Professional Year Program

Australian Business Culture

Cross Cultural Communication

This module addresses the following elements:
 Explain culture and the elements of different cultural types
 Identify and describe various cultural dimensions
 Plot the cultural dimensions of six major migrant groups to Australia
 Discuss the basis of cultural differences and understand how to resolve
them
 Examine the barriers to intercultural communication and recommend
solutions
 Examine an intercultural conflict and find solutions to resolve it

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Cultural Intelligence

Activity 1.1: What is Culture?

Various models can be used to explain the concept of ‘culture’.

The onion model sees layers of culture

which can be peeled away to reveal basic
underlying assumptions.
The outer layers of the onion (visible
elements of culture) would include
language, housing, food and clothing.
Key beliefs would be in the inner layers
but would have an impact on behaviour at
a more superficial level.

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Intercultural interaction can also be seen like an iceberg.
The visible expressions of culture and behaviour are
clearly visible above the water but the largest part, the
invisible expressions or underlying attitudes, beliefs,
values and meanings are hidden below the surface.

Activity 1.2: Visible and invisible

elements of culture
In small groups identify and discuss the visible and the
invisible elements of culture.
Write your ideas down in the table provided:

Visible Elements – directly observable Invisible Elements – not directly

observable
e.g. Food, clothes e.g. Religion

Are the invisible and visible elements of culture related?

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Behaviour is not random, spontaneous or senseless but the direct result of what
people assume, value or believe. It follows that people with different values and beliefs
i.e. from another culture are then going to behave differently from you.
Learning to accept that another person’s behaviour, no matter how different from yours,
probably makes perfect sense to them and members of their own culture, is the first
step to cultural intelligence.

Types of culture
Colleagues of different nationalities
‘Culture’ is not limited to national culture
working together frequently report
as certain factors can play a more
their common professional interests
significant part than national culture in
are so strong that national culture
binding people together.
becomes unimportant.

Activity 1.3: Subsets of Culture?

People have many layers/elements – other than national culture – that make them who
they are.

What other culture groups can you identify?

e.g.. generational cultures like Baby Boomers, Gen X and Gen Y

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National Cultures
To improve cultural intelligence across borders we are interested in national culture.
By national culture we refer to:
 Beliefs, values and customs that are programmed into our minds from birth
 Something that is shared by a group of people both explicitly and implicitly
 Something that older members of the group attempt to pass onto younger
members
 Something that shapes behaviour, thoughts and
perceptions of the world.

National culture is a set of accepted behaviour

patterns, values, assumptions and shared common
experiences. It defines and influences social
structures, decision making practises and
communication styles.

National culture dictates behaviour, etiquette and protocol and forms the fabric of a
society. It is the ‘collective mental programming of the mind’ that distinguishes the
members of one nation from another nation.
All people are social beings that have been taught how to survive in a social world that
involves dealing with core issues. The way in which a group of people resolve issues is
what we call ‘culture.’
How a people group create symbols, heroes and rituals indicate the values of that
culture.

Note: frequently people who are members of a particular culture aren’t able describe
that culture accurately or in a way would be accepted by another person in the same
culture.
This makes understanding and describing culture really difficult and is a key reason why
a framework of categorisation is helpful. See “Cultural Dimensions”
on page 8.

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Putting Culture in its Place
Not all behaviour is cultural.

Universal behaviours Cultural behaviours Personal behaviours

I am like everybody else I am like the people from I am like no-one else at all
my own culture

Universal: ways in which all people in all groups are basically the same. Those things
common to all of us e.g. finding shelter, eating regularly, developing
friendships, etc.
Many universal values transcend culture and are called universal
behaviours.

Cultural: what a group of people have in common with each other and how they are
different from other groups.

Personal: ways in which each person is different from everyone else, including those
in the same group.

Activity 1.4: Universal, Cultural, Personal Beliefs

Read the list of behaviours below. Indicate if the behaviour is Universal (U)
Cultural (C) or Personal (P). If you feel that there is more than one answer, think of
some examples to prove it. Discuss with your partner.

