Theories and concepts Flashcards
What is the goal of Cross Cultural Management?
Going from being unaware of culture to being aware of cultural differences when doing business around the world
What is ‘culture’?
A set of beliefs, values and norms embedded in a human group that provides the
group with a common identity and makes sense for the behaviour of its members
Define ‘values’ and ‘norms’
Values are abstract ideas about what a group believes to be good, right and desirable; shared assumptions about how things ought to be.
Norms are social rules and guidelines that prescribe appropriate behaviour in particular situations.
Define the layers of culture (‘the cultural onion’)
- Global culture (top)
- National culture
- Organizational culture
- Group culture
- Individual culture - behaviour, values, assumptions (bottom)
What is ‘ethnocentrism’?
Ethnocentrism consists of analysing any problem or situation through the lens of one’s own culture without bearing in mind that our decisions, actions and behaviour may have a very different impact on other people than they would have in our own culture
Name Hofstede’s basic dimensions of culture (both the original 4 and the 2 latest)
Power distance (low/high) Uncertainty avoidance (low/high Individualism versus Collectivism Masculinity versus femininity Long-term orientation versus Short-term orientation Indulgence versus Restraint
Explain ‘Power Distance’, both high and low
The extent to which less powerful members of a society accept an unequal
distribution of power.
In a society with high Power Distance, people accept a hierarchical order in which everybody has a place and which needs no further justification.
In a society with low Power Distance, people strive to equalise the distribution of power and demand justification for inequalities of power
Explain ‘Uncertainty Avoidance’, both high and low
The Uncertainty Avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. The fundamental issue here is how a society deals with the fact that the future can never be known: should we try to control the future or just let it happen?
In societies with high Uncertainty Avoidance, loyalty to the employer is strong, and the average duration of employment is long. The conception of management is highly formalized, and there is an appeal for hierarchical control role.
Innovations are resisted. However, if they are accepted, they are applied consistently.
In societies with low Uncertainty avoidance, people maintain a more relaxed attitude in which practice counts more than principles
Explain ‘Individualism versus collectivism’
In societies with high Individualism (individualist societies), there is a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families. People’s self-image is defined as “I”
In societies with low Individualism (collectivist societies), there is a preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular ingroup to look after them in exchange for unquestioning loyalty. People’s self-image is defined as “we”
Explain ‘Masculinity versus Femininity’
The extent to which dominant values in a society are “achievement, assertiveness, and material rewards for succes”. Thes values are prominent in masculine societies. These societies are more competitive
In contrast, values in a feminist society are: “cooperation, taking care of others, relationships, and quality of life”. These societies are more consensus-based
Explain ‘Long-term versus Short-term orientation’
Every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently.
Societies who score low on this dimension (short-term oriented), for example, are focused on the present or past and consider them more important than the future. The way of thinking is “I would rather have it now than later”
Those with a culture which scores high (long-term oriented), on the other hand, are focused on the future. Persistence, perseverance, savning, and being able to adapt are valued. The way of thinking is “I can wait to have it later instead of now”.
Explain ‘Indulgence versus Restraint’
Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms
Name the 9 cultural dimensions of the GLOBE model
Power Distance Uncertainty avoidance Gender egalitarianism (equality) Assertiveness Institutional collectivism Group collectivism Future orientation Performance orientation Human orientation
Explain ‘Performance orientation’
This reflects the extent to which a community encourages and rewards innovation, high standards, and performance improvement.
In societies with high Performance orientation, training and development are valued, and results are emphasized more than people. View feedback as necessary for improvement. Believe that schooling and education are critical for success
In societies with low Performance orientation, societal - and family relationships are valued, and the emphasis is on loyalty and belonging. There is a high respect for quality of life. View feedback and appraisal as judgmental and disconforming. Associate competition with defeat and punishment.
Explain ‘Future orientation’
This represents the degree to which a collective encourages and rewards future-oriented behaviours such as planning and delaying gratification.
