TOPIC 3: CULTURAL DIMENSION

1. Definition: Acquired knowledge that people use to interpret experience and generate social behaviour. This knowledge forms value,
create attitudes, and influences behaviour.
2. Nature of culture: Culture is based on the uniquely human capacity to classify experiences, encode such classifications symbolically,
and teach such abstractions to others. It is usually acquired through enculturation, the process through which an older generation
induces and compels a younger generation to reproduce the established lifestyle; consequently, culture is embedded in a person's
way of life. Culture is difficult to quantify, because it frequently exists at an unconscious level, or at least tends to be so pervasive
that it escapes everyday thought. This is one reason that anthropologists tend to be skeptical of theorists who attempt to study their
own culture. Anthropologists employ fieldwork and comparative, or cross-cultural, methods to study various cultures. Ethnographies
may be produced from intensive study of another culture, usually involving protracted periods of living among a group. Ethnographic
fieldwork generally involves the investigator assuming the role of participant-observer: gathering data by conversing and interacting
with people in a natural manner and by observing people's behavior unobstrusively. Ethnologies use specialized monographs in
order to draw comparisons among various cultures.
3. Characteristics:

5 characteristics Examples
of Culture

1. Shared
Minh is a recent college graduate with a degree in accounting. She has taken a job with a large accounting firm.
Although she gets along with members of her department and team, she tends to spend her free time with other
colleagues who are of Asian descent, especially those who are in her generation. She feels that this group of coworkers
understands her better and shares her values and ideas around work–life balance.

John has been with his state employer for thirty years, working up the ranks into seniority in his state agency. It’s been
customary for him and six coworkers of his age group to meet for lunch every day and discuss the latest sporting events.
Once a week during the summer they meet up after work to play baseball at a local park and recreation site.

These two examples describe culture as a shared learning experience. Although you may think of yourself as an
individual, you share beliefs, rituals, ceremonies, traditions, and assumptions with people who grew up or live in similar
cultural backgrounds. It is easier for you to relate to someone who has shared value systems and ways of doing things
than someone who does not share the same values.

The patterns of culture bind us together and enable us to get along with each other. Even though it feels good to be
around people who think, act, and behave as you, shared learning can create blind spots. Shared cultures create a
dynamic of an in-group, where people segregate themselves from each other. Within teams in organizations, in-group
blind spots can lead to “groupthink,” a term coined by Irving Janis Janis (1973), pp. 19–25. to explain the ways in which
groups ignore alternative solutions and take on actions and behaviors that discount the experiences for others.

2. Learned Geert Hofstede Hofstede (1991). views culture as consisting of mental programs, calling it softwares of the mind,
meaning each person “carries within him or herself patterns of thinking, feeling, and potential acting which were learned
throughout their lifetime.”Hofstede (1991), p. 4. Similarly, Peter Senge Senge (1990), pp. 8–9. argued that mental
models lock individuals and groups into a specific perception about the world. Like a computer, we are programmed to
act or behave in certain ways. The conscious and unconscious learning we undergo, over time, turns into beliefs that we
consider to be valid. We then teach each other that these beliefs are cultural norms, and they are then expressed in our
daily lives as behaviors and actions.

Think about your first day with your current organization or one you worked for in the past. Typically, your boss or a
co-worker gave you an orientation to the company, describing its mission, products, and services. Most likely, you met
your co-workers and received a tour of the office facilities. Perhaps you met and talked with co-workers to get a sense of
how your job related to their work. Maybe you spent time reading company materials, reviewing your department files,
or talking with your supervisor about the details of your job responsibilities. Perhaps you had lunch with other staff
members and were told about some parts of the organization such as, “Jane Doe should be fired but is still working
here,” “The CEO has control issues,” or “The fax machine breaks down three times a day.” Whatever you did in those
first hours or days of orientation and training, you created an image of how you would fit into the company. In that
moment, you told yourself a story of how you would work with the company and how it would work with you because
others in that business culture told you how you needed to behave. This moment is so powerful that it shapes your
experiences, including your thoughts, actions, behaviors, beliefs, and attitudes for the rest of your time with the
company.

3. Trans- Family firms fail to survive through generations as a result of challenges that are embedded in the family structure, as
generational well as the business and the social contexts. Studies show that most family firm founders overlook preparing for
succession planning .
 Although the succession process takes time, founders who do not plan for succession create a vacuum and may result in
leaving subsequent successors with no direction to follow. White et al. emphasize the difficulty of the succession
planning process and explain how each family firm is unique based on the familial relationships.
Several models have presented the succession process and the transfer of power from the predecessors to the successors
as consisting of phases . For example, Handler describes succession as a strategic process of social interactions that
includes three phases, these are comprised of personal development of successors prior to being actively involved in the
family firm, involvement in the business and lastly, leadership succession once the successor is in charge.

4. Patterned Often you can go into an office and find employees chatting with each other, talking with relatives over the phone or
talking about their private lives in a business meeting. The Puerto Rican culture is more relaxed in terms of work
compared to the Mexican, Colombian or European American culture, we specifically work for a means to an end and
appreciate every second of our leisure time. The social relations dimension describes how the people in a culture
organize themselves and refer to one another.

In Puerto Rico the degree of importance we place on formality has changed through the years as different generations
modify the way we address people. For example teenagers often refer to their elders as “you” instead of “sir” or they
will say to someone who is serving them “give me” instead of “may I have”. The Puerto Rican culture generally does
not give much importance to tittles, as they believe that relationships best develop when those involved can address
informally to one another.

Analyzing these cultural patterns one can have a more accurate sense of how culture determines the identity of a country
and how things like the importance of work and social time can influence so deeply the way a whole culture behaves.
Also it gives you the opportunity to compare and contrast with other countries and learn how other people can have a
completely different share of values and see life in such a contrasting way. Most importantly I believe that by studying
these cultural patterns one can be more sensible to other people’s needs and have more respect for their culture instead
of wanting to impose ours.