1. Fear of a dangerous animal ________

2. Exchanging red envelopes filled with money ________
3. Men allowing women to enter a room first ________
4. Treating older people with respect ________
5. Tipping the waiter ________
6. Relying on your family members to help you select a marriage partner ________
7. Learning your native language ________

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8. Telling a lie to protect a friend ________
9. Feeling sad at a death in your family ________
10. Wearing white mourning robes for 30 days after a death in your family ________
11. Fasting during Ramadan ________
12. Fleeing the scene of an accident ________
13. Wanting to fall in love before marriage ________
14. Being wary of strangers ________
15. Eating regularly ________
16. Wearing warmer clothing when it gets cold ________
17. Considering snakes to be evil ________
18. Sleeping with a light on ________
19. Feeling sorry after accidently stepping on someone’s foot ________
20. Shaking hands with someone you first meet ________

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Cultural Values and Dimensions
Geert Hofstede
Research
A Dutch psychologist, Dr Geert
Hofstede conducted research
with IBM employees across 50
countries in the 1970’s to better
understand cultural differences.
After a decade of research and thousands of
Cultural Dimensions: A
interviews he produced a model of cultural
framework for cross-cultural
dimensions that has become an
communication that describes
internationally recognised standard.
the effects of a group’s culture
Because his data sets were limited to one on the values of its members
organisation only, he was able to isolate key and how these values relate to
differences and compare national cultures their behaviour.
without the influence of different corporate
cultures. He initially identified four cultural
dimensions. Since then 2 dimensions have
been added. Values: Socially accepted
principles, goals, ideas or
He scored each country using a scale of
standards within a community.
roughly 0 to 100 for each dimension. The
higher the score, the more that dimension is A group’s belief system about
exhibited in society. These ratings are helpful particular attitudes, ways of
to compare differences and similarities in being and behaving.
thinking (values).

Customs: Rituals or other

Cultural Values and Customs traditions that are an outward
sign of the group’s cultural
Hofstede’s key theories are developed around
values.
values.
Countries will score more or less strongly on
the dimensions depending on the intensity and direction of their different values.

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 Activity 1.5: Cultural Dimensions Definitions

Match each cultural dimension with its correct definition:

1. Power Distance Index a) The degree of interdependence a society maintains

(PDI) among its members; the extent to which a people´s
self-image is defined in terms of “I” or “We”.

2. Individualism (IDV) b) The degree to which a society looks towards the

future, values persistence and savings or is
orientated to the present and the past.

3. Uncertainty Avoidance c) The degree to which societies are competitive,

Index (UAI) assertive and materialistic or whether greater
value is placed on relationships and quality of life
issues.

4. Masculinity (MAS) d) The degree to which the members of a culture feel

threatened by ambiguous or unknown situations
and have created beliefs and institutions that try to
avoid these.

5. Long-Term Orientation e) The degree to which people try to control their

(LTO) desires and impulses, based on the way they were
raised. Also involves the degree of acceptance of
either expressing or restraining inner feelings.

6. Indulgence (IND) f) The degree to which less powerful members of

institutions and organisations within a country
expect and accept that power is distributed
unequally.

Q: Where do you think your national culture fits on these dimensions?

(Rating: 0 – very weakly / 100 – completely)
Q: And where might Australia fit in? How would the two countries compare?
Q: How can we use this information when doing business in other cultures?

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 Activity 1.6: Hofstede’s Cultural Dimensions
Your group is employed at a cross cultural consultancy called “CrossWorx”. You have a
new client “Buzz Corporation” who operates across 15 countries worldwide incl.
Australia, India, China, the United Kingdom, Pakistan and Nepal. They’re experiencing
intercultural conflict between employees in different branches.
Your team is tasked with creating a poster campaign for Buzz Corporation management
and staff to raise awareness of the different cultural dimensions. This fun and
informative poster campaign will clearly define one cultural dimension, provide
examples of relevant country comparisons and practical tips on how to apply this
knowledge and improve their “cultural intelligence”. Start your research with Annexure 1
at the end of your LG or look online at: https://www.hofstede-insights.com/country-
comparison/ .
Prepare to present your poster to the class.
Record key learnings from other teams’ presentations in the spaces below:

