How does National Culture influence Behavior?
Individualist US, Australia and UK Loyal to self and immediate family Expect to take care of oneself | Collectivist Asia, Middle East Loyal to wider group Closely bonded social network, members look after each other |
Low Power distance UK, Australia, US Subordinates expect to be involved in decision-making Flat and decentralised structure | High Power distance Asia, Middle East Subordinates expect to be told what to do Ideal boss is a benevolent autocrat Top-down, centralised decision-making |
Low uncertainty avoidance Anglo, Nordic Dislike rules, written/ unwritten Less formal and standardisation Flexible, ready to accept changes | High uncertainty avoidance Germany, Japan Prefer security, order, control Prefer rules, written or unwritten More formal and standardisation Reluctance to accept change |
Masculinity Japan, Germany culture values assertiveness, competition, and materialism apologies are a sign of guilt, weakness and lack of confidence. | Femininity India, Indonesia Value spirituality, relationships and show concern for others Apologies used to promote social bonding and show empathy, e.g. Indonesia. |
Long-term Orientation China, HK, Japan Focus on the future Delay short-term enjoyment for future generations Save for the future Tradition adapts to circumstance | Short-term Orientation Anglo countries Focus on present and past Spend and instant gratification. Traditions are sacred |
Restraint East Asia, Muslim Perception of fate, pessimism Freedom of speech is not seen as important Leisure time is not so important | Indulgence Latin America Enjoy life, fun, optimism Perception of personal life control Leisure time is important Work-life balance Value freedom of speech |
Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are influenced by culture. He analysed a large database of employee value scores collected within IBM between 1967 and 1973. Known as the Dimensions Approach, he is frequently cited in universities teaching global businesses management.
Hofstede’s country comparison tool provides useful insights for executives going overseas for the first time, not to assume that their culture is similar to the host country they are operating in. Try this tool:
Differences matter, and the world is not as flat as you think.
Another researcher I find insightful is Trompenaars, whose study identified seven dimensions. Five focus on relationships between people, two dimensions concern time management and a culture’s relationship with nature.
For instance, in Achievement cultures, –status is awarded based upon accomplishments. Title is given when relevant to the task. Respect for superior in the hierarchy is based on how effectively his or her job is performed. A young IT executive can be rewarded handsomely based on his skills valued by the market.
Whereas in Ascription cultures, status is ascribed based upon social position, age. A company where most senior managers are male, middle-age, and qualified by their backgrounds. One is born or married into Royalty, and not through accomplishments.
How much do you observe that your company’s culture is influenced by the national culture of its members? How do members view what is acceptable behavior? Do employees/ managers from diverse cultures have the same perception of corporate values such as loyalty, trust, teamwork, results or even approach to conflict?