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Product and service ideas are drawn from worldwide sources, as are the factors and locations of production. Companies, however, tailor final products and services and their marketing to discrete market niches. Critical com- ponents of this type of market segmentation are nationality and ethnic- ity.

Culture, once again, becomes a critical competitive factor. They need to be able to quickly translate these worldwide client needs into products and services, produce those prod- ucts and services on a timely and least-cost basis, and then deliver them to clients in a culturally acceptable fashion for each of the national and ethnic communities involved. In the global phase, the exclusive product, sales, or price orientation of past phases almost completely disappears.

Companies replace these indi- vidual orientations with a culturally responsive design orientation, accompanied by a rapid, worldwide, least-cost production function. The company that designs and brings to market the next new-best-thing wins. Similarly, the ability to manage cross-cultural interaction, multinational teams, and global alliances becomes fundamental to overall business suc- cess.

Whereas effective global human resource strategies varied from irrel- evant to helpful in past phases, in the global phase they have become essential, a minimum requirement for organizational survival and success. Cross-cultural management explains the behavior of people in organizations around the world and shows people how to work in organizations with employee and client populations from many different cultures 24;41; Cross-cultural man- agement describes organizational behavior within countries and cultures; compares organizational behavior across countries and cultures; and, most impor tant, seeks to understand and improve the interaction of co- workers, managers, executives, clients, suppliers, and alliance partners from countries and cultures around the world.

Cross-cultural manage- ment thus expands the scope of domestic management to encompass international and multicultural dynamics. People in all cultures are, to a certain extent, parochial. Congressman Paul Simon deplored the shocking state of foreign language illiteracy in the United States and emphasized the heavy price Americans pay for it diplomatically, commercially, economically, and culturally. Foreign students and statesmen refresh their perceptions of the United States by reading our poets, essayists, novelists and humorists.

Preoc cupied with acting, we seldom miss opportunities to ignore thought. Many business leaders predict that the next generation of top executives will have to perform well on multiple global assignments to reach the top B18; Royal Dutch Shell, for example, requires four expatriate assignments before it considers a manager for promotion into senior management.

Yet in the United States such global exposure and experience has neither been the norm in the past nor, unfortunately, is it as common as it should be today Of the 87 top executives, 80 percent had had no international experience at all, except for inspection tours Today, executive recognition of the importance of global experience has increased, but not as rapidly in the United States as in many other parts of the world.

By comparison, more than eighty percent of non-U. Why have many Americans ignored the need to think and to act globally? Few young Brazilians, Israelis, Swedes, or Thais remain trapped in this parochial and privileged assumption. Historical U. In many fields in which for years U.

In the public sector, p rojects transferring tech- nology from the United States to economically developing countries further encouraged Americans to view the world from an American perspective multidomestic phase. Most of them consider them- selves the most highly civilized people.

Because they are accus- tomed to technical inventions? Consequently, they think that people living in bamboo houses or having customs different from their own are primitive and backward The academic community further reinforced U. Most management schools are in the United States, the vast majority of management professors and researchers are U.

In a survey conducted in the s of more than 11, arti- cles published in 24 management journals, approximately 80 percent reported on studies focusing on U. Fewer than 5 percent of research articles describing the behavior of people in organizations included the concept of culture 2.

Less than 1 percent focused on people from two or more cultures work- ing together, a crucial area to understand for global business success 2. The publishing of cross-cultural management articles is increasing much more slowly than the rate at which business has gone global 35;58;60; Even in the last decade, only 6. The manager about to negotiate a major contract with a client from another country, the executive about to become director of Asian, European, or Latin American operations, and the newly promoted vice president for global marketing all receive less guidance than they need from the available management literature.

Cultural misunderstandings persist at the most sophisticated levels of intercultural interaction. In September , for example:. Did Mr. Maybe this was some Texas slang for telling China it had to buy more U. Well, eventually the Chinese got a correct interpretation The United States will continue to have a large domestic market, English will continue to be the language of international business, and technological excellence will continue to typify many U.

Nonetheless, the domain of business has rapidly moved beyond national boundaries; the limitations of monolingualism have become more apparent; and sustained technological superiority in many industries has become a cherished memory. The intense global competition of the past decade renders parochialism self-defeating. No nation can afford to act as if it is alone in the world parochialism or as if it is superior to other nations ethnocentrism.

The U. Like businesspeople the world over, Americans must now compete on a global scale and contribute based on world-class standards. Whether organizations produce in multiple countries or only export to them, whether employees work as expatriates or only travel abroad, whether legal ownership involves joint ventures, wholly owned subsidiaries, or strategic alliances, global firms must man- age despite the added complexity of working in many countries simulta- neously.

Geographic dispersion confronts organizations with political risk, fluctuations in exchange rates, substantial transportation and com- munication costs, varying regulatory structures, and many other com- plexities determined by greater distances and national borders. Domestic firms can be multicultural if their employees or clients come from more than one culture.

Multiculturalism adds to the complexity of global firms by increasing the number of perspectives, approaches, and business methods represented within the organization. To successfully manage the geographical dispersion and multicultur- alism of multinational organizations, managers must develop a global Culture and Management 17 mindset 7;9;17;18;36;53;57;65;74; In fact, it is the mindsets of key man- agers that shape business strategy and ultimately determine the success of the firm.