1. Power Distance Index (PDI)

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2. Individualism (IDV)

3. Uncertainty Avoidance Index (UAI)

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4. Masculinity (MAS)

5. Long-Term Orientation (LTO)

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6. Indulgence (IND)

Other Cultural Concepts

Confucian Dynamism (Career Success) vs Work Life Balance
Societies which value career success (Hong Kong, Singapore, South Korea, Taiwan,
USA) will place an emphasis on material wealth. Societies that value ‘quality of life’
(Australia, Spain, and Scandinavia) will place an emphasis on relationships and
balance. Australians for example have a reputation for valuing leisure time, long service
leave and vacation time which may be seen as lazy by some Asians and Americans.

Harmony vs Control
Societies that value ‘harmony’ hold politeness, respect and emotional restraint as
paramount to the workplace. Harmony must be restored and disagreements overcome
before work can continue. Harmony cultures are also often collective cultures. Control
cultures value individuals who challenge, take charge of their environment and express
their feelings openly. Control cultures are often also individualistic.

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Spiritual vs Secular
In spiritual societies workplace ethics, codes of behaviour and dress are often guided by
religious teaching. Corporate productivity is secondary to this and time off for prayer
and fasting is common and expected. E.g. in the Islamic countries of West Asia. In
secular societies, ethics are guided by a written company code of conduct or
organisational values and religious issues are generally secondary to company
productivity.

Time Orientation: Polychronic vs Monochronic Time

This reflects a preference toward past, present, or future
thinking. It affects how a culture values time and how
they believe they can control it. Many Western nations
believe time is money; time can be “wasted”.
Monochronic for e.g. the United States, Australia or
Northern Europe value turn-taking, queuing, deadlines
and punctuality, sequencing of tasks according to
priority, and doing one thing at a time to be effective and
efficient.
Polychronic for e.g. Latin America, the Arab Middle
East, or sub-Sahara Africa - are more flexible about time
schedules; multiple tasks can be performed at the same
time and maintaining relationships and socialising are considered more important.

High Context vs Low Context Communication

Also called the indirect versus direct communication style.
High context cultures (incl. the Middle East, Asia, Africa, and South America)
emphasise interpersonal relationships and developing trust as an important first step to
any business transaction.  These cultures believe words are less important than
context, which might include the speaker’s tone of voice, facial expression, gestures,
posture—and even the person’s family history and status. 
Low-context cultures (incl. North America, Western Europe and Australia) value logic,
facts, precise language and directness in communication. Solving a problem means
examining all the facts one after another.  Decisions are based on fact rather than
intuition and discussions end with actions. 
Low-context cultures require explicit contracts to conclude negotiations where high-
context cultures depend less on language precision and legal documents and may even
distrust contracts and be offended by the lack of trust they suggest.

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Guilt and Shame
In many societies behaviour is heavily influenced by shame based on “what others will
say and think”. Individuals are concerned about personal shame and bringing shame on
their in-group. Asian societies are heavily shame based. Shame often correlates with
Collectivism.
In other societies “guilt” is the governing force behind behaviour. Individuals are raised
to answer to their own moral conscience and internal sense of right and wrong. In
Catholic societies for example people are raised with a very strong sense of guilt. Guilt
often correlates with Individualism.

Concepts of Face
Related to shame is the concept of face.
Give Face – courtesy shown to superiors
Lose Face – from public accusation or loss of
temper; many will try to resolve unobtrusively and
in private
Save Face – by avoidance of confrontation or
failure to admit a problem existed
Gain Face – when complimented by significant
people in front of others
Show Face – by being physically present at an event
Got Face – A person whose speech, dress and behaviour
reflect his high status

Transaction Approach vs Relationship Approach

People from ‘time and task’ oriented cultures like USA, Northern Europe and Australia
want to get down to business straight away as ‘time is money’ while people from
‘relationship’ oriented cultures like Asia, Latin America and Southern Europe want to
spend some time finding out about ‘the others’ and building trust. Another way to
express this is that we have a transaction-based approach to business while they have
a relationship-based approach to business.

