Culture and management styles

Nicolas Bernard MassonJuan-Manuel Corao

Ludovic DerosePierre-Jean Reveil

Introduction

-Globalization Companies are a main actor

-Cross cultural management as a solution to cultural misunderstandings

-Cross cultural management

-Organization: individuals systematically cooperating to conduct a business

Cultural diversity

Interaction

Economic Performance

OutlineI/ Culture

II/The notion of time, space and environment

A/TimeB/EnvironmentC/Space and distance

III/ Management style

A/ USAB/France and EuropeC/Japan

I/ Culture

The concept of culture

XVI century: Cultivating a field

XVIII century: Cultivating literature, arts or sciences

XIX century: Tylor said

“Culture or civilization . . . is that complex whole which includes knowledge, belief, art, law, morals, custom, and any other customs and habits acquired by man as a member of society.””

XX CenturyHypothesis that every culture demonstrates a certain behavior style common to all individuals sharing the same culture

The concept of culture in five characteristics:

• Culture is a social phenomenon

• You learn culture, it’s not innate

• Culture is a changing concept

• It has a pragmatic dimension

• Culture produces shared meanings: values, norms, behaviors

II: Time, Space and Environment

A/ Time

•A cultural data that changed with the history of humanity

•The Influence of the three Monotheists religions and the notion of time linearity.

•Edward T. Hall sees two conceptions which orientate individual and collective behaviors

Monochronism

From this point of view time is use linearly

Things are done one at a time

An economic dimension : « time is money »

German , North American, North European, Japanese and Singaporean cultures are monochronic

Polychronism

Time is more flexible

People can do many things at a time

Importance of human relations

Latin time, Mediterranean time, from Maghreb and gulf countries

The climate facilitates polychronism

Monochronism Vs polychronism

Polychronic behavior Monochronic behavior

Several things at time One thing at time

Interruptions are tolerated Concentration on the task in progress

Plans can be modified Plans strictly adhered

People oriented Timeline orientation

People are not patient People are methodical therefore slower.

Accuracy is approximate Accuracy is extreme

Tolerance of ambient noise People needs to be in a quiet environment

B/ Environment.

Environment defines a group’s culture

Should environment be controlled by people?

Do people must live in harmony with environment?

Three attitudes towards the environment.

People should and can dominate the environment

People must live in harmony with his environment

People are affected by the environment

C/ Space and distance

Edward T. Hall: « people are territorial animals »

People can interpret space

We live in a « bubble » that represents our individual territory

An intrusion in this bubble is seen as an invasion

Edward T.Hall distance interpretation

Up to 40 / 50 cm: distance is described as intimate

Up to 1,20 M : distance is described as personal

Up to 1,80/ 2 M : distance is designated as social

Over 4 M : distance is described as public

About these three components of the culture.

Time, Space and environment define the culture you live in

You need to understand the culture of a group if you want to do business with them

Each group have a different interpretation of these three components

III/ Management styles:

A/ U.S.A.

• North American model:

A/ U.S.A

Power distance (low):◦ « liberty and justice for all »◦ Hierarchy established for convenience◦ Superiors always accessible◦ Managers and employees expect to be consulted

◦ Communication : indirect, formal, participative

Individualism (high):◦ Mobility◦ Promotion decisions on merit

A/ U.S.A

Masculinity :◦ “strive to be the best they can be”

◦ “the winner takes it all”

◦ Success and workaholic

◦ Conflict resolution

« Uncertainty accepting »

Short-term oriented

A/ U.S.A

Government and syndicates should not be too much involved

Competition sense and economy efficiency Initiatives, risk taking opportunities and

innovation We must fail to learn More profits Flexibility, job insecurity Pragmatism Liberalism

A/ U.S.A

Homogenization (example: dress code)

Optimism in business

Strict profile of the job (we don’t hire everybody)

Easier team-work

No feelings involved in business

Exchange time for money, quality of work environment isn’t too much considered.

B/ France and Europe

French model:

B/ France and Europe

Power distance (high):◦ Inequalities are accepted◦ Hierarchy is needed if not existential◦ Superiors may have privileges and are often inaccessible.

◦ Power highly centralized

Individualism (high):◦ Individual and private opinions◦ Direct communication◦ Autonomy

B/ France and Europe

Feminine country◦ Welfare system

◦ Conflict resolution

Uncertainty avoidance:◦ French workers need planning, details, information

Short-term oriented

B/ France and Europe

The State is involved a lot in businesses and companies.

Strong hierarchic culture (rules, procedures, centric decision process).

Rewards-sanctions system

Discipline

Rules and laws about the relationship between employers and employees.

Strikes

B/ France and Europe

German model:

B/ France and Europe

Power distance (low):◦ Co-determination rights◦ Direct and participative communication◦ Meeting style

Individualism (high):◦ Direct communication◦ “be honest, even if it hurts”

Masculine society Uncertainty avoidance Short-term oriented

B/ France and Europe

Switzerland, Germany, Benelux. Intense participation Social rules and protection Repartition « Mitbestimmung » Communities Emphasize more on formation and

experience than diplomas Lot of small businesses Family capitalism

B/ France and Europe

Southern Europe model:

B/ France and Europe

Power distance (medium):◦ Hierarchy, inequalities acceptable

Individualism (high):◦ Own personal ideas and objectives

Masculine society◦ acquiring status symbols

Uncertainty avoidance

Short-term oriented

B/ France and Europe

The case of Spain HierarchyBusiness with strictly separated divisions and a strong hierarchical system

OrganizationPlanning is not that important

Responsibility of the managing director or the owner of the company

MeetingsTo give instructions to and exchange ideas with subordinates

NegotiationsProfessional style/formal style

B/ France and Europe

DecisionsTaken at senior management level

Time perception“Time was created by god to meet people”

Meeting & greetingGreeting is an extensive ritual

Not uncommon to be interrupted while speaking

C/ Japan:

• Facts and clichés

-Capital: Tokyo-National language: Japanese-Demonym: Japanese-Constitutional monarchyEmperor + Prime Minister-Density: 337,1 hab/km2 (x3.5 France)-Currency: Yen-GDP (ppp): $4.497 trillion (4th )-HDI: 0.901

-Other important cities: Hiroshima, Nagasaki and more recently FUKUSHIMA

-Japan is a combination of long time inherited traditions and an innovative culture

-Patchwork:

Japan Management style: Order, Dignity and Honour

-Japanese have two communication systems:

Tatemae (mask)

Behavior and opinions one displays in public

Honne

A person’s true feelings and desires

-Time Notion is crucial for Japanese people-Uncertainty avoidance (as French men)-Authority: less submission, more respect-Developed integration process and senpai(respect the elder)-Japanese machismo-Collectivist nation

Negotiating in Japan:

- Delicate Business card exchange

- Strong Client/Supplier relationship:Mission = quality product

-The giving of gifts on first meeting often occurs

-social talks

-Friendly relationships they will expect both parties to be treated with meticulous fairness

Conclusion

A good manager must take into account different cultures, the diversity of a culture and the personality of the individuals working at his side

Is globalization responsible for the disappearance of languages and culture uniformity?