Cross-Cultural Issues: Part 2
By Michael S. Schell, CEO RW³ and Charlene Marmer Solomon, Executive VP RW³
Cross-Cultural Issues, Part 2
As a stated in Part 1, global managers encounter cultural issues every day. Read these cultural articles for an important background that will enhance your effectiveness in the global marketplace.
All cultural models provide the opportunity to create a template—or framework—that you can overlay on all cultures once you have an understanding of the aspects of cultural behavior. Although culture is made up of both visible and invisible characteristics, having this framework gives you a starting place. The eight aspects of culture constructed by Caliugiri & Associates’ Intercultural Awareness Model (ICAM)© gives you an enormous head-start towards comprehension and appreciation of cultural differences.
The eight dimensions of the ICAM© are:
Hierarchical vs. Egalitarian Structures
Formal vs. Informal Style
Group vs. Individual Interests
Interpersonal vs. Transactional Relationships
Direct vs. Indirect Communication
Controlled vs. Fluid Time
External vs. Internal Control
Status vs. Balance Motivation
Egalitarian vs. Hierarchical Structures
Cultures around the world have very different views on how a society should be structured, how power and authority should be allocated, and how organizations should be run. In addition to shaping an individual’s perception about his or her place and potential in society, this aspect of culture also dictates the amount of responsibility and control people will be given – and are comfortable taking.
Hierarchical: In hierarchical societies, social and organizational structures are highly stratified. Knowing one’s relative position on the social or professional ladder is important, helps reduce ambiguity, and will dictate how people should relate to one another. People in positions of authority are automatically treated with formality, respect and deference. A chain of command will be rigidly adhered to, and the role of the leader is paternalistic and autocratic, the ultimate decision-maker is accessible to few. The leader’s status is reflected in his/her conduct and the visible trappings of authority.
Egalitarian: Egalitarian societies tend to be more open and fluid, allowing individuals equal access to opportunities. The role of the manager is that of coach, providing the resources and motivation to realize their potential, empowering them to make decisions and facilitating access to people at all levels of the organization. This approach is reflected in a casual appearance and demeanor, but this inclusive approach should not obscure the fact that the leader still wields great power and authority.
Formal vs. Informal Style
As discussed in the “Hierarchy” aspect of culture, status, rank and power exist to some degree in every society. An external manifestation of the hierarchical structure is reflected in the level of formality versus informality in the society.
Formal: In formal cultures, the size and location of offices in a business setting, the quality of dress and accessories, even the model of car that you drive, are all extremely important. These symbols are cues to others about your rank in the world and indicate how you perceive your standing in society – and expect to be treated by others.
The observance of protocol and etiquette in both professional and social situations is critical. Proper use of titles and honorifics when addressing people is important. Formality extends into written and verbal communication. For example emails may be as formal and lengthy as a letter, and a secretary may still answer the boss’s phone.
Informal: In informal cultures, the visible trappings of authority are more obscure. Indeed, it can be very difficult for a newcomer to make sense of the situation and discern a hierarchical structure or who’s-who on the organizational chart. A CEO, for example, may sit in an open cubicle alongside other employees, be addressed on a first name basis, dress as casually as the other staff and drive a practical, family car. But make no mistake, there is a level of acknowledgement of–and deference to–status in informal cultures as well. Therefore, subtle gestures take on great meaning. Business position titles imply all the same levels of authority as they do in a formal culture but will be used less frequently.
Group vs. Individual Interests
Cultures will vary in the extent to which they place the group’s interests above individual needs.
Group: In cultures valuing the group’s interest over the individual, people define themselves by their affiliation to a group, its identity, values, and achievements. These societies believe that the well-being of the individual, social group or work team, and society in general, are all best served by being in harmony with one another. The pressure to conform often leads the individual to selflessly sacrifice individual rights, ambition, and freedom of expression for the greater good of the community.
Decision-making will be consensus driven. This may initially slow down the process, but the philosophy is that since the entire group will be affected by the outcome, everyone needs to be consulted. This inclusive approach–with everyone informed and onboard–often leads to a slower start, but ultimately results in a smoother implementation.
