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INTRODUCTION TO CULTURE CASO DE UN INVERSOR HOLANDES EN ARGENTINA
COMBINANDO TEORIA Y PRACTICACON ENFASIS SOBRE DIFFERENCIAS CULTURALES
Dr. Gert Jan Mulder DBA MBA
PILAR,
Noviembre 27, 2009
EL CIELO ES ….. … where the police are British
… the cooks are French
… the mechanics are German
… the lovers are Italian
… and football players are…
EL INFIERNO ES ….. … where the police are Italian
… the cooks are British
… the mechanics are French
… the lovers are German
… and football players are…
TODO DEPENDE DEL CONTEXTO!
ECONOMIAS Y CLIMA DE NEGOCIOS EN “EUROPA”;
PBI4
3
2
1
-time-
%
TODO DEPENDE DEL CONTEXTO!
CONTEXTO, ECONOMIAS Y CLIMA DE NEGOCIAS EN “AMERICA LATINA”;
ENTONCES, PARA MI, LO FUNDAMENTAL ES: Entender las diferencias culturales:
– Contexto, social, política, económica, financiera– Realidades – Perspectiva historia– Comportamiento humana
Da repuestas a las preguntas; POR DONDE VIENEN ESTAS DIFERENCIAS Y COMO LO PUEDES MANEJAR?
Cross-cultural studies and their practical implications - measuring differences:
Objectivos de la presentacion• Que es cultura? What is culture?• Literatura/teoria extensive literature review;
sobre todo Hofstede G., (1991) Cultures and organisations – Software of the mind; Intercultural cooperation and its importance for survival, McGraw-Hill, New York
• Presentacion del caso de un inversor holandes
“Possibly one of the many reasons why the culture concept has been resisted”, Hall (1976), writes, “ is that it throws doubt on many established beliefs. Fundamental beliefs….. are shown to vary widely from one culture to the next. It is easier to avoid the idea of the culture concept than to face up to it”
Cultural Research
Intercultural focuses on the penetration by a member of one culture into another culture
Cross-cultural deals with similarities and differences between cultures
– (Landis and Wasilewski, 1999)
Meaning of culture Culture one: (narrow sense) civilisation -
refinement of the mind: education, literature, language & arts
Culture two: Fundamental human processes, thinking, feeling, acting, greeting, eating, showing or not showing, distances, time, making love and many others– Hofstede (1980, 1991) Hall (1973)
Three levels of Mental programming (Hofstede, 1991)
PERSONALITY
CULTURE
HUMAN NATURE
Specific to individual
Inherited and learned
Specific to group or category
Universal
Learned
Inherited
Risk of stereotyping
French anthropologist, Claude Lévi-Strauss (1988), gave his definition of cultural relativism affirming that one culture has no absolute criteria for judging the activities of another culture as “low” or “noble”. However, every culture can and should apply such judgment to its own activities, because its members are actors as well as observers.
Hofstede Culture Consequences (1980)
IBM based research(VSM)116.000 questionnaires, 50.000 respondents, 40 countries
Surveys held twice 1968 and 1972 Role of symbol, heroes, rituals and
values Four dimensions (later five) of culture
Manifestations of culture
Symbols
Heroes
Rituals
Values
--Practices--
Dimensions of culture
· Power Distance · Individualism versus Collectivism · Femininity versus Masculinity · Uncertainty Avoidance and · Long-Term Orientation.
»Hofstede (1980, 1991)
The concept of power distance
1. The mere exercise of power will give satisfaction
2. The more powerful individual will strive to maintain or to increase the power distance to the less powerful person
3. The greater this distance from the less powerful person, the stronger the striving to increase it
4. Individuals will strive to reduce the power distance between themselves and the more powerful person
5. The smaller this distance from the more powerful person, the stronger the tendency to reduce it
6. The downward tendencies of the powerful to maintain the power distance, and the upward power distance reduction of the less powerful, reinforce each other.
Mulder (1977)
Core of culture is formed by values (Hofstede 1991) - and norms (Trompenaars 1998)
Values, defined by each culture in terms of “good” and “bad” (for example: dirty vs clean, ugly vs beautiful, unnatural vs natural, abnormal vs normal, irrational vs rational )
Norms, defined as the mutual sense a group has of what is “right”and what is “wrong” (example laws and rules, social control)
Trompenaars (1998) argues that a culture is relatively stable when norms reflect the values of a group. When not, destabilising tension occurs (Argentina).
Kluckhohn and Strodtbeck (1961) findings fundamental for Hall, Hofstede & Trompenaars)
Five universal problems to mankind, where all societies are aware of all possible kinds of solutions, but prefer them in different order:– What is the relationship of the individual to others?
