Cultural Differences

Session Four

Agenda

Culture Consequences of Culture for HRM Expatriates

What is Culture? Culture consists of patterned ways of

thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups, including their embodiments in artifacts; the essential core of culture consists of traditional ideas and especially their attached values.

What is Culture? Culture consists of patterned ways of

thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups, including their embodiments in artifacts; the essential core of culture consists of traditional ideas and especially their attached values.

Research on Culture Most important works on

culture come from … the Netherlands.

Hofstede research: questionnaire to all IBM offices around the world asking about cultural values

Five Dimensions of Culture

Individualism vs. Collectivism Individualism: ties between people are loose

and people look after their own interests

Collectivism: emphasis on social ties and bonds between people (people are part of cohesive groups)

Power Distance ‘The extent to which members of a society

accept that power in institutions and organizations is distributed unequally.’ (Hofstede, 1991)

Perceived distance between superior and subordinate.

Uncertainty Avoidance Reflects a society’s tolerance for situations of

uncertainty and ambiguity and the extent to which it tries to manage these situations by Providing explicit and formal rules and

regulations Rejecting deviant ideas and behavior

Masculinity vs. Femininity ‘Masculine’ social values: money,

achievement, recognition ‘Feminine’ social values: more concern for

people and quality of life In masculine societies the role between males

and females are more rigidly defined

Time Orientation (later added) Long-term orientation: values saving and

persistence in achieving goals. Hong Kong: high rate of per capita savings

Short-term orientation: maintaining personal stability or happiness and living in the present

How does Hong Kong score? A= True, B= False

1. Hong Kong scores relatively high in individualism.

2. Hong Kong scores low on uncertainty avoidance.

How do YOU score?

Cross-Cultural Values Survey

Agenda

Culture Consequences of Culture for HRM Expatriates

How Culture affects HRM Training of employees Motivation of employees Leadership and decision making Organizational structure

Training and Developing a Global Workforce

Table 15.1

Motivation

UK

Leadership and decision making MBO (Management by Objectives):

Management tool which motivates personnel by setting mutually agreed objectives between a boss and his/her subordinates.

Requires low power distance Also, in feminine cultures more emphasis on

consensus.

Organizational Structure

Cultures in Hong Kong Relatively less heterogeneous in Hong Kong than in

the US or Europe Major race components in Hong Kong firms

Local Hong Kong residents Mainland Chinese Taiwan Chinese Caucasians Indian or Pakistanis Southeast Asians Black

Hong Kong firms are highly export oriented.

Cultural diversityPrevious session: Lack of cohesiveness leads to:

Lower levels of participation within a group Lower levels of conformity to group norms Less emphasis on group goal accomplishment

In short: Team will be less effective How to manage cultural diversity?

One framework: The Johari Window

Managing cultural diversity: The Johari Window

OPEN

HIDDEN

BLIND

UNKNOWN

KNOWN TO SELF UNKNOWN TO SELF

KNOWN TO OTHERS

UNKNOWN TO OTHERS

Managing cultural diversity: The Johari Window

OPEN

HIDDEN

BLIND

UNKNOWN

KNOWN TO SELF UNKNOWN TO SELF

KNOWN TO OTHERS

UNKNOWN TO OTHERS

Managing cultural diversity: The Johari Window

KNOWN TO SELF UNKNOWN TO SELF

KNOWN TO OTHERS

UNKNOWN TO OTHERS

OPEN

HIDDEN

BLIND

UNKNOWN

FEEDBACK

DISCLOSURE

Test Your Knowledge Employees from a high-power distance culture would

feel most comfortable in a training class that:

a. Involved several group activities with classmates

b. The teacher was the expert and responded definitively to all questions

c. The teacher acted as a facilitator of group discussion

d. None of the above

Agenda

Culture Consequences of Culture for HRM Expatriates

Foreign Assignments Would you consider taking a

foreign assignment for a 6 months to 1 year duration?A=Yes, B=No

Before you took on a foreign assignment, what would you want to know?

Cross-Cultural PreparationTraining to prepare employees and their family

members for an assignment in a foreign countryThree phases:

Preparation – language instruction and an orientation to the foreign country’s culture

Assignment – combination of formal program and mentoring to understand the foreign country’s culture

Returning - providing information about the employee’s community and home country workplace

Emotional Cycle Associated with a Foreign Assignment

Emotional Cycle Associated with a Foreign Assignment

0 1 2 3 4 5 6Months in Foreign Culture

Mood

Low

HighHoneymoon

Culture Shock

Learning

Adjustment

Managing ExpatriatesIn the US, 16-40% of expatriates do not

complete their assignmentChallenges with managing expatriates include:

SelectionPreparingCompensatingManaging Performance Repatriation

Selecting Expatriate ManagersA successful expatriate

manager must have the ability to: Maintain a positive self-

image Foster relationships with

the host-country nationals Perceive and evaluate the

host country’s environment accurately

Compensating Expatriates

RepatriationRepatriation

The process of preparing expatriates to return home from a foreign assignment

Activities that support repatriation:CommunicationValidation

Test Your Knowledge

John, an expatriate working in Hong Kong is feeling very uncomfortable in his surroundings. He often feels as if he has said the wrong thing. John is most likely in which emotional stage of expatriation:

a. Honeymoon

b. Culture shock

c. Learning

d. Adjustment

Brief Introduction to Hot Seat Case 8Cultural Differences Michael, Director at Mustang Jeans (US). Norio, Vice President at PopWear (Japan).

Norio has been working on a deal with Michael’s predecessor, Roger. Michael has just taken over the position. Norio and Michael have their first meeting at Mustang Jeans’ headquarters.

Guest Speaker: Dana Breitenstein 15 years of experience in inter-

cultural training and consulting Director Intercultural Services, Asia

Pacific, Cartus Speaks English, Swedish, Japanese and

learning Mandarin M.Sc. from Columbia University