C.1.2.1 Intercultural Dimensions - PowerPoint Presentation

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C.1.2.1 Intercultural Dimensions

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Embeddedness:

Informal institutions, customs, traditions, norms, religion

Institutional Environment:Formal rules of the game – esp.Property (polity, judiciary, bureaucracy)

Governance: Play of the game – esp. Contract (aligning governance structures with transactions)

Resource allocation and employment (prices and quantities; incentive alignment

Level

L1

L2

L3

L4

Frequency

(years)

10

2

to 10

3

10 to 10

2

1 to 10

continuous

Purpose

Often noncalculative;

spontaneous

Get the institutional

environment right.

1st order economising

Get the governance

structures right. 2nd order economising

Get the marginal conditions right.3rd order economising

Williamson (2000)

L1: social theory L3: transaction cost economicsL2: economics of property rights/ positve political theory L4: neoclassical economics/ agency theory

2

Macro

level

Culture

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Tools

for Macro Screening - PESTLE

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Learning Objectives

Understand and compare different cultural taxonomies Be able to classify different cultures according to various dimensions to make sense of generalised (stereotypical) behaviour in host countriesBe aware of advantages and disadvantages of different taxonomies

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Daniel Schmidt in China

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What is culture?

Lustig & Koester (2013)

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What is national culture?

Culture is a group-level conceptIt can thus be applied to various groups, such as:An organisation (group of employees)A certain age groupA group of people interested in a particular sportA group of nationals from a specific country etc.The following material is focused on the national context

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National Culture and Stereotypes

A stereotype is a commonly held notion or image of a group, based on an oversimplificationIt assumes that members of this group share the same characteristics

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National Culture and Stereotypes

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Exercise

What do you consider to be typical characteristics of your ‚national‘ culture?What is (stereo)typical German behaviour?What is (stereo)typical Belgian behaviour?Do you know a citizen that is not behaving according to the characteristics of the culture would suggest?

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Exercise – self-study

Online testhttps://implicit.harvard.edu/implicit/Your results? Did you expect them to turn out that way? What do you think about the method of the study?

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National Culture and Stereotypes

Is stereotyping a good thing?It is necessary to reduce complexityIt helps to organise the worldIs stereotyping a bad thing?Underestimation of individualityClassifying national characteristics is “sophisticated” stereotyping and should be done cautiously!

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Concepts of National Culture

Kluckhohn & StrodbeckHallHofstedeGlobeTrompenaars

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Kluckhohn & Strodbeck

Basic Idea:People in all cultures face the same human problems There is a limited amount of solutions to these problemsPeople from a certain culture have a tendency to choose similar solutions to these problems (cultural patterns)

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Kluckhohn & Strodbeck

Human Problem (Perception

of…)DimensionsIndividualGoodGood and evilEvilWorld/NatureDominantHarmonySubjugationHuman RelationsIndividualLaterally extended groupsHierarchical groupsActivityDoingControllingBeingTimeFuturePresentPastSpacePrivateMixedPublic

Kluckhohn and Strodbeck’s Dimension with adaptions by Lane & DiStefano (2006) and Adler (2007)

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What is the nature of human beings

?Kluckhohn & Strodbeck

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What is the relationship of people to the external environment/nature/world?

Kluckhohn & Strodbeck

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What is a person’s relationship to other people?

Kluckhohn & Strodbeck

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What is the primary mode of activity?

Kluckhohn & Strodbeck

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What is a person’s temporal orientation?

Kluckhohn & Strodbeck

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Exercise -

Kluckhohn & StrodbeckPlease try to find example countries for all categories and argue why you consider those to be fitting.

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Hall

Human Problem (Perception of…)Dimensions

ContextHighLowTimeMonochronicPolychronicSpaceHigh territorialityLow territorialityHall, E. T., & Hall, M. R. (1966). Understanding cultural differences. Yarmouth, ME: Intercultural press.

