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Cross cultural issues

Cross cultural issues. Dr Joan Harvey Joan.Harvey@ncl.ac.uk. What are we covering today?. Understanding of culture and cultural differences Looking at two studies using a risk perspective Driving Management differences UK vs Zim

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Cross cultural issues

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  1. Cross cultural issues Dr Joan Harvey Joan.Harvey@ncl.ac.uk

  2. What are we covering today? • Understanding of culture and cultural differences • Looking at two studies using a risk perspective • Driving • Management differences UK vs Zim • Asking the question: to what extent do attitudes, values amd behaviour vary across cultures?

  3. Conceptualising risk issues and culture • Culture as shared values • “Collective programming of the mind that distinguishes the members of one group or category of people from others” [Hofstede and Hofstede, 1995] • Evident in rules, procedures, ‘how we do things around here’ • Is learned • Risk taking, risk awareness • Risk avoidance, loss avoidance or uncertainty avoidance?

  4. Why is cross-culture important? Costly IJV failures Breakdown of expatriate assignments Breakdown of collaborative assignments Product failure, errors, poor quality Failure to understand markets, business partners, consumers Misunderstandings can cause aggression, etc. Perception differences, including risk

  5. How has culture been investigated and studied? • Social anthropology • International Business • Sociolinguistics and communications • Early work in Psychology was limited to things such as: • Differences in perception of values of coins amongst children from different ethnic bases • Linguistics: included class as well as cross-cultural differences • We will look at several writers today, including Hofstede, Trompenaars and Hall

  6. Geert Hofstede 1 Dutch social anthropologist Obtained attitude data from IBM worldwide in late 1970s Factor analysed and looked for factors which differentiated nationalities Data on 50 countries, but only sufficient N for 40 in first book Generally accepted as the most important now in cross-culture But still limitations in his theory

  7. Geert Hofstede: 5 factors Masculinity femininity Essentially the differentiation of sex-roles vs. both sex-roles considered the same Ambition and desire to achieve vs. social concern and interpersonal relationships Power distance The tolerance of small or large power differentials Amount of power that can be wielded Uncertainty avoidance Tolerance of ambiguity, flexibility vs. preference for structure Individualism- collectivism Help and commitment to group versus high personal achievement LT-ST orientation [added later in 1990s] “Confucian dynamism” principles on both sides, primarily time-based

  8. Geert Hofstede • All countries will have changed in last 30 years • Eastern Europe • Developing countries that are now developed • Political changes • Changes in technology and global communication • Migration of peoples • Are cross-cultural differences still as pronounced? • In-group vs out-group explanations

  9. Geert Hofstede • Issues • This study put cross-cultural differences into the mainstream rather than as “error variance” in other studies • Encouraged other theorists • Recent research has allowed many more countries to be mapped

  10. Comments on these data • Short-terms orientation in e.g. UK clearly shown in how the financial markets behave- out to get the quick ‘buck’ • Chinese and Japanese businesses into investment for the longer term, built on relationships and ‘family’ structures

  11. Examples of other theories: [a] Trompenaars 7 factors: Universalism versus particularism Work relationships mixed with personal ones Individualism versus collectivism Affective versus neutral culture Specific versus diffuse relationships Distinct relationships versus diffuse ones Achieving versus ascribing status Earned through achievement or recognised e.g. seniority/age Perception of time Sequential [monochronic] or parallel [polychronic] Relating to nature

  12. Example [b] GLOBAL project Assertiveness Future orientation Gender egalitarianism Humane orientation Institutional collectivism In-group collectivism Performance orientation Power distance Uncertainty avoidance

  13. Two more factors that are interrelated. • Time perception • Polychronic or cyclical [e.g. southern Europe, China, Japan] • Monochronic [e.g. northern Europe, US] • Context [Edward Hall] • High means that perception of what is said is taken in context, including NVCs • Low means words are interpreted literally

