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Copyright 2000. Nicholas Brealey Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable

RidingtheWavesofCulture
UnderstandingCulturalDiversityinBusiness

FonsTrompenaarsandCharlesHampdenTurner

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Thisneweditionfirstpublishedby
NicholasBrealeyPublishingin1997
Copyright 2000. Nicholas Brealey Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable

Reprintedwithcorrections1998,1999,2000

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Text1993,1997InterculturalManagementPublishersNV
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Contents

PrefacetotheSecondEdition ix

1 1
AnIntroductiontoCulture

TheImpactofCultureonBusiness 2

HowProvenFormulasCanGivetheWrongResult 5

CultureIstheWayinWhichPeopleSolveProblems 6

TheBasisofCulturalDifferences 8

StructureoftheBook 11
Copyright 2000. Nicholas Brealey Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law.

2 13
TheOneBestWayofOrganisingDoesNotExist

WhattheGurusTellUs 13

NeglectofCultureinAction 14

CultureasaSideDish? 16

AnAlternativeApproach 17

Summary 19

3 20
TheMeaningofCulture

TheConceptofCulture 20

TheLayersofCulture 21

CultureDirectsOurActions 24

Cultureasa"NormalDistribution" 24

CulturesVaryinSolutionstoCommonProblemsandDilemmas 26

Summary 27

4 29
RelationshipsandRules

TheUniversalVersustheParticular 31

UniversalistVersusParticularistOrientationsinDifferentCountries 33

UniversalismVersusParticularisminInternationalBusiness 38

ReconcilingUniversalismandParticularism 43

PracticalTipsforDoingBusinessinUniversalistandParticularistCultures 48

5 50
TheGroupandtheIndividual

ConceptsofIndividualismandCommunitarianism 52

Doesmodernisationimplyindividualism? 53

Whichcommunity? 54

Isindividualismacorporaterequirement? 56

IndividualismVersusCommunitarianisminInternationalBusiness 59

Individualism,CommunitarianismandMotivation 61

DifferencesinOrganisationalStructure 63

ReconcilingIndividualismandCommunitarianism 63

PracticalTipsforDoingBusinessinIndividualistandCommunitarian 67
Cultures

6 69
FeelingsandRelationships

AffectiveVersusNeutralCultures 69

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DegreesofAffectivityinDifferentCultures 72

InterculturalCommunication 74

ReconcilingNeutralandAffectiveCultures 76

PracticalTipsforDoingBusinessinNeutralandAffectiveCultures 79

7 81
HowFarWeGetInvolved

SpecificVersusDiffuseCultures 81

NegotiatingtheSpecificDiffuseCulturalDivide 87

TheEffectofSpecificDiffuseOrientationonBusiness 90

TheMixofEmotionandInvolvement 94
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ReconcilingSpecificDiffuseCultures 97

PracticalTipsforDoingBusinessinSpecificandDiffuseCultures 100

8 102
HowWeAccordStatus

StatusbyAchievementandEconomicDevelopment 104

AscriptionandPerformance 107

AchievementandAscriptionOrientedCultures'Negotiations 108

TowardsReconciliation 114

PracticalTipsforDoingBusinessinAscriptionandAchievementOriented 118
Cultures

9 120
HowWeManageTime

TheConceptofTime 120

OrientationstoPast,PresentandFuture 122

SequentiallyandSynchronicallyOrganisedActivities 123

MeasuringCulturalDifferencesinRelationtoTime 125

TimeHorizon 126

TimeOrientationsandManagement 129

ManagingChangeinaPastOrientedCulture 133

PlannedSequencesorPlannedConvergence? 135

ReconcilingtheSequentialandtheSynchronic 137

PracticalTipsforDoingBusinessinPast,PresentandFutureOriented 138
Cultures

10 141
HowWeRelatetoNature

ControllingNature,orLettingItTakeItsCourse 141

ControlandSuccess 142

Howimportantisaculture'sorientationtonature? 147

ManagingbetweenDifferentOrientationstoNature 148

Ismodernmanagementabattlebetweenprivateagendas? 150

ReconcilingInternalandExternalControl 151

Summary 154

PracticalTipsforDoingBusinessinInternalandExternalOriented 155
Cultures

11 157
NationalCulturesandCorporateCulture

DifferentCorporateCultures 157

TheFamilyCulture 158

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TheEiffelTowerCulture 166

TheFamilyandtheEiffelTowerinConflict 171

TheGuidedMissileCulture 172

TheIncubatorCulture 175

WhichCountriesPreferWhichCorporateCultures 177

Summary 179

12 182
TowardsInternationalandTransnationalManagement

ProblemsfortheCrossCulturalManager 183

InternationalandTransnationalCompanies 186
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HumanResourceManagementintheFuture 189

