BA 158 Notes: Cross Cultural Management PDF

🐣 BA 158 NOTES: Cross Cultural Management As business practitioners, we are expected to work in various work environments and to deal...

🐣 BA 158 NOTES: Cross Cultural Management As business practitioners, we are expected to work in various work environments and to deal and interact with different people. We need to work well with each of them As a future business leader, if you know the culture, it’s where you make money. Leadership potential requires an understanding of how to manage different cultures [MARKETING] Good marketers have a good understanding of culture and who they are selling to. For you to launch a good product, it should be in line with your market. Ex. Companies in the Philippines market products in small sachets because it’s what the Filipino masses can afford. People want to dispose of their coins on a day-to-day basis and people want to try the product first before purchasing a bigger size. You don’t launch a product in a country it is not culturally fit for. Cultural background influences consumer preferences, so we find the proper market. People buy things if they see their culture attached to that product Ex. Tampons will not make a profit in a Catholic-Christian society like the Philippines due to religious implications ○ Why does a pink variant fly in the PH? Because the market for floral scents and pinks is mothers. Ex. Food Parks are not common in the Philippines because of our climate and weather WHAT IS CULTURE? DEFINITION Advertisements are tailored to the audience Understanding shared between groups of Ex. Filipinos love drama (that’s why TVCs that people have emotional background sells in PH) The way we perceive things everyday; the way you behave depends on your culture. [HUMAN RESOURCES] What is normal for a country; what may be Especially in multinational companies, you need to make culturally acceptable to us may not be to others sure that people in your organization are addressed and ○ Ex. Filipino Culture: Pagmamano (only treated well according to their cultural standards. Filipinos understand what mano is) Ex. Filipinos are good service exports because ○ Ex. French: exchange of besos (lips to they are willing to adapt to different cultures cheek) Ex. Allowing employees to wear hijabs in the workplace and ensuring they do not get IMPORTANCE IN BUSINESS discriminated by fellow employees for their The business world is becoming increasingly religious practices globalized and interconnected [FINANCE] Different accounting standards per country. 🐣 BA 158 NOTES: Cross Cultural Management National and regional culture [GENERAL MANAGEMENT] Handling operations and (depends on your nationality, logistics. You cannot govern over people you don't food as an artifact of culture) understand. Corporate culture (culture in the “Without culture, it would be impossible to organization; don’t just look at engage in either commerce and trade or salaries, look for organizations governance. The other two sectors require a that embody your values, it’s not continuous infusion of social trust to function” all about money, PH: high power distance culture) CULTURE ONION MODEL Acquired knowledge that people use to interpret experience and generate social behavior Culture forms values and our perception of what is correct, creates attitudes and influences behavior ○ Ex. Seniority: standing up for what is right against superiors is not common for Filipinos The Cultural Concentric Circle, also referred to as the ○ Ex. Korean office dynamics and ‘onion model’, refers to a three-layered diagram which discomfort amongst female employees describes or tells a story about culture; what is seen of at team dinners us; makes us do what we do Like a coffee machine, we each have a cultural Outer Layer or Artifacts — observable, tangible fabric that filters the facts we see and determines symbols of culture; determined by middle layer how we interpret experiences. (ex. landmarks like the Oblation, food, language, jargon, clothing like our lack of a uniform, A REFERENCE POINT festivals) ○ Defines who you are and helps you Middle Layer or Values — values and behaviors understand peoples’ motivations that dictate what we see, determined by the “This is what I believe in, this, for inner layer (ex. Honor and Excellence) me, is correct. Reference point ○ Espoused - what you say are your values ko ‘to eh. This makes sense for ○ Enacted - what you actually do me” Inner Layer or Core — assumptions that cause ○ Ex. 10-degree temperature feels different the values in the middle layer, can be attached to to a Filipino (cold) compared to a historical events Canadian (hot) because we have different reference points (our respective DIMENSIONS OF CULTURE climates). Levels of Culture National Culture → Organizational Culture → Business and People are multicultural and embody unique Occupational Culture (ex. If you are all in the field of blends of culture (especially if an individual is economics, you will somewhat share the same line of born multiracial) thinking) ○ We have multiple reference points Each of these levels influence one another Family Culture National culture cascades down and is the Social Culture (friends, how backbone for culture in organizations and people around you influence workplaces. you) Generational culture (different jargon per generation) 🐣 BA 158 NOTES: Cross Cultural Management Problematic Assumptions Power Distance Uncertainty Avoidance We are alike! We will do things the same way and Time Orientation I do not have to worry about anything! Indulgence They are different, but I still want to do business Individualism - Collectivism only the way I know and want! They are different, I need to be very careful and 1 | POWER DISTANCE cautious. I do not know what I am getting into. The extent to which less powerful members of They are different, but I can train them to think institutions and organizations accept that power the same way we do. is distributed unequally We need to strike a balance between High PDI showing respect to a new culture we Low PDI encounter and not being too cautious (being overly cautious can result in a loss 2 | INDIVIDUALISM VS COLLECTIVISM of authenticity). Indiv: to look after themselves and their immediate family only Perceptions ○ Example and why ○ High: initiative A