(relational orientation)– What is the temporal focus of human life? (time orientation)– What is the modality of human activity? (activity orientation)– What is a human being's relation to nature? (Man-nature
orientation)– What is the character of innate human nature? (human
nature orientation) – (Kluckhohn and Strodtbeck (1961)
Interesting argument by Hall (1976)
………the natural act of thinking is greatly modified by culture. Western man uses only a small fraction of his mental capabilities; there are many different and legitimate ways of thinking; we in the West value one of these ways above all other - the one we call "logic", a linear system that has been with us since Socrates. Western man sees his system of logic as synonymous with the truth. For him it is the only road to reality.
CULTURES AND ORGANISATIONS “software of the mind”
(Geert Hofstede) More equal than others Inequality in society I, we and they He, she and (s) he What is different, is dangerous Confucian dynamism – and growth Conclusions
Cultural Differences between South America and the Netherlands…..
Power distance
Indivi- dualism
Masculinity
Uncertainty avoidance
Low High
Low High
Low High
Low High
Arg UruBrazNet
ArgUruBraz Net
ArgUru BrazNet
Arg UruBrazNet
Argentina UruguayBrazil Netherlands
Implications for the organisational structure ….
South America:
a pyramid
Netherlands:
a network
More equal than othersGeneral norm, family, school and workplace
SMALL POWER DIFFERENCE Inequalities among people should be
minimized Parents treat children as equals – and
vice-versa Teachers expect initiatives from students
in class Students treat teachers as equals Hierarchy in org. means an inequality of
roles, only for convenience Decentralization is popular Narrow salary range between top and
bottom org Subordinates expect to be consulted The ideal boss is a resourceful democrat Privileges and status symbols are
frowned upon(Holland’s prime minister going by bike, and camping)
LARGE POWER DIFFERENCE Inequalities among people are both
expected and desired Parents teach children obedience Children treat parents with respect Teachers are expected to take all
initiatives in class Students treat teachers with respect Hierarchy in org reflects the existing
inequality between higher ups and lower downs
Centralization is popular Wide salary range between top and
bottom org Subordinates expect to be told what to
do The ideal boss is an autocrat or good
father Privileges and status symbols for
managers are both expected and popular (Menem, Berlusconi, Sarkozy)
RESULTADOS DEL ENCUESTA USTEDES;
–PDI -6–IDV 69–MAS 65–UIA 61–LTO 39
PDI• Netherlands 38• USA 40• Hong Kong 68• ARGENTINA 49
IDV• Netherlands 80• USA 91• Hong Kong 25• ARGENTINA 46
MAS• Netherlands 14• USA 62• Hong Kong 57• ARGENTINA 56
UIA• Netherlands 53• USA 46• Hong Kong 29• ARGENTINA 86
LTO• Netherlands 44• USA 29• Hong Kong 96• ARGENTINA NA
More equal than othersIn politics and ideas
SMALL POWER DIFFERENCE The use of power should be legitimate
and is subject to criteria of good and evil Skills, wealth, power and status need not
go together The middle class is large All should have equal rights Powerful people try to look less powerful
than they are Power is based on formal position,
expertise and ability to give rewards Changing political system through
evolution Use of violence in domestic politics is
rare Political spectrum shows strong centre
and weak right and left wings Small income differentials in society
(progressive tax system) Management theories focus on role of
employees
LARGE POWER DIFFERENCE Might prevails of right: whoever holds the
power is right and good Skills, wealth, power and status should go
together (Berlusconi) The middle class is small The powerful have privileges Powerful people try to look as impressive
as possible Power is based on family or friends,
charisma, and ability to use force The way to change political system is by
changing people at the top (revolution) Domestic political conflicts frequently lead
to violence Political spectrum, of allowed to be
manifested, shows weak centre and strong wings
Large income differentials in society, further increased by tax system
Management theories focus on managers (and leaders)
I, WE AND THEYGeneral norms, family, school and workplace
Collectivist People are born into extended families or
other in-groups which continue to protect them in exchange for loyalty
Identity is based on social network to which one belongs
Children learn to think in terms of “we” Harmony should always be maintained
and direct confrontations avoided High context communication (Hall) Purpose of education is learning how to
do Diplomas provide entry to higher status
groups Relationship employer-employee is
perceived in moral terms, like a family link
Hiring and promotion decisions take employees in-group into account
Management is Management of groups Relationship prevail over task
Individualist Everyone grows up to look after him-
herself and his/her immediate (nuclear) family only
Identity is based on individual Children learn to think in terms of “I” Speaking one’s mind is a characteristic
of an honest person Low context communication (Standard
operating procedures) Purpose of education is learning how to