TheGrowthofInformation 189

ImplicationsforBusinessStrategy 191

LocalFreedomtoPrioritiseEmploymentValues 192

LocalFreedomtoReward 193

TheErrorCorrectingManager 194

13 195
ReconcilingCulturalDilemmas

AwarenessofCulturalDifferences 195

RespectingCulturalDifferences 197

ReconcilingCulturalDifferences 200

14 212
SouthAfrica:TheRainbowNation

DilemmaMappinginSouthAfrica 213

ComparingAfricanandWesternMentalModels 216

15 221
Gender,EthnicityandFunctionalDiversity

GenderDifferencesWorldwide 221

DiversityintheUSA 224

UniversalismParticularism 225

TheGroupVersustheIndividual 226

ToShoworNottoShowOurEmotions 227

Howfardowegetinvolved? 228

Ishighstatusearnedthroughachievementorascribed? 230

ControlorBeControlled:AmericanBeliefinInnerDirectedness 232

HowIsTimeOrganisedintheUSA? 233

FunctionalDiversity 235

DiversityinIndustries 238

DatabaseMining 240

GeneralConclusions 242

Appendix1 243
Examplesfromthe16QuestionsUsedtoMeasureCorporateCulture

Appendix2 245
TheTrompenaarsDatabase

Appendix3 257
UnitedNotions

Index 259

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PrefacetotheSecondEdition
Sincethefirsteditionofthisbookwaspublishedwehavecarriedoutagreatdealmoreworkforourdatabaseanditnowconsistsof30,000participantswhohave
completedourquestionnaire.Thisnewmaterialhasenabledustorefineanddevelopourideasandwehaveincludedourlatestthinkinginthisrevisededition.

Inadditiontoupdatingtheoriginalresearchfindings,wehaveaddedthreenewchaptersandarevisedappendix.Chapter13analysesamethodologyforreconciling
culturaldilemmasanddevelopingtransculturalcompetence.Chapters14and15discussdiversitywithinratherthanbetweencountries,describingethnicdifferences
inSouthAfricaandtheUSAandalsoconsideringtheeffectoncultureofgender,age,functionalbackgroundandorganisationalstructure.Appendix2outlinesour
researchmethodologyinmoredetail.

Thefirsteditionofthisbooktookovertenyearstocomplete.ManypeoplewhosepathsFonscrossedduringthattimewereveryhelpful.Hewouldliketodojustice
tothemallinchronologicalorder,sincehehasasequentialapproachtotime:

IamdeeplyindebtedprofessionallytoFritsHaselhoffforhisinsightsintomanagementandstrategy.HealsohelpedmetoobtainascholarshipandtodefendmyPhD
thesisinPhiladelphia.

Thankyou,too,ErikBreeandReiTorresfromtheRoyalDutch/ShellGroupforyoursponsorship,bothinmoneyandinresearchopportunityduringthedifficultfirst
yearsofmyproject.

Iamalsoverygratefultothetwogurusinmyprofessionallife.FirstofallHasanOzbekhan,whotaughtmetheprinciplesofsystemstheoryinsuchaprofoundand
stimulatingwaythatmostofthethoughtsonwhichthisbookarebasedaredrawndirectlyfromhisexcellentmind.Second,CharlesHampdenTurner,whohelpedme
todevelopthinkingaboutcultureasawayofsolvingdilemmas.Hiscreativemindencouragesmecontinuouslytostretchexistingideastonewlevels.Hemadeamajor
editorialcontributiontothefirsteditionofthisbook,whilealwaysrespectingwhatIwastryingtocommunicate.Theadditionstothissecondeditionaresosignificantly
influencedbyCharles'swayofthinkingthatIinvitedhimtobecomecoauthor.

IamverymuchobligedtoGiorgioInzerilliforhissolidattimesprovocativetranslationsfromdeepanthropologicalthinkingtomanage

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mentapplications.Hiswayofcommunicatingthelinkbetweenpracticeandconcepthasbeenveryimportantnotonlytothisbookbutalsotothewaymycolleagues
andIpresentworkshops.Manyoftheexamplesusedaredirectlyorindirectlyduetohim,andhealsoputmeonthetrackofdefiningthesevendimensionsofculture.
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IamgratefultoourcolleaguesKevanHall,PhilipMerryandLeonelBrugforhelpindevelopingmoreeffectiverelationshipswithclients.Theyaresomeofthefew
peopleItrusttomakepresentationsonmajorpointsofthisbookwithoutfeelingtooanxious.

ManythankstomycolleaguesintheTrompenaarsHampdenTurnerInterculturalManagementGroup(formerlytheCentreforInternationalBusinessStudies/United
Notions),TinekeFloor,NaomideGroot,VincentMerk,OscarvanWeerdenburgandPeterPrud'homme,fortheircontinuoussupportandpositivecriticism.

WewouldalsoliketothankMartinGillofromAdvancedMicroDevicesandRSMoorthyfortheirguidanceintheapplicabilityofourthoughts.

AgreatdealofworkwasdonefortherevisededitionbyProfessorPeterWoolliamsoftheUniversityofEastLondon.Hishelpwasnotlimitedtotheproductionof
ourinteractiveeducationaltoolsbutextendedtocomplexstatisticalanalysisofourdatabase.Hisinsightshavebeenveryenlightening.Thankyou,Peter.

Chapter14onSouthAfricacametofruitionwiththesignificanthelpofLouisvandeMerwe(TrompenaarsGroupSouthAfrica)andPeterPrud'homme(United
NotionsinAmsterdam).Thankyou,LouisandPeter.

Chapter15ondiversityintheUSAwasverymuchimprovedbythecommentsofDinaRaymondofMotorola.Weneededherfemalesensitivitytocheckourmale
conclusions.ThankyouDina.

