Module 32: cross cultural management 1. Learning outcomes

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2 Quadrant IV Module 32: Cross cultural management 1. Learning Outcome 2. Introduction 3. Diversity in the work place 4. Hofstede's cultural dimensions theory 5. Low Context Culture 6. High context culture 7. Lewis cross-cultural communication model 8. Summary Module 32: cross cultural management 1. Learning outcomes 1.1. After completing this module the students will be able to: Learn about the significance of cross cultural management Study Hofstede's cultural dimensions theory and find out its significance in cross cultural management Learn about low context and high context culture. 2. Introduction Due to the advent of globalization the corporate world is becoming more and more interrelated. People with different backgrounds, education and cultures are expected to work together. This can sometimes lead to conflicts in the organization, it is therefore imperative for managers to know about the basics and process of cross cultural management. Diversity management is the process through which managers make everyone sensitive and aware of the needs and differences or others. Cross cultural management is the practice of managing work teams so that the differences in cultures, practices and preferences of consumers in a global or international business context are considered and the performance of the team is not hampered by the difference between the various members of the team.in order to compete in a world that is no longer bound by geography corporates now have to change and modify their methods. While intercontinental commercial transactions go back hundreds of years, intercultural interactions are becoming increasingly important in today s world because with more people having access to wider and newer markets due to new technology the world is rapidly shrinking. The world today is shrinking at an increasingly faster rate because ofwireless technology and faster interactions across the seas, at the same time travel has also become faster and easier, therefore it is important for people to know how to interact in different cultural contexts. The necessity of cross cultural management as part of training or curriculum is not limited to business and managers only; it is also a requirement for many other professions. Example, academics thatintend to work in cultural situations different from the ones they grew up in, must have effective communication skills to prevent mistakes, confusions and to remain respectful to those around them (both personally and professionally). Good

3 communication skills are necessary for any and allprofessions;therefore learning to communicate effectively across various cultural settings and circumstances has become vital in any field. There are various ways to categorize and define what is and is not culture. Cultures can be nationalistic or regional, and the differences between different national or regional cultures become apparent when two people from different parts of the world interact. Certain practices and behaviors that are considered impolite in some cultures are considered normal in many others. Different ethnic or religious cultures can exist within a single nation or region as well, and different subcultures can exist within those ethnic or religious cultures. In relations to human society, culture refers to learned behaviors, practices and points of view that are characteristic of a specific group of people. Generalizations about culture can lead to stereotypes, such as the idea that all Americans are fat, lazy, rich people who eat junk food and watch lots of TV. However, some all-encompassing interpretations can be made about specific cultures short of resorting to disparaging stereotypes, and these interpretations have been the subject of study for many generations of social scientists.humans aren't the only animals that experience culture. Researchers have identified cultural traits that are present among groups of animals; such as Chimpanzees who have dominance hierarchies in their social group. Human culture can be categorized in various ways, such as national cultures, which can be seen in the different behaviors observed in between any two countries take for example India and Pakistan; religious cultures, such as the differences observed between people of different religions like Hindus, Muslims, Sikhs and Christians; ethnic cultures, such as the differences between the various tribes and castes in India. Other types of culture, including subcultures and cultures based on factors such as gender and sexuality, also exist. A "culture clash" is a conflict between cultures, or a quarrel arising between two parties of different beliefs, values and practices. Criminal transgressions and misbehaviors often arise from culture clashes.poor handling differences between different cultures can lead to the rise of conflicts. Behavior and perception of the situation affect the likelihood of a resolution. For instance, tolerance and patience help diminish the problem, whereas disrespect and feelings of superiority provoke the situation and turn it into discrimination, exclusion and even war. 3. Diversity in the work place Workplace diversity can refer to any characteristic that leads to differentiation between people. No two humans are the same; these differences are a result of the culture that we have been brought up. Even within the same culture people are different due to their upbringing, values and morals. To managers it is important to recognize the difference and to capitalize on them in order to get the most out of their employees. Effective management of organizational diversity can net the organization a wide pool of skills, abilities and ideas. In an organization the diversity can be divided into two levels Surface level diversity the diversity arising out of demographics (gender, race, ethnicity, age, disability, etc.) of an organization. These differences can be readily observed but they have little or no ability to reflect the thought processes of people but give rise to certain stereotypes. Deep level diversity the diversity arising out of differences in values, personalities, work preference and thought processes. This kind of diversity

