Cross- Cultural Models

Cross Cultural Management-Unit – 2

Dr. Parul Saxena
 Hofstede provides a useful framework for understanding the workfor
diversity. His main findings were:
•Work related value are not universal

•Underlying values continues when a multinational

company tries to impose the same norms on all its foreign
interests.

•Local value determine how the headquarters regulations

are interpreted;

•By implication, a multinational that tries to insist on

uniformity is n danger of creating morale problems and
inefficiencies.
 Hofstede’s
framework for
Assessing culture

Hofstede’s studies of the interactions between

national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations, and that are very
persistent across time
 Dimensions of Hofstede’s framework of
assessing culture:

• Low and High Power Distance

• Individual and collectivism

• Masculinity v/s Femininity

• Uncertainty avoidance

• Long and short term orientation

 Power Distance:
unequal power of distribution.
ItHigh
is thePower distance
distance Lowlevels
between individuals at differ ent powerof distance
hierarchy.

Hofstede
Countriesobserved
in which two types
people of distance:
blindly obey the Countries which people (supervisors and
1.orders
High power
of theirdistance
superior, employees sub
2.acknowledge
Low power distance
the boss’s authority simply ordinates) are apt to regard one another
by equal in
respecting that individual’s formal position power.
in
the hierarchy, and they seldom bypass the
chain of command
Results
• Less Harmony and less cooperation • More harmony and cooperation.
• Centralized order • Decentralized structure
• Autocratic Leadership • Democratic leadership
• Taller Organization structure • Flatter organization structure

Maxico, South Korea and India. Austria, Esrael, USA, UK, Denmark
 Power Distance:
unequal power of distribution.
High Power distance Low power distance

Countries in which people blindly obey the
orders of their superior, employees
acknowledge the boss’s authority simply
by
respecting that individual’s formal position
in
the hierarchy, and they seldom bypass the
chain of command
Results
• Less Harmony and less cooperation
• Centralized order
• Autocratic Leadership
• Taller Organization structure
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power.
• More harmony and cooperation.
• Decentralized structure
• Democratic leadership
• Flatter organization structure

Maxico, South Korea and India. Austria, Esrael, USA, UK, Denmark
High uncertainty avoidance Uncertainty Avoidance
Low uncertainty avoidance

Countries with a high level of uncertainty In countries with lower levels of

avoidance tend to have strict laws and
procedures to which people adhere
closely, and there is strong sense of
nationalism.
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
so
• Managers have propensity for low risk
decisions,
• employees exhibit little aggressiveness
• lifetime employment is common
• Taller organization structure
Japan, Israel, Austria, Pakistan
uncertainty
avoidance nationalism is less pronounced,
and protests and other such activities are
tolerated. As a consequence, company
activities are less structured and less
formal.
• Managers take more risk, and there is
high job mobility
• Peoples have risk taking attitude and
high labour turnover.
• Flatter organizational structure
India, USA, UK etc.
Individual
Individualcollectivism
and collectivism
Interest of Self and Family Interest of Group
‘I’ consciousness ‘We’ consciousness
Independence of Individual from Dependency on organization
organization. Less Individual initiatives
Grater Individual Initiatives Promotions are seniority based
Promotions are based on Merit and
performance

USA, UK, Australia Japan, Taiwan and Pakistan

 Masculinity v/s Femininity
Traditionally, ‘masculine’ values – assertiveness, materialism, aggressiveness and a
lack of concern for others that prevail in society, femininity emphasizes feminine
values – a concern for others, for relationships, nurturing, care for weak and for
quality of life. The degree of masculinity affects in the following characteristics way:
High Masculinity Low Masculinity

•Career is considered as most •Importance is placed on cooperation

important
• Work needs take precedence
•Individual decision-making is
emphasized
•Achievement is given importance and
is defined in terms of money and
recognition
and friendly atmosphere.
• Employee security gets precedence.
•Group decision – making is
emphasized
•Achievement is defined in terms of
human contacts and living
environment