Managers with a global mindset address strategic business decisions as cosmopolitans, always considering the broader world pic- ture rather than just the local situation 9 based on 63; Similarly, using their highly developed cognitiv e complexity, managers with a global mindset simultaneously consider the complex multicultural situations facing the firm, and consistently make appropriate trade-offs among competing multinational options 9.

Whereas most books on global management have focused on understanding and managing geographical dispersion, this book focuses primarily on managing multiculturalism and raises such ques- tions as: How do people vary across cultures? How do cultural differ- ences affect organizations? When do global managers recognize cultural differences? What are the best strategies for managing multicultural- ism?

How can companies best leverage cultural diversity, using it as a competitive advantage rather than viewing it as a source of problems? To understand the differences between domestic and global manage- ment, it is necessary to understand the primary ways in which cultures around the world vary.

Anthropology has produced a literature rich in descriptions of a full range of cultural systems, containing profound implications for managers working outside their native countries. Anthropologists view culture in many ways. After cataloging more than different definitions of culture, anthro- pologists Kroeber and Kluckhohn offered one of the most com- prehensive and generally accepted definitions:.

Culture consists of patterns, explicit and implicit, of and for behav- ior acquired and transmitted by symbols, constituting the distinc- tive achievement of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional i. In gen- eral, we see people as being from different cultures if their ways of life as a group differ significantly. Cultural Orientations The cultural orientation of a society reflects the complex interaction of values, attitudes, and behaviors displayed by its members These values in turn affect their attitudes about the form of behavior considered most appropriate and effective in any given situation.

What are the differences among values, attitudes, and behavior? ValuesA value is that which is explicitly or implicitly desirable to an individual or group and which influences the selection from available modes, means, and ends of action. Values can be both consciously and unconsciously held Values therefore reflect relatively general beliefs that either define what is right and wrong or specify general preferences Latin American managers, for example, consider loyalty to the family to be highly important—a value that leads them to hire com- petent members of their own family whenever possible.

In both cases a strongly held value influences managerial behavior. Attitudes An attitude expresses values and disposes a person to act or to react in a certain way toward something. Attitudes are present in the relationship between a person and some kind of object.

Initial market research, for example, showed that French Canadians have a positive attitude toward pleasant or sweet smells, whereas English Canadians prefer smells with efficient or clean connotations. The first advertise- ments for Irish Spring soap directed at French Canadians therefore stressed the pleasant smell, whereas the ads directed at English Canadians stressed the inclusion of effective deodorants. For example, based on their culture, Middle Easterners stand closer together a behavior than do North Americans, whereas Japanese stand farther apart than do either North Americans or Middle Easterners.

Latin Americans touch each other more frequently during business negotiations than do North Americans, and both touch more frequently than do Japanese. The norm 20The Impact of Culture on Organizations for a society is the most common and most generally accepted pattern of values, attitudes, and behavior. In global business, for example, a man wearing a dark gray business suit reflects the norm through a favored behavior, whereas a man wearing a green business suit would violate the norm.

A cultural orientation describes the attitudes of most people most of the time, never of all people all of the time. Accurate stereotypes reflect societal or cultural norms. Societies enforce norms by communicating disapproval toward transgressors—people who engage in prohibited behavior. Some norms, such as laws, may be highly significant; whereas other norms, such as customs and habits, may be less important.

In the United States, for example, an important norm proscribes bribery. Companies caught using bribery to increase their business are publicly prosecuted and fined; both punishments reflect severe cultural sanc- tions. At worst, my colleagues may assume that I am pre- occupied or perhaps tired.

Anthropologists Kluckhohn and Strodtbeck 52 discuss a set of assumptions that allows us to understand the cultural orientations of a society without doing an injustice to the diversity within the society. Each society must decide on systems of justice, communication, education, health, commerce, transportation, and government. Many Chinese prefer acu- pressure and acupuncture; many British prefer chemotherapy and surgery; many Indians prefer ayurvedic medicine and many Christian Scientists prefer prayer.

Culture and Management 21 5. These assumptions emphasize that cultural descriptions always refer to the norm or stereotype; they never refer to the behavior of all peo- ple in the culture, nor do they predict the behavior of any particu- lar person.

The six dimensions answer the questions: Who am I? How do I see the world? How do I relate to other people? What do I do? How do I use space and time? Each orientation reflects a value and each value has behavioral and attitudinal implications. As summarized in Table , this section introduces the six value dimensions and gives managerial examples for each. Because many people are familiar with U. Americans traditionally see people as a mixture of good and evil, capable of choosing one over the other.

They believe in the possibility of improvement through change. Change is possible. Change is impossible. Example:Emphasize training and Emp hasize selection and fit; development; give people select the right person for the opportunity to learn the job; do not expect emp- on the job.

Example:Personnel director reviews Personnel director selects academic and employment the closest relative of the records of each candidate chief executive as the to select the best person best person for the job. Example: Individuals make decisions Groups make decisions What is the primary mode Doing Being Controlling of activity? Example:Employees work hard to Employees work only as achieve goals; employees much as needed to earn maximize their time at enough to live; employees work.

How do people see space? Private Public Example:Executives hold important Executives hold important meetings in large offices meetings in open areas, behind closed doors with with open doors and a secretary screening out many interruptions from interruptions. Others see people as basically good—as reflected in utopian societies through- out the ages.

Societies that consider people good tend to trust them a great deal, whereas societies that consider people evil tend to suspect or mistrust them. In high-trust societies, for example, people leave doors unlocked and do not fear being robbed or assaulted.