AndobviouslywecouldnotbestimulatedmorethanbythecommentsofGeertHofstede.HeintroducedFonstothesubjectofinterculturalmanagementsome20
yearsago.Wedonotalwaysagree,buthehasmadeamajorcontributiontothefield,andwasresponsibleforopeningmanagement'seyestotheimportanceofthe
subject.Bydefendinghis25yearoldmodel,wefoundanextraimpetustogobeyond"plotting"differences,todevelopamethodoftakingadvantageofthese
differencesthroughreconciliation.

WealsowanttothankNicholasBrealeyPublishingfortheirsupport,inparticularSallyLansdellwhoeditedtherevisededition.

FONSTROMPENAARS
CHARLESHAMPDENTURNER
SEPTEMBER1997

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1
AnIntroductiontoCulture
Thisbookisaboutculturaldifferencesandhowtheyaffecttheprocessofdoingbusinessandmanaging.ItisnotabouthowtounderstandtheFrench(asheer
impossibility)ortheBritish(try,andyouwillsoongiveup).Itisourbeliefthatyoucanneverunderstandothercultures.Thosewhoaremarriedknowthatitis
impossibleevercompletelytounderstandevenpeopleofyourownculture.TheDutchauthorbecameinterestedinthissubjectbeforeitgrewpopularbecausehis
fatherisDutchandhismotherisFrench.Itgavehimanunderstandingofthefactthatifsomethingworksinoneculture,thereislittlechancethatitwillworkinanother.
NoDutch"management"techniquehisfathertriedtouseeverworkedveryeffectivelyinhisFrenchfamily.

ThisisthecontextinwhichwestartedwonderingifanyoftheAmericanmanagementtechniquesandphilosophywewerebrainwashedwithinmanyyearsofthebest
businesseducationmoneycouldbuywouldapplyintheNetherlandsortheUK,wherewecamefrom,orindeedintherestoftheworld.

Bothauthorshavebeenstudyingtheeffectofcultureonmanagementformanyyears.Thisbookdescribesmuchofwhatwehavediscovered.Thedifferentcultural
orientationsdescribedresultfrom15yearsofacademicandfieldresearch.Manyoftheanecdotesandcasesusedinthetexthavecomeupinthecourseofmorethan
1000crossculturaltrainingprogrammeswehavegiveninover20countries.Thenamesofthecompaniesusedinmostofthecasesaredisguised.

Apartfromthetrainingprogrammematerial,30companies,withdepartmentsspanning50differentcountries,havecontributedtotheresearch.TheseincludeAKZO,
AMD,AT&T,BSN,EastmanKodak,ElfAquitaine,SGS/Thomson,CRA,Glaxo,Heineken,ICI,Lotus,Mars,Motorola,Philips,RoyalDutchAirlinesKLM,theRoyal
Dutch/ShellGroup,Sematech,TRW,VanLeer,VolvoandWellcome,tonameafew.Inordertogathercomparablesamples,aminimumof100peoplewithsimilar
backgroundsandoccupationsweretakenineachofthecountriesinwhichthecompaniesoperated.Approximately75%oftheparticipantsbelongtomanagement
(managersinoperations,

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marketing,salesandsoon),whiletheremaining25%weregeneraladministrativestaff(typists,stenographers,secretaries).Thedatabasenownumbers30,000
participants.Thisistwiceasmuchasfouryearsagowhenthefirsteditionwaspublished.Theempiricalresultsare,however,justanillustrationofwhatwearetrying
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tosay.

Thisbookattemptstodothreethings:dispelthenotionthatthereis''onebestway"ofmanagingandorganisinggivereadersabetterunderstandingoftheirown
cultureandculturaldifferencesingeneral,bylearninghowtorecogniseandcopewiththeseinabusinesscontextandprovidesomeculturalinsightsintothe"global"
versus"local"dilemmafacinginternationalorganisations.Possiblythemostimportantaspectofthebookisthesecondofthese.Ibelieveunderstandingourown
cultureandourownassumptionsandexpectationsabouthowpeople"should"thinkandactisthebasisforsuccess.

TheImpactofCultureonBusiness

Takealookatthenewbreedofinternationalmanagers,educatedaccordingtothemostmodernmanagementphilosophies.TheyallknowthatintheSBU,TQMshould
reign,withproductsdeliveredJIT,whereCFTsdistributeproductswhilesubjecttoMBO.IfthisisnotdoneappropriatelyweneedtoBPR.(SBU=strategicbusinessunit
TQM=totalqualitymanagementJIT=justintimeCFT=customerfirstteamMBO=managementbyobjectivesBPR=businessprocessreengineering.)

Butjusthowuniversalarethesemanagementsolutions?Arethese"truths"aboutwhateffectivemanagementreallyis:truthsthatcanbeappliedanywhere,underany
circumstances?

Evenwithexperiencedinternationalcompanies,manywellintended"universal"applicationsofmanagementtheoryhaveturnedoutbadly.Forexample,payfor
performancehasinmanyinstancesbeenafailureontheAfricancontinentbecausethereareparticular,thoughunspoken,rulesaboutthesequenceandtimingof
rewardandpromotions.Similarly,managementbyobjectivesschemeshavegenerallyfailedwithinsubsidiariesofmultinationalsinsouthernEurope,becausemanagers
havenotwantedtoconformtotheabstractnatureofpreconceivedpolicyguidelines.

