Managing Cross-cultural Workforce

In Global Business

Dr. Ajay Singh

What is Culture?

What are the Layers of Culture?

On the Surface.
What people say and do How they speak How they dress The food habit and the way they greet How they treat each other Certain dos and don'ts of the culture

Below the Surface

The culture has many underground layers:
- These layers reflect deeply held attitude and beliefs - Hidden, unconscious, common values

Core elements of culture

Nations history, Religion and religious ideals, mythology, heroes, landscape, climate and geography
All the above have impact on the shared values

Cultural Dimensions
Three major studies to examine intercultural dimensions are by:
Hall Hofstede Trompenaars

Hall
Time Space Communication Context

Time
Monochromic
Strict Punctuality Obsessed with deadlines Strict scheduling Discussion on one issue at a time

Polychromic
Not strict punctuality Loose scheduling Overlapping issues in business meetings More time to for interpersonal relations.

Business Cultures
Monocromic Business Cultures: Nordic
and Germanic Europe; North America; Japan.

Moderately Monochromic: Australia / New

Zealand; Russia and most of East-Central Europe; Southern Europe; Singapore, Hong Kong; Taiwan; China; South Korea, S. Africa.

Polychromic Business Cultures: The Arab

World; most of Africa; Latin America; South and South East Asia.

Space (Distance Behaviour)

Inter-personal Distance in global regions: Close: 20 to 35 cms. (8 to 14 inches) The Arab World; The Mediterranean Region; Latin Europe; Latin America
Distant: 40 to 60 cms. (16 to 24 inches) Northern, Central and Eastern Europeans; North America; Large part of Asia.

Communication Context
Explicit Communication:
Explicit message Information in context Direct
(USA and Canada; Australia and New Zealand, Eastern Europe)

Implicit Communication:
Most message in code (East and South-east Asia, Nordic and Germanic Europe)

Hofstedes Model
Examined International difference in work-values under four dimensions:
The Power Distance Dimension Uncertainty Avoidance Dimension Individual Vs. Collectivism Masculinity Vs. Feminity

Individual vs. Collectivism

This dimension describes the relationship that individuals have with others.
In individual society, person is expected to take care of him/herself and immediate family. Identity is based on individual and individual initiative and achievement is appreciated. In collective society identity is based on social system & belongingness to organization is moral.

Individualism Index
Rank 1 2 3 4/5 4/5 6 7 8 9 10/11 10/11 12 13 14 15 16 17 18 County USA Australia Great Britain Canada Netherlands New Zealand Italy Belgium Denmark Sweden France Ireland (Republic of) Norway Switzerland Germany F.R. South Africa Finland Austria Rank 19 20 21 22/23 22/23 24 25 26/27 26/27 28 29 30 31 32 33/35 33/35 33/35 36 County Israel Spain India Japan Argentina Iran Jamaica Brazil Arab countries Turkey Uruguay Greece Philippines Mexico East Africa Yugoslavia Portugal Malaysia Rank 37 38 39/41 39/41 39/41 42 43 44 45 46 47/48 47/48 49 50 51 52 53 Country Hong Kong Chile West Africa Singapore Thailand Salvador South Korea Taiwan Peru Costa Rica Pakistan Indonesia Colombia Venezuela Panama Equador Guatemala

Masculinity vs. Femininity

It shows the degree of preference for achievement, heroism, assertiveness and material success. These values are rated high in masculine and low in feminine cultures. In feminine cultures relationship with people and quality of life are given higher value, and the social value is welfare.

This also reflects roles and values of men and women in society. In masculine cultures sex roles are more sharply differentiated than in faminine cultures.

Masculinity Index
Rank 1 2 3 4/5 4/5 6 7/8 7/8 9/10 9/10 11/12 11/12 13/14 13/14 15 16 17 18/19 Country Japan Austria Venezuela Italy Switzerland Mexico Ireland Jamaica Great Britain Germany FR Philippines Colombia South Africa Equador USA Australia New Zealand Greece Rank 18/19 20/21 20/21 22 23 24 25/26 25/26 27 28 29 30/31 30/31 32/33 32/33 34 35/36 35/36 Country Hong Kong Argentina India Belgium Arab countries Canada Malaysia Pakistan Brazil Singapore Israel Indonesia West Africa Turkey Taiwan Panama Iran France Rank 37/38 37/38 39 40 41 42 43 44 45 46 47 48/49 48/49 50 51 52 53 Country Spain Peru East Africa Salvador South Korea Uruguay Guatemala Thailand Portugal Chile Finland Yugoslavia Costa Rica Denmark Netherlands Norway Sweden

The Power Distance Dimension

Shows the extent to which members of a society accepts that power distance in institutions and organisations.
Shows desirability and not of social inequality.

Is reflected in degree of equality of roles; accessibility of superiors, and structure (centralized or decentralized) of the organization.

