Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Parissa Haghirian
www.businessexpertpress.com
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 PART 1 Chapter 1 Chapter 2 Chapter 3 PART 2 THREE MAIN CROSS-CULTURAL MANAGEMENT CHALLENGES . . . . . . . . . . . . . . . 5 Does Culture Really Matter? . . . . . . . . . . . . . . . . . . . . . 7 Dealing With Culture Shock and Emotional Stress . . . 19 When in Rome, Shall I Do as the Romans Do? . . . . . . 29 THEORETICAL FOUNDATIONS OF INTERNATIONAL AND CROSS-CULTURAL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Objectives of Cross-Cultural Management. . . . . . . . . . 41 How Does Culture Inuence Management?. . . . . . . . . 53 IMPROVING YOUR CROSS-CULTURAL MANAGEMENT SKILLS . . . . . . . . . . . . . . . . . . . . 73 Cross-Cultural Competence: How Can I Learn and Improve It? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 GUIDELINES FOR THE SUCCESSFUL INTERNATIONAL MANAGER . . . . . . . . . . . . . . . 91 Communicating Effectively Across Cultures . . . . . . . . 93 International Negotiations and Solving Cross-Cultural Conicts . . . . . . . . . . . . . . . . . . . . . . 107 Successful Leadership Across Cultures . . . . . . . . . . . . 123
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CONTENTS
Chapter 11 Challenges Beyond Culture When Living and Working Overseas . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Introduction
Two decades ago Western companies could assume that consumers and clients all over the world loved to buy their (Western) products and wanted to be like them. Western ideas, movies, products, and culture were expected to have the most important inuence in developing economies all over the world. Business researchers expected customers to become more alike, all wanting similar products, leading to greater profits for companies providing them. Well, things have turned out differently. Western companies are confronted with millions of clients, business partners, and customers who like their products, but who do not want to be like them. Suddenly they face millions of self-condent consumers who demand products adapted to their needs and interests. Former developing countries have turned into economic power players who not only have massive market power, but also have millions of well-educated and demanding customers. And culture does its trick. Most of these power playersrst of all, China have taken the way business is done in the West only as an example, not as a system to adopt. Their own cultures and traditions are too strong, dominating many activities, and especially management activities. It is nave to believe that they should or will be abandoned within the next generation or two. Businesses and managers have felt these changes too. In an interview series with long-term expatriate managers from American and European managers that I conducted 10 years ago, most of my interview partners liked the countries they had lived and worked in and remembered their times in international management very fondly. They could only speak their mother tongue and they all had a colonial attitude, perceiving themselves as paternal and knowledgeable educators for their foreign employees who showed them how business is really done. This attitude is completely outdated today. Cross-cultural competence and the ability to adapt to local business practices are prerequisites for international business. An increasing number of Western managers
INTRODUCTION
are busy pleasing consumers in former developing countries and have learned to react quickly to changes in taste and interest. Goals must be achieved, money is at stake, and risks are high, even if management practices in international environments are not familiar. Linguistic misunderstanding, differing opinions, and problem solutions have to be dealt with and can often lead to confusion and stress. Many international managers therefore speak foreign languages, because if they do not, new clients can hardly be found and business will suffer. Business processes, too, had to be adapted to local preferences. In cases where this does not happen, business is lost and consumers are often gone forever. Still, many businesses are not t for this challenge. Companies set up business processes in the past and did not anticipate that culture and adaption to other cultures would play such an important role. International managers are in a dilemma. They know that they should adapt their thinking and processes to other cultures, but get little support in doing this. But how can this be done efciently? The number of questions to be answered is seemingly endless: How can international managers nd out about the cultural preferences of my international clients, employees, and suppliers? Do they need to learn a foreign language or do all foreign business partners speak English? When is it time to adapt to local standards and when can they stick to their own countrys rules and regulations? How can cross-cultural conict and misunderstandings be avoided? How can culture shocks be avoided? How can the corporation succeed in a globalized world? In this book I want to provide answers for these questions. Building on my experiences in bridging cultures for the last few decades this book discusses the most important challenges when doing international business. It targets practitioners in the eld of cross-cultural business and communication. The book not only discusses the general aspects of how cultures can differ, it also shows which effects these differences can have on business processes and business success.