Eventhenotionofhumanresourcemanagementisdifficulttotranslatetoothercultures,comingasitdoesfromatypicallyAngloSaxondoctrine.Itborrowsfrom
economicstheideathathumanbeingsare"resources"likephysicalandmonetaryresources.Ittendstoassumealmostunlimitedcapacitiesforindividualdevelopment.
Incountrieswithoutthesebeliefs,thisconceptishardtograspandunpopularonceitisunderstood.

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Internationalmanagershaveittough.Theymustoperateonanumberofdifferentpremisesatanyonetime.Thesepremisesarisefromtheircultureoforigin,theculture
inwhichtheyareworkingandthecultureoftheorganisationwhichemploysthem.
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Ineverycultureintheworldsuchphenomenaasauthority,bureaucracy,creativity,goodfellowship,verificationandaccountabilityareexperiencedindifferentways.
Thatweusethesamewordstodescribethemtendstomakeusunawarethatourculturalbiasesandouraccustomedconductmaynotbeappropriate,orshared.

Thereisatheorythatinternationalisationwillcreate,oratleastleadto,acommoncultureworldwide.Thiswouldmakethelifeofinternationalmanagersmuchsimpler.
PeoplepointtoMcDonald'sorCocaColaasexamplesoftastes,marketsandhenceculturesbecomingsimilareverywhere.Thereare,indeed,manyproductsand
servicesbecomingcommontoworldmarkets.Whatisimportanttoconsider,however,isnotwhattheyareandwheretheyarefoundphysically,butwhattheymean
tothepeopleineachculture.Aswewilldescribelater,theessenceofcultureisnotwhatisvisibleonthesurface.Itisthesharedwaysgroupsofpeopleunderstand
andinterprettheworld.SothefactthatwecanalllistentoWalkmansandeathamburgerstellsusthattherearesomenovelproductsthatcanbesoldonauniversal
message,butitdoesnottelluswhateatinghamburgersorlisteningtoWalkmansmeansindifferentcultures.DiningatMcDonald'sisashowofstatusinMoscow
whereasitisafastmealforafastbuckinNewYork.Ifbusinesspeoplewanttogainunderstandingofandallegiancetotheircorporategoals,policies,productsor
serviceswherevertheyaredoingbusiness,theymustunderstandwhatthoseandotheraspectsofmanagementmeanindifferentcultures.

Inadditiontoexploringwhyuniversalapplicationsofwesternmanagementtheorymaynotwork,wewillalsotrytodealwiththegrowingdilemmafacinginternational
managersknownas"glocalisation".

Asmarketsglobalise,theneedforstandardisationinorganisationaldesign,systemsandproceduresincreases.Yetmanagersarealsounderpressuretoadapttheir
organisationtothelocalcharacteristicsofthemarket,thelegislation,thefiscalregime,thesociopoliticalsystemandtheculturalsystem.Thisbalancebetween
consistencyandadaptationisessentialforcorporatesuccess.

ParalysisthroughAnalysis:
TheElixiroftheManagementProfession

PetersandWatermaninInSearchofExcellencehitthenailontheheadwiththeircritiqueof"therationalmodel"and"paralysisthroughanalysis".Westernanalytical
thinking(takingaphenomenontopieces)and

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rationality(reckoningtheconsequencesbeforeyouact)haveledtomanyinternationalsuccessesinfieldsoftechnology.Indeed,technologiesdoworkbythesame
universalruleseverywhere,evenonthemoon.Yettheverysuccessoftheuniversalisticphilosophynowthreatenstobecomeahandicapwhenappliedtointeractions
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betweenhumanbeingsfromdifferentcultures.

Manisaspecialpieceoftechnologyandtheresultsofourstudies,extensivelydiscussedinthisbook,indicatethatthesocialworldoftheinternationalorganisationhas
manymoredimensionstodealwith.

Somemanagers,especiallyinJapan,recognisethemultidimensionalcharacteroftheircompany.Theyseemabletousealogicappropriatetomachines(analytic
rational)andalogicmoreappropriatetosocialrelations(syntheticintuitive),switchingbetweentheseasneeded.

IntheprocessofinternationalisationtheJapaneseincreasinglytakethefunctioningoflocalsocietyseriously.Theywerenotthefirsttoobserve"WheninRome,doas
theRomansdo",buttheyseemtoactonthismorethanwesternersdo.TheJapanesehavemoreoveraddedanotherdimension:"WheninRome,understandthe
behaviouroftheRomans,andthusbecomeanevenmorecompleteJapanese."

Inoppositiontothiswehaveourwesternapproach,basedonAmericanbusinesseducation,whichtreatsmanagementasaprofessionandregardsemotionally
detachedrationalityas"scientifically"necessary.Thisnumerical,cerebralapproachnotonlydominatesAmericanbusinessschools,butothereconomicandbusiness
faculties.Suchschoolseducatetheirstudentsbygivingthemtherightanswerstothewrongquestions.Statisticalanalysis,forecastingtechniquesandoperational
studiesarenot"wrong".Theyareimportanttechnicalskills.Themistakeistoassumethattechnicalrationalityshouldcharacterisethehumanelementinthe
organisation.Nooneisdenyingtheexistenceofuniversallyapplicablescientificlawswithobjectiveconsequences.Theseare,indeed,culturefree.Butthebeliefthat
humanculturesintheworkplaceshouldresemblethelawsofphysicsandengineeringisacultural,notascientificbelief.Itisauniversalassumptionwhichdoesnot
winuniversalagreement,orevencomeclosetodoingso.

