U4 Handout E4BS Lecturer: Nguyen Thao Trang

UNIT 4: MANAGING ACROSS CULTURE (HANDOUT)

AIMS

- Consider the importance of cultural differences for people working across

cultures.
- Discuss the conflict between globalization and localization.

conflict n

globalization n

localization n

LEAD-IN

Q1. What are the advantages and disadvantages of a multinational company adapting
its management methods to the local culture in each country in which it operates?

adapt /əˈdæpt/ (v): to change, or to change something, to suit different conditions or

uses.

operate /ˈɑː.pə.reɪt/ (v): to manage a business, service, etc. and make it work.

Your answer

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

…………………………………………………………………………………………………………………………………………
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Q2. To what extent is the culture of your country similar enough to those of
neighbouring countries to have the same management techniques? Or do they have
very different attitudes to work, hierarchy, organization, and so on? If so, what are these
differences?

hierarchy /ˈhaɪ.rɑːr.ki/ (n): a system in which people or things are arranged according to
their importance.

Your answer

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Some information:

The American theorist Edward T. Hall divides the world into: high-context and low-
context cultures.

High-context cultures – the norm in East Asia – are “affiliation cultures” in which people
tend to have similar experiences, and expectations, allowing many things to be left
unsaid.

In high-context communication, people rely more on non-verbal communication (facial

expression, gestures, eye movement) and inferences that can be drawn from implicit
share cultural knowledge.

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

People in these cultures are said to have a greater ability to anticipate and understand
the feelings of others than in low-context cultures.

Low-context cultures often consist of people with a wider variety of backgrounds.

Low-context cultures - the norm in Europe and North America – people use more direct
and explicit verbal communication and are said to be less adapt at interpreting non-
verbal and emotional clues.

The six dimensions of Vietnamese culture

If you want to have an overview of Vietnamese culture from an academic point of view,
Hofstede's cultural dimensions theory can be a good starting point. According to Geert
Hofstede, a well-known social psychologist, a culture can be analyzed basing on six
cultural dimensions:

Power Distance: the extent to which the less powerful members of institutions and
organizations within a country expect and accept that power is distributed unequally.

Individualism vs Collectivism: the degree of interdependence a society maintains

among its members. In Individualist societies people are supposed to look after
themselves and their direct family only. In Collectivist societies people belong to ‘in
groups’ that take care of them in exchange for loyalty.

Masculinity(tính đàn ông:xã hội cạnh tranh) vs Feminity(tính nữ cao:tập trung vào
cộng ddooongf;truyeengf thống): A high score (Masculine) on this dimension indicates
that the society will be driven by competition, achievement and success. A low score
(Feminine) on the dimension means that the dominant values in society are caring for
others and quality of life.

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

Uncertainty Avoidance(bị đe dọa ,sợ hãi bởi những tình huống không chắc chắn): The
extent 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.

Long Term Orientation(định hướng lâu dài): how every society has to maintain some
links with its own past while dealing with the challenges of the present and future.

Indulgence(cho phép làm tất cả những gì mình muốn): the extent to which people try
to control their desires and impulses.

The following chart shows the score of each cultural dimensions of Vietnam, comparing
to Japan and the US:

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

The Power Distance in Vietnam is high, which means that people accept a hierarchical
order in which everybody has a place, and which needs no further justification.
Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is
popular, subordinates expect to be told what to do and the ideal boss is a benevolent
autocrat. Challenges to the leadership are not well-received.

With a low score on Individualism, Vietnam is a collectivistic society. This is manifest in a

close long-term commitment to the “member” group, be that a family, extended family
or extended relationships. Loyalty in a collectivist culture is paramount and overrides
most other societal rules and regulations. Such a society fosters strong relationships,
where everyone takes responsibility for fellow members of their group. In collectivistic
societies, offense leads to shame and loss of face. Employer/employee relationships are

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

perceived in moral terms (like a family link), hiring and promotion take account of the
employee’s in-group. Management is the management of groups.

The score of Vietnam is low on Masculinity dimension and hence, it is considered as a

Feminine society. In Feminine countries the focus is on “working in order to live”,
managers strive for consensus, people value equality, solidarity and quality in their
working lives. Conflicts are resolved by compromise and negotiation. Incentives such as
free time and flexibility are favored. Focus is on well-being; status is not shown. An
effective manager is a supportive one, and decision making is achieved through
involvement.

Vietnam has a low preference for avoiding uncertainty. Such societies maintain a more
relaxed attitude in which practice counts more than principles and deviance from the
norm is more easily tolerated. In such societies, people believe there should be no more
rules than are necessary and if they are ambiguous or do not work, they should be
abandoned or changed. Schedules are flexible, hard work is undertaken when necessary
but not for its own sake, precision and punctuality do not come naturally, innovation is
not seen as threatening.

On the dimension of Long-Term Orientation, Vietnam is considered to have a pragmatic

culture. In societies with a pragmatic orientation, people believe that truth depends
very much on situation, context and time. They show an ability to adapt traditions easily
to changed conditions, a strong propensity to save and invest. thriftiness and
perseverance in achieving results.