  14. Other dimensions from indigenous social psychology China Confucian values Filial piety Industriousness Giving and protecting face Thrift Guanxi Social networking crucial to business relationships Ren ching Respectful exchange of gifts, favours and obligations

  15. Other dimensions Japan Amae and respect Reliance and dependence upon indulgent love of an older person Kanban Concept of whole transcending sum of parts Ringi Upward communications and decision making Sacred treasures- life time employment, seniority, enterprise unions/families Harmony and cooperation [‘wa’] Gakureki Shakai Social system attaching value to education

  16. Example: Theory Z Application of Japanese management principles to American & British businesses Long term focus Zero tolerance Personal responsibility for self-development Positive attitudes to seniority Teamwork rather than individual achievement Commitment and trust Quality and pride Multi-skilling

  17. Other dimensions Africa Cognitive tolerance Not on seat Africa time Indaba [Malawi] Ubuntu [Malawi] Tribal loyalty Power and respect based on experience Managers ‘right to manage’

  18. Other dimensions Several cultures resent ‘intrusiveness’ of western values, western research methods, e.g. Philippines Sub-Saharan Africa India China

  19. Other dimensions Latin American countries: emphasis on Respect Family Hierarchy Honour Affiliative obedience Cultural rigidity Machismo Sympatia

  20. Other dimensions India Detachment as a coping mechanism, therefore working hard is unrelated to success or failure Ingratiation techniques to advance personal goals within hierarchical collective context [similar to parts of western Africa]

  21. Exercise • Now to discuss and answer the following question: • What are the factors that might determine differences in attitudes to business and risk between • China • UK • Italy • Present your reasons for three of the factors

  22. Effects of cultural differences • How society functions • Basic values and beliefs- lifestyles • Relationships in organizations • Gambling and investment behaviours • Consumer behaviour • Driver behaviour

  23. Study into driver behaviour: theories for risk-taking in drivers: • Risk homeostasis • Risk avoidance • Sensation seeking • Flow, arousal • Motivation, intrigue and curiosity • Fatigue • Vigilance

  24. But do these apply across cultures? Risk homeostasis and risk avoidance- cultural differences known Sensation seeking- individualism-related so will be less strong in Pacific rim countries Flow- probably a western concept Motivation, intrigue and curiosity- known to be conceptually different in many cultures Arousal and fatigue Vigilance- may vary according to cultural norms

  25. Did we expect cross-cultural differences? …Yes • Evidence from Australia and Finland shows differences in safety skills • Differences in driver anger between UK and US • Finland, UK Netherlands differ from Turkey, Iran and Greece: combination of driving style and culture in determining N accidents • Americans more risk-averse than Chinese in relation to buying risky financial options [in 1998, not necessarily now!]

  26. Significant country differences in: speeding penalties, parking offences, mean annual mileage and mean yrs driving, F1 responses to under-stimulation, F3 lapse and error proneness F4 anxiety Corrrelations of personality factors with F1 Significant sex differences for F2 enthusiasm and flow, F3 lapses and F4 anxiety Significant age differences for At fault crashes Annual mileage Other findings

  27. F3: Lapse and error proneness

  28. Hofstede factors? Uncertainty avoidance or flexibility X Masculinity femininity X Individualism collectivism X Power distance X Long term short term orientation X Other relevant factors High or low context cultures Poss Time perception Poss Risk perception, risk awareness Prob Anger management Prob Motivational differences Prob Possible causal cross-cultural differences?

  29. A reminder for US vs UK/ Europe…

  30. This was a small study, possibly not representative, but… the evidence here is consistent: drivers in US and UK/Europe show differences in propensity to boredom, personality correlates of driving and a series of driver metrics. So is it the drivers’ culture or the environment that is the cause of these differences, or both? Implications

  31. Situational/environmental causes? Driving in US rural areas ismuch lower stimulus driving than UK or Europe Overtaking manoeuvres [more dangerous, more lapses] less likely in US Road planners need to think very hard about putting interest back into the roads- more bends in roads, more [not less] scenery, more things to do. Driver causes US and UK relatively similar in Hofstede factors, although other Europeans differ more. So could it be risk perceptions or driving attitudes that differentiate US and Uk/Europe? Cross-cultural differences?

