Major Project - 1415246 Intercultural conflicts

ANGLIA RUSKIN UNIVERSITY Dissertation Declaration

Title of Award

MSc International Business ____________________________________

Date

25 September 2015 ____________________________________

SID Number

1415246 _____________________________________

Name of Supervisor

Dr. Beatriz Acevedo _____________________________________

Title of Dissertation

Intercultural conflicts within multinational companies based in the United-States between French expatriates and American workers

_____________________________________

Word Count

14 910 _____________________________________

DECLARATION: I declare that the above work is my own and that the material contained herein has not been substantially used in any other submission for an academic award. Signed: Date: 25th September 2015

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Abstract

Purpose – The purpose of this dissertation is to know how international businesses in the

United-States can manage efficiently cultural differences with French expatriates in order to

better resolve intercultural conflicts.

Design/methodology/approach – The authors uses two methods in order to compare and

analyse cultural differences. The two methods are Hofstede’s cultural dimensions and

GLOBE Project. Through the two studies, the purpose is to point out solutions to handle these

cultural differences efficiently.

Findings – Results are significant. France and the United-States are two cultures different in

terms of rules, hierarchical power, and relationships. Cultural differences have a real impact

on HR practices and workers. Manage expatriate and adapt HR practices in accordance with

the two cultures are the key to success.

Research limitations – Values gathered from the two studies are statistical data and do not

always reflect reality. Also, outcomes of some research about culture may vary according to

the author because of ethnocentric pattern and provide bias or misinterpretation.

Originality/value – This research contributes to bring solutions to managers and Human

Resources Management about intercultural conflicts and management of French expatriates in

the United-States.

Keywords Culture, Cross-cultural management, Intercultural Conflicts, International Human

Resource Management, Cultural Dimensions, France, The United-States, Expatriates.

Paper type Research paper

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Table of Contents

I. List of Tables ..................................................................................................... Page V

II. List of Figures ................................................................................................... Page VI

III. List of Abbreviations ......................................................................................... Page VII

IV. Acknowledgments ............................................................................................. Page VIII

1. Introduction .......................................................................................................... Page 1

1.1 Background ....................................................................................................... Page 1

1.2 Purpose of the study and Research Questions and Objectives ............................. Page 2

1.3 Content .............................................................................................................. Page 4

2. Literature Review ................................................................................................. Page 5

2.1 Cross-cultural Management ............................................................................... Page 5

2.2 Conflicts ............................................................................................................ Page 6

2.3 Intercultural Conflicts ........................................................................................ Page 7

2.4 International Human Resource Management ...................................................... Page 8

2.5 Framework for analysis: Hofstede’s Cultural Dimensions .................................. Page 9

2.6 Framework for analysis: GLOBE Project ........................................................... Page 9

3. Methodology ........................................................................................................ Page 10

3.1 Introduction ....................................................................................................... Page 10

3.2 Research Method and Design ............................................................................. Page 10

3.3 Data Collection .................................................................................................. Page 12

3.4 Research Questions ............................................................................................ Page 13

3.5 Data Analysis .................................................................................................... Page 14

3.6 Limitations ........................................................................................................ Page 14

3.7 Summary ........................................................................................................... Page 15

4. Cross-cultural Management and International Human Resource

Management (IHRM) ........................................................................................... Page 16

4.1 Explanation of Culture, Socialisation and Normative Behaviour ........................ Page 16

4.2 Selected Models of Cultural Dimensions............................................................ Page 18

4.3 Hofstede’s Cultural Dimensions ......................................................................... Page 20

4.4 GLOBE Project ................................................................................................. Page 21

4.4.1 Measurements .......................................................................................... Page 22

4.4.2 Practices and Values ................................................................................ Page 23

4.5 Comparison between GLOBE and Hofstede’s Cultural Dimensions ................... Page 24

4.6 International Human Resource Management ...................................................... Page 25

5. French and American cultures: Presentation and Comparison Between The

Two Cultures ........................................................................................................ Page 27

IV

5.1 France and the United-States Comparison Through Hofstede’s Cultural

Dimensions ........................................................................................................ Page 28

5.1.1 Power Distance (PDI) .............................................................................. Page 29

5.1.2 Individualism (IDV) ................................................................................ Page 30

5.1.3 Masculinity (MAS) .................................................................................. Page 30

5.1.4 Uncertainty Avoidance (UAI) .................................................................. Page 31

5.1.5 Long-term Orientation (LTO) .................................................................. Page 31

5.1.6 Indulgence (IND) ..................................................................................... Page 32

5.2 Comparison Between France and The United-States Through GLOBE

Project ............................................................................................................... Page 33

5.2.1 Assertiveness ........................................................................................... Page 34

5.2.2 Future Orientation.................................................................................... Page 35

5.2.3 Performance Orientation .......................................................................... Page 35

5.2.4 Humane Orientation................................................................................. Page 35

6. Intercultural Conflicts Within American Multinational Companies Between

French and American Workers.............................................................................. Page 36

6.1 How Intercultural Conflicts Arise? ..................................................................... Page 36

6.2 Types of Intercultural Conflicts.......................................................................... Page 39

6.3 Consequences of Intercultural Conflicts ............................................................. 0

7. Resolution of Intercultural Conflicts within Workgroups: a challenge for

IHRM and workers ............................................................................................... Page 41

7.1 Impact of Cultural Dimensions on Human Resource Management

Practices...................................................................................................................... Page 42

7.1.1 Recruitment and selection policies ............................................................ Page 43

7.1.2 Training policies ....................................................................................... Page 44

7.1.3 Pay and Allowances policies ..................................................................... Page 45

7.1.4 Performance Appraisal .............................................................................. Page 46

7.2 French Expatriates Adjustment for better cross-cultural adaptation .................... Page 47

7.2.1 Selecting expatriates.................................................................................. Page 47

7.2.2 Training expatriates and American workers ............................................... Page 48

7.3 Cultural Stepping Stones Model ......................................................................... Page 48

7.4 The Different Ways to Resolve intercultural Conflicts in Relation to The

Culture ............................................................................................................... Page 50

8. Conclusion............................................................................................................ Page 51

9. References ............................................................................................................ Page 54

V

I. List of Tables

Table 1: Selected models of cultural dimensions ......................................................... Page 19

Table 2: The GLOBE Study Cultural Dimensions ....................................................... Page 23

Table 3: Correspondence between Hofstede and GLOBE ........................................... Page 24

Table 4: Central tendencies of core cultural dimensions across Anglo and

Latin European regions ............................................................................................... Page 27

Table 5: France in comparison with the United-States,

Hofstede’s Cultural Dimensions ................................................................................. Page 28

Table 6: Score in values and practices for the GLOBE Study (France and the USA) ... Page 33

Table 7: Score in values for the GLOBE Project (France vs. USA) ............................. Page 34

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II. List of Figures

Figure 1: Level of mental programming ...................................................................... Page 17

Figure 2: Culture Clusters in the GLOBE Study ......................................................... Page 22

Figure 3: Model of IHRM ........................................................................................... Page 26

Figure 4: Sources of intercultural conflict ................................................................... Page 37

Figure 5: The Cultural Stepping Stones model ............................................................ Page 49

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III. List of Abbreviations

EI: Emotional Intelligence

GLOBE: Global Leadership and Organizational Behavior Effectiveness

HCN: Host-Country National

HRM: Human Resource Management

IDV: Individualism

IHRM: International Human Resource Management

IND: Indulgence

LTO: Long-term Orientation

MAS: Masculinity

PCN: Parent-Country National

PDI: Power Distance

TCN: Third-Country National

UAI: Uncertainty Avoidance

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IV. Acknowledgements

The author wishes to express his deepest appreciation to all those who provided him the

possibility to complete this dissertation. A special gratitude to his supervisor, Dr. Beatriz

Acevedo, whose contribution in stimulating suggestions and encouragement, helped him to

coordinate his major project especially in writing this dissertation.

Moreover, the author would also like to acknowledge with much appreciation the

crucial role of the staff of Anglia Ruskin University, who gave the permission to use all

required equipment and the necessary material to write the dissertation.

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1. Introduction

1.1 Background

In this introduction, the author wants to explain why explore cultural differences

between France and the United-States. More and more French workers attempt to take the

plunge and live the “American dream”. Weak dynamism, taxes very high, fear of risk, or

insufficient assistance, France has become a country where entrepreneurial activity is low

(Estay, 2004).

It is also important to underline the current climate. In today’s world, big firms want to

save money by relocating businesses. This is the phenomenon of globalisation. According to

Steger, globalisation is ‘social processes that are changing our current social condition based

on the modern system of independent nation-states’ (Steger, 2005, p.13). In addition,

‘globalization is about the unprecedented compression of time and space as a result of

political, economic, and cultural change, as well as powerful technological innovations’

(Steger, 2005, p.13). Globalisation change our world, and companies have to find solutions to

be the most efficient as possible.

With the process of globalisation the last decades, ‘Organizations in the U.S. are

becoming more culturally diverse. One reason for this is that they are increasingly operating

in a global environment. In view of the changing nature of workforce in organizations,

researchers have argued that multiculturalism offers substantial benefits in terms of

increased creativity, improved decision-making, and broader markets for products and

services’ (Adler, 1983; Cox, 1993).

Construction of nationally diverse workgroups is due sometimes to the search of skilled

employees coming from all around the world. Furthermore, since workgroups are increasingly

operating in multinational contexts (Earley and Mosakowski, 2000; Milliken and Martins,

1996), it is important to understand how national diversity may affect groups and group

outcomes. Research on diversity, in general, has found that diverse groups often prove

ineffective at capitalizing on the potential benefits of their diversity for a variety of reasons

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such as lack of social integration and high turnover (Jackson et al. , 1991; O’Reilly et al. ,

1989), conflict (Jehn et al. , 1999), competition (Reagans, 2005), and demographic differences

(Alexander et al., 1995). Then, diversity may leads to conflicts. In this case, we talk about

intercultural conflicts.

In other words, the author of this dissertation wants to be focused on conflicts and more

particularly on intercultural conflicts. Conflict has been broadly defined as perceived

interpersonal incompatibilities or discrepant views (Deutsch, 1973). Intercultural conflicts

represent differences in cultural values and beliefs that place people at odds with one another.

(Jonathan H. Turner, 2005, p. 87).

Therefore, in the US, organisations such as multinational companies are becoming more

culturally diverse. It is a stake for the U.S which have to face up to multiculturalism and

diversity. Diversity offers a lot of benefits and can also affect groups and group outcomes.

