Mitigate Culture Shock to Make Your Foreign Assignment a Success

Transcription

1 Mitigate Culture Shock to Make Your Foreign Assignment a Success Nikita Andreev, CPIM Borouge Pte. (United Arab Emirates) The objectives: Fully acknowledge the opportunities and pitfalls created by a global shift of economical power. Use a simple tool to assess and understand the cultural differences. Apply the knowledge about the cultural differences. Agenda: The world is globalizing. Here come your career opportunities. Foreign assignments failures. Cultural Shock Triangle Geert Hofstede TM Cultural Dimensions. Examples of using the cultural dimensions in practice of operations management.

2 New trends in the world: Shifts in political and military balances. Macroeconomic changes. Climate change, preservation of the environment. Deficit of water and food resources. Global security regulations, risk management, tighter state and inter-state controls. Macroeconomic changes Shift to new centers of economical development Changes in financial markets; Demographic changes Shortage of talents; competition for them Limited resources and unlimited demand Deterioration of availability of natural resources and increase in exploration costs Manufacturing globalization continues in 2020 By 2020 even more companies will manufacture goods internationally Today 46% of companies run operations in one country only By % of companies will run operations in several countries Almost all companies will produce goods for the global market Simultaneously, manufactured products will be more and more localized for a specific region Source: Capgemini report Manufacturing in 2020, Dec 2008.

3 New companies are coming from the developing markets Source: The Economist, Globalization: A Bigger World, Sep 18, The Economist Newspaper Limited, London (17 Sep 2009) What does it mean for operations managers? More jobs will be vacant in BRIC countries and in the Middle East Manufacturing in The Old West will be focused on high tech products Tremendous shortage of skilled professionals in new markets creates lucrative opportunities for your career You may find yourself in a different cultural environment even in your own country Your career opportunity in new markets: Talent shortage in growth market exceeds 80% Shortage of specialized skills exceed 80% Talent shortage across organizations exceed 60% More than 50% of employees in India and China have been contacted by head hunters during a year Source: The Economist, The battle for brainpower, Oct 5, 2006.

4 Foreign assignment the motives Fill skill gap Build management expertise Launch new endeavors Technology transfer Transfer corporate culture Source: GMAC Global Relocation Services, survey Global Relocation Trends, The opportunities for you Your position abroad might be of a higher level It can become a jump-start to your career International experience Mastering a foreign language; You income might grow by a factor of 2-3 Unique professional experience You experience a foreign culture From , 30% to 70% of foreign assignments were terminated early. Inadequate recruitment process Inadequate orientation in a new culture and business ethics Insufficient preparation of the partner and kids for a new culture Family problems; divorces as a consequence of a cultural shock Abuse of alcohol and other substances Gender inequality in a new country Repatriation problems (20% of expatriates left their companies upon completing the foreign assignment) Source: Robert L. Minter, Delaware State University, Preparation Of Expatriates For Global Assignments: Revisited, Journal of Diversity Management Second Quarter 2008, vol 3, nr. 2.

5 What is a culture? We see They think Their feelings Adapted from: Guy Rocher, Introduction a le sociologie generale, Tome 1, 1969 Way of life Language Laws and habits Institutions Rituals Methods Norms of behavior Roles Religion Ideology Philosophy Values Tastes Wishes Attitudes Expectations Assumptions Myths The cultural shock comes when We feel upset and powerless because we do not understand our colleagues We are angry on circumstances, on our boss; on others We fall in depression because we can accomplish nothing We feel helpless and the events go out of our control What is the weekend in Abu Dhabi (UAE)? 1. Saturday and Sunday 2. Saturday only 3. Friday and Saturday 4. Thursday and Friday 5. Friday only

6 Cultural shock triangle: Emotional component how to cope with the mood swings? Mental component how to understand colleagues? Social component how to find a social circle? Stages of the cultural shock: Home In a new country Home/ next assignment Honeymoon Honeymoon Cultural shock Emotions& Energy Gradual adaptation and integration People s behavior is senseless My behavior does not bring the usual results Unusual requirements Reversed cultural shock Stages of adjustment and integration 7. Anxiousness caused by repatriation; 1. Initial anxiousness 4. Anger/ loss of illusion happiness 2. Honeymoon 5. Process of adjustment 8. Reversed cultural shock 3. First cultural shock 6. Acceptance of a new culture 9. Re-integration Adapted from: Heather Rozen, Foreign Assignment Preparedness: A Case Study for Success; CERC conference types of reactions To ignore unusual situation - colonialist To apply a usual way of thinking (and to come often to a wrong conclusion) imperialist To subordinate your behavior to the values of a new culture immigrant To build a bridge between 2 cultures internationalist