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A final thought
We tend to build relationships and trust with people who look and think like us. We
remember faces and names of people from our own cultures more quickly and we
generally trust people from our own cultures more quickly.
A key to success in foreign markets is to assimilate to a different culture so that other
people feel that you understand them and their needs, this is the key to winning trust
that will unlock doors for you and lead on to great success!

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Australian Workplace Culture
Australian workplace culture is based on:

1. Egalitarianism ___________________________________

2. Independence ___________________________________

3. Forthrightness ___________________________________

4. Informality ___________________________________

5. Practicality ___________________________________

6. Innovation ___________________________________

Activity 1.7: Activity 1.7: Positives and Negatives

Every cultural value has both positive and negative interpretations. For each core
Australian cultural value, write possible positive and negative interpretations.

Australian Value Possible Positive Interpretation Possible Negative Interpretation

Egalitarianism

Independence

Forthrightness

Informality

Practicality

Innovation

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Now, for your own culture, write down three core values and any possible negative
interpretations:

Core Value Possible Positive Interpretation Possible Negative Interpretation

Activity 1.8: Australian Culture in Action

Read the anecdotes below and match them to the relevant cultural value set.
 Power Distance  Informality v Formal
 Egalitarian v hierarchy  Transactional v Relationship
 Individual v Collective  Time Orientation
 Work-life Balance  Innovation
 Forthrightness  Practicality
Anecdote 1: Malaysia to Australia perspective
I find all the joking and laughing during work hours can be quite disruptive. But I realise the
other staff members don’t think it’s a problem, so I have had to revise my thinking a bit. In my
first interview for a permanent job in Australia I was asked what I thought about the
workplace. I said that in a manufacturing situation it’s not good to have too much joking
around, since I wanted to show that I would not tolerate the kind of joking I had experienced as
a temporary worker elsewhere. I knew I had really put my foot in it when the interviewer said,
‘What’s wrong with that?’ I learned that you have to be able to laugh and joke to ‘fit in’ in
Australia.
Cultural Value Set:
Anecdote 2: Switzerland to Australia perspective
I am always amazed! Occasionally after work I play tennis with some colleagues. Every time,
at least one person has to rush off to the ATM to get out $20. Why would you take out such a
small amount?! Surely they know they’ll need cash the next day as well?

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 Cultural Value Set:
Anecdote 3: Pakistan to Australia perspective
In my experience you really have to find something in common with people to get along in the
workplace, otherwise you’ll be gone in two weeks. It isn’t enough to work with people and talk
about the job, but you have to find something more personal in common. And you can’t use
shyness as an excuse; Australians interpret this as rudeness. I am lucky; my boss and I both
like playing ping pong and so we talk about that. We’ve even played a few times and I don’t
have to let him win!
Cultural Value Set:
Anecdote 4: China to Australia perspective
Education in China is based on rote learning so everybody is learning the same thing at the
same time. Here, people want you to express your own opinions. All ideas are entertained as
long as they are logical. People are open to different individuals’ ideas and they pick and
choose the best ones.
Cultural Value Set:
Anecdote 5: India to Australia
I was raised in India, where it was unacceptable to question the directions that someone of a
higher rank has given you. It was normal to follow directions without question. When I came to
Australia I joined the Australian army and was amazed to see that the orders we received came
with explanations. I could not understand why my superiors were justifying their orders. In
India, respect was given if you were in a higher-ranked position and approval did not need to
be sought.
Cultural Value Set:
Anecdote 6: France to Australia perspective
I thought at first that Australians weren’t used to my French name and maybe they had trouble
pronouncing it because in my first workplace in Australia some of my colleagues called me
‘Frenchy’. I didn’t realise till a bit later that everybody in that workplace had a nickname and
they were making me welcome by calling me that.
Cultural Value Set:
Source: “G'day Boss! Australian Culture and the Workplace” by Barbara A. West and Frances T. Murphy (Tribus Lingua, 2007)
Cross Cultural Communication
Communication is the exchange of information – words, ideas or emotions. It only
works when both sender and receiver share a system of meaning.
Culture is learned and expressed in language and symbols and over time develops
distinctive national patterns of communication and social behaviour. These patterns

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affect the way people communicate and act as individuals or groups. Intercultural
communication becomes complex as cultures have different rules for who and how
messages will be conveyed, received and understood.
This is also because both culture and individual experience shape each person’s
communication style and their interpretation of intentional and unintentional
messages.