Multiculturalism and diversity lead sometimes to conflict if we have in the workgroup a poor

cross-cultural adaptation (Jassawalla, Truglia and Garvey, 2004). According to Jitske Kramer

and Karin Brugman (2010), intercultural conflicts arise when we deny to look at prejudices

and judgments about other cultures, and forbid ourselves to look at them. All of these

statements are liable to lead to intercultural conflicts. It is important to bear in mind these

terms to understand how intercultural conflicts could arise.

1.2 Purpose of the study and Research Questions and Objectives

The topic of intercultural conflict has been studied from different disciplines and the

aim of this dissertation is to present an updated literature review about intercultural conflicts

focused on the texts published about American and French workers within multinational

companies based in the United-States. In other words, the interest is to know how

international businesses in the United-States can manage efficiently cultural differences with

French expatriates in order to better resolve intercultural conflicts.

https://en.wikipedia.org/wiki/Culture

https://en.wikipedia.org/wiki/Value_(personal_and_cultural)

https://en.wikipedia.org/wiki/Belief

https://en.wikipedia.org/wiki/Jonathan_H._Turner

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The main issue for multinational companies is the need to manage the challenges of

global efficiency and multinational flexibility (Bartlett and Goshal, 1991). Michael Armstrong

defined a multinational company such as ‘an international firm is one in which operations

take place in subsidiaries over-seas, which rely on the business expertise or manufacturing

capacity of the parent company’ (2006).

Nowadays, with the process of globalisation, International Human Resource

Management of multinational companies have to face up to some issues that are the impact of

globalisation, the influence of environmental, cultural differences and the extent to which

HRM policy and practice should vary in different countries, and manage expatriates (Michael

Armstrong, 2012). These problems have to be resolved efficiently. This dissertation will be

useful to give some solutions to resolve these issues that IHRM and managers could

encounter.

Culture and Cross-cultural management are important parts of this dissertation. Cross-

cultural management is important to understand why people from different cultures share

different norms, beliefs or values. It is also important to define the theories and set the context

regarding this dissertation. According to Hofstede, ‘Culture is more often a source of conflict

than of synergy. Cultural differences are a nuisance at best and often a disaster.’ - Dr. Geert

Hofstede

Furthermore, diversity increases and multinational companies have also to face up to

cross-cultural management, and international human resources management in order to

resolve intercultural conflicts.

At this stage, several research questions arise:

- What are the cultural differences between France and the USA?

- How IHRM within multinational companies based in the United-States can deal with

these cultural differences?

- What are the nature of intercultural conflicts and how to resolve them?

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In order to answer to these questions, the author is going to talk about cross-cultural

management, cultural differences and International Human Resource Management.

1.3 Content

The fourth part is useful to define these two concepts and culture. These concepts allow

us to understand interaction of people from different countries within a workgroup or same

organisation. Cross-cultural management and IHRM are integral parts of multinational

companies because of globalisation and emergence of multiculturalism these last decades

within multinational corporations.

In this part, two models of cultural dimensions are presented: the aim is to compare

cultural differences between two countries. The two models studied are Hofstede’s cultural

dimensions and GLOBE Project. The interest will be to know if these methods can provide

consistent and reliable results.

The author will also present a model of IHRM based on Morgan theories. It is useful to

understand which activities change when HRM goes international. This model will allow the

reader to recognise the main activities of IHRM following the country and the type of

employees.

The fifth part will provide, through Hofstede model and GLOBE Project, a comparison

between the United-States and France in terms of cultural differences. Cultural differences

will be the framework to understand how intercultural conflicts emerge and how to resolve

them efficiently. Cultural differences are a prevalent sources of contention in intercultural

conflict (Ting-Toomey, 2001, p.106).

Then, the author will be able to gather information to answer to the question: what are

the cultural differences between France and the United-States? The next part gives a

definition of intercultural conflicts and explain how they arise? This part will take in

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consideration the previous chapter in order to emphasise the cultural differences that lead to

intercultural conflicts. However, why intercultural conflicts arise between French and

American workers? Why they act differently? Then, what are the consequences of

intercultural conflicts?

Since cultural differences seem to lead into and feed conflicts, what are the solutions to

allow expatriates (French workers) to handle more efficiently intercultural conflicts? Are

there any solutions to resolve intercultural conflicts? The last part will show different

techniques and models to resolve intercultural conflicts.

Besides, International HRM has to take in consideration the needs of the two cultures in

order to propose solutions to resolve conflicts. In other words they have to adapt their main

areas in function of cultural dimensions/differences in order to manage intercultural conflicts.

2. Literature Review

2.1 Cross-cultural Management

Cross-cultural management is defined by Veronica Velo as following: ‘cross-cultural

analysis helps to understand where the other party is coming from and the frameworks allow

us to formulate hypothesis that should allow us to tolerate, understand and find avenues for

conflict avoidance and resolution. Rather than stereotype…’ (Velo, 2012, p.41). Cross-

cultural management seeks to understand how national culture affect management practices. It

is useful to identify similarities and differences across culture in organisational contexts and

management practices. Cross-cultural management allow companies to increase effectiveness

in global management.

The main element of this dissertation is the word “culture”. All in this paper is about

culture and cultural differences. Several definitions of culture exist, nonetheless the GLOBE

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researchers defined culture as shared motives, values, beliefs, identities, and interpretations or

meanings of significant events that result from common experiences of members of

collectives that are transmitted across generations (House et al., 2004). However, conflicts do

not always mean negative aspect. Indeed, most of the time, conflicts are inevitable and allow

us to move forward and find solutions.

In this paper, it is question about intercultural conflicts and International Human

Resource Management. The author wants to show the cultural differences between two

countries that are France and the United-States. The aims of this dissertation are to know how

to resolve intercultural conflicts within a workgroup in a multinational company and how

IHRM can deal with these cultural differences between the two countries.

2.2 Conflicts

Several authors suggested that conflict is detrimental to organisational functioning

(Blake and Mouton, 1984; Wall and Nolan, 1986). In 1997, Jehn defined three main types of

conflict: the first is relationship conflict, that it means conflict about interpersonal

incompatibilities among group members. The second type is task conflict; it may develop in

workgroups due to disagreements among group members about the content of the tasks being

performed, including differences in ideas. Process conflict is the third type of conflict. It

involves logistical issues such as the assignments of responsibilities or resources, or the

setting of an agenda (Jehn, 1997).

However, some authors found that conflicts could be beneficial under certain

circumstances (Amason, 1996; Jehn and Bendersky, 2003). Nonetheless, some conflicts could

have positive or negative consequences for different task and group compositions. Therefore,

some conflicts such as relationship conflict are detrimental in multinational teams whereas

other types may be beneficial in a multinational such as task conflicts for example.

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2.3 Intercultural Conflicts

Now, it is useful to give the definition of an intercultural conflict. In 1992, Donohue and

Kolt defined conflict as: ‘A situation in which independent people express (manifest or latent)

differences in satisfying their individual needs and interests and they experience interference

from each other in accomplishing these goals’ (Donohue and Kolt, 1992). Jonathan H.

Turner defines it as a conflict caused by differences in cultural values and beliefs that place

people at odds with one another (2005, p. 87).

On a micro level, Alexander Grewe defines this conflict as one that occurs when

people's expectations of a certain behaviour coming from their cultural backgrounds are not

met, as others have different cultural backgrounds and different expectations (Grewe, 2005,

p.10). Intercultural conflict is a conflict with in addition to cultural perception about norms,

perceptions and practices (Jassawalla, Truglia and Garvey, 2004).

In other words, it is important to aim at nature and sources of intercultural conflicts.

Edgar H. Schein put emphasis on miscommunication and cultural misunderstandings that it

could originally be the nature of conflicts.

Regarding Edgar H. Schein, at the root of the issue, we are likely to find

communication failures and cultural misunderstandings that prevent the parties from framing

the problem in a common way, and thus make it impossible to deal with the problem

constructively (Schein, 1993). Edgar H. Schein explains intercultural conflicts emerge from

poor cross-cultural adaption and miscommunication.

First, it is important to split this paper into different parts complementary of each other.

It is also important to precise the author wants only study intercultural conflicts between

French and American workers within multinational companies. The differences noticed

between the two cultures will be the framework of this paper. Once, the cultural differences

observed, it will be easier to bring out solutions to resolve intercultural conflicts and to allow

IHRM to deal with these cultural differences.



https://en.wikipedia.org/wiki/Culture

https://en.wikipedia.org/wiki/Value_(personal_and_cultural)

https://en.wikipedia.org/wiki/Belief

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Understand how conflicts arise between French and American workers will be the way

to analyse and provide a better response thanks to some authors who have realised studies

about resolving intercultural conflicts or also the analysis of cultural differences such as Geert

Hofstede (Hofstede, 1980). All the parts present in this dissertation allow the reader to reflect

on issues regarding intercultural conflicts.

Through this dissertation, different concepts are broached in order to understand how

intercultural conflicts arise and how we can resolve them. The author wants to provide several

outcomes with the most impartiality without influence the reader.

Furthermore, increasing of intercultural conflicts and incapacity to resolve them are due

to the lack of knowledge about cultural differences. Indeed, culture impacts relationships and

business operations (Robert Moran et al., 2007). It is useful to explore these quotations in

order to determine the nature and causes of intercultural conflicts.

2.4 International Human Resource Management (IHRM)

Watson gave a definition of Human Resource Management (HRM): ‘HRM is the

managerial utilisation of the efforts, knowledge, capabilities and committed behaviours which

people contribute to an authoritatively co-ordinated human enterprise as a part of an

employment exchange (or more temporary contractual arrangement) to carry out tasks in a

way which enables the enterprise to continue into the future’ (2010).

According to Michael Armstrong, ‘International human resource management is the

process of employing, developing and rewarding people in international or global

organizations. It involves the world-wide management of people, not just the management of

expatriates’ (2006, p.99). Then, IHRM has to insist on that points in order to deal with

cultural differences and intercultural conflicts. In other words, this definition is important to

understand in which points IHRM has to be efficient to anticipate intercultural conflicts

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The relocation of multinational companies is a great advantage, however, several

problems have surfaced such as cross-cultural management and different human resource

management (HRM) policies and practices.