4 becomes progressively important as people are better acquainted with each other. 4. Hofstede's cultural dimensions theory Hofstede's cultural dimensions theory is anoutline for cross-cultural communication, developed by Geert Hofstede. It illustrates the influence of a society's culture on the ethics of its members, and how these ethics connect to behaviour. Hofstede developed his original model between 1967 and 1973 while he was working for IBM. He surveyed more than 100,000 IBM employees and established that managers and employees differ in five value aspects of national culture i.e. power distance, individualism vs. collectivism, masculinity vs. femininity. Uncertainty avoidance, long term vs. short term orientation.in 2010, Hofstede added a sixth dimension, indulgence versus self-restraint Power distance index (PDI): it is the extent to which the members of a society, organizations or institutions agreethat power in organizations and institutions is distributed unequally.a high value of the Index signifies that hierarchy is clearly recognized and implemented in society; whereas a low value of the Index signifies that the society stresses on equality High PDI Low PDI High IDV PDI Characteristics Tips Centralized organizations. More complex hierarchies. Large gaps in compensation, authority and respect. Flatter organizations. Supervisors and employees are considered almost as equals. Acknowledge a leader's status. As an outsider, you may try to circumvent his or her power, but don't push back explicitly. Be aware that you may need to go to the top for answers. Delegate as much as possible. Ideally, involve all those in decision making who will be directly affected by the decision Individualism vs. collectivism (IDV): it is the degree to which people in a society are integrated into groups. In individualistic societies people prefer to act as individuals rather than as groups whereas in collectivistic societies have a strong social framework and members of a group support each other. IDV Characteristics Tips High value placed on people's time and their need for privacy and freedom. An enjoyment of challenges, Acknowledge individual accomplishments. Don't mix work life with social life too much.

5 Low IDV IDV Characteristics Tips and an expectation of individual rewards for hard work. Respect for privacy. Emphasis on building skills and becoming master of something. People work for intrinsic rewards. Maintaining harmony among group members overrides other moral issues. Encourage debate and expression of people's own ideas. Wisdom is important. Suppress feelings and emotions that may endanger harmony. Avoid giving negative feedback in public. Saying "No" can cause loss of face, unless it's intended to be polite. For example, declining an invitation several times is expected Uncertainty avoidance index (UAI): The uncertainty avoidance index is the extent to which ambiguity and uncertainty threaten a society and tries to avoid it. Societies with a high score in this index have a high level of anxiety towards the unknown. A lower degree in this index shows more acceptances of differing thoughts/ideas and ambiguity. High UAI UAI Characteristics Tips Conservative, rigid and structured, unless the danger of failure requires a more flexible attitude. Many societal conventions. People are expressive, and are allowed to show anger or emotions, if necessary. A high energy society, if people feel that they are in control of their life instead of feeling overwhelmed by life's vagaries. Be clear and concise about expectations and goals, and set clearly defined parameters. But encourage creative thinking and dialogue where you can. Recognize that there may be unspoken "rules" or cultural expectations you need to learn. Recognize that emotion, anger and vigorous hand gestures may simply be part of the conversation.

6 Low UAI High MAS Low MAS UAI Characteristics Tips Openness to change or innovation, and generally inclusive. More inclined to open-ended learning or decision making. Less sense of urgency. Ensure that people remain focused, but don't create too much structure. Titles are less important, so avoid "showing off" your knowledge or experience. Respect is given to those who can cope under all circumstances Masculinity vs. femininity (MAS): according to Hofstede in this dimension, masculinity is the preference in society for traditional masculine roles ofachievement, heroism, assertiveness, power, control and material rewards for success as compared to treating men and women as equals. In masculine society there still is a recognized gap between male and female values. MAS Characteristics Tips Strong egos feelings of pride and importance are attributed to status. Money and achievement are important. Relationship oriented/consensual. More focus on quality of life. Be aware of the possibility of differentiated gender roles. A long-hours culture may be the norm, so recognize its opportunities and risks. People are motivated by precise targets, and by being able to show that they achieved them either as a group or as individuals. Success is more likely to be achieved through negotiation, collaboration and input from all levels. Avoid an "old boys' club" mentality, although this may still exist. Workplace flexibility and work-life balance may be important, both in terms of job design, organizational environment and culture, and the way that performance management can be best realized Long-term orientation vs. short-term orientation (LTO): This dimension associates the connection of the past with the current and future actions/challenges. A lower degree of this index (short-term) indicates that traditions are honoured, steadfastness is valued and fulfilment of social obligations. Societies with a high degree in this index (long-term) view

7 Long-term orientation Short-term orientation adaptation and circumstantial, pragmatic problem-solving as a necessity; there is an emphasis on future, thrift and persistence. LTO Characteristics Tips People often wonder how to know what is true. For example, questions like "What?" and "How?" are asked more than "Why?" Thrift and education are seen as positive values. Modesty. Virtues and obligations are emphasized. People often want to know "Why?" Strong convictions. As people tend to oversell themselves, others will assess their assertions critically. Values and rights are emphasized. Behave in a modest way. Avoid talking too much about yourself. People are more willing to compromise, yet this may not always be clear to outsiders; this is certainly so in a culture that also scores high on PDI. Sell yourself to be taken seriously. People are less willing to compromise as this would be seen as weakness. Flattery empowers Indulgence vs. restraint (IND): Indulgence is defined as the degree to which society allows relatively free gratification of basic and natural human desires and to enjoy life and restraint is defined as the degree to which social norms govern the gratification of basic human needs. PDI Characteristics Tips High Indulgence High Restraint Optimistic. Importance of freedom of speech. Focus on personal happiness. Pessimistic. More controlled and rigid behaviour. Don't take life too seriously. Encourage debate and dialogue in meetings or decision making. Prioritize feedback, coaching and mentoring. Emphasize flexible working and work-life balance. Avoid making jokes when engaged in formal sessions. Instead, be professional. Only express negativity about the world during informal meetings. 5. LowContext Culture