5. Adaptive Cultural adaptation, where culture helps humans adapt to their environment. For example, we weren’t born with fur
coats to be able to survive in cold climates. But culture has given us a way to make clothing, build fires, and create
shelters so that we can adapt to living in cold climates. Because culture helps people adapt, people can live in many
different environments on Earth, and even in outer space! We have also adapted using culture by creating things like
antibiotics and vaccines, and by creating agricultural techniques that allow us to produce huge amounts of food.

However, not all aspects of culture are adaptive. Some are neutral and don’t affect people’s ability to survive. And some
aspects of culture can be maladaptive, meaning they can threaten people’s existence in the long term. For example,
factories create pollutants that destroy our air quality, and if this is not limited, the air could eventually be too poor for
humans (and many other organisms) to survive.

Another thing to note is that cultural adaptation is relative. This means that what is adaptive in one culture may not be
adaptive in another culture. Here’s an example. In the United States, you need to be able to read and write and do basic
math in order to adapt to American culture. But, these things are pretty much worthless to a person whose life involves
herding cattle in a remote village somewhere else in the world. So these skills are adaptive in the USA, but they may not
be adaptive in other areas of the world.
And, the ability of an aspect of culture to be adaptive can change over time. For example, introducing guns and
snowmobiles would be a cultural adaptation for Inuit hunters in Alaska. With these technologies, they would be able to
hunt caribou easier, which means that people would eat better, which then affects their health. But after a while, these
cultural things may be maladaptive, because there is a chance the hunters could kill off all of the caribou, and then a
major source of food would be gone.

Here’s another example. In ancient times in Mesopotamia, people developed irrigation. This cultural adaptation resulted
in the ability to grow more food in that area of the world. But, over time, irrigation made salt build up in the soil, and
this was a major factor in that society’s collapse.

Also, some aspects of culture are not adaptive for all the members of that society. For example, cultural things like war
and slavery have not benefited everyone. And, cultural practices like human sacrifices and the killing of twins in many
cultures were also not beneficial for everyone.

So, culture helps people adapt to their environment, but this can change over time. Some aspects of culture can also be
maladaptive as well, either for certain members or for the society as a whole.

4. Hofstede’s cultural dimensions

Hofstede's cultural dimensions theory is a framework for cross-cultural communication, developed by Geert Hofstede. It shows the effects of a
society's culture on the values of its members, and how these values relate to behaviour, using a structure derived from factor analysis.
Implications of Power Distance
Type of Work Activity High Power Distance Low Power Distance

Very centralized
Flat organizational hierarchies
Organizational structures Tall hierarchies with clear levels of managers and
Decentralized structures
subordinates
Dispersed authority
Concentration of authority at the top
Managers rely on personal experience
Managerial authority Managers rely on formal rules to manage
More consultative or collaborative forms of
Authoritative managerial style and decision making
decision making
Subordinates expect to be told what to do Subordinates often expected to be consulted
Relationship with supervisors Perfect boss is seen as one who is an autocrat Ideal manager is seen as a democratic leader
Information sharing constrained by hierarchy Openness to sharing information
Wide salary gap between top and bottom of
Low salary gap between top and bottom of
organization
Other issues company
Managers often feel underpaid and dissatisfied with
Managers feel paid adequately and are satisfied
careers

Implications of Individualism
Type of Work Activity Low Individualism/High Collectivism High Individualism/Low Collectivism

Employees act in their own interests

Employees act in the interest of in-group (members of the family or
Employee commitment to organizations
Relationship with same university)
high
companies Employee commitment to company relatively low
Employee-employer relationship based on
Employee-employer relationships is almost like a family link
the market
Hiring and promotion takes in-group into consideration
Hiring and promotions based on rules
Better to reward based on equality (give everyone the same
Human resource, Family relationships unimportant in hiring
reward) rather than equity (base reward on work effort) Relatives
management Better to reward based on equity
of employees preferred in hiring
Training done best individually
Training best when focused at group level
Belief in individual decision making
Belief in collective decisions Treating friends better than others at the
Treating friends better than others is normal workplace is considered unethical
Other issues Support of teamwork More mobility across occupations within
Less mobility across occupations company
Personal relationships very critical in business Tasks and company prevail over personal
relationships in business

Implications of Uncertainty Avoidance

Type of Work Activity Low Uncertainty Avoidance High Uncertainty Avoidance

Weak loyalty to companies Strong loyalty to employing organizations

Relationship with companies Average duration of employment shorter Employment are long term in duration
Preference for smaller organizations Preference for larger companies
Superiors optimistic about subordinate ambition and Superiors pessimistic about subordinate
leadership abilities ambition
Characteristics of Top managers usually involved in strategy Top managers often involved in operations
supervisors/managers Power of superiors based on relationships and Power of superiors based on control of
position uncertainties
Transformational leaders preferred Hierarchical control roles preferred
Innovators feel less constrained by rules
Innovators feel constrained by rules
Renegade championing
Rational championing
Entrepreneurship and innovation Tolerance for ambiguity in procedures and
Formalized management structures
structures
Innovation resisted
Innovation welcomed
Work in order to live
Live in order to work
Preference for lower number of work hours
Relationship with work Preference for high pay
Workers look for better working conditions
Workers look for security, pay and interesting work
and relationships in work
Managers’ characteristics Managers seen as cultural heroes Managers are employees like others
Successful managers primarily exhibit male Successful managers are seen as possessing
characteristics both male and female characteristics
Managers need to be competitive, firm, aggressive, Managers hold fairly modest career ambition
 and decisive Managers are very ambitious
More women in management
Fewer women in management
Managers less prepared to uproot family
Managers prepared to move family for career
because of career move
reasons
Low salary gap between top and bottom of
Large pay gap between genders Job applicants company [what about gender gap?]
oversell their abilities Managers feel paid adequately and are
Absences due to sickness lower satisfied
Other issues
General preference for larger companies Absences because of sickness higher
Conflicts are resolved through fighting until the best Preference for smaller organizations
“man” wins Conflicts are resolved through compromise
and negotiations