A low score of 35 on the Indulgence dimension indicates that the culture of Vietnam is
characterized as Restrained. Societies with a low score in this dimension have a
tendency to cynicism and pessimism. Also, in contrast to Indulgent societies, Restrained
societies do not put much emphasis on leisure time and control the gratification of their

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

desires. People with this orientation have the perception that their actions are
Restrained by social norms and feel that indulging themselves is somewhat wrong.

A more detailed information about the six cultural dimensions of Vietnam can be found
here. The website also allows you to compare different cultures basing on Hofstede's
cultural dimensions theory.

Key takeaways

 Vietnam has high power distance

 Vietnam is a collectivistic society
 Vietnam is a Feminine society
 Vietnam has a low preference for avoiding uncertainty
 Vietnam is considered to have a pragmatic culture
 The culture of Vietnam is characterized as Restrained

Link: http://www.workwithvietnamese.com/the-six-dimensions-of-vietnamese-
culture.html

Fill in the blanks with words and phrases from the article.

1. Individualism is the idea that freedom of thought and action for each person is
the most important quality of a society, rather than shared effort and
responsibility.
2. A society that has a high score of masculinity will focus on competiton.,
achievement, and success
3. The six cultural dimensions are:

………………….………………….………………….………………….………………….………………….
………………….………………….………………….………………….………………….………………….

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

………………….………………….………………….………………….………………….………………….
………………….……………………

4. Vietnam is collectivitic society. This demonstration is the commitment to the

“member” group, be that a family, extended family, or extended relationships.
5. Check in the correct column

Low High
1. Power distance X
2. Individualism X
3. Collectivism X
4. Masculinity X
5. Feminity X
6. Avoiding uncertainty X
7. Indulgence X

LISTENING 1: MANAGERS AND AUTHORITY

Listen to two MBA students at the Judge Business School talking about cultural
differences and answer the questions.

1. What concepts does Krishna say are important in management in Singapore?

Hierarchy,the superiority of a manager,power
2. How does this differ from the European countries Krishna mentions?

3. From what Carlo says, how similar is Italy to Switzerland and Britain?

TAPESCRIPT (Track 1.7)

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

Krishna Srinivasan

What I noticed in – I worked in both in Switzerland and in Malaysia – and (1) ………………
the context of a manager…………………………. is very different in these two countries. In
Singapore, the (2) ………emphasis……… on (3) ……hierarchy………… and the (4) ……
superiority………… of the manager is very important. No matter you put a group in a
team, once the manager says something it’s kind of (5) ………accepted……… by everyone
else, no one (6) ……challenge………… it, whereas in Switzerland and UK what you observe
is once the manager says something, people can challenge him. So, manager in the
Western context is more (7) ……a guider…………, who (8) ……encourages………… people by
his (9) ……persuasion…………, either his (10) ……………vocal talent(tài ăn nói)…………………
or his (11) ……………technical astute(sự sắc sảo,tinh khôn về ăn nói)…………………, whereas
in the Asian region I still feel that the emphasis on superiority, power, is still very (12)
……prevalent(phổ biến)…………, so the manager has to have the (13) …………commanding
power……………………

Carlo De Stefanis

My theory in Italy we’ve still got, (1) ……authority………… is important, as is (2) ……

seniority …………, in respect - if I make a comparison especially with the Anglo-Saxon
world, in Italy seniority, the (3) ……years………… you have spent in a (4) …………certain
position……………………, in a (5) ……………certain company…………………, give you (6)
……………formal authority(quyền lực trong công ty khi làm việc lâu năm)…………………, in a
way. On the other hand, I think that it is (7) ……accepted…………, largely accepted in Italy,
to make your point with your boss, absolutely, so to discuss about (8) ……position…………
and (9) ……problems………… in an (10) ………open way………………………

New vocabulary

context n the situation within which something exists or happens, and

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

that can help explain it.

superiority n the fact that one person or thing is better, stronger, etc.
than another.
encourage v to talk or behave in a way that gives someone confidence to
do something.
astute adj able to understand a situation quickly and see how to take
advantage of it.
prevalent adj existing or happening often.

commanding adj having the authority to give orders.

authority n the moral or legal right or ability to control.

Seniority(thâm n the length of time you have worked for an organization, and
niên,làm lâu năm) the advantages that you get from this.
Anglo-Saxon adj used to describe modern societies that are based on or
influenced by English customs
Make your point to tell people your opinion

Discussion question

Q1. In your country, what gains respect within an organization, long service or
achievement?

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

…………………………………………………………………………………………………………………………………………
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Q2. Can a young, dynamic, aggressive manager with an MBA rise quickly in the
hierarchy?

dynamic /daɪˈnæm.ɪk/ (adj): having a lot of ideas and enthusiasm.

aggressive /əˈɡresɪv/ (adj): done in a very forceful and competitive way in order to gain
an advantage / forceful, competitive, and determined to win or get what you want.