Power Distance Index

Rank 1 2/3 2/3 4 5/6 5/6 7 8/9 8/9 10/11 10/11 12 13 14 15/16 15/16 17 18/19 Country Malaysia Guatemala Panama Philippines Mexico Venezuela Arab countries Equador Indonesia India West Africa Yugoslavia Singapore Brazil France Hong Kong Colombia Salvador Rank 18/19 20 21/23 21/23 21/23 24/25 24/25 26 27/28 27/28 29/30 29/30 31 32 33 34 35/36 35/36 Country Turkey Belgium East Africa Peru Thailand Chile Portugal Uruguay Greece South Korea Iran Taiwan Spain Pakistan Japan Italy Argentina South Africa Rank 37 38 39 40 41 42/44 42/44 42/44 45 46 47/48 47/48 49 50 51 52 53 Country Jamaica USA Canada Netherlands Australia Costa Rica Germany FR Great Britain Switzerland Finland Norway Sweden Ireland New Zealand Denmark Israel Austria

Uncertainty Avoidance Dimension

Shows the degree to which individuals feel uncomfortable with uncertainty and ambiguity about the future and in the work relationships. Reflected in feeling of continuous threat, which is reflected in inner need to work hard.
Have difficulty in adjustment to deviant behaviour Emphasis on written rules and regulations.

Uncertainty Avoidance Index

Rank Country 1 2 3 4 5/6 5/6 7 8 9 10/15 10/15 10/15 10/15 10/15 10/15 16/17 16/17
18

Greece Portugal Guatemala Uruguay Belgium Salvador Japan Yugoslavia Peru France Chile Spain Costs Rica Panama Argentina Turkey South Korea
Mexico

Rank 19 20 21/22 21/22 23 24/25 24/25 26 27 28 29 30 31/32 31/32 33 34 35

36

Country Israel Colombia Venezuela Brazil Italy Pakistan Austria Taiwan Arab countries Equador Germany FR Thailand Iran Finland Switzerland West Africa Netherlands
East Africa

Rank 37 38 39/40 39/40 41/42 41/42 43 44 45 46 47/48 47/48 49/50 49/50 51 52 53

Country Australia Norway South Africa New Zealand Indonesia Canada USA Philippines India Malaysia Great Britain Ireland (Republic of) Hong Kong Sweden Denmark Jamaica Singapore

Trompenaars
Universalism Vs. Particularism
Respect of universal laws vs. loyalty towards people

Specific vs. Diffuse relationships

Superficial engagement vs. total engagement

Universalism Vs. Particularism

You are sitting in your friends car, he is driving 80 km/h in an area where he should be respecting the 40km/h speed limitation. Your friend hits a pedestrian.

There is no other witness. His lawyer asks you to testify that your friend was driving at the speed of 40 km/h. He assures that there wont be any serious consequence for you.

What is expected from you?

My friend has a definite right as a friend to expect me to testify to the lowest figure
My friend has some right as a friend to expect me to testify to the lowest figure My friend has no right as a friend to expect me to testify to the lowest figure

Universalism Index
Countries high in Universalism (Respect of Universal Law): USA, Denmark, Austria, Switzerland, Netherlands, UK, Czechoslovakia, Belgium

Countries moderate in Universalism: Italy, Brazil, France, Singapore, Japan, Spain, Maxico, Thailand.
Countries high in Particularism (Loyalty towards people): Hong Kong, China, Indonesia, CIS, Venezuela.

Specific Vs. Defused

Your boss asks you to help him in arrangement of birthday party which he is organizing for his son this weekend. The idea is not very appealing to you. You decline the invitation: your boss has nothing to do with your week-end activities. Your private and
professional lives are two different things.

You go and help your boss in the party because your are totally committed to him/her, on a professional and personal basis.

Specific vs. Defused Relationships

Countries with Specific relationships (Engagement Superficial): Austria, UK, USA, France, Netherlands, Belgium. Countries that are moderate in this dimension: Brazil, Czechoslovakia, Italy, Germany, Argentina, Japan, Mexico, Indonesia, CIS, Thailand.
Countries high in Defused relationships (Engagement total): Hong Kong, Singapore, Switzerland, Spain, China, Venezuela.

Managerial Implications
Motivation Reward Appraisal Negotiations (Verbal and non verbal)

Convergence, Divergence and Crossvergence

Globalisation
Refers to global integration of markets and production processes and industrialisation and economic development Leads to cultural convergence or change in toward behaviours that embrace free-market capitalism

Localisation Refers to business and management practices that adapt to the local culture or environment Incorporate cultural values and new ideas from various nationalities Leads to cultural divergence and benchmarking business approaches that work in different countries
Cultural Foundations of IHRM

Convergence, Divergence and Crossvergence

Glocalisation Refers to crossvergence or the mixing of cultural systems between different countries Belief that as global economy grows, countries will influence each other economically and globally

Cultural Foundations of IHRM

Discussion