INTRODUCTION
Successful Cross-Cultural Management: A Guide for Managers will show you what happens when you are exposed to a foreign culture for the rst time and how you can react. It will help you nd out about differences between your cultural programming and others and will show you how to deal with culture shock. This book also provides an overview of which aspects of foreign cultures can really differ from your home culture. The main part of the book discusses challenges that international managers will face in their overseas workplace. Here I will provide suggestions on how to deal with cross-cultural negotiations and team building and what international business ethics really means in a modern multinational corporation. Finally I will present some guidelines on how to improve your cross-cultural management skills and how to prepare a multinational organization for a cross-cultural business future. My aim is to provide practical advice on how to address and deal with cross-cultural challenges in business as well as in other aspects of life. This book is therefore not only written for international managers and students of international managers, but also for people who are interested in cross-cultural friendships and relationships. Parissa Haghirian Sophia University Summer 2011
PART 1
CHAPTER 1
and in organizations. The reason: too big the nancial losses based on cross-cultural mistakes, too high the number of misunderstandings or conicts. Although the idea of cross-cultural management is more accepted, it is very difcult to develop this fundamental theory or to dene rules or measures to prevent errors. The reasons are found mainly in the complexity and exoticism of the subject. The more markets in which a company operates, the more multicultural staff, and their attitudes must be observed and learned. This makes it even more difcult for companies to prepare employees for possible challenges in international business. This chapter introduces basic ideas about culture and how inuential it is on management processes. The focus lies on national culture, and I will explain major aspects to consider when doing business overseas. Upon completion you will understand why business is not the same in every country; why culture plays an increasingly important role in international management; which aspects of culture are most important when managing overseas; why we experience cross-cultural conicts; and why it is so difcult to change your cultural program.
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So why did Sam not get the deal? From his point of view he did everything right. He was on time, talked openly and in a friendly way about the company and its products, promoted and praised the product, and even gave a discount in the end. He is a successful salesperson, and his style has proven very effective over the past years. Mr. Yamamoto, however, did not perceive the meeting with Sam the same way. He and his colleagues did not know the U.S. company very well yet. He was expecting to build a stronger relationship with Sam, learn more about the company and its products, and after this, go back to his colleagues to report. They would then make a decision about whether to buy the product or not and let Sam know in a few weeks. Sams direct selling was perceived as aggressive and impolite and left a bad impression with Mr. Yamamoto. Stories like this are common in todays international business. Deals fail and the reasons are unclear. Both negotiators, Sam and Mr. Yamamoto have a very particular idea about how business is done. In the past and during most of their careers both have been very successful with this approach, advanced far in their careers, and cannot imagine that business can be completely different somewhere else. So they both continue in their traditional ways and when meeting, obvious differences cannot be dealt with.
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in emotional stress and the feeling of helplessness. And, even worse, both communicators do not get information on how to behave differently or to interpret the situation. Negative stereotypes or prejudices are strengthened and can even lead to a complete collapse of the business relationship between the two companies. In international management culture is certainly not the only important factor.1 Next to cultural differences, local industry structure and business practices, laws and the economic situation, and customer taste and consumer behavior also play important roles when developing business practices for overseas markets or when attempting to sell a product in a foreign country. Thus, cross-cultural management is a topic often neglected in business schools and management programs or considered a soft skill, less important than hard skills like operations management or other classic management disciplines. Many managers still believe that business practices and industry rules are the same in most places and cannot really differ so much even when doing it on the other side of the globe. So, culture and cultural differences do matter in international business and if ignored can pose serious barriers to international business success. But what is culture really about and how does it inuence our management practices?
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Symbols Attitudes
Behavior
Language
Figure 1.1. Layers of culture.
Values
Values . . . reect general beliefs that either dene what is right and wrong or specify general preferences.3 Values clearly dene priorities set in a society; they tell us which behavior is accepted in a society or country and which is not. They are often expressed in forms of goals or ideals and give us guidelines for orientation. On top of a societal value system each person may have a personal value system based on upbringing or religious orientation. Values are so deeply embedded in our psyche that we do not question them at all. A classic example of a Western value is self-fulllment or the wish, intention, or even the feeling that it is an individuals right to live exactly the way he or she thinks is most fullling. Many Asian cultures, however, do not look at the world in the same way; living in cooperation and harmony with other members of society is most important, even if ones own wishes cannot always be fullled.
Attitudes
The second layer is attitude, which can be described as that which expresses values and disposes a person to act or react in a certain way toward something. Attitudes are present in the relationship between a
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person and some kind of object.4 Attitudes express how certain aspects are managed; for example, the cooperation between people in a rm or the interaction between individuals. They can be best expressed with the phrases, It is better to or I should or Id rather. In our example we can dene the attitudes in U.S. society as follows. It is better to fulll my dreams even if other members of society do not agree, meaning that it is socially acceptable to take care of ones well being rst, not thinking of others right away (of course this does not naturally mean that other individuals have to be treated badly). In Asian societies, however, this is not an acceptable attitude. Here taking care of ones own wishes without considering others is considered selsh and ignorant and will lead to strong negative reaction in these societies, such as dismissal from the group or organization. The attitude most acceptable here is, It is better to nd solutions for individual problems that are in accordance with other members of society or Id rather listen to my peers, parents, and group members to support society by appropriate actions.
