hofstede: six dimensions of national culture kathleen dameron
TRANSCRIPT
Hofstede:Six Dimensions of National
Culture
Kathleen Dameron
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1 Agenda Overview
What is ‘culture’ and why is it on our agenda?
Culture as a business issue
Cross-cultural moments
The Dimensions of Culture: from research…
‘Culture in the Workplace Questionnaire’ (CWQ)– your individual profiles
Individual and team outcomes & actions
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2 Discussion
What is ‘Culture’?
Why is culture on our agenda?
What are your learning objectives for this seminar?
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Section end
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3 Culture as a Business Issue
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The research says…
In cross-border M&A, 83% of companies thought the deal was a success, but KPMG found…
17% added value 30% made no difference 53% destroyed value
‘Resolving cultural issues’ is one of six hard & soft ‘keys’ to M&A success
Deals were 26% more likely to succeed if they focused on resolving cultural issues
Source: KPMG Global Research Report / M&A / 1999 & 2001
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“Language barriers, different working practices
and lack of cultural understanding are major
obstacles to uniting the workforce behind a
common vision and delivering benefit targets”
Source: KPMG Global Research Report / M&A / 1999 & 2001
The research says…
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France: The Presidential Model
UK: The Prime-Ministerial Model
Adapted from: Schneider, Susan C., and Barsoux, Jean-Louis, Managing Across Cultures. 1997
Management Organisation
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Germany: The Functional model
Adapted from: Schneider, Susan C., and Barsoux, Jean-Louis, Managing Across Cultures. 1997
Management Organisation
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USA: ‘Presidential Inclusive’
Italy: ‘Multiple Hierarchy’
Source: International Management / Caricatures of Management Organisation/ Reed Publishing
Management Organisation
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Thinking Through a Problem: Top-down or bottom-up?
Deductive reasoning:
Works from the more general theory to the more specific (observation and confirmation) ...sometimes called a ‘top-down’ approach
Inductive reasoning:
Moves from specific observations (facts, patterns) to broader generalisations (theories) …sometimes called a ‘bottom up’ approach
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HR Policy & Processes
Financial Times reported research across Germany / France / Italy / UK / Spain
Comparison of Recruitment / Promotion / Remuneration / Staff reduction scenarios
Widely varying responses to the same situations - related to national culture
Principally varied in emphasis on the ‘group’ versus the ‘market’Financial Times Mastering Global Business Series 1999
‘National Cultures, International Business’ Michael Segalla
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Impact: Management practice
Communication
Teamwork
Reward
Performance
Incentives
Decision Making
Power
Influence
Leadership
Achievement
Long & Short Term
Prioritization
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Technical expert vs General manager
LAURENT BARCHART "It is important for a manager to have at hand precise answers to most of the
questions that his subordinates may raise about their work."
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CountrySource: Andre Laurent, "The Cultural Diversity of Western Conceptions of Management." Intl. Studies of Man & Org., Vol. XIII, No. 1-2, PP. 75-96.
(With interpolated data from later study.)
% A
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Sweden USA NLD Denmark Great Britain Switzerland Belgium Germany France Italy Japan
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‘Effective Management’ is Culturally Framed
Organisations are structured differently across cultures.
There are different expectations and conventions around the need for information, taking initiative, challenging superiors, working in teams.
What may be considered ‘best practice’ in one culture may be ineffective, or counter-productive, in another.
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“If we have to wait until all peoples share the same cultural values we will wait
forever.”
“Common practices, not common values are what solve practical problems. The
differences in values should be understood, the differences in practices
should be resolved.”
Hofstede: Cultures & Organisations
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Section end
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4 Cross Cultural Moments
Oops!
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4.1 Discussion: Cross Cultural Moments
How does culture manifest as an issue within our teams, with other colleagues, and across our business?
To what extent is culture a ‘problem’ in our day-to-day roles?
How do we identify and attempt to resolve cross-cultural issues when they arise?