person’s interpretation of reality Collect: Filtered experience ○ The fabric of the filter is determined by 3 | UNCERTAINTY AVOIDANCE our cultural background High: high need for security ○ We each have a unique filter. It is very Low: more willing to accept risks associated with likely that the same occurrences may be the unknown interpreted differently by people from diverse cultural backgrounds; we can 4 | MASCULINITY VS FEMININITY have a different sense of what is wrong Masculinity: the dominant social values are and right. success, money, and things ○ Great importance n earnings, Stereotypes recognition, advancement Femininity: social values are caring Bounded rationality: As humans, we can only absorb so much, so we tend to make +2 TIME ORIENTATION & INDULGENCE generalizations instead; The “lazy way” of thinking Hofstede’s Questions We group people based on shared Do nations differ? Can nations be clustered characteristics and ascribe them to a single class based on cultural similarity? What components (a We correct the accuracy of these through cultural small set of dimensions or characteristics) of dimensions — scientific measurements of culture. culture can enable us to classify culture-in-the-large (at a national level)? Cultural Models (Pioneers in the Intercultural Field) Hofstede’s Methodology (Late 1960s) Geert Hofstede Questionnaires were distributed to thousands of Charles Hampden-Turner IBM employees worldwide Fons Trompenaars ○ They answered the questions about Edward T. Hall work modes, methods, and meanings on desirable and desired situations and Hofstede’s Cultural Dimensions characteristics Factor analysis MAsculinity - Femininity 🐣 BA 158 NOTES: Cross Cultural Management ○ Results were subjected to factor analysis ○ Sequential: one thing at a time ○ Statistically reduces the number of ○ Synchronous: more than one thing at a dimensions it takes to describe or time generalize a phenomenon completely while losing as little information as Edward Hall’s Cultural Dimensions possible; means of narrowing down ○ Old version of regression analysis Space (causality of different dimensions to each Time one) Communication Developed a Matrix with quadrants ○ Ex. Age + Wealth = ONE dimension Orientation of Cultures American scientist and anthropologist Trompenaars’ Cultural Dimensions Took a different approach compared to Hofstede and Trompenaars-Turner because he focused on Universalism vs. Particularism the perspective of human common life Neutral vs. Emotional Cultures Space Individualism vs. Communitarianism ○ Personal distance or intimacy amongst Internal vs. External people. This distance differs from culture Past vs. Present vs. Future to culture: relations of a person to Achievement vs. Ascription personal space is determined not only Specific vs. Diffuse by culture but also by individual Sequential vs. Synchronic characteristics Time Unique Dimensions ○ In monochrome oriented cultures, time is This model, developed by Fons Trompenaars & linear (Ex. Japan, US, Germany) Charles Hampden-Turner, was an extension of ○ In polychrome oriented cultures, goals earlier works by Hofstede so it is important to and actions are done simultaneously or note the differences and new aspects in their in parallel (Ex. Latin America, Italy, work Portugal) Explained results in a linear fashion (by ranking) Communication Universalism vs. Particularism ○ Low range of context: people express ○ U: belief that ideas and practices can be themselves directly, straight to the point applied everywhere in the world without Ex. American & European modification ○ Large range of context: very indirect, ○ P: circumstances dictate how ideas and avoid saying no to not hurt others practices should be applied and some Ex. Arabic things cannot be done everywhere Neutral vs. Emotional Cultures The Globe Project (PPACHUGII) ○ How do we show emotions ○ N: emotions held in check. People try not Uncertainty Avoidance to show their feelings Power Distance EX. Japan Institutional Collectivism ○ E: emotions are expressed openly and In-group Collectivism naturally. People smile, may talk loudly Context Ex. PH, Latin America Gender Egalitarianism Achievement vs. Ascription Assertiveness ○ Ac: Performance or future orientation ○ As: Humane Orientation Use of time 🐣 BA 158 NOTES: Cross Cultural Management On the above nine dimensions Defining HRM Generally correspond with those of Hofstede and Organizational function that deals with issues Trompenaars related to people More scientific — Different from Hofstede in that HRM works to achieve the most efficient way many more researchers with varied perspectives that organizations can achieve and enforce: were involved The selection and development of More current — Provides a current people within the organization (effective comprehensive overview of stereotypes that are integration of skills/capacities and job geared towards our generation placements) The mobilization of each employee’s ORGANIZATION CULTURE potential so individual and group needs Corporate culture is a subtype. (ex. treatment of are met and the objectives of the customers and subordinates) organization are achieved Functions of Organization Culture An organization’s HRM activities include: HSPTCI Gives one a valid sense of identity - CHIPST Reinforces values Human resource planning Increases commitment Staffing and recruiting Serves as a control mechanism Performance management Shapes our behaviors Training and development Understanding Organization Culture Compensation and benefits Antecedents Industrial relations ○ Leadership influences Founder’s values and vision International Manager: you are supposed to know the Senior leaders’ behaviors labor codes of other countries ○ Industry and business environment ○ National culture HRM vs. IHRM Organizational culture Why IHRM? Organizational structure and practices Increasing globalization, firms and employees in Group and social processes them moving all over the world Collective attitudes and behaviors The role of HR in International Operations Organizational outcomes Managing a Multicultural Workforce Developing Managerial Talent in a Global COMPETING VALUES FRAMEWORK AND THE OCAI TOOL Business Environment 3 Approaches to I-HRM Introversion Extroversion Cross-cultural management approach Comparative HRM and Industrial Relations