering"or"irrelevancies"that
donotseemtobegoinganywhere.

2Donottakeimpersonal,"getdownto 2Donottakepersonal,"gettoknow
business"attitudesasrude.
you"attitudesassmalltalk.
3Carefullypreparethelegalground
withalawyerifindoubt.

3Carefullyconsiderthepersonal
implicationsofyourlegal
"safeguards".

WhenManagingandBeingManaged
Universalists

Particularists

1Striveforconsistencyanduniform
procedures.

1Buildinformalnetworksandcreate
privateunderstandings.

2Instituteformalwaysofchangingthe 2Trytoalterinformallyaccustomed
waybusinessisconducted.
patternsofactivity.
3Modifythesystemsothatthe
systemwillmodifyyou.

3Modifyrelationswithyou,sothat
youwillmodifythesystem.

4Signalchangespublicly.

4Pullleversprivately.

5Seekfairnessbytreatingalllike
casesinthesameway.

5Seekfairnessbytreatingallcaseson
theirspecialmerits.

References
1Stouffer,S.A.andToby,J.,"RoleConflictandPersonality",AmericanJournalofSociology,LUI5,1951,pages395406.
2Zurcher,L.A.,Meadows,A.andZurcher,S.L.,"ValueOrientations,RoleConflictandAlienationfromWork:aCrossCulturalStudy",AmericanSociological
Review,No.30,1965,pages53948.

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Page50

5
TheGroupandtheIndividual
Theconflictbetweenwhateachofuswantsasanindividual,andtheinterestsofthegroupwebelongto,isthesecondofourfivedimensionscoveringhowpeople
relatetootherpeople.Dowerelatetoothersbydiscoveringwhateachoneofusindividuallywantsandthentryingtonegotiatethedifferences,ordoweplaceahead
ofthissomesharedconceptofthepublicandcollectivegood?
Individualismhasbeendescribed(ParsonsandShils1)as"aprimeorientationtotheself",andcommunitarianismas"aprimeorientationtocommongoalsand
objectives".Justasforourfirstdimension,culturesdotypicallyvaryinputtingoneortheotheroftheseapproachesfirstintheirthinkingprocesses,althoughbothmay
beincludedintheirreasoning.The30,000managerswhohaveansweredthefollowingquestionshowthis,althoughthedivisionhereisnotquitesosharpasforthe
universalversustheparticularexample.
Twopeoplewerediscussingwaysinwhichindividualscouldimprovethequalityoflife.
AOnesaid:"Itisobviousthatifindividualshaveasmuchfreedomaspossibleandthemaximumopportunitytodevelopthemselves,thequalityoftheirlifewillimproveasa
result."
BTheothersaid:"Ifindividualsarecontinuouslytakingcareoftheirfellowhumanbeingsthequalityoflifewillimproveforeveryone,evenifitobstructsindividualfreedomand
individualdevelopment."
Whichofthetwowaysofreasoningdoyouthinkisusuallybest,AorB?

AsFigure5.1shows,thehighestscoringindividualistsaretheRomanians,NigeriansandCanadians,closelyfollowedbytheAmericans,CzechsandDanish,allover
65%infavourofA.SomeofthelowestscoringEuro

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Page51

peansaretheFrenchat41%.Thismaycomeasasurprise.ButrememberthattheFrenchalltakevacationsinAugust,onthesamedate.TheyjointheClub
Mediterraneinordertobetogether.IntheNetherlandswespreadourholidaydates(otherwisewemightmeetoneofourrelations).FortheFrenchthecommunityis
Franceandthefamily.Theybecomeindividualistsinothersocialencounters.ThattheJapanesearenotsignificantlymoregrouporientedintheiranswerstothis
questionthantheFrenchisparticularlyinterestingalsothattheChinesescore,thoughonlyslightly,asmoreindividualistthantheIndians.

Figure5.1
Thequalityoflife
Percentageofrespondentsoptingforindividualfreedom(answera)

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copyright law.