In low-trust soci- eties, people bolt their doors. After making a purchase on the internet, people in high-trust societies expect to receive the merchandise and to have their credit card appropriately debited; they do not expect to be cheated. In many countries people are more trusting in rural comm unities than in urban centers.

Today many citizens of the United States and Canada lament that their fellow citizens cannot be trusted the way they used to be. Out of personnel officers responding to a survey of Fortune companies, only one said that deception by applicants for executive positions was diminishing To add to this mistrust, many people find it more difficult to trust for- eigners than citizens of their own country.

They also describe their belief that peasants are good while rich people are not so good, as reflected in a story told among people living in Tianjin, the fourth largest city in China:. The ped-a-cab driver, a peasant, waited all day outside the winery to return the wallet to the Frenchman. Canadian gov- ernment officials, for example, thought the Inuits, a native people, were evil when they burned down the doors in their Canadian-built public 24 The Impact of Culture on Organizations housing projects.

The Canadian government condemns the destruction of property, whereas the Inuits condemn closed doors that separate people from family members and neighbors. Apart from their tendencies toward good or evil, can human beings improve themselves? Societies and organizations vary in the extent to which they believe that adults can change or improve.

Organizations that believe people can change, for example, emphasize training and develop- ment, whereas organizations that believe people are incapable of change emphasize selection systems. The owner took an old cash box out of a large desk. The owner hesitated: should he leave me sitting in the room with the money or take it with him? Quite simply, could he trust me? The Bosnian manager saw individuals as good and inherently trustworthy.

For this reason, he could leave his new employee alone with the money without worrying that the Canadian would steal it before he returned. The first strategy— primarily hiring new employees—assumes that change is not possible, whereas the second strategy of training present employees implies that change is possible. I changed! Are people dominant over their environment, in harmony with it, or subjugated by it? North Americans generally see themselves as dominant over nature. Other societies, such as traditional Chinese and Navaho, attempt to live in harmony with nature.

They see no real separation between people and their natural environment, and their beliefs allowed them to live for many generations at peace with the environment. In contrast to both of these orientations, a few remote tribal societies see people as subjugated by nature. In these cultures people accept and honor, rather than interfere with, the inevitable forces of nature. How does an organization see its environment? Are the relevant external environments—cultural, economic, legal, political, social, and technological—seen as stable and predictable or as chaotic, turbulent, and unpredictable?

Does an organization assume that it can control its environment, that it must harmonize with it, or that it will be domi- nated by it? By assuming, for instance, that people can and ethically should modify nature to enhance their own well-being, dominance- oriented agribusiness executives use fertilizers, pesticides, and genetically modified seeds to increase crop yields. Farmers subjugated by nature hope that sufficient rain will fall, but they do not construct irrigation systems to assure s ufficient water for their crops.

Although they hope or pray that pests will not attack their crops, they refuse to use insecticides. Dominance Versus Harmony Given the rapid expansion of their Asian practice, an American law firm chose to add a newly promoted American partner to its Asian headquarters in Shanghai. The Shanghai lawyers gave the new expatriate American partner a prominent office and encouraged her to decorate it herself. Having studied Chinese culture in the months prior to leaving the United States, the American expatriate chose to place a large, particularly artistically rendered Chinese painting of a fish in her office, immediately to the left of the door.

Luckily, she sought the help of the local Feng shuimaster. Feng shuireflects the belief that people and their activities are affected by the orientation and layout of buildings, rooms, and objects, including in offices and homes. The goal of feng shuiis for people to remain in harmony with the environment. The feng shui master explained that the problem was the placement of the paint- ing. The head of the fish, which faced the door, symbolized that profit would flow away from the client and out the door.

The expatriate executive had been right a bout the overall symbolism of the fish. Her Asian practice grew st eadily, with more than an average amount of success. In the ensuing months, there were no business failures or other dire business consequences.

Chinese and North American perceptions of the world clearly differ. Traditional Chinese desire to be in harmony with nature, whereas most North Americans want to control nature. The American expatriate partner did not yet know enough about Chinese culture to create harmony with nature. When Sir Edmund Hillary reached the top of Mt. Lateral group membership includes all who are currently members of a particular family, community, or organization.

Hierarchical group membership has a temporal definition; it includes current members of the particu- lar group and members from prior generations. The United States is strongly individualistic and weak in loyalty to groups, teams, and communities. Dominance to herself and her clients. Dominance Versus Harmony continued Culture and Management29 team trounced the opposition.

Compared with people in more group-oriented societies, Americans are more geographically mobile and their relationships, especially with co-workers, are less permanent. Due to its individualistic orientation, the United States has been described as a temporary society with temporary sys- tems, uprootedness, disconnectedness, nonpermanent relationships, and mobility More group-oriented societies, such as Japan, China, and the Israeli kibbutzim, emphasize group harmony, unity, and loyalty.

Individuals in these societies frequently fear being personally ostracized or bringing shame to their family or group for behavior that deviates from the norm. Personnel policies can follow more individual or more group orienta- tions. Individual-oriented personnel directors tend to hire those best qual- ified to do the job based on personal skills and expertise.

Group-orien ted personnel directors also tend to hire those most qualified, but the prime qualifications they seek are trustworthiness, loyalty, and compatibility with co-workers. They hire people who are well known to them, including friends and relatives of people already working for the organization.