Implications of Masculinity
Type of Work Activity High Masculinity Low Masculinity

 Live in order to work

 Work in order to live

 Preference for high pay

 Preference for lower number of work
Relationship with work hours
 Workers look for security, pay and interesting
 Workers look for better working
work
conditions and relationships in work
1. Managers seen as cultural heroes  Managers are employees like others
2. Successful managers primarily exhibit male  Successful managers are seen as
characteristics possessing both male and female
3. Managers need to be competitive, firm, characteristics
Managers’ characteristics aggressive, and decisive Managers are very  Managers hold fairly modest career
ambitious ambition
4. Fewer women in management  More women in management
5. Managers prepared to move family for career  Managers less prepared to uproot family
reasons because of career move
 Low salary gap between top and bottom
 Large pay gap between genders Job applicants of company [what about gender gap?]
oversell their abilities  Managers feel paid adequately and are
 Absences due to sickness lower satisfied
Other issues
 General preference for larger companies  Absences because of sickness higher
 Conflicts are resolved through fighting until  Preference for smaller organizations
the best “man” wins  Conflicts are resolved through
compromise and negotiations
TOPIC 4: ORGANISATIONAL CULTURES & DIVERSITY

I. ORGANISATIONAL CULTURE

Definition: Organizational culture includes attitudes, experiences, beliefs and values within an organization. Organization culture is also defined
as the set of values and rules shared among people and groups within an organization, and controls how members interact with each other and
with stakeholders outside the organization. Values are beliefs and notions related to the goals that an organization's members should pursue and
conceptions of the standards of conduct that members need to use to achieve these goals. Basing on values will develop into rules, guidelines and
expectations that require employees to perform in specific situations and control the behavior of employees towards each other.

II. CHARACTERISTIC

1. Interaction between National and Organizational Cultures

National and corporate culture have become hot themes in the business world. National culture may be both tangible and intangible,
whereas corporate culture is an intangible idea. National culture refers to a country's overall attitudes, belief systems, values, and
customs. Corporate culture, on the other hand, is the pattern of arrangement, material, or behavior that has been acknowledged as the
approved means of handling issues by a society (company, group, or team). (Ahmed and colleagues, 1999). The way individuals do
business, perform things, and value things may differ from country to country. As a result, organizations of various national origins
may need to accomplish things differently depending on the culture of the nation or origin.

The degree to which a less powerful person accepts and accepts power disparity as normal is measured by power gap. The degree of
disparity permitted among members, on the other hand, differs by culture. Less powerful people of a society with a high power
distance may accept difficulties linked with inequality better than those with greater power. At the same time, power distance assesses
how much members rely on their superiors for advice. Members of a society with a high power distance demand more guidance and
direction from their superiors.

Individualism is a measurement of a member's primary concern. Members of high individualistic society are primarily concerned with
their personal and close family members' interests. In a collectivistic (low individualistic) culture, however, the group made up of
members is regarded to be of more interest. Members of a collectivistic society, on the other hand, demand more devotion and favor
from the collective in return.

Masculinity refers to the degree to which men and women have diverse societal roles. Female members of high masculine culture are
supposed to provide for non-materialistic needs, while male members are expected to provide for materialistic needs. Collectivistic
civilizations have a higher level of masculinity, with more significant gender disparities in social roles. (iv) Uncertainty avoidance
assesses how uneasy individuals get when confronted with unstructured, confusing, or uncertain situations. A culture with a high level
of uncertainty avoidance is more security-conscious, less tolerant of change, and less aggressive. A society with low uncertainty
avoidance, on the other hand, is riskier, more tolerant of change, and more assertive. (v) Long-term orientation assesses how
committed members are to their long-term goals.

Coclusion: In today's internationally competitive business world, it is evident that fostering good corporate cultures and the effective
and strategic integration of national cultures into corporate culture is important to success. business results Furthermore, a healthy
business culture provides more than just a competitive advantage. It is not only advantageous but also necessary for business success.
Furthermore, companies that have The ability to successfully mix beneficial aspects of national cultures with corporate cultures are
valued. They are an integral part of the area in which they function, as are the people who live there. Workers, for example, identify
with the organization. It's important to remember that in businesses When company cultures are formed in ways that integrate positive
characteristics, everyone benefits. of national importance

2. Organizational Cultures in MNCs

Shaped by numerous factors including cultural preferences of leaders and employees
Some MNCs have subsidiaries that (aside from logo and reporting procedures) wouldn’t be easily recognizable as belonging to the
same MNC
There are four critical steps to successfully integrate organizational cultures after international expansion via mergers/acquisitions:
- The two groups establish the purpose, goals, and focus of their merger
- Then, mechanisms are developed to identify most important structures and manager roles
- Next, the groups determine who has authority over resources
- Finally, the expectations of all involved participants are identified communication between departments and individuals is
facilitated

