Professional Documents
Culture Documents
Behaviour
Observable, Manifest Looking at the watch Banging on the Table
History of the company ( accumulated experiences: good and bad) Leadership and dominant coalition Ownership Stage of development Business diversity
Functional orientation: Marketing Finance Engineering` R and D Industry norms: Technology Change Key success factors Types of customers
ANTHROPOLIGICAL AND SOCIOLOGICAL RESEARCHES AND BEHAVIORAL OBSERVATIONS HAVE SHOWN THAT THERE ARE SIGNIFICANT DIFFERENCES IN BASIC ASUMPTIONS VALUES AND BEHAVIOUR ACROSS NATIONAL CULTURES THOSE DIFFERENCES HAVE AN IMPACT ON MANAGEMENT BEHAVIOUR
HOFSTEDEs STUDY:
Four Dimensions: POWER DISTANCE / INDIVIDUALISM UNCERTAINTY AVOIDANCE / MASCULINITY-FEMINITY
TROMPENAARS STUDIES:
Value Orientation
Silent Language
Punctuality Deadline Ex: German
Avoid Physical emotional Proximity Ex: British Sequential Scarce Circular Fluid Abundant Delays Postponment Ex: Arabic Physical contacts Showing emotion Ex: Latin Education Family Seniority Gives status Ex: Malaysia
Perception of Time
High Distance
Perception of Space
Language of Material Goods Friendship Agreement / Disagreement Context
Low Distance
Materialistic
Non-materialistic
Ex: Japan
Explicit Documented
Implicit Verbal
Asian countries
80
POWER DISTANCE
60
Australia
20
Denmark
0 0 20 40 60
Anglo-Saxon/Scandinavian Eqalitarian/Individualists
80 100
INDIVIDUALISM
Source:Hofstede, 1980
It is important for a manager to have at hand precise answers to most of the questions that subordinates may raise about their work (Q. 24)
73 66 44 46 53
77
78
38 23 27
10 17
18
Andr Laurent/INSEAD
IT IS IMPORTANT FOR A MANAGER TO HAVE AT HAND PRECISE ANSWERS TO MOST OF THE QUESTIONS THAT SUBORDINATES MAY RAISE ABOUT THEIR WORK (Q 24) 1991-2000 DATA 60
50
Percent agree
40 30 20 10 0
U SA N L D K C N D G B A U S
F JA P
ZA
D C H
B B R
A. Laurent 2003
I E
It is important for a manager to have at hand precise answers to most of the questions that subordinates may raise about their work (Q 24)
70 60 PERCENT AGREE
50
40 30
20
10
1977-1979
Global Strategic Management : Philippe Lasserre
1991-2000
Andr Laurent 2003
"DOING"
"BEING"
USA
ITALY
Andr Laurent/INSEAD
The main reason for having a hierarchical structure is so that everybody knows who has authority over whom. Q.14 Percent agreement rate across countries
USA SWEDEN UK ITALY JAPAN INDONESIA 0 20 40 60 80 17 26 30 31 34 34 42 43 50 70 83 100
Andr Laurent/INSEAD
In order to have efficient work relationships, it is often necessary to bypass the hierarchical line. (Q.2) Percent disagreement rate across countries
SWEDEN UK FRANCE GERMANY ITALY SPAIN 0 20 40 60
Andr Laurent/INSEAD
26 32 35 36 43 44 45 51 56 59 74 80
Country Clusters
1 UNIVERSALISM : vs. PARTICULARISM : 2. INDIVIDUALISM : vs. COLLECTIVISM : 3. NEUTRAL vs. AFFECTIVE 4. DIFFUSE vs. SPECIFIC : : : :
Rules-based behaviour Relationship-based behaviour Individual's rights are supreme Group's rights are supreme
Emotions are subdued and expressed indirectly Asian countries Emotions are expressed freely and directly Focus is on context of situation Focus is on specific issues Status and respect are achieved by 'doing' Status and respect are ascribed by 'being' Western countries Asian countries Germanic countries Western countries Asian countries
Business Systems
AngloAmerican
RATIONALITY How objectives are set Importance of systems and procedures AUTHORITY The ground rules for Vertical order. Origin of power IDENTITY The ground rules for Horizontal order. (What makes society stick) CAPITAL How Financial Capital is found and channelled Democratic process System, Rules led
German Nordic
Democratic Consensus led
Japanese
Democratic Consensus led
Korean
Autocratic
Overseas Chinese
Autocratic
Constitution The Law The State The State The Law Decentralisation The Law The Decentarilsation Centralisation Corporations Decentralisation
Business Systems
AngloAmerican