7 A FIRST STEP: TO UNDERSTAND YOURSELF TO UNDERSTAND YOUR CULTURE! Geert Hofstede and His Cultural Dimensions Power Distance Index (PDI) that is the extent to which the less powerful members of organizations (or a family) accept and expect that power is distributed unequally. Individualism (IDV) on the one side versus its opposite, collectivism, that is the degree to which individuals are integrated into groups. Source: Geert Hofstede, Culture s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations, 2001 Cultural Dimensions (cont.) Masculinity (MAS) versus its opposite, femininity, refers to the distribution of roles between the genders. Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity. Long-Term Orientation (LTO) versus shortterm orientation indicates a certain set of prevailing values in the society. Source: Geert Hofstede, Culture s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations, 2001

8 USA - Netherlands: LTO UAI MAS Netherlands USA IDV PDI Source: Geert Hofstede, Culture s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations, 2001 USA Arab World LTO UAI MAS Arab Worlds USA IDV PDI Source: Geert Hofstede, Culture s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations, 2001 Practical advice The model is NOT suitable for forecasting behavior of a specific individual. If the leaders at the negotiation table represent the culture with very different dimensions the misunderstanding is more than possible to happen. A manager must adjust his managerial style to the expectations of the group he manages.

9 Example 1: Different power distances who prefer a high power distance? who prefer a small power distance? Change announcement is made by the top management. Use your formal authority. Tell subordinates what to do. Convince people. Involve people in discussions; explain your position. Allow to challenge your opinion. Leave to your team to discuss HOW after you explained WHAT. Source: John W. Bing, Hofstede s consequences: The impact of his work on consulting and business practices, Academy of Management Executive, February 2004, Vol. 18, No. 1 Example 2: Different individualism who rely on themselves and take responsibility for their actions? who are more oriented to their group ( tribe )? Focus attention on what the change brings to them (appeal to personal interests). Allow individuals to challenge your opinion, answer the questions. Focus attention on the benefits for the group (appeal to group interests). Allow time for a group to formulate their position; answer the questions posed by the group. Source: John W. Bing, Hofstede s consequences: The impact of his work on consulting and business practices, Academy of Management Executive, February 2004, Vol. 18, No. 1 Example 3: Uncertainty avoidance who have low tolerance to uncertainty? Acknowledge their need in information. Present information in a very structured way; explain the rules. Focus their attention on clearly structured rules and procedures. Present the analysis of the changes and the benefits. who have high tolerance to uncertainty? Present them with the basic information. What is important is to convince them in the base benefit case. Encourage creativity. Focus on education process; you begin with the base case and build your presentation on their questions. Source: John W. Bing, Hofstede s consequences: The impact of his work on consulting and business practices, Academy of Management Executive, February 2004, Vol. 18, No. 1

10 Example 4: Masculinity vs. femininity How do you interact with achievement oriented people ( macho )? Reward the efforts under stress. Expect that job has priority over family. These people live to work. You deliver 20% more than promised. Demonstrate selfassertiveness and decisiveness. Stress importance of the deadlines. who are oriented on a high quality of life (femininity)? Demonstrate your humbleness and respect to others. Solve the conflicts via compromises and negotiations. See your role as a servant for your subordinates; demonstrate solidarity. Focus attention on customer needs. Remember that these people work to live. Source: John W. Bing, Hofstede s consequences: The impact of his work on consulting and business practices, Academy of Management Executive, February 2004, Vol. 18, No. 1 Key success components for a foreign assignment Candidate selection with respect to their capability of cultural accommodation. A candidate must be well informed about the expectations from his mission. Cross-cultural training is a must. Involvement of the family members in the cross-cultural training, information about daily life, habits. Career planning before, during and after the foreign assignment. Support to the assignee s family. Maintaining the connection between the assignee and his base company (career manager). Takeaways Consider a foreign assignment as a challenging but highly rewarding opportunity for career growth in a changing world. Don t underestimate the impact of a cultural shock on your career and personal life. Be prepared! Geert Hofstede s Cultural Dimensions can help you to prepare yourself and your family for a new culture. Adjust your managerial style to a host culture. Spend enough time to learn and read about your own and a new cultures. Build a bridge!

11 Nikita Andreev Project Leader, Supply Chain Borouge Pte Ltd Sheikh Khalifa Energy Complex Borouge Tower Corniche Road P.O.Box 6951 Abu Dhabi UAE