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Unit V - Cultural Diversity and Multicultural Teamwork
Definition of Culture
Culture is the characteristics and knowledge of a particular group of people, defined by
everything from language, religion, ritual,beliefs, attitude, behavior, food, marriage, cuisine,
social habits, music, arts, what we wear, how we wear it, what we believe is right or wrong,
how we sit at the table, how we greet visitors, how we behave with loved ones and a million
other things.
Culture is the social behavior and norms & values found in the human societies.
Culture is a pattern of responses discovered, developed, or invented during the group’s history
of handling problems which arise from interactions among its members, and between them and
their environment. These responses are considered the correct way to perceive, feel, think and
act, and are passed on to the new members through immersion and teaching.
In short culture means the entire way of life of people and everything learned and shared by
people in society.
Types of Culture
A culture has four aspects or four types:
1. Ideal Culture
2. Real Culture
3. Material Culture
4. Non-material Culture
Ideal Culture – The culture which is presented as a pattern or precedent to the people is called
ideal culture. It is the goal of the society. It can never be achieved fully because some part of it
remains out of practice. It refers to the values, norms, and beliefs that a society desires to
achieve. It consists of those ideals that people would like to attain as a society.
Real Culture – We act upon on culture in our social life is real, its part which people adopt in
their social life is their real one. The whole one is never real because a part of it remains
without practice. It refers to the values, norms, and beliefs that are actually implemented by
the society.
Material Culture –Material culture refers to physical objects, resources, and spaces that people
use to define their culture. These include homes, neighborhoods, cities, schools, churches,
synagogues, temples, mosques, offices, factories and plants, tools, means of production, goods
and products, stores etc. All of these physical aspectsof a culture help to define its member’s
behaviors and perceptions.
Non-material Culture – Non-material culture refers to the nonphysical ideas that people have
about their culture, including beliefs, values, rules, norms, morals, symbols, language,
organizations, and institutions.
For instance, the non-material cultural concept of religion consists of a set of ideas and beliefs
about God, worship, morals, and ethics. These beliefs, then, determine how the culture
responds to its religious topics, issues, and events.
Basic Elements of Culture
1. Social Organizations
2. Customs and Traditions
3. Languages
4. Arts and Literatures
5. Religion
6. Forms of Government
7. Economic Systems
8. Food and Clothing
9. Music and Dance
Characteristics of Culture
1. Culture is learned
2. Culture is shared by group of people
3. Culture is cumulative
4. Cultures change
5. Culture is dynamic
6. Culture is ideational
7. Culture is diverse
8. Culture gives us a range of permissible behavior pattern
Cultural Anthropology
Anthropology is the study of various aspects of humans within past and present societies.
Cultural anthropology is a branch of anthropology focused on the study of cultural variation
among humans. It deals with human culture especially with respect to social structure,
language, beliefs, practices, values, ideas, law, politics, economy, religion, art, and technology.
A variety of methods are involved in cultural anthropology includes participant observation,
interviews and surveys. It also uses the methods, concepts, and data of archaeology,
ethnography and ethnology, folklore, and linguistics in its descriptions and analyses of the
diverse people of the world.
The rise of cultural anthropology took place within the context of the late 19th century, when
questions regarding which cultures were “primitive” and which were “civilized’’ occupied the
minds of Marx and Freud and many others.
Cultural Anthropology and International Business
Today, most of the business affairs involve more nations-states and governments. The
globalization, migratory movements and close interdependence among governments,
industries and communities across the geographical and political boundaries have made the
business multidimensional and complex. This is the intercultural dimension. More than one
language, religion, ethnicity and culture are involved in today’s affairs. Therefore, businesses
must combine interdisciplinary thinking with the intercultural approach in order to create
common comprehensive operational ground and insure smooth functioning and better output.
The current pace of globalization, interdependence, technical innovation and competition is
forcing the business leaders to rethink constantly their strategies and long-established business
thinking and practices.
Today’s business dealings are across the political and cultural frontiers. The human components
(from suppliers to customers) and material components (from raw materials, manufacturing
plants to after-sale service apparatus) are international and multicultural. Today’s businesses
involve materials, skills and resources from more than one country and social system. They also
reflect more than one organizational culture. So, ignorance of cultural differences is not just
unfortunate, it turns to be bad business.
The risk of error and misunderstanding about the social systemand cultural environment is
quite high, because they are quite intangible and very difficult to quantify, grasp and
communicate. The grasp of cultural environment is essential in international business. The new
business thinking emphasizes in the cultural awareness and intercultural skills.
Hence, Cultural Anthropology can be helpful in two ways in this this regard:
1. They can directly help the business organizations in their international and intercultural
dealings.
2. They can contribute significantly in the business studies and training programs designed
for business operators.
Nature of Culture
When studying cultures throughout the world, we will analyze various cultures by distinguishing
between:
1. cultural traits and
2. cultural items.
Cultural traits – The smallest unit of culture is called cultural traits, it is a learned systemof
beliefs, values, traditions, symbols and meanings that are passed from one generation to
another within a specific community of people. It is nonmaterial in nature. Language, custom,
dress, dress music, food and technology are cultural traits.
Cultural items –These are material culture trait, objects made by humans which can be seen
handled and used. The Christian cross, the swastika, good-luck horseshoes, signs of zodiac are
cultural items.
Layers of Culture
We like to compare culture with an onion. Culture, like an onion, consists of layers which can be
peeled off. In culture, we can distinguish three layers:
1. Artifacts
2. Norms and Values
3. Assumptions
Artifacts – The outer layer is what people primarily associate with culture: the visual reality of
behavior, clothes, food, language, housing, etc. This is the level of explicit culture.
Norms and Values – The middle layer refers to the norms and values which a community holds:
what is considered right and wrong (norms) or good and bad (values). Norms are often external
and reinforced by social control. Values tend to be more internal than norms. Values and norms
structure the way people in a particular culture behave. But they are not visible, despite their
influence on what happens at the observable surface.
Assumption – The inner layer is the deepest: the layer of implicit culture. Understanding the
core of the culture is the key to successfully working with other cultures. The core consists of
basic assumptions, series of rules and methods to deal with the regular problems that it faces.
Cultural Predispositions
A key dilemma for international firms is the degree to which they promote or even impose a
common, standardized corporate culture across the organization. Most of the firms try to steer
a middle line, standardizing some elements across the whole organization to centralize and
simplify some practices and unify employees, while allowing differentiation where necessary.
This transnational culture allows for a compromise in work styles, values, and approaches,
harnessing the strengths that lie in diversity.
Broadly MNCs follows four distinct predispositions towards doing things in a particular way:
1. Ethnocentric Predisposition
2. Polycentric Predisposition
3. Regio-centric Predisposition
4. Geocentric Predisposition
EthnocentricPredisposition – Ethnocentric firms are where top management is dominated by
home-country nationals, and procedures and management styles are transferred from the head
office and imposed on regional subsidiaries in place of local ways of doing things.
Polycentric Predisposition – Polycentric firms tend to act like a federation of semi-autonomous
organizations with financial controls or strict reporting structures holding them together.
Subsidiaries are able to reflect the local cultural norms, and headquarter appreciates the need
for different organization designs, procedural norms, rewards systems etc. as long as profits
flow to the center.
Regio-centric Predisposition –Regio-centric firmstries to blend its own interests with those of
its subsidiaries on a regional basis.
Geocentric Predisposition –Geocentric firms are seen as the ideal, collaborative, and
meritocratic form of global organization. An equal sharing of power and responsibility between
headquarter and subsidiary; senior management promoted according to ability rather than
nationality; subsidiaries that share worldwide objectives with managers focusing beyond
national market interests.
Cultural Dimensions
The cultural dimensions represent independent preferences for one state of affairs over
another that distinguish countries (rather than individuals) from each other. The country scores
on the dimensions are relative, as we are all human and simultaneously we are all unique.
In other words, culture can be only used meaningfully by comparison.
Geert Hofstede and Cultural Dimensions Theory
Geert Hofstede is a Dutch social psychologist and anthropologist who has studied the
interactions between cultures. One of his most notable accomplishments is the establishment
of the cultural dimensions’ theory, which provides a systematic framework for assessing the
differences between nations and cultures. Hofstede gathered most of his data on world cultural
values through surveys conducted by IBM, a US-based technology and consulting firm. He then
proposed a scoring system using a scale from 1 to 120. The theory is based on the idea that
value can be placed upon six cultural dimensions:
1. Power-Distance index
2. Individualism vs. Collectivism
3. Uncertainty-Avoidance index
4. Masculinity vs. Femininity
5. Long-term Orientation vs. Short-term Orientation
6. Indulgence vs. Restraint
Power-Distance index: According to Hofstede, “power distance is the extent to which the less
powerful members of organizations and institutions (like the family) accept and expect that
power is distributed unequally.” This dimension does not measure the level of power
distribution in a given culture, but rather analyzes the way people feel about it. Low power-
distance scores mean that a culture expects and accepts that power relations are democratic
and members are viewed as equals. High power-distance scores mean that less powerful
members of the society accept their place and realize the existence of formal hierarchical
positions.
Individualism vs. Collectivism: “The degree to which individuals are integrated into groups.”
This dimension has no political connotation and refers to the group rather than the individual.
Cultures that are individualistic place importance on attaining personal goals. In collectivist
societies, the goals of the group and its wellbeing are valued over those of the individual.
Uncertainty-Avoidance index: “A society’s tolerance for uncertainty and ambiguity.” This is a
dimension that measures the way a society deals with unknown situations, unexpected events,
and the stress of change. Cultures that score high on this index are less tolerant of change and
tend to minimize the anxiety of the unknown by implementing rigid rules, regulations, and/or
laws. Societies that score low on this index are more open to change and have fewer rules and
laws and more loose guidelines.
Masculinity vs. Femininity: “The distribution of emotional roles between the genders.” This
dimension measures the level of importance a culture places on stereotypically masculine
values such as assertiveness, ambition, power, and materialism as well as stereotypically
feminine values such as an emphasis on human relationships. Cultures that are high on the
masculinity scale generally have more prominent differences between genders and tend to be
more competitive and ambitious. Those that score low on this dimension have fewer
differences between genders and place a higher value on relationship building.
Long-term Orientation vs. Short-term Orientation: This dimension describes a society’s time
horizon. Short-term oriented cultures value traditional methods, take a considerable amount of
time to build relationships, and in general view time as circular. This means the past and the
present are interconnected and that which cannot be done today can be done tomorrow. The
opposite of this is long-term orientation, which sees time as linear and looks to the future
rather than the present or the past. It is goal-oriented and values rewards.
Indulgence vs. Restraint: This dimension measures a culture’s ability to satisfy the immediate
needs and personal desires of its members. Those that value restraint have strict social rules
and norms under which satisfaction of drives is regulated and discouraged.
Trompenaar’s Seven Dimensions of Culture
FonsTrompenaar is a Dutch cultural theorist, specialized in cross-cultural communication and
international management. Trompenaar has a rather long multicultural
background. Trompenaar’s main work experience comes from the oil and gas company Shell,
where he worked in various positions in nine different countries. In 1998 together with a British
management philosopher Charles Hampden-Turner, he founded an Amsterdam-based
consulting company THT Consulting. Since then, Trompenaar has worked with e.g. such big
companies as ICI, Heineken, Mars, Motorola, General Motors, Nike and TRW.
Trompenaar is best known for his cultural dimension theories, presented in his best-selling
book “Riding the Waves of Culture: Understanding Cultural Diversity in Business” which he
penned down along with Charles Hampden-Turner in 1998.
To develop the model, they spent 10 years researching the preferences and values of people in
various cultures around the world. As part of this, they surveyed more than 46,000 managers in
40 countries. They found that people from different cultures vary in specific, even predictable,
ways. This is because each culture has its own way of thinking, its own values and beliefs, and
its own preferences. Trompenaar and Hampden-Turner concluded that what distinguishes
people from different cultures is where these preferences fall on the following seven
dimensions:
1. Universalismversus particularism.
2. Individualism versus communitarianism.
3. Specific versus diffuse.
4. Neutral versus emotional.
5. Achievement versus ascription.
6. Sequential time versus synchronous time.
7. Internal direction versus outer direction.
1. Universalism Versus Particularism (Rules Versus Relationships)
Dimension Characteristics Strategies Typical Cultures
Universalism People place a high
importance on laws, rules,
values, and obligations.
They try to deal fairly with
people based on these
guidelines, but rules come
before relationships.
 Help people understand how
their work ties into their
values and beliefs.
 Provide clear instructions,
processesand procedures.