His daughter Lana had recently graduated as one of the top students from a prestigious German university. Rade considered it his duty to find his daughter a job, and he wanted his German boss to hire Lana. Although the boss felt Lana was extremely well qualified for the open position, he refused to have a father and daughter working in the same office.

The very suggestion of hiring family members was repugnant to him. Rade believed that his boss was acting unfairly—he saw no problem in his daughter working with him in the same office. The unfortunate outcome was that Lana was neither considered nor hired; the boss lost respect for Rade; and Rade became so upset that he requested a trans- fer to a new department.

Neither Rade nor his boss understood that the conflict was caused by the fundamental difference in their values orientations. The managing director of one group-oriented company in Ghana expressed his belief that only people who are known by other employees in the company can possibly be trusted to act responsibly. Many more group-oriented Latin Americans question the ethics of North American managers, who choose not to be loyal to their friends and family The organization of firms in individualistic and collectivist societies differs.

In individualistic societies, such as those of Canada and the United States, organization charts generally specify individual positions, each with a detailed job description listing formal duties and responsibil- ities. By contrast, organization charts in more group-oriented societies, such as Hong Kong, Indonesia, and Malaysia, tend to specify only sections, departments, and divisions, except for the top one or two positions Group-oriented societies describe assignments, responsibilities, and reporting relationships in collective terms.

The individual versus group orientation also influences decision mak- ing. In North America, individuals make decisions. North Americans, therefore, make decisions relatively quickly, although implementation frequently gets delayed while the decision maker explains the decision and gains concurrence from other members of the organization. By con- trast, in Japan, a group-oriented culture, many people make the decision rather than just one.

The process of group decision making is less flexible and more time-consuming than the individualistic system because con- currence must be achieved prior to making the decision. However, because all parties already understand and concur, the Japanese are able to implement a decision almost immediately after it is made.

They stress achieving outcomes that they can measure by objective standards; that is, standards believed to be external to the particular individual and capable of being consistently applied to other situations and outcomes. Managers in doing-oriented cultures often motivate employees with promises of promotions, raises, bonuses, and other forms of public recognition.

The contrasting orientations are being andcontrolling. In the being orientation, people, events, and ideas flow spontaneously; Culture and Management31 people stress release, indulgence of existing desires, and living and working for the moment. If managers in being-oriented cultures do not enjoy their colleagues and current projects, they quit; they will not work strictly for future rewards. The doer is more active; the person focused on being is more relaxed. The doer actively tries to achieve the most in life; the person focused on being wants to experience life as it is.

The doing and being orientations affect planning quite differently. Being-oriented managers view time as generational, and therefore believe that planning should allow for the extended time needed for true change to occur. Major projects often need a generation, or cer- tainly a decade, to achieve significant results. Managers are focused on allowing change to occur at its own, often slow, pace.

They do not push or rush things to achieve short-term results. His job was to travel around the turbulent province situated between Pakistan and India looking for troop movements on each side. The officer and his family moved into a houseboat on the river in Srinagar, the capital of the province. The family was very pleased with his work, and after a short time decided to give him a raise.

Surprisingly, the servant did not turn up for work the next day, and his little brother arrived in his place. On his new higher salary, the servant had employed his younger brother to work for the family. With the raise he could maintain his own desired standard of living and help his younger brother without personally having to work.

Consistent with the Kashmiri servant being a Hindu, he did not believe that he could improve his standard of living in his lifetime. So by being good and not disturbing the harmony of his circumstances i. Be-ers believe that this type of planning is possible but unwise, because it rarely works immediately and is fruitless in the long run. The activity orientation also explains why people work.

To achieve goals, doers maximize work; to live fully, be-ers minimize work. Increasing the salaries of doers and be-ers has opposite effects. Salary increases motivate most doers to work more hours because the rewards are greater; they motivate most be-ers to work fewer hours because they can earn enough money in less time and still enjoy life. Similarly, Canadians working in Malaysia found that workers were more interested in spending extra time with their family and friends than in earning overtime pay bonuses.

What relationship does a given society have toward time? Is the society oriented toward the past, present, or future? The Japanese, ostensibly to reduce the uncertainty in their coal supply and to assure continuous, stable pro- duction in Japan, wanted the Canadians to sign a year contract. Whereas the Japanese wanted to reduce the level of risk in their coal supply, the Canadians revealed their willingness to risk losing a steady buyer in exchange for the flexibility needed to remain open to future, potentially more profitable future clients.

The negotiations had hit a snag. Unless the culturally based time frame of the contract could be resolved, no contract would be signed. A deal that would ben- efit both parties had a distinct possibility of remaining unconsummated. Culture and Management33 historic wisdom of society and that innovation and change are justified only to the extent that they fit with past experience.

By contrast, future-oriented cultures believe that they should evaluate plans in terms of their projected future benefits. Future-oriented cultures jus- tify innovation and change mostly in terms of future economic bene- fits; they have less regard for past social, cultural or organizational customs and traditions.

In contrast with most North Americans, many Europeans are more past-oriented. Many Europeans believe that preserving history and conserving past traditions remain important, whereas North Americans give tradition less importance.

North American employment practices also reflect a short-term orientation. Employees who do not perform well during their first year with an organization are fired or at best not promoted. Japan by con- trast, has traditionally had a more long-term, future-oriented time hori- zon. Traditionally, when large Japanese firms hired employees, both parties made a commitment for life.

