Intercultural Management Summary H1 – H6 & H16 – H18
Understanding cross-cultural management by Browaeys & Price, third
edition
Chapter 1
The fundamental aspect of culture is that it is something all humans learn
in one way or another. It is not something people inherit, but rather a code
of attitudes, norms and values, a way of thinking that is learnt within a
social environment.
Culture operates on three levels:
- Observable and tangible:
o Artefacts and attitudes (rituals, contracts, making contact,
language)
- Norms and values:
o Beliefs
- Basic assumptions:
o Can only be construed through interpretation of what is
happening at the other levels.
Giving dimensions to culture
Comparative model with six cultural orientations (Kluckholn and
Strodtbeck):
1. Nature of people
2. Relationship to nature
3. Relationship to other people
4. Modality of human activity (doing and being)
5. Temporal focus of human activity (future, past, present)
6. Concept of space (private/public)
Each culture can be seen as having three layers (described before
already):
1. Behavioural (explicit): immediately noticeable
1
, 2. Norms and values: norms are the written and unwritten rules of the
society, values are what is considered important or unimportant,
beautiful or not beautiful etc.
3. Assumptions and beliefs:
Four categories of value systems:
1. Traditional society: religion plays an important role (Arab countries).
2. Rational society: interests of the individuals come first (Germany).
3. A society which survival is the primary concern, where people are
not happy and rather intolerant (Ex-communist countries).
4. Post-modern society: tolerant and democratic (Scandinavia and
Netherlands).
Humanitarian norms and values are laid down in the Universal Declaration
of Human Rights.
Schein defines culture as: a set of basic assumptions which have
evolved over time and are handed down from one generation to the next.
The establishment of national culture can be contributed by several
‘institutions’:
- Family
- Religion
- Education
- Mass communication media
Chapter 2
Five dimensions of Hofstede:
- Power distance (high/low): attitutes to authority, distance between
individuals in a hierarchy.
- Uncertainty avoidance (high/low): degree of tolerance for
uncertainty or instability.
- Individual versus group orientation: independence and
interdependence, the loyalty towards oneself and towards a group.
- Masculine versus feminine orientation: importance of work goals
compared with personal goals.
- Short-term versus long-term orientation: fostering virtues related to
the past and present or virtues related to the future.
Low/high power distance
Refers to the extent to which members of a culture expect and accept that
power is unequally distributed in society.
LOW POWER DISTANCE HIGH POWER DISTANCE
MINIMUM OF INEQUALITY, SUPERIORS INEQUALITY IS UNAVOIDABLE,
OR SUBORDINATES ARE ALL THE SAME SUBORDINATES ARE DIFFERENT KINDS
OF PEOPLE
NO DIVERSITY IN PRIVILEGES, PRIVILEGES ARE STATUS SYMBOLS,
INDIVIDUALITY IS TO BE RESPECTED AUTHORITY IS TO BE RESPECTED
Individualism/collectivism
2
,This dimension concerns itself with the relationship between the individual
and the group.
COLLECTIVIST INDIVIDUALIST
‘WE’ MENTALITY, IDENTITY IS BASED ON ‘I’ MENTALITY, IDENTTY IS BASED ON
ONE’S SOCIAL GROUP, DECISIONS THE INDIVIDUAL, DECISIONS BASED ON
BASED ON WHAT IS THE BEST FOR THE WHAT IS THE BEST FOR AN INDIVIDUAL
GROUP
RELATIONSHIPS PREVAIL OVER TASK, TASKS PREVAIL OVER RELATIONSHIPS,
FOCUS IS ON BELONGING TO AN FOCUS IS ON INDIVIDUAL INITIATIVE
ORGANIZATION AND ACHIEVEMENT
Masculinity/Femininity
Assertiveness and competitiveness (masculine) versus feminine.
MASCULINITY FEMININITY
DISTINCT GENDER ROLES, MEN ARE FLUID GENDER ROLES, MEN AND
ASSERTIVE, WOMAN ARE NURTURING, WOMEN IN NURTURING ROLES, STRESS
STRESS ON COMPETITION ON CO-OPERATION AND ENVIRONMENT
AMBITION MOTIVATES, LIVE TO WORK, SERVICE MOTIVATES, WORK TO LIVE,
INDEPENCE IDEAL INTERDEPENCE IDEAL, MANAGERS USE
INTUITION AND STRIVE FOR CONSENSUS
Uncertainty avoidance
This measures the extent to which people in a certain culture avoid
uncertainty.