 Keep promises and be
consistent.
 Give people time to make
decisions.
 Use an objective process to
make decisions, and explain
your thinking if others
areinvolved in the outcome.
The U.S., Canada,
the U.K, the
Netherlands,
Germany,
Scandinavia, New
Zealand,
Australia,
and Switzerland.
Particularism People believe that
their circumstances and
relationships dictate the
rules that they live by.
Their response to a
situation may change,
basedon what’s
happeningin the moment,
andwho’s involved.
 Give people autonomy.
 Respect others’ needs when
youmake decisions.
 Be flexible in how you make
decisions.
 Take time to build
relationships and get to
know people so that you can
understandtheir needs
better.
 Highlight important rules and
policies thatothers must
follow
Russia, Latin
America
and China.
2. Individualism Versus Communitarianism (the Individual Versus the Group)
Dimension Characteristics Strategies Typical Cultures
Individualism People place a high
People believe in
personal freedom and
achievement. They
believe that they must
maketheir own
decisions, andthat they
must take care
of themselves.
 Help people Praise and
reward individual
performance.
 Give employees
autonomy to make
theirown decisions and
to use their initiative.
 Link people’s needs with
those of the group
or organization.
 Allow them to be
creative and to learn
fromtheir mistakes.
The U.S.,
Canada, the U.K,
Scandinavia, New
Zealand, Australia,
and Switzerland.
Communitarianism People believe that the
group is more
importantthan the
person, and that
it provides help and
safetyin exchange for
loyalty.
The group always
comesbefore the
individual.
 Praise and reward group
performance.
 Don’t praise individuals
publicly.
 Allow people to involve
others indecision
making.
 Don’t show favoritism.
Japan and
countries in
Latin America
and Africa.
3. Specific Versus Diffuse (How far People get Involved)
Dimension Characteristics Strategies Typical Cultures
Specific People keep work and
personal lives separate.
As a result, they believe
that relationships don’t
have much of an impact
on work objectives, and
they believe that people
can work together without
getting along personally.
 Be direct and to the point.
 Focus on people’s objectives
before youfocus on
strengthening relationships.
 Provide clear instructions,
processesand procedures.
 Allow people to keep their work
and homelives separate.
The U.S., the
U.K.,
Switzerland,
Germany,
Scandinavia, and
the Netherlands.
Diffuse People see overlap
between their work and
personal life. They believe
that good relationships are
vital to meeting business
objectives. People
spend time outside work
hours with colleagues
and clients.
 Focus on building a good
relationshipwith people before
you focus onbusiness objectives.
 Find out as much as you can
about thepeople who you work
with and theorganizations that
you do business with.
 Be prepared to discuss business
on socialoccasions, and to have
personal discussionsat work.
 Try to avoid turning down
invitations tosocial functions.
Argentina, Spain,
Russia, India,
and China.
4. Neutral Versus Emotional (How People Express Emotions)
Dimension Characteristics Strategies Typical Cultures
Neutral People make a great effort
to control their emotions.
Reason influences their
actions far more than their
feelings.
They don’t reveal
what they’re thinking or
how they’re feeling.
 Manage your emotions
effectively.
 Watch that your body
language doesn’tconvey
negativity.
 “Stick to the point” in
meetingsand interactions.
 Watch people’s reactions
carefully, as theymay be
reluctant to show their true
emotions
The U.S., the
U.K.,
Switzerland,
Germany,
Scandinavia,
and
the
Netherlands.
Emotional People find ways to
express their emotions,
even spontaneously, at
work.
In these cultures, it’s
welcome and accepted to
show emotion.
 Open up to people to build
trustand rapport.
 Use emotion to communicate
your objectives.
 Learn to manage conflict
effectively, beforeit becomes
personal.
 Use positive body language.
 Have a good attitude.
Argentina,
Spain,
Russia, India,
and China.
5. Achievement Versus Ascription (How People View Status)
Dimension Characteristics Strategies Typical Cultures
Achievement People believe that you
are what you do, and
they base your
worthaccordingly.
These cultures
value performance, no
matter who you are.
 Reward and recognize
goodperformance
appropriately.
 Use titles only when relevant.
 Be a good role model.
The U.S.,
Canada, Australia,
and Scandinavia
Ascription People believe that you
should be valued for who
you are.
Power, title and
position matter in these
cultures, and these roles
define people’s behavior.
 Use titles, especially when
they clarifypeople’s status in
an organization.
 Show respect to those in
authority,particularly when
challenging decisions.
 Don’t “show up” people in
authority.
France, Italy,
Japan, and
Saudi Arabia.
6. Sequential Time Versus Synchronous Time (How People Manage Time)
Dimension Characteristics Strategies Typical
Cultures
Sequential
Time
People like events to
happen in logical order.
They place a high value on
punctuality, planning (and
sticking to your plans), and
staying on schedule.
Inthis type of culture, “time
ismoney,” and people don’t
appreciate it when
theirschedule is thrown off.
 Focus on a few activities or
projects ata time.
 Be punctual.
 Set clear deadlines, and stick
to them.
Germany, the
U.K.
and the U.S.
Synchronous
Time
People see the past,
present and future as
interwoven periods.
Theyoften work on several
projects at once, and view
plans and commitments
as moveable.
 Be flexible in how you
approach work, andallow
others to do the same.
 Highlight the importance of
punctualityand deadlines if
these are key tomeeting
objectives.
Japan,
Argentina
and Mexico.
7. Internal Direction Versus Outer Direction (How People Relate to Their Environment)
Dimension Characteristics Strategies Typical Cultures
Internal
Direction
People believe that
they can control
theirenvironment to
achieve
their goals.
This includes
how they work with
teamsand within
organizations.
 Allow others to develop their skills
and takecontrol of their learning.
 Set clear objectives that people
agree with.
 Be open about disagreements,
and allowpeople to engage in
constructive conflict.
Israel, the U.S.,
Australia, New
Zealand, and
the U.K.
Outer
Direction
People believe that
nature,or their
environment,controls
them.
At work and
in relationships, they
focustheir actions on
others,and they avoid
conflictwhere possible.
 Provide people with the support
andresources to do their jobs
effectively.
 Give them direction and regular
 feedback, so that they know the
results oftheir actions.
 Reassure people that they’re
doing agood job.
 Manage conflict quickly and
quietly.
 Do whatever you can to
boostpeople’s confidence.
 Encourage others to take
responsibility fortheir work.
China, Russia
and
Saudi Arabia.
MOTIVATION ACROSS CULTURES
The Nature of Motivation
 Motivation
A psychological process through which unsatisfied wants or needs lead to drives that are
aimed at goals or incentives.
The Basic Motivation Process
 Unsatisfied need
 Drive toward goal to satisfy need
 Attainment of goal (need satisfaction)
The Universalist Assumption
 The first assumption is that the motivation process is universal, that all people are
motivated to pursue goals they
 The process is universal
 Culture influences the specific content and goals pursued
 Motivation differs across cultures
THE HIERARCHY-OF-NEEDS THEORY
The Maslow Theory
 Maslow’s theory rests on a number of basic assumptions:
 Lower-level needs must be satisfied before higher-level needs become motivators
 A need that is satisfied no longer serves as a motivator
 There are more ways to satisfy higher-level than there are ways to satisfy lower-
level needs
Maslow’s Need Hierarchy
Physiological Needs: Basic physical needs for water, food, clothing, and shelter.
Safety Needs: Desires for security, stability, and the absence of pain
Social Needs: Desires to interact and affiliate with others and to feel wanted by others.
Esteem Needs: Needs for power and status.
Self-Actualization Needs: Desires to reach one’s full potential, to become everything one is
capable of becoming as a human being.
International Findings on Maslow’s Theory
 Some researchers have suggested modifying Maslow’s “Western-oriented” hierarchy by
re-ranking the needs
 Asian cultures emphasize the needs of society
 Chinese hierarchy of needs might have four levels ranked from lowest to highest:
 Belonging (social)
 Physiological
 Safety
 Self-actualization (in the service of society)
THE TWO-FACTOR THEORY OF MOTIVATION
The Herzberg Theory
Two-Factor Theory of Motivation
A theory that identifies two sets of factors that influence job satisfaction:
 Motivators
Job-content factors such as achievement, recognition, responsibility, advancement, and the
work itself
 Hygiene Factors
Job-context variables such as salary, interpersonal relations, technical supervision,
working conditions, and company policies and administration
 The two-factor theory holds that motivators and hygiene factors relate to employee
satisfaction – a more complex relationship than the traditional view that employees are
either satisfied or dissatisfied
 If hygiene factors are not taken care of or are deficient there will be dissatisfaction
 There may be no dissatisfaction if hygiene factors are taken care of – there may be
no satisfaction also
 Only when motivators are present will there be satisfaction
 Hygiene factors help to prevent dissatisfaction – thus the term hygiene as it is used in
the health field
 Only motivators lead to satisfaction
 Efforts to motivate human resources must provide:
 Recognition
 A chance to achieve and grow
 Advancement
 Interesting work
International Findings on Herzberg’s Theory
 A number of research efforts have been undertaken to replicate the two-factor theory –
they tend to support Herzberg’s findings
 George Hines surveyed of 218 middle managers and 196 salaried employees in New
Zealand using ratings of 12 job factors and overall job satisfaction – he concluded
“the Herzberg model appears to have validity across occupational levels”
 A similar study was conducted among 178 Greek managers – this study found that
overall Herzberg’s two-factor theory of job satisfaction generally held true
ACHIEVEMENT MOTIVATION THEORY
The Background of Achievement Motivation Theory
Characteristic profile of high achievers:
 They like situations in which they take personal responsibility for finding solutions to
problems.
 Tend to be moderate risk-takers rather than high or low risk-takers.
 Want concrete feedback on their performance.
 Often tend to be loners, and not team players.
Ways to develop high-achievement needs:
 Obtain feedback on performance and use the information to channel efforts into areas
where success will likely be attained
 Emulate people who have been successful achievers;
 Develop an internal desire for success and challenges
 Daydream in positive terms by picturing oneself as successful in the pursuit of important
objectives
International Findings on Achievement Motivation Theory
 Achievement motivation theory must be modified to meet the specific needs of the
local culture:
 The culture of many countries does not support high achievement
 Anglo cultures and those that reward entrepreneurial effort do support
achievement motivation and their human resources should probably be
managed accordingly
SELECT THEORIES
Equity Theory
 When people perceive they are being treated equitably it will have a positive effect on
their job satisfaction
 If they believe they are not being treated fairly (especially in relation to relevant others)
they will be dissatisfied which will have a negative effect on their job performance and
they will strive to restore equity.
 Employees in Asia and the Middle East often readily accept inequitable
treatment in order to preserve group harmony
 Men and women in Japan and Korea (and Latin America) typically receive
different pay for doing the same work – due to years of cultural conditioning
women may not feel they are treated inequitably.
 International findings on equity theory
 Israeli kibbutz production unit, everyone treated same but managers reported
lower satisfaction levels than workers
 Managers perceived contributions greater than other groups in kibbutz and felt
under-compensated for value and effort.
 Employees in Asia and Middle East often readily accept inequitable treatment in
order to preserve group harmony
 Japanese men and women (and in Latin America) typically receive different pay
for doing same work; due to years of cultural conditioning women may not feel
treated inequitably.
Goal-Setting Theory
 A process theory that focuses on how individuals go about setting goals and responding
to them and the overall impact of this process on motivation
 Specific areas that are given attention in goal-setting theory include:
 The level of participation in setting goals
 Goal difficulty
 Goal specificity
 The importance of objective
 Timely feedback to progress toward goals
 Unlike many theories of motivation, goal setting has been continually refined and
developed
 There is considerable research evidence showing that employees perform
extremely well when they are assigned specific and challenging goals that they
have had a hand in setting
 Most of these studies have been conducted in the United States – few have been
carried out in other cultures
 Norwegian employees shunned participation and preferred to have their union
representatives work with management in determining work goals
 Researchers concluded that individual participation in goal setting was seen as
inconsistent with the prevailing Norwegian philosophy of participation through union
representatives
 In the United States employee participation in setting goals is motivational – it had no
value for the Norwegian employees in this study
Expectancy Theory
A process theory that postulates that motivation is influenced by a person’s belief that
 Effort will lead to performance
 Performance will lead to specific outcomes, and
 The outcomes will be of value to the individual.
MOTIVATION APPLIED (JOB DESIGN, WORK CENTRALITY, AND REWARDS)
Job Design
 Quality of work life (QWL) is not the same throughout the world.