Major Japanese firms invested in years of training for each employee because they could expect the employee to work with the firm for 30 to 40 years. North American firms have normally invested far less in training because a lifetime com- mitment between the company and the employee was neither given nor expected.

Chinese children, so far, have no space-age superman to emulate. Even at play, they pretend to be the Monkey King, the supernatural hero of a famous medieval epic Similarly, Chinese scientists look to the past for inspiration.

Culture defines when people are considered to have arrived late and when they are judged to be on time for work, meetings, or business lunches. The amount of leeway depends on the particular culture. How long managers expect scheduled appointments to last—five minutes or two hours— also depends on the cultures involved. What is the typical length of a project assignment—one week or three years?

This is no problem. Past-, present-, and future-oriented people exist within every society. Comparing lawyers and economists in the United States highlights this temporal diversity. Is a conference room, an office, or a building seen as public or private space? When can I enter an office directly, and when must I wait outside until granted permission to enter? The public versus private dimension defines the arrangement of organizational space.

North Americans give private offices to more important employees, and even separate open-plan offices with parti- tions between desks. The Japanese, by contrast, use no partitions to divide desks; bosses often sit together with their employees in the same large room. Middle Easterners often have numerous people present during important meetings—some related, and some not related, to the issues being dis- cussed. Both Middle Easterners and Japanese have a more public orien- tation to space than do most North Americans.

By contrast, German and British businesspeople typically exhibit an even more private ori- entation than do most North Americans. Our ways of thinking, feeling, and behaving as human beings are neither random nor haphazard but rather are profoundly influenced by our cultural heritage.

Until we leave our community, we often remain oblivious to the dynam- ics of our own culture. As we come in contact with people from other cul- tures, we become aware of our uniqueness and begin to appreciate our differences. In interacting with foreigners, we learn to recognize and value our fundamental humanity—our cultural similarities and dissimilarities. For years, many managers chose to believe that organizational functioning was beyond the influence of culture; they operated as if organizational out- comes were determined only by task and technology.

Today we know that neither work nor success is simply a mechanistic outgrowth of either tech- nology or task. At every level, culture profoundly influences the behavior of organizations as well as the behavior of people within organizations. Individual Cultural Self-Awareness. As summarized in Table , which values do you think best reflect your personal orientation on each of the six dimensions? Think of an example of your own behavior that fits each values orientation.

National Cultural Self-Awareness. Cross-Cultural Awareness. Think about a cross-cultural situation you have been in—a situation in which you are working or negoti- ating with people from another culture. Describe their values ori- entations on each of the six dimensions. Where do your own values and their values orientations differ? What problems have been caused or might be caused by the differences in your values orien- tations? What benefits could you potentially gain by using the dif- ferences between your two cultures to your advantage?

Cross-Cultural Interaction Skills. Select a situation reported in the international press involving people from more than one cul- ture such as Russians negotiating a trade agreement with Indians. In what ways do the values differences increase the probability of a successful outcome?

In what ways might the values differences decrease the chances of success? Parochialism and Ethnocentrism. In what ways is your culture parochial? In what ways is it ethnocentric? Give concrete examples from situations that you have observed or that you have read about in the press. As a consultant, how might you help the managers from your culture to act in a less parochial way? How might you assist them to act in a less ethnocentric way?

Arguments for both the pessimistic and optimistic appreciations of shift- ing world business dynamics summarized by Professor Arshad Ahmad, Concordia University, Montreal, Canada. Although the term American literally refers to all peoples from North and South America, it is used in this book as a shorthand way to refer to citi- zens of the United States of America. Domestic multiculturalism refers to multiple cultures within a particular country. Multi-culturalism, as it is used in this book, refers to internation- al multiculturalism; that is, many cultures represented from multiple countries.

As conducted and cited by Jim Cornell et al. Kluckhohn and Strodtbeck 52 reflect a North American perspective in their work. Their framework is therefore most accurate in describing Western cultures. For an excellent review of the literature on individualism and collectivisim, see Earley and Gibson 26 , and Triandis ABB , www.

Adler, N. Page reprinted with permission. Rugman, ed. Bartlett, Chris A. Boston: Harvard Business School Press, Culture and Management 37 Boyacigiller, Nakiye; Kleinberg, M. Jill; Phillips, Margaret E. Punnett and O. Shenkar, eds. Brown, L.

Brown, M. Calori, R. Caproni, P. Carrol, M. Freedman, ed. Chandler, C. Daniels, J. International Business Environments and Operations, 3rd ed. Reading, Mass. DiStefano, Joseph J. Also see H. Lane and J. DiStefano, International Management Behavior, 4th ed.

Cambridge: Blackwell, Dowling, Peter; Welch, D. Cincinnati, Ohio: South-Western, Eiteman, David K. Multinational Business Finance, 2nd ed. England, G. Friedman, Thomas L. Godkin, L. Govindarajan, V. Guth, W. Hambrick, D. B; Frederickson, J. Hannerz, U. Hannerz, ed. Hofstede, Geert. Wa l l Street Journal May 28, , p. Kanter, Rosabeth Moss. Barnwik and R. Kanter, eds. Kluckhohn, F. Variations in Value Orientations Evanston, Ill. Kobrin, Steve J. Kroeber, A. Lane, Harry W.