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4.2 Exercise: Cross Cultural Moments
Four teams
Four examples of typical scenarios
Quickly read the assigned story (one of the four)
Discuss what you think is happening, and what might be
the best course of action
Report-back to the full group
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Resolving Culturally-Based Tensions
R: Recognise
R: Respect
R: Reconcile
Fons Trompenaars / Riding the Waves of Culture
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Section end
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5 The Dimensions of Culture
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A Word About Cultural Stereotypes
..normal distribution / national average scores
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Culture in Context: The Four Windows
INDIVIDUAL Personal History
Family Background Personality
ENVIRONMENTAL CONTEXT Economic Factors
Market Issues Social Factors
NATIONAL CULTURE Education
National Values Fundamental Beliefs
ORGANISATIONAL CONTEXT Corporate Culture
Organisational Structure Global Reach
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Understanding the Dimensions
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“I think, therefore I am” Descartes 18C. French Philosopher
“You are, therefore I am”
Thought for the Day on the Buddhist tradition
BBC Radio 4 / 12th March 2002
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…the degree to which action is taken for the benefit of the individual or the group.
INDIVIDUAL ORIENTATION
GROUP ORIENTATIONLook out for #1.If you want something done right, do it yourself.
Two heads are better than one.
Many hands make light work.
Individualism
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Individualism: Example Aspects
Individual Orientation
Identity based in individual The same value standards are supposed to
apply to everyone. Every customer should get the same treatment (universalism)
Hiring and promotion decisions should be based on skills and rules only
Task prevails over relationship Speaking one’s mind is a characteristic of an
honest person; confrontations can be healthy Focus on management of the individual Self-interest comes before that of the group
Separation of personal and professional lives Efficiency prevails over loyalty
Group Orientation
Identity based in social system Value standards differ for in-groups and out-
groups. In-group customers get better treatment (particularism)
Hiring and promotion decisions take employee’s in-group into account
Relationship prevails over task Harmony should always be maintained and
direct confrontations avoided Focus on management of the group Interests of the group prevail over interests of
the individual Emotional dependence of the individual on the
organization Loyalty prevails over efficiency
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Individualism: Example countries
Hofstede: Individualism Index Values
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‘The vast majority of people in our world
live in societies in
which the interest of the group
prevails over the interest of the individual’
Hofstede ‘Cultures & Organisations: Software of the Mind’
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Individual Orientation vs. Group Orientation
What comes to mind from your business experiences?
Your example ‘critical incidents’?
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‘Britain & France: Partners for the Millennium’ Franco-British Chamber of Commerce & Industry
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…the degree to which inequality or distance between those in charge and the less powerful (subordinates) is accepted.
HIERARCHICAL ORIENTATION
PARTICIPATIVE ORIENTATIONEven better than respect is obedience.The highest duty is to respect authority. Never tell people how to do things. Tell
them what to do and they will surprise you with their ingenuity.
The key to successful leadership today is
influence, not authority.
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Hofstede: Power Distance Index Values
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Power Distance: Example AspectsHierarchical Orientation
Inequalities among people are expected and desired
Hierarchy in organizations reflects existential inequality between higher and lower levels
Subordinates expect to be told what to do Manager makes decisions appropriate to
his/her level; employees rely more on their managers for direction
Employees are expected to follow through as directed; they are less likely to suggest solutions for problems unless specifically asked/told
Manager, teacher, power figure expected to know the answers/best way
Participative Orientation
Inequalities among people should be minimized
Hierarchy in organizations means an inequality of roles, established for convenience
Subordinates expect to be consulted Manager consults with those involved and
expects them to participate in the decision making
Employees are expected to go to managers to report on progress and suggest approaches to problem solving
Good ideas and suggestions can come from people at any organizational level
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What comes to mind from your business experiences?
Your example ‘critical incidents’?
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Hans Eichel, German finance minister told the FT that there should be
“intensive efforts” to develop commonrules “It would be rather sensible
if we were to begin to give ourselves some rules, because cultures
must be brought into line”“German practice is very consensus
oriented. The Anglo-Saxon way is somewhat different.
That is the problem we are facing”
A spokesman for prime minister Tony Blair said
“It’s something that has to be sorted out at the
corporate level. We are in a European market.”
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…the extent to which people prefer rules, regulations and controls or are more comfortable with unstructured, ambiguous or unpredictable situations.
NEED FOR CERTAINTY
TOLERANCE FOR AMBIGUITY
Do it by the book.Better safe than sorry.
Rules are meantto be broken.
Nothing ventured, nothing gained.