 Assembly-line employees in Japan work at a rapid pace for hours and have very little
control over their work activities
 Assembly-line employees in Sweden work at a more relaxed pace and have a great
deal of control over their work activities
 U.S. assembly-line employees typically work somewhere between – at a pace less
demanding than Japan’s but more structured than Sweden’s
 QWL may be directly related to the culture of the country.
Work Centrality
 The importance of work in an individual’s life can provide important insights into how to
motivate human resources in different cultures
 Japan has the highest level of work centrality
 Israel has moderately high levels
 The United States and Belgium have average levels
 The Netherlands and Germany have moderately low levels
 Britain has low levels
 In recent years, the number of hours worked annually by German workers has been
declining, while the number for Americans has been on the rise.
 Germans place high value on lifestyle and often prefer leisure to work, while their
American counterparts are just the opposite.
 Research reveals culture may have little to do with it
 A wider range of wages (large pay disparity) within American companies than in
German firms creates incentives for American employees to work harder.
 Impact of overwork on the physical condition of Japanese workers
 One-third of the working-age population suffers from chronic fatigue
 The Japanese prime minister’s office found a majority of those surveyed complained
of
o Being chronically tired
o Feeling emotionally stressed
o Abusive conditions in the workplace
 Karoshi (“overwork” or “job burnout”) is now recognized as a real social problem
Reward Systems
 Managers everywhere use rewards to motivate their personnel
 Some rewards are financial in nature such as salary raises, bonuses, and stock
options
 Others are non-financial such as feedback and recognition
 Significant differences exist between reward systems that work best in one country and
those that are most effective in another
Incentives and Culture
 Use of financial incentives to motivate employees is very common
 Countries with high individualism
 When companies attempt to link compensation to performance
 Financial incentive systems vary in range
 Individual incentive-based pay systems in which workers are paid directly for their
output
 Systems in which employees earn individual bonuses based on organizational
performance goals
 Many cultures base compensation on group membership
 Such systems stress equality rather than individual incentive plans
 An individually based bonus systemfor the sales representatives in an American
MNC introduced in its Danish subsidiary was rejected by the sales force because
o It favored one group over another
o Employees felt that everyone should receive the same size bonus
 Indonesian oil workers rejected a pay-for-performance systemwhere some work
teams would make more money than others
 French and Italian employees valued job security highly while American and British
workers held it of little importance
 Scandinavian workers placed high value on concern for others on the job and for
personal freedom and autonomy but did not rate “getting ahead” very important
 German workers ranked security, fringe benefits, and “getting ahead” as very important
 Japanese employees put good working conditions and a congenial work environment
high on their list but ranked personal advancement quite low
 The types of incentives that are deemed important appear to be culturally influenced
 Culture can even affect the overall cost of an incentive system
 Japanese efforts to introduce Western-style merit pay systems typically lead to an
increase in overall labor costs
 Companies fear that reducing the pay of less productive workers’ may cause them to
lose face and disturb group harmony
 Hence, everyone’s salary increases as a result of merit pay systems
CROSS CULTURAL MANAGEMENT
What is Cross-Cultural Management?
CCMis a fairly new field that is based on theories and research from:
• Cross Cultural Psychology
• International Business
• Organizational Behaviour
• Human Resources
• Anthropology
Goals for Cross-Cultural Management
Cross Cultural Management seeks to
• understand how national cultures affect management practices
• identify the similarities and differences across cultures in various management practices
and organizational contexts
• increase effectiveness in global management
Leadership across cultures
Leadership often is credited for the success or failure of international operations. Note that like
the other topics discussed so far, effective leadership styles and practices in one culture is not
necessarily effective in other cultures.For example, the leadership approach used by effective
U.S.managers would not necessarily be the same as that employed in other parts of the world.
Even within the same country, effective leadership tends to be very situation specific;however,
also like the other areas studied in international management, certain leadership styles and
practices transcend international boundaries.
A. leadership is the process of influencing people to direct their efforts towards the
achievement of some particular goal.
B. leadership behavior and styles:
(1) authoritarian.
(2) paternalistic.
(3) participative.
Authoritarian leadership is the use of work-centered behavior that is designed to ensure task
accomplishment. this leader behavior typically involves the use of one-way communication
from manager to subordinate. The focus of attention usually is on work progress, work
procedures, and roadblocks that are preventing goal attainment. Although this leadership style
often is effective in handling crises, some leaders employ it as their primary style regardless of
the situation.
Paternalistic leadership uses work-centered behavior coupled with a protective employee
centered concern. This leadership style can be best summarized by the statement “Work hard
and the company will take care of you.” Paternalistic leaders expect everyone to work hard; in
return, the employees are guaranteed employment and given security benefits.
Participative leadership is the use of both work-centered and people-centered approaches.
Participative leaders typically encourage their people to play an active role in assuming control
of their work, and authority usually is highly decentralized.
LEADERSHIP ACROSS DIFFERENT CULTURE
The ear of the leader must ring with the voices of the people.” Woodrow Wilson with the march
of globalization and internationalization growing louder and stronger, few successful businesses
can now escape the need to work across cultures. Today’s leaders need to adapt at leading and
managing people of different cultures; they need to listen to the “voices of the people” as well
as understand what those voices may actually be telling them. This in essence is the crux of the
challenge; when people perceive the world, communicate and view their leaders in different
ways, the leader’s ears may be ringing with misunderstood messages. The leader will come
across cultural issues in many different guises. By way of illustrating the challenges of cross-
cultural leadership and for the sake of brevity this article will examine two interdependent
issues: the role of a leader and communication.
INTERCULTURAL MANAGEMENT
LEADERSHIP AMONG DIFFERENT COUNTRIES
“The art of communication is the language of leadership”
- James Humes
Today's businesses are complex entities. However, one fundamental principle of success
remains constant - the need for communication. Communication manifests in various forms,
both verbal and non-verbal. One area of increasing concern for businesses is how to nurture
and maintain effective intercultural communication between employees. As workforces
become increasingly multicultural and businesses continue to expand overseas, the
homogenous workforce has become a thing of the past. The cultural diversity of businesses
necessitates that internal communication now takes note of the intercultural element if it is to
be truly effective. Management today have to ensure that they are understanding and being
understood across cultural boundaries. The following ten tips on intercultural management are
meant to provide a starting point to managers dealing with culturally diverse teams.
UNDERSTANDING MAJOR DIFFERENCES IN
CROSS-CULTURAL COMMUNICATION
“…the single greatest barrier to business success is the one erected by culture."
- Edward T. Hall and Mildred Reed Hall
CROSS CULTURAL BUSINESS BLUNDERS
These are some examples of how cultural ignorance can and does lead to negative (and much
of the time humorous) consequences. The following cultural blunders are presented in order
illustrate to people how crucial cultural awareness is in international business today.
1. Managers at one American company were startled when they discovered that the brand
name of the cooking oil they were marketing in a Latin American country translated into
Spanish as "Jackass Oil."
2. American Motors tried to market its new car, the Matador, based on the image of
courage and strength. However, in Puerto Rico the name means "killer" and was not
popular on the hazardous roads in the country.
3. A US telephone company tried to market its products and services to Latinos by showing
a commercial in which a Latino wife tells her husband to call a friend, telling her they
would be late for dinner. The commercial bombed since Latino women do not order
their husbands around and their use of time would not require a call about lateness.
4. A cologne for men pictured a pastoral scene with a man and his dog. It failed in Islamic
countries dogs are considered unclean.
5. Proctor & Gamble used a television commercial in Japan that was popular in Europe.
The ad showed a woman bathing, her husband entering the bathroom and touching her.
The Japanese considered this ad an invasion of privacy, inappropriate behavior, and in
very poor taste.
6. An American business person refused an offer of a cup of coffee from a Saudi
businessman. Such a rejection is considered very rude and the business negotiations
became stalled.
7. A Japanese manager in an American company was told to give critical feedback to a
subordinate during a performance evaluation. Japanese use high context language and
are uncomfortable giving direct feedback. It took the manager five tries before he could
be direct enough to discuss the poor performance so that the American understood.
8. One company printed the "OK" finger sign on each page of its catalogue. In many parts
of Latin America that is considered an obscene gesture. Six months of work were lost
because they had to reprint all the catalogues.
CROSS CULTURAL WORKPLACE
RELIGION, CULTURE AND WORKPLACE
Many religions carry dress codes or guidelines on appearance and presentation. Khalsa Sikhs
wear five religious symbols known as the five K's. Two are not visible, but the 'Kara' (a steel
bangle worn on the wrist) and the 'Kesh' (uncut hair usually underneath a turban) are worn on
the outside. The 'Kirpan' (a decorative sword) does not necessarily have to
be visible. Muslim women are required to cover their bodies as a sign of modesty.
Interpretations of the Quran differ so you may see Muslim women wearing just a head covering
whereas others may only show their eyes. Muslim men on the whole do not have specific
restrictions on their dress although they are strongly encouraged to wear a beard. Again,
interpretations as to what constitutes a beard vary…
CULTURE IN GLOBAL TEAMS
At this moment in time, the increase in cross border human traffic has meant that companies
are no longer dealing with a homogenous native community from which they recruit their staff.
Companies are now facing cross cultural challenges in how they recruit, manage and develop a
multi-cultural staff. One area of note where HR and management are finding difficulties is in the
interview room. With companies recruiting from a pool of candidates from different
nationalities, cultures and faiths the cross cultural interview is an area that must be analyzed
properly if recruiters wish to capitalize on the potential available to them. This is necessary to
ensure that candidates in cross cultural interviews are not discriminated against through
misperceptions and poor judgments…
CROSS CULTURAL INTERVIEWS
At this moment in time, the increase in cross border human traffic has meant that companies
are no longer dealing with a homogenous native community from which they recruit their staff.
Companies are now facing cross cultural challenges in how they recruit, manage and develop a
multi-cultural staff. One area of note where HR and management are finding difficulties is in the
interview room. With companies recruiting from a pool of candidates from different
nationalities, cultures and faiths the cross cultural interview is an area that must be analyzed
properly if recruiters wish to capitalize on the potential available to them. This is necessary to
ensure that candidates in cross cultural interviews are not discriminated against through
misperceptions and poor judgments…
STAGES OF CULTURE SHOCK
'Culture shock' is used to describe the emotional rollercoaster that someone experiences when
living in a new country. Anyone that has worked and lived in a foreign country will experience
culture shock of some sort. Culture shock affects anyone from business personnel and their
families, to EFL teachers to sports stars. Recognizing culture shock is an important way of being
able to deal with it. Dealing with it helps minimize the risk of becoming disillusioned with a new
country and the possibility of deciding that a quick return 'home' is the only solution. Experts
agree that culture shock has stages and all agree that once people get beyond the initial and
most difficult stages, life in a new country becomes a lot better. Outlined below is an example
of the stages people go through with culture shock:
Stage 1 - Excitement
The individual experiences a holiday or 'honeymoon' period with their new surroundings.
They:
very positive about the culture
Are overwhelmed with impressions
Find the new culture exotic and are fascinated
Are passive, meaning they have little experience of the culture
Stage 2 - Withdrawal
The individual now has some more face to face experience of the culture and starts to find
things different, strange and frustrating.
They:
Find the behavior of the people unusual and unpredictable
Begin to dislike the culture and react negatively to the behavior
Feel anxious
Start to withdraw
Begin to criticize, mock or show animosity to the people
Stage 3 - Adjustment
The individual now has a routine, feels more settled and is more confident in dealing with the
new culture.
They:
Understand and accept the behavior of the people
Feel less isolated
Regains their sense of humor
Stage 4 - Enthusiasm
The individual now feels 'at home'.
They:
Enjoy being in the culture
Functions well in the culture
Prefer certain cultural traits of the new culture rather than their own
Adopt certain behaviors from the new culture
MULTICULTURAL TEAMS – WORK VALUES
Multicultural team is defined as a group of people from different cultures, with a joint
deliverable. To enable high performance in international organizations, teams must first
overcome the barriers inherent in the cultural differences problems of communication, value
incongruence, and other such obstacles.
ADVANTAGES OF MULTICULTURAL TEAMS
1) Multicultural organizations have an advantage in attracting and retaining the best
available human talent. The exceptional capabilities of women and minorities
offer a rich labor pool for organizations to tap. When organizations attract, retain
and promote maximum utilization of people from diverse cultural backgrounds,
they gain competitive advantage and sustain the highest quality of human
resources. for example, The diverse organization has a better understanding of
foreign employees.