Family Culture Eiffel Tower Culture

Eiffel Tower culture is characterized by strong emphasis on
Family culture is characterized by a strong emphasis on hierarchy hierarchy and orientation to the task. Under this organizational
and orientation to the person. The result is a family-type environment culture, jobs are well defined, employees know what they are
that is power-oriented and headed by a leader who is regarded as a supposed to do, and everything is coordinated from the top. As a
caring parent and one who knows what is best for the personnel. In result, this culture—like the Eiffel Tower itself—is steep, narrow at
this culture, personnel not only respect the individuals who are in the top, and broad at the base. Unlike family culture, where the
 leader is revered and considered to be the source of all power, the
charge but look to them for both guidance and approval as well. In person holding the top position in the Eiffel Tower culture could be
turn, management assumes a paternal relationship with personnel, replaced at any time, and this would have no effect on the work that
looks after employees, and tries to ensure that they are treated well organization members are doing or on the organization’s reasons
and have continued employment. Family culture also is characterized for existence. In this culture, relationships are specific, and status
by traditions, customs, and associations that bind together the remains with the job. In addition, these managers seldom create off-
personnel and make it difficult for outsiders to become members. the-job relationships with their people, because they believe this
When it works well, family culture can catalyze and multiply the could affect their rational judgment. Eiffel Tower culture most
energies of the personnel and appeal to their deepest feelings and commonly is found in northwestern European countries. Examples
aspirations. When it works poorly, members of the organization end include Denmark, Germany, and the Netherlands. (Each role at each
up supporting a leader who is ineffective and drains their energies level of the hierarchy is described, rated for its difficulty, complexity,
and loyalties. Trompenaars found that this organizational culture is
and responsibility, and has a salary attached to it. Then follows a
common in countries such as Turkey, Pakistan, Venezuela, China,
search for a person to fill it. In considering applicants for the role,
Hong Kong, and Singapore.
the personnel department will treat everyone equally and neutrally,
match the person’s skills and aptitudes with the job requirements,
and award the job to the best fit between role and person. The same
procedure is followed in evaluations and promotions.)
Guided Missile Culture Incubator Culture

Guided Missile Culture is characterized by strong emphasis on Incubator is characterized by strong emphasis on equality and
equality in the workplace and orientation to the task. This personal orientation. This culture is based heavily on the existential
organizational culture is oriented to work, which typically is idea that organizations per se are secondary to the fulfillment of the
undertaken by teams or project groups. Unlike the Eiffel Tower individuals within them. This culture is based on the premise that the
culture, where job assignments are fixed and limited, personnel in the role of organizations is to serve as incubators for the self-expression
guided missile culture do whatever it takes to get the job done. This and self-fulfillment of their members; as a result, this culture often
culture gets its name from high-tech organizations such as the has little formal structure. Participants in an incubator culture are
National Aeronautics and Space Administration (NASA), which there primarily to perform roles such as confirming, criticizing,
pioneered the use of project groups working on space probes that developing, finding resources for, or helping complete the
resembled guided missiles. In these large project teams, more than a development of an innovative product or service. These cultures
hundred different types of engineers often were responsible for often are found among start-up firms in Silicon Valley, California, or
building, say, a lunar landing module. The team member whose Silicon Glen, Scotland. These incubator-type organizations typically
contribution would be crucial at any given time in the project are entrepreneurial and often founded and made up by a creative
typically could not be known in advance. Therefore, all types of team who left larger, Eiffel Tower–type employers. They want to be
engineers had to work in close harmony and cooperate with everyone part of an organization where their creative talents will not be stifled.
on the team. Unlike family and Eiffel Tower cultures, change in Incubator cultures often create environments where participants
guided missile culture comes quickly. Goals are accomplished, and thrive on an intense, emotional commitment to the nature of the
teams are reconfigured and assigned new objectives. People move work.
from group to group, and loyalties to one’s profession and project
often are greater than loyalties to the organization itself.

3. Discuss Advantages and Disadvantages of Cultural Diversity

No Benefits Analysis Evidence

1 Diverse cultural Our culture affects the way we see the world. A wide For example, L'Oréal attributes its impressive
perspectives can inspire range of perspectives coupled with the extensive success in emerging markets to its multicultural
creativity and spur personal and professional experience of an international product development teams. By providing a
innovation team can provide inspiring new perspectives for platform for an open exchange of ideas, they
colleagues to see the workplace - and the world - reap great benefits from diversity in the
differently. workplace.
Diversity of thought has been shown to spark creativity
and drive innovation, helping to solve problems and
meet customer needs in new and exciting ways.

2 Local market Often, a product or service needs to be tweaked to Red beans are a popular Chinese cooking
knowledge and insight succeed abroad. Understanding local laws, regulations, ingredient used in all sorts of different foods,
makes a business more and customs, as well as the competitive landscape, can especially desserts, and even in drinks like
competitive and help a business thrive. bubble tea so Starbucks added red beans. on
profitable some of the drinks on the menu in the Chinese
market.

3 Cultural sensitivity, Cross-cultural understanding, coupled with local market Starbucks logos at participating stores and
insight, and local knowledge, helps create more effective marketing overall branding had to be changed because the
 knowledge mean higher strategies and materials. Sometimes the ads are normal topless mermaid in the company's logo was
quality, targeted in one country but give people a bad view in another, it's deemed pornographic. Therefore, the logo was
marketing easy for the business to fail in some countries by not changed to a crown with waves, which means
understanding the local culture mermaid

4 Drawing from a Recruiting from a more diverse pool of talent not only Recruiting from a more diverse pool of talent
culturally diverse talent makes your business attractive to ambitious, globally- not only makes your business attractive to
pool allows an minded candidates, but it also helps you retain them. ambitious, globally-minded candidates, but it
organization to attract In a diverse work environment, employees are more also helps you retain them. Diversity, including
and retain the best likely to be loyal when they feel respected and diversity by gender, religion, and ethnicity, has
talent appreciated for their unique contributions. This will been shown to improve retention and reduce
foster mutual respect among colleagues who also value costs associated with employee turnover.
the diverse cultures, perspectives, and experiences of
their team members. An inclusive, cross-cultural
collaborative atmosphere is a great way to bring together
colleagues and teams across the enterprise.