International Management Behavior, 5th ed. Malden, Mass. Lyles, Marjorie. McCain, M. Culture and Management41 McEvoy, G. Mankoff, A. Mathews, J. Merton, R. Peng, T. Peters, T. Posner, Barry Z. Pucik, Vladimir. Pucik, N. Tichy, and C. Barnett, eds. Creating and Leading the Competitive Organization. Redding, S. England, A. Negandhi, and B. Wilpert, eds. Rhinesmith, Stephen H. Sackman, Sonja.

Scarangello, A. Examples contributed by Robert Kohls. Schneider, Susan C. Schwab, K. Simon, P. Symington, J. Reprinted by permission. Tichy, Noel M. M, Tichy, and C. Tinsley, R. Triandis, Harry C. Individualism and Collectivism Boulder, Colo. New York: McGraw-Hill, Vernon, Raymond. Yip, George S. Culture and Management 43 Chapter 2 How Cultural Differences Affect Organizations Deep cultural undercurrents structure life in subtle but highly consistent ways that are not cons ciously formulated.

Like the invisible jet streams in the skies that determine the course of a storm, these currents shape our lives; yet their influence is only beginning to be identified. Hall People eat different foods, celebrate different holidays, and dress differ- ently in countries around the world.

But do those differences affect the ways in which people work together? Do people organize, manage, and work differently from culture to culture? Each of us has a set of attitudes and beliefs—filters through which we see management situations.

To a certain extent, beliefs, attitudes, and values cause both vicious and benevolent cycles of behavior. According to McGregor, Theory X managers do not trust their subordinates and believe that employees will not do a good job unless closely supervised. These managers establish tight control systems—such as time clocks and frequent employee observation—to reassure themselves that employees are working.

The employees, realizing that management does not trust them, start behaving irresponsibly— they arrive on time only when the time clock is working and only work when the manager is watching. The manager, observing this behavior, 44 becomes more distrustful of the employees and installs even tighter control systems.

Managers who trust their employees give them overall goals and tasks without instituting tight control systems or close supervision. The employees, believing that management trusts them, do their best work whether or not their manager is watching them. The manager, seeing that the employees are present and working, becomes more convinced that they can be trusted. Managers communicate respect for and trust in their employees in different ways, depending on their cultural background. Less than 20 percent of managers from such specific cultures as Australia, Denmark, France, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States believe that providing housing is a good idea While working at the Royal Bank, I had a most unbearable and suspicious manager who had authority over all administrative employees, including me.

The problem was that he seemed to totally distrust his subordinates. He constantly looked over our shoulders, checking our work, attitudes, and punctuality. He therefore believed that he must pressure them into working. As the manager, he felt justified in treating his employees severely. I found his attitude condescending and counterproductive. As a group, the employees thought of themselves as basically trustworthy. However, we decided that since our boss showed no respect for us, we would give him the same treat- ment in return.

This resulted in a work environment filled with mistrust and hos- tility. Luckily, the situation caught the eye of a senior manager, who resolved it after lengthy discussions. Only then did it become clear that we were not seeing the situation in the same way. As he explained, Filipino employees who were not treated like this might have felt neglected and unimportant. Unfortunately, we were not Filipinos and, as Canadians, we did not respond as many Filipinos might have responded. It is easy to see how misunderstand- ing and mistrust can grow between managers from one culture and employees from another culture.

Laurent asked managers from each country to describe their approaches to more than 60 common work situations. He found dis- tinctly different patterns for managers in each of the countries. As shown in Table , most U. Coming from an extremely task-oriented culture, many Americans believe that a flat organization with few hierarchical levels—in which most employees work as colleagues rather than bosses and subordinates—can function effectively.

They believe that such minimal hierarchy is possible if tasks and roles are clearly defined and the organization is not too large. Eighty- three percent of Indonesian managers reported that the main reason for a hierarchical structure was to have everyone know who has authority over whom. They did not believe that even a small organization could exist, let alone succeed, without a formal hierarchy. How Cultural Differences Affect Organizations 47 Text not available due to copyright restrictions Perhaps these different beliefs explain some problems that can occur when Americans work, for example, with Indonesians.

Americans typi- cally approach a project by outlining the overall goal, designating each of the major steps, and then addressing staffing needs. Their approach goes from task to people. Indonesians, on the other hand, typically want to first know who will manage the project and who will work on it.

An American would rarely discuss candidates for proj- ect director before at least broadly defining the project, whereas Indonesians would rarely discuss project feasibility before knowing who would be leading the project. As shown in Table , Swedish managers see the least problem with bypassing. They are task oriented and value getting the job done; to Swedes, solving problems means going directly to the person most likely to have the needed information and expertise, and not necessarily to their boss.

By contrast, most Italians, being more relationship oriented than the Swedes, consider bypassing the boss as an act of insubordination. Most Italian managers believe that frequent bypassing indicates a poorly designed organization. Italians therefore respond to bypassing by repri- manding the employee or redesigning the hierarchical reporting structure. Imagine the frustration and potential for failure when Swedes form joint ventures and strategic alliances with Italians. Because the Swedes do not first consult their new Italian boss, the Italian will assume that the Swedes are insubordinate and hence a threat to both the alliance and the project.

Before long, the Swedish boss will assume that Italian employees lack initiative and are neither willing to use their personal judgment nor to take risks. Why else, asks the Swedish manager, would the Italians always consult me, the boss, before acting on matters for which the boss need not be consulted? Is either side right? No, they are just different. Managers: Experts or Problem Solvers? Laurent found little agreement across national borders on the nature of the managerial role.

