Cross cultural differences

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

3. What are we covering today? • Understanding of culture and cultural differences • Asking the question: to what extent does behaviour vary across cultures?

4. Where can we expect to see cross-cultural differences? • Examples: • Australia & Finland: differences in safety skills • Differences in driver anger between UK & US • Finland, UK, Netherlands differ from Turkey, Iran and Greece: driving style and culture determine N accidents • Americans more risk-averse than Chinese in relation to buying risky financial options [in 1998, not necessarily now!]

5. Why is cross-culture so important? IJV failures Breakdown of expatriate assignments Breakdown of collaborative assignments Product failure, errors, poor quality Failure to understand the market, partner, consumers Perception differences, including risk

6. Conceptualising 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

8. Geert Hofstede 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

9. Geert Hofstede Originally four main factors Masculinity- femininity Ambition and desire to achieve versus social concern and interpersonal relationships Power distance Amount of power that can be wielded Uncertainty avoidance inflexibility Individualism- collectivism Help and commitment versus high personal achievement and later added [in 1990s] LT-ST orientation [Confucian dynamism]

11. Geert Hofstede Issues: Study was based in 1970s and many countries have changed a lot since then- has this affected their orientation? Eastern European changes Some developing countries are now developed Others have changed politically- e.g. South Africa

12. Geert Hofstede Issues: All countries will have changed anyway in nearly 30 years Changes in technology and global communication Migration of peoples Are cross-cultural differences still as pronounced?

13. Geert Hofstede Issues: This study put cross-cultural differences into the mainstream rather than “error variance” in other studies Encouraged other theorists, e.g. Trompenaars Recent developments with studies all over the world have increased considerably the number of countries that have been mapped

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

15. 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

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

17. An EU study by Harvey et al. • Questionnaire built from case study & interviews and translated into Chinese • Measured engineers’ attitudes to: • Long hours, deadlines, obligations, relationships, trust, etc (55 items) • Interpretation of words such as ‘soon’ • Responses if there is a deadline problem • Demographic variables • Responses to collaborators in other countries

18. Results of factor analysis of 55 attitude items F1 quality focus F2 tasks and time pressures F3 long hours and obligation F4 perseverance and respect for manager F6 trust and loyalty (note F5 difficult to interpret so not included)

19. Means and ANOVA statistics for factors for the three country groups

20. Perception of time questions

21. Figure 1: F1 quality focus mean scores for Chinese and European respondents by 2 age groups

22. F3 long hours and obligations mean scores for Chinese & European respondents by 2 age gps

23. Examples from the study • Negotiations of any kind • Europeans and West would shout out individually • Chinese got together to discuss and present group opinion • Respect for seniority • Clearly not a major issue for Europeans • But determines who speaks when in China and Japan

24. So what does it all mean? • Across cultures, differences in: • Speaking directly to a client • Interpreting ill-defined words such as ‘soon’ • Referring matters up to manager before taking decisions • Emphasis on quality • Ages of those involved in collaboration important- relates to seniority

25. Other issues to be considered in this study • Guanxi (connections) • Face • Time perception • Monochronic, polychronic, cyclical • Attitudes to deadlines • Attitudes to quality • Respect, harmony, filial piety • Loyalty and trust • High or low context cultures • How communication is interpreted

26. More conclusions Differences in: • Perseverance • Respect for manager • Perception of deadlines • Preferences for multi-tasking • Some cultures prefer face to face meetings initially

27. Final points from the study Importance of having empathy with, and understanding of, other people If they think you are trying to understand, it helps the relationship Arguing is not conducive to harmony Importance of relationships in avoiding mistakes Lack of cross-cultural understanding a major risk factor in project breakdown or negotiations Information from the survey was used in software for a ‘plug in’ to workflow management engines

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

29. 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

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

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

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

33. 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]

34. 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

35. Key text Hofstede G and Hofstede G (2005) Culture and Organizations: Software of the mind. 2nd edn London: McGraw Hill

36. Joan Harvey Newcastle University, United Kingdom and Visiting Professor, Czech University of Life Sciences [CZU] Joan.Harvey@ncl.ac.uk Thank you for your attention