5 A diverse skills base By drawing from a culturally diverse pool of talent, Example: McDonald's cultural and cognitive
allows an organization companies benefit from hiring professionals with a wide diversity can quickly spot gaps in the market. It
to offer a broader and range of skills that are often not accessible when will also have the insight and experience to help
more adaptable range of recruiting locally. a new or modified product to meet changing
products and services A broader skill base and the ability to offer a broader consumer behavior.
range of products and services can give a business a
competitive edge in terms of adaptability. In today's
volatile and uncertain global business environment,
agile and adaptive organizations are the ones that thrive.

6 Diverse teams are more In fact, studies have shown organizations with a culture Studies have shown organizations with a culture
productive and perform of diversity are both happier and more productive. The of diversity and inclusion are both happier and
better, range of experience, expertise, and working methods more productive.
that a diverse workplace offers can boost problem-
solving capacity and lead to greater productivity.
Diversity, on the other hand, can breed healthy
competition, stretching a team in a positive way to
achieve their best.

7 Greater opportunity for Working across cultures can be a truly enriching Attending professional training or gaining
personal and experience, allowing others to learn about perspectives sought-after qualifications. Volunteering as a
professional growth and traditions from around the world. Linking to buddy or taking on corporate charity work.
similarities and differences can help you become a Taking on a role to gain specific experience,
global citizen, letting go of stereotypes or nationalistic knowledge, or skills.
worldviews that are increasingly valuable. In multinational corporations like Unilever,
groups of talented interns are often divided into
groups in which each member of the team can
differ in nationality, which helps individuals
develop and adapt to the new environment.
cultural differences, thereby helping them train
to become global citizens

No Disadvantages Analysis Evidences

1 Colleagues from some Promoting an equitable and flexible job environment in Workers from Asian nations like Vietnam or
cultures may be less which all members of the team feel empowered to Japan may be hesitant to speak out or
likely to let their voices participate. This can be especially difficult for communicate their opinions, especially if they
be heard coworkers who come from polite or submissive cultures. are new to the team or in a lower-level position.
Conversely, forceful colleagues from the United
States or Western Europe, as well as those from
Scandinavian nations with flat organizational
hierarchies, may be more likely to speak out
during meetings or negotiations while others do
not.

2 Integration across If there are underlying prejudices between cultures, The centuries-long antipathy between the British
multicultural teams can making them less inclined to work together. Negative and French, or the Polish and Germans can
 be difficult in the face cultural stereotypes can be seriously detrimental to sometimes creep into the workplace.
of prejudice or negative company morale and affect productivity.
cultural stereotypes

3 Professional People from different cultures may not speak the same For example, if a manager gives instructions
communication can be language as their primary communication option. Hiring about completing a certain task to an employee
misinterpreted or people from different areas can provide unique who fails to fully comprehend the instructions,
difficult to understand perspectives, but it can also cause issues with how co- the employee may make mistakes if he tries to
across languages and workers speak with one another. Even when the same complete the task without receiving clarity.
cultures language is spoken, there can be differences in the Sometimes it helps for companies to hire
meaning of certain words or jargon understanding bilingual employees who can mediate and
problems that can create confusion in the reduce language and communication barriers.
workplace.There are several tools that can help to work
around this problem, including translation tools from
Google. Unless there are direct translators present on a
team; however, there can be a misunderstanding that
could eventually lead to conflict.

4 Navigating visa This is the complicated process of navigating Providing a quiet space for prayer can make a
requirements, employment laws and visa requirements for workplace more welcoming and inclusive for
employment laws, and international workers. Requirements and regulations are employees with a range of beliefs, as can taking
the cost of different in each country and between countries and can into account different cultural or religious
accommodating change frequently. Beyond visas, further holidays. Of course, these considerations and
workplace requirements accommodations for recruiting and retaining a culturally accommodations can sometimes be an added
can be difficult diverse workforce should be taken into account. business cost as well as a logistical challenge.

5 Different Colleagues from other cultures might bring with them a Across cultures, the expectations of formality
understandings of variety of attitudes, beliefs, behaviors, and etiquette to (or relative informality), organizational
professional etiquette the workplace. While these might be stimulating and structure, and even working hours might be in
even advantageous in a varied professional setting, they contradiction. A Swedish professional may be
can also lead to miscommunication and unpleasant accustomed to a 6-hour workday, yet a Japanese
sentiments among team members. colleague may not believe it is polite to leave
work before their manager (or anybody else).

6 Conflicting work styles Workstyle conflicts occur because team members have You're frustrated because your colleague in
across teams different preferences on how to accomplish tasks. Some France keeps messaging you at 5 am (your
work quickly and move on to the next task as soon as time). They send you seemingly urgent requests
possible, while others prefer to complete tasks slowly when you're sleeping or just waking up, and
and mindfully. Some people are self-starters who you're sick of being bombarded with 11 requests
require little to no direction to finish a task, and others before you've even sat down at your desk. You
need guidance every step of the way. get the vibe they don't like you very much and
you don't know how to approach them.

7 In the workplace, When hiring managers place a premium on diversity, If the team is unable to reach an agreement, the
diversity may lead to an they are cultivating a pool of diverse viewpoints that can supervisor will be responsible for reaching a
overabundance of help determine the best path for future advancement. decision. This implies that someone will be
viewpoints. There are instances, though, when the sheer volume of "right," while others will be "wrong," and this
accessible viewpoints poses a dilemma for the process can lead to discord within the ranks over
organization. When everyone has an opportunity to time. Because of this issue, people who feel their
speak up, a project's pace may slow down just as rapidly opinions are overlooked may stop sharing their
as it can hurry up. thoughts, which lowers the benefits of
addressing diversity in the first place.