2) Multicultural organizations can understand and penetrate wider and enhanced
markets. Not only does the multicultural organization embrace a diverse work
force internally, it is better suited to serve a diverse external clientele. The
diverse organization has an increased understanding of the political, social, legal,
economic and cultural environment of foreign countries.
3) A multicultural organization displays higher creativity and innovation. Especially
in research-oriented and high technology organizations, the array of talents
provided by a gender-and ethnic-diverse organization becomes invaluable.
4) Multicultural organizations display a better problem solving ability. Researchers
show the culturally diverse organization to exhibit expanded meanings, multiple
perspectives and multiple interpretations. A multicultural organization is more
capable of avoiding the consequences of “group think”.
5) Multicultural organizations are better able to adapt to change and exhibit more
organizational flexibility. For example, women have a higher tolerance for
ambiguity than men while bilinguals have a higher level of divergent thinking and
cognitive flexibility than monolinguals.
MULTICULTURAL TEAM PERFORMANCE
A number of conditions and initiatives are conducive to good multicultural team performance
• Adherence of defined procedures
• Clearly communication procedure
• Development of effective people selection
• Ability to deal with cross cultural integration
• Collective work plan
FOUR CHALLENGES
The following cultural differences can cause destructive conflicts in a team:
1) Direct versus indirect communication:
Some team members use direct, explicit communication while others are indirect, for example,
asking questions instead of pointing out problems with a project. When members see such
differences as violations of their culture’s communication norms, relationships can suffer
2) Trouble with accents and fluency:
Members who aren’t fluent in the team’s dominant language may have difficulty
communicating their knowledge. This can prevent the team from using their expertise and
create frustration or perceptions of incompetence.
3) Differing attitudes toward hierarchy:
Team members from hierarchical cultures expect to be treated differently according to their
status in the organization. Members from egalitarian cultures do not. Failure of some members
to honor those expectations can cause humiliation or loss of stature and credibility.
4) Conflicting decision-making norms:
Members vary in how quickly they make decisions and in how much analysis they require
before hand. Someone who prefers making decisions quickly may grow frustrated with those
who need more time.
FOUR STRATEGIES
Strategies for dealing with these challenges:
Adaptation:
Adaptation is the ideal strategy because the team works effectively to solve its own problem
with minimal input from management—and, most important, learns from the experience.
Structural intervention:
A structural intervention is a deliberate reorganization or reassignment designed to reduce
interpersonal friction or to remove a source of conflict for one or more groups. This approach
can be extremely effective when obvious subgroups demarcate the team (for example,
headquarters versus national subsidiaries) or if team members are proud, defensive,
threatened, or clinging to negative stereotypes of one another.
Managerial intervention:
When a manager behaves like an arbitrator or a judge, making a final decision without team
involvement, neither the manager nor the team gains much insight into why the team has
stalemated. But it is possible for team members to use managerial intervention effectively to
sort out problems.
Exit:
Possibly because many of the teams we studied were project based, we found that leaving the
team was an infrequent strategy for managing challenges. In short-term situations, unhappy
team members often just waited out the project. When teams were permanent, producing
products or services, the exit of one or more members was a strategy of last resort, but it was
used—either voluntarily or after a formal request from management. Exit was likely when
emotions were running high and too much face had been lost on both sides to salvage the
situation.
Culture Map:
It is made up of eight scales representing the management behaviors where cultural gaps are
most common. By comparing the relative position of one nationality to another on each scale,
the user can de-code how culture influences day-to-day collaboration
The scales and their metrics are:
Communicating: In low-context cultures, good communication is precise, simple, explicit and
clear. Messages are understood at face value. Repetition is appreciated for purposes of
clarification, as in putting messages in writing. In high-context cultures, communication is
sophisticated, nuanced and layered. Messages are often implied but not plainly stated. Less is
put in writing, more is left open to interpretation, and understanding may depend on reading
between the lines.
Evaluating: All cultures believe criticism should be given constructively, but the definition of
‘constructive’ varies greatly. This scale measures a preference for frank versus diplomatic
negative feedback. Evaluating is often confused with communicating, but many countries have
different positions on the two scales.
Persuading: The ways in which you persuade others and the kinds of arguments you find
convincing are deeply rooted in your culture’s philosophical, religious, and educational
assumptions and attitudes. The traditional way to compare countries along this scale is to
assess how they balance holistic and specific thought patterns.
Leading: This dimension measures the degree of respect and deference shown to authority
figures, placing countries on a spectrum from egalitarian to hierarchical.
Deciding: This dimension measures the degree to which a culture is consensus-minded. We
often assume that the most egalitarian cultures will also be the most democratic, while the
most hierarchical ones will allow the boss to make unilateral decisions.
Trusting:Cognitive trust (from the head) can be contrasted with affective trust (from the heart).
In task-based cultures, trust is built cognitively through work. If we collaborate well, prove
ourselves reliable, and respect each other’s contributions, we come to trust each other. In a
relationship-based society, trust is a result of weaving a strong affective connection. If we
spend time laughing and relaxing together, get to know each other at a personal level, and feel
a mutual liking, we will trust each other.
Disagreeing: Different cultures have very different ideas about how productive confrontation is
for a team or organization. This scale measures tolerance for open disagreement and views on
whether it is likely to improve or destroy collegial relationships.
Scheduling:All businesses follow agendas and timetables, but in some cultures people strictly
adhere to the schedule, while in others people treat it as a suggestion. This scale assesses how
much value is placed on operating in a structured, linear fashion versus being flexible and
reactive.
WORK VALUES
Definition:
Work values are the subset of your beliefs and ideas that are related to your occupation or job.
Work values is Job satisfaction comes from having a job that meets your needs and fits your
goals.
Aspects of Work Values:
 Achievement: doing work that yields results
 Independence: working and making decisions on your own
 Recognition: receiving attention for your work
 Relationships: working alongside coworkers as well as helping others
 Support: having supportive management
 Working Conditions: being in an environment that has good conditions
 Autonomy: receiving little or no supervision
 Helping Others: providing assistance to individuals or groups
 Prestige: having high standing
 Job Security: a high probability that one will remain employed
 Collaboration: working with others
 Helping Society: contributing to the betterment of the world
 Compensation: receiving adequate pay
 Utilizing Your Skills and Background: using your education and work experience to do
your job
 Leadership: supervising/managing others
 Creativity: using your own ideas
 Variety: doing different activities
 Challenge: performing tasks that are difficult or new to you
 Leisure: having adequate time away from work
 Recognition: receiving credit for achievements
 Artistic Expression: expressing one's artistic talents
 Influence: having the ability to affect people's opinions and ideas
The Relationship between Language and Culture
It is generally agreed that language and culture are closely related. Language can be viewed as a
verbal expression of culture. It is used to maintain and convey culture and cultural ties.
Language provides us with many of the categories we use for expression of our thoughts, so it is
therefore natural to assume that our thinking is influenced by the language which we use. The
values and customs in the country we grow up in shape the way in which we think to a certain
extent.
Cultures hiding in languages, examines the link between Japanese language and culture. An
Insight into Korean Culture through the Korean Language discusses how Korean culture
influences the language.
Languages spoken in Ireland, focuses on the status of the Irish language nowadays and how it
has changed over time. In our big world every minute is a lesson looks at intercultural
communication and examines how it can affect interactions between people from countries
and backgrounds.
Communicating Across Cultures
Communicating across cultures is challenging. Each culture has set rules that its members take
for granted. Few of us are aware of our own cultural biases because cultural imprinting is begun
at a very early age. And while some of a culture's knowledge, rules, beliefs, values, phobias, and
anxieties are taught explicitly, most of the information is absorbed subconsciously.
The challenge for multinational communication has never been greater. Worldwide business
organizations have discovered that intercultural communication is a subject of importance—not
just because of increased globalization, but also because their domestic workforce is growing
more and more diverse, ethnically and culturally.
We are all individuals, and no two-people belonging to the same culture are guaranteed to
respond in exactly the same way. However, generalizations are valid to the extent that they
provide clues on what you will most likely encounter when dealing with members of a
particular culture.
High-Context vs. Low-Context
All international communication is influenced by cultural differences. Even the choice of
communication medium can have cultural overtones. The determining factor may not be the
degree of industrialization, but rather whether the country falls into a high-context or low-
context culture.High-context cultures (Mediterranean, Slav, Central European, Latin American,
African, Arab, Asian,American-Indian) leave much of the message unspecified, to beunderstood
through context, nonverbalcues, and between-the-lines interpretation of what is actually said.
By contrast, low-context cultures (most Germanic and English-speaking countries) expect
messages to be explicit and specific.
Sequential vs. Synchronic
Some cultures think of time sequentially, as a linear commodity to "spend," "save," or "waste."
Other cultures view time synchronically, as a constant flow to be experienced in the moment,
and as a force that cannot be contained or controlled.
In sequential cultures (like North American, English, German, Swedish, and Dutch),
businesspeople give full attention to one agenda item after another.
In synchronic cultures (including South America, southern Europe and Asia) the flow of time is
viewed as a sort of circle, with the past, present, and future all interrelated. This viewpoint
influences how organizations in those cultures approach deadlines, strategic thinking,
investments, developing talent from within, and the concept of "long-term" planning.
Orientation to the past, present, and future is another aspect of time in which cultures differ.
Americans believe that the individual can influence the future by personal effort, but since
there are too many variables in the distant future, we favor a short-term view. Synchronistic
cultures’ context is to understand the present and prepare for the future. Any important
relationship is a durable bond that goes back and forward in time, and it is often viewed as
grossly disloyal not to favor friends and relatives in business dealings.
Affective vs. Neutral
In international business practices, reason and emotion both play a role. Which of these
dominates depends upon whether we are affective (readily showing emotions) or emotionally
neutral in our approach. Members of neutral cultures do not telegraph their feelings, but keep
them carefully controlled and subdued. In cultures with high affect, people show their feelings
plainly by laughing, smiling, grimacing, scowling, and sometimes crying, shouting, or walking
out of the room.
This doesn't mean that people in neutral cultures are cold or unfeeling, but in the course of
normal business activities, neutral cultures are more careful to monitor the amount of emotion
they display. Emotional reactions were found to be least acceptable in Japan, Indonesia, the
U.K., Norway, and the Netherlands and most accepted in Italy, France, the U.S., and Singapore.
Reason and emotion are part of all human communication. When expressing ourselves, we look
to others for confirmation of our ideas and feelings. If our approach is highly emotional, we are
seeking a direct emotional response: "I feel the same way." If our approach is highly neutral, we
want an indirect response: "I agree with your thoughts on this."
It's easy for people from neutral cultures to sympathize with the Dutch manager and his
frustration over trying to reason with "that excitable Italian." After all, an idea either works or it
doesn't work, and the way to test the validity of an idea is through trial and observation. That
just makes sense—doesn't it? Well, not necessarily to the Italian who felt the issue was deeply
personal and who viewed any "rational argument" as totally irrelevant!
When it comes to communication, what's proper and correct in one culture may be ineffective
or even offensive in another. In reality, no culture is right or wrong, better or worse—just
different.
In today's global business community, there is no single best approach to communicating with
one another. The key to cross-cultural success is to develop an understanding of, and a deep
respect for, the differences.
Intercultural communication
Language difficulties can result in miscommunication between people of different cultural
backgrounds, but competence in English does not guarantee good communication.
Miscommunication often results from personal or cultural misunderstandings.
Careers teachers benefit by considering the personal or cultural bases for misunderstandings
and their responsibility to minimize these. Knowledge about culture and intercultural
communication skills will assist careers teachers in their work with students from diverse
cultural backgrounds.
Verbal communication
Interpretations of verbal communication can be culturally based. Misunderstandings can easily
arise. For example, in some cultures:
 It is impolite to speak without being specifically asked by a superior, thus some students
will not say hello, will not volunteer answers and will not answer generally directed
questions.
 It is not appropriate to refuse a request, thus saying ‘yes’ may mean ‘I am listening’, or
‘maybe’, or ‘no’. Avoidance behavior rather than contradiction is used i.e. not doing
what is requested is the polite response, as opposed to saying directly ‘no’.
 Direct confrontation is to be avoided. It is more important to maintain the relationship,
then to find an answer to an immediate disputed issue or problem. This contrasts with
the Anglo-Australian approach of trying to resolve issues by frank and open discussion
of the disputed issue, clearly stating personal needs and preferences and direct
bargaining tactics focusing on an immediate solution.
 Asking questions when you already know the answer, which is a common teaching
technique in Australia, can indicate a lack of intelligence in some cultures.
Nonverbal communication
Non-verbal communication can be more important than speech for reflecting emotion, mood
and motivation. Non-verbal cues will vary significantly across cultures:
 Direct eye contact is used to show attentive listening and respect, however direct eye
contact is impolite in some cultures.