8 Low context culture was first discussed and defined by anthropologist Edward T. Hall in Culture that communicates information in a manner that relies mainly on words communicates information i.e. they take a more direct and explicit approach is a low context culture.this type of culture is not high on contextual elements of communication (the speaker's tone of voice or body language).communication is expected to be straightforward and precise, and the entire message must be effectively conveyed thru the use of words. The rule of communication must be explained to those who are not familiar with the culture Low-context cultures are individualistic in naturei.e. individual achievements are valued higher than group accomplishments. Members of low-context cultures are independent of one another and are expected to look out for themselves, with the exception of family. Some common characteristics of low context cultures include: Emphasis on logic and facts Words are more important than body language Verbal messages are explicit, direct, and concise Tasks or goals are more important than relationships Knowledge is explicit, visible, and can be easily conveyed to others Primary method of learning is through explicit directions and instructions Decisions and actions focus on the goal and dividing responsibility Some examples of low context cultures are USA. Canada, Germany, Switzerland 6. High context culture High context culture was first discussed by anthropologist Edward T. Hall in 1976 in his book titled Beyond Culture. Cultures where the greater part of communication takes place through the use of contextual elements (i.e., body language, a person's status, and tone of voice) as compared to verbal are called as high context cultures. Members of high-context cultures usually have close relationships that last for an extended period of time. As a result of these years of close interacting with one another, the members of these cultures know the rules, how to think, and how to behave, so the rules do not have to be explicitly stated. This plethora of unsaid rules of high context cultures makes it difficult to navigate for those who do not understand the culture's unwritten rules Some common characteristics of highcontext cultures include: Primarily use non-verbal methods to relay meaningful information in conversations, such as facial expressions, eye movement, and tone of voice The situation, people, and non-verbal elements are more important than the actual words that are communicated People are comfortable standing close to each other The preferred way of solving problems and learning is in groups Members of the culture place emphasis on interpersonal relationships Trust must be developed before business transactions can begin. Some examples of high context culture include, Japan and other countries located in Asia, Brazil and other countries located in South America 7. Lewis cross-cultural communication model 7.1. Culture refers to learned behaviors, practices and points of view that are characteristic of a specific group of people. Our behavior is influenced by our culture and is learned. There are many factors that influence our behavior such as religious

9 upbringing, ethnicity, generation gap, class and gender programming, education, social culture and the professional ethics we have been taught and accepted All these aspects influence our behavior and a variation in any of them will lead to a change in our behavior. While these factors might look absolutes that are actually very subjective thatdepend on the culture we have been brought up in. When we travel or move to other countries the social norms we are used to may not necessarily be the norm there Lewis cross cultural model of communication explain the differences between various cultures in terms of: how people from different cultures vary in their concepts of time and space: handle interpersonal distance, silence, and eye contact how their communication styles are reflected in the language patterns they use how they view the truth: as absolute or negotiable i.e. modifiable according to the situation What their values, attitudes and world views are. LINEAR-ACTIVE MULTI-ACTIVE REACTIVE Talks half the time Talks most of the time Listens most of thetime Solicits informationfirst-hand from Uses both data andpeople Gets data from stats, research people sources Plans ahead step bystep Plans grand outlineonly Looks at generalprinciples Polite but direct Emotional Polite and indirect Partly conceals feelings Displays feelings Conceals feelings

10 Confronts with logic Confronts emotionally Never confronts Dislikes losing face Has good excuses Must not lose face Compartmentalizesprojects Let s one projectinfluence another Sees the wholepicture Rarely interrupts Often interrupts Doesn t interrupt Job-oriented People-oriented Very people- oriented Sticks to the facts Juggles the facts Statements arepromises Truth before diplomacy Flexible truth Diplomacy overtruth Sometimes impatient Impatient Patient Limited body language Unlimited bodylanguage Subtle bodylanguage Respects officialdom Pulls strings Networks Separates the social Interweaves thesocial & Connects the social& &professional professional professional Does one thing at a time Multi tasks Reacts to partner saction Punctuality veryimportant Punctuality notimportant Punctualityimportant (Source: 8. Summary We have learned that cross cultural management is the practice of managing work teams so that the differences in cultures are considered and the performance of the team is not hampered by the difference between the various members of the team. It is therefore become increasingly important to study the significance and techniques of cross cultural management. Good communication skills, having the ability to communicate effectively and knowing the differences in culture (Low context and high context culture) are the corner stones of cross cultural management. We have also studied the six dimensions given by Hofstede for cultural values (Power distance index (PDI), Individualism vs. collectivism (IDV), Uncertainty avoidance index (UAI), Masculinity vs. femininity (MAS), Long-term orientation vs. short-term orientation (LTO), Indulgence vs. restraint (IND) and learned about their significance in cross cultural communication. We have differentiated between low context cultures and high context cultures and looked at the prime characteristics of both these cultures. We also looked at thelewis crosscultural communication model of communication and saw how different cultures act in different situations.

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