8 Complaint levels often Individual team members in a varied setting are more Imagine sitting next to a coworker who is
rise with a diversity likely to crash than those in an atmosphere where the continually clicking a pen to think, and that is
initiative. majority of individuals have the same viewpoint. how some people see this procedure. A rise in
Disruptive outcomes might occur from different complaints and grievances is common without
behaviors and working methods. proactive management, which means more time
and money is spent on investigations.
4. Discuss different ways to build multicultural team effectiveness
a. Overcome Language and Cultural Barriers
When working in a multicultural team, one of the most common challenges is handling language barriers between
employees. If each team member speaks a different language, you’ll want to find a common language you can all use so
every member can communicate with ease.
b. Consider Different Cultural Communication Styles
Every culture nurtures its own communication style, like speaking patterns and nonverbal communication. Nonverbal
communication includes everything beyond words — gestures, facial expressions, and body language. It’s crucial to
understand diverse communication styles between cultures and speak to your colleagues according to these rules.
c. Plan Projects Around Different Time Zones
Supervising a virtual team can be difficult because you’re not in the same place or time zone as your colleagues. You need
to organize your work properly and make plans according to these different time zones. Also, keep this in mind when
you’re setting deadlines for your team members.
To avoid any time-related confusion, try using time management apps. They will help you track project progress and
examine productivity levels by week so you can see the current activity level of your employees regardless of time zone.
d. Allow Prep Time Whenever Your Team Needs It
Remember to give your team — especially those speaking a different language than what they were raised on — enough
time to prepare themselves when speaking a foreign language. If they need to gather their thoughts or take time to make
a point, don’t interrupt or talk over them. Be patient and give them the time and space they need to communicate
effectively. This not only improves communication, but it helps your team members become more confident speaking
foreign languages as well.
e. Be Open to All Cultures and Their Differences
The best way to show your colleagues that you respect and appreciate them is by being open to the traditions and values
of all cultures. This means avoiding promoting or embracing only one culture in the workplace. For instance, during the
holiday season, it’s important to vary your decorations so all cultures are included. This way, your multicultural team will
know you respect and embrace whatever they celebrate during the holidays.
f. Organize Cross-Cultural Training
To improve workplace happiness and morale, organize cross-cultural training. The purpose of this training is to overcome
cultural challenges at the office. That way, people will get to know each other and educate themselves about various
cultural beliefs.
g. Avoid Stereotypes
When working in a multicultural team, be extra careful with the language you use. There’s a balance between being
mindful of cultural differences and relying on stereotypes to make assumptions about your employees’ behaviors... The
fact that your colleague is from Japan or France does not dictate every decision your employees make, and leaning on
this logic will likely offend them. Everyone, regardless of their cultural upbringing, is an autonomous individual, so treat
your coworkers in such a manner.
To avoid stereotypes, take time to become acquainted with every team member. Feel free to encourage your colleagues
to do so as well.
h. Practice Empathy
While talking with your colleagues, practice empathy. Empathy is defined as the ability to understand and share the
feelings of someone else. Empathy takes practice, and it’s important to continually grow your listening skills when in a
leadership role. Making an attempt to understand what your coworker is experiencing helps your relationship with them
thrive.
i. Deliver Honest Feedback
Providing your team with honest and constructive feedback is a significant part of your leadership and management
duties. Your colleagues deserve to know the truth about the quality of their work, be it positive or negative.
As a leader of a multicultural team, you have to be cautious about evaluating someone’s work. Each culture, and even
each country, has a unique way of giving feedback, especially when it’s constructive and can be easily viewed as negative.
j. Shared Norms
Culturally homogenous workgroups rely on shared assumptions and norms to coordinate their behavior. Shared
understanding also fosters trust and intimacy between group members.
After the group has agreed on an optimal group culture, members must be trained in shared norms. This is particularly
critical for countercultural practices that would otherwise be discomforting to some group members. Training should
include the provision of information on why a particular practice has been endorsed and how it will contribute positively
to group outcomes.
TOPIC 5: CROSS-CULTURE COMMUNICATION AND NEGOTIATION

1. Analyze the language, perception, culture of communication barriers to effective international business
Language
Knowledge of the home country’s language (the language used at the headquarters of the MNC) is important for personnel placed in a
foreign assignment. If managers do not understand the language that is used at headquarters, they likely will make a wide assortment
of errors. Additionally, many MNCs now prescribe English as the common language for internal communication, so that managers
can more easily convey information to their counterparts in other geographically dispersed locales.24 Despite such progress, however,
language training continues to lag in many areas, including in the United States, where only 8 percent of college students study a
foreign language.
Language education is a good beginning, but it is also important to realize that the ability to speak the language used at MNC
headquarters is often not enough to ensure that the personnel are capable of doing the work. Stout recently noted that many MNCs
worldwide place a great deal of attention on the applicant’s ability to speak English without considering if the person has other
necessary skills, such as the ability to interact well with others and the technical knowledge demanded by the job. Additionally, in
interviewing people for jobs, he has noted that many interviewers fail to take into account the applicant’s culture. As a result,
interviewers misinterpret behaviors such as quietness or shyness and use them to conclude that the applicant is not sufficiently
confident or self-assured. Still another problem is that nonnative speakers may know the language but not be fully fluent, so they end
up asking questions or making statements that convey the wrong message.
Perceptual Barriers
Perception is a person’s view of reality. How people see reality can vary and will influence their judgment and decision
making. Examples abound, of course, of how perceptions play an important role in international management. Japanese stockbrokers
who perceived that the chances of improving their career would be better with U.S. firms have changed jobs. Hong Kong hoteliers
bought U.S. properties because they had the perception that if they could offer the same top-quality hotel service as back home, they
could dominate the U.S. markets. Unfortunately, misperceptions can become a barrier to effective communication and thus decision
making. For example, when the Clinton administration decided to allow Taiwan President Lee Tenghui to visit the United States, the
Chinese (PRC) government perceived this as a threatening gesture and took actions of its own. Besides conducting dangerous war
games very near Taiwan’s border as a warning to Taiwan not to become too bold in its quest for recognition as a sovereign nation, the
PRC also snubbed U.S. car manufacturers and gave a much-coveted $1 billion contract to Mercedes-Benz of Germany.36,37,38 In
international incidents such as this, perception is critical, and misperceptions may get out of hand. The following sections provide
examples of perceptual barriers and their results in the international business arena.
One way that perception can prove to be a problem in international management communication is the very basic misunderstandings
caused when one side uses words or symbols that simply are misinterpreted by others. Many firms have found to their dismay that a
failure to understand home-country perceptions can result in disastrous advertising programs, for instance. Here are two examples:
Ford . . . introduced a low-cost truck, the “Fiera,” into some Spanish-speaking countries. Unfortunately, the name meant “ugly
old woman” in Spanish. Needless to say, this name did not encourage sales. Ford also experienced slow sales when it introduced
a top-of-the-line automobile, the “Comet,” in Mexico under the name “Caliente.” The puzzling low sales were finally understood
when Ford discovered that “caliente” is slang for a street walker.
One laundry detergent company certainly wishes now that it had contacted a few locals before it initiated its promotional
campaign in the Middle East. All of the company’s advertisements pictured soiled clothes on the left, its box of soap in the
middle, and clean clothes on the right. But, because in that area of the world people tend to read from the right to the left, many
potential customers interpreted the message to indicate the soap actually soiled the clothes