Theinternationalisationofbusinessliferequiresmoreknowledgeofculturalpatterns.Payforperformance,forexample,canworkoutwellinthecultureswherethese
authorshavehadmostoftheirtraining:theUSA,theNetherlandsandtheUK.InmorecommunitariancultureslikeFrance,GermanyandlargepartsofAsiaitmay
notbesosuccessful,atleastnottheAngloSaxonversionofpayforperformance.Employeesmaynotacceptthatindividualmembersofthegroupshouldexcelina
waythatrevealstheshortcomingsofothermembers.Theirdefinitionofan

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"outstandingindividual"isonewhobenefitsthoseclosesttohimorher.Customersinmorecommunitarianculturesalsotakeoffenceatthe"quickbuck"mentalityof
thebestsalespeopletheyprefertobuilduprelationshipscarefully,andmaintainthem.
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HowProvenFormulasCanGivetheWrongResult

Whyisitthatmanymanagementprocessesloseeffectivenesswhenculturalbordersarecrossed?

Manymultinationalcompaniesapplyformulasinoverseasareasthatarederivedfrom,andaresuccessfulin,theirownculture.Internationalmanagementconsulting
firmsofAngloSaxonoriginarestillusingsimilarmethodstotheneglectofculturaldifferences.

AnItaliancomputercompanyreceivedadvicefromaprominentinternationalmanagementconsultingfirmtorestructuretoamatrixorganisation.Itdidsoandfailed
thetaskorientedapproachofthematrixstructurechallengedloyaltytothefunctionalboss.InItalybossesarelikefathers,andyoucannothavetwofathers.

Cultureislikegravity:youdonotexperienceituntilyoujumpsixfeetintotheair.Localmanagersmaynotopenlycriticiseacentrallydevelopedappraisalsystemor
rejectthematrixorganisation,especiallyifconfrontationordefinanceisnotculturallyacceptabletothem.Inpractice,though,beneaththesurface,thesilentforcesof
cultureoperateadestructiveprocess,bitingattherootsofcentrallydevelopedmethodswhichdonot"fit"locally.

Theflathierarchy,SBUs,MBO,matrixorganisations,assessmentcentres,TQM,BPRandpayforperformancearesubjectsofdiscussioninnearlyeverybestsellerabout
management,andnotonlyinthewesternworld.Readingthesebooks(forwhichmanagershappilydonothavemuchtimeanymore)createsafeelingofeuphoria."IfI
followthesetencommandments,I'llbethemodernleader,thechangemaster,thechampion."AparticipantfromKoreatoldusinquiteacynicaltonethathe
admiredtheUSAforsolvingoneofthelastmajorproblemsinbusiness,i.e.howtogetridofpeopleintheprocessofreengineering.Thefallacyofthe"onebestway"
isamanagementfallacywhichisdyingaslowdeath.

Althoughtheorganisationaltheorydevelopedinthe1970sintroducedtheenvironmentasanimportantconsideration,itwasunabletokillthedreamoftheonebest
wayoforganising.Itdidnotmeasuretheeffectsofnationalculture,butsystematicallypointedtotheimportanceofthemarket,thetechnologyandtheproductfor
determiningthemosteffectivemethodsofmanagementandorganisation.

Ifyoustudysimilarorganisationsindifferentculturalenvironments,

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theyoftenturnouttoberemarkablyuniformbymajorcriteria:numberoffunctions,levelsofhierarchy,degreeofspecialisationandsoon.Insteadofprovinganything,
thismaymeanlittlemorethanthatuniformityhasbeenimposedonglobaloperations,orthatleadingcompanypracticeshavebeencarefullyimitated,oreventhat
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technologieshavetheirownimperatives.Researchofthiskindhasoftenclaimedthatthis"proves"thattheorganisationisculturefree.Butthewrongquestionshave
beenasked.TheissueisnotwhetherahierarchyintheNetherlandshassixlevels,asdoesasimilarcompanyinSingapore,butwhatthehierarchyandthoselevels
meantotheDutchandSingaporeans.Wherethemeaningistotallydifferent,forexample,a"chainofcommand"versus"afamily",thenhumanresourcepolicies
developedtoimplementthefirstwillseriouslymiscommunicateinthelattercontext.

Inthisbookweexaminethevisibleandinvisiblewaysinwhichcultureimpactsonorganisations.Themorefundamentaldifferencesincultureandtheireffectsmaynot
bedirectlymeasurablebyobjectivecriteria,buttheywillcertainlyplayaveryimportantroleinthesuccessofaninternationalorganisation.

CultureIstheWayinWhichPeopleSolveProblems

Ausefulwayofthinkingaboutwhereculturecomesfromisthefollowing:cultureisthewayinwhichagroupofpeoplesolvesproblemsandreconciles
dilemmas.1Theparticularproblemsanddilemmaseachculturemustresolvewillbediscussedbelow.Ifwefocusfirstonwhatcultureis,perhapsitiseasiesttostart
withthisexample.

