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CROSS CULTURAL HRM

5

Managing Across Cultures :

Culture Application

Hodgetts Luthans Doh

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Salient Points

Necessity to adapt to cultural differences

How does culture influence management approach

Deal v/s Relationship focused ; Information v/s

Relationship oriented cultures

Management styles around the world : Stereotyping

How do cultural differences affect Business ethics

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Adaptation to Host Culture

Acceptance Requires empathy , patience with the unfamiliar

Respect for Different but Equal

Key abilities : Flexibility , Humility , Fairness , Interest, Ability to assimilate & be assimilated

Participation

ImperativeMust participate ElectiveDesirable , not a must

ExclusiveReserved for native

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Culture influence on Management

Authority in decision making High PDI , Family / Small business , Govt Institutescentralised

Need to focus on the decision maker

Individual approach to life Differential emphasis on worklife balance

Demarcation in I culture ; seamless in We culture

Source of strength Affiliation : Belonging , than standing out in relationship cultures

Power & achievement in Individualism culture

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Communication styles Impersonal / distance v/s touch & feel interaction

Direct v/s indirect ; Verbal v/s non verbal ( & unsaid )

Formal , Informal Need to understand comfort & time taken to ease out

Formal address , appointments , meetings , social interaction

Approach to Time For some time is moneyeffective use of resource

For some time is not an expense but an investment

M- Time v/s P-Time approach impact on dealing

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Consumer CommunicationGerman want factual , rational advertising

French prefer emotional , dramatic , symbolic ad British value laughter above all ; mocking both the

advertiser & the consumer

American ad should depict individual achievement , be

expressive & direct . Appeal to US values of successthrough personal hard work

Asian ad needs to be subtle ,indirect ; emphasizing group /

family values , bonding , sharing

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Recruitment Japan : Long term view , great deal of cross training , group

performance appraisal , unions are regarded as partners

US : Short run need ( here & now ) , individual appraisal ; unions are

adversaries

Wage / Incentives Pacific rim countries will have group incentives

High masculinity countries ( Japan , HK , Sing ) high salaries to be

paid to senior managers Profit sharing plans for low individualism index countries like Greece, Portugal

Countries with high individualism like GB , USA , Ireland motivationis by earning opportunity , recognition , advancement challenge

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Deal v/s Relationship FocusedDeal Focused

Task oriented

Pushy , aggressive , blunt

Low context

Open to deal with strangers Businesslike meeting focus

Business dealings are formal

Priority to conclude the deal

Sincere friend is one who alwaystells the truth

Impersonal , rational dealing DF :US, Canada, ANZ ,Nordic &

Germanic Europe

Relationship Focused

People oriented

Dilatory , vague , inscrutable

High context

Prefer dealing with the known Meetings loosely structured

Hospitality part of the deal

Priority to maintain harmony

Sincere friend is one whosalways willing to help

Personal equation . Contacts Moderate DF : GB , SA, L Europe ,

HK , Sing, Chile

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Information v/s Relationship Orientation

Information orientation

Low context

Individualism

Low power distance Bribery less common

Direct , B & W approach

Monochronic time

Impersonal

Foreground Competition

Relationship orientation

High context

Collectivism

High power distance Bribery more common

Indirect , ease with ambiguity

Polychronic time

Face to face

Background

Reduce transaction costs

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Stereotype : 10 Commandments of

American culture

You cant argue with success ( Be a success )

Live & let live

Time flies when youre having fun ( have lots of fun )

Shop till you drop

Just do it

No pain , no gain

Enough is enough ( Stand up for your rights )

Time is money ( Dont waste time )

Rules are made to be broken ( Think for yourself )

God helps those who help themselves ( Work hard )

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Stereotype : Japan Difficult to separate an individual from an organisation

CEO has a distinct identity in an US organisation ; in Japan evenstrongest of managers tend to blend with the organisation

US HR focus on evaluation , bonus ; in Japan its on

T & D , indoctrination Life is full of meaning including its ambiguities ,

uncertainties Empty is full of nothing for the Japanese

High context , implicit even in rejection Learning is a way of life ; lot of emphasis on learning

from day-to-day experiences

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Stereotype : China

Nodding indicates listening , not necessarily , consent

Patience in dealing is critically important

GuanxiGood connections ; integral part of doing business

Pride in being a member of the group ; never single out aChinese for praise

Values & principles above money & expediency

Once decided on what / who is best ; tend to stick with the

decisions . Reciprocity in negotiations ( re concessions ) is important

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Stereotype : Russia

Personal relationship with business partner

Be patient , things take time

Like exclusive arrangements ; Russians oftennegotiate with 1 firm at a time

Stress mutual gains . Win-win works

Contracts binding if & till they continue to bemutually beneficial

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Stereotype : India

To be on time for meetings

Titles are important

Bargaining for goods / services is common No personal questions unless the individual is a

friend

Indians are very tolerant ( accommodative ) of

outsiders

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Stereotype : France

Aristocratic ; social class is very important

Friendly , humorous , sardonic

May admire people who disagree with them

Work hard during work hours , though valuequality of life above work

Organisations are highly centralised , rigid

Important to be on time for meetings

Great importance on neatness & taste

Tend to be very precise & logical

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Stereotype : Arab Countries

Time & destiny is controlled by God ; an individual hasno control on these

Status largely determined by family position , social

contacts Titles are not generally used except for Royal family ,

ministers

Deference to senior person in the meeting . Nevercriticise in public ; mutual respect at all times

No bragging . No display of superiority feelings Connections are extremely important for business

Patience ; critical to success of business transactions

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Business Ethics

Lack of uniform clarity

No common approach , legal framework across countries

Outlook genuinely differs : Gift , Corruption ,Tip, I property

Conflict between Ethical v/s Commercial considerations

Forms of Bribery

Depends on Quantum , Causal force ( willing , coerced ) ,

legality of application

Bribe , Extortion , Lubrication , Subornation ( call Rose

by any name ! )

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Responsible Decision Making

Marketers Dilemma

No clear , comprehensive guidelines exist

No law applicable , no precedence

Considered an acceptable practice locally Internal company guidelines kept ambivalent

Withholding payment can affect business conduct

Marketers own conscience is not clear

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Responsible Decision Making

Ways to handle Dilemma

Seek legal advise

Check precedence

Check : what is at stake / what is getting violated & extent Use conscience to check : Ethically , society norms ,

human rights , fair play ,

Use common sense to check :

What happens if I do What hampers if I dont

Escalate to higher authority to seek clarity , advise

cchrm b5

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