 Student’s smiles are interpreted as a sign of happiness, comfort or pleasure, when
actually they are smiling because they are uncomfortable or embarrassed.
 Encouraging a warm and friendly classroomatmosphere by teachers sitting on tables, or
kneeling on the floor beside student desks may not be appropriate.
Some simple actions are open to misinterpretation and can be insulting or embarrassing to
students:
 Kneeling at a student’s desk with the teacher’s head lower than the students
 Distance between teacher and students during conversations being too close
 Expecting students to greet teachers without teachers speaking first (unsolicited
indications of presence are disrespectful on many cultures)
 Touching a student’s head (most holy part of the body in some cultures)
 Pointing the feet (least holy part of the body in some cultures)
 Signaling students to approach by crooking index finger (a gesture applied to dogs in
South East Asia)
 Pointing to a student or blackboard with a straight index finger
 Students not sitting while adults stand (sitting is a sign of respect)
It may not be possible to address all these issues for all groups, particularly as some of them
conflict. Careers practitioners need to be aware of the potential for miscommunication and
create bridges to reduce miscommunication and improve effectiveness.

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cultural diversity and multicultural teamwork

  • 1. Unit V - Cultural Diversity and Multicultural Teamwork Definition of Culture Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, ritual,beliefs, attitude, behavior, food, marriage, cuisine, social habits, music, arts, what we wear, how we wear it, what we believe is right or wrong, how we sit at the table, how we greet visitors, how we behave with loved ones and a million other things. Culture is the social behavior and norms & values found in the human societies. Culture is a pattern of responses discovered, developed, or invented during the group’s history of handling problems which arise from interactions among its members, and between them and their environment. These responses are considered the correct way to perceive, feel, think and act, and are passed on to the new members through immersion and teaching. In short culture means the entire way of life of people and everything learned and shared by people in society. Types of Culture A culture has four aspects or four types: 1. Ideal Culture 2. Real Culture 3. Material Culture 4. Non-material Culture Ideal Culture – The culture which is presented as a pattern or precedent to the people is called ideal culture. It is the goal of the society. It can never be achieved fully because some part of it remains out of practice. It refers to the values, norms, and beliefs that a society desires to achieve. It consists of those ideals that people would like to attain as a society. Real Culture – We act upon on culture in our social life is real, its part which people adopt in their social life is their real one. The whole one is never real because a part of it remains without practice. It refers to the values, norms, and beliefs that are actually implemented by the society. Material Culture –Material culture refers to physical objects, resources, and spaces that people use to define their culture. These include homes, neighborhoods, cities, schools, churches, synagogues, temples, mosques, offices, factories and plants, tools, means of production, goods
  • 2. and products, stores etc. All of these physical aspectsof a culture help to define its member’s behaviors and perceptions. Non-material Culture – Non-material culture refers to the nonphysical ideas that people have about their culture, including beliefs, values, rules, norms, morals, symbols, language, organizations, and institutions. For instance, the non-material cultural concept of religion consists of a set of ideas and beliefs about God, worship, morals, and ethics. These beliefs, then, determine how the culture responds to its religious topics, issues, and events. Basic Elements of Culture 1. Social Organizations 2. Customs and Traditions 3. Languages 4. Arts and Literatures 5. Religion 6. Forms of Government 7. Economic Systems 8. Food and Clothing 9. Music and Dance Characteristics of Culture 1. Culture is learned 2. Culture is shared by group of people 3. Culture is cumulative 4. Cultures change 5. Culture is dynamic 6. Culture is ideational 7. Culture is diverse 8. Culture gives us a range of permissible behavior pattern Cultural Anthropology Anthropology is the study of various aspects of humans within past and present societies.
  • 3. Cultural anthropology is a branch of anthropology focused on the study of cultural variation among humans. It deals with human culture especially with respect to social structure, language, beliefs, practices, values, ideas, law, politics, economy, religion, art, and technology. A variety of methods are involved in cultural anthropology includes participant observation, interviews and surveys. It also uses the methods, concepts, and data of archaeology, ethnography and ethnology, folklore, and linguistics in its descriptions and analyses of the diverse people of the world. The rise of cultural anthropology took place within the context of the late 19th century, when questions regarding which cultures were “primitive” and which were “civilized’’ occupied the minds of Marx and Freud and many others. Cultural Anthropology and International Business Today, most of the business affairs involve more nations-states and governments. The globalization, migratory movements and close interdependence among governments, industries and communities across the geographical and political boundaries have made the business multidimensional and complex. This is the intercultural dimension. More than one language, religion, ethnicity and culture are involved in today’s affairs. Therefore, businesses must combine interdisciplinary thinking with the intercultural approach in order to create common comprehensive operational ground and insure smooth functioning and better output. The current pace of globalization, interdependence, technical innovation and competition is forcing the business leaders to rethink constantly their strategies and long-established business thinking and practices. Today’s business dealings are across the political and cultural frontiers. The human components (from suppliers to customers) and material components (from raw materials, manufacturing plants to after-sale service apparatus) are international and multicultural. Today’s businesses involve materials, skills and resources from more than one country and social system. They also reflect more than one organizational culture. So, ignorance of cultural differences is not just unfortunate, it turns to be bad business. The risk of error and misunderstanding about the social systemand cultural environment is quite high, because they are quite intangible and very difficult to quantify, grasp and communicate. The grasp of cultural environment is essential in international business. The new business thinking emphasizes in the cultural awareness and intercultural skills. Hence, Cultural Anthropology can be helpful in two ways in this this regard:
  • 4. 1. They can directly help the business organizations in their international and intercultural dealings. 2. They can contribute significantly in the business studies and training programs designed for business operators. Nature of Culture When studying cultures throughout the world, we will analyze various cultures by distinguishing between: 1. cultural traits and 2. cultural items. Cultural traits – The smallest unit of culture is called cultural traits, it is a learned systemof beliefs, values, traditions, symbols and meanings that are passed from one generation to another within a specific community of people. It is nonmaterial in nature. Language, custom, dress, dress music, food and technology are cultural traits. Cultural items –These are material culture trait, objects made by humans which can be seen handled and used. The Christian cross, the swastika, good-luck horseshoes, signs of zodiac are cultural items. Layers of Culture We like to compare culture with an onion. Culture, like an onion, consists of layers which can be peeled off. In culture, we can distinguish three layers: 1. Artifacts 2. Norms and Values 3. Assumptions Artifacts – The outer layer is what people primarily associate with culture: the visual reality of behavior, clothes, food, language, housing, etc. This is the level of explicit culture. Norms and Values – The middle layer refers to the norms and values which a community holds: what is considered right and wrong (norms) or good and bad (values). Norms are often external and reinforced by social control. Values tend to be more internal than norms. Values and norms structure the way people in a particular culture behave. But they are not visible, despite their influence on what happens at the observable surface. Assumption – The inner layer is the deepest: the layer of implicit culture. Understanding the core of the culture is the key to successfully working with other cultures. The core consists of basic assumptions, series of rules and methods to deal with the regular problems that it faces.
  • 5. Cultural Predispositions A key dilemma for international firms is the degree to which they promote or even impose a common, standardized corporate culture across the organization. Most of the firms try to steer a middle line, standardizing some elements across the whole organization to centralize and simplify some practices and unify employees, while allowing differentiation where necessary. This transnational culture allows for a compromise in work styles, values, and approaches, harnessing the strengths that lie in diversity. Broadly MNCs follows four distinct predispositions towards doing things in a particular way: 1. Ethnocentric Predisposition 2. Polycentric Predisposition 3. Regio-centric Predisposition 4. Geocentric Predisposition EthnocentricPredisposition – Ethnocentric firms are where top management is dominated by home-country nationals, and procedures and management styles are transferred from the head office and imposed on regional subsidiaries in place of local ways of doing things. Polycentric Predisposition – Polycentric firms tend to act like a federation of semi-autonomous organizations with financial controls or strict reporting structures holding them together. Subsidiaries are able to reflect the local cultural norms, and headquarter appreciates the need for different organization designs, procedural norms, rewards systems etc. as long as profits flow to the center. Regio-centric Predisposition –Regio-centric firmstries to blend its own interests with those of its subsidiaries on a regional basis.
  • 6. Geocentric Predisposition –Geocentric firms are seen as the ideal, collaborative, and meritocratic form of global organization. An equal sharing of power and responsibility between headquarter and subsidiary; senior management promoted according to ability rather than nationality; subsidiaries that share worldwide objectives with managers focusing beyond national market interests.
  • 7. Cultural Dimensions The cultural dimensions represent independent preferences for one state of affairs over another that distinguish countries (rather than individuals) from each other. The country scores on the dimensions are relative, as we are all human and simultaneously we are all unique. In other words, culture can be only used meaningfully by comparison. Geert Hofstede and Cultural Dimensions Theory Geert Hofstede is a Dutch social psychologist and anthropologist who has studied the interactions between cultures. One of his most notable accomplishments is the establishment of the cultural dimensions’ theory, which provides a systematic framework for assessing the differences between nations and cultures. Hofstede gathered most of his data on world cultural values through surveys conducted by IBM, a US-based technology and consulting firm. He then proposed a scoring system using a scale from 1 to 120. The theory is based on the idea that value can be placed upon six cultural dimensions: 1. Power-Distance index 2. Individualism vs. Collectivism 3. Uncertainty-Avoidance index 4. Masculinity vs. Femininity 5. Long-term Orientation vs. Short-term Orientation 6. Indulgence vs. Restraint Power-Distance index: According to Hofstede, “power distance is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.” This dimension does not measure the level of power distribution in a given culture, but rather analyzes the way people feel about it. Low power- distance scores mean that a culture expects and accepts that power relations are democratic and members are viewed as equals. High power-distance scores mean that less powerful members of the society accept their place and realize the existence of formal hierarchical positions. Individualism vs. Collectivism: “The degree to which individuals are integrated into groups.” This dimension has no political connotation and refers to the group rather than the individual. Cultures that are individualistic place importance on attaining personal goals. In collectivist societies, the goals of the group and its wellbeing are valued over those of the individual. Uncertainty-Avoidance index: “A society’s tolerance for uncertainty and ambiguity.” This is a dimension that measures the way a society deals with unknown situations, unexpected events,
  • 8. and the stress of change. Cultures that score high on this index are less tolerant of change and tend to minimize the anxiety of the unknown by implementing rigid rules, regulations, and/or laws. Societies that score low on this index are more open to change and have fewer rules and laws and more loose guidelines. Masculinity vs. Femininity: “The distribution of emotional roles between the genders.” This dimension measures the level of importance a culture places on stereotypically masculine values such as assertiveness, ambition, power, and materialism as well as stereotypically feminine values such as an emphasis on human relationships. Cultures that are high on the masculinity scale generally have more prominent differences between genders and tend to be more competitive and ambitious. Those that score low on this dimension have fewer differences between genders and place a higher value on relationship building. Long-term Orientation vs. Short-term Orientation: This dimension describes a society’s time horizon. Short-term oriented cultures value traditional methods, take a considerable amount of time to build relationships, and in general view time as circular. This means the past and the present are interconnected and that which cannot be done today can be done tomorrow. The opposite of this is long-term orientation, which sees time as linear and looks to the future rather than the present or the past. It is goal-oriented and values rewards. Indulgence vs. Restraint: This dimension measures a culture’s ability to satisfy the immediate needs and personal desires of its members. Those that value restraint have strict social rules and norms under which satisfaction of drives is regulated and discouraged.
  • 9. Trompenaar’s Seven Dimensions of Culture FonsTrompenaar is a Dutch cultural theorist, specialized in cross-cultural communication and international management. Trompenaar has a rather long multicultural background. Trompenaar’s main work experience comes from the oil and gas company Shell, where he worked in various positions in nine different countries. In 1998 together with a British management philosopher Charles Hampden-Turner, he founded an Amsterdam-based consulting company THT Consulting. Since then, Trompenaar has worked with e.g. such big companies as ICI, Heineken, Mars, Motorola, General Motors, Nike and TRW. Trompenaar is best known for his cultural dimension theories, presented in his best-selling book “Riding the Waves of Culture: Understanding Cultural Diversity in Business” which he penned down along with Charles Hampden-Turner in 1998. To develop the model, they spent 10 years researching the preferences and values of people in various cultures around the world. As part of this, they surveyed more than 46,000 managers in 40 countries. They found that people from different cultures vary in specific, even predictable, ways. This is because each culture has its own way of thinking, its own values and beliefs, and its own preferences. Trompenaar and Hampden-Turner concluded that what distinguishes people from different cultures is where these preferences fall on the following seven dimensions: 1. Universalismversus particularism. 2. Individualism versus communitarianism. 3. Specific versus diffuse. 4. Neutral versus emotional. 5. Achievement versus ascription. 6. Sequential time versus synchronous time. 7. Internal direction versus outer direction.
