Cross-Cultural Management.

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That explains why we can all live together even though we all have different backgrounds.

We also respect the same rules and codes that guaranty each of us the same degree of freedom.[pic 1]

The 3 major categories of people defined by Lewis are not based on the nationalities of people but on the way they act / behave. We see that culture and therefore origins affect our behavior, that’s why we can say that Asians are principally reactive. However, work situations also impact the way we have. Ex: Accountants → linear and Sales people → Multi-active.

The model helps for recruitment as it defines how people potentially act & perform professionally.

American vs Japanese Joint-Venture case study (photocopy)

Universalist vision =/ particularist/individualist vision

From the American point of view, our trust is shown through this long contract because for the universalists, the rules matter the most.

From the Japanese point of view, our trust is based on long term human relationships, so contracts are not as important as for the Americans, because for particularists personal relationship matter the most.

The misunderstanding comes from a totally different vision of trust, based on cultural differences.

The universalists tend to not trust the particularists because these latter favor their own friends!

On the contrary, particularists tend to not trust universalists because these latter wouldn’t help a friend!

What are Hofstede’s 5 Cultural Dimensions?

Power distance index = Hierarchy

In some cultures, the people at the bottom of the hierarchy accept/consider that the power is the top of the hierarchy. In other cultures, people consider that the power is everywhere in the hierarchy of their organization.

Individualism vs Collectivism

In collectivists societies & organizations, the well-being & success of the group matters more than individual achievements.

Masculinity vs Femininity

The dimension associates values that are typically “masculine” (ex: competitiveness) or “femininity” (ex: organization) and the way a society/country behaves. For instance, / example, the US is seen as competitive, therefore masculine.

Uncertainty avoidance index

It is the degree to which the people in a society accept uncertainty. Some cultures consider that we have no impact/power on the future, so they live we calmly with uncertainty. Other societies are very nervous about uncertainty because they like to master every detail.

Long-term orientation (LTO) vs STO = different vision of time

LTO = linear / continuous vision of time

2 values associated with this orientation = thrift & perseverance

STO = time as a cycle / circle

Tradition & social obligations

Culture & Communication

High context vs low context communication styles refer to how much people, in different societies, rely on words to convey a message (low context) or rather on gestures, suppositions, codes, implied meanings (high context).

Yet / However, we all use both high and low context communication in our everyday lives, but some societies resort to one or the other more, because of cultural backgrounds.

High Context

China – France

- Message conveyed by non-verbal means

- Communication is an art

- Relationship centered

- Often there is an authoritative figure that is central to different activities

- Learning by observing & then practicing

Low Context

The US – Germany

- Message conveyed more directly

- Communication is a way to exchange facts / ideas…...

- Rule oriented

- Task oriented

- Learning by following explicit directions & explanations

Video 1:

- Underestimation vs overestimation

A negotiator should never underestimate or overestimate the power of culture on negotiation styles. The problem is that some people generalize the concept of culture to “nationality”. But there are different elements in one “national culture”: education, gender, age, religion, etc …

- Assumptions / Suppositions

They are important in cross-cultural negotiations because it is important to be aware of the cultural differences that you will face. They can also be dangerous when you are dealing with someone who is very much like you (example a French person & a Belgian), because you may wrongly think there are no cultural differences and make mistakes.

- “I dot all the ‘I’s and cross all the ‘t’s”

This means that I pay attention to all the details of cultural differences and I am very clear in my communication when I negotiate with somebody who is very different from me.

- “Whole spectrum”

Mr. Falcao explains that the elements that constitute culture are not just the nationality, but also race, age, ethnicity, religion, gender and cultural ritual (how to build relationships).

- Why communication is important?

Because we have different communication styles and codes, so we all need to be clear on what the message is (the content) & also on how we convey the message (the form: direct/indirect).

- “Sometimes the power