Individualistic: In more individualistic societies, people expect to be personally recognized and rewarded for their unique contributions. They often prefer to work and spend time alone, and when part of a team, they will focus on their individual role. These societies are very concerned with protecting individual rights, sometimes at questionable cost to the society at large. People are encouraged to express their individuality and uniqueness whether it be in their appearance, style of communicating, or the interests and activities that they pursue.
When it comes to making business decisions, the individual is expected to take initiative, take action – and take responsibility if things don’t work out as planned! As the key to advancement is self-promotion, meetings are used as an opportunity to speak up, make one’s mark, forge allegiances and advance individual agendas.
Interpersonal vs. Transactional Relationships
The importance of relationships, the expectations placed upon them, and how they are managed in and out of the workplace is another distinguishing aspect of culture.
Interpersonal: Interpersonal societies will devote a lot of time and effort into relationship building and building trust before entering into business dealings with someone. This may result in leisurely business dinners involving spouses or meetings that are preceded by small talk, personal questions, and the showing of family photos! Relationship-oriented types are typically not comfortable with people who are not a part of their “inner circle” and prefer to surround themselves, both professionally and socially, with long-standing relationships that they have carefully nurtured. Interpersonal societies will probably place greater value on the relationship than on the speed and efficiency of the transaction, as they believe that the success of the business is ultimately relationship-driven.
Transactional: By contrast, in transactional societies, the focus is on the transaction and who can offer the best terms rather than the relationship. While there is an openness to meeting new people, business relationships will probably only survive the lifetime of the deal in question. The bottom line is that people don’t need to know – or like – the partners or clients that they are doing business with. Lengthy lunches or personal small talk is normally dispensed with so people can “get down to business”. Social functions are considered to be just another opportunity to network and talk business. Trust is assumed rather than earned – and is always backed up by lawyers and contracts.
Direct vs. Indirect Communication
The way people communicate will differ across cultures. This is probably one of the most critical elements to understanding a society.
Direct: In cultures with a direct communication style, people are encouraged to say what they mean as clearly and briefly as possible. There are few non-verbal nuances; the words stand on their own. Information is meted out on a “need to know basis” – and will lack the detail and context required for interpretation by people from Indirect Communication societies. Being an effective presenter with skill in managing audio visual aids – in other words, “getting the message across” – will be prized over formality and eloquence. Use of humor, expressing disagreement, challenging a subordinate – or boss! – all are considered appropriate.
Indirect: In societies where the communication style is more indirect, there is less reliance on the explicit verbal message to convey meaning. Tone of voice, facial expressions, body language, non-verbal gestures–in addition to the context in which the conversation is taking place–are all important contributing parts of the message. Communication, in these cultures, is far subtler. One needs a good understanding of the culture to be able to interpret what is being communicated. For example, the use of silence or an embarrassed smile may be difficult to interpret by those from direct communication societies. Conflict should be avoided, or handled privately and diplomatically. Use of irony or sarcasm in humor in not appreciated. Eloquence and expansiveness are valued, and leaders will be evaluated on their oratory skills.
Controlled vs. Fluid Time
Cultures differ in the extent to which they view time. In cultures where time is controlled, it is treated as a commodity: it can be bought, saved, spent, and wasted. In cultures where time is viewed to have more fluidity, there is more flexibility and greater emphasis on relationships and how work is accomplished – as opposed to meeting schedules and keeping deadlines. Due to this cultural difference the levels of punctuality will vary tremendously across cultures.
Controlled: In Controlled Time cultures, promptness, adherence to schedules, and being accountable for time are expected behaviors, and are a cornerstone of how business and social life are conducted. Arriving late or missing a deadline is considered rude, disorganized, and even inexcusable. There is great emphasis in the business culture of these societies on time management. Meetings will begin and end on time and are likely to be highly structured with a set agenda. Planning and decision-making will focus on both long terms goals and short term gains, with objectives and strategies constantly being changed to reflect anticipated developments in the business environment.