  • 10. 1. Universalism Versus Particularism (Rules Versus Relationships) Dimension Characteristics Strategies Typical Cultures Universalism People place a high importance on laws, rules, values, and obligations. They try to deal fairly with people based on these guidelines, but rules come before relationships.  Help people understand how their work ties into their values and beliefs.  Provide clear instructions, processesand procedures.  Keep promises and be consistent.  Give people time to make decisions.  Use an objective process to make decisions, and explain your thinking if others areinvolved in the outcome. The U.S., Canada, the U.K, the Netherlands, Germany, Scandinavia, New Zealand, Australia, and Switzerland. Particularism People believe that their circumstances and relationships dictate the rules that they live by. Their response to a situation may change, basedon what’s happeningin the moment, andwho’s involved.  Give people autonomy.  Respect others’ needs when youmake decisions.  Be flexible in how you make decisions.  Take time to build relationships and get to know people so that you can understandtheir needs better.  Highlight important rules and policies thatothers must follow Russia, Latin America and China.
  • 11. 2. Individualism Versus Communitarianism (the Individual Versus the Group) Dimension Characteristics Strategies Typical Cultures Individualism People place a high People believe in personal freedom and achievement. They believe that they must maketheir own decisions, andthat they must take care of themselves.  Help people Praise and reward individual performance.  Give employees autonomy to make theirown decisions and to use their initiative.  Link people’s needs with those of the group or organization.  Allow them to be creative and to learn fromtheir mistakes. The U.S., Canada, the U.K, Scandinavia, New Zealand, Australia, and Switzerland. Communitarianism People believe that the group is more importantthan the person, and that it provides help and safetyin exchange for loyalty. The group always comesbefore the individual.  Praise and reward group performance.  Don’t praise individuals publicly.  Allow people to involve others indecision making.  Don’t show favoritism. Japan and countries in Latin America and Africa.
  • 12. 3. Specific Versus Diffuse (How far People get Involved) Dimension Characteristics Strategies Typical Cultures Specific People keep work and personal lives separate. As a result, they believe that relationships don’t have much of an impact on work objectives, and they believe that people can work together without getting along personally.  Be direct and to the point.  Focus on people’s objectives before youfocus on strengthening relationships.  Provide clear instructions, processesand procedures.  Allow people to keep their work and homelives separate. The U.S., the U.K., Switzerland, Germany, Scandinavia, and the Netherlands. Diffuse People see overlap between their work and personal life. They believe that good relationships are vital to meeting business objectives. People spend time outside work hours with colleagues and clients.  Focus on building a good relationshipwith people before you focus onbusiness objectives.  Find out as much as you can about thepeople who you work with and theorganizations that you do business with.  Be prepared to discuss business on socialoccasions, and to have personal discussionsat work.  Try to avoid turning down invitations tosocial functions. Argentina, Spain, Russia, India, and China.
  • 13. 4. Neutral Versus Emotional (How People Express Emotions) Dimension Characteristics Strategies Typical Cultures Neutral People make a great effort to control their emotions. Reason influences their actions far more than their feelings. They don’t reveal what they’re thinking or how they’re feeling.  Manage your emotions effectively.  Watch that your body language doesn’tconvey negativity.  “Stick to the point” in meetingsand interactions.  Watch people’s reactions carefully, as theymay be reluctant to show their true emotions The U.S., the U.K., Switzerland, Germany, Scandinavia, and the Netherlands. Emotional People find ways to express their emotions, even spontaneously, at work. In these cultures, it’s welcome and accepted to show emotion.  Open up to people to build trustand rapport.  Use emotion to communicate your objectives.  Learn to manage conflict effectively, beforeit becomes personal.  Use positive body language.  Have a good attitude. Argentina, Spain, Russia, India, and China.
  • 14. 5. Achievement Versus Ascription (How People View Status) Dimension Characteristics Strategies Typical Cultures Achievement People believe that you are what you do, and they base your worthaccordingly. These cultures value performance, no matter who you are.  Reward and recognize goodperformance appropriately.  Use titles only when relevant.  Be a good role model. The U.S., Canada, Australia, and Scandinavia Ascription People believe that you should be valued for who you are. Power, title and position matter in these cultures, and these roles define people’s behavior.  Use titles, especially when they clarifypeople’s status in an organization.  Show respect to those in authority,particularly when challenging decisions.  Don’t “show up” people in authority. France, Italy, Japan, and Saudi Arabia.
  • 15. 6. Sequential Time Versus Synchronous Time (How People Manage Time) Dimension Characteristics Strategies Typical Cultures Sequential Time People like events to happen in logical order. They place a high value on punctuality, planning (and sticking to your plans), and staying on schedule. Inthis type of culture, “time ismoney,” and people don’t appreciate it when theirschedule is thrown off.  Focus on a few activities or projects ata time.  Be punctual.  Set clear deadlines, and stick to them. Germany, the U.K. and the U.S. Synchronous Time People see the past, present and future as interwoven periods. Theyoften work on several projects at once, and view plans and commitments as moveable.  Be flexible in how you approach work, andallow others to do the same.  Highlight the importance of punctualityand deadlines if these are key tomeeting objectives. Japan, Argentina and Mexico.
  • 16. 7. Internal Direction Versus Outer Direction (How People Relate to Their Environment) Dimension Characteristics Strategies Typical Cultures Internal Direction People believe that they can control theirenvironment to achieve their goals. This includes how they work with teamsand within organizations.  Allow others to develop their skills and takecontrol of their learning.  Set clear objectives that people agree with.  Be open about disagreements, and allowpeople to engage in constructive conflict. Israel, the U.S., Australia, New Zealand, and the U.K. Outer Direction People believe that nature,or their environment,controls them. At work and in relationships, they focustheir actions on others,and they avoid conflictwhere possible.  Provide people with the support andresources to do their jobs effectively.  Give them direction and regular  feedback, so that they know the results oftheir actions.  Reassure people that they’re doing agood job.  Manage conflict quickly and quietly.  Do whatever you can to boostpeople’s confidence.  Encourage others to take responsibility fortheir work. China, Russia and Saudi Arabia. MOTIVATION ACROSS CULTURES The Nature of Motivation  Motivation A psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives.
  • 17. The Basic Motivation Process  Unsatisfied need  Drive toward goal to satisfy need  Attainment of goal (need satisfaction) The Universalist Assumption  The first assumption is that the motivation process is universal, that all people are motivated to pursue goals they  The process is universal  Culture influences the specific content and goals pursued  Motivation differs across cultures THE HIERARCHY-OF-NEEDS THEORY The Maslow Theory  Maslow’s theory rests on a number of basic assumptions:  Lower-level needs must be satisfied before higher-level needs become motivators  A need that is satisfied no longer serves as a motivator  There are more ways to satisfy higher-level than there are ways to satisfy lower- level needs Maslow’s Need Hierarchy Physiological Needs: Basic physical needs for water, food, clothing, and shelter. Safety Needs: Desires for security, stability, and the absence of pain Social Needs: Desires to interact and affiliate with others and to feel wanted by others. Esteem Needs: Needs for power and status. Self-Actualization Needs: Desires to reach one’s full potential, to become everything one is capable of becoming as a human being.
  • 18. International Findings on Maslow’s Theory  Some researchers have suggested modifying Maslow’s “Western-oriented” hierarchy by re-ranking the needs  Asian cultures emphasize the needs of society  Chinese hierarchy of needs might have four levels ranked from lowest to highest:  Belonging (social)  Physiological  Safety  Self-actualization (in the service of society)
  • 19. THE TWO-FACTOR THEORY OF MOTIVATION The Herzberg Theory Two-Factor Theory of Motivation A theory that identifies two sets of factors that influence job satisfaction:  Motivators Job-content factors such as achievement, recognition, responsibility, advancement, and the work itself  Hygiene Factors Job-context variables such as salary, interpersonal relations, technical supervision, working conditions, and company policies and administration  The two-factor theory holds that motivators and hygiene factors relate to employee satisfaction – a more complex relationship than the traditional view that employees are either satisfied or dissatisfied  If hygiene factors are not taken care of or are deficient there will be dissatisfaction
  • 20.  There may be no dissatisfaction if hygiene factors are taken care of – there may be no satisfaction also  Only when motivators are present will there be satisfaction  Hygiene factors help to prevent dissatisfaction – thus the term hygiene as it is used in the health field  Only motivators lead to satisfaction  Efforts to motivate human resources must provide:  Recognition  A chance to achieve and grow  Advancement  Interesting work International Findings on Herzberg’s Theory  A number of research efforts have been undertaken to replicate the two-factor theory – they tend to support Herzberg’s findings  George Hines surveyed of 218 middle managers and 196 salaried employees in New Zealand using ratings of 12 job factors and overall job satisfaction – he concluded “the Herzberg model appears to have validity across occupational levels”  A similar study was conducted among 178 Greek managers – this study found that overall Herzberg’s two-factor theory of job satisfaction generally held true
  • 21. ACHIEVEMENT MOTIVATION THEORY The Background of Achievement Motivation Theory Characteristic profile of high achievers:  They like situations in which they take personal responsibility for finding solutions to problems.  Tend to be moderate risk-takers rather than high or low risk-takers.  Want concrete feedback on their performance.  Often tend to be loners, and not team players. Ways to develop high-achievement needs:  Obtain feedback on performance and use the information to channel efforts into areas where success will likely be attained  Emulate people who have been successful achievers;  Develop an internal desire for success and challenges  Daydream in positive terms by picturing oneself as successful in the pursuit of important objectives International Findings on Achievement Motivation Theory  Achievement motivation theory must be modified to meet the specific needs of the local culture:  The culture of many countries does not support high achievement  Anglo cultures and those that reward entrepreneurial effort do support achievement motivation and their human resources should probably be managed accordingly SELECT THEORIES Equity Theory  When people perceive they are being treated equitably it will have a positive effect on their job satisfaction
  • 22.  If they believe they are not being treated fairly (especially in relation to relevant others) they will be dissatisfied which will have a negative effect on their job performance and they will strive to restore equity.  Employees in Asia and the Middle East often readily accept inequitable treatment in order to preserve group harmony  Men and women in Japan and Korea (and Latin America) typically receive different pay for doing the same work – due to years of cultural conditioning women may not feel they are treated inequitably.  International findings on equity theory  Israeli kibbutz production unit, everyone treated same but managers reported lower satisfaction levels than workers  Managers perceived contributions greater than other groups in kibbutz and felt under-compensated for value and effort.  Employees in Asia and Middle East often readily accept inequitable treatment in order to preserve group harmony  Japanese men and women (and in Latin America) typically receive different pay for doing same work; due to years of cultural conditioning women may not feel treated inequitably.
  • 23. Goal-Setting Theory  A process theory that focuses on how individuals go about setting goals and responding to them and the overall impact of this process on motivation  Specific areas that are given attention in goal-setting theory include:  The level of participation in setting goals  Goal difficulty  Goal specificity  The importance of objective  Timely feedback to progress toward goals  Unlike many theories of motivation, goal setting has been continually refined and developed  There is considerable research evidence showing that employees perform extremely well when they are assigned specific and challenging goals that they have had a hand in setting  Most of these studies have been conducted in the United States – few have been carried out in other cultures  Norwegian employees shunned participation and preferred to have their union representatives work with management in determining work goals  Researchers concluded that individual participation in goal setting was seen as inconsistent with the prevailing Norwegian philosophy of participation through union representatives  In the United States employee participation in setting goals is motivational – it had no value for the Norwegian employees in this study Expectancy Theory A process theory that postulates that motivation is influenced by a person’s belief that  Effort will lead to performance  Performance will lead to specific outcomes, and  The outcomes will be of value to the individual.