ImagineyouareonaflighttoSouthAfricaandthepilotsays,"WehavesomeproblemswiththeenginesowewilllandtemporarilyinBurundi"(forthosewhodonot
knowBurundi,itisnexttoRwanda).WhatisyourfirstimpressionofBurundicultureonceyouentertheairportbuilding?Itisnot"whatanicesetofvaluesthese
peoplehave",oreven"don'ttheyhaveaninterestingsharedsystemofmeaning".Itistheconcrete,observablethingslikelanguage,foodordress.Culturecomesin
layers,likeanonion.Tounderstandityouhavetounpeelitlayerbylayer.

Ontheouterlayeraretheproductsofculture,likethesoaringskyscrapersofManhattan,pillarsofprivatepower,withcongestedpublicstreetsbetweenthem.These
areexpressionsofdeepervaluesandnormsinasocietythatarenotdirectlyvisible(valuessuchasupwardmobility,"themorethebetter",status,materialsuccess).
Thelayersofvaluesandnormsaredeeperwithinthe"onion",andaremoredifficulttoidentify.

Butwhydovaluesandnormssinkdownintosemiawarenessand

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unexaminedbeliefs?Whyaretheysodifferentindifferentpartsoftheworld?
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Aproblemthatisregularlysolveddisappearsfromconsciousnessandbecomesabasicassumption,anunderlyingpremise.Itisnotuntilyouaretryingtogetridofthe
hiccupsandholdyourbreathforaslongasyoupossiblycanthatyouthinkaboutyourneedforoxygen.Thesebasicassumptionsdefinethemeaningthatagroup
shares.Theyareimplicit.

Takethefollowingdiscussionbetweenamedicaldoctorandapatient.Thepatientasksthedoctor:"What'sthematterwithme?"Thedoctoranswers:"Pneumonia."
"Whatcausespneumonia?""Itiscausedbyavirus.''"Interesting,"saysthepatient,"whatcausesavirus?"Thedoctorshowssignsofsevereirritationandthe
discussiondies.Veryoftenthatisasignthatthequestionerhashitabasicassumption,orinthewordsofCollingwood,2anabsolutepresuppositionaboutlife.Whatis
takenforgranted,unquestionedreality:thisisthecoreoftheonion.

National,CorporateandProfessionalCulture

Culturealsopresentsitselfondifferentlevels.Atthehighestlevelisthecultureofanationalorregionalsociety,theFrenchorwestEuropeanversustheSingaporean
orAsian.Thewayinwhichattitudesareexpressedwithinaspecificorganisationisdescribedasacorporateororganisationalculture.Finally,wecaneventalkabout
thecultureofparticularfunctionswithinorganisations:marketing,researchanddevelopment,personnel.Peoplewithincertainfunctionswilltendtosharecertain
professionalandethicalorientations.Thisbookwillfocusonthefirstlevel,thedifferencesincultureatanationallevel.

Culturaldifferencesdonotonlyexistwithregardtofaraway,exoticcountries.Inthecourseofourresearchithasbecomeincreasinglyclearthatthereareatseveral
levelsasmanydifferencesbetweentheculturesofWestCoastandEastCoastAmericaastherearebetweendifferentnations(althoughforthepurposesofthisbook
mostAmericanreferencesareaveraged).AlltheexamplesshowthatthereisaclearcutculturalborderbetweenthenorthwestEuropean(analysis,logic,systems
andrationality)andtheEuroLatin(morepersonrelated,moreuseofintuitionandsensitivity).ThereareevensignificantdifferencesbetweentheneighbouringDutch
andBelgians.

TheaverageBelgianmanagerhasafamilyideaoftheorganisation.Heorsheexperiencestheorganisationaspaternalisticandhierarchical,and,asinmanyLatin
cultures,fatherdecideshowitshouldbedone.TheBelgianseestheDutchmanagerasoverlydemocratic:whatnonsensethateverybodyconsultseverybody.The
Dutchmanagerthinksinawaymore

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consistentwiththeProtestantethicthantheBelgian,whothinksandactsinamoreCatholicway.MostDutchmanagersdistrustauthority,whileBelgianmanagerstend
torespectit.
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NearlyalldiscussionsabouttheunificationofEuropedealwithtechnolegalmatters.Butwhentheseproblemsaresolved,therealproblememerges.Nowheredo
culturesdiffersomuchasinsideEurope.IfyouaregoingtodobusinesswiththeFrench,youwillfirsthavetolearnhowtolunchextensively.Thefounderofthe
EuropeanCommunity,JeanMonnet,oncedeclared:"IfIwereagainfacingthechallengetointegrateEurope,Iwouldprobablystartwithculture."Cultureisthe
contextinwhichthingshappenoutofcontext,evenlegalmatterslacksignificance.

TheBasisofCulturalDifferences

Everyculturedistinguishesitselffromothersbythespecificsolutionsitchoosestocertainproblemswhichrevealthemselvesasdilemmas.Itisconvenienttolookat
theseproblemsunderthreeheadings:thosewhicharisefromourrelationshipswithotherpeoplethosewhichcomefromthepassageoftimeandthosewhichrelateto
theenvironment.Ourresearch,tobedescribedinthefollowingchapters,examinesculturewithinthesethreecategories.Fromthesolutionsdifferentcultureshave
chosentotheseuniversalproblems,wecanfurtheridentifysevenfundamentaldimensionsofculture.Fiveofthesecomefromthefirstcategory.