Bridging Cultural Differences in Communication

Cultural sensitivity leads to effective intercultural communication. Internal rules on
what we assume and how we expect others to behave is affected by our cultural filter.
Some of these internal rules relate to –
 Courtesies in speech – when to say ‘please’, ‘thank
you’ and ‘excuse me’ Cultural Filter
 The meaning of ‘yes’ and ‘no’ The way we perceive
 Rule of politeness – who can speak to whom, who others and the world
can begin a conversation, etc. around us according
 Humour and irony to our cultural
 Dress background.
 Deference to others
 Drinking alcohol
 Appropriate use of personal space

Activity 1.9: Cultural Misunderstandings

Discuss and record any unintentional messages sent and the misunderstandings that
arose as a result of cultural differences.

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 Can you describe any occasions when cultural differences caused
misunderstandings in your own interaction with others? What was the result?

Activity 1.10: Cultural Communication Barriers

Can you identify what sorts of things might negatively affect intercultural
communication?

E.g. We speak a different language.

Verbal
communication

E.g. Facial Expressions

Non-verbal
communication

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Other Barriers
"We don't see things as they are; we see things as we are."
Perception
Anais Nin 1903-1977
Stereotypes Fitting people into categories based on preconceived ideas.
Where a generalised judgment is made of a grouping of races, cultures
Attitude
or individuals (often times: racism).
Judgement
Interpreting and judging individuals and groups by standards/norms
with cultural
unique to your own culture.
bias
The personal disorientation a person may feel when experiencing an
Culture Shock
unfamiliar way of life due to immigration or a visit to a new country.
Stress often comes from being placed in a situation that is unusual for
Stress
us. It accompanies most cross cultural interactions.

Attributing Meaning
Our aim should be to develop the ability to recognise cultural differences, understand
how people apply different meaning to situations and adjust behaviours and attitudes
within the context of the interaction. At the core of intercultural awareness is learning to
separate observation from interpretation and evaluation.

The 3 stages of attributing meaning are:

1. Observation – this is the audio visual element. It is what we see and hear.
2. Interpretation – this is the cognitive element. It is what we think.
3. Evaluation or Judgement – This is the affective element. It is what we feel.

To improve our cultural awareness when we are looking and listening we should be
trying to increase our range of perception. We should observe and suspend our

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interpretation (what we think) and evaluation (what we feel) and ask for clarification
when in doubt.

Act. 1.11: Rules for effective intercultural interaction

Consider the rules for effective intercultural communication below. Can you think of
practical ways to apply the ‘rules’ to avoid misunderstandings in future? What other
‘rules’ can you think of? Write your ideas down to share with your class.

 Communicate with openness towards those from other cultural

backgrounds.
 Develop awareness of the different customs, rules and social behaviour in
different cultures to minimise the barriers caused by prejudice, stereotypes and
discrimination
 Apply inclusive communication techniques to learn new ways to
communicate across cultures.

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Annexure 1
IDENTITY – Individualism vs. Collectivism
Identity relates to the view people have of themselves in relation to the groups of which
they are a part.
People from individualistic cultures have a sense of ‘separated self’. They see
themselves as unique with defined personal boundaries, space goals and
achievements.
People from collective societies have a sense of ‘related self’. They value collaboration
and group achievement and rewards. Loyalty to the group is placed above achievement
of personal goals.
Identity usually has a strong co-relation with wealth. The cultures of most wealthy
countries in the word are relatively individualistic and as countries have become richer
they have tended to move toward this end of the dimension.
In many ways, collectivism can be seen as an adaptation to poverty and limited
resources. In collective societies individuals may have to repress their individual
personalities and this may prove problematic, while in individualist societies people may
feel lonely and isolated, develop anti-social behaviours or cling to illusions of group
cohesion.