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Hofstede: Certainty Index Values
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Need for Certainty
There is an emotional need for rules, even if they will not work
Acceptance of familiar risks; fear of ambiguous situations and of unfamiliar risks
More formal and widely understood ways of behaving and getting the work done
Comfortable in structured environments; matters that can be structured should not be left to chance
Information held is power Belief in experts and technical solutions Focus on decision content Teachers/Managers are supposed to
have all the answers What is different is dangerous
Tolerance for Ambiguity
There should be no more rules than strictly necessary
Comfortable in ambiguous situations and with unfamiliar risks
Tolerance of differences, innovative ideas and a wide range of behaviors
Trying new approaches is encouraged and rewards may be given for “thinking outside the box”
Information shared is power Belief in generalists and common sense Focus on decision process Teachers/Managers may say, “I don’t
know.” What is different is curious
Certainty: Example of Aspects
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What comes to mind from your business experiences?
Your example ‘critical incidents’?
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…the degree to which we focus on goal achievement and work or quality of life and caring for others
ACHIEVEMENT ORIENTATIONQUALITY OF LIFE ORIENTATIONNice guys finish last.
Winning isn’t everything, it’s the only thing.
All work and no play make Jack a dull boy.
It is nice to be important, but it
is more important to be nice.
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Hofstede: Achievement Index Values
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Achievement: Example AspectsAchievement Orientation
Emotional gender roles are clearly distinct. Men are expected to achieve, women to care. Women are more accepted at work if they adopt masculine roles.
Expectation that work takes precedence over family life; long hours are expected
Assertiveness, competitiveness and ambition are virtues
Resolution of conflicts by a show of strength or by fighting
Incentives that improve earnings, recognition, advancement and challenge are preferred
Quality of Life Orientation
Emotional gender roles overlap. Strong ambitions are unusual among men as well as women. Women are accepted at work without having to dress and behave like men.
Family life is taken into account; more regular hours are the norm
Modesty, solidarity, and helping others are virtues
Resolution of conflicts by compromise and negotiation
Incentives that bring improvements in benefits and other quality of life areas (as opposed to monetary rewards alone) are preferred
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What comes to mind from your business experiences?
Your example ‘critical incidents’?
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…the extent to which members of a society are prepared to adapt themselves to reach a desirable future, or the extent to which they take their guidance from the past and focus on fulfilling their present needs and desires.
SHORT TERM ORIENTATION
LONG TERM ORIENTATION
Dripping water can eat through a stone.Diligence is the basis of wealth, and thrift the source of riches.
One today is worth two tomorrows.Keeping up with the Joneses…
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Hofstede: Time Orientation Index Values
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Long-Term Orientation
Success over a long time horizon is valued Managers are allowed time and resources
to make their own contributions Measures such as market position, sales
growth, and customer satisfaction are key in evaluating business performance
Thrift; sparing with resources Deferred gratification of needs accepted
Short-Term Orientation
Quick results expected Control systems are established to
improve short-term financial performance and managers are judged by achieving these results
Measures such as profit growth, ROI (Return on Investment), and residual income are key in evaluating business performance
Spending for status purposes (social consumption)
Immediate gratification of needs expected
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What comes to mind from your business experiences?
Your example ‘critical incidents’?
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Section end
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6 Focus on the Culture in the Workplace Questionnaire (CWQ)
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Introduction to your own CWQ reports
What it is and what it isn’t
Health warnings
Structure of your report
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Reviewing your CWQ Profile reports
Organise into groups of two or three
In turn, discuss with your colleague(s):
- The extent to which the profile is consistent with your expectations or what surprises you…
- What examples come to mind that are informed by or even explained by your culture profile…
- How you might personally use this information… Report-back to the full group
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CWQ Group Profiles – In the Room
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Individualism Group Profile
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Power Distance Group Profile
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Certainty Group Profile
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Achievement Group Profile
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Time Orientation Group Profile
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Section end
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6A Developing Cross-Cultural Effectiveness
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6A.1 Individualism…If your preference is for Individual Orientation….
If your preference is for Group Orientation…
Learn that others will respond after considering the group interests and impact and of your expectations…
Learn that people may respond quickly and directly before considering other’s input or interests…
…and that they may expect and require consultation before making or acting on a decision.
…and they may expect decisions, and make their own decisions, without waiting to consult others.
If you meet resistance, passive or active, identify the common interests and outcomes up-front; make the collective case…
If you are meeting inertia, think about and identify individual outcomes actions and interests; engage
individuals in support of team targets
Be patient; learn to trust the team to deliver when they have collectively worked out how…
Break-down the group objective into individual actions and responsibilities; trust individuals to deliver their
bit…
Know that others may expect you to put the team interests before their or your own self-interests, and that is OK…
Know that others may expect you to recognise their and your own interests up-front before the team’s, and
that is OK…
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6A.2 Power DistanceIf your preference is for Hierarchical Orientation…
If your preference is for Participative Orientation….
