Cross-cultural management in Europe

1. Cross-cultural management in Europe An International and comparative perspective Joop Vinke

2. Social setting History Culture Institutions Business systems Organisation structure Corporate governance Decision making ethos Comparative Methods Joop Vinke

3. Similarities Differences Convergence versus Divergence DIVERSITY • Develop models • Learn “best way” • Understand ‘transferability” • Secure national competitive advantage Joop Vinke

4. What can be compared? • Industrial relations systems (employers, unions, legislation) • Employment system (labour markets, industrial structure, welfare regime) • Vocational education and training • Social structure (class, gender, race) • Culture Joop Vinke

5. Theoretical approaches Joop Vinke

6. CULTURE • Symbols: Gestures, words, objects etc. of which only the group members know the meaning • Heroes: Public figures, dead or alive, real or fictive, who serve as role models • Rituals: Acts that, for outsiders, may seem useless but are socially essential Joop Vinke

7. Norms and Values • Norm: • What is right? / What is wrong? • Value: • What is good/ bad? • What is beautiful/ ugly? • What is natural/ artificial? • What is normal, not normal? • Etc. Joop Vinke

8. Explicit culture Symbols Heroes Rituals Norms and Values Joop Vinke

9. Is culture inborn or learned? Definitions: • “The right way of doing things”” • “The collective mental programming of people in an environment • “The collective preference of one decision above another one”” • “Integrated system of patterns of behaviour which are acquired by all members of a society Joop Vinke

10. Culture and peace of mind Culture helps people to: make choices and reduce emotional stress When they are confronted with dilemmas: • Our relations with other people • Our relationship with time • Our relationship with our natural • environment Joop Vinke

11. Relationships with big problems • How equal are the members of the society? • Which are most important; obligations to a friend or to the society? • Which value prevail; masculine or feminine? • Is it allowed to show emotions? • What is private matter?, What is public matter? • Does status depend on who one is or what one has achieved? • What is the importance of the past, the present and/or the future? • Is ones destiny controllable or not? • Etc. Joop Vinke

12. Research and models • Perlmutter (1969) “MNC practice” • Hofstede (1980)“Cultures consequences” • Kluckhohn and Stodtbeck • Traxtler (1995) • Marginson and Sisson (1996) • Hoeklin, Hall • Nagelkerke (1995) • Trompenaars Joop Vinke

13. Is it possible to define“national culture”? Joop Vinke

14. Hofstede (1980) PDI-power distance the extent to which a culture accepts that power in organizations is distributed unequally MAS-Masculinity the value attributed to achievement, assertiveness, and material success as opposed to the stereotypical feminine values of relationships, modesty, caring and the quality of life. IDV-Individualism the extent to which people are supposed to take care of themselves and be emotionally independent UAI- Uncertainty avoidance the degree to which members of a society are uncomfortable with risk and uncertainty CDI -Confucian dynamism The extend to which a society exhibits a pragmatic future-oriented perspective rather then a conventional historic or short time point of view Using models to define“national culture” Joop Vinke

15. Trompenaar The seven dimensions of culture • universalism vs. particularism • individualism vs. collectivism • neutral vs. affective relationships • specific vs. diffuse relationships • achievement vs. ascription • Sequential vs synchronic culture • Internal vs External control Joop Vinke

16. Universalist: “What is good and right can be defined and always applies!“ Particularist: Great attention to the obligations of relationships and unique circumstances Universalism vs. particularism What is more important - rules or relationships? Joop Vinke

17. Individualism vs. collectivism Do we function in a group or as an individual? • “It is more important to focus on individuals so that they can contribute to the collective as and if they wish” • “It is more important to consider the collective first since that is shared by many individuals” Joop Vinke

18. “The nature of our interactions should be objective and detached” North American and North European business relationships “The expressing the emotions is part of the relationship and therefore acceptable” South American and European business relationships Neutral vs. affective (emotional) relationships Joop Vinke

19. Specific vs. diffuse relationships When the whole person is involved in a business relationship there is a real and personal contact, instead of the specific relationship prescribed by contract. Joop Vinke

20. Ascription: The status is attributed to you, by birth, childhood, gender or age, but also by your connections and your educational record. Achievement vs. ascription • Do we have to prove ourselves to receive status or is it given to us? • Achievement: One will be judged on what you have Recently accomplishes and on your record Joop Vinke

21. Sequential vs. synchronic culture Is time a line ? Or is it a circle? Joop Vinke

22. Past, present and future How would You draw it?? Joop Vinke

23. Internal vs. External control Do we control our environment or work with it ? • Major focus affecting their lives and the origins of vice and virtue as residing within the person (part of the nature) • World is more powerful than individuals. Nature is to be feared or emulated. Joop Vinke

24. Global Literacy Be effective in doing business and managing with different culture • This applies equally to: • those working where there is diversity in the work force • those travelling and working in different cultures • those receiving business visitors from other cultures Joop Vinke

25. Don’t………..! • Change your behaviours to try to emulate the culture(s) you are working with. or • Simply 'Do in Rome as Romans do... etc. Joop Vinke

26. Try …………Reconciliation In dealing with different cultures, you have several options: • Ignoring other culture • Abandon your standpoint • Compromise or………… Reconciliation: Joop Vinke

27. Universalism …Apply rules and procedures universally to ensure equity and consistency although…… Central guidelines with local adaptations and discretion …We do not want to drown in chaos or lose our sense of central directions so we must… …We do not want to degenerate into rigidity and bureaucracy so we must……… ..Encourage flexibility by adapting to particular situations. However...... Particularism Joop Vinke

28. MAS VERSUS UAI Joop Vinke

29. PDI VERSUS UAI Joop Vinke

30. A model for the Diversity of European regimes Rheinic Germany, Austria, Netherlands,Scandinavia, France Anglo-Saxon UK, Ireland Latin Rim Greece, Spain Southern Italy, Portugal Joop Vinke

31. The “Rheinic Model” Social partnership in various forms Germany, Austria, Netherlands, Scandinavia, France • Juridified industrial relations • Work councils • Emphasis on social cohesion and social market • Welfare as “first resort” • Corporatist tradition Joop Vinke

32. The “Anglo-Saxon model” Free market UK, Ireland • Voluntarist, adversarial industrial relations • Free market • Welfare as “last resort” Joop Vinke

33. The “Latin Rim model” Greece, Spain Southern Italy, Portugal • Conflictual, antagonistic industrial relations • Mixed labour market • Rudimentary welfare (church, family support) Joop Vinke

34. More information?? • “Culture's Consequences : Comparing Values, Behaviours, Institutions, and Organizations Across Nations”n • “Cultures and Organizations” By Geert Hofstede • “Riding The Waves of Culture: Understanding Diversity in Global Business” • “The Seven Cultures of Capitalism” • “21 Leaders for The 21st Century” • “Building Cross-Cultural Competence: How to Create Wealth from Conflicting Values “ By Fons Trompenaars Try : www.7d-culture.nl Joop Vinke