  • 24. MOTIVATION APPLIED (JOB DESIGN, WORK CENTRALITY, AND REWARDS) Job Design  Quality of work life (QWL) is not the same throughout the world.  Assembly-line employees in Japan work at a rapid pace for hours and have very little control over their work activities  Assembly-line employees in Sweden work at a more relaxed pace and have a great deal of control over their work activities  U.S. assembly-line employees typically work somewhere between – at a pace less demanding than Japan’s but more structured than Sweden’s  QWL may be directly related to the culture of the country. Work Centrality  The importance of work in an individual’s life can provide important insights into how to motivate human resources in different cultures  Japan has the highest level of work centrality  Israel has moderately high levels  The United States and Belgium have average levels  The Netherlands and Germany have moderately low levels  Britain has low levels  In recent years, the number of hours worked annually by German workers has been declining, while the number for Americans has been on the rise.  Germans place high value on lifestyle and often prefer leisure to work, while their American counterparts are just the opposite.  Research reveals culture may have little to do with it  A wider range of wages (large pay disparity) within American companies than in German firms creates incentives for American employees to work harder.  Impact of overwork on the physical condition of Japanese workers  One-third of the working-age population suffers from chronic fatigue  The Japanese prime minister’s office found a majority of those surveyed complained of
  • 25. o Being chronically tired o Feeling emotionally stressed o Abusive conditions in the workplace  Karoshi (“overwork” or “job burnout”) is now recognized as a real social problem Reward Systems  Managers everywhere use rewards to motivate their personnel  Some rewards are financial in nature such as salary raises, bonuses, and stock options  Others are non-financial such as feedback and recognition  Significant differences exist between reward systems that work best in one country and those that are most effective in another Incentives and Culture  Use of financial incentives to motivate employees is very common  Countries with high individualism  When companies attempt to link compensation to performance  Financial incentive systems vary in range  Individual incentive-based pay systems in which workers are paid directly for their output  Systems in which employees earn individual bonuses based on organizational performance goals  Many cultures base compensation on group membership  Such systems stress equality rather than individual incentive plans  An individually based bonus systemfor the sales representatives in an American MNC introduced in its Danish subsidiary was rejected by the sales force because o It favored one group over another o Employees felt that everyone should receive the same size bonus
  • 26.  Indonesian oil workers rejected a pay-for-performance systemwhere some work teams would make more money than others  French and Italian employees valued job security highly while American and British workers held it of little importance  Scandinavian workers placed high value on concern for others on the job and for personal freedom and autonomy but did not rate “getting ahead” very important  German workers ranked security, fringe benefits, and “getting ahead” as very important  Japanese employees put good working conditions and a congenial work environment high on their list but ranked personal advancement quite low  The types of incentives that are deemed important appear to be culturally influenced  Culture can even affect the overall cost of an incentive system  Japanese efforts to introduce Western-style merit pay systems typically lead to an increase in overall labor costs  Companies fear that reducing the pay of less productive workers’ may cause them to lose face and disturb group harmony  Hence, everyone’s salary increases as a result of merit pay systems CROSS CULTURAL MANAGEMENT What is Cross-Cultural Management? CCMis a fairly new field that is based on theories and research from: • Cross Cultural Psychology • International Business • Organizational Behaviour • Human Resources • Anthropology Goals for Cross-Cultural Management Cross Cultural Management seeks to • understand how national cultures affect management practices
  • 27. • identify the similarities and differences across cultures in various management practices and organizational contexts • increase effectiveness in global management Leadership across cultures Leadership often is credited for the success or failure of international operations. Note that like the other topics discussed so far, effective leadership styles and practices in one culture is not necessarily effective in other cultures.For example, the leadership approach used by effective U.S.managers would not necessarily be the same as that employed in other parts of the world. Even within the same country, effective leadership tends to be very situation specific;however, also like the other areas studied in international management, certain leadership styles and practices transcend international boundaries. A. leadership is the process of influencing people to direct their efforts towards the achievement of some particular goal. B. leadership behavior and styles: (1) authoritarian. (2) paternalistic. (3) participative. Authoritarian leadership is the use of work-centered behavior that is designed to ensure task accomplishment. this leader behavior typically involves the use of one-way communication from manager to subordinate. The focus of attention usually is on work progress, work procedures, and roadblocks that are preventing goal attainment. Although this leadership style often is effective in handling crises, some leaders employ it as their primary style regardless of the situation. Paternalistic leadership uses work-centered behavior coupled with a protective employee centered concern. This leadership style can be best summarized by the statement “Work hard and the company will take care of you.” Paternalistic leaders expect everyone to work hard; in return, the employees are guaranteed employment and given security benefits. Participative leadership is the use of both work-centered and people-centered approaches. Participative leaders typically encourage their people to play an active role in assuming control of their work, and authority usually is highly decentralized.
  • 28. LEADERSHIP ACROSS DIFFERENT CULTURE The ear of the leader must ring with the voices of the people.” Woodrow Wilson with the march of globalization and internationalization growing louder and stronger, few successful businesses can now escape the need to work across cultures. Today’s leaders need to adapt at leading and managing people of different cultures; they need to listen to the “voices of the people” as well as understand what those voices may actually be telling them. This in essence is the crux of the challenge; when people perceive the world, communicate and view their leaders in different ways, the leader’s ears may be ringing with misunderstood messages. The leader will come across cultural issues in many different guises. By way of illustrating the challenges of cross- cultural leadership and for the sake of brevity this article will examine two interdependent issues: the role of a leader and communication. INTERCULTURAL MANAGEMENT LEADERSHIP AMONG DIFFERENT COUNTRIES “The art of communication is the language of leadership” - James Humes Today's businesses are complex entities. However, one fundamental principle of success remains constant - the need for communication. Communication manifests in various forms, both verbal and non-verbal. One area of increasing concern for businesses is how to nurture and maintain effective intercultural communication between employees. As workforces become increasingly multicultural and businesses continue to expand overseas, the homogenous workforce has become a thing of the past. The cultural diversity of businesses necessitates that internal communication now takes note of the intercultural element if it is to be truly effective. Management today have to ensure that they are understanding and being understood across cultural boundaries. The following ten tips on intercultural management are meant to provide a starting point to managers dealing with culturally diverse teams. UNDERSTANDING MAJOR DIFFERENCES IN CROSS-CULTURAL COMMUNICATION “…the single greatest barrier to business success is the one erected by culture." - Edward T. Hall and Mildred Reed Hall
  • 29. CROSS CULTURAL BUSINESS BLUNDERS These are some examples of how cultural ignorance can and does lead to negative (and much of the time humorous) consequences. The following cultural blunders are presented in order illustrate to people how crucial cultural awareness is in international business today. 1. Managers at one American company were startled when they discovered that the brand name of the cooking oil they were marketing in a Latin American country translated into Spanish as "Jackass Oil." 2. American Motors tried to market its new car, the Matador, based on the image of courage and strength. However, in Puerto Rico the name means "killer" and was not popular on the hazardous roads in the country. 3. A US telephone company tried to market its products and services to Latinos by showing a commercial in which a Latino wife tells her husband to call a friend, telling her they would be late for dinner. The commercial bombed since Latino women do not order their husbands around and their use of time would not require a call about lateness. 4. A cologne for men pictured a pastoral scene with a man and his dog. It failed in Islamic countries dogs are considered unclean. 5. Proctor & Gamble used a television commercial in Japan that was popular in Europe. The ad showed a woman bathing, her husband entering the bathroom and touching her. The Japanese considered this ad an invasion of privacy, inappropriate behavior, and in very poor taste. 6. An American business person refused an offer of a cup of coffee from a Saudi businessman. Such a rejection is considered very rude and the business negotiations became stalled. 7. A Japanese manager in an American company was told to give critical feedback to a subordinate during a performance evaluation. Japanese use high context language and are uncomfortable giving direct feedback. It took the manager five tries before he could be direct enough to discuss the poor performance so that the American understood. 8. One company printed the "OK" finger sign on each page of its catalogue. In many parts of Latin America that is considered an obscene gesture. Six months of work were lost because they had to reprint all the catalogues.
  • 30. CROSS CULTURAL WORKPLACE RELIGION, CULTURE AND WORKPLACE Many religions carry dress codes or guidelines on appearance and presentation. Khalsa Sikhs wear five religious symbols known as the five K's. Two are not visible, but the 'Kara' (a steel bangle worn on the wrist) and the 'Kesh' (uncut hair usually underneath a turban) are worn on the outside. The 'Kirpan' (a decorative sword) does not necessarily have to be visible. Muslim women are required to cover their bodies as a sign of modesty. Interpretations of the Quran differ so you may see Muslim women wearing just a head covering whereas others may only show their eyes. Muslim men on the whole do not have specific restrictions on their dress although they are strongly encouraged to wear a beard. Again, interpretations as to what constitutes a beard vary… CULTURE IN GLOBAL TEAMS At this moment in time, the increase in cross border human traffic has meant that companies are no longer dealing with a homogenous native community from which they recruit their staff. Companies are now facing cross cultural challenges in how they recruit, manage and develop a multi-cultural staff. One area of note where HR and management are finding difficulties is in the interview room. With companies recruiting from a pool of candidates from different nationalities, cultures and faiths the cross cultural interview is an area that must be analyzed properly if recruiters wish to capitalize on the potential available to them. This is necessary to ensure that candidates in cross cultural interviews are not discriminated against through misperceptions and poor judgments… CROSS CULTURAL INTERVIEWS At this moment in time, the increase in cross border human traffic has meant that companies are no longer dealing with a homogenous native community from which they recruit their staff. Companies are now facing cross cultural challenges in how they recruit, manage and develop a multi-cultural staff. One area of note where HR and management are finding difficulties is in the interview room. With companies recruiting from a pool of candidates from different nationalities, cultures and faiths the cross cultural interview is an area that must be analyzed
  • 31. properly if recruiters wish to capitalize on the potential available to them. This is necessary to ensure that candidates in cross cultural interviews are not discriminated against through misperceptions and poor judgments… STAGES OF CULTURE SHOCK 'Culture shock' is used to describe the emotional rollercoaster that someone experiences when living in a new country. Anyone that has worked and lived in a foreign country will experience culture shock of some sort. Culture shock affects anyone from business personnel and their families, to EFL teachers to sports stars. Recognizing culture shock is an important way of being able to deal with it. Dealing with it helps minimize the risk of becoming disillusioned with a new country and the possibility of deciding that a quick return 'home' is the only solution. Experts agree that culture shock has stages and all agree that once people get beyond the initial and most difficult stages, life in a new country becomes a lot better. Outlined below is an example of the stages people go through with culture shock: Stage 1 - Excitement The individual experiences a holiday or 'honeymoon' period with their new surroundings. They: very positive about the culture Are overwhelmed with impressions Find the new culture exotic and are fascinated Are passive, meaning they have little experience of the culture Stage 2 - Withdrawal The individual now has some more face to face experience of the culture and starts to find things different, strange and frustrating. They: Find the behavior of the people unusual and unpredictable Begin to dislike the culture and react negatively to the behavior Feel anxious Start to withdraw
  • 32. Begin to criticize, mock or show animosity to the people Stage 3 - Adjustment The individual now has a routine, feels more settled and is more confident in dealing with the new culture. They: Understand and accept the behavior of the people Feel less isolated Regains their sense of humor Stage 4 - Enthusiasm The individual now feels 'at home'. They: Enjoy being in the culture Functions well in the culture Prefer certain cultural traits of the new culture rather than their own Adopt certain behaviors from the new culture
  • 33. MULTICULTURAL TEAMS – WORK VALUES Multicultural team is defined as a group of people from different cultures, with a joint deliverable. To enable high performance in international organizations, teams must first overcome the barriers inherent in the cultural differences problems of communication, value incongruence, and other such obstacles. ADVANTAGES OF MULTICULTURAL TEAMS 1) Multicultural organizations have an advantage in attracting and retaining the best available human talent. The exceptional capabilities of women and minorities offer a rich labor pool for organizations to tap. When organizations attract, retain and promote maximum utilization of people from diverse cultural backgrounds, they gain competitive advantage and sustain the highest quality of human resources. for example, The diverse organization has a better understanding of foreign employees. 2) Multicultural organizations can understand and penetrate wider and enhanced markets. Not only does the multicultural organization embrace a diverse work force internally, it is better suited to serve a diverse external clientele. The diverse organization has an increased understanding of the political, social, legal, economic and cultural environment of foreign countries. 3) A multicultural organization displays higher creativity and innovation. Especially in research-oriented and high technology organizations, the array of talents provided by a gender-and ethnic-diverse organization becomes invaluable. 4) Multicultural organizations display a better problem solving ability. Researchers show the culturally diverse organization to exhibit expanded meanings, multiple perspectives and multiple interpretations. A multicultural organization is more capable of avoiding the consequences of “group think”. 5) Multicultural organizations are better able to adapt to change and exhibit more organizational flexibility. For example, women have a higher tolerance for ambiguity than men while bilinguals have a higher level of divergent thinking and cognitive flexibility than monolinguals.