As shown in Figure , more than four times as many Indonesian and Japanese managers as U. Furthermore, U. By con- trast, the French generally see the manager as an expert. Most French believe that people should not hold managerial positions unless they can give precise answers to most work-related questions. Is a manager primarily an expert or a problem solver? Again, the question has no single right answer because organizations from differ- ent cultures maintain different beliefs.

Problems, however, arise when managers from one culture interact with managers and employees from other cultures. Overall, the extent to which managers see organizations as primarily political, authoritarian, role- formalizing, or hierarchical-relationship systems varies according to their country of origin In a country study 11 , which was later expanded to more than 60 countries worldwide 5;9;10;12;13 , , managers and employ- ees working for a U.

Hofstede, like Laurent, found highly significant differences in the behavior and attitudes of employees and managers from each country 50 The Impact of Culture on Organizations even though they worked within the same multinational corporation— differences that did not change over time.

Hofstede found that national culture explained more of the differences in work-related values and attitudes than did position within the organization, profession, age, or gender. Individualism and Collectivism Individualism exists when people define themselves primarily as separate individuals and make their main commitments to themselves. Individualism implies loosely knit social networks in which people focus primarily on taking care of themselves and their immediate families.

Collectivism is characterized by tight social networks in which people strongly distinguish between their own groups in-groups, such as relatives, clans, and organizations and other groups. Collectivists hold common goals and objectives, not individual goals that focus primarily on self-interest. The Selictar-Aga, the King's Sword-bearer.

The Ebrictar-Aga, he that carries his Water to drink or wash. The Tulbentar-Aga, he that makes up his Turbant. The Chesneghir Bashee, the chief Sewer. Zagergee Bashee, the chief over the Dogs. Turnackgee Bashee, he who pairs his Nails. Berber Bashee, chief Barber. Teskeregee Bashee, his Secretary. But before the conclusion of this Chapter, it will be necessary to add, that none, unless by special Grace, are advanced from the Seraglio, until the Age of about forty Years, by which time they are ripe and mature for Government, and the wantonness and heat of Youth allayed.

And at the farewel, with much submission they visit the Capa Aga, or chief of the Eunuchs, and other principal Officers of the Seraglio, recommending themselves, in the time of their absence, to their good Grace and Favour, desiring to live in their good Opinion and Friendship; and this is done with as much Ceremony and Complement as is exercised in the most civil Parts of Christendom.

And thus the Reader may sound the depth of the Turks Philosophy; who tho they reach not those Contemplations of our profound Sophies, have yet so much Knowledg, as neither to be over-reached in their Treaties with the Wits of the World, nor for want of good Conduct of Affairs lose one inch of their Empire.

The Grand Signior's themselves have also been Slaves to this inordinate Passion. The Serai Kiahaiasi, Lord Steward of the Houshould, who oversees the Chambers of the Pages, and the Seferli Odasi, or the Chambers of those Pages who are designed to follow the Grand Signior upon any Journy, and of these he hath care to see them provided of Cloaths and all other Necessaries for the Service they undertake.

Those that are Curates of the Royal Mosques, and have Pluralities of Benefices of that nature, have sometimes a Revenue of Chequins a day: among these also due order is observed, the Younger, or Juniors in the Seraglio, always giving respect and reverence to Seniority. THE Black Eunuchs are ordained for the service of the Women in the Seraglio; as the White are to the attendance of the Grand Signior, it not seeming a sufficient Remedy by wholly dismembring them, to take the Women off from their inclinations to them, as retaining some relation still to the Masculine Sex; but to create an abhorrency in them; they are not only castrated, but Black, chosen with the worst Features that are to be found among the most hard-favoured of that African Race.

Schahzadeler Agasi, or the Eunuch to whose charge is committed the Royal Progeny, and in whose custody at present are three Sons of Sultan Ibrahim, Brothers to the present Emperor, viz. Bostangies, or Gardiners. Asgees, or Cooks, with all the Offices of the Kitchin. Paicks and Solacks. Holvagees, or Confectioners. The Attendants of the Hospital of sick Pages. Of these Bostangees, some are raised to a higher degree, and called Hasaki, which signifies Royal, and attend only to Messages sent by the Grand Signior himself, and are Men of special Authority.

Their Habit or Cloathing nothing differs from the Bostangees, unless in the fineness of their Cloth. The Agiamoglans who are designed to the Grand Signior's Seraglio, are of the choicest amongst the whole number, the strongest Bodies, and most promising Aspects, and are distributed into several Companies as they want to make up their Complement. Their Cloathing is of course Cloth made at Salonica, anciently called Thessalonica ; their Caps of Felt, after the form of a Sugar-loaf, of a Hair colour.

And thus I have given you a brief account of the Grand Siginor's Seraglio, and the Regiment of it, which, if well considerd and weighed, is one of the most Politick Constitutions in the World, and none of the meanest Supports of the Ottoman Empire: which Relation I had from the Mouth of one who had spent nineteen Years in the Schools of the Seraglio.

And therefore I proceed to treat of the diversities of Offices, and Places of great Riches and Trust, which remain in the power of the Sultan to confer on those Favourites, Minions, and Creatures, whom thus at his own Charge he hath nourished, like a Father, from their Infancy, to invest in their riper Years with great Honours, for security of his own Person, and flourishing Estate of his Dominions.