ConceptsofIndividualismandCommunitarianism
Individualismisoftenregardedasthecharacteristicofamodernisingsociety,whilecommunitarianismremindsusofbothmoretraditionalsocietiesandthefailureofthe
Communistexperiment.Weshallsee,though,thatthesuccessofthe"FiveDragons",Japan,HongKong,Singapore,SouthKoreaandTaiwan,raisesserious
questionsaboutboththesuccessandtheinevitabilityofindividualism.
Asinthecaseofuniversalismandparticularism,itisprobablytruertosaythatthesedimensionsarecomplementary,notopposing,preferences.Theycaneachbe
effectivelyreconciledbyanintegrativeprocess,auniversalismthatlearnsitslimitationsfromparticularinstances,forexample,andbytheindividualvoluntarily
addressingtheneedsofthelargergroup.
Internationalmanagementisseriouslyaffectedbyindividualistorcommunitarianpreferenceswithinvariouscountries.Negotiations,decisionmakingandmotivationare
themostcriticalareas.Practicessuchaspromotionforrecognisedachievementsandpayforperformance,forexample,assumethatindividualsseektobe
distinguishedwithinthegroupandthattheircolleaguesapproveofthishappening.Theyalsorestontheassumptionthatthecontributionofanyonemembertoa
commontaskiseasilydistinguishableandthatnoproblemsarisefromsinglinghimorheroutforpraise.Noneofthismay,infact,betrueinmorecommunitarian
cultures.
MostofourreceivedwisdomonthissubjectderivesfromtheindividualisticWest,especiallyfromtheoristswritinginEnglish.Thecapitalletter"I"isoneofthemost
usedcapitalsintheEnglishlanguage.Sotheideathatrisingindividualismisapartoftheriseofcivilisationitselfneedstobetreatedasaculturalbeliefratherthanafact
beyonddispute.Clearly,however,ittookmanycenturiesfortheindividualtoemergefromthesurroundingcommunity.Itisgenerallybelievedthattheessenceofthe
relationshipbetweentheindividualandsociety,atleastintheWest,haschangedconsiderablysincetheRenaissance.Inearliersocietiesindividualsweredefined
primarilyintermsoftheirsurroundingcommunity:thefamily,theclan,thetribe,thecitystateorthefeudalgroup.
IndividualismwasverymuchtotheforeduringtheperiodsofintenseinnovationsuchastheRenaissance,theAgeofExploration,theNetherlands'GoldenAge,the
FrenchEnlightenment,andtheindustrialrevolutionsofBritainandtheUSA.Awholerangeofcausesandeffectshavebeenofferedtoexplainthis.
IndividualismandReligion
ThereisconsiderableevidencethatindividualismandcommunitarianismfollowstheProtestantCatholicreligiousdivide.Calvinistshadcontracts

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Page53

orcovenantswithGodandwithoneanotherforwhichtheywerepersonallyresponsible.EachPuritanworshipperapproachedGodasaseparatebeing,seeking
justificationthroughworks.RomanCatholicshavealwaysapproachedGodasacommunityofthefaithful.ResearchhasfoundthatCatholicsscorehigherongroup
choicesandProtestantssignificantlylower.GeertHofstede'sresearch2confirmsthisasdoourownfindingsthatLatinCatholiccultures,alongwithAsianculturesof
thePacificRim,scoreloweronindividualismthantheProtestantWest,forinstance,theUK,Scandinavia(asarule),theNetherlands,Germany,theUSAand
Canada.
IndividualismandPolitics
Individualismhasbeenadoptedoropposedbydifferentpoliticalfactionsinthehistoryofcountries,andthestrengthofthatethictodaydependsgreatlyonthefortune
ofitsadvocates.IttriumphedintheUSA,butisstillstronglyopposedbytheFrenchCatholictradition.EighteenthcenturyFrance,though,wasexposedtothe
pleasuresofindividualismbyVoltaireandRousseau.Later,inthenineteenthcentury,theFrenchsocialistspointedtothepositiveeffectsofindividualism,while
outlininganewindependencefromtraditionalstructuresandrejectingtheauthorityofreligious,economicandintellectualhierarchies.Frenchbusinessmayhavebeen
affectedforeverbythefactthattheprobusinessFrenchliberalpartywasinpowerwhenFrancefellsuddenlytotheNazisin1940.ThefortunesofBritish
individualism,atleastincommerce,havebeenaffectedbyMrsThatcherandherrevolution.
Doesmodernisationimplyindividualism?
Thatindividualism,orselforientation,isacrucialelementofmodernsocietyhasbeenarguedbyFerdinandTnnies.3Hesuggestedthatinmodernisingweemerge
fromGemeinschaft,afamilybasedintimatesocialcontextinwhichthepersonisnotsharplydifferentiated,intoGesellschaft,aworkplaceofindividualtasksand
separatedresponsibilities.AdamSmith,too,sawthedivisionoflabourasindividualising.4MaxWebersawmanymeaningsinindividualism:dignity,autonomy
(meaning"selfrule"),privacyandtheopportunityforthepersontodevelop.5
Wetakeitforgrantedinmanywesterncountriesthatindividualgeniusescreatebusinesses,inventnewproducts,deservehighsalariesandshapeourfutures.Butdo
they?Howmuchcreditisduetothemandhowmuchduetothepatternsoforganisedemployees?WhyareNobelPrizesforscienceawardedtosingleindividuals
becomingtheexception?Ifacreativegeniuscombinesideas,wheredidsuchideascomefromifnot

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