Flexibility Family or Clan Adhocracy Culture Culture (Human (Growth, Creativity, Risks HRM in multinational firms relationships) ex. Tech companies) The Field of IHRM: A Focus on Multinational Stability Hierarchy Culture Market Culture (Goal Companies (MNC’s) (Regulations, achievement, Competition, Conservative) Productivity) A MNC is a firm which owns or controls business activities in more than one foreign country These organizations are at the heart of the INTERNATIONAL MANAGER globalization process How to explore the implications that the process Big role, big responsibility, big compensation of internationalization has for the activities and EX. ADB — they pay for your rental, kids’ policies of HRM? education, give your spouse a job, car, and other EX. P&G, Unilever, JPMC, L’Oreal, Coca Cola perks 🐣 BA 158 NOTES: Cross Cultural Management Different Nationalities Involved in MNC’s Expectations (other country has the National or Country Categories initiative, others just follow the boss) Host Country where subsidiary is located Working depends on who the direct EX. Unilever PH — regional manager is office People won’t adjust to you Home Country where the firm Opportunities for us to learn headquartered EX. Unilever — UK (London); Reasons for International Assignments (POS) where global plans happen Position filling which is where the company New (technology transfer, skills gap) or started; Unilever Singapore is a vacant regional hub Organizational & Management development ‘Other’ country Training and development purposes, Employees of an International Firm assisting in developing common Host Country Nationals (HCN) corporate values Parent Country Nationals (PCN) Need for control, transfer of: knowledge, Third Country Nationals (TCN) competence, procedures, and practices You want them to see the best practices, Cross Cultural Teams and the reason for why the market share A cross-cultural team is a group of people from is different per country (e.g. Unilever different cultural backgrounds Indonesia’s top brand is Vaseline Members of the team may interpret the because of motorcycle culture) world differently Strategic development Example: a product-development team New markets, new products of English, German, and French employees Approaches to Staffing Various types of cross-cultural teams exist Three categories of employees in MNCs Regional headquarter Parent country nationals - employees Functional from the country in which the International Joint Ventures organization is based (HQs) EX. Unilever UK employee Functional Teams (FT) transferred to Singapore Multiple nationalities working in a particular Host country nationals - are employees functional area from the country in which the subsidiary Example: SAP Research is based i.e. A French person working in an organization based in France International Joint Ventures (IJV) EX. Singaporean employee Several nationalities represented in nearly equal transferred to Unilever UK proportions Third country nationals - Are employees Example — the Airbus A380 (wings developed in who are working in a different country UK, main body in Germany, tail in Spain, engine (i.e. Not a PCN or TCN) in UK, assembled in Toulouse) Heenan & Perlmutter (1979) define four staffing A + B = C (you form a totally new, unique strategies: (PREG) company) Ethnocentric All key mgmt positions are filled Variables that Moderate Differences Between Domestic by PCNs and I-HRM Little autonomy of subsidiaries -> Complexities power in the HQ 🐣 BA 158 NOTES: Cross Cultural Management Better for firms at the early work permit is stages of internationalization required Parent-Country Nationals Continuity of Advantages management Organizational improves, since control and HCNs stay coordination is longer in maintained and positions facilitated Government Promising policy may managers are dictate hiring of given HCNs international Morale among experience HCNs may PCNs may be improve as they the best people see career for the job potential because of Disadvantages special skills Control and and coordination of experiences HQ may be There is impeded assurance that Limited career subsidiary will opportunity comply with Geocentric company The best people for key jobs objectives, throughout the organization, policies, etc regardless of nationality: Disadvantages transnational approach The promotional Nationality is ignored in favor of opportunities of ability HCNs are Large numbers of PCNs, TCNs, limited and HCNs need to be sent Adaptation to abroad to build and maintain the host country international team may take a long Regiocentric time Like geocentric but much more Polycentric regionally focused (regional Recruits HCNs to manage autonomy) subsidiaries while PCNs occupy Advantages key positions at corporate HQs Reflects Mainly multinational approach sensitivity to HCNs local conditions Advantages A way to move Language and from a other barriers ethnocentric to are eliminated a geocentric Hiring costs are approach reduced and no Disadvantages 🐣 BA 158 NOTES: Cross Cultural Management May produce Rotational - commute for set period followed by regionalism break in home country (looking for Contractual - specific skills employees hired for more and more 6-12 months on specific projects autonomy) Virtual - employee manages international Career responsibilities team advancement of Home country base: relies on staff limited at communication technologies such as the regional telephone, email or video conferences level + frequent visits to the home country Determinants of Staffing Choices Type of International Assignments (nonstandard) Types of International Assignments Standard assignments CULTURAL DIVERSITY Expatriates = PCNs or TCNs in the host Forming meaningful connections in a world of diversity country Inpatriates = HCNs or TCNs in the HQ Definition Non-standard assignments Commuter, rotational, contractual, virtual Cultural differences between people and how assignment they interact with their environment Non expatriates Goes beyond gender, race, and age The Roles of an Expatriate Also includes language and jargon, the way we The Role of an Inpatriate dress, traditions, morality, religious beliefs, Links communication style, general appearance Key Issues in Dealing with Expatriates WHAT IT MEANS TO FEEL CULTURE SHOCKED Reporting structures - in