In societies with high Future orientation, economic succes is achieved, and organizations and managers are flexible and adaptive
In socities with low Future orientation, lower levels of economic succes are achieved, and organizations and managers are inflexible and
maladaptive
Explain ‘Gender egalitarianism’
The societies that are gender egalitarian seek to minimize gender role differences (create gender equality).
In societies with high Gender egalitarianism, more women are employed in positions of authority, and women are accorded a higher status in society. Similar levels of education between men and women
In societies with low Gender egalitarianism, less women are employed in positions of authority, and women are accorded a lower status in society. There are lower levels of education of females relative to males
Explain ‘Assertiveness’
Assertiveness reflects the degree to which a collective encourages being assertive, aggressive or tough in social relationships.
In societies with high Assertiveness, assertive, dominant, and tough
behaviour for everyone in society is valued. Believe that someone can succeed if he or she tries hard enough. Value expressiveness and revealing thoughts and feelings.
In societies with low Assertiveness, assertiveness is seen as socially unacceptable
and value modesty and tenderness.
Explain ‘Institutional - and Organizational collectivism’
It is basically Individualism versus Collectivism, just at both an institutional - and organizational level
Name the basic dimensions of Gesteland’s model
Deal-focused cultures versus relationship-focused cultures
Formal cultures versus informal cultures
Monochronic cultures versus polychronic cultures
Expressive cultures versus reserved cultures
Explain ‘Deal-focused cultures, Intermediate cultures, and relationship-focused cultures’. Provide examples of countries
Deal-focused cultures are task-oriented and direct (both in business and language). Examples are Nordic and Germanic countries, Australia and New Zealand
Relationship-focused cultures are relationship-oriented and indirect (both in business and language). Examples are the Arab World, most of Africa, Latin America and Asia
Intermediate cultures are in between the former two. Examples are United Kingdom, South Africa, Latin Europe, Eastern Europe, Chile, Brazil, Hong Kong, Singapore
Explain ‘Formal - Informal cultures’. Provide examples of countries
In Formal cultures, informality may be misinterpreted as disrespect (suit and tie). The key rule is: when in an unfamiliar situation, always choose formality. Examples are Most of Europe and Asia, the Mediterranean region and the Arab world, Latin America
In Informal cultures, Informality is not disrespectful. Examples are Australia/New Zealand, the Nordic countries, the Netherlands, USA, Canada
Explain ‘Monochronic - and Polychronic cultures’. Provide examples of countries
In Monochronic cultures, punctuality is critical; schedules are set in concrete, agendas are fixed, and business meetings are rarely interrupted. Examples are Nordic and Germanic countries, North America, Japan
In Polychronic cultures, people and relationships are more important than agendas. There is less emphasis on strict punctuality; there is no obsession with deadlines. At business meetings, several meetings-within-meetings may take place simultaneously. Examples are the Arab world, Africa, Latin America, South and Southeast Asia.
There are also intermediate cultures, such as Australia, New Zealand, Russia, Eastern-Central Europe, Singapore, Southern Europe, China, Singapore
Provide examples of countries with most expressive cultures, relatively expressive cultures, and reserved cultures
Most expressive cultures: The Mediterranean basin, Latin Europe, Latin America
Relatively expressive cultures: USA and Canada, Australia and New Zealand,
Eastern Europe, South Asia, Africa
Reserved cultures: East and Southern Asia, Nordic and Germanic countries, Europe
Explain Hall’s ‘high-context versus low-context cultures’
Communication always takes place in context but the relevance or impact that context has for understanding the message varies between cultures.
In high-context cultures (emotional), the meaning of the message is highly dependent on non-verbal communication, the environment and the situation.
Communication is highly internalized. There is less use of explicit words.
The cultures are homogeneous, with shared values and common mental frameworks. Think of Japan and China
In Low-context cultures (factual), most information is contained in explicit codes such as words. There is less importance in non-verbal communication.