learn Diplomas increase economic worth
and/or self-respect Relationship employer-employee is a
contract supposed to be based on mutual benefits
Hiring and promotion decisions are supposed to be based on skills and rules only
Management is management of individuals
Task prevails over relationship
I, WE AND THEYPolitics and Ideas
Collectivist Collective interests prevails over
individual interest Private life is invaded by groups Opinions are predetermined by group
membership Laws and rights differ by group Low per capita GDP Dominant role of the state in economic
system Economy based on collective interests Political power exercised by interest
groups Press controlled by the state Imported economic theories largely
irrelevant because unable to deal with collective and particularistic interests
Ideologies of equality prevail over ideologies of individual freedom
Harmony and consensus in society are ultimate goals
Individualist Individual interest prevail over collectivist
interests Everyone has a right to privacy Everyone is expected to have a private
opinion Laws and rights are supposed to be the
same for all High per capita GDP Restrained role of the state in the
economic system Economy based on individual interests Political power exercised by voters Press freedom Native economic theories based on
pursuit of individual self-interests Ideologies of individual freedom prevail
over ideologies of equality Self-actualisation by every individual is
ultimate goal
HE, SHE AND (S) HEGeneral norms, family, school and workplace
Feminine DOMINANT VALUES IN SOCIETY ARE
CARING FOR OTHERS AND PRESENVATION PEOPLE AND WARM RELATIONSHIPS ARE
IMPORTANT EVERYBODY IS SUPPOSE DTO BE MODEST BOTH MEN AND WOMEN ARE ALLOWED TO
BE TENDER AND TO BE CONCERNED WITH RELATIONSHIPS
IN FAMILY BOTH FATHERS AND MOTHERS DEAL WITH FACTS AND FEELINGS
BOTH BOYS AND GIRLS ARE ALLOWED TO CRY, BUT NEITHER SHOULD FIGHT
SYMPATHY FOR THE WEAK AVERAGE STUDENT IS THE NORM FAILING IN SCHOOL IS A MINOR NORM FRIENDLINESS IN TEACHERS
APPRECIATED BOYS AND GIRLS STUDY THE SAME
SUBJECTS WORK IN ORDER TO LIVE MANAGERS USE INTUITION AND STRIVE
FOR CONSENSUS RESOLUTION OF CONFLICTS BY
COMPROMISE
Masculine DOMINANT VALUES IN SOCIAETY ARE
MATERIAL SUCCESSS AND PROGRESS MONEY AND THINGS ARE IMPORTANT MEN ARE SUPPOSED TO BE ASSERTIVE,
AMBITOUS AND TOUGH WOMAN ARE SUPPOSED TO BE TENDER
AND TO TAKE CASE OF RELATIONSHIPS IN THE FAMILY, FATHERS DEAL WITH
FACTS AND MOTHERS WITH FEELINGS GIRLS CRY, BOYS DON’T: BOYS SHOULD
FIGHT BACK WHEN ATTACKED, GIRLS SHOULDN’T FIGHT
SYMPATHY FOR THE STRONG BEST STUDENT IS THE NORM FAILING IN SCHOOL IS A DISASTER BRILLIANCE IN TEACHERS APPRECIATED BOYS AND GIRLS STUDY DIFFERENT
SUBJECTS LIVE IN ORDER TO WORK MANAGERS EXPECTED TO BE DECISIVE
AND ASSERTIVE RESOLUTION OF CONFLICTS BY FIGHTING
THEM OUT
HE, SHE AND (S) HEIn politics and ideas
Feminine Welfare society ideal The needy should be helped Permissive society Small and slow are beautiful Preservation of the environment
high priority Government spends large portion of
budget to development aid Government spends small portion of
budget on defence International conflicts to be resolved
through diplomacy and dialogue Large number of women in elected
political positions Women liberalization means that
mean and women should take equal shares both at home and at work (Sweden)
Masculine Performance society ideal The strong should be supported Corrective society Big and fast are beautiful Maintenance of economic growth
should have highest priority Government spends small portion of
budget to development aid Government spends large part to
defence International conflicts to be resolved
by a show of strengths or by fighting Relatively small number of women
in elected political positions Women liberalization means that
women will be admitted to positions hitherto only occupied by men
WHAT IS DIFFERENT IS DANGEROUSGeneral norms, family, school and workplace
Weak uncertainty avoidance: Uncertainty is a normal feature of life and
each day is accepted as it comes Los stress: subjective feeling of well-
being Aggression and emotions should not be
shown Comfortable in ambiguous situations and
with unfamiliar risks Lenient rules for children on what is dirty
and taboo What is different, is curious Students comfortable with open-ended
learning situations Teachers may say; “I don’t know” There should not be more riles than
necessary Time is a framework of orientation Comfortable feeling when lazy; hard-
working only when necessary Precision and punctuality have to be
learned Motivation by achievement and esteem
Strong uncertainty avoidance The uncertainty inherent in llife is felt as
a continuous threat which must be fought High stress: subjective feeling of anxiety Aggression and emotions may at proper
times and places be ventilated Acceptance of familiar risks: fear of
unfamiliar risks Tight rules for children on what is dirty
and taboo What is different is dangerous Students comfortable in structured
learning situations and concerned with “the right answer”
Teachers supposed to have all the answers
Emotional need for rules, even if these will never work
Time is money Emotional need to be busy; inner urge to
work hard Precision and punctuality come naturally Motivation by security and esteem.