RelationshipswithPeople

Therearefiveorientationscoveringthewaysinwhichhumanbeingsdealwitheachother.WehavetakenParsons'sfiverelationalorientationsasastartingpoint.3

UniversalismVersusParticularism

Theuniversalistapproachisroughly:"Whatisgoodandrightcanbedefinedandalwaysapplies."Inparticularistculturesfargreaterattentionisgiventotheobligations
ofrelationshipsanduniquecircumstances.Forexample,insteadofassumingthattheonegoodwaymustalwaysbefollowed,theparticularistreasoningisthat
friendshiphasspecialobligationsandhencemaycomefirst.Lessattentionisgiventoabstractsocietalcodes.

IndividualismVersusCommunitarianism

Dopeopleregardthemselvesprimarilyasindividualsorprimarilyaspartofagroup?Furthermore,isitmoreimportanttofocusonindividualssothattheycan

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contributetothecommunityasandiftheywish,orisitmoreimportanttoconsiderthecommunityfirstsincethatissharedbymanyindividuals?
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NeutralVersusEmotional

Shouldthenatureofourinteractionsbeobjectiveanddetached,orisexpressingemotionacceptable?InNorthAmericaandnorthwestEuropebusinessrelationships
aretypicallyinstrumentalandallaboutachievingobjectives.Thebrainchecksemotionsbecausethesearebelievedtoconfusetheissues.Theassumptionisthatwe
shouldresembleourmachinesinordertooperatethemmoreefficiently.Butfurthersouthandinmanyothercultures,businessisahumanaffairandthewholegamutof
emotionsdeemedappropriate.Loudlaughter,bangingyourfistonthetableorleavingaconferenceroominangerduringanegotiationisallpartofbusiness.

SpecificVersusDiffuse

Whenthewholepersonisinvolvedinabusinessrelationshipthereisarealandpersonalcontact,insteadofthespecificrelationshipprescribedbyacontract.Inmany
countriesadiffuserelationshipisnotonlypreferred,butnecessarybeforebusinesscanproceed.

InthecaseofoneAmericancompanytryingtowinacontractwithaSouthAmericancustomer(seeChapter7),disregardfortheimportanceoftherelationshiplost
thedeal.TheAmericancompanymadeaslick,wellthoughtoutpresentationwhichitthoughtclearlydemonstrateditssuperiorproductandlowerprice.ItsSwedish
competitortookaweektogettoknowthecustomer.ForfivedaystheSwedesspokeabouteverythingexcepttheproduct.Onthelastdaytheproductwas
introduced.Thoughsomewhatlessattractiveandslightlyhigherpriced,thediffuseinvolvementoftheSwedishcompanygottheorder.TheSwedishcompanyhad
learnedthattodobusinessinparticularcountriesinvolvesmorethanoverwhelmingthecustomerwithtechnicaldetailsandfancyslides.

AchievementVersusAscription

Achievementmeansthatyouarejudgedonwhatyouhaverecentlyaccomplishedandonyourrecord.Ascriptionmeansthatstatusisattributedtoyou,bybirth,
kinship,genderorage,butalsobyyourconnections(whoyouknow)andyoureducationalrecord(agraduateofTokyoUniversityorHauteEcolePolytechnique).

Inanachievementculture,thefirstquestionislikelytobe"Whatdidyoustudy?",whileinamoreascriptiveculturethequestionwillmorelikelybe"Wheredidyou
study?".Onlyifitwasalousyuniversityoronetheydonotrecognisewillascriptivepeopleaskwhatyoustudiedandthatwillbetoenableyoutosaveface.

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AttitudestoTime
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Thewayinwhichsocietieslookattimealsodiffers.Insomesocietieswhatsomebodyhasachievedinthepastisnotthatimportant.Itismoreimportanttoknow
whatplantheyhavedevelopedforthefuture.Inothersocietiesyoucanmakemoreofanimpressionwithyourpastaccomplishmentsthanthoseoftoday.Theseare
culturaldifferencesthatgreatlyinfluencecorporateactivities.

Withrespecttotime,theAmericanDreamistheFrenchNightmare.Americansgenerallystartfromzeroandwhatmattersistheirpresentperformanceandtheirplan
to"makeit"inthefuture.ThisisnouveaurichefortheFrench,whoprefertheancienpauvretheyhaveanenormoussenseofthepastandrelativelylessfocuson
thepresentandfuturethanAmericans.

IncertainculturesliketheAmerican,SwedishandDutch,timeisperceivedaspassinginastraightline,asequenceofdisparateevents.Otherculturesthinkoftime
moreasmovinginacircle,thepastandpresenttogetherwithfuturepossibilities.Thismakesconsiderabledifferencestoplanning,strategy,investmentandviewson
homegrowingyourtalent,asopposedtobuyingitin.

AttitudestotheEnvironment

Animportantculturaldifferencecanalsobefoundintheattitudetotheenvironment.Someculturesseethemajorfocusaffectingtheirlivesandtheoriginsofviceand
virtueasresidingwithintheperson.Here,motivationsandvaluesarederivedfromwithin.Otherculturesseetheworldasmorepowerfulthanindividuals.Theysee
natureassomethingtobefearedoremulated.