  32. Quiz questions • 1 In sub-Saharan Africa, it is important not to be late for meetings Yes No • 2 In sub-Saharan African countries, a manager should use command rather than persuasion Yes No • 3 It is important to get to know your host before doing business in the Middle East Yes No

  33. More…. • 4 When given a business card by a Japanese business person, what should you do with it and why? • 5 Would you start a presentation to Japanese business people with an apology? Yes no • 6 If offered coffee by an Arab, if you didn't like coffee, should you refuse it? Yes no

  34. For doing business……. 7 Trust is important in 8 Seniority or age is important Japan Malaysia USA China • Japan • Malaysia • USA • China

  35. Study example: UK vs Zimbabwean Managers • Attitude and motivational differences measured • Status, prestige, loyalty • Social approval • Motive strength and work values • 117 African managers, mostly from Zim but a few from Botswana 32% women • 82 British managers 58% women • Similar ages

  36. Study results • Cultural differences found in • Importance of status, position, pride and prestige • Social approval • Loyalty to work colleagues… [tribal] • No differences found for • Courtesy • Accept criticism • Admit mistakes • Loyalty to friends and family

  37. A few more to compare…

  38. What can other research add? • Specific aggressive behaviours in driving are associated with cultural norms [Shinar, 1998] • Chinese from PRC more risk-seeking in investments than USA [Weber and Hsee, 1998] • US more risk-averse than Spanish [Zinkhan & Karande 1990] • Differences in risk preference between PRC, USA, Germany and Poland [Weber and Hsee 1998] • Many nationality differences found in sensation-seeking and risk taking [Pizam et al, 2004]

  39. More research… • Risk judgements taken by HK and Taiwan more sensitive to magnitude of potential losses and less mitigated by prob [positive outcomes] than Netherlands and US [Bontempo et al, 1997] • Culturally diverse groups had more problems with interaction behaviours that interfered with problem-solving [Watson and Kumar 1992] • Risk perception ratings of drivers: Spanish highest, US lowest, younger perceived less risk [cf West German and Brazil] [Sivak et al 1989]

  40. And more…. • Australia- issues in risk-taking include self-improvement, emotional engagement and control [Lupton & Tulloch, 2002] • Turkish drivers: smaller safety margins that do not allow corrective manoevres [Ozkan et al, 2006] • Using simulated intersection crossing, West Germans made fewer attempts, greater p(success), greater safety margins than US or Spanish [Sivak et al, 1989]

  41. Power distance Uncertainty avoidance Individualism-collectivism Masculinity-femininity LT/ST orientation Risk perception Risk aversion Affect, including anger Motivation Need for harmony Respect and piety Trust Responses to errors Violations Context & communications Time perception Social approval Groupthink, shift to risk In-group bias and tribalism Leadership/ management And all these can affect how we work and behave in many situations! Summary of cultural difference issues across the studies

  42. But we should not forget.. • That the scores for countries have considerable within-groups variation. • That some countries [e.g. India, US] have large ethnic sub-groups which will be different to the country averages. • So I can propose that countries may divide on each dimension into 3 [perhaps Individualism-collectivism into 5] broad groupings.

  43. Key texts Hofstede G and Hofstede G (2005) Culture and Organizations: Software of the mind. 2nd edLondon: McGraw Hill Lewis RD (2007) When Cultures Collide. 3rd ed London: Nicholas Brearley

  44. Joan Harvey Newcastle University, United Kingdom and Visiting Professor, Czech University of Life Sciences [CZU] Joan.Harvey@ncl.ac.uk With thanks to Neil Thorpe, Newcastle University, United Kingdom Corinne Mulley, Professor of Transport Economics, University of Sydney, Australia Ludek Kolman, CZU Thank you for your attention

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