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High-context cultures

Low-context cultures High- vs. low-context

(Hall)Environment Beliefs Values

NormsMessageMessage

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High context culture

Messages should be derived from the contextNonverbal code is highly importantHigh importance of group membership Low context cultureMessages are plainly and explicitly sentLower importance of group membership

High- vs. low-context (Hall)

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Low Context Culture

(Hall)Bella (knocks on her neighbour's door): Excuse me, it‘s past 11 o’clock already, and your loud music and dancing around are really disturbing my sleep. Please stop your jumping and banging around immediately! I have an important job interview tomorrow and I want to get a good night‘s sleep. Some of us need to pay rent!Hayden (resentfully): Well, this is the only time I can rehearse! I have an important audition coming up tomorrow. You‘re not the only one that is starving, you know. I also need to pay my rent. Stop being so petty! Bella (frustrated): I really think you‘re being very annoying and intrusive! There is an apartment noise ordinance, you know. And if you don‘t stop banging around immediately, I‘m going to file a complaint with the apartment manager and he could evict you…Hayden (resignedly): Ok, ok, I will stop. I hope you‘re happy now. Thanks for ruining my career…

(Ting-Toomey/Chung, 2005, p. 172)

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High Context

Culture (Hall)Mrs. Kurogi: Hello, Mrs.. Yamashita… Your son Toji is entering his high school karaoke contest, isn‘t he? I‘m really impressed by his enthusiasm, every day he practices so hard, for hours and hours, until late at night…

Mrs. Yamashita: Oh, I‘m sorry… Toji is just a beginner in karaoke singing. He is such a silly boy singing so late. We didn‘t realise you can hear the noise next door. I‘ll tell him to stop right away. I‘m sorry about all your trouble, it won‘t happen again.(Ting-Toomey/Chung, 2005, p. 172)

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Monochronic/Polychronic Cultures

(Hall)

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Monochronic/Polychronic Cultures

(Hall)Exercise: Sort the StatementsTime is moneyInterruptions are lifePlans are fixed, once agreed upon

This attitude is consistent with an individualist viewpoint The focus is on the person, establishing a relationship This attitude is consistent with a collectivist viewpoint Deadlines are an approximationFocus on the internal clockTo be late is rude The focus is on the task, getting the job done Plans are always changing People are never too busy

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Proxemics (Space)

(Hall)Low territorialityhttps://www.youtube.com/watch?v=HkWPDYFsynwHigh territorialityhttp://adsoftheworld.com/media/digital/klm_personal_space_experiment

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Hofstede

Human Problem (Perception of…)Dimensions

Social OrientationIndividualismCollectivismPower DistanceHighLowUncertainty AvoidanceHighLowMasculinity vs. FemininityMasculinityFemininityTime OrientationLong term orientationShort term orientationIndulgence vs. RestraintIndulgence Restraint

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Hofstede’s Cultural Taxonomy

https://www.hofstede-insights.com/

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Hofstede Research: Some Issues

Hofstede's methodology: Study based on IBM: 64 national subsidiaries, 116.000 workers (not just managers), three world regions

Reports averages; does not describe exact individual situationsIs valid for broader groups not individualsIBM values may overwhelm national values Yet, if IBM culture so overwhelming, differences across countries may be attributable to “national” culture...Privileged groupResearcher bias? Western stereotypes and culturally biased conclusions?Many recent studies validate Hofstede’s dimensions

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Cultural Cluster

(Hofstede)

Source: Hofstede, G. (1983). The cultural relativity of organizational practices and theories. Journal of international business studies, 14(2), 75-89.

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Source: Hofstede, G. (1983). The cultural relativity of organizational practices and theories. 

Journal of international business studies, 14(2), 75-89.Cultural Cluster (Hofstede)

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Source: Hofstede, G. (1983). The cultural relativity of organizational practices and theories. 

Journal of international business studies, 14(2), 75-89.Cultural Cluster (Hofstede)

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Discussion

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What would these correlations imply for the political and economic development of countries? Given that these are results of studies, but are in the end “sophisticated stereotyping”, would you agree on these correlations based on your own experience?