2.5 Framework for analysis: Hofstede’s Cultural Dimensions

Geert Hofstede who researched how people from different countries and cultures

interact. He based his model on six cultural dimensions. This model describes the effect of a

society’s culture on the value of its members.

After having known of cross-cultural management, assumptions about culture and

cultural dimensions, the author will be able to notice and emphasise cultural differences

between the two countries cited above. In this part, a real work will consist in differentiating

the two cultures through models and theories published by Geert Hofstede such as cultural

dimensions in the book Culture and organizations: software of the mind (Hofstede, 2010).

Another model of cultural dimensions will be tackled in order to be more accurate in terms of

culture differences. GLOBE Project presents some similarities compare to Geert Hofstede but

with variations. Hofstede model will allow the reader to deal with the analysis in depth in

order to point out cultural differences.

2.6 Framework for analysis: GLOBE Project

GLOBE is the acronym for “Global Leadership and Organizational Behavior

Effectiveness”. GLOBE Project has the same purpose than the other method that it means

compare cultures according to culture clusters. Nonetheless, this method include nine cultural

dimensions complementary to the another method.

Like Hofstede’s Cultural Dimensions, this framework will allow the author to point out

cultural differences between French and American workers within the same workgroup.

Since, cultural differences and poor-cross cultural adaptation are at the root of intercultural

conflicts, the author will be able to determine with precision what are the cultural differences

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between them and bring out outcomes. These results will be a response to the emergence of


After that, the interest for international businesses located in the United-States will be to

know how they can manage efficiently cultural differences with French expatriates in order to

better resolve intercultural conflicts.

Different solutions can be found to resolve intercultural conflicts. Several authors

propose tools for identifying core approaches for resolving conflict across cultural and ethnic

differences. The last part of the dissertation will propose theories that could be solutions in

resolving conflicts.

3. Methodology

3.1 Introduction

In this dissertation, the author wants to point out the cultural differences between France

and the United-States in order to handle intercultural conflicts and emphasise the main areas

of IHRM that have to deal with cultural differences. The methodology part includes a review

of the research method and design. In addition, this part presents the data collection and

analysis and takes in consideration the limitations about this research.

3.2 Research Method and Design

In this dissertation, the author uses two methods to point out cultural differences

between France and the United-States. All these cultural differences will be the framework to

understand and propose solutions to resolve intercultural conflicts. Before that, it will be

useful to compare cultural differences and see where France and the United-States are

different. It is important to insist on these differences to provide better analysis and bring

solutions to workers working together and International Human Resource Management,

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responsible for integration of expatriates and proper development of HR practices

internationally.

The two methods are Hofstede’s cultural dimensions and GLOBE Project. Hofstede’s

cultural dimensions is based on six cultural dimensions. This model describes the effect of a

society’s culture on the value of its members. The values obtained are related to behaviour.

This model is relevant to point cultural differences between cultures. GLOBE Project has the

same purpose than the other method. Nonetheless, this method include nine cultural

dimensions complementary to the another method. Some cultural dimensions in the two

methods measure the same cultural values (e.g. Power Distance).

The two models, will allow the author to analyse cultures in function of the country

studied. Also, it will be possible to identify the dimensions of national cultures and make a

comparison between French and American cultures. Once this work completed, the interest

will be to understand the way to deal with these cultural differences. International Human

Resource Management will be responsible for dealing with this issue. Also, it will be useful to

establish a link between all these theories and intercultural conflicts at work between French

and American workers. A good interpretation and implementation of cross-cultural

management will enable companies to better comprehend cultural differences and so on.

The next stage will be to underline cultural differences that have to be handled by

IHRM. Many conflicts emerge every day within multinational companies because of cultural

differences and poor cross-cultural adaptation (Jassawalla, Truglia and Garvey, 2004).

Because of this quotation, we can understand conflicts and intercultural conflicts come from a

lack of cultural adaptation and open-mindedness. Different factors contribute to generate

intercultural conflicts. The task of IHRM will be to identify cultural differences following the

different areas of IHRM and be able to adapt to practices in function of cultural dimensions.

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3.3 Data Collection

Regarding intercultural conflicts, many publications are available. It is a tedious work

for the author to gather and sort out all the data. Furthermore, it is even more difficult to take

in consideration only the data relevant to the study making possible the answers to the

research questions. A real effort has been made by the author in order to be close to the

reality. The author carries with different types of investigation. A large number of authors

deal with intercultural conflicts, cross cultural management and international human resources

management. The objective is to gather data from these books and articles in order to create a

correlation that it means the data are based on statistical technics. This type of investigation

enables the author to measure strength of relationship between variables. However, in this

dissertation, the aim is to compare and confront the results in order to answer efficiently to the

research questions.

The author of this dissertation uses secondary data that provides larger and higher

quality databases. Data have been already collected and recorded by someone else and readily

available from other sources. A large number of data allows the author to assess the quality of

studies and combine the data in an efficient way. Also, secondary data saves lots of time,

money and other resources. All the data are official and come from scholars or academics

papers. It allows the author to sort out and emphasise elements that are relevant.

A normal literature review is a good option to understand cultural issues because several

empirical studies have been published, and there is uncertainty about the results. It is

important to make a link between French and American culture in order to clarify cultural

differences. The literature chosen by the author is in relation with cross-cultural management,

and intercultural conflicts within multinational companies based in the United-States. Identify

the cultural differences will allow the author to understand how intercultural conflicts can

emerge. All the samples of books or articles will come up with these criteria of research.

To complete successfully the analysis, data will be collected from Hofstede’s cultural

dimensions and Globe Project. All data will be detailed and explained in order to answer to

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the research questions. Given that this study is based on secondary data, data have been

anonymised. Regarding the topic, it is a subject that does not touch directly individual person

but most organisational and human behaviour in general at the scale of companies. All results

gathered will be used for the purpose of research and not to punish or reprimand any persons.

The main interest of this survey is to obtain anonymous and non-personal information to

respond to a well-defined problem.

All the searches will be for the period 1980-2015. As the topic is intercultural conflicts

between French and American workers, the search will be restricted to the English language

research literature. In a previous review, several key words such as “international human

resources management”, “cross-cultural management”, “intercultural conflicts” and “conflicts

resolution” were used very often. Consequently, these key words should be the most sensitive

search strategy for this review. In other words, all these terms will be the frame for the

dissertation and will allow the author to answer efficiently and with precision to the research

questions.

3.4 Research Questions

At this stage, the research questions are:

- What are the cultural differences between France and the USA? This question is useful

to understand how intercultural conflicts arise.

- How workers and International Human Resource Management within the

multinational company can manage intercultural conflicts efficiently, in order to be

productive and use cultural differences as a strength?

- What are the nature of intercultural conflicts and how to resolve them?

The answer to theses research questions will allow the reader to understand and explain

all the steps defining intercultural conflicts since the nature and causes until the resolution of

them.

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3.5 Data Analysis

Exploiting these data collected from the two models presented above allow the author to

propose improvement in order to manage intercultural conflicts. The cultural differences will

have a considerable impact on IHRM and workers. That is why, IHRM and workers have to

take in consideration these information to be aware about the differences and use them as a

strength. The analysis will be realised in accordance with IHRM and workers. They will have

to recognise cultural differences in order to adapt their behaviours or practices to meet the

requirements of French expatriates and American workers.

In terms of guidelines, the author starts to explain the nature and causes that can lead to

intercultural conflicts such as miscommunication (Schein, 1993). Then, it is useful to talk

about culture difference between the United-States and France in order to compare and

analyse the cultural differences. Establish the cultural differences are easier to better

understand conflicts between American and French workers and resolve them more

efficiently. The last part of the dissertation will be the resolution of intercultural conflicts

proposed by several authors. By comparing the two cultures, the author is able to make a

comparison between the different groups, follow up them and bring out outcomes relevant for

the analysis and findings.

3.6 Limitations

For both studies, the author encountered the same difficulties. By using these methods

to compare and analyse cultural differences, they are subject to limitations. Even if Hofstede’s

work on culture is the most widely cited in existence (Bond, 2002; Hofstede, 1997), this

model and GLOBE Project were the subject of criticisms. Indeed, not everyone in a given

society is programmed in the same way and we can observe differences between individuals.

Hofstede, on the website The Hofstede centre, affirms that individuals could have bigger

differences in one country culture rather than the differences among all country cultures. Also,

“values” are statistical data and cannot describe “reality”. All these statements have to be

relative (the Hofstede centre).

15

Moreover, in general, most researchers judge another culture only by the values and

standards of their own culture (ethnocentric pattern) and they represent a single timeframe.

Eventually, these errors can provide bias, misinterpretation and inaccuracies (Lubrosky 1959,

p.326; Nasif et al. 1991, p.83-84).

It also important to emphasise the question of time. Cultures evolve with the time, and

the culture of a country at a certain time cannot be the same with the result at another time.

Furthermore another problem can be underlined; researchers tend to be focused on their

discipline only and do not take time to explore others disciplines to provide better results

closest to the reality (Nasif et al., 1991, p.83-84).

3.7 Summary

This dissertation is a normal literature review evaluating intercultural conflicts and

cross-cultural management within multinational companies. They are based in the United-

States and intercultural conflicts concern French expatriates and American workers. The aim

is to talk about intercultural conflicts between France and the USA. In general, within

companies, all the employees are confronted to conflicts. How to deal conflicts and manage

efficiently are an important issue for managers. The author of the dissertation wants to be

more focused on intercultural conflicts and conflicts between migrant workers from France

and American workers with an emphasis on cultural differences. Indeed, the author wants to

show the relation between cultural differences and emergence of intercultural conflicts, and

see how IHRM can be prepared to manage cultural differences.

In order to best carry out this study, the author of this paper will attempt to explain from

where conflicts emerge and what causes them. The main issue will be about communication

theories or different ways of working and the different types of conflicts that exist. In

addition, the author proposes several methods of conflict resolution. Various works cited

above in the literature review will provide answers for the manager and wishing to resolve

intercultural conflicts effectively and constructively. International Human Resource

16

Management will be involved in this dissertation. It will be useful to understand how IHRM

can deal with these intercultural conflicts and create a good atmosphere at work favouring

cultural wealth.

4. Cross-cultural management and International

Human Resources Management (IHRM)

4.1 Explanation of culture, socialisation and normative behaviour

First of all, it is useful to define what cross-cultural management is. Nancy J. Adler

defines cross-cultural management as ‘the study of the behaviour of people in organisations

located in cultures and nations around the world. It is essentially focused on description of

organisational behaviour within countries and cultures and also focused on the comparison

of organisational behaviour across countries and cultures. Cross-cultural management also

aims to be emphasised on the interaction of people from different countries working within

the same organisation or the same work group’ (Adler, 1983, p226).