WHAT IS DIFFERENT IS DANGEROUSIn politics and Ideas
Weak uncertainty avoidance: Few and general laws and rules If rules cannot be respected, they should
be changed Citizen competence versus authorities Citizen protest acceptable Citizen positive towards institutions Civil servants positive towards political
process Tolerance, moderation Positive towards young people Regionalism, internationalism, attempts
to integrate minorities Belief in generalists and common sense Many nurses, few doctors One group’s truth should not be imposed
on others Humans rights: nobody should be
persecuted for their beliefs Science: relativism and empiricism Scientific opponents can be personal
friends
Strong uncertainty avoidance Many and precise laws and rules If rules cannot be respected, we are
sinners and should repent Citizen incompetence versus authority Citizen protest should be repressed Citizen negative towards institutions Civil servant negative towards political
process Conservatism, extremism, law and order Negative attitudes towards young Nationalism, repression of minorities Belief in experts and specialisation Many doctors, few nurses There is only one truth and we have it Religious, political and ideological
fundamentalism and intolerance (K) Tendency towards grand theories Scientific opponents cannot be personal
friends
Confucian dynamism – and growth
Confucianism is not a religion, but a set of pragmatic rules for daily life derived from what Confucius saw as the lessons of Chinese History. Their principles being:– The stability of society is based on unequal relationships
between people: ruler—subject, father-son, older brother – younger brother, husband – wife, senior friend – junior friend
– The family is the prototype of all social organizations; all members to a group (not losing face, or dignity)
– Virtuous behaviour towards others consists of not treating others as one would not like to be treated oneself
– Virtue with regard to one’ tasks in life consists of trying to acquire skills and education, working hard, not spending more than necessary, being patient and persevering.
Confucian dynamism – and growth
Short term orientation: Respect for traditions Respect for social and status
obligations regardless of costs
Social pressure to keep up with the Joneses, even if it means overspending
Small savings quote, little money for investment
Quick results expected Concern with face Concern with possession the
truth
Long term orientation Adaptation of traditions to a
modern context Respect for social and status
obligations, within limits Thrift, being sparing with
resources Large savings quote, funds
available for investment Perseverance towards long
term results Willingness to sub-ordinate
oneself for a purpose Concern with respecting the
demands of virtue
DISTRIBUTION OF THE BRAIN – and the problem of the President
Left Brain Right Brain Logical Random Sequential IntuitiveRational Holistic
Analytical SynthesizingObjective Subjective
Looks at parts Looks at wholes
FUKUYAMA- LOW and HIGH trust societies …..Later on I came across a notion by Fukuyama about trust[1];
he proposes that it is the social capital of a given country (or even area within a country) that defines how its economy functions. Along the way, he examines countries around the globe, but focusing primarily on China and Italy, France and Korea (as low-trust societies), and Japan, Germany and the United States (as high-trust societies). Economists express these differences in transaction costs: in high-trust societies these costs are low, given that people do what is expected of them, where in low-trust societies these costs are high, given that one needs to control what people do. There are some countries in Latin America where Presidents do not empower (or trust) neither ministers, institutions nor businesses and instead want to be in control themselves of practically everything, they sometimes even want to control the price of toilet paper.
[1] Trust: The Social Virtues and The Creation of Prosperity by Francis Fukuyama
DIFERENCIAS Y FORMAS DE LIDERASGO – LA PRACTICA
“Femininity” versus “Masculinity” Dilemas y “dualities” Normas y valores
?
LAS DOS MUJERES MAS PODEROSAS DEL MUNDO
Alemania – “machismo”