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You are chairing a very important business meeting, for which some attendees have made a long distance flight. Millions of dollars are involved. During the meeting, one of your local colleagues, your financial expert, receives a message: his 8-year-old son has been hit by a car and is hospitalised. How would you react?

You cancel the meeting and arrange for a follow up on the next day.You let your colleague leave the meeting.You leave the room for a moment with your colleague, and tell him, that even though you would prefer him to stay, he is free to leave.

You go on with your meeting asking your colleague to stay.Exercise: What would you do?

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You are a commuter. The car trip to work takes about 1 hour, the train ride 1,5 hours. Do your prefer to go by car or by train?

By car, because if I go by train people will think I can’t afford a carBy car, because is fasterBy car, because it is privateBy car, because people in my position do not travel by public transport

By train, because it is saferBy train, because it allows me to get some work done while travelingBy train, because I might meet interesting peopleBy train, because it is better for the environmentEither way is fine, whichever is cheaper in the long runExercise: What would you do?

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Trompenaars

Human Problem (Perception of…)Dimensions

RulesUniversalism ParticularismSocial IndividualismCollectivismInvolvementSpecificDiffuseEmotionsNeutralEmotionalStatusAchievementAscriptionTimeSequentialSynchronousEnvironmentInternalOuter

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Trompenaars Self-Evaluation Test

You are riding in the car with a good friend who is driving. He injures a pedestrian. You know that he was driving at least 50 km/h in a city where the speed limit is only 30 km/h. There are no witnesses. His lawyer says if you do swear under oath that he was only driving 30 km/h, you could save him from serious consequences.What kind of right does your friend have to expect you to protect him?1a: My friend has a clear right to expect me to swear that he was driving slower.1b: My friend has to a certain extent, the right to expect me to swear that he was driving slower.1c: He has no right to expect me as a friend to say that he was driving at the lower speed.How would you most likely react to the conflict between your duty as a witness and a sense of obligation towards your friend?

1d: Swear that he was driving 30 km/hr1e: Not swear that he was driving 30 km/hr

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Fons

Trompenaars’ Seven Cultural Dimensions 1. Universalism vs. ParticularismUniversalism: the belief that ideas and practices can be applied everywhere in the world without modification.Particularism: the belief that circumstances dictate how ideas and practices should be applied and some things cannot be done the same everywhere.

41 US GER

SWE UK ITA FRA JPN SPA SIN Universalistic ParticularisticSource: Hampden-Turner, C., & Trompenaars, F. (2011). Riding the waves of culture: Understanding diversity in global business. Hachette UK.

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Discuss which answer is most reasonable for you:It is clearly obvious that if individuals have as much freedom as possible and the most opportunities for personal development that there would be an increase in the quality of life.

2 . If individuals take the needs of others into consideration, the quality of life increases for everyone, even if this reduces individual freedom and individual development.Source: Hampden-Turner, C., & Trompenaars, F. (2011). Riding the waves of culture: Understanding diversity in global business. Hachette UK.Trompenaars Self-Evaluation Test (2)

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2.

Individualism vs. Collectivism: centres on whether individual rights and values are dominant or subordinate to those of the collective society. 43

US Can UK GER Latin America Japan

Individual CollectiveFons Trompenaars’ Seven Cultural Dimensions Source: Hampden-Turner, C., & Trompenaars, F. (2011). Riding the waves of culture: Understanding diversity in global business. Hachette UK.

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5. Achievement vs. Ascription: measures whether one’s status within

organisations is based on merit (“achieved”) or on class, gender, education, or age (“ascribed”).44

US UK SWE GER FRA ITA SPA JPN CHI

Achievement AscriptionFons Trompenaars’ Seven Cultural Dimensions Source: Hampden-Turner, C., & Trompenaars, F. (2011). Riding the waves of culture: Understanding diversity in global business. Hachette UK.

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Case Study 3: Business VisitYou expect a business visit from one of your clients with whom you want to finalise an important business deal. How would you approach this?