home and host country Unanticipated response to a new experience Where are the key decisions made? brought about by different culture How will their performance be managed? ○ Naturally, we respond negatively to How can they be supported and developed? change Understanding the importance of value Could lead to stress and lack of chemistry in the workforce Why do expatriates fail? We aim to break down such responses and They cannot adjust to the culture of the new present management practices to prevent or country handle these Their partners or children cannot settle into the new country WHY FOCUS ON THE HOSPITALITY INDUSTRY? The working environment may be very different Industry itself is diverse: lodging, event planning, to what the expatriate is used to theme parks -- intersects with the tourism They are unable to fit into the culture of the industry organization Globalization and expansion (international The underestimated the challenges involved locations) entails developing a diverse workforce The task that they were given was unachievable Businesses cater to a diverse set of clients due External factors to tourism Individual experience is a key factor in customer Standard Traditional & Short-term assignments satisfaction Nonstandard assignments EX. Restaurants --- widen your menu to cater to Commuter - go home on every week/two weeks different customers 🐣 BA 158 NOTES: Cross Cultural Management CULTURAL DIVERSITY IN THE ASIA-PACIFIC REGION Miscommunication due to different languages Asian vs. Western values on Attire, Greetings, Uncertainty on how to interpret others’ behavior Punctuality, Holidays (CNY vs Ramadan) and how to respond The region has 1000+ languages and five ○ Ex. first-name basis is disrespectful in time-zones Asia, but may not be in other regions Hilton Hotels (US-based) with 350+ hotels in the Failure to understand can result in feelings of Asia-Pacific (APAC) Region with 500+ in the shame, exclusion and ostracization making Can lead to a lack of confidence towards culture ○ They retain the American branding Gaming industry in Las Vegas with plans to DISCRIMINATION expand to Macau “Culture, once developed, refuses changes” Can stem from stereotypes Importance Discrimination isn’t only present in recruitment, also manifests in preventing career progression 1) Innovation Incurs actual costs for the company when ○ We are forced to innovate because of lawsuits and claims are filed on discrimination cultural diversity ○ Provide new ideas from different ETHNOCENTRISM perspectives, views, and experiences Belief that one’s culture is superior over the ○ Increased creativity and novelty other ○ Acknowledging and taking advantage of Promoting one’s own culture can strengthen differences sense of community but too much of it can also ○ Effective knowledge transfer make a group ostracize others 2) Improved Customer Service Lack of appreciation for cultural differences ○ Improves the capacity of a company to Manifests in the industry with the thought that understand customer needs and cater to minority are inferior or low-skilled individual differences better Ex. Limited job positions for minority workers in ○ Helps build long term relations with the kitchen and housekeeping clients ○ Attracting more customers is important in TRAINING CHALLENGES a competitive industry Language training is no longer enough in order 3) Positive Corporate Image to work in another country; we need holistic ○ Makes the company feel like “home” by programs to prepare trainees for interaction with adapting to the community it serves the wider world ○ Image allows better recognition and Large salaries blind or intimidate applicants; acceptance among companies however, they fail to factor in the cost of living *Training costs for pursuing a solution to this MORE ON INNOVATION IN ORG CULTURE (Attract, problem pose their own financial risk or Accommodate, Retain) challenge 1) Attract Talent a) Attracts promising talent from a broad WHAT HAPPENS TO THE WORKFORCE WHEN YOU range of people to scout from FAIL TO MANAGE DIVERSITY? (H3L) b) Boosts workforce quality Hostility 2) Accommodate Talent Lower productivity 3) Retain Talent Lack of motivation Low retention rate especially of good talent Multicultural Challenges WHAT DO WE NEED? (FCH) MISCOMMUNICATION 🐣 BA 158 NOTES: Cross Cultural Management Fairness - equal opportunities ○ Different from onboarding and can be Contribution - maximizing the unique insights tailor-made to fit the clientele a company they have to offer services Harmony - working together to achieve common ○ Program should focus on communication goals and educational training to: Increase awareness of cultural Practices or Process diversity (differences and relations) KEY VALUES Diminish stereotypes by Willingness to recognize cultural differences understanding others’ cultures Willingness to understand cultural differences Improve positive attitudes Desire to value cultural differences towards differences among diverse groups Practical Recommendations Develop skills of managing cultural diversity issues and Culturally-sensitive screening tools expressing concerns when ○ Make use of unbiased structured facing obstacles interviews into the screening system ○ Must be carefully designed, enforced, ○ Add new standards like cultural and regularly improvised sensitivity tests in evaluating applicants ○ Execution will vary / employees Not a one-size-fits all approach EX. employ situational interviews Start with fact-gathering with behavioral questions (how initiatives to determine will you react to… how will you unresolved issues and work with an employee who… challenges how will you work with a muslim Choose independent experts to employee during ramadan?) host ○ Showcase the industry as a viable career Program must blend or integrate option for minorities several methods and Equal opportunities approaches Company policy awareness Several methods of instruction: Promote success stories to lectures, discussions, exercises, attract more talents into the games industry Connect to related Leaders must participate. Not Employee Relationship Management System just lower-level employees ○ Create a family atmosphere in the workplace A WIN-WIN SITUATION ○ Develop one-on-one relationships to Such programs may incur costs for the company make them feel listened to and → BUT