Intercultural Management
Effective Communication in a Global Environment
Global Business
Intercultural Myths
• The Global Village Myth: the world is homogeneous;
• Universality Myth: underneath our differences, we are all really the same.
Can Most People be trusted?• United States 55%
• United Kingdom 49%
• Mexico 30%
• West Germany 19%
• Italy 1%
Culture Influences Values and Attitudes
Values and Attitudes influence Business Behavior
What is culture
Observable behaviour
Values and assumptions
Layers of culture
Language, food, dress religion, buildings,
fashion, art
Right or wrong
Good or Bad
Assumptions about existence
Levels of uniqueness in mental programming
(Hosfstede)
Personality
Culture
Human nature
Specific to individual
Inherited and learned
Specific to group or category
Learned
Universal Inherited
Cultural differences
Type of culture
How we relate to people
How we relate to time
Low context
High Context
High-Context Cultures
• No clear separation of business and private life
• Long lasting relationships• Implicit communication• Loyalty to people of authority• Spoken agreements• Outsiders do not gain entry easily• Negotiations slow and ritualistic
Low Context
• Business is separate to private life• Relationships are short in duration
(functional)• Explicit communication• Authority is diffused• Written agreements supported by law• Outsiders are encouraged to join inner
circle• Negotiations structured with participant
roles clearly defined
A Context Continuum
CHINA
KOREA
JAPAN
VIETNAM
ARAB
GREECE SPAIN
ITALYFRAN
CEUK
USA
SCANDINVIA
GERMANY
FINLAND
Lewin’s Circles
PRIVATE
PUBLIC
G- type high context Europe
PRIVATE
G- type high context China Japan
PUBLIC
Lewin’s Circles Continued
PUBLIC
PRIVATE
Car
Chambers
TennisClub
WorkChoir
Fridge
U-Type Low Context
Lewin’s Circles Continued
PUBLIC
PRIVATE
Chambers
TennisClub
Work
Choir
U-Type Low Context Europe
Relationship with people
Individualism Communitarian
Neutral Emotional
Universalism Particularism
Achievement Ascription
Individuals
• Use of the “I” form in communication• Instant decision making by representatives• Achievement is personal• Individual assumes responsibility for actions• Job Mobility and staff turnover high• Pay for performance and individual
assessment accepted• Risk taking admired (link to entrepreneurship)
Communitarians
• Risk avoidant
• Use of the “we” form
• Decisions referred back by delegates to organisations
• Achievement is group based and joint responsibility is assumed for actions
• Loyalty to organisation important
• Group incentives and team work expected
IndividualismEncouragesindividual freedom andresponsibilityHowever…
..
Encouragesindividual freedom andresponsibilityHowever…
..
We don’t want to degenerateInto self-centredness, so we Must……
Communitarianism
Encourage individuals toWork for consensus in the interestOf the group although……
Encourage individuals toWork for consensus in the interestOf the group although……
We need to avoidConformism and slowDecision making, so we must….
We need to avoidConformism and slowDecision making, so we must….
Verbal Communication
Low-Context A B
High-Context A B
Oriental AB
Tone Of Voice
Low-Context
High-Context
Oriental
Neutral Cultures
• Hide emotions• Cool and controlled behaviour is admired• Physical contact and strong expression of
body language is taboo• Tension and stress is often seen in body
language• Emotions that are controlled may
sometimes explode
Affective Cultures
• Thoughts and feelings are expressed verbally and non-verbally
• Expression of disagreement is uninhibited
• Lively discussion with lots of emotion admired
• Frequent physical contact and open expression of body language permissible
Universalist
• Rules, regulations and procedures very important
• Agreement is usually supported by legal contract
• There is the law, and that is that
• A person’s trustworthiness is based on honouring their word or contract
Particularist
• Relationships more important than rules
• Legal contracts and be easily modified
• The law is relative
• A person’s trustworthiness is based on whether they respond to changing circumstances
Achievement
• Titles are only used when relevant
• Respect for hierarchy is based on effectiveness and ability of jobholder
• Senior managers may be of varying age and gender
• Senior managers hold their position based on competence and qualifications
• Low power distance
Ascription
• Extensive power distance• Titles used extensively to indicate status in
organisation• Respect for hierarchy is required to
demonstrate commitment to the organisation
• Senior managers are usually male, middle-aged and qualified by background, formal qualifications and connections
Time
Sequentially
Synchronically
Past Present
Future
Nonverbal Sensitivity
• Greetings • Eye Contact• Space • Touch • Posture• Facial expressions• Timing• Silence• Gestures
Resolution
Respect Knowledge
ToleranceUnderstanding
Cooperation