1. You take a week to get to know your business partner. You plan to invite him to your house and to take part in many of your activities. Your initial goal is to get to know him. That includes learning about his private interests and preferences. When you are sure that you can trust him, you will discuss the business contract.2. You reserve some time for contract negotiations. You will welcome your business partner in the office and negotiate the planned business contract. Later you will invite him to lunch. If the negotiation is successful and you personally like your business partner, you are willing to talk about some private issues and even invite him to your house.Which of the two behaviours described is more like you?Source: Hampden-Turner, C., & Trompenaars, F. (2011). Riding the waves of culture: Understanding diversity in global business. Hachette UK.Trompenaars Self-Evaluation Test (3)

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4. Specific vs. Diffuse: measures whether work relationships (e.g. the hierarchical relationship between a senior manager and a subordinate) are workplace ‘specific’ or extend (diffuse) into the social context outside the workplace.

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UK US FRA GER ITA JPN SWE SPA CHI

Specific DiffuseFons Trompenaars’ Seven Cultural Dimensions Source: Hampden-Turner, C., & Trompenaars, F. (2011). Riding the waves of culture: Understanding diversity in global business. Hachette UK.

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Fons

Trompenaars’ Seven Cultural Dimensions Source: Hampden-Turner, C., & Trompenaars, F. (2011). Riding the waves of culture: Understanding diversity in global business. Hachette UK.

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Trompenaars

Please watch the Trompenaars TED speech: https://www.youtube.com/watch?v=hmyfjKjcbm0 According to Trompenaars, how are current crises related to culture?Trompenaars talks about dilemmas. Can you define a dilemma in your own words?He uses the metaphor of a “Japanese garden“. What does he refer to?What role did Trompenaars play in the development of Chips at AMD Dresden?Collect the examples for German and US-American culture.

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GLOBE

Read:House, R., et al. (2002). Understanding cultures and implicit leadership theories across the globe: an introduction to project GLOBE. Journal of World Business 37, 1, pp. 3-10.Objective:Understand the methodology of GLOBE projectUnderstand dimensions elaborated in GLOBE projectBeing able to apply GLOBE’s dimensions Being able to differentiate the research from other studies

Present!

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The GLOBE Categories

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Comparison of Cultural Taxonomies

Researchers (sources)

Dependent VariableIndependent VariablesMethodSample/ContextSchwartz (1992)Present and future insociety

Eleven dimensions:Self-direction, Stimulation, Hedonism, Achievement, Power, Security, Conformity, Tradition, Spirituality, Benevolence, UniversalismQuantitative questionnairewith nine-pointLikert scalesApprox. 200 teachersand 200 students percountry, in 20 countries

House et al. (2004)–GLOBEBusiness leadershippresent and futureNine dimensions:Performance orientation

Future orientationAssertivenessHumane orientationGender egalitarianismPower distanceInstitutional collectivismIn-group collectivismUncertainty avoidance

Quantitative questionnairewith seven-point scalesand analysis of qualitativedata with content analysis17.000+ middle managersin 61 countries

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Comparison of Cultural Taxonomies

Researchers (sources)

Dependent VariableIndependent VariablesMethodSample/ContextHofstede (1980)National culturaldifference within one

organisationFour dimensions:Power distanceIndividualism/collectivismMasculinity/femininityUncertainty avoidanceQuantitative questionnaireApproximately 116.000IBM employees

Hofstede, Bond (2001)Fifth Dimension based on Confucian dynamismTime Orientation Quantitative questionnaire

(Chinese)Students in 23 countriesTrompenaars (1993)Management-relevantproblem solutionsSeven dimensions:

Time status, Achievement/ascription, Individualism/ collectivism, Universalism/ particularism, Emotional/neutral, Specific/diffuseMan–nature relationQuantitative questionnairewith scales15.000+ employees incompanies

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Intercultural Dimensions Comparison

Where do you see overlaps? Where idiosyncrasies?Which model do you consider superior?Hofstede‘s model is (arguably) the most popular. Why do you think is this the case?