Now, after having defined cross-cultural management Veronica Velo, in her book

Cross-cultural Management, gives a definition of Cross-cultural analysis. Cross-cultural

analysis is ‘used to understand where the other party is coming from and allow us to

formulate hypothesis that should allow us to tolerate, understand and find avenues for conflict

avoidance and resolution. Rather than stereotype’ (Velo, 2012, p.41).

The GLOBE project defines culture as ‘shared motives, values, beliefs, identities, and

interpretations or meanings of significant events that result from common experiences of

collectives and are transmitted across age generations’ (House et al., 2002, p. 5)

17

Geert Hofstede has defined the culture as the “collective programming of the mind”

(Hofstede, 1980, p.16) which distinguishes the members of one group or category of people

from another.

Figure 1: Level of mental programming:

Source: Adapted from Hofstede (2010), and Thomas and Inkson, (2003)

Different levels can be identified in the human mental programming. First of all, we

have the Human Nature that is universal and inherited. In other words, this “biological” stage

means all humans have a universal reaction to biological stimuli, such as fatigue and hunger.

The second level is the culture that is specific to group or category. And finally, we have the

personality that is specific to an individual, inherited and learned. Individual experiences are

unique and learned reactions and therefore differ across a spectrum of responses. So, we can

distinguish three levels in human mental programming.

The figure 1 represents the relationship between universal, cultural, and personal

preferences. Human nature is biological programming, characteristics that are part of human

nature. Personality are individual characteristics. Culture is between these two and the line

that separates them is at best blurred. The most important is to identify what is universal and

what is not. Misunderstandings can be the results of people who thinks values, beliefs or

18

assumptions are universals. That is the reason it is really important to identify cultural

differences in order to bring awareness to non-universal assumptions (Velo, 2010).

4.2 Selected models of cultural dimension

Because of the process of globalisation, researchers suggested we needed some kind of

tools or mechanism in order to compare cultural differences and similarities. These tools are

useful but they can be subjective according to how we analyse the different criteria. Then,

managers have to know which practices or behaviours will create barriers and which will

allow the creation of relationship, even if most of the time experts cannot reach an agreement

about comparing cultural differences (Hall, 1992). It can be useful as a starting point cross-

cultural understanding (Steers, Sanchez-Runde and Nardon, 2010).

Different models have emerged in the 1980’s in order to present differences and

similarities between cultures. Each models offers a different way to understand and measure

culture. Two models presented below show cultural dimensions, such as Power distance,

Individualism, or time perspective and so on. All these points allows us to compare and bring

out cultural differences. These models are useful for cultural analysis.

However, for several authors such as Richard M. Steers, Carlos J. Sanchez-Runde and

Luciara Nardon, it is hard to find the best model which suits for managers because of different

aspects used on these models. It depends also on which criterion we want to be focused. Also,

these models are likely to be focused on comparing central tendencies between cultures and

not enough on comparing the differences between each culture. In other words, the use of

cultural dimensions should only be considered the beginning of a more detailed study (Steers,

Sanchez-Runde and Nardon, 2010).

The table presented below is different models used to compare and analyse cultures. It

is a good instrument for us to analyse in details countries with specifics cultures. These two

models presented below will be the framework of the dissertation. It will allow the author to

point out cultural differences between France and the United-States.

19

Hofstede GLOBE Project

Power Distance: Beliefs about the appropriate

distribution of power in society. Power Distance: Degree to which people

expect power to be distributed equally.

Uncertainty Avoidance: Extent to which

people feel threatened by uncertain or

unknown situations.

Uncertainty Avoidance: Extent to which

people rely on norms, rules, and procedures

to reduce the unpredictability of future

events.

Individualism-collectivism: Relative

Importance of individual vs. group interests

in society.

Humane orientation: Extent to which people

reward fairness, altruism, and generosity

Masculinity-femininity: Assertiveness vs.

passivity; material possessions vs. quality of

life.

Institutional collectivism: Extent to which

society encourages collective distribution of

resources and collective action.

Time-orientation: Long-term vs. short-term

outlook on work, life, and relationships.

In-group collectivism: Extent to which

individuals express pride, loyalty, and

cohesiveness in their organisations and

families.

Indulgence: Indulgence stands for a society

that allows relatively free gratification of

basic and natural human drives related to

enjoying life and having fun.

Assertiveness: Degree to which people are

assertive, confrontational, and aggressive in

relationships with others.

Gender egalitarianism: Degree to which

gender differences are minimized.

Future orientation: Extent to which people

engage in future-oriented behaviours such as

planning, investing, and delayed gratification.

Performance orientation: Degree to which

high performance is encouraged and

rewarded.

Table 1: Selected models of cultural dimensions

Source: Adapted from House et al., 2004; Hofstede, 2001.

The two models presented above in the table 1 will allow the author to compare French

and American culture in order to bring out similarities and especially cultural differences that

are maybe originally sources of conflicts.

The author will analyse cultural differences through two models presented above:

GLOBE Project and Hofstede. Using the two models will allow us to obtain different

20

outcomes in order to provide to the reader a better analysis based on multiples data. Hofstede

dimension’s is well-known to describe managerial behaviours (Hofstede, 1982). However,

GLOBE studies are more recent (2004) and provide additional cultural attributes (Howell et

al., 2007; Javidan, Dorfamn, de Luque, & House, 2006).

4.3 Hofstede’s Cultural Dimensions

On the website “the Hofstede centre” (geert-hostede.com), this model is defined as

following:

‘The model of national culture consists of six dimensions. The cultural dimensions

represent independent preferences for one state of affairs over another that distinguish

countries (rather than individuals) from each other. The country scores on the dimensions are

relative, as we are all human and simultaneously we are all unique. In other words, culture

can be only used meaningfully by comparison’.

(Hofstede, Hofstede, Minkov, 2010)

The model consists of six dimensions such as:

- Power Distance (PDI): degree of equality or inequality, between people in the

country's society.

- Individualism vs Collectivism (IDV): degree the society reinforces individual or

collective, achievement and interpersonal relationships.

- Masculinity vs Femininity (MAS): degree the society reinforces, or does not reinforce,

the traditional masculine work role model of male achievement, control, and power.

- Uncertainty Avoidance Index (UAI): level of tolerance for uncertainty and ambiguity

within the society.

- Long Term Orientation vs Short Term Normative Orientation (LTO): focuses on the

degree the society embraces, or does not embrace, long-term devotion to traditional,

forward thinking values.

21

- Indulgence vs Restraint (IND): 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.

Sources: McSweeney, 2010; Hofstede, 2001; Hofstede, 2010.

4.4 GLOBE Project

According to Marcus W. Dickson, in his article Research on leadership in a cross-

cultural context (2003), he wrote:

‘Robert J. House is the Principal Investigator of GLOBE (the Global Leadership and

Organizational Behavior Effectiveness Research Project), and along with several co-

Principal Investigators and a multinational Coordinating Team, he leads a group of over 180

researchers from around the world in a study of interacting effects of leadership, societal

culture and organizational culture. Data have been collected from over 60 countries, using

surveys, unobtrusive measures, interviews, media analysis, and archival data (often from the

United Nations)’.

(Dickson, 2003)

The GLOBE researchers used data to put nations into cultural clusters. Countries that

are grouped are based on cultural similarities due to shared geography and climate conditions.

We can distinguish ten cultural clusters. In this dissertation, we will be essentially focused on

two cultural clusters that are Anglo Cultures and Latin Europe in which the USA and France

are part of these respectively. Figure 2 allows us to identify the ten cultural clusters.

Moreover, researchers identified nine cultural dimensions presented in the table 2.

22

Figure 2: Culture Clusters in the GLOBE Study

Source: Adapted from House et al., (2004).

According to Vas Taras, Piers Steel and Bradley L. Kirkman, GLOBE Study is

methodologically similar to other comparison studies, even if this study is unique: it measures

cultural values or “should be”, and cultural practices or “as is” separately and provides two

different sets of cultural indices (Taras, Steel and Kirkman, 2010, p.1331).

4.4.1 Measurements:

In order to measure and compare different countries, a scale was established from 1 to 7

for each nine unique dimensions. Logically, 1 is considered as a lowest score and 7 the

highest score.

23

In the next chapter, all the results regarding France and the United-States will be

studied and analysed so that we see how business values and practices vary across nations and

cultures. In other words, the analysis through the GLOBE Study will allow the reader to better

understand cultural differences between the two countries that can lead to intercultural

conflicts.

4.4.2 Practices and values:

As mentioned above, GLOBE Project measures cultural values and practices. When

researchers decided to use the results, they chose to rely on the values data alone. Indeed,

seven of the nine dimensions presented on the table 2, a negative relation appears between

values items and practices measures (Maseland, & Van Hoorn, 2008, p.4), indicating that

GLOBE elicited marginal preferences rather than values (Maseland & Van Hoorn, 2008;

Hofstede, 2006; Javidan, House, Dorfman, Hanges & Sully de Luque, 2006). In this

dissertation, the author will collect only values data. The interest is to collect the results

highlighted by the researchers.

Table 2: The GLOBE Study Cultural Dimensions; adapted from House et al. (2004)

The interest will be to use the two models to have a good opinion about the French and

American culture. All these models will allow us to compare and identify similarities and

differences between the two cultures. After that, we will try to show the correlation between

24

intercultural conflicts and national diversity or cultural differences (National diversity and

conflict in multinational workgroups: the moderating effect of nationalism, 2006).

4.5 Comparison between GLOBE and Hofstede cultural dimensions

The two models presented above are different but with some similarities. Our interest

is to use the two models in order to be more accurate and provide better outcomes. By

comparing and using these two models, the author tries to adopt a holistic approach to assess

its effects on quality management.

It is important to underline that Hofstede’s dimensions of national culture is the most

used method. However, GLOBE captures more comprehensively and less ambiguously the

elements of national culture (Vecchi and Brennan, 2011). The table 3 presented below shows

the correspondence between Hofstede and GLOBE.

Table 3: Correspondence between Hofstede and GLOBE

Source: Hofstede, 2005; Vecchi and Brennan, 2011

25

4.6 International Human Resource Management

In order to better understand the context in international business, the author defined

cross-cultural management with different models and theories. Now, we want to deal with

International Human Resource Management (IHRM) in depth that it means we try to focus on

aspects of HRM in multinational firms.