Countries with high masculinity – India, Countries with low masculinity – Denmark,
Japan, Norway, Sweden etc.
USA, UK etc.
Kluckhohn - Strodthbeck

This theory is based on the ‘Patterns

of behavior and thinking’ in different
cultures. The researchers distinguish
and compare cultures based on the
following dimensions
1. What is the nature of people – Good, evil or mixed
2.What is a person’s relationship to nature – Dominant, Harmony,
subjugation.
3. What is a person’s relationship to – Hierarchical, collectivist or
others?
Individualistic.
4.What is the modality of human activity? – Doing, being or containing
5.What is the temporal focus of human activity? Future, present or
past.
6. What is the conception of Space? Private, public or mixed.
 Halls and Halls

Halls and Halls in 1987 provided another basis for

cross cultural classification. They divided
the world into two cultures:

A) Low context Culture

B) High context Culture
□Members of high – context
cultures depend heavily on the
external environment,
situation and non – verbal behavior
in creating and interpreting
communication. Members
of this culture group learn to
interpret the covert clues when they
communicate – so much
meaning is conveyed indirectly.
□Examples – Arabic, Chinese and
Japanese, where indirect style of
communication and
ability to understand the same is
highly valued.
In low – context cultures like the
US, Sweden, and Britain, the
environment is les important,
and non-verbal behavior is often
ignored.
□Therefore, communication has to
be explicit and clear.
฀ A direct and blunt style is valued
and ambiguity is disliked in
managerial communication.
 Trompennars

7d cultural dimension model

Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment

□ Individualism vs. collectivism

□ Universalism vs. particularism (rules)
□ Neutral vs. affective (emotion)
□ Specific vs. diffused involvement
□ Achievement vs. ascription (status)
□ Past, present and future orientation
□ Internal vs. external control (nature)
 Universalism vs.
Particularism

Universalism - belief that ideas Particularism - belief that

and practices can be applied circumstances dictate how
everywhere in the world ideas and practices should be
without modification applied and something cannot
be done the same everywhere

Focus on formal rules and rely on Focus on relationships, working

business contacts things out to suit the parties
Individualism vs. Communitarianism
□Individualism - people regard □Communitarianism - people
themselves as individuals regard themselves as part of a
group

□ Rely on individuals to make □ Seek consultation and mutual

decisions consent before making decisions

Neutral vs. Emotional

□ Neutral - culture in which □Emotional - culture in which
emotions are held in check emotions are expressed openly
and naturally

□ People try not to show their feelings □ People smile, talk loudly, greet
each other with enthusiasm
 Specific vs.
□Specific - culture in which
Diffuse
Diffuse - culture in which both
individuals have a large public public and private space are similar
space they readily in size and individuals guard their
share with others and a small public space carefully, because
private space they guard closely entry into public space affords
and share with entry into private space as well
only close friends and associates

People often are open and extroverted People often appear indirect and
introverted, and work and private life
often are closely linked

Work and private life are separate

 Achievement vs. Ascription
Achievement - culture in which Ascription - culture in which
people are accorded status status is attributed based on
based on how well who or what a person is
they perform their functions

For example, status may be

accorded on the basis of age,
gender, or
social connections
 Time
□฀ Sequential approach to time - □฀ Synchronous approach -
people do one thing at a time, keep people do more than one thing at a
appointments strictly, follow plans time, appointments
to the letter are approximate

Environment
□Inner-directed □Outer-directed
□People believe in controlling □People believe in allowing things
environmental outcomes to take their natural course

Cultural Patterns or Clusters

Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
 Andre Laurent’s
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China, Indonesia and Japan.
 Laurent used four parameters
• Perceptions of the organizations
• Authority systems
• Role formulation systems
• Hierarchical systems
• This research treated management as a process by which
managers express their cultural values – like how far manager
caries his / her status into the wider context outside the
workplace Therefore, the international manager needs cross –
cultural competence to manage multiculturalism.
• Cross cultural competence includes skills, awareness and
Knowledge. In order to be culturally competent, an individual
needs to:
1.Possess a strong personal identity
2.Have knowledge of and facility with the beliefs and values of
the culture;
3. display sensitivity to the effective process of the culture.
4.Communicate clearly in the language of the given culture
group.
5. Perform specially sanctioned behavior.
6. Maintain active social relations within the cultural group
7. Negotiate the institutional structures of that culture.
 Why needed ?