LOW UNCERTAINTY AVOIDANCE HIGH UNCERTAINTY AVOIDANCE
DEVIANCE IS NOT A THREAT, AMBIGUITY INTOLERANT OF DEVIANT PERSONS AND
IS TOLERATED, READINESS TO TAKE IDEAS, PREDICTABILITY IS PREFERABLE,
RISKS, TOLERATION OF INNOVATION CONCERN ABOUT SECURITY
THE FEWER RULES THE BETTER, FORMAL RULES AND REGULATIONS ARE
COMPETITION AND CONFLICT CAN BE NECESSARY, CONSENSUS IS BETTER
CONSTRUCTIVE THAN CONFLICT
Short-term orientation versus Long-term orientation
Based on the Chinese Value Survey.
SHORT-TERM ORIENTATION LONG-TERM ORIENTATION
NEED FOR ACHIEVEMENT, SELF- NEED FOR ACCOUNTABILITY, SELF-
DETERMINATION, PEOPLE SHOULD BE DISCIPLINE, DEVELOP AND MAINTAIN
REWARDED, STRESS IS ON SHORT-TERM LIFELONG NETWORKS, STRESS IS ON
PROFITS FUTURE MARKET POSITION
MANAGERS AND EMPLOYEES ARE IN OWNER-MANAGERS AND WORKERS
DIFFERENT CAMPS SHARE THE SAME ASPIRITIONS
Another work using dimensions is the Global Leadership and
Organizational Behaviour Effectiveness research programme: GLOBE,
which is a programme divided in four phases, designed to conceptualise,
operationalise, test and validate a cross-level integrated theory of the
relationship between culture and societal, organisational and leadership
effectiveness. The questions reflects two sides of culture:
3
, 1. Values
2. Practices
Chapter 3
Monocultural vision (melting Multicultural vision (salad
pot) bowl)
Essentialist: existence of groups Constructivist: identities are the
and identities, their internal result of historical evolution,
consistency and cultural specificity especially of interactions in a
is a given, accepted as such and dynamic process with other groups
unlikely to change. present in a society.
Universalist: values, moral Relativist: as long as there are
judgements, behavioural choices social groups and minorities
are stated as absolute and can be interacting in the same social
applied to the whole of humanity. space, it is necessary to respect
diversity.
Proponents of ‘equality’, found Proponents of ‘differences’ argue
mainly in liberal societies, promote that equality is a fiction that
the equality of all citizens in terms ignores cultural inequalities and
of formal rights and legal specific ethnic identity; in short,
administration. the differences that make the
heterogeneous social environment.
Objective: supporters emphasise Subjective: multiculturalists
the positive role of competition and emphasise the importance of
excellence. They demand objective ‘recognition’ in helping minorities
standards of quality that permit to develop a sense of self-esteem.
integration or exclusion when work They demand appropriate criteria
is being evaluated. for evaluation of performance.
Chapter 4
Kase:
1. Western managers: deal with managerial issues using a ‘deductive
thinking’ (bottom-up logic) approach which is defined as a process of
drawing logical consequences from premised. In this way,
consequences or outcomes are derived from what is assumed.
2. Eastern managers: deal with managerial issues using an ‘inductive
thinkin’ (top-down logic) approach which is a process of seeking new
knowledge which starts with a generalization and concludes with a
particular.
4
, Confucian Asia
Confucianism is about peace and universal love among humankind. Inside
Confucianism you have two types of schools:
- Theory-oriented school: subjective
- Practice-oriented school: objective
China
In China, relationships are key to business success (Guanxi). When Guanxi
with someone has been achieved, then the business of penetrating the
Chinese market is made easier.
Maintain relationships with business and governments is important.
Also important is ‘mianzi’, your face. Public and personal reputation must
be maintained at all cost and be used to influence other people in their
decision-making.
Guanxi compared to the Russian ‘blat’: Guanxi is much older tradition.
Blat is more to do with emotions and self-serving pleasure.
Japan
In Japan they use the ‘wa’, which is all about harmony. As well to the
relation to people as the relation to nature. Behaviour is collaborative and
about consensus-building. This behaviour is fundamental to decision-
making. Managers are seen as facilitators in decision-making in stead of
they make the decisions.
To their employees the employer is really loyal and provides job security:
sometimes for life!
South-Korea
Here it is all about the ‘chaebol’. Each chaebol is a combination of
companies held together by cross-ownership and cross-subsidies. It is lead
by families and owned by families which are autocratic and at the head of
a very strict hierarchy. Relations inside the clan can be very
communitarian.