HUMAN CAPITAL How human skills are developed SOCIAL CAPITAL How trust is created OWNERSHIP Who own enterprises NETWORKING How economic agents relate to each other. (The rules of business transactions) MANAGING How employees are induced to cooperation in the firm Academic Performance Led
German Nordic
Academic and Apprenticeship led
Japanese
Korean
Overseas Chines
State, Shareholders
Banks, CrossShareholding
Family Groups
Contracts
Elitist Relationships
Personal Relationships
HIERARCHICAL /MANAGERIAL INTERACTIONS BOSS/COLLEAGUES/ SUBORDINATES) Feedback Control Reward/Punishments Personal space Motivations
PARNERSHIPS/TRANSACTIONS Contracts negotiations Joint Ventures/Partnerships Official meetings Community events/Social events
MONO-CULTURAL TEAMS
DISASTER
LOW
SYNERGY
HIGH
PERFORMANCE
MULTICULTURAL TEAMS
Andr Laurent/INSEAD
Assumption of similarity/homogeneity. Cultural diversity is denied, lost as a potential resource and transformed into a significant handicap. Richness of diversity lost on the way.
Andr Laurent/INSEAD
MAJOR OBSTACLES TO PERFORMANCE IN MULTI-CULTURAL SITUATIONS (2) The gap between pretended similarity and inner conviction of actual difference widens and creates uncomfortable situation.
Cautious behavior and unproductive costly politeness emerge as coping mechanisms to handle the situation. This leads to low risk taking, avoidance of confrontation and achievement of the smallest common denominator.
Andr Laurent/INSEAD
Western individualism. Fear of stereotyping Parochial mindset (only one way of thinking/acting). Ethnocentric mindset (the best way of thinking/acting). Blindness to ones own cultural conditioning.
Andr Laurent/INSEAD
If diversity is neither recognized, understood, acknowledged nor discussable, how could it possibly be appreciated, valued and utilized? Cultural diversity then re-enters as a handicap likely to lead to failure. Any synergy between cultures becomes inaccessible.
Andr Laurent/INSEAD
Open; willing
Long; detailed; covering all foreseeable contingencies
Total binding
Weak; the relationship is what counts, not the document; and inevitable changing conditions will necessitate later amendments
Source : Sunshine, 1990
1 of 2
Negotiation Parameters
Basic approach to business in Transactional; profit-oriented; general detail-conscious; legalistic Central purpose of the negotiation Selection Criteria for negotiator(s) Reaching agreement on a contract Verbally articulate generalists; technical competence; rational abilities Few
Appropriate number of negotiators Appropriate role(s) of Lawyers Attitude toward decisionmaking process, and appropriate degree of delegation of authority to negotiators
Many: in order to demonstrate seriousness and for functional coverage, including learning. None: seen as adversarial troublemakers. Consensual middle-up decision-making (ringi seido); little or no authority delegated to negotiators.
Key participant: leader, contract advisor, and/or draftsperson Top-down decision-making; very high degree of delegation of authority
2 of 2
Negotiation Parameters Appropriate tone for negotiation and communication Negotiators interest in personal feelings and values of counterparts
Appropriateness of socialising Inappropriate; unacceptable; with counterparts risks conflict of interest and loss of personal control Attitude toward time during negotiations Acutely time-conscious; time is money; impatient
Highly appropriate; and traditional release; also, ritualised gift-giving. Patience in the key.
Gesturing
Dressing
Dress code
Eating
Importance of meals in business dealing. Behaviour at the table How to control time
Timing
Talking
Most Asian countries privilege the personalisation of contacts before engaging in business transactions Legal contracting is the norm in the USA while broad agreements are considered satisfactory in Japan In China, connexions (Guanxi) are still a very important factor of competitive advantage In Asia the notion of extended families implies that preferential treatment be given to families and friends for supplies contracts.
Contracting
COMPETING Advantages
Supplying