First of all, Michael Armstrong defines Human Resource Management: ‘it can be

defined in line with the original concept as a strategic, integrated and coherent approach to the

employment, development and wellbeing of the people working in organisations’. Also,

several activities are included in HRM. These major categories are:

- Selecting and Hiring Employees

- Paperwork and Orientation

- Training and Development

- Compensation (Remunerations and Benefits)

- Performance Appraisals

- Safety and Health

- Managing Legal Issues

(Suttle, 2009)

The author of this dissertation wants to show which activities change when HRM goes

international. A model developed by Morgan is relevant. Morgan presents IHRM on three

dimensions.

26

Figure 3: Model of International Human Resource Management

Source: Adapted from Morgan, 1986.

The first dimension represents the broad human resources activities such as

procurement, allocation and utilisation. The second dimension represents the national or

country categories involved in IHRM activities; the host-country where a subsidiary may be

located, the home-country where the firm is headquartered and ‘other’ countries that may be

the source of labour, finance and other inputs. The third dimension shows the three categories

of employees of an international firm; host-country nationals (HCNs), parent-country

nationals (PCNs) and third-country nationals (TCNs). Still, according to Morgan, IHRM is

defined as the interplay among these three dimensions (1986).

The context of internationalisation of multinational firms and shared cultures within

these companies generate new patterns in whom they have to assume. Multinational

companies staff who move across national boundaries with different roles within the

international firm’s foreign operations. We call these employees “expatriates”: they work and

temporarily reside in a foreign country (Dowling, Festing and Engle, Sr., 2013).

27

5. French and American cultures: presentation

and comparison between the two cultures

In this chapter, the author wants to compare French and American cultures. As the

author said in the chapter 4, the comparison between the two cultures will be made with two

studies such as Hofstede’s cultural dimensions and GLOBE Project. By comparing the two

cultures, it will appear cultural differences on which the author have to emphasise. With the

process of globalisation, we are inclined to be around people from different origins and

experiences.

Therefore, people are increasingly confronted with different ways of thinking, behaving

and feeling. If people cannot deal with this process of the cross-cultural communication, they

will feel insecure and threatened and intercultural conflicts will arise (Kramer & Brugman,

2009, p.1). Furthermore, Stella Ting-Toomey, in her book Managing Intercultural Conflict

effectively, she affirms cultural differences are a prevalent sources of contention in

intercultural conflict (Ting-Toomey, 2001, p.106).

In this dissertation, the author wants to be focused on Anglo Cultures and Latin Europe

Cultures. The next table shows the central tendencies of core cultural dimensions across the

two regions studied.

Table 4: Central tendencies of core cultural dimensions across Anglo and Latin European

regions.

Source: Steers, Sanchez-Runde, Nardon, 2010

Adapted from Ronen and Shenkar, 1985, and House et al., 2004.

28

Although central tendencies of core cultural dimensions are useful to obtain general

cultural trends across countries and regions, nonetheless, they are not a substitute for more

systematic in depth analysis such as Hofstede’s cultural dimensions or GLOBE Project. This

part will be useful to analyse French and American cultures and then make a detailed

comparison between them.

The two models presented in the first chapter will be studied separately (Hofstede and

GLOBE). After that, the author will identify cultural differences pointed out by the two

studies.

5.1 France and the USA comparison through Hofstede’s Cultural

Dimensions

First of all, it is necessary to proceed to do a national comparison by the two countries

concerned. A score is given for each country as shown in the table 5. For each part described

in the fourth chapter regarding the six cultural dimensions, a score is given. All outcomes

regarding this study will be a framework for the author and will allow us to highlight cultural

differences.

Table 5: France in comparison with the United-States, Hofstede’s Cultural Dimensions

Source: Hofstede, Hofstede, Minkov, 2010

29

Now, the results are going to be analysed and interpreted by means of two books:

Cultures and Organizations: Software of the Mind (Hofstede, G, Hofstede, G.J., Minkov,

2010), and Culture’s Consequences: Comparing Values, Behaviors, Institutions, and

Organizations across Nations (Geert Hofstede, 2001). These books are the framework of the

Hofstede’s cultural dimensions theory.

The model consists of six dimensions. By comparing the six dimensions also presented

in the Table 2, it will be easier to bring out cultural differences in the first place. The six

cultural dimensions are going to be analysed one by one.

5.1.1 Power Distance (PDI)

According to Hofstede’s study, France is a high power distance culture; whereas the

United-States are a medium/low power distance culture. In France, high power distance

culture indicates that inequalities of power and wealth have been allowed to grow within the

society. The French society is more likely to follow a caste system. This system does not

allow citizens significant upward. Furthermore, it means that people accepts a hierarchical

order. A high PDI implies a wide discrepancy in equality between the authorities and the

people. Within the company, it will be in the form of very formal interactions with managers.

The power is centralised and power is a scarce resource. In a country with high power

distance such as France, people feels that their lives are controlled by their authorities. They

avoid conflicts with their authorities.

Regarding the United-States, they seek equalisation of power, pursues inequalities. With

a low power distance, the USA de-emphasise the differences between citizen’s power and

wealth. In other words, equality and opportunity for everyone is emphasised. In this country,

minimal power differences can be noticed. Power can be achieved through work and the

hierarchy or line management at work is not rigid. A low PDI implies the authorities and the

people are being treated equally in the system (Hofstede, 1980). People also believes they

have control over their own lives and have more courage to disagree with the authorities

(Chan & Cheung 2008).

30

5.1.2 Individualism (IDV)

The concept of individualism and collectivism provides one means of distinguishing

broad differences in cultural values (Hofstede, 1980). France and the United-States are

individualist societies. In France, a high score on power distance and a high score on

individualism is unusual. Subordinates normally pay formal respect and show deference to

their boss. Then, they do the contrary behind their back, because they think they know better

the solution. A miscommunication between employers and employees is real. Also, people

needs to make a distinction between work and private life. Employees feel the pressure more

than in the US, because of their emotional dependence on what the boss says and does. With a

high score on power distance and collectivism, dependence is present in comparison with the

US.

Regarding the US, hierarchy is established for convenience within American

organisations. Furthermore, superiors are accessible and managers rely on employees and

work groups for their expertise and advice. Information is shared frequently and both

managers and employees expect to be consulted. However, communication is informal, direct

and participative to a degree. Sometimes, Americans do business with people they do not

know well. At work, employees are expected to be self-reliant and display initiative. We can

notice the contrary in France. Regarding human resources management practices such as

recruitment, promotion and decisions, all are based on merit.

5.1.3 Masculinity (MAS)

A low score (Feminine) means that the society takes care of others and quality of life

before taking care of itself. In this type of society such as in France, quality of life is the sign

of success. The welfare system, 35 hour working per week, five weeks of holidays per year;

all these elements try to underline the quality of life.

However, a high score (Masculine) indicates that the country is driven by competition,

achievement and success, based on merit and recognition. This value system starts early in the

31

people’s life and continue throughout their life. In the US, the score is high just like

individualism. Americans are individualist and masculine, that it means the success is

personal and individual. In other words, they are independent and responsible for their

success. Noticeable in the US, a “can-do” mentality is present which creates dynamism, and

let make Americans believe that it is always possible to do things in a better way. Also,

American mentality is work and it is essential. Most of the time, Americans “live to work”, so

it is easier to get promoted and obtain monetary rewards in order to attain a higher status.

Again, according to Americans, conflicts can bring out the best of people. The best will be the

winner; it is always a competition and people have to do their best if they want to be

considered.

5.1.4 Uncertainty Avoidance (UAI)

86 for France is a very high score, that it means the country has a low tolerance for

uncertainty and ambiguity. Within companies, structure and planning are required. Before

negotiations or meetings, they want to receive all the information available. Therefore, French

evolve in a stable environment and develop complex technologies. However, French adopt

strict codes of behaviour. France is a rule-oriented society that institutes laws, rules,

regulations, and controls in order to reduce the amount of uncertainty.

Regarding the US, with a low score of 46, that it means the country has more tolerance

for a variety of opinions. Americans are more tolerant of ideas or opinions from anyone and

allow the freedom of expression. Consequently, Americans do not require a lot of rules, more

readily accepts change, takes more and greater risks and also they are less emotionally

expressive than higher-scoring cultures such as France.

5.1.5 Long-term Orientation (LTO)

France, with a score of 63, means the society is focused on long-term orientation

whereas the US are short-term orientation society with a low-score. France prescribes to the

values of long-term commitments and respect for tradition. Long-term rewards are expected

32

as a result of today’s hard work. Nonetheless, business could take longer to develop in France,

especially for little companies.

In the United-States, with a low-score, changes can happen more quickly as long-term

traditions and commitments do not become impediments to change. Furthermore, American

businesses measure their performance on a short-term basis (quarterly results). This culture’s

characteristic push people to strive for quick results within the work place. Then, they hope an

immediate gratification.

5.1.6 Indulgence (IND)

People try to control their desires and impulses. Indulgence is the dimension that allows

us to know if people have a weak control (Indulgence) or a strong control of themselves

(Restraint). Countries, and consequently cultures can be describes as Indulgent or Restrained.

Society with a low-score such as France has a tendency to cynicism and pessimism.

France can be seen as a Restraint society; restrained countries do not allow time for leisure

and they control the gratification of their desires. In other hand, with a high Uncertainty

Avoidance, French are less relaxed and enjoy life less often than is commonly assumed. One

the other hand, with a high power distance, French feel also their actions are restrained by

social norms (caste) and think that indulging themselves are somewhat wrong.

Concerning the United-States, with a high-score of 68, the country is seen as an

indulgent society. It is true that Americans like enjoy their time and they are seen as

optimistic people.

33

5.2 Comparison between France and the United-States through GLOBE

Project

Now, after the author analysed the cultural dimensions regarding France and the USA

through Hofstede model, it is relevant to go into cross-cultural analysis in depth in order to get

more details in terms of cultural differences and particularities regarding the countries.

As we saw in the fourth part, table 3, Hofstede model and GLOBE Project have

similarities. After analysed the results from the GLOBE study, available in the appendices, it

is relevant to exploit the data not used for the Hofstede’s cultural dimensions that are Humane

Orientation, Future Orientation and Performance Orientation. The author will also be focused

on Assertiveness.