1.In global businesses, activities such as leading, motivating, decision making,

problem solving, exchanging ideas and information depends on the ability of
proper
communication from one culture to another.

2.Mistakes in cross-cultural communication often go unnoticed by the

communicators, but these mistakes have the potentials to cause damage to
international relationships and negotiations.

3.Mistakes or misinterpretations of the subtle gestures of the hands, and face,

the use of silence, what is said or not said, and the intricacies of dealing with
age and status often provide PITFALLS for International Business.
 Why needed ?

1.In global businesses, activities such as leading, motivating, decision making,

problem solving, exchanging ideas and information depends on the ability of
proper
communication from one culture to another.

2.Mistakes in cross-cultural communication often go unnoticed by the

communicators, but these mistakes have the potentials to cause damage to
international relationships and negotiations.

3.Mistakes or misinterpretations of the subtle gestures of the hands, and face,

the use of silence, what is said or not said, and the intricacies of dealing with
age and status often provide PITFALLS for International Business.
 Critical dimensions in
Intercultural
communication are:

1. Language and Culture

2. Difference between high and low context
cultures
3. The use of interpreters
4. non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise, disorientation, confusion, etc.) felt
when people have to operate within an entirely different
cultural or social environment, such as a foreign country.
It grows out of the difficulties in assimilating the new
culture, causing difficulty in knowing what is appropriate
and what is not.
 Phases of Culture Shock
□The "Honeymoon Phase" - During this period the differences between
the old and new culture are seen in a romantic light, wonderful and new.

□"Negotiation Phase" - After a few days, weeks, or months, minor

differences between the old and new culture are resolved.

□The "Everything is OK" phase - Again, after a few days, weeks, or

months, one grows accustomed to the new culture's differences and
develops routines. By this point, one no longer reacts to the new culture
positively or negatively, because it no longer feels like a new culture. One
becomes concerned with basic living again, as one was in their original
culture.

□Reverse Culture Shock - Returning to one's home culture after growing

accustomed to a new one can produce the same effects as described above.
 Sign of Culture
Shock:

• Irritability • Boredom
• Fluctuating appetite • low energy
• Moodiness • Confusion
• Disrupted sleep • Anxiety
• Homesickness • Negativity
• Spending time alone • Alienation
• Avoiding the locals • Depression
• Reading all day • Physical illness
• Depression
 OCTAPACE

The most important aspect of organizational culture are the values it

practices. Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE.

OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING.
a) Openness - the comparative openness in the system should
influence the design of HRS. Organizations can be classified in
continuum from completely open to completely close. No orgn
may be on the two extremes of the continuum. However, they
will tend to be towards one or the other end. The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed, as
well as the way in which these dimensions should be
introduced. orgn which are fairly open may start with several
confronting designs of HRS .

b) Confrontation - this term is used in relation to problem putting

the front rather than the back to escaping the problems. A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution. If an organization encourages people to recognize a
problem, bring it to people concerned, explore with them to
under it and search possible ways of dealing with it.
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness. If the
level of trust is low, the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down. in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant.

d) Authenticity- is the value underlying trust. It is the willingness of a

person to acknowledge the feelings he /she has, and accept
imself / herself as well as other who relate to him/her as persons.
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior. This value is important for the
development of a culture of mutuality.

e) Proactive - can be contrasted with the term react. It in the later

action is in response to an act from some source, while in the
former the action is taken independently of act form the other
source. Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
f) Autonomy - nothing but willingness to use power without fear and
helping other to do same. It multiplies power in system and the basis is
collaboration.

g) Collaboration - involves working together during one another

strengths for a common cause. Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together.

h) Experimenting - as a value emphasizes the importance given to

Innovating and trying out new ways of dealing with problems in the
organization.

