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CULTURE IN A GLOBAL CONTEXT Dr. Rayna Dimitrova 19 October 2009

CULTURE IN A GLOBAL CONTEXT Dr. Rayna Dimitrova 19 October 2009. Culture. Understanding the concept Multi-faceted nature Over 164 definitions, lack of overriding one Understanding culture has become an area of academic study in its own right. Exploring culture.

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CULTURE IN A GLOBAL CONTEXT Dr. Rayna Dimitrova 19 October 2009

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  1. CULTURE IN A GLOBAL CONTEXTDr.Rayna Dimitrova 19 October 2009

  2. Culture • Understanding the concept • Multi-faceted nature • Over 164 definitions, lack of overriding one • Understanding culture has become an area of academic study in its own right

  3. Exploring culture • Difficult since not all members of the society share the same values • Risk of stereotyping • There is propensity for people to have multiple of overlapping identities, which are constantly changing

  4. Macro level perspective • Political/economic system • Religion/philosophical beliefs • Economic prosperity • Language (Belgium vs. Switzerland) • Educational system • Values/shared meanings

  5. Cultural aspects • Attitudes, beliefs, values, rituals, taken for granted assumptions • Behaviour • Shared meaning and understanding

  6. Hofstede’s classic quote • “collective programming of mind that distinguishes the members of one group or category of people from another.”

  7. Hofstede’s work • Genesis in 1960, two major surveys on cross-cultural differences in IBM in 64 countries • Further developed in 1980 • Continues to publish in 21 century • With five dimensions seeks to conceptualize differences between cultures

  8. Hofstede model of Cultural Dimensions • Power distance • Individualism • Masculinity • Uncertainty avoidance • Long term orientation

  9. Power distance (PDI) • The degree of inequality that members of a culture expect and accept • Importance of status, hierarchy • Suggests level of inequality is endorsed by followers as much as by leaders • Arab countries – high Austria, Israel – very low

  10. Individualism/collectivism (IDV) • The extent to which people in a culture act as individuals and stress their own interests • Latin countries rank among most collectivistic • Western, such as US, UK, Australia most individualistic • Individualism is correlated w/ national wealth

  11. Masculinity/femininity (MAS) • Refers to values placed on traditional male or female values • Masculine cultures: competitiveness, assertiveness, ambition, accumulation of wealth • Feminine cultures: relationship and quality of life • Japan, Slovakia vs. Sweden, Norway

  12. Uncertainty avoidance (UAI) • The extent to which members welcome uncertainty and change as opposed to desiring structured situations • High: One could expect preponderance of unambiguous rules, policies and regulations in work organizations • Japan vs. Singapore • Germany scores 65

  13. Long term orientation (LTO) * • Describes society’s time horizon • Importance attached to the future vs. past and present • LT values: thrift, perseverance • ST: respect for tradition, fulfilling social obligations • China vs. US, African countries

  14. Synthetic cultures….. • Are the ten “pure” cultural types derived from the extremes of the five dimensions

  15. Country ratings

  16. Organizational vs. national culture • National cultures distinguish similar people, institutions/organizations in different countries. • Organizational cultures, distinguish different organizations within the same country. • Managing international business means handling both national and organization culture differences at the same time. • Corporate never trumps national !

  17. Surviving in multicultural world • One does not need to think, feel, and act in the same way in order to agree on practical issues and cooperate • Agree to be different • Diversity should be seen less as part of HR and more as something owned by the business

  18. Managing intercultural communication • Guidance on work processes and procedures • Recognize different types of contributions • Observe the communication of international staff • Watch out for relational conflicts (hierarchy)

  19. Managing intercultural communication (continued) • Ensure clarity of language • Choose the most appropriate communication channels • Recognize and deal with problems promptly • Offer cross-cultural integrating sessions

  20. Case study: IATA • International Air Transport Association • Represents 230 airlines, employs 1,600 staff of 140 nationalities in 74 countries • HQs in Geneva and Montreal • Fast growing markets India, China • “We cannot sell in Mumbai with a Montreal mindset”

  21. IATA’s cross-cultural program • Identify the cultures that need to collaborate • Identify leaders in each culture • Identify pairs of co-leaders • Identify real projects • Identify realistic timeframe • Share practices • Adapt for the next challenge

  22. Case study: call center in India • 2600 employees in India provide call center and home office support for Norwich Union, Aviva’s UK insurance business

  23. Seven failings of useless leaders 1. Kill enthusiasm 2. Kill emiotion 3. Kill explanation 4. Kill engagement 5. Kill reward 6. Kill culture 7. Kill trust

  24. Thank you! • Let’s see the movie now!

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