POWER DISTANCE - Equality vs Hierarchy

Power Distance or Hierarchy relates to the degree of inequality between people within a
group.
In low power distance societies participants value ‘equality’. Work is allocated according
to perceived competence. In a high power distance society participants value intrinsic
‘hierarchy’.
Inequality in a low power distance society is seen as a necessary evil that should be
minimised; in a high power distance society, inequality is seen as the basis of societal
order.
Work is allocated according to age and experience in an organisation. In these societies
harmony often results from the uneven distribution of power, everyone knows their
place in society.

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Hierarchy is also related to wealth but the co-relation is not as strong as for identity.
Large power distance is easier to maintain in a situation of poverty and limited
resources.

GENDER – Masculinity vs Femininity

Gender refers to the perceived role of males and females in a society and on the
significance of achievement and fighting in comparison to caring and compromise.
In a masculine society, men often take the predominant role in business. Achievement
and fighting are rewarded. In a feminine society role distribution is more equal and
caring and compromise is highly important traits of society.
Big differences exist within this dimension even for countries that are geographically
close together. For example the Netherlands and Scandinavia are very feminine, while
the UK, Germany and Switzerland are masculine. Costa Rica and Portugal are feminine
while most South American countries are quiet masculine. Thailand is feminine, while
Japan is highly masculine.
This dimension is often referred to as care-oriented versus achievement-oriented.

UNCERTAINTY - Uncertainty Tolerant vs Uncertainty Avoidant

Certainty relates to avoidance of unknowns and the search for the correct solution to a
problem.
Societies that are Uncertainty Avoidant cultures believe in one truth and will aim to
avoid the unpredictable and ambiguous, they will have a fear of the unknown. They
believe in order, self-discipline and clear rules.
Societies that are Uncertainty Tolerant believe in several truths. They feel comfortable
in situations where the outcome is not yet known. Note: Uncertainty avoidance is not
the same as risk avoidance. If risk exposures can be measured and limited then
uncertainty avoidant countries will assume risk. The unknown is more threatening to
these societies.
Some countries that are highly uncertainty avoidant are: Korea, Japan, Russia Mexico
and France. Countries that are more uncertainty tolerant are: Germanic countries,
English speaking countries, China, Singapore and Denmark. It is interesting that more
tolerant countries like Singapore and Hong Kong were Chinese emigrants that started
entrepreneurial businesses that were often successful in new markets.

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VIRTUE - Long Term vs Short Term
The concept of virtue relates to time orientation and traditions. Societies that have a
long-term orientation value the benefit of relationships over a longer period of time.
Societies that have a short term orientation value time and the efficient use of time. This
concept is most important in Asia and non-Asians may find it hard to relate to.
Europeans and Americans are more concerned with facts and tasks while Asians are
more concerned with virtue.
Many East Asian countries such as Japan, Korea and China are considered long term
oriented while others such as the Philippines have a shorter term orientation. Most
European and American countries are considered to have a short term orientation. The
Dutch, with a reputation for stinginess have a long term orientation by European
standards.
This is a very Asian dimension that was added by Hofstede after Bond performed his
Chinese Values Survey in the 1980s.

INDULGENCE - Expressive vs Restraint

Indulgent societies tend to allow relatively free gratification of natural human desires
related to enjoying life and having fun whereas Restraint societies are more likely to
believe that gratification should be contained and regulated by strict norms.  Indulgent
cultures will tend to focus more on individual happiness and wellbeing, leisure time is
more important and there is greater freedom and personal control.  In contrast,
restrained cultures express positive emotions less freely, and (Western) concepts of
happiness, freedom and leisure are not given the same importance.

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References
Dwyer, Judith (2003) “The Business Communication Handbook”, 6th edition, Pearson
Education Australia, Frenchs Forest
Gibson, Robert (2002) “Intercultural Business Communication”, 1st Edition, Oxford
University Press
West, Barbara & Murphy, Frances (2007) “G'day Boss! Australian Culture and the
Workplace” Tribus Lingua
http://geert-hofstede.com/
Google Images

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