Behavior
Both values and attitudes build the foundations of our behavior. Behavior can be dened as any form of human action.5 This behavior also includes communication and any form of human interaction. Behavior is the visible part of cultureit is the tip of the iceberg. In our case study differences in values and attitudes lead to very different actions in the end. Whereas Sam likes to promote his ideas and consequently his product, his Japanese counterpart expects to be treated and taken care of as a group member. Sam speaks out openly about what he expects, would like to happen, and can do, but Mr. Yamamoto is vague and refers to group members.
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Table 1.1. Behavior, Attitudes, and Values as Expressions of Cultural Programs Layer of culture
Behavior and communication (visible) Attitude (invisible)
Values (invisible)
Artifacts Artifacts or things play an important role in every culture. Things surround us and often have similar meanings in many cultures. Status symbols also fall in this category. They show and communicate a certain status of their owners and allow them to communicate aspects of their lives nonverbally. Cars, for example, are used to transport individuals, but can also express status and nancial success. Typical Western status symbols in corporations are corner ofces, although often not understood as status symbols in other countries. In Asia, where employeeseven managerswork in cubicles in a big ofce, working separately in a different room is sometimes perceived as antisocial and leads to fear of missing out on important company communication and rumors. Symbols Symbols, however, can also be words, gestures, signs, or colors that hold a special meaning for members of a certain culture. They are often visible when visiting a foreign culture, such as signs on religious sites, colors of textiles in a country, or certain gestures or expressions that are unique in a certain place, but cannot be understood without explanations. The color white, for example, symbolizes purity in many Western cultures, but does not have this meaning in other places. Symbols can be very easily
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misunderstood and have often led to misunderstandings in cross-cultural management practices. Especially in international marketing, all symbols, colors, or objects used in advertising should be carefully checked by local employees and market researchers. Rituals Rituals are conventionalized patterns of behavior in certain situations, for example, certain routines when greeting or introducing a person. Rituals play a very important role in supporting cooperation between members of a culture by having very clear instruction on how they should be performed. They provide guidance to manage and solve difcult situations and major questions in each community. A good example is the marriage ritual, which differs greatly among cultures, but in all of them shows how important the bond between two people and families is for society. In a corporate context, rituals support cooperation among company members and the coordination of management practices and tasks. Company dinners, for example, improve relationships between clients and the rm, increase trust, and strengthen the relationships between all participants. Many corporations have special events to greet and integrate new employees and show them that they are welcome to the rm and help them become part of the community. Here rituals are used to support corporate goals in communicating appreciation and support.
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impatient reaction on the U.S. side. In any event both parties misunderstand each other. The different ways of dealing with disagreement are obvious; what is not understood between the negotiation partners are the attitudes and values behind them. These differences, however, help us understand the others behavior, maybe show more patience, and also develop new practices, communication styles, and processes that may be more useful in reaching negotiation goals. Little misunderstandings as described earlier can lead to major conicts if they are not addressed and taken care of by all participants. In todays international management, these misunderstandings increase and often have very negative effects on the workplace, its practices, and in the long run, also on prots and market success of a rm.
Level
Invisible
It is better to fulll ones idea even if other members of society do not agree
It is better to nd solutions for individual problems that are in accordance with other members of society
Invisible
Self-fulllment
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Summary
When we speak of culture in a business context, we talk mostly about national culture. Culture is a concept that is difcult to describe and analyze. To simplify things, we can divide culture into visible and invisible parts. Visible parts of culture are rst of all our actions, communication symbols, artifacts, and rituals. Beyond those visible aspects culture consists mainly of invisible aspects such as values and attitudes. Values are dened by very general rules that dene acceptable and nonacceptable behavior (good and bad, right or wrong) in each culture. An example of a value is individualism, which can be found in most Western industrialized countries, or the wish to seek self-fulllment. In Asian cultures, however, the wish
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to create a harmonious environment with ones peers is a most important value that inuences all other cultural aspects. Attitudes are based on those values and refer to an expression of a value as it relates to a tendency of behavior. They are expressed mostly by sentences beginning with, Its better to . . . or I should . . . An example for an attitude based on individualistic values is the intention to take care of ones interest even if other members of a society do not support this. The most important and visible aspect of a culture is behavior. Behavior is based on values and attitudes, which strongly dene our behavior. Action based on individualist values and attitudes are contradictions in a discussion of performing very individualistic tasks. Behavior is the most visible part of culture; values and attitudes cannot always be seen or understood as easily. Cross-cultural misunderstandings are based on the fact that we only see each others behavior, but not the attitudes and values that explain it. If a Western person with individualistic values and attitudes openly contradicts other team members or even his or her boss, this may be considered very rude and inappropriate by an Asian person who often has more group-oriented values and attitudes and would rather not speak up to avoid possible conict. In most cases only behaviors or messages are exchanged, whereas values and attitudes are hardly communicated. International managers can inadvertently make mistakes when communicating with foreign business partners or employees.