Napoli MBA june 05

Slide1: 

Trust and Transparency across Cultures Gert Jan Hofstede Introduction Culture Collaboration Counsel Why? You are unique We are alike What is culture? Perception and reality

Why cross-cultural communication?: 

Stand up if you… have a non-Italian parent speak four or more languages dislike pasta dislike Padanians have held a job abroad Why cross-cultural communication? Money… Awareness Knowledge Know yourselves Know others Skills Blunders are costly Attitude Be curious, be amazed – don’t be angry, don’t be shocked

Each of us is unique: 

Each of us is unique Personality is stable across life Big Five (McCrae): OCEAN: Openness Conscientiousness Extraversion Agreeableness Neuroticism But self-image changes

We are all alike: 

We are all alike Through evolution (Frans de Waal) Basic drives (SAND) Early warning system: emotions Attraction, Disgust Love, Anger Curiosity, Boredom Lust for power, Fear Sex Affiliation Novelty Dominance

Rules of the game?: 

Rules of the game? You are in a meeting. Can you take a mobile call? Yes / No Your boss (or father) has a bad plan. Can you tell him so? Yes / No You must choose a teammate. Bo is nice but lazy, Hans hard-working but unsympathetic. Who do you take? Bo / Hans Can most people be trusted? Yes / No

National culture: 

National culture is… the unwritten rules of the social game the collective programming of the mind that distinguishes the members of one group from those of another the way you were brought up like your nose

The five big issues of culture: 

The five big issues of culture identity Am I a unique individual? Or a group member? hierarchy Are all people equal? Or born with a rank? gender Warriors vs. maidens / mothers? Or unisex? truth Are strange things dangerous? Or interesting? virtue Live for today? Or for later?

Organizational culture?: 

Organizational culture? If national culture is like your nose, organizational culture is like your hair-do: instilled at workplace changed through hiring and firing shared perception of common practices important as social glue for the organization NOT necessarily shared values MORE THAN strategy, propaganda, rhetoric Pioneering leaders have strong imprint

Perception and reality: 

Perception and reality woman does not agree woman listening in on men disappointment about box arrest gangster with weapon policeman with cap funeral horse race: starting pistol, broker, jockeys. man selling caps

Cultural awareness: 

reality perception is more important than reality perception is more important than reality Cultural awareness perception

Katz & Hund: 

Katz & Hund Medium-sized (250) textile printing company CEO + 3 managers finance and personnel (X) manufacturing (Katz) design and sale (Hund) Quarrel! Sales and manufacturing people do not talk What to do? a. call in CEO to settle conflict b. improve org structure with rules c. send Katz and Hund to management course

Katz & Hund: reasons?: 

Katz & Hund: reasons? CEO has the authority If Katz & Hund accept it Rules can prevent conflict If Katz & Hund stick to them Mgmt course prepares them for future conflict interests If Katz & Hund are willing to decide together ad hoc

Slide13: 

Trust and Transparency across Cultures Gert Jan Hofstede Introduction Culture Collaboration Counsel Manifestations of culture Five dimensions of culture Culture dimension maps

Manifestations of culture: 

Values good / bad clean / dirty brave / cowardly sane / crazy Manifestations of culture Values are hidden forces... Symbols scooter Heroes Berlusconi Rituals Theatre performance Powerpoint show

Five basic issues of social life: five dimensions of values: 

Five basic issues of social life: five dimensions of values individualism versus collectivism large versus small power distance masculinity versus femininity achievement versus cooperation strong versus weak uncertainty avoidance long-term versus short-term orientation Confucian dynamism

Slide16: 

Europe Idv (collectivist to individualist) .

Organisation and social sphere: 

Organisation and social sphere ?

Slide18: 

Europe PD (small power distance to large power distance) .

Slide19: 

dimensions?

Slide20: 

Europe MAS (feminine to masculine) .

Slide21: 

Europe UA (uncertainty tolerant to uncertainty avoiding) .