When he is set upon the Bench, all Causes are brought before the Caddeelescheer, who is Lord Chief Justice, and by him all Judgments pass, unless the Prime Vizier shall think the Cause proper for his Cognisance, or shall disapprove at any time the Sentence of the Judg; and then by virtue of his unlimited Power, he can reverse the Verdict, and determine as he pleases.

And this shall in short serve for what is necessary to speak of the Divan in this place, in regard we only touch upon it for the better explanation of the Vizier's Office. The Persians in like cases put on a Vest of white Paper, signifying, the aggravation of their Injury is not to be described in as much Paper as can cover their Bodies.

Emulation and Flattery are likewise great, and the Factions are commonly many in the Ottoman Court, whereby the State of the first Minister is endangered. But it is seldom so among the Turks, for with them it is esteemed no disgrace to be transplanted from the Mountains to the Valleys; they know their Original and Composition partakes not much of Heavenly Fire, and that the Clay they are framed of, is but of common Earth, which is in the Hand of the Grand Signior, as the Pot to frame and mould, as is most agreeable to his Pleasure and Will.

The Revenues of the first Vizier, which issue immediately from the Crown, and are certain appendages to the Office, are not great, being not above Dollars yearly, which arise from certain Villages in Romelia ; the rest of the Immense Riches which accrues to this Charge so full of Cares and Danger, flows from all the Quarters of the Empire. Caramania, anciently called Cilicia, and was the last Province which held out belonging to the Caramanian Princes, when all places gave way to the flourishing progress of the Ottoman Arms; The Revenue hereof is Aspers, and hath under its Jurisdiction seven Sangiacks, viz.

Those Sangiacks which are properly belonging to the Ottoman Royalties, are C. He hath farther three with Siliane, for account of which he is paid by the King's Officers, and those are Kadmar, Saida, Beru, Kiurk, Schubeck, where are no Timariots, but the Inhabitants are true and absolute Masters of their own Estates, in the same manner as the Curdi are, which we have before-mentioned; the Castles here are for the most part demolished, and scarce worthy our notice.

This Government hath five Castles. Is the Government of Kibros, otherwise called Cyprus, hath a Revenue of Five hundred thousand six hundred and fifty Aspers, and commands seven Sangiacks, viz. Is the Government of Tarabolos Scham, otherwise Tripoly of Syria, hath a Revenue of Eight hundred thousand Aspers; at this place the Pascha resides, and hath under him four Sangiacks, viz.

The Government of the Pascha of Kars, a City near Erzrum, hath a Revenue of Eight hundred twenty thousand six hundred and fifty Aspers, and commands six Sangiacks, viz. These are all the Governments which are in Asia with Has ; let us now pass into Europe.

And now lately in the Year , that Wiwar or Newhawsel was taken, a new Sangiack is since added. Those that are with Saliane, or paid out of the Grand Signior's Treasury, are:. Is the Government of Bagdat, otherwise Babylon, and hath a Revenue of a Million and seven hundred thousand Aspers, and commands 22 Sangiacks, viz.

Of these Beglerbegs, five have the Titles of Viziers, which signifies as much as Counsellors, viz. These three Officers are near Councellors and Attendants on their Pashaws ; and so also they are on the Prime Vizier, whose Mufti, Reis Efendi, and Tefterdar, have a Superiority and dignity above others, and are to them as the Original to the Copy. Of the Mufti we shall speak in due place. But this shall be sufficient to have spoken of the relation the Tartars have to the Government of the Turk, and their subjection to this Empire, their Customs and Manners being more amply and fully described in other Books.

Ten thousand Okes of Wax, each Oke being two pounds and a half English weight. Ten thousand Okes of Honey. Six hundred Quintals of Tallow for the Arsenal. Five hundred Ox Hides. One thousand three hundred and thirty Okes of Wax, for the service of the Arsenal. To the Tefterdar, or Lord Treasurer, the same as to the Kahija. To which you may add the Price paid for the Principality, which is every three Years set to sale, and is,.

All which Mony is taken up at Interest at 40 or 50 per Cent. Nine thousand Okes of Wax. And yet the Turks made this course alone answer to all the Intents and Ends of their Government. And this may be one cause, that so rarely Rebellions arise amongst the Turks, though in the remotest parts of Asia ; and when they do, are easily suppressed.

A Monarchy, where there is no Nobility at all, is ever pure and absolute Tyranny, as that of the Turks; for Nobility attempers Sovereignty, and draws the People somewhat aside from the Line Royal. Nor is it imaginable it can be otherwise; for these Men are but Strangers and Foreigners in the Countries they ruled, have no Relations there, or Kindred, to second or revenge their Quarrel, have no ancient Blood or Possessions which might entitle their Heirs to the Succession, or out of Affection or Pity, move their Subjects to interest themselves in their behalf; but being cut off themselves, and falls with them, which affords the strangest Spectacle, and Example of Fortune's unconstancy in the World; for a Turk is never reverenced but for his Office, that is made the sole Measure and Rule of his Greatness and Honour, without other considerations of Vertue or Nobility.

And therefore the Grand Signior doth often, not only abbreviate their time, but also at their return shares in the best part of the Prizes they have made. So that Justice in its common course is set to sale; and it is very rare, when any Law-Suit is in Hand, but Bargains are made for the Sentence, and he hath most Right who hath most Mony to make him rectus in Curia, and advance his Cause. Vendere jure potest, emerat ille prius. This saith Machiavil, Lib.

And in this manner the natural use of the Women being neglected amongst them, as St.

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