Before starting the analysis of the results regarding the GLOBE Study, the table 4 and 5

allow the reader to see the outcomes concerning the cultural dimensions between the two

countries. However, it is important to underline only Values results are taken in consideration

(cf. 4.4.2 Practices and Values).

France United-States

Dimensions Practices Values Practices Values

Uncertainty Avoidance* 4.66 4.65 4.15 3.99

Power Distance* 5.68 2.96 4.92 2.88

Institutional Collectivism* 4.20 5.27 4.21 4.20

In-Group Collectivism* 4.66 5.88 4.22 5.79

Gender Egalitarianism* 3.81 4.71 3.36 5.03

Assertiveness 4.44 3.57 4.50 4.36

Future Orientation 3.74 5.35 4.13 5.34

Performance Orientation 4.43 6.10 4.45 6.14

Humane Orientation 3.60 5.91 4.18 5.51

Table 6: Score in values and practices for the GLOBE Study (France and the USA)

Source: Adapted from House et al., 2004

Response bias corrected scores for societal cultural scales (House et al., 2004)

34

Higher scores indicate higher levels of this dimension.

*Similarities between Hofstede and GLOBE (cf. Table 3).

Table 7: Score in values for the GLOBE Project (France vs. USA)

Source: House et al., 2004.

All the interpretations and comments about the results regarding Assertiveness, Future

Orientation, Performance Orientation, and Humane Orientation come from the following

authors and websites: House et al., 2007; Grove, C.N. 2005; Virkus, V. 2009.

5.2.1 Assertiveness

According to House et al. (2004) ‘Assertiveness is the degree to which individuals are

assertive, confrontational, and aggressive in their relationships with others’ (House et al.,

2004, p. 30). France has a lower score compare to the United-States that it means: French

people values cooperation and warm relationships, they communicate indirectly, try to be in

harmony with the environment and expect subordinates to be loyal. Also, they build trust on

basis of predictability (cf. uncertainty avoidance).

4.65

2.96

5.27

5.88

4.71

3.57

5.35

6.15.91

3.99

2.88

4.2

5.79

5.03

4.36

5.34

6.14

5.51

2

3

4

5

6

7

GLOBE Project France/ USA

France Values United-States Values

35

With a higher score regarding the United-States, the Americans value success,

competition and progress (cf. can-do mentality), communicate directly, try to take control of

the environment and expect subordinates to take initiative. However, they build trust on basis

of calculation.

5.2.2 Future Orientation

According to House et al., ‘Future orientation is the degree to which a collectivity

encourages and rewards future-oriented behaviors such as planning and delaying gratification’

(House et al, 2004, p. 282). GLOBE Future Orientation values reflect societal aspirations and

preferences for planning (Venaik, Zhu, Brewer, 2013). With a high score for the two countries

(5.35 and 5.34), they are supposed to save now for the future and emphasise working for long-

term success. Moreover, organisations tend to be more flexible and adaptive.

5.2.3 Performance Orientation

It refers to the extent to which an organization or a society encourages and rewards

group members for performance, improvement and excellence (House et al., 2002). The

United-States get a score slightly higher. Nonetheless for both, it is a very high score that it

means for them; they grant importance to training, development, competitiveness and

materialism. This part does not allow the author to bring out cultural differences because

results are the same for both countries.

5.2.4 Humane Orientation

Humane orientation is defined as ‘the degree to which an organization or society

encourages and rewards individuals for being fair, altruistic, friendly, generous, caring, and

kind to others’ (House et al, 2004, p.569). France has the highest score among the 26

countries studied; we already know France is a collectivist country rather than individualist.

Then, the interest of others is really important, and people are interested to be a part of a

group or an affiliation. The USA have a lower score that it means one’s own self-interest is

36

more important than others. However, people are motivated for power and particularly

material possessions.

Until now, the author wanted to emphasise cultural difference through two models:

Hofstede and GLOBE Study. Now, in this dissertation it is possible to underline cultural

differences between France and the United-States. In the next chapter, the interest will be to

show how intercultural conflicts arise and what are the sources of intercultural conflicts?

After having highlighted the cultural differences, it will be easier to understand how

intercultural conflicts emerge in the workplace in American multinational companies and

have to face up to expatriates influx and especially French expatriates.

6. Intercultural conflicts within American

multinational companies between French and

American workers

In this chapter, the author is going to define how intercultural conflicts arise and what

are the sources of cross-cultural conflicts? Furthermore, the author will underline the cultural

differences that lead to conflicts between American and French workers.

6.1 How Intercultural Conflicts arise?

Interpersonal conflicts emerge because of different factors, each referring to Culture-

related differences such as norms, perceptions and practices, and more particularly related to

time, urgency and implementation (Jassawalla, Truglia and Garvey, 2004).

Moreover, between French and American culture, three categories can foster cultural

differences that are: tastes and preferences, ethical imperatives vs. legal requirement (legal

37

system) and beliefs and values. A difference of point of view (different cultures) in these three

categories can lead directly to conflict (Steers, Sanchez-Runde, & Nardon, 2010). Figure 4

shows the sources of intercultural conflict between two different cultures (Culture A & B).

Figure 4: Sources of intercultural conflict.

Source: Steers, Sanchez-Runde, & Nardon, 2010

With the process of globalisation and melting pot, employees are confronted with

different ways of thinking, behaving and feeling. If unfortunately we cannot deal with these

processes, employees will feel unsecure, threatened and put the blame for this on the others.

One of the most important difficulties for expatriates is to be unable to deal with cross-

cultural adaption issues related to cultural differences; for instance language, living

conditions, uprooting spouses and families, and working harmoniously with co-workers with

different cultural backgrounds (Yavas and Bodur, 1999). So, the most important information,

is issues of interpersonal conflicts arising from cultural differences. However, conflicts also

arise because of the cultural differences related to the sense of urgency around producing

results (Jassawalla, Truglia and Garvey, 2004).

For instance, American workers get used to work toward project deadlines without

paying attention to the hours they devote (“live to work”). Also, they are willing to work

extra-hours to complete projects and expect that others are doing the same. In Europe and in

France, mentality about work is really different; in a feminine country, working over-time is

frowned upon in France. Regarding American workers, they do not only work over-time; in

addition the American norm about the length of time to take new ideas is faster rather than in

Europe. Jassawalla, Truglia and Garvey (2004), talk about the American norm of “just doing

38

it” in comparison with European countries where employees take their time to take decisions.

All can lead to frustration and in other words intercultural conflicts.

Intercultural conflicts start when protagonists identify them with one group (in-group),

which opposes another group (out-group). Each group try to preserve, protect and strengthen

itself in order to stand up for the interests of the group.

Some authors such as Stephan and Stephan (1985) recognise that exposure to out-

groups predicates the activation of negative stereotypes and biases against out-group

members, leading to intergroup tensions and conflicts. Given that, organisation like

multinational companies become more culturally diverse, intercultural conflicts occur more

easily between employees from different cultural backgrounds (Jehn & Mannix, 2001; Jehn,

Northcraft, & Neale, 1999).

Several authors have underlined nationality have a distinct and often a more significant

influence than other demographic characteristics. Then, national diversity is an important

factor that will have a major impact as a predictor of conflict specifically in multinational

workgroups (Miles, 1964; Tsui et al., 1992).

As individuals attempt to communicate and work together, they may react negatively to

the cultural practices of others (Gudykunst et al., 1996; Pearson & Stephan, 1998; Ting-

Toomey et al., 2000). Furthermore, national diversity lead to intercultural and relationship

conflicts for three reasons: decreased relationship quality, decreased group integration and

increased categorisation processes (Ayub and Jehn, 2006). Besides, the quality of

interpersonal relationships decreases whereas diversity increases in groups (Riordan & Shore,

1997). Moreover, lower quality work relationship is perceptible in comparison to less racially

diverse organisations. In this way, in 1997, Rivenburgh emphasises different nationalities in a

workgroup can lead to intergroup discrimination just by the awareness that other nationalities

are present. It is question that nationalities are often stereotypical, through media portrayals

(Rivenburgh, 1997).

39

National diversity can bring diversity of ideas to the group because of cultural

differences and different national backgrounds bring in diverse sets of knowledge, expertise

and wisdom (Ayub and Jehn, 2006). Additionally, cross-national diversity increases creativity

and synergy (Adler, 1997). Employees from different cultures and national backgrounds will

bring together a variety of task-relevant viewpoints coming from their national traditions and

different educational experiences. Nonetheless, at the same time, Jehn et al. (1999) pointed

out that differences in past work experiences were positively related to task conflict in

workgroups, so national diversity can lead to task conflict.

In nationally diverse workgroups, members of the workgroups have to deal and

delineate tasks processes among dissimilar group members from different national

backgrounds. Diverse groups are inclined to meet process difficulties than homogeneous

groups (Williams and O’Reilly, 1998). Process conflict arises for three distinct reasons:

misunderstandings due to language barrier and communication issues, (self) exclusion from

procedural decision making, and misunderstandings due to stereotypical biases (Ayub and

Jehn, 2006).

6.2 Types of intercultural conflicts

Hellriegel, Slocum, and Woodman (2001) have identified three types of conflict that

may arise when individuals involved come from different cultures. Goal conflict is a situation

in which preferred outcomes appear to be incompatible. Cognitive conflict arises when ideas

or thoughts are perceived as incompatible. Finally, affective conflict is when feeling or

emotions are incompatible.

40

6.3 Consequences of Intercultural Conflicts

Several authors underlined that intercultural conflicts could cause decreasing of

motivation, work performance and open-mindedness. In 2003, Frost analysed toxic work

environment and suggested that insensitive attitudes and behaviours of employees exert an

insidious effect on people around them, decreasing dramatically their work performance

(Frost, 2003).

Besides, when employees from different cultures are unable to overcome their cultural

differences and manage their disagreements, ineffective communication slows down creative

and work performance (Giambatista & Bhappu, 2010; Hackman, 1990; O’Reilly et al., 1998;

Swann et al., 2003).

Dialogue is a necessary condition for effective group action. Also, dialogue is at the root

of all effective group action. Through process of dialogue, it is more evident to know if the

communication is valid or not. If not, dialogue will show us the differences between people

such as different mental models or using words differently. All these elements will lead

people to divergences and sometimes conflicts. In terms of cross-cultural management,

multinationals will need to develop shared mental models through dialogue. It is true that

national culture differs from another and organisations have to be able to create common

practices in order to generate a genuine subculture particular to the company and increase

work performance (Schein, 2003).