Italian culture: 

Italian culture Diverse! Roman heritage is strong On average: Individualistic Medium power distance Masculine (performance-oriented) Uncertainty avoiding Fairly short term oriented Fighting tradition-loving society

Slide23: 

World LTO (short term to long term oriented)

Are these maps still valid?: 

Are these maps still valid? Geert Hofstede, data collection ‘68-’72 Opinion survey with IBM, all levels, n > 100.000 Factor analysis of > 150 questions e.g. ‘How important is it to you to work with people who co-operate well with one another?’ central to factor individualism (+) / collectivism (-) (next to time for personal and family life and to factor masculinity (-) / femininity (+) (next to earnings, advancement) Replicated often, and confirmed

Slide25: 

Trust and Transparency across Cultures Gert Jan Hofstede Introduction Culture Collaboration Counsel Aggregation levels: chain organisation team individual

Food chain: Hide or confide?: 

Food chain: Hide or confide? Hiding: power, but… Transparency: quality (?) History Operations Strategy

Level 1: ‘Netchain’ structures: 

Level 1: ‘Netchain’ structures Hierarchy Market Network freelance, spot market subcontracting, employment implicit: obligation, loyalty

Contracts: all five dimensions matter: 

Contracts: all five dimensions matter If... Individualist: free to opt out Collectivist: ingroup comes first large PD: authority stronger than contract weak UA: ambiguity in contract is OK strong Mas: small print for bad guys long-term orientation: big picture more important than small print

Level 2: organisations: 

Level 2: organisations Corruption Poor countries: Masculinity Collectivism Rich countries: Strong uncertainty avoidance Large power distance

Slide30: 

small Power distance large Uncertainty avoidance weak market machine family pyramid Models of organisation Germany Switzerland Ge Austria Switzerland Fr France Singapore China Great Britain Japan United States Italy Russia Poland strong Israel India Brazil

Level 3: Teams: 

Level 3: Teams Minority / majority? Integration / segregation? Langage problems Groupwise rank? Aluminium subcontractor Subgroups or loose individuals? Affected by culture

Choosing a teammate: femi  collec: 

Choosing a teammate: femi  collec Study HK, US, NL / HK, J, US ‘Group mates are good or bad students; nice or unsociable persons. How would you grade them, and whom would you choose in your next team?’ Grade: Indiv - person / collec - team Choose: Mascu – Hans / femi - Bo

Slide33: 

feminine Masculinity masculine collectivist team harmony fun team performance individual performance Teamwork models Germany Switzerland Ge Austria Switzerland Fr France Singapore China Great Britain Japan United States Italy Russia Poland individualist Israel India Brazil Individualism Scandinavia Slovenia Portugal

Level 4: Culture 4D vs personality Big 5: 

Level 4: Culture 4D vs personality Big 5 . Idv PD Mas UA Extraversion +++ -- Conscientiousness -- Openness - + Agreeableness - -- Neuroticism ++ ++ +: positive correlation p < .05, .01, .001, 33 countries Source: Hofstede & McCrae (2004)

Gender roles: 

Gender roles Women are more co-operation oriented than men except female U.S. managers (3 studies: IBM, government, Am. Mgmt Assoc.) Gender difference larger in masculine societies Age feminizes everybody Education too

Slide36: 

Trust and Transparency across Cultures Gert Jan Hofstede Introduction Culture Collaboration Counsel

Working with foreigners: 

Working with foreigners Foreigners feel differently, Five dimension scores are pointers Ask and explain Expect the unexpected …but they are also people Do your best for them Everyone likes to be noticed

Collectivist cultures and transparency: 

Collectivist cultures and transparency Collectivist values: 1. Relationship 2. Business asking for accountability is a sign of distrust! so Send warm people Do not remove people from going concern

Rules of feedback to collectivists: 

Rules of feedback to collectivists Preserve face Not in face of others (tale of two sons) Harm one, harm all (wedding guest) Explicitly preserve relationship Never openly assume ill will Be evasive rather than saying no Affective / cognitive conflict

Feedback to large power distance people: 

Feedback to large power distance people Observe status Use rank titles Never talk upwards unless asked Never lower yourself Always use the status path Do not fake equality If you are boss you are not equal But you can be a ‘listening parent’.

Leadership and transparency: 

Leadership and transparency Be an acceptable leader Family, pyramid, market, machine? In collectivist, large power distance culture: Father: cares and decides Mother: listens and decides Leader’s values become followers’ practices Founder’s country influences company culture

Personal level: 

Personal level You cannot change: …personalities …cultures → recruit open, agreeable, even-keeled people You can change …cultural competence …attitudes …relationships

Bibliography: 

Bibliography (1980, 2001) Culture’s Consequences. Sage. Geert’s ‘Bible’. (1991, 2005) Cultures and Organizations. McGraw Hill. Popular book with background (2002) Exploring Culture. Intercultural Press. Gert Jan H., Paul Pedersen and Geert H.‘Getting started’ www.geerthofstede.com Hide or Confide: the dilemma of transparency. Reed Business (2004)