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READING: MANAGING ACROSS CULTURES

Word Part of Definition/Meaning

speech
cross-cultural

collide

imperative

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

practice

habit

belief

principle

conflict

invention

aware

characteristic

pole

rational

in advance

regulation

confrontation

compromise

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

intuition

improvise

hierarchy

status

precedence

interrupt

formulate

represent

Fill in the blanks with words from exercise Vocabulary (p.28 textbook)

1. She resigned after an angry ……confrontation…………. with her manager.

2. During certain scenes of the play there isn't any script, and the actors just ……
improvise…………...
3. If you're telling the truth, why are you avoiding ……eye contact…………. with me.
4. There's no ………logic………. in the decision to reduce staff when orders are the
highest they have been for years.
5. She had to accept defeat without ……losing face…………...
6. Well, you want $400, and I say $300, so let's ………compromise………. at $350.
7. Often there's no clear evidence one way or the other and you just have to base
your judgment ………intuition………...
8. Please don’t ………interrupt………. until I’m finished.

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

LISTENING 2: MANAGERS AND CULTURAL DIVERSITY

What would happen if the world became truly globalized, and everyone travelled or
worked with people from different cultures? Listen to three MBA students at the
Judge Business School and answer the questions.

1. What does Lakshmi describe as an advantage of international management

schools?

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2. Why does Janine say that American businesspeople now have different attitudes?

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3. What skill or ability does Janine say allows people to be more self-aware?

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4. What expression does Carlo use to describe corporations becoming truly

international?

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

5. What does Carlo say happens if companies move a lot of executives and
managers around?

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6. What is the saying or proverb that Janine quotes? What does it mean?

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7. What is the Japanese version of this saying that she heard? What does it mean?

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TAPESCRIPT (Track 1.8)

Track 1.8

M LAKSHMI JAYA

I mean I think here (1) ………diversity……… in, say, (2) …………management

school………………… plays a very important role, because take, for example, Judge
Business School, we have people from forty-six different (3) ……………nationalities…………,
so you’re working with these group of people at (4) …………various point………………
through your program, and it kind of like gives that (5) ……………diverse
experience…………………… to you to be able to like work with cross, people from (6) ………
cross-cultural…………………… backgrounds. So, I think (7) ……………management

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

education…………………………… does help a lot, and your (8) ………ability…………. to be, work
with like, cross-cultural people.

JANINE GEORGE

I think the difference nowadays is also the fact that there’s a lot more (1) ………
awareness……… about these issues. The fact that there are so many business schools, so
many (2) ……… courses…… running with (3) ……………regards to culture………………, the (4)
…………diferrent in aspects……………………… regarding the US versus China, and so forth,
people are just more aware. And I think with this, an American now going into China,
has a completely (5) ............diferrent attitude....................., or at least I hope so! That
people are now more aware of these situations and sot of aspects of (6) ………………
emotional intelligence…………………………… allow people to use those (7) …………………self-
awareness aspects……………………...…, to be able to be a bit more (8) ……effective……… in
their management styles …

CARLO DE STEFANIS

I read somewhere that now there are a lot of (1) ……………international

corporations………………………… that are giving up their (2) ……passport…………. This was an
article, I mean, about a more (3) …………general context……………………, but it’s true that
companies like IBM, or General Electric, that are moving a lot of (4) ……
executives……………, and even (5) ……………middle management………………… across the
countries, (6) ………contribute………… to create a (7) ……………mutual
understanding………………….…… of different cultures and to (8) ……smooth…………, in a
way, to (9) ……………round the corners…………………, I think.

JANINE GEORGE

There’s a saying that says, ‘When in (1) ……rome……, do as the (2) ……romans……… do.’ I
went on a Japanese course where it said, ‘When in Rome, (3) …learn………… what the
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U4 Handout E4BS Lecturer: Nguyen Thao Trang

Romans do, so you can become a better Japanese.’ So, I think that in a way (4) ………
sums it up…………… perfectly, in that culture will never (5) ……disappear……………, right,
but I think in a way we’re just going to become a lot (6) …………more
profound………………… in what we do, and (7) ……………learn a lot more………………… what
everybody else in (8) ……………the rest of the world………………………………. is doing.

New vocabulary

n the fact of there being people of many different groups in

society, within an organization, etc.
n the official right to belong to a particular country.

adj many different.

adj including many different types of people or things.

n knowledge that something exists, or understanding of a

situation or subject at the present time based on information
or experience.
in connection with.

n the ability to understand the way people feel and react and to
use this skill to make good judgments and to avoid or solve
problems.
n good knowledge and judgment about yourself.

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U4 Handout E4BS Lecturer: Nguyen Thao Trang

n a large company or group of companies that is controlled

together as a single organization.
n an official document provided by the government of a
particular country which shows that the owner is a citizen of
that country and allows that person to travel to foreign
countries.
v to give something, in order to provide or achieve something
together with other people.
adj (of two or more people or groups) feeling the same emotion,
or doing the same thing to or for each other.
v to remove difficulties and make something easier to do or
achieve.
very near here.

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