National Differences

Culture Environment
FTU Foreign Trade University Dr. Nguyen Hai Ninh

Perceptions of each other

Telling the truth

Queuing

Transportation

Child

Seniors daily life

Noise level inside a restaurant

Connections and Contacts

Punctuality

Boss

and many others.

EAST - WEST CULTURAL DIFFERENCES

Prof. Geert Hosftede

Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster

WHAT IS CULTURE?
is the system of

Values

Norms and Beliefs

being shared among group of people

ELEMENTS OF CULTURE
Religion Language Aesthetic Political - economic philosophies Education Social structure

LANGUAGE
3,000 languages and as many as 10,000 dialects worldwide

Language can be a competitive weapon

Language serves at the window to the culture of a society Verbal or non-verbal is a very important skill for Business people

4 Main religious: Christianity, Islam, Hinduism, Buddhism

Master Kong: 551 478 BC

Confucianism is not a religion, but influences behavior and shapes culture in many parts of Asia

Activity 1
Give some examples of cultural differences in the interpretation of body language. What is the role of such nonverbal communication in business relationships?

WORKING IN CROSS CULTURAL WORKPLACE

Power distance
The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally

Low power distance

Minimize the inequalities among people Interdependence between less and more powerful people Flat hierarchy pyramid Power decentralization Narrow salary range Subordinated expect to be consulted The ideal boss is a resourceful democrat

High power distance

Inequalities among people are both expected and desired Less powerful people should be depended on the more powerful Slope hierarchy pyramid Power centralization Wide salary range Subordinated expect to be told what to do The ideal boss is a benevolent autocrat or good father

Privileges and status are disapproved

Privileges and status are both expected and popular

High Orientation towards authority

Low

Viet Nam Malaysia Arab Countries Mexico India France Italy Japan Spain Argentina US Germany UK Denmark Israel Austria

Example A company from Austria (low power distance) is considering entering the Vietnam (high power distance) market.
Power Distance Index 100 80 60 40 81

20
0

11 Austria Viet Nam

Communication tips for the Austrian manager:

1) 2) 3) 4) 5) Give clear and explicit directions to those working with him Deadlines should be highlighted and stressed Do not expect subordinates to take initiative Be more authoritarian in his management style Show respect and deference to those higher up the ladder

Uncertainty avoidance
The extent to which members of a society feel threaten by uncertain or unknown situations

Weak uncertainty avoidance

Uncertainty: normal feature of life and each day is accepted as it comes Low stress subjective feeling of wellbeing Aggression and emotions must not be shown Comfortable in ambiguous situations and with unfamiliar risk There should not be more rules than necessary Precision and punctuality have to be learned Tolerance to innovation Motivation by achievement

Strong uncertainty avoidance

Uncertainty : continuous threat that must be fought High stress subjective feeling of anxiety Aggression and emotions may be shown at proper times Fear of ambiguous situations and of unfamiliar risk Emotional need for rules, even if they never work Precision and punctuality come naturally Resistance to innovation Motivation by security

High

Low

VietNam Greece Japan France Korea Arab Countries Germany Australia Canada US UK India Denmark Singapore

Desire for stability

Example A company from France (high uncertainty avoidance) is considering investing in Denmark (low uncertainty avoidance)
100 80 60 40 20 0
Uncertainty Avoidance Index

86

23

France Communication tips for the French manager: 1) 2)

Denmark

Try to be more flexible or open in his approach to new ideas than he may be used to Be prepared to push through agreed plans quickly as they would be expected to be realized as soon as possible

3)

Allow employees the autonomy and space to execute their tasks on their own; only guidelines and resources will be expected of him

Individualism
The tendency of people to look after themselves and their immediate family and neglect the needs of society

Low individualism
Individuals learn to think in terms of we Diplomas provide entry to higher status groups Relationship employer- employee is perceived in moral terms, like a family Hiring and promotion decisions take employees ingroup into account Management is management of groups Relationship prevails over task

High individualism
Individuals learn to think in terms of I Diplomas increase economic worth and/or self- respect Relationship employer-employee is a contract based on mutual advantage Hiring and promotion are supposed to be based on skills and rules only Management is management of individuals Task prevails over relationship

High

Low

Australia US UK Canada France Germany Spain Japan Mexico Italy Korea Singapore

Example A company from UK (high individualism) is considering investing in Mexico (low individualism)
100 80 60 96
Individualism Index

40
23 20 0 UK Communication tips for the UK manager: 1) 2) 3) 4) Note that individuals have a strong sense of responsibility for their family Remember that praise should be directed to a team rather than individuals Understand that rewards depend upon seniority and experience Mexico

Be aware that the decision making process will be rather slow, as many members across the hierarchy need to be consulted

Masculinity
The tendency within a society to emphasize traditional gender roles

Low masculinity
Dominant values: caring for others and preservation People and warm relationships are important Sympathy for the weak In family, both fathers and mothers deal with facts and feelings Stress on equality, solidarity , and quality of work life Managers use intuition and strive for consensus Resolution of conflicts by compromise and negotiation

High masculinity
Dominant values: material success and progress Money and things are important Sympathy for the strong In family, fathers deal with facts and mothers with feelings Stress on equity, competition among colleagues and performance Managers are expected to be decisive and assertive Resolution of conflicts by fighting them out

High Japan Mexico Germany UK US Arabia France Korea Portugal Denmark Sweden

Low

Example A company from Denmark ( low masculinity) is considering investing in Mexico (high masculinity)
Masculinity Index

100 80

91

60 40 20 0

8
Denmark Mexico

Communication tips for the Danish manager :

1) 2) Be aware that people will discuss business anytime, even at social gatherings Avoid asking personal questions in business situations

3)
4) 5)

Take into account that people are not interested in developing closer friendships
Communicate directly, unemotionally and concisely In order to assess others use professional identity, not family or contacts

Long- term orientation

A basic orientation towards time that values patience

Short- term orientation

Respect for traditions Little money available for investment Quick results expected Respect for social and status obligations regardless of cost

Long-term orientation
Adaptation of traditions to a modern context Funds available for investment

Perseverance towards slow results

Respect for social and status obligations within limits Concern with respecting the demands of Virtue

Concern with possessing the Truth

Activity 2
Assumed that your corporation intend to open your business in America and Japan, from your own research about their culture, point out the culture differences and specialties. Give some recommendations for your boss?