they are investments that will benefit respected everyone in the long run ○ Some programs include Teaching languages to local THINGS TO KEEP IN MIND employees Not just fair treatment Celebrating different traditional Accept that we are all different and religious holidays Involving minority employees in company activities Diversity Management Training Program 🐣 BA 158 NOTES: Cross Cultural Management 🐣 BA 158 NOTES: Cross Cultural Management CLASS PRESENTATIONS Cultural Dimensions NORTH AMERICA Personal freedom Work ethics Open communication Diversity and inclusion Fun Facts Pop Culture: Huge contributors; entertainment industry is very dynamic Sports Fandom: birthplace of numerous sports (basketball, baseball, football, hockey, etc.) DIMENSIONS OF CULTURE SEVEN DIMENSIONS OF CULTURE 🐣 BA 158 NOTES: Cross Cultural Management MEXICO’S INFLUENCE ON NORTH AMERICAN CULTURE Deep People to People Ties ○ Travel ○ Immigration Collaborative Efforts ○ North American Leaders’ Summit Continent level dialogue Address shared challenges, strengthen partnerships, and advance shared priorities Growing Trade and Investment ○ Trade agreements and trade partners ○ Mexico as a source of labor SHARED HISTORY OF MEXICO AND USA Mexican revolution, WW2 Mexican-American War ○ Territorial disputes ○ Affected Southwestern US states (California, Texas, Arizona, New Mexico) INFLUENCES OF MEXICO ON US’ AND CANADA’S CULTURE Food: traditional dishes; Tex-Mex cuisine Language: Spanish Celebrations: Cinco de Mayo, Dia de Muertos, celebrate these holidays in Canada HUSTLE CULTURE Immigrants are at the forefront of innovation in the US Brings out more opportunities for less skilled native workers to specialize and increase their own productivity Creates a diverse and competitive environment 🐣 BA 158 NOTES: Cross Cultural Management ○ Golden Age of Flemish Art USA VS CANADA The art from this period had a More liberal aligned government policies profound influence on the The anger at being compared to one another Renaissance The existing harsh weather or environment ○ Gothic Buildings Reflected the wealth and cultural USA: very controversial and polarized political landscape sophistication of the Burgundian MEXICO: held by Spain; arguably the most Netherlands traditional/conservative; heavy Catholic and Spanish World War I and the German Occupation (1914-1918) influence; weakest economy Much of the fighting during the First World War CANADA: most liberal government policies, government took place on Belgian soil not formed by revolution, extremely densely populated Cultural Impacts on Work Culture ○ Workplace Adaptations: many WHAT IS SIMILAR? companies shifted their production European Heritage ○ Women in the Workforce: Women Indigenous Influence increasingly took on roles traditionally Multicultural held by men Shared Values Gabrielle Petit Cultural Impacts on Art, Literature, Music WEST EUROPE CULTURE ○ Literature reflected experiences Themes of suffering, resistance, HISTORY and the impact of war on civilian The Habsburg Monarchy (1438-1806) life Ruled over a vast and diverse empire for several The French Revolution centuries Brought down the Monarchy and the ancien Cultural Impacts on Work Culture regime ○ Arts and Sciences: fostering a climate of Cultural Impacts on Work Culture intellectual and artistic activity ○ Changing perceptions of: personal and ○ Education and Training: providing skills social advancement > obligation for professional roles On Art, Literature, and Music Cultural Impacts on Art, Literature, and Music ○ Nationalism was a strong driving force: ○ Cultural Flourishing: Vienna became a national identity was reflected even in major center for art, music, and fashion intellectual thought World War I and the Interwar Period ○ Mozart, Kokoschka, Wittgenstein Cultural Impacts on Work Culture World War II and Post-War Reconstruction ○ Women in the Labor-force: more women Annexation of Austria workers were recruited into skilled Cultural Impacts on Art, Literature, Music factory jobs ○ Cultural Revival: Vienna State Opera On Art, Literature, Music House; revival of Austrian cultural life; ○ Vibrant time despite economic development of a new sense of Austrian difficulties: Dadaism and Surrealism nationhood emerged The Burgundian Netherlands (15th-16th Century) Germany Dukes of Burgundy ruled the low countries The Reformation Cultural Impacts on Work Culture The religious movement that led to the creation ○ Standardization and Training: regulated of Protestanism and significant changes in the various aspects of labor Catholic Church On Art, Literature, Music Cultural Impacts on Religion, Art, Music 🐣 BA 158 NOTES: Cross Cultural Management ○ Religious Transformation: Christianity to Major Ethnic Groups Protestanism ○ Germanic Ethnic Group ○ Protestanism on artistic expressions: ○ Romance Ethnic Group church, art, and music ○ Slavic Ethnic Group ○ Nordic Ethnic Group Luxembourg Religion World Wars and Occupations Christianity Cultural Impacts ○ Still the most predominant ○ Resistance & Patriotism: reinforced Islam Luxembourg’s commitment to its Judaism sovereignty and cultural heritage Hinduism, Buddhism, Sikhism Secularism and Non-religion BACKGROUND OF WEST EUROPE Economy WEST EUROPEAN CULTURE Robust and dominating Language Germany and France as part of the largest France: French, German, Others economies in Europe, in terms of GDP Germany: German, Others 2024 GDP (in billion US dollars) Luxembuorg: French, English, German, Finance Industry Luxembourgish ○ West Europe’s economy functions with Dominant capitalism and the services and ○ Deutsch manufacturing industries serve as its ○ French pillars ○ Dutch ○ Capitalism Tradition ○ Tourism Industry Bastille Day (France) ○ Manufacturing Industry (automotive) — ○ July 14, 1870 BMW, Volkswagen (aerospace) ○ Fall of Bastille Political Structures ○ Fireworks, Dancing, Military Parades Representative democracy Oktoberfest (Germany and Luxembourg) ○ Parliamentary ○ Started 1810 ○ Presidential ○ Marriage of Price Ludiwg I and Therese ○ Federal constitutional of Saxony ○ Constitutional hereditary ○ Lederhosen & Dirndy ○ Monarchy Austrian National Day ○ Federal republic ○ October 26, 1955 Demographics ○ Freedom from 4 Allied forces Population Size: 430.51M ○ Celebrates different Austrians Age Distribution: 43.4 years as median age