Fluid: In cultures that view time as having greater fluidity, people tend to be more fatalistic over their ability to control any aspect of their environment and in particular, time. For example, they can’t be held accountable for the traffic jam that held them up if time is an element that’s simply out of their control.
There is also a trade off between the needs of people and sticking to a schedule. If faced with receiving a client who dropped by unexpectedly or showing up promptly for a meeting, people will always take precedence over adherence to watching the clock, to the great frustration of people from controlled time societies. In terms of meeting protocol, time frames and agendas are set and adhered to far more loosely – if at all. Fluid Time cultures tend to have an orientation to time and decision-making that is firmly rooted in the past. Leaders will look to historical precedent when making decisions. Planning and decision-making will be a much longer, detailed process, and less subject to constant change or revision.
External vs. Internal Control
Societies vary in their attitude towards change, experimentation, and new ideas. This aspect of culture also measures tolerance for ambiguity and perceived sense of control over the environment and personal destiny. This translates into different levels of receptivity towards innovation and risk-taking.
External: In externally controlled cultures, there will be a deeper desire to maintain the status quo and to reduce ambiguity whenever possible. In these societies, change and risk are viewed as a threat to the established order, and therefore must be strictly managed and limited. New ways of doing things may initially be viewed with skepticism and will involve extra time and training to get the necessary buy-in for a successful implementation. Societal or organizational structures will be more rigid, with many built-in checks and balances, which maintain the status quo, and impede the introduction of new initiatives. Individuals in these societies do not feel in charge of their personal destiny in these societies–-nor are they motivated or rewarded for “thinking out of the box”, but rather diligently do their prescribed job and progress slowly up the company ladder.
Internal: In cultures where the individual has an internal locus of control, there’ll be a greater comfort level with change and innovation. Indeed, change is considered to be an opportunity for improvement and is often generated from within the society or organization, rather than being imposed externally. Risk-taking is encouraged and failure is not stigmatized, but rather viewed as a necessary price of the constant quest for innovation and improvement. Internal control—or change-oriented societies and organizations–need more flexible structures and regulatory systems to thrive. Similarly, individuals within these cultures are encouraged to show initiative and creativity and are not constrained by chains of command in communicating their ideas. Their internal sense of control over destiny is acknowledged by the rewards they receive for demonstrating values consistent with a change-oriented culture.
Status vs. Balance Motivation
While we’d all like to think that we strive for balance in our professional and personal lives, cultures differ in terms of the values that are promoted by the society regarding the relative importance of work versus personal time. These differences are not confined to individual attitudes and behaviors but are reinforced by societal values in the form of organizational and government policies regarding vacation time, flexible work arrangements, child care provisions, and other family benefits.
The more egalitarian, individualistic societies tend to produce more achievement oriented individuals, who are highly motivated by the ideals of personal achievement, self-fulfillment, and possibly economic gain and material rewards. These individuals are willing to sacrifice personal time and work into the night and on weekends in order to achieve their professional goals. These are the people who network at every opportunity and talk business at social functions. Financial security is not necessarily the end goal; individuals in these societies often define themselves largely by their professional image and therefore cannot easily step off the treadmill for risk of losing a part of their identity.
In Work-Life Balance motivated cultures, there is a greater desire to separate one’s professional life from one’s personal life. One is less likely to socialize with colleagues outside of work, and would tend not to discuss business at a social function. Personal achievement and economic gain take second place to the quality of one’s life. In many of these countries, government or corporate policies enforce the taking of lengthy vacations and limit work hours. Failure to take one’s full quota of paid leave is considered foolish. The person who is always the last one to leave the office is not considered to be dedicated, but inefficient if they can’t complete their work within the allotted time.
Similarly, balance orientation is more commonly found in societies with extensive welfare state systems that guarantee a decent standard of living regardless of personal circumstances and whose companies offer a guaranteed but slow, measured rise up the company ladder. In terms of material gain, then, these societies do not offer the same incentive for achievement-oriented behaviors.
Conclusion
Now that you have an overview of cultural attributes, you should be able to think of societies with a framework to use that will help you understand behavior. Let us know what you encounter by contacting us at info@rw-3.com