A profile of an organization. on these aspects may help to decide what

elements of HRS should be introduced in what sequences in the organization.
Chapter Outline

• Concept of Culture
• Elements of Culture
• Determinants of Culture
• level of culture
• Cross cultural theories
• Cross Cultural Communication
• Culture Shock
 Concept of
Culture

• Culture is the configuration of learned behavior

and result of behavior whose component
elements are shared and transmitted among the
members of a particular society.

Culture is Relative that guide the behavior of people in a society /

community and that are passed on from one generation to the next.
 Elements of
Culture

• Culture has normative value. It prescribes

Do’s and Don’ts which are binding on the
members of a society.
• Culture is a group Phenomenon.
• Cultural practices are passed on from
generation to generation
 Elements of
culture

• Language • Corporate culture

• Nationality • Family
• Sex • Values
• Education • Norms
• Profession • Attitudes
• Ethnic group • folkways
• Religion • Customs
• Social class
• Example: Women in Indian Society wear
‘Kumkum/Sindur’ on their foreheads because their
parent told them to wear. The parents did the same
because their parents had done so.
• Eating cow’s meat is viewed critically by Hindu
Society. While drinking liquor is common in the US,
the same is prohibited in Saudi Arabia and is a
punishable offence
 Characteristics of
Culture

• Culture is learned
• Culture is unconscious
• Culture is shared
• Culture is integrated
• Culture is Symbolic
• Culture is a way of life
• Culture is Dynamic
• Culture is Relative
• Culture is universal
 Education
Political
Language philosophy

Determinants Social
Religion of Culture
structure
 level of culture
pervasive and extends to the whole of a
country

practices of Punjabies are different from

Sub Culture those obtain in Karnataka.

TATA is different from that of INFOSYS while

Organizational that of INFOSIS is not the same as that of
WIPRO.

Occupational An Account for example speaks the same

financial language whether he or she is an
Indian or an American. So is the case with a
medical practitioner or an attorney.
 Characteristics of
Organization
Culture

• Centralized vs. decentralized decision making:

• Safety vs. risk: in some so
• Individual vs. group rewards
• Informal vs formal procedures:
• High vs. low organizational loyalty:
• Cooperation vs. competition:
• Short term vs. long term horizons
• Stability vs. innovation
 Cultural
Sensitivity

Knowing that cultural differences as well as

similarities exist, without assigning values (i.e.
better or worse, right or wrong) to those cultural
differences.
 Cultural Sensitivity
Therefore, every international manager need to know about cultural differences among
nations in order to be able to:

•Communicate effectively with customers, suppliers, business associates and

partners in other countries and foreign employees (expatriates).
• Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation.
• Predict trends in social behavior likely to affect the firm’s foreign operations.
•Understand the ethical standards and concepts of social responsibility in various
countries.
• Build Foster relationships between union confederations and employee associations
require cultural empathy.
• Understand local Government policies and influences it for business promotion.
• Conduct efficient meetings in different countries and encourage employees
participation in management.
• Understand how people interpret market research an other information.
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog. The restaurant manager politely
greeted then at the door, took their dog and ,
30Minutes later-family was shocked

They had SERVED IT TO THEM

The consumption of dog meat is associated

with their culture, where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas.
Cross cultural theories
 Cross cultural
Theories

Organizational culture varies one from another

based on 4 factors:
• Organizational objectives and Goals.
• Competitive Challenge
• National variables and
• Socio cultural variables like different religion,
language, education etc.
Cultural Diversity or Multi-Culturism
 Hofstede’ Cultural
Dimension
Dutch Scientist, has analyzed
cultural dimension in IBM
Employees (1,16,000) in 70
countries and in 3 regions
like E. Africa, W .Africa and Saudi
Arabia.

Hofstede tried to eliminate the

impact of changing organizational
cultures and analyzed the influences
of different national cultures.