Managers must be very careful when they translate messages. As mentioned, some common phrases in one country will not mean the
same thing in others. Evidently from the many examples, errors in translation occur frequently, but MNCs can still come out on top
with care and persistence, always remembering that perception may create new reality.

The Impact of Culture

 Culture can affect communication in a number of ways, and one way is through the impact of cultural values.

Cultural Values
In North American society, the generally professed prevalent pattern is one of non-class consciousness, as far as work is concerned.
Students, for example, make extra pocket money by taking all sorts of part-time jobs—manual and otherwise—regardless of the
socioeconomic stratum to which the individual belongs. The attitude is uninhibited. In the Middle East, the overruling obsession is
how the money is made and via what kind of job.

These types of values indirectly, and in many cases directly, affect communication between people from different cultures. For
example, one would communicate differently with a “rich college student” from the United States than with one from Saudi Arabia.
Similarly, when negotiating with managers from other cultures, knowing the way to handle the deal requires an understanding of
cultural values. Another cultural value is the way that people use time. In the United States, people believe that time is an asset and is
not to be wasted. This is an idea that has limited meaning in some other cultures. Various values are reinforced and reflected in
proverbs that Americans are taught from an early age. These proverbs help to guide people’s behavior.

Misinterpretation
Cultural differences can cause misinterpretations both in how others see expatriate managers and in how the latter see themselves. For
example, U.S. managers doing business in Austria often misinterpret the fact that local businesspeople always address them in formal
terms. They may view this as meaning that they are not friends or are not liked, but in fact, this formal behavior is the way that
Austrians always conduct business. The informal, first-name approach used in the United States is not the style of the Austrians.