The cultures are heterogeneous, with division of social, personal and professional lives and different mental frameworks. Think of Germany, Scandinavia, the US, and most non-southern European countries
Define acculturation
Acculturation means adjusting and adapting effectively to a specific culture
Name some of the cultural differences of body language
Smiling: Indicating that someone is happy in Western cultures, but can mean that a person is embarassed in many Asian cultures
Eye contact: Important during conversation in Western cultures, but can be seen as rude in many Asian and African cultures. In Japan, it is common to close your eyes when you are listening intently, whilst in most other countries it will be seen as rude
Hand gestures: Very expressive in e.g. Italy, but opposite in Germany and the UK
Left or right hand: In the Middle East and some Asian countries, the left
hand has a negative connotation and so the right hand must be used for e.g. giving something to someone
What are virtual teams and global virtual teams?
A virtual team is a group of individuals who predominantly use technology to communicate, collaborate, share information, and coordinate efforts to achieve common work goals
When members are internationally disperse, we talk about a global virtual team (GVT)
Name some organizational opportunities and challenges of global virtual teams
Opportunities: leverage talent, increased adaption to the global economy, increase diversity of perspectives, improve work-life balance job satisfaction, decrease travel and mandatory relocation
Challenges: lack of participation, lack of engagement, lack of ownership. This can be due to traps of isolation (reduced contact), fragmentation (unclear purpose), and confusion (too much or too little communication)
Name the 6 C’s of global collaboration and how they are enabled in terms of managing global virtual teams
Cooperation, Communication, Cultural Intelligence, Capability (ability to leverage knowledge), Coordination, Convergence (clear purpose and direction)
In terms of global value teams, the teams must be managed so that they avoid the traps of isolation, fragmentation, and confusion, and go to engagement, cohesion, and clarity instead
Name some causes of culture shock
Stress reactions, cognitive fatigue, role shock, personal shock
What is Mudharabah, Takaful, and Tubarru?
Mudharabah: The idea of borrowing is replaced by that of joint operation. Both parties share the risk of the operation.
Takaful: Means ‘guaranteeing each other’ or ‘joint guarantee’. These practices are acceptable because they do not allow individuals to benefit from the misfortune of others
Tubarru: Mutual insurance funds are based on the idea of tubarru, which means ‘gift’
In case of communication, Britain (UK) is a…?
High-context culture and a indirect language culture
In terms of time and language, Germans are…?
Monochronic and direct
Explain the Italian term ‘clientelismo’?
Personal relationships and references are crucial. Italians prefer to do business with people they know or with companies they have been introduced to by people they can trust
When Russians negotiate, the negotiation strategy is usually a situation of…?
Win-lose. Very competitive and even aggressive
Explain the Russian term ‘blat’
Blat entails the use of personal networks to access scarce resources in exchange of gifts, money or other favours. It is network-corruption
In Portugal, the influence of family groups is…? And in terms of negotiations, the pace is…?
Highly significant, especially in the major sectors (banking, distribution and construction)
Negotiations are slow-paced
Would you say that the US is etnocentric?
In negotiations, the focus is on….?
Yes, Americans, in general, are faily ethnocentric
The focus is on profitability
When doing business in Mexico, the language is…? And the pace of decision making is….?
Indirect and slow
In terms of Gesteland’s model, Latin America is mainly…?
Relationship-focused, formal, polychronic, expressive
In Argentina, the organizational structure of companies is usually…?
Very hierarchical.
Explain the Chinese term ‘guanxi’?
Guanxi is all about the importance of the group and relationships
In China, language and communication are….?
Indirect and high-context
Explain the Japanese term ‘kankei’
The Japanese version of guanxi, however, based on relationships that are rational and logical
Explain the Japanese term ‘ringi’
Ringi is a collective decision-making process involving the circulation of a document (ringi-sho), which has to be signed by all people implemented in the decision-making
Why is Kazakh clanism different from e.g. blat, clientelismo, and guanxi?
It builds on some of the same principles, but it is extremely concentrated on the importance of kin-relationships, which are important in all kind of decisions
Explain the South African ‘ubuntu’ philisophy in terms of business
Ubuntu is based on the idea of considering the company as a community, not as a mere sum of individuals. Thus, the role of the company is not to reward the interests of the individuals who comprise it, but to reward the community and other communities to which it belongs