Southern-Asia
Many traditions and family business.
5
Understanding cross-cultural management by Browaeys & Price, third
edition
Chapter 1
The fundamental aspect of culture is that it is something all humans learn
in one way or another. It is not something people inherit, but rather a code
of attitudes, norms and values, a way of thinking that is learnt within a
social environment.
Culture operates on three levels:
- Observable and tangible:
o Artefacts and attitudes (rituals, contracts, making contact,
language)
- Norms and values:
o Beliefs
- Basic assumptions:
o Can only be construed through interpretation of what is
happening at the other levels.
Giving dimensions to culture
Comparative model with six cultural orientations (Kluckholn and
Strodtbeck):
1. Nature of people
2. Relationship to nature
3. Relationship to other people
4. Modality of human activity (doing and being)
5. Temporal focus of human activity (future, past, present)
6. Concept of space (private/public)
Each culture can be seen as having three layers (described before
already):
1. Behavioural (explicit): immediately noticeable
1
, 2. Norms and values: norms are the written and unwritten rules of the
society, values are what is considered important or unimportant,
beautiful or not beautiful etc.
3. Assumptions and beliefs:
Four categories of value systems:
1. Traditional society: religion plays an important role (Arab countries).
2. Rational society: interests of the individuals come first (Germany).
3. A society which survival is the primary concern, where people are
not happy and rather intolerant (Ex-communist countries).
4. Post-modern society: tolerant and democratic (Scandinavia and
Netherlands).
Humanitarian norms and values are laid down in the Universal Declaration
of Human Rights.
Schein defines culture as: a set of basic assumptions which have
evolved over time and are handed down from one generation to the next.
The establishment of national culture can be contributed by several
‘institutions’:
- Family
- Religion
- Education
- Mass communication media
Chapter 2
Five dimensions of Hofstede:
- Power distance (high/low): attitutes to authority, distance between
individuals in a hierarchy.
- Uncertainty avoidance (high/low): degree of tolerance for
uncertainty or instability.
- Individual versus group orientation: independence and
interdependence, the loyalty towards oneself and towards a group.
- Masculine versus feminine orientation: importance of work goals
compared with personal goals.
- Short-term versus long-term orientation: fostering virtues related to
the past and present or virtues related to the future.
Low/high power distance
Refers to the extent to which members of a culture expect and accept that
power is unequally distributed in society.
LOW POWER DISTANCE HIGH POWER DISTANCE
MINIMUM OF INEQUALITY, SUPERIORS INEQUALITY IS UNAVOIDABLE,
OR SUBORDINATES ARE ALL THE SAME SUBORDINATES ARE DIFFERENT KINDS
OF PEOPLE
NO DIVERSITY IN PRIVILEGES, PRIVILEGES ARE STATUS SYMBOLS,
INDIVIDUALITY IS TO BE RESPECTED AUTHORITY IS TO BE RESPECTED
Individualism/collectivism
2
,This dimension concerns itself with the relationship between the individual
and the group.
COLLECTIVIST INDIVIDUALIST
‘WE’ MENTALITY, IDENTITY IS BASED ON ‘I’ MENTALITY, IDENTTY IS BASED ON
ONE’S SOCIAL GROUP, DECISIONS THE INDIVIDUAL, DECISIONS BASED ON
BASED ON WHAT IS THE BEST FOR THE WHAT IS THE BEST FOR AN INDIVIDUAL
GROUP
RELATIONSHIPS PREVAIL OVER TASK, TASKS PREVAIL OVER RELATIONSHIPS,
FOCUS IS ON BELONGING TO AN FOCUS IS ON INDIVIDUAL INITIATIVE
ORGANIZATION AND ACHIEVEMENT
Masculinity/Femininity
Assertiveness and competitiveness (masculine) versus feminine.
MASCULINITY FEMININITY
DISTINCT GENDER ROLES, MEN ARE FLUID GENDER ROLES, MEN AND
ASSERTIVE, WOMAN ARE NURTURING, WOMEN IN NURTURING ROLES, STRESS
STRESS ON COMPETITION ON CO-OPERATION AND ENVIRONMENT
AMBITION MOTIVATES, LIVE TO WORK, SERVICE MOTIVATES, WORK TO LIVE,
INDEPENCE IDEAL INTERDEPENCE IDEAL, MANAGERS USE
INTUITION AND STRIVE FOR CONSENSUS
Uncertainty avoidance
This measures the extent to which people in a certain culture avoid
uncertainty.