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Summary - Learning Objectives

Understand and compare different cultural taxonomiesBe able to classify different cultures according to various dimensions to make sense of generalised (stereotypical) behaviour in host countries Be aware of advantages and disadvantages of different taxonomies

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Cross-Cultural Sensitivity

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Learning Objectives

Familiarise you with Bennett’s stages of cultural sensitivityProvide you with a realistic picture of where you currently stand on that scaleRaise your awareness for conflicts that have occurred (and will occur) based on your cultural sensitivity stage(Hopefully) reduce the amount of potential frustration within your team collaborations

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The Formation of Cultural Identity

Unexamined cultural identity

Cultural identity search

Cultural identity achievement

Lustig & Koester (2013)

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Bennett’s Intercultural Sensitivity Stages

Denial: Does not recognize cultural differencesDefence: Recognises some differences, but sees them as negativeMinimisation: Unaware of projection of own cultural values; sees own values as superiorAcceptance: Shifts perspectives to understand that the same “ordinary” behaviour can have different meanings in different culturesAdaptation: Can evaluate other’s behaviour from their frame of reference and can adapt behaviour to fit the norms of a different culture

Integration: Can shift frame of reference and also deal with resulting identity issuesEthno-centrismEthno-relativismBennett (1993).

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Bennett’s Intercultural Sensitivity Stages

Denial DefenceMinimisationAcceptanceAdaptationIntegration

Ethno-centrismEthno-relativismAt which stage are you currently?

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Instruction: Part 1 (Writing)

Please write down 3 stories related to your current collaboration with the teams from the other universities (alternatively: other cross-cultural encounters with people from those cultures)Bad memory: red postNeutral memory: yellow postPositive memory: green postStick your stories to the appropriate stage of the Bennett model

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Instruction: Part 2 (Reading)

Please read the other’s stories and point out which you consider to be noteworthy

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Instruction: Part 3 (Discussion)

Provide details on some of the noteworthy stories (of different stages and colours) in a class discussionDo you believe this is (stereo)typical for the other’s culture?Can someone from the host-culture ‘defend’ the observed behaviour?How can we prevent/enforce such a situation in our future team collaborations?

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Instruction: Part 4 (Debrief)

Would you adjust your evaluation of the cultural sensitivity stage you are in currently after this exercise?Are we born aware of other cultures?Where does knowledge of other cultures come from?How can we master our cross-cultural sensitivity?How can we use this information for our team collaborations?

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Intercultural

Experience

HeelotiaHokia

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Summary - Learning Objectives

Familiarise you with Bennett‘s stages of cultural sensitivityProvide you with a realistic picture of where you currently stand on that scaleRaise your awareness for conflicts that have occurred (and will occur) based on your cultural sensitivity stage(Hopefully) reduce the amount of potential frustration within your team collaborations

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Summary

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List

of ReferencesBennett, M. J. (1993). Towards ethnorelativism: A developmental model of intercultural sensitivity. Education for the intercultural experience, 2, 21-71.

Bluedorn, A.C.; Felker Kaufman, C.; Lane, P.M. (1992). How many things do you like to do at once? An introduction to monochronic and polychronic time, in: Academy of Management Executive, 6., 4, p. 17-26.Hall, E. T., & Hall, M. R. (1966). Understanding cultural differences. Yarmouth, ME: Intercultural press.Hampden-Turner, C., & Trompenaars, F. (2011). Riding the waves of culture: Understanding diversity in global business. Hachette UK.Hofstede, G. (1991). Cultures and organizations. Intercultural cooperation and its importance for survival. Software of the mind. London: Mc Iraw-HillHofstede, G. (1983). The cultural relativity of organizational practices and theories. Journal of international business studies, 14(2), 75-89.House, R., et al. (2002): Understanding cultures and implicit leadership theories across the globe: an introduction to project GLOBE, in: Journal of World Business 37, 1, pp. 3-10.Lustig, M. W., & Koester, J. (2013). Intercultural competence. Interpersona Communication across Cultures. Pearson Education.Williamson, O. E. (2000). The new institutional economics: taking stock, looking ahead. Journal of economic literature, 38(3), 595-613.67