2. Explain approaches to international negotiations that respond to differences in culture (2 types of negotiation: Distributive
and Integrative negotiation)
Negotiation is the process of bargaining with one or more parties to arrive at a solution that is acceptable to all. It has been estimated
that managers can spend 50 percent or more of their time on negotiation processes. Therefore, it is a learnable skill that is imperative
not only for the international manager but for the domestic manager as well because more and more domestic businesses are operating
in multicultural environments
People enter into negotiations for a multitude of reasons, but the nature of the goal determines what kind of negotiation will take place.
There are two types of negotiations that we will discuss here: distributive and integrative negotiations. Distributive negotiations occur
when two parties with opposing goals compete over a set value. Consider a person who passes a street vendor and sees an item he
likes but considers the price, or set value, a bit steep. The goal of the buyer is to procure the item at the lowest price, getting more
value for his money, while the goal of the seller is to collect as much as possible to maximize profits. Both are trying to get the best
deal, but what translates into a gain by one side is usually experienced as a loss by the other, otherwise known as a win-lose situation.
The relationship is focused on the individual and based on a short-term interaction. More often than not, the people involved are not
friends, or at least their personal relationship is put aside in the matter. Information also plays an important role because you do not
want to expose too much and be vulnerable to counterattack.
Research has shown that first offers in a negotiation can be good predictors of outcomes, which is why it is important to have a strong
initial offer. This does not imply that overly greedy or aggressive behavior is acceptable; this could be off-putting to the other
negotiator, causing her or him to walk away. In addition to limiting the amount of information you disclose, it can be advantageous to
know a little about the other side.
Integrative negotiation involves cooperation between the two groups to integrate
interests, create value, and invest in the agreement. Both groups work toward maximizing benefits for both sides and distributing those
benefits. This method is sometimes called the win-win scenario, which does not mean that everyone receives exactly what they wish
for, but instead that the compromise allows both sides to keep what is most important and still gain on the deal. The relationship in
this instance tends to be more long term since both sides take time to really get to know the other side and what motivates them. The
focus is on the group, reaching for a best-case outcome where everyone benefits. This is the most useful tactic when dealing with
business negotiation, so from this point on, we assume the integrative approach.
3. Describe negotiation process
Several basic steps can be used to manage the negotiation process. Regardless of the issues or personalities of the parties involved, this
process typically begins with planning.
Planning
Planning starts with the negotiators identifying the objectives they would like to attain. Then they explore the possible options for
reaching these objectives. Research shows that the greater the number of options, the greater the chances for successful negotiations.
While this appears to be an obvious statement, research also reveals that many negotiators do not alter their strategy when negotiating
across cultures.65,66 Next, consideration is given to areas of common ground between the parties. Other major areas include the
setting of limits on single-point objectives, such as deciding to pay no more than $10 million for the factory and $3 million for the
land; dividing issues into short- and long-term considerations and deciding how to handle each; and determining the sequence in
which to discuss the various issues.
Interpersonal Relationship Building
The second phase of the negotiation process involves getting to know the people on the other side. This “feeling out” period is
characterized by the desire to identify those who are reasonable and those who are not. In contrast to negotiators in many other
countries, those in the United States often give little attention to this phase; they want to get down to business immediately, which
often is an ineffective approach.
Exchanging Task-Related Information
In this part of the negotiation process, each group sets forth its position on the critical issues. These positions often will change later in
the negotiations. At this point, the participants are trying to find out what the other party wants to attain and what it is willing to give
up.
Persuasion
This step of negotiations is considered by many to be the most important. No side wants to give away more than it has to, but each
knows that without giving some concessions, it is unlikely to reach a final agreement. The success of the persuasion step often
depends on (1) how well the parties understand each other’s position, (2) the ability of each to identify areas of similarity and
difference, (3) the ability to create new options, and (4) the willingness to work toward a solution that allows all parties to walk away
feeling they have achieved their objectives.
Agreement
The final phase of negotiations is the granting of concessions and hammering out a final agreement. Sometimes, this phase is carried
out piecemeal, and concessions and agreements are made on issues one at a time. This is the way negotiators from the United States
like to operate. As each issue is resolved, it is removed from the bargaining table and interest is focused on the next. Asians and
Russians, on the other hand, tend to negotiate a final agreement on everything, and few concessions are given until the end.
4. Discuss some negotiation tactics
A number of specific tactics are used in international negotiation. The following discussion examines some of the most common.
Location
Where should negotiations take place? If the matter is very important, most businesses will choose a neutral site. For example, U.S.
firms negotiating with companies from the Far East will meet in Hawaii, and South American companies negotiating with European
firms will meet halfway, in New York City. A number of benefits derive from using a neutral site. One is that each party has limited
access to its home office for receiving a great deal of negotiating information and advice and thus gaining an advantage on the other.
A second is that the cost of staying at the site often is quite high, so both sides have an incentive to conclude their negotiations as
quickly as possible. (Of course, if one side enjoys the facilities and would like to stay as long as possible, the negotiations could drag
on.) A third is that most negotiators do not like to return home with nothing to show for their efforts, so they are motivated to reach
some type of agreement.
Time Limits
Time limits are an important negotiation tactic when one party is under a time constraint. This is particularly true when this party has
agreed to meet at the home site of the other party. For example, U.S. negotiators who go to London to discuss a joint venture with a
British firm often will have a scheduled return flight. Once their hosts find out how long these individuals intend to stay, the British
 can plan their strategy accordingly. The “real” negotiations are unlikely to begin until close to the time that the Americans must leave.
The British know that their guests will be anxious to strike some type of deal before returning home, so the Americans are at a
disadvantage.
Time limits can be used tactically even if the negotiators meet at a neutral site. For example, most Americans like to be home with
their families for Thanksgiving, Christmas, and the New Year holiday. Negotiations held right before these dates put Americans at a
disadvantage because the other party knows when the Americans would like to leave.
Buyer-Seller Relations
How should buyers and sellers act? As noted earlier, Americans believe in being objective and trading favors. When the negotiations
are over, Americans walk away with what they have received from the other party, and they expect the other
party to do the same. This is not the way negotiators in many other countries think, however.
The Japanese, for example, believe that the buyers should get most of what they want. On the other hand, they also believe that the
seller should be taken care of through reciprocal favors. The buyer must ensure that the seller has not been “picked clean.” For
example, when many Japanese firms first started doing business with large U.S. firms, they were unaware of U.S. negotiating tactics.
As a result, the Japanese thought the Americans were taking advantage of them, whereas the Americans believed they were driving a
good, hard bargain.
The Brazilians are quite different from both the Americans and Japanese. Researchers have found that Brazilians do better when they
are more deceptive and self-interested and their opponents more open and honest than they are. Brazilians also tend to make fewer
promises and commitments than their opponents, and they are much more prone to
say no. However, Brazilians are more likely to make initial concessions. Overall, Brazilians are more like Americans than Japanese in
that they try to maximize their advantage, but they are unlike Americans in that they do not feel obligated to be open and forthright in
their approach. Whether they are buyer or seller, they want to come out on top.
5. Compose the win-win (Integrative) agreement to assess the needs of everyone in a particular business situation
Example Situation: David would like to have a more flexible work schedule where he can work remotely two or three days a week.
Ingrid, his boss, is concerned with not only making sure the work gets done, but also that David achieves high quality results. She also
wants to ensure sufficient team collaboration so the whole team can work efficiently and effectively.

David’s Wins Ingrid’s Wins

- Want to work remotely two or three days a week - Needs high quality results – all work done on time and
- Want to have more flexible work hours on the days with excellence
he is in the office ( start and leave earlier or later) - Needs to be able to contact David during normal
- Want to be trusted to get his job done without working hours
needing face time in the office. - Wants to make sure this does not start a trend everyone
- Feels confident he can use technology to stay will want – not all jobs are this flexible
connected with co-workers - Want to ensure sufficient collaboration between David
- Is willing to work evenings on days he leave early and other team members
- Wants to ensure that her boss continues to think she is
managing the team well

Our Agreement: David can work remotely two days a week for a three-month trial period. He needs to be contactable during normal
business hours. He can have more flexible work hours as long as the work gets done on time and with excellence. David will meet
weekly with Ingrid to track progress for the first month and to course-correct if needed. They will review progress at the end of each
month and decide then to either stop or continue the flexible work arrangement. Ingrid needs to feel that the work situation is good, if
not better, than the current one.