  • 34. MULTICULTURAL TEAM PERFORMANCE A number of conditions and initiatives are conducive to good multicultural team performance • Adherence of defined procedures • Clearly communication procedure • Development of effective people selection • Ability to deal with cross cultural integration • Collective work plan FOUR CHALLENGES The following cultural differences can cause destructive conflicts in a team: 1) Direct versus indirect communication: Some team members use direct, explicit communication while others are indirect, for example, asking questions instead of pointing out problems with a project. When members see such differences as violations of their culture’s communication norms, relationships can suffer 2) Trouble with accents and fluency: Members who aren’t fluent in the team’s dominant language may have difficulty communicating their knowledge. This can prevent the team from using their expertise and create frustration or perceptions of incompetence. 3) Differing attitudes toward hierarchy: Team members from hierarchical cultures expect to be treated differently according to their status in the organization. Members from egalitarian cultures do not. Failure of some members to honor those expectations can cause humiliation or loss of stature and credibility. 4) Conflicting decision-making norms: Members vary in how quickly they make decisions and in how much analysis they require before hand. Someone who prefers making decisions quickly may grow frustrated with those who need more time.
  • 35. FOUR STRATEGIES Strategies for dealing with these challenges: Adaptation: Adaptation is the ideal strategy because the team works effectively to solve its own problem with minimal input from management—and, most important, learns from the experience. Structural intervention: A structural intervention is a deliberate reorganization or reassignment designed to reduce interpersonal friction or to remove a source of conflict for one or more groups. This approach can be extremely effective when obvious subgroups demarcate the team (for example, headquarters versus national subsidiaries) or if team members are proud, defensive, threatened, or clinging to negative stereotypes of one another. Managerial intervention: When a manager behaves like an arbitrator or a judge, making a final decision without team involvement, neither the manager nor the team gains much insight into why the team has stalemated. But it is possible for team members to use managerial intervention effectively to sort out problems. Exit: Possibly because many of the teams we studied were project based, we found that leaving the team was an infrequent strategy for managing challenges. In short-term situations, unhappy team members often just waited out the project. When teams were permanent, producing products or services, the exit of one or more members was a strategy of last resort, but it was used—either voluntarily or after a formal request from management. Exit was likely when emotions were running high and too much face had been lost on both sides to salvage the situation.
  • 36. Culture Map: It is made up of eight scales representing the management behaviors where cultural gaps are most common. By comparing the relative position of one nationality to another on each scale, the user can de-code how culture influences day-to-day collaboration The scales and their metrics are: Communicating: In low-context cultures, good communication is precise, simple, explicit and clear. Messages are understood at face value. Repetition is appreciated for purposes of clarification, as in putting messages in writing. In high-context cultures, communication is sophisticated, nuanced and layered. Messages are often implied but not plainly stated. Less is put in writing, more is left open to interpretation, and understanding may depend on reading between the lines. Evaluating: All cultures believe criticism should be given constructively, but the definition of ‘constructive’ varies greatly. This scale measures a preference for frank versus diplomatic
  • 37. negative feedback. Evaluating is often confused with communicating, but many countries have different positions on the two scales. Persuading: The ways in which you persuade others and the kinds of arguments you find convincing are deeply rooted in your culture’s philosophical, religious, and educational assumptions and attitudes. The traditional way to compare countries along this scale is to assess how they balance holistic and specific thought patterns. Leading: This dimension measures the degree of respect and deference shown to authority figures, placing countries on a spectrum from egalitarian to hierarchical. Deciding: This dimension measures the degree to which a culture is consensus-minded. We often assume that the most egalitarian cultures will also be the most democratic, while the most hierarchical ones will allow the boss to make unilateral decisions. Trusting:Cognitive trust (from the head) can be contrasted with affective trust (from the heart). In task-based cultures, trust is built cognitively through work. If we collaborate well, prove ourselves reliable, and respect each other’s contributions, we come to trust each other. In a relationship-based society, trust is a result of weaving a strong affective connection. If we spend time laughing and relaxing together, get to know each other at a personal level, and feel a mutual liking, we will trust each other. Disagreeing: Different cultures have very different ideas about how productive confrontation is for a team or organization. This scale measures tolerance for open disagreement and views on whether it is likely to improve or destroy collegial relationships. Scheduling:All businesses follow agendas and timetables, but in some cultures people strictly adhere to the schedule, while in others people treat it as a suggestion. This scale assesses how much value is placed on operating in a structured, linear fashion versus being flexible and reactive.
  • 38. WORK VALUES Definition: Work values are the subset of your beliefs and ideas that are related to your occupation or job. Work values is Job satisfaction comes from having a job that meets your needs and fits your goals. Aspects of Work Values:  Achievement: doing work that yields results  Independence: working and making decisions on your own  Recognition: receiving attention for your work  Relationships: working alongside coworkers as well as helping others  Support: having supportive management  Working Conditions: being in an environment that has good conditions  Autonomy: receiving little or no supervision  Helping Others: providing assistance to individuals or groups  Prestige: having high standing  Job Security: a high probability that one will remain employed  Collaboration: working with others  Helping Society: contributing to the betterment of the world  Compensation: receiving adequate pay  Utilizing Your Skills and Background: using your education and work experience to do your job  Leadership: supervising/managing others  Creativity: using your own ideas  Variety: doing different activities  Challenge: performing tasks that are difficult or new to you  Leisure: having adequate time away from work  Recognition: receiving credit for achievements  Artistic Expression: expressing one's artistic talents  Influence: having the ability to affect people's opinions and ideas
  • 39. The Relationship between Language and Culture It is generally agreed that language and culture are closely related. Language can be viewed as a verbal expression of culture. It is used to maintain and convey culture and cultural ties. Language provides us with many of the categories we use for expression of our thoughts, so it is therefore natural to assume that our thinking is influenced by the language which we use. The values and customs in the country we grow up in shape the way in which we think to a certain extent. Cultures hiding in languages, examines the link between Japanese language and culture. An Insight into Korean Culture through the Korean Language discusses how Korean culture influences the language. Languages spoken in Ireland, focuses on the status of the Irish language nowadays and how it has changed over time. In our big world every minute is a lesson looks at intercultural communication and examines how it can affect interactions between people from countries and backgrounds. Communicating Across Cultures Communicating across cultures is challenging. Each culture has set rules that its members take for granted. Few of us are aware of our own cultural biases because cultural imprinting is begun at a very early age. And while some of a culture's knowledge, rules, beliefs, values, phobias, and anxieties are taught explicitly, most of the information is absorbed subconsciously. The challenge for multinational communication has never been greater. Worldwide business organizations have discovered that intercultural communication is a subject of importance—not just because of increased globalization, but also because their domestic workforce is growing more and more diverse, ethnically and culturally. We are all individuals, and no two-people belonging to the same culture are guaranteed to respond in exactly the same way. However, generalizations are valid to the extent that they provide clues on what you will most likely encounter when dealing with members of a particular culture. High-Context vs. Low-Context All international communication is influenced by cultural differences. Even the choice of communication medium can have cultural overtones. The determining factor may not be the degree of industrialization, but rather whether the country falls into a high-context or low- context culture.High-context cultures (Mediterranean, Slav, Central European, Latin American,
  • 40. African, Arab, Asian,American-Indian) leave much of the message unspecified, to beunderstood through context, nonverbalcues, and between-the-lines interpretation of what is actually said. By contrast, low-context cultures (most Germanic and English-speaking countries) expect messages to be explicit and specific. Sequential vs. Synchronic Some cultures think of time sequentially, as a linear commodity to "spend," "save," or "waste." Other cultures view time synchronically, as a constant flow to be experienced in the moment, and as a force that cannot be contained or controlled. In sequential cultures (like North American, English, German, Swedish, and Dutch), businesspeople give full attention to one agenda item after another. In synchronic cultures (including South America, southern Europe and Asia) the flow of time is viewed as a sort of circle, with the past, present, and future all interrelated. This viewpoint influences how organizations in those cultures approach deadlines, strategic thinking, investments, developing talent from within, and the concept of "long-term" planning. Orientation to the past, present, and future is another aspect of time in which cultures differ. Americans believe that the individual can influence the future by personal effort, but since there are too many variables in the distant future, we favor a short-term view. Synchronistic cultures’ context is to understand the present and prepare for the future. Any important relationship is a durable bond that goes back and forward in time, and it is often viewed as grossly disloyal not to favor friends and relatives in business dealings. Affective vs. Neutral In international business practices, reason and emotion both play a role. Which of these dominates depends upon whether we are affective (readily showing emotions) or emotionally neutral in our approach. Members of neutral cultures do not telegraph their feelings, but keep them carefully controlled and subdued. In cultures with high affect, people show their feelings plainly by laughing, smiling, grimacing, scowling, and sometimes crying, shouting, or walking out of the room. This doesn't mean that people in neutral cultures are cold or unfeeling, but in the course of normal business activities, neutral cultures are more careful to monitor the amount of emotion they display. Emotional reactions were found to be least acceptable in Japan, Indonesia, the U.K., Norway, and the Netherlands and most accepted in Italy, France, the U.S., and Singapore. Reason and emotion are part of all human communication. When expressing ourselves, we look to others for confirmation of our ideas and feelings. If our approach is highly emotional, we are seeking a direct emotional response: "I feel the same way." If our approach is highly neutral, we want an indirect response: "I agree with your thoughts on this."
  • 41. It's easy for people from neutral cultures to sympathize with the Dutch manager and his frustration over trying to reason with "that excitable Italian." After all, an idea either works or it doesn't work, and the way to test the validity of an idea is through trial and observation. That just makes sense—doesn't it? Well, not necessarily to the Italian who felt the issue was deeply personal and who viewed any "rational argument" as totally irrelevant! When it comes to communication, what's proper and correct in one culture may be ineffective or even offensive in another. In reality, no culture is right or wrong, better or worse—just different. In today's global business community, there is no single best approach to communicating with one another. The key to cross-cultural success is to develop an understanding of, and a deep respect for, the differences. Intercultural communication Language difficulties can result in miscommunication between people of different cultural backgrounds, but competence in English does not guarantee good communication. Miscommunication often results from personal or cultural misunderstandings. Careers teachers benefit by considering the personal or cultural bases for misunderstandings and their responsibility to minimize these. Knowledge about culture and intercultural communication skills will assist careers teachers in their work with students from diverse cultural backgrounds. Verbal communication Interpretations of verbal communication can be culturally based. Misunderstandings can easily arise. For example, in some cultures:  It is impolite to speak without being specifically asked by a superior, thus some students will not say hello, will not volunteer answers and will not answer generally directed questions.  It is not appropriate to refuse a request, thus saying ‘yes’ may mean ‘I am listening’, or ‘maybe’, or ‘no’. Avoidance behavior rather than contradiction is used i.e. not doing what is requested is the polite response, as opposed to saying directly ‘no’.  Direct confrontation is to be avoided. It is more important to maintain the relationship, then to find an answer to an immediate disputed issue or problem. This contrasts with the Anglo-Australian approach of trying to resolve issues by frank and open discussion of the disputed issue, clearly stating personal needs and preferences and direct bargaining tactics focusing on an immediate solution.
  • 42.  Asking questions when you already know the answer, which is a common teaching technique in Australia, can indicate a lack of intelligence in some cultures. Nonverbal communication Non-verbal communication can be more important than speech for reflecting emotion, mood and motivation. Non-verbal cues will vary significantly across cultures:  Direct eye contact is used to show attentive listening and respect, however direct eye contact is impolite in some cultures.  Student’s smiles are interpreted as a sign of happiness, comfort or pleasure, when actually they are smiling because they are uncomfortable or embarrassed.  Encouraging a warm and friendly classroomatmosphere by teachers sitting on tables, or kneeling on the floor beside student desks may not be appropriate. Some simple actions are open to misinterpretation and can be insulting or embarrassing to students:  Kneeling at a student’s desk with the teacher’s head lower than the students  Distance between teacher and students during conversations being too close  Expecting students to greet teachers without teachers speaking first (unsolicited indications of presence are disrespectful on many cultures)  Touching a student’s head (most holy part of the body in some cultures)  Pointing the feet (least holy part of the body in some cultures)  Signaling students to approach by crooking index finger (a gesture applied to dogs in South East Asia)  Pointing to a student or blackboard with a straight index finger  Students not sitting while adults stand (sitting is a sign of respect) It may not be possible to address all these issues for all groups, particularly as some of them conflict. Careers practitioners need to be aware of the potential for miscommunication and create bridges to reduce miscommunication and improve effectiveness.