Carnival of Binche Birth Rate: below the replacement level of 2.1 ○ Europe’s oldest carnivals children per woman ○ Gilles are centerpieces Life Expectancy: among the highest globally King’s Day (Netherlands) West Europe’s average life expectancy is at 82.6 ○ April 27 years ○ King William-Alexander’s birthday Population diversity due to migration ○ Municipalities share their cultures ○ Intra-European migration Cultural Etiqutte ○ Non-European migration Clothing ○ Refugees and Asylum seekers ○ Prefer to dress formally Ethnicity ○ Sloppy attire is frowned upon 🐣 BA 158 NOTES: Cross Cultural Management Body Language Austria: low ○ Conservative actions ○ Close contact reserve for close people Uncertainty Avoidance Desires more stability and more Communication structured circumstances ○ Formal and polite Individualism Encourages individuality over ○ Shake hands conformity ○ Keep distance Punctuality 60-100 scale (Netherlands = 100) ○ Important value Masculinity Emphasizes ambition, acquisition, ○ Form of respect and achievement Gift Giving ○ Gesture of appreciation Long-term Tends to blend forward ○ Certain flowers are not advised Orientation Education Indulgence Values enjoying life and having fun Primary & Secondary ○ Main issue: language diversity 40-68 ○ Decentralized curricula 11 official languages of the A Study of the Work Culture European Union are integrated Academic exchange opportunities Higher Education ○ Bologna Declaration (1999) ○ 29 European Countries ○ Cohesive degree program frameworks Labor market relevance Compatible credit systems European dimension European Credit Transfer System Above 50 for Work-Life Balance and Job ○ Partnerships between European Satisfaction Universities ○ Voluntary ○ Intersects comparable degree programs Credit system Permanent transfer 6-D Model of National Culture (Gert Hofstede) Power Distance Embraces hierarchy with attempts to minimize inequality France: high 🐣 BA 158 NOTES: Cross Cultural Management ○ 500 million+ speakers in India, Nepal ○ Fun Fact: “Namaste” is a greeting and acknowledging the other person Urdu ○ Spoken in Pakistan and India ○ “Assalamu alaikum” reflects religious and cultural traditions Bengali ○ BDIN ○ 5th largest speaker base in the world Language = Culture + History + Identity ○ Like speaking Ilocano connects you to your roots, speaking Tamil in South India connects people to centuries of tradition South Asian English Hinglish Language (combination of Hindi and English) SOUTH ASIA RELIGION FASHION Hinduism (Core Beliefs) Drapped and Wrapped Brahman: the ultimate reality or universal soul, which is formless and infinite. Malong used by the Maranaos and Maguindanao is similar to the Indian style of clothing Atman: the individual soul is eternal and part of Brahman ○ Vibrant Colors Karma: cause and effect; one’s actions determine ○ Exquisite Embroidery one’s future life ○ Luxurious Fabrics Samsara: cycle of birth, death, and rebirth ○ Cultural & Religious Celebration Caste System ○ Intricate Jewelry ○ Varma System: divides society into four Major export in South Asia groups Excavation sites of prehistoric South Asia ○ A person’s caste is based on Karma has unearthed beads of various colors and ○ By fulfilling the duties of their caste shapes (dharma), they could be reborn into a Pieces were made to cover every available higher caste in the next life inch of unclothed body ○ The British colonial rule (19th century) Turban formalized the caste system ○ To cover their long hair ○ It was abolished in 1947 ○ Signify class, caste, profession, religion Influence: ○ The color has meaning ○ Architecture ○ Festivals ARTS ○ Yoga DANCE: Ballet-like form and expression Islam MUSIC: Ghatam, a water pot used as a Tawhid: oneness of God (Allah), creator and percussion instrument sustainer Prophethood LANGUAGE Five Pillars of Islam Hindi ○ Shahada (faith) ○ INNP ○ Salat (ritual prayers 5x a day) 🐣 BA 158 NOTES: Cross Cultural Management ○ Zakat (giving alms / charity) ○ Respect for authority and elders is ○ Sawm (fasting during Ramadan) central in both South Asia and the ○ Hajj (pilgrimage to the holy city of Philippines. This respect transcends Mecca) family gatherings and extends into the Afterlife (day of judgement) workplace Influence Traditional Gender Norms ○ Art & Lit ○ More women are leading in family and ○ Cultural Practices business ○ Political and Legal Systems Hospitality History ○ Guests are treated like royalty, even with ○ 1858-1947 (British India) limited means. ○ 1947 (Paritition) Social Harmony = Respect + Hospitality ○ 1971 (Bangladesh) ○ Samskara Islamic Laws in South Asia ○ Pakistan BUSINESS CULTURE No law can contradict the First Impressions Matter: emphasizes respect and tachings of Islam humility with traditional greetings like Namaste ○ Maldives Negotiation Process: deliberate, long-term Islam is the official state religion focused, and relationship-driven All citizens must be Muslim Hierarchy in Decision-Making: prioritize collective ○ Bangladesh decisions, often involving senior management or A secular nation, Islamic laws boards mostly play a role only on Building Relationships Beyond Business: building Personal Laws or Issues related personal relationships before finalizing deals to Family law Communication Style: indirect approach, ○ Afghanistan non-verbal cues Depends on the Ruler/Religion Under Taliban rule, it is very SIX DIMENSIONS OF CULTURE strict Power Distance Index: High – strong respect for Other Religions authority figures Buddhism Individualism: Predominantly collectivist Sikhism Motivation Towards Achievement and Success: Jainism Diverse but leaning on Consensus, conflicts are resolved by compromise and negotiation, FAMILY incentives such as free time and flexibility are Family members are expected to care for elderly favored relatives at home Uncertainty Avoidance Index: Moderate to low Unmarried children (daughter) stay with her uncertainty avoidance index; tend to be more parents accepting of something new and different Arrange marriages Long Term Orientation: Leaning on short-term Concept of “Izzat” orientation; values tradition, social hierarchy, and fulfilling duties, focusing on the past and present SOCIAL CUSTOMS Indulgence: Very restrained; stricter social norms, Respect Across Borders and indulgence in personal desires or ○ Mano po gratification is often