LOW UNCERTAINTY AVOIDANCE HIGH UNCERTAINTY AVOIDANCE
DEVIANCE IS NOT A THREAT, AMBIGUITY INTOLERANT OF DEVIANT PERSONS AND
IS TOLERATED, READINESS TO TAKE IDEAS, PREDICTABILITY IS PREFERABLE,
RISKS, TOLERATION OF INNOVATION CONCERN ABOUT SECURITY
THE FEWER RULES THE BETTER, FORMAL RULES AND REGULATIONS ARE
COMPETITION AND CONFLICT CAN BE NECESSARY, CONSENSUS IS BETTER
CONSTRUCTIVE THAN CONFLICT
Short-term orientation versus Long-term orientation
Based on the Chinese Value Survey.
SHORT-TERM ORIENTATION LONG-TERM ORIENTATION
NEED FOR ACHIEVEMENT, SELF- NEED FOR ACCOUNTABILITY, SELF-
DETERMINATION, PEOPLE SHOULD BE DISCIPLINE, DEVELOP AND MAINTAIN
REWARDED, STRESS IS ON SHORT-TERM LIFELONG NETWORKS, STRESS IS ON
PROFITS FUTURE MARKET POSITION
MANAGERS AND EMPLOYEES ARE IN OWNER-MANAGERS AND WORKERS
DIFFERENT CAMPS SHARE THE SAME ASPIRITIONS
Another work using dimensions is the Global Leadership and
Organizational Behaviour Effectiveness research programme: GLOBE,
which is a programme divided in four phases, designed to conceptualise,
operationalise, test and validate a cross-level integrated theory of the
relationship between culture and societal, organisational and leadership
effectiveness. The questions reflects two sides of culture:
3
, 1. Values
2. Practices
Chapter 3
Monocultural vision (melting Multicultural vision (salad
pot) bowl)
Essentialist: existence of groups Constructivist: identities are the
and identities, their internal result of historical evolution,
consistency and cultural specificity especially of interactions in a
is a given, accepted as such and dynamic process with other groups
unlikely to change. present in a society.
Universalist: values, moral Relativist: as long as there are
judgements, behavioural choices social groups and minorities
are stated as absolute and can be interacting in the same social
applied to the whole of humanity. space, it is necessary to respect
diversity.
Proponents of ‘equality’, found Proponents of ‘differences’ argue
mainly in liberal societies, promote that equality is a fiction that
the equality of all citizens in terms ignores cultural inequalities and
of formal rights and legal specific ethnic identity; in short,
administration. the differences that make the
heterogeneous social environment.
Objective: supporters emphasise Subjective: multiculturalists
the positive role of competition and emphasise the importance of
excellence. They demand objective ‘recognition’ in helping minorities
standards of quality that permit to develop a sense of self-esteem.
integration or exclusion when work They demand appropriate criteria
is being evaluated. for evaluation of performance.
Chapter 4
Kase:
1. Western managers: deal with managerial issues using a ‘deductive
thinking’ (bottom-up logic) approach which is defined as a process of
drawing logical consequences from premised. In this way,
consequences or outcomes are derived from what is assumed.
2. Eastern managers: deal with managerial issues using an ‘inductive
thinkin’ (top-down logic) approach which is a process of seeking new
knowledge which starts with a generalization and concludes with a
particular.
4
, Confucian Asia
Confucianism is about peace and universal love among humankind. Inside
Confucianism you have two types of schools:
- Theory-oriented school: subjective
- Practice-oriented school: objective
China
In China, relationships are key to business success (Guanxi). When Guanxi
with someone has been achieved, then the business of penetrating the
Chinese market is made easier.
Maintain relationships with business and governments is important.
Also important is ‘mianzi’, your face. Public and personal reputation must
be maintained at all cost and be used to influence other people in their
decision-making.
Guanxi compared to the Russian ‘blat’: Guanxi is much older tradition.
Blat is more to do with emotions and self-serving pleasure.
Japan
In Japan they use the ‘wa’, which is all about harmony. As well to the
relation to people as the relation to nature. Behaviour is collaborative and
about consensus-building. This behaviour is fundamental to decision-
making. Managers are seen as facilitators in decision-making in stead of
they make the decisions.
To their employees the employer is really loyal and provides job security:
sometimes for life!
South-Korea
Here it is all about the ‘chaebol’. Each chaebol is a combination of
companies held together by cross-ownership and cross-subsidies. It is lead
by families and owned by families which are autocratic and at the head of
a very strict hierarchy. Relations inside the clan can be very
communitarian.
Southern-Asia
Many traditions and family business.
5