Learn that others expect to be consulted and required to contribute before the decision; that helps make things happen…
Learn that others may expect the boss to tell them what to do; that helps make things happen…
…so be sensitive to irritation and hang-on a bit, ask opinions, encourage ideas and show that you’ve taken them seriously
…so brace yourself and give more up-front direction if people seem frustrated or puzzled by questions and
invitations
They know you have power; you don’t have to always use it; allow others to make decisions and guide them if they go wrong
If you have power, use it more openly, more obviously, more directly; people will respond positively to your
lead
Recognise that others are happy to access the lower levels in the business if that works; your clients may not need you if someone in your team can do it for them…
Be sensitive to other’s use of hierarchy as a way to make things happen; your clients may expect you match their hierarchy as the appropriate means of
access
Know that others may not see that their loyalty will be reciprocated; they may not trust you to protect them if they take the hit
Know that subordinates (it’s OK to call them that) may even take the blame, but will expect you to protect
them if they do
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6A.3 Certainty…If your preference is for Need for Certainty…. If your preference is for Tolerance for
Ambiguity…
Learn that others may be ready to act with less information than you think they should have; ‘analysis paralysis’ de-motivates…
Learn that others may expect professionals to provide full and complete information before taking action…
…so brace yourself to allow quicker, less-informed decisions and actions to happen – and focus others on lessons learned
…so invest more up-front in analysis, information and guidance; even if the parameters are set wide, still set
some
Be brief in your re-assurance that a given course of action is tried and tested; build the case around questions rather than having all-points-covered up-front
You may be confident it will work, but that may not be enough to convince others; anticipate their concerns
and address them up-front without waiting to be asked
Expect and allow creativity based on new ideas and untried methods; even your clients may expect that of you…
Your creativity may generate lots of ideas, but it may leave others puzzled or uneasy; your clients need to
know you will deliver
You may need to focus more on improvement rather than accepting the status quo
You may need to focus more on compliance with procedures and policies
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6A.4 Achievement…If your preference is for Achievement Orientation….
If your preference is for Quality of Life Orientation…
Recognise that not everybody sees the need to subordinate their lives to work; they can deliver and have ‘quality of life’
Recognise that others may not need you to allow for their wider lives; they will take care of it and will
expect the same of you
Emphasize humility and modesty in your approach. Focus on continued service to the internal and external customer.
Show drive or ambition for completion of tasks and meeting of deadlines. Communicate and respond
with a sense of urgency.
Recognize quality may be more important than quantity or speed
Deliver what you promise, when you promise, and give more than you promised
Stress interdependence Stress and reward performance and results
You may enjoy ‘constructive conflict’ but others may see it as unproductive and part of the problem; harmony can be effective
Expect more conflict than seems prudent, and try to see it and use it as a source of solutions rather than
as a problem
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6A.5 Time Orientation…If your preference is for Long-Term Orientation’….
If your preference is for Short-Term Orientation…
Recognise that others may be expecting and requiring results soon – or even now; look for quick-wins that address that need..
Recognise that others may be less concerned with delivery now and more focused on tomorrow’s issues
and needs...
….so track-back from the longer horizons to identify the shorter-term deliverables that are important for long-term success
...so stress the mid/long-term benefits as well as the short-term wins
Know that others may expect frequent and quick recognition for specific achievements rather than waiting for long-term outcomes
Know that others may expect the value of their long-term focus to be recognised as much as those who deliver
now
Others may expect a reliance on past and recent experience to frame or drive tactics for the next phase, rather than developing new methodologies for markets that may not exist yet
While recognising near-term delivery may be necessary, others may be requiring you to focus ‘ahead of the curve’ by ensuring the resources and planning is in
place to meet the needs of the market long-term
Use measures that focus on profit and near-term success to identify and articulate the longer-term trends
Introduce and maintain measures that track and recognise long-term success, linking with data that
tracks today’s output
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Individual Outcomes and Actions
What do you want to do with this on a personal level, with focus on your key relationships?
What is the potential value for your team(s)? What will you do about it?
From what you have learned about yourself and about ‘culture’
- are there implications for your contribution and
role within the wider business?
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Managing Across Cultures: An Informed Perspective...