limited by religious or social ○ Prañama (touching elders’ feet) expectations Hierarchical Respect NORTH AFRICA 🐣 BA 158 NOTES: Cross Cultural Management Berber: the language of the indigenous Berber General Background people is still spoken in Morocco, Algeria, North Africa is the northernmost part of the African Tunisia, and Libya continent, bordered by the Mediterranean Sea to the French: Due to the colonial history of France in north, which separates it from Europe. The regions North Africa stretches Geographic Features: Tunisia: Mosaic of Cultures Nile River in the East Home to the cosmopolitan capital city of Tunis, Atlas Mountains in the West the ancient ruins of Carthage, the Muslim and Sahara Desert in the South Jewish quarters of Jerba, and coastal resorts Geography: outside of Monastir, Tunisia Algeria Famous and Traditional Dishes Egypt The cuisine of North Africa is packed full of Libya colorful spice mixtures, as cities like Sfax in Morocco Tunisia are home to large spice markets Sudan Music Tunisia Dynamic mix of traditional rhythms and Western Sahara instruments blended with modern influences Arab, Berber, and Mediterranean influences Traditional music styles 200 million people of combined ○ Andalusian Music Religion ○ Berber (Amazigh) Music Islam: the most dominant religion ○ Gnawa Music ○ Emergence to the region dates back to Popular Music Styles the 7th century as part of Muhammad’s ○ Chaabi Music mission as he instructedthe Muslims to ○ Rai Music (Contemporary) take refuge in the present dat Ethiopia ○ Pop and Fusion Music ○ Preaches that there is only one God and Clothing that Muhammad is the last prophet Traditional vs. Modern Attire Christianity ○ In North Africa, workplace attire varies ○ Coptic Orthodox Church – religious depending on the country, industry, and minority the formality of the environment. ○ Some Christian communities exist in ○ Traditional clothing is still common in Algeria and Tunasia, mainly composed of many professional settings, but modern expatriates or descendants of Europeans business attire has become the norm in from the colonial period more urban and corporate contexts. Judaism ○ Workplace Attire ○ North Africa had significant Jewish For Men populations, especially in Morocco, Western Business Suits Algeria, and Tunisia. Shirts and Trousers ○ Jewish population has significantly Djellaba or Gandoura declined since the mid-20th century due Chechia to emigration to Israel, Europe, and the For Women: Americas. Western Business Attire Language Hijab Arabic: the official and most widely spoken Kaftan or Tunic with language across North America Trousers Abaya or Jibab 🐣 BA 158 NOTES: Cross Cultural Management ○ In North African worklpace, clothing ○ Patience and politeness reflects a balance between modernity Libya and tradition ○ Guests are highly valued ○ Taking pictures is considered intrusion of Cultural Taboos privacy Religious and Cultural Sensitivity ○ Privacy and general courtesy = fulfilling 1. Pork Consumption (abstain) relationships 2. Alcohol Consumption (less socially acceptable) Tunisia 3. Public Display of Affection (inappropriate esp. ○ Family unmarried) ○ Customary to bring pastries, nuts, fruit, 4. Crticism of Religion (highly offensive → serious cake, candy, or flowers when invited consequences) Sudanese Social Etiquette ○ Respect of elders or “Al-Ta’reef” 1. Touching (of the opposite sex, esp. strangers) ○ Hospitality or “iftar” 2. Shoes (removed) IN GENERAL 3. Left hand (unclean) ○ Hospitable in nature Dress Code ○ Highly religious 1. Modesty (not revealing) ○ Practice modesty 2. Shoes (inside mosque = disrespectful) ○ Social interactions ○ Bargaining & tipping Egypt Renowned for its rich historical legacy, Egypt is Musical Festivals considered a central hub of culture due to its North Africa is big on carnivals and festivals that religion, arts, and literary contributions to the are deeply rooted in local traditions and history region Gnaoua and World Music Festival Egypt’s ancient civilization, architectural marvels, ○ Part of the UNESCO list of Intangible monuments, and emblematic attractions make it Cultural Heritage of Humanity, and a popular destination. brings together Business Opportunities Sandbox (El Gouna, Egypt) Investment in the exploration, production, and ○ Annual electornic festival that takes development of infrastructure to support energy Rai D’oran (Oran, Algeria) exportation ○ Musicians come together to celebrate Algeria: world’s 4th largest gas exporter this folk Libya: home to the largest oil reserves in Africa Fabrika (Hammamet, Tunisia) Ecotourism projects. Tunisia, egypt, and Morocco ○ Musicians come together to celebrate pride themselves on ancient architectural this folk genre (rai music) from Bedouin marvels shepherds) North African Customs and Traditions Morocco (Tapestry of Influences) Morocco As a nation, Morocco is a harmonious blend of Arab, ○ Respect, social harmony, and hospitality Berber, and French cultures, which is reflected in every ○ Dress modestly facet of their daily lives. They also maintain a balance ○ Bargaining between tradition (values of family and home at the core) Algeria ○ Honor and respect Pre-Colonial African Culture ○ Greetings: slight bow Religious Beliefs: Deep connection to spiritual Egpyt forces and ancestors, who maintained moral ○ Appearances order ○ “Baksheesh” – tipping small amounts 🐣 BA 158 NOTES: Cross Cultural Management Moral accountability: Fear of spiritual retribution ○ Arises from colonial bureaucracies that discouraged theft and other immoral acts imposed rigid systems, yet corruption Communal living: Community well-being and instability made governance prioritized over individual gain unpredictable Shared responsibilities: Collective farming and Long Term Orientation: Short-Term Oriented joint ownership of succes or failure within the ○ More-risk averse likely to resist change communiy Colonial African Culture Introduction of New Values: Deep connection to spiritual forces and ancestors Disruption of Communalism: weakened by focus on cash-crop farming and expert economies Underarming Traditional Leaders: replacement of traditional leaders with colonial-appointed chiefs Economic and Cultural Erosion: shift from subsistence farming and self-sufficiency to NORTHERN EUROPE external economic dependency NORWAY Major Historical