When individuals are witnesses of intercultural disharmony among people in their

immediate social environment or workgroup for example, they think two cultures are

incompatible because implicit beliefs about ideas and values increase. In other words, cultural

incompatibility thought by individuals because of implicit beliefs influence individual’s

subsequent performance in creativity tasks (Decker, 1980; Gioia and Manz, 1985). Moreover,

as soon as people convince themselves that ideas from different cultures are incompatible,

they become narrow-minded and less able to access knowledge from another culture and draw

connections among them to develop new ones (Roy Y. J. Chua, 2013).

41

Regarding workgroups, some organisations are trying to create the most effective

workgroups. In order to do this, multinationals gather individuals with relevant skills and

capacities from different countries and cultures. When multinational companies seek skilled

employees, it may results often in the construction of nationally diverse workgroups. It is also

true that workgroups with individuals from different cultures increase permanently in

multinational contexts (Earley and Mosakowski, 2000; Milliken and Martins, 1996). The

author will show in the next chapter that relevant skills and capacities are not enough

sufficient to create the most effective workgroup. Others key factors are essential to develop

effective workgroups.

After having underlined nature, types of cross-cultural conflicts and their consequences,

the next and final chapter will deal with the resolution of intercultural conflicts within

multinational companies. The interest will be to propose diverse solutions brought by several

authors. It will be about models, methods or discussions regarding resolution of intercultural

conflicts. It will be a real challenge for IHRM and French expatriates who will have to deal

with cultural differences. The next chapter will be useful to show the impact of cultural

dimensions and intercultural conflicts on International Human Resource Management, French

expatriates and American workers.

7. Resolution of intercultural conflicts within

workgroups: a challenge for IHRM and

workers

In this last chapter, the author wants to answer to the research question: how to resolve

intercultural conflicts? Different methods and models saw the light of day since the last

decades. It is relevant to present and analyse these theoretical frameworks and researches

dealing with this topic. The author will also present the impact of cultural dimensions on

Human Resource Management. Some activities of HRM are likely to change depending on

the country studied.

42

Regarding conflict resolution, it is defined as “the process used by parties in conflict to

reach a settlement” (Sweeney & Carruthers, 1996, p. 328).

7.1 Impact of Cultural Dimensions on Human Resource Management

Practices

According to Michael Armstrong, ‘International human resource management is the

process of employing, developing and rewarding people in international or global

organizations. It involves the world-wide management of people, not just the management of

expatriates’ (Michael Armstrong, 2006, p.99).

As cited above, IHRM is focused on employment (recruitment and selection policies),

developing people (training policies), and rewarding people (compensation and benefits). The

analysis will be based only on these three areas of HRM. Added to this, the author wants to

include performance management (or performance appraisal). Also, assimilation and review

policies have to be taken in consideration. As cited above, IHRM involves the world-wide

management of people; assimilation policies provide for the adaptation of expatriates to

overseas posts and their progress in them to be monitored and reviewed (Michael Armstrong,

2012).

As the author said in the introduction (cf. 1.2 Purpose of the study…), some issues

affect the practice of international as HRM such as the impact of globalisation, the influence

of environmental and cultural differences, the extent to which HRM policy and practice

should vary in different countries, and the approaches used to employ and manage expatriates

(Michael Armstrong, 2012).

Because of differences in policies, cultures and laws, HR practices have to be adjusted

following the country studied. Then, it is possible that cultural differences could impact on

how HR roles are implemented across borders.

43

IHRM have to deal with these cultural differences and then intercultural conflicts, since

the author showed a correlation between cultural differences and conflicts (poor cross-cultural

adaptation, national diversity). The author wants to know how IHRM can be prepared, in

order to handle and resolve these intercultural conflicts.

7.1.1 Recruitment and selection policies

First of all, recruitment and selection strategy differ across cultures. According to

Odenwald selection and training combined can help expatriates with cross-cultural adaptation

(1993). Cultures with high performance orientation or universalism such as the United-states

regarding recruitment and selection are based on “hard criteria” such as competencies, job-

related knowledge, technical and cognitive skills. However, “soft criteria” are used in cultures

that are high on femininity such as France. Soft criteria are essentially social and interpersonal

skills, social class affiliation and age (Aycan, 2005).

Cultures with high score on uncertainty avoidance such as France are more likely to

prefer internal recruitment rather than external recruitment (Aycan, 2005).

With a high score on Institutional Collectivism for France, the author considers this

country as collectivist in some part. Collectivist cultures seem to prefer the use of internal

labour markets in order to promote loyalty to the firm (Budhwar and Khatri, 2001). Therefore,

it is often difficult for externally recruited candidates to enter the strong social networks

within the organisation (Björkman and Lu, 1999).

Countries with a high score on uncertainty avoidance prefer informal recruitment

channels and methods (France). However, countries that are high on performance orientation

opt for formal recruitment and channels methods, structured and widespread. Moreover,

selection methods are standardised and job specific whereas in cultures with high femininity

such as France, they are not standardised and rely on face-to face interactions (Aycan, 2005).

It is important to underline that France has a high score on performance orientation, but a very

44

high score on uncertainty avoidance and femininity. Then, France could use the three methods

described.

Concerning written ability and personality tests, French in comparison to American

perceived written ability tests less impersonal. Personality tests are more offensive for French

and violate their privacy (Steiner and Gilliland, 1996). France, high on uncertainty avoidance

would tend to use more types of selection tests, and conduct more interviews and monitor

their processes in more detail, in order to collect objective data for making decisions (Ryan et

al., 1999).

Short-term oriented cultures such as the United-States, concerning the retention of staff

will prefer to be focused on transactional employment relationships and be more responsive in

nature. In the contrary, in France, retention practices involve a more preventive character and

centre on relational employment needs (Reiche, 2008).

7.1.2 Training policies

According to Aycan, training and development activities are the key to organisational

survival and growth in today’s global competition (2005).

In the United-States (low power distance cultures), training needs are usually

determined jointly by the employee and the superior. In high power distance cultures such as

France, training needs of the work group are determined by the paternalistic manager in an

authoritarian or consultative way (Wilkins, 2001).

In low power distance and high performance oriented, such as the United-States,

training and development needs are determined based on performance evaluation outcomes.

In France, with a high power distance and as a paternalistic culture, selection for training is

not based primarily on performance, but on group membership (Aycan, 2005).

45

In France, with a high uncertainty avoidance and high power distance, employees are

more receptive to one-way lecturing rather than participative discussions (Parnell and Hatem,

1999). The instructor is perceived as the “authority” who must provide answers and

guidelines (Laurent, 1986; Thornhill, 1993). To instil trust and ensure a high level of

credibility in the instructor, organisations in this type of culture prefer high-level, or senior

managers as instructors rather than hiring external consultants or trainers (Wright, Szeto and

Cheng, 2002).

7.1.3 Pay and allowances policies

In cultures with high power distance such as France, performance-reward contingency is

lower (Aycan et al., 2000). Also, reward allocation is based on seniority or being on good

terms with the management and not based on performance (Hui and Luk, 1997; Leung, 1997;

Smith and Bond, 1993). Seniority-based compensation system is preferred in societies with

high level of uncertainty avoidance, because such practice emphasises predictability and

certainty. However performance and skill based compensation system are preferred in

societies with low uncertainty avoidance such as the United-States (Schuler and Rogovsky,

1998).

To summarise these statements, in the United-States, rewards are contingent upon

performance. Nevertheless, in France, performance reward contingency is low. It should be

noted that power distance or uncertainty avoidance is positively correlated with seniority and

good interpersonal relationships with higher management and represents important criteria for

compensation (Aycan, 2005).

Focus on individual performance and pay based on performance are used in the U.S

(individualistic cultures) (Schuler and Rogovsky, 1998). In France, more collectivist than the

U.S, group-based rewards are more frequent (Gluskinos, 1988). Regarding the compensation,

differentials between individuals are very high in individualistic and performance-oriented

cultures such as the United-States (Easterby-Smith et al., 1995; Huo and Von Glinow, 1995).

46

7.1.4 Performance Appraisal

In the United-States and all individualistic cultures, performance orientation leads to an

evaluation system based on employee productivity, timeliness, quality of output and job-

specific knowledge and proficiency. Consequently, individual and work outcomes are more

important rather than the group and work process in this type of societies. Harris and Moran

suggested that performance criteria are more objective, quantifiable and observable (1996).

Nonetheless, in collectivist cultures or with a high institutional collectivism, loyalty to

the in-group is valued more than productivity. According to Kovach and Vallance, high-

performing employees who distinguish themselves could disturb group harmony and invoke

jealousy (1995, 1999). Results are important but social and relational criteria carry a lot of

weight compared to evaluating employees. Still in France, performance appraisal is a top-

down unilateral process, where superiors evaluate the performance of subordinates. Very

popular in the United-States, the 360-degree performance appraisal method does not work in

high power distance cultures (France) (Davis, 1998). 360 degree feedback performance

appraisal process to evaluate the individual managers. This method provides a feedback on a

manager’s performance collected from colleagues, manager’s direct supervisor, customers,

vendors and a self-assessment (Gluck, 2000). In order to be efficient, this method requires low

power distance (Fletcher and Perry, 2001). If French expatriates are subject to 360-degree

evaluation, it may disturb group harmony due to constant monitoring of the behaviour of

one’s colleagues. Therefore, self-appraisal is not appropriated in the French culture. The

emphasis on the “self” and personal achievements is disturbing in countries where humility in

self-presentation is the norm (Wiersma and van der Berg, 1999).

In the United-States, performance evaluation is conducted once or twice a year, and

standard forms of performance evaluation are used to encourage objective assessment of

employees by multiple sources. Otherwise, in high power distance, performance evaluation is

conducted in an unsystematic way.

47

7.2 French expatriates adjustment for better cross-cultural adaptation

Expatriates are people working overseas on a long or short-term contracts who can be

nationals of the parent company or “third country nationals” (TCNs) – nationals of countries

other than the parent company who work abroad in subsidiaries of that company (Armstrong,

2012). The management of expatriates is a major factor determining success or failure in an

international business.

In our case, the author wants to insist on the process of selection and training of French

expatriates. In other words, the author wants to know how IHRM can select expatriates and

how they can train them in order to facilitate the integration abroad and more particularly in

the United-States.

7.2.1 Selecting expatriates

It is really important for IHRM to select expatriates who present qualities such as

openness and sociability (Caligiuri, 2000), self-confidence and willingness to change (Forster,

2000) and patience and tolerance (Yavas and Bodur, 1999). However, today, firms use

technical competence as the sole selection criterion but technical skills are insufficient in

helping expatriates with adjustment issues (Sanchez et al., 2000). Also, according to Avan

Jassawalla Ciara Truglia and Jennifer Garvey (2004), it is important to take in consideration

emotional intelligence (EI) and not only IQ. Managing cross-cultural conflicts depends

essentially on personality traits (Caligiuri, 2000). In order to improve cross-cultural

adaptation, several skills and abilities have to be developed. These skills and abilities are

integral parts of emotional intelligence, and result from components of EI (Jassawalla, Truglia

and Garvey, 2004). The components are the following:

- Self-awareness: ability to recognise one’s emotions, moods, and reactions.

- Self-regulation: ability to control or express emotions, without any judgment.

- Self-motivation: resilience and ability to persevere despite obstacles.

48

- Empathy: ability to place oneself in another’s shoes and understand differences in

values and perspectives.

- Social skill: ability to build relationships by seeking commonalities and friendships

regardless of differences.

7.2.2 Training expatriates and American workers

In addition to language training for improved communication in the United-States

(Andreason, 2003) and cultural training for intelligent responsiveness in different

psychosocial and cultural background (Tung, 1982; Yavas and Bodur, 1999), pre-departure

training is necessary. Language and cultural training are useful to better know the country

where expatriates are going. It is important to know more about the cultural differences and

particularities about the country, here is the United-States. However, some personal

traits/skills are essentials to train and develop before they leave France. This pre-departure

training implicates skills such as active listening, ethical reasoning, and conflict management

(Jassawalla, Truglia and Garvey, 2004).

Training expatriates is fundamental but training American workers is also important,

because they are supposed to interact and collaborates with expatriates. Interact and

collaborate with expatriates require training. In other words, Vance and Pederon (1993),

affirm training as an ethical imperative for global firms because training key host nationals

can reduce stress and increase the expatriate’s effectiveness. Also, training American workers

could reduce discriminatory treatment and avoid rejection of the host culture (Sanchez et al.,

2000).

7.3 Cultural stepping stones model

Before giving solutions to resolve intercultural conflicts, it is important to show the path

who lead to resolution of them. We already know in intercultural conflicts situations, the

other’s “being different” confronts us with our own habits, norms and values.

Miscommunication, misunderstandings, power struggle are involved into cultural dynamics.

49

The situation during conflicts can be very complex and hard to analyse. To apprehend these

processes and so manage efficiently intercultural conflicts, Jitske Kramer came up with The

Cultural Stepping Stones model presented below in figure 5.

This model represents three phases of an intercultural interaction process. However,

understanding of this model will allow victims of intercultural conflicts to react and handle

more efficiently the different processes.

Figure 5: The Cultural Stepping Stones model

Source: Kramer and Brugman, 2010

The first and second phase are at the heart of intercultural conflict. Indeed, the first

phase is the meeting between two cultural strangers, in which they are confronted by different

behaviours and thoughts that lead sometimes to cross-cultural conflicts (cf. 6.1. How

intercultural conflicts arise?) This phase is about “opening up” and employees have to face up

to differences, allow misunderstandings and conflicts to move forward in the process.

Recognise and accept differences, be neutral regarding judgments and feelings and adopt a

positive attitude.

Regarding the second phase, people from the workgroup confronted to different culture

have to be open-minded and curious. They start to explore the new culture from different

perspectives (own culture, other’s culture and mutual interaction). Through this process, we

50

can better analyse the interaction process in order to understand which tensions and

misunderstandings need to be resolved.

The third step consist in finding solutions to intercultural conflicts in order to ease the

situation. Moreover, this step is important to create and implement techniques that will allow

the team to cooperate and manage efficiently the differences.

7.4 The different ways to resolve intercultural conflicts in relation to the

culture

Several authors have identified different styles to resolve conflicts. First, Blake and

Mouton (1964) proposed that individuals have two primary motivations concerning

interpersonal conflict: the desire to obtain one’s own goals (concern for production) versus the

desire to retain interpersonal relationships (concern for people). Five styles for resolving

conflict result from these motivations:

- Smoothing: high concern for people and low concern for production

- Withdrawing: low concern for both people and production

- Compromising: medium concern for production and people

- Problem-solving: high concern for production and people

- Forcing: high concern for production and low concern for people

Following country studied, styles of conflict used differ. Indeed, styles of conflict

resolution may vary across cultures (Holt & DeVore, 2005).

Concerning cultural status, the growing diversity of the United States has resulted in a

multicultural workforce of its citizens (Gabrielidis et al., 1997; Kozan, 1990; Oetzel, 1998).

As we know, the United-States create a multi-ethnic society that lead to diversity. Yet we also

know that diversity can result in increased conflict. Different ways to resolve conflicts are

used in the US.

51

Individualistic cultures such as the United-states prefer direct and assertive methods

when they resolve conflict. Logically, individualistic cultures are more concerned about

themselves than others and prefer the conflict styles of problem-solving, compromising and

forcing. These styles involve strong verbal communication, less emphasis on internal aspects

of communication, and less concern with the needs of others (Hofstede, 1983; Rahim, 1992;

Rahim and Blum, 1994).

However, regarding more collectivistic countries such as France, the needs of one’s

group are considered more important than oneself (Hofstede, 1980). Styles high in

relationship preservation, such as smoothing and compromising are preferred over forcing

(Elsayed-Ekhouly & Buda, 1996; Rahim, 1992; Rahim & Blum, 1994).

Regarding the organisational role, Rahim (1983) found, most of the time, subordinates

from the US prefer the use of problem-solving and forcing. In comparison, with regard to

managers from the United-States, they prefer the use of problem-solving, compromising and

smoothing in order to resolve conflicts (Renwick, 1975).

8. Conclusion

Nowadays, individuals and multinational companies struggle with multiculturalism

within workgroups. Globalisation and international setting push multinational companies to

find solutions in order to handle diversity.

Multiculturalism and diversity could be for the company a growth factor but also a

brake if a poor cross-cultural adaptation is present in the workgroup. In other words, culture is

at the root of conflicts. It is a major issue that managers and workers have to face. Difference

of culture can lead to miscommunication, misunderstanding, and in the end to conflict. When

relationships is degraded, it could lead more easily to intercultural conflicts. Cultural

differences such as norms, perceptions and practices are responsible for emergence of


52

Despite France and the United-States are Western countries, it remains cultural

differences. All these cultural differences are likely to affect relationships between French

expatriates and American workers. In some cultural dimensions, scores were different. These

could be a breeding ground for emergence of intercultural conflicts.

In the United-States, equalisation of power and opportunity are very important for

workers. French expatriates will be disoriented in this context since in France, inequalities of

power and hierarchical order are prominent. On one hand, Americans attach more importance

to immediate gratification rather than long-term fulfilment. They are also individualist and

competitive. Work is a big part of their lives (“live to work”) and professional

accomplishment determines the success of people. On the other hand, French emphasise on

quality of life (femininity).

If French expatriates, American workers and International Human Resource

Management are not concerned with cultural differences, it is evident intercultural conflicts

will arise. It is a serious challenge for the three parts and more especially for IHRM, in charge

to make easier the cross-cultural adaption for French expatriates and answer questions such as

recruitment, training, pay and performance regarding both American and French workers

within the multinational company based in the United-States.

It exists different ways to resolve conflicts when they arise. Americans workers give

advantage to problem-solving because they have a high concern for production and people.

For French people, they give advantage to smoothing or compromising because professional

relationships are more important than the production.

The two cultures have different approaches to resolve conflicts. They also have different

ways to interact and manage people. HR practices are different depending the country studied.

Cultural differences play a crucial part in IHRM. Indeed, they have to be prepared and adapt

their HR practices in order to limit cultural differences and consequently intercultural

conflicts.

53

When workers within the workgroup and HRM cannot assure a good cross-cultural

adaptation, people from different backgrounds may become less open-minded and less

inclined to understand cultural differences. This behaviour does not help the workgroup to

progress and become efficient in terms of works performance and relationship between

workers.

The nature of intercultural conflicts come from different factors and different

perspectives. People do not share the same beliefs, values and norms. That is why, they think

and act differently. The solution is not to ask to people to change and break their habit. Maybe

managers or IHRM could present the “new culture”, characteristic’s culture and emphasise on

cultural differences. Workers will understand the “new culture” and will become more curious

about it. A successful workgroup will be able to implement the new culture in their

workgroup with the previous culture already established. It is a long-term endeavour and

require a strong personal commitment.

In other words, cross-cultural adaptation is the biggest challenge for expatriates and

IHRM. To ensure expatriate success, expatriates have to be helped and understood, and

human resources managers have to manage conflicts situations arising from cross-cultural

differences. Emotional intelligence is essential at once during the process of recruitment and

within the workgroup. Employees and IHRM have to be prepared in order to interact properly

and propose solutions to satisfy everyone. Aware about the “new culture” but not only,

American workers need to be trained for collaborating with expatriates. Finally, all intentions

that allow expatriates and host nationals to decrease stress and apprehension about culture

differences are useful to facilitate social integration and increase work performance.

Everyone is involved within the multinational company, and the most important

challenge for global leaders today is to find the best fit between organizational practices

(IHRM, & HR practices) and employee values, behaviours and beliefs such as cultural

intelligence, open-mindedness, and training.

54

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SUPERVISOR CONTACT LOG

Student Number: 1415246

Degree Programme: MSc International Business

Proposed Dissertation Title (as submitted to Faculty Office): conflicts: are they setbacks or motivators within a company.

Agreed Title (as agreed with supervisor): Intercultural conflicts between French expatriates and American workers within multinational companies based in the United-States.

Supervisor’s Signature:

Date: 25th September 2015

Date and time of meeting

Notes Supervisor’s initials

April 9, 2015 Explanation of my topic (email)

April 20, 2015 3:30pm Intercultural conflicts proposed by the supervisor

July 6, 2015 Information about state of advancement (email)

July 8, 2015 10:30am Advice regarding the outline, and methodology (Skype)

July 16, 2015 Email ethics submission

July 24, 2015 Email

September 5, 2015 Email

September 9, 2015 2:30pm

Advice and recommendations given (Skype)

Major Project - 1415246 Intercultural conflicts

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