Events 872: The Battle of Hafrsfjord 1349: Black Death 1814: Constitution Colonial History Vikings Era Christianization Considered as the Age of Exploration of Norway, establishing colonies and expanding trade Danish-Norwegian Empire Dual monarchy until the 19th century Modern North African Business Culture Even after independence, Norway continued to Power Distance Index: High participate in shipping and trade ○ Leaders become more authoritarian and Political and Trade detached → colonial era governance 19th century: implementation of domestic structures governance Individualism: Collectivist 1905: the union with Sweden lasted until 1905 ○ While individualism and authoritarian when Norway gained independence power dominate urban areas, the Present times: Norway is a stable democracy and traditional collectivist mindset persists in an active member of organizations family-run business and rural Education Systems communities Public Schools: free and highly accessible Masculinity: Balance between feminine and Higher education: variety of programs in masculine sciences, artsm and technology ○ Masculine: focused on competition and CULTURE success though feminine values like Power Distance: 31; equality and flat org cooperation remain prevalent structure; employees are encouraged to voice Uncertainty Avoidance: High Uncertainty their opinions Avoidance 🐣 BA 158 NOTES: Cross Cultural Management Individualism: 81; personal autonomy and Uncertainty avoidance: 23; adaptable to self-reliance; strong sense of community despite changing circumstances; open to new ideas; Janteloven Femininity: 16; work-life balance; high productivity Uncertainty avoidance: 50; comfortable w/ rates; businesses shut down around July to let ambiguity and change; adaptive problem-solving people enjoy summer; employees are entitled to and encourages creativity 5 weeks of paid vacation/year, parents split 32 Femininity: 8; work-life balance, collaboration and weeks paid time off work after giving birth; teamwork coming to work sick is considered disrespectful Long-Term Orientation: 55 LTO: 59; flexicurity; hire and fire at will; a-kasse Indulgence: 55; Friluftsliv - “outdoor life”; spend (unemployment insurance fund); two years’ time in nature and enjoy life’s simple pleasures dagpenge (unemployment benefit); programs for Context: clarity and honesty in communication; unemployed people; subsistence allowance transparency Indulgence: 70; Hygge – taking time-off to enjoy Trust: honesty and transparency; low levels of things; celebrating the small joys in life; equality corruption and well-being of everybody; high emphasis on social welfare; one of the highest-paying taxes in DENMARK the world Major Historical Events Context: direct and honest communication style; 1349: Bubonic Plague efficiency 1397: Union of Kalmar Trust: general societal trust; social welfare 1940: Invasion of Nazis responsibility Vikings Period Trade and business SWEDEN Social structures Major Historical Events Christianity Viking Age: expeditions along the Baltic Coast Continuous expansion 11th and 12th Centuries: Christian Kingdom Religious traditions 14th century: Black Death pandemic and Kalmar Political History Union 10th century: united under a single crown after 17th century: great European power being ruled by absolute monarchs 18th century: lost in Northern wars 19th century: significant political reforms (i.e. Colonial history Constitutional Monarchy) Established colonies in North America (New 20th century: occupied by Germany during WW2 Sweden) Education System Colonized territories in the Caribbean, Gambia, Folkeskole: parents are required to enroll their and West Africa kids Modern Neutrality: Sweden shifted to a policy of Upper Secondary School: general, vocational, or neutrality, maintaining this stance during both World technical tracks Wars, which helped it avoid devastation and contributed Higher education: variety of programs (e.g. arts, to its industrial growth. sciences, and engr) Political Structure CULTURE King as Head of State PDI: 18; equality and decentralized Prime Minister decision-making; flat org structure; equal rights Education System and opportunities; consensus-based decision Learning with play, community and equality making; direct and informal communication Supports various educational paths, including Individualism: 89; self-reliant and personal vocational training freedom; indiv goals and achievements; indiv CULTURE rights 🐣 BA 158 NOTES: Cross Cultural Management PDI: 31; informal addressing; decentralized decision-making; transparency and open communication Individualism: 71; strong connections based on mutual beneift; indiv achievements; strong distinction between work and priv life Uncertainty avoidance: 29; open to change and innovation; innovation and adaptability Femininity: 5; work-life balance; gender equality; reducing workplace competition and encouraging equal participation LTO: 53; sustainable growth and short-term goals Indulgence: 78; personal freedom and leisure Context: Direct communication; transparency; Trust: universalized; rely on societal norms SUMMARY ONION MODELS 🐣 BA 158 NOTES: Cross Cultural Management Chief Diversity Officer ○ Effective governance Diversity Profiles Go beyond your assigned cases Highlight best practices globally and how it is translated to the PH ○ If wala, try to recommend EX. Accor Group Brand Portfolio How do they prevent discrimination in the workplace? How do they promote equality in the workplace? Do they highlight gender diversity (% of women, % of men) Inclusion of PWDs Richness of ethnic differences (% of Hispanics, % of Americans, etc.) What they value ^^ Group Diversity and Commitment you need to follow Diversity Programs ○ How are they against discrimination External / Internal ○ Opportunities for all Women going to top positions PWDs Inclusion ○ Diversity training Awareness raising for employees Managers also undergo this training Accor Academy Network ○ Publicizing the actions we take ○ Sharing our Demands Everybody in their system to have this diversity (e.g. suppliers, contractors, etc.) ○ Reflecting diversity in our offer of products and services Specific program for women ○ Encouraging debate and assessing our diversity & inclusion initiatives Employee surveys to measure impact of their actions Feedback from employees