ThechairmanofSony,MrMorita,explainedhowhecametoconceiveoftheWalkman.Helovesclassicalmusicandwantedtohaveawayoflisteningtoitonhis
waytoworkwithoutbotheringanyfellowcommuters.TheWalkmanwasawayofnotimposingontheoutsideworld,butofbeinginharmonywithit.Contrastthatto
thewaymostwesternersthinkaboutusingthedevice."Icanlistentomusicwithoutbeingdisturbedbyotherpeople."

Anotherobviousexampleistheuseoffacemasksthatarewornoverthenoseandmouth.InTokyoyouseemanypeoplewearingthem,especiallyinwinter.When
youinquirewhy,youaretoldthatwhenpeoplehavecoldsoravirus,theywearthemsotheywillnot"pollute"orinfectotherpeoplebybreathingonthem.InLondon
theyarewornbybikersandotherathleteswhodonotwanttobe"polluted"bytheenvironment.

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StructureoftheBook
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Thisbookwilldescribewhythereisno"onebestwayofmanaging",andhowsomeofthedifficultdilemmasofinternationalmanagementcanbemediated.
Throughout,itwillattempttogivereadersmoreinsightintotheirowncultureandhowitdiffersfromothers.

Chapters28willinitiatethereaderintotheworldofculturaldiversityinrelationswithotherpeople.Howdoculturesdifferinthisrespect?Inwhatwaysdothese
differencesimpactonorganisationsandtheconductofinternationalbusiness?Howaretherelationshipsbetweenemployeesaffected?Inwhatdifferentwaysdothey
learnandsolveconflicts?

Chapters9and10discussvariationsinculturalattitudestotimeandtheenvironment,whichhaveverysimilarconsequencesfororganisations.

Chapter11discusseshowgeneralculturalassumptionsaboutman,timeandtheenvironmentaffectthecultureoforganisations.Itidentifiesthefourbroadtypesof
organisationwhichhaveresulted,theirhierarchies,relationships,goalsandstructures.

Chapter12considershowmanagerscanpreparetheorganisationfortheprocessofinternationalisationthroughsomespecificpointsofintervention.Thischapteris
intendedtodealinacreativewaywiththedilemmasofinternationalisation,andtorepeatthemessagethataninternationalfuturedependsonachievingabalance
betweenanytwoextremes.

Whatwillemergeisthatthewholecentralisationversusdecentralisationdebateisreallyafalsedichotomy.Whatisneededistheskill,sensitivityandexperienceto
drawuponallthedecentralisedcapacitiesoftheinternationalorganisation.

Chapter13analysesthedifferentstepswhichpeopleneedtotaketoreconcileculturaldilemmas.Thisisdonethroughacasestudywhichelicitsthevariousproblems
thatoccurwhenprofessionalpeoplefromdifferentculturesmeet.

Chapter14and15discussthediversitywefindwithincultures.ResearchfindingsillustrateethnicdifferenceswithintheUSAandSouthAfricaandtheeffecton
cultureofgender,age,functionalbackgroundandtypeofindustry.Wewillconcludethattheculturesofnationsareanimportantfactorindefiningthemeaningwhich
peopleassigntotheirenvironment,butthatotherfactorsshouldnotbeignored.

Whatthisbookattemptstomakepossibleisthegenuinelyinternationalorganisation,sometimescalledthetransnational,inwhicheachnationalculturecontributesits
ownparticularinsightsandstrengthsto

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thesolutionofworldwideissuesandthecompanyisabletodrawonwhateveritisthatnationsdobest.
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References

1Schein,E.,OrganisationalCultureandLeadership,JosseyBass,SanFrancisco,1985.

2Collingwood,R.G.,EssayonMetaphysics,Gateway,Chicago,1974.

3Parsons,T.,TheSocialSystem,FreePress,NewYork,1951.

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2
TheOneBestWayofOrganisingDoesNotExist
Howeverobjectiveanduniformwetrytomakeorganisations,theywillnothavethesamemeaningforindividualsfromdifferentcultures.Themeaningsperceived
dependoncertainculturalpreferences,whichweshalldescribe.Likewisethemeaningthatpeoplegivetotheorganisation,theirconceptofitsstructure,practicesand
policies,isculturallydefined.

Cultureisasharedsystemofmeanings.Itdictateswhatwepayattentionto,howweactandwhatwevalue.CultureorganisessuchvaluesintowhatGeertHofstede1
calls"mentalprogrammes".Thebehaviourofpeoplewithinorganisationsisanenactmentofsuchprogrammes.

Eachofuscarrieswithinusthewayswehavelearntoforganisingourexperiencetomeansomething.Thisapproachisdescribedasphenomenological,meaningthat
thewaypeopleperceivephenomenaaroundthemiscoherent,orderlyandmakessense.

Afellowemployeefromadifferentculturemakesoneinterpretationofthemeaningofanorganisationwhilewemakeourown.Why?Whatcanwelearnfromthis
alternativewayofseeingthings?Canweletthatemployeecontributeinhisorherownway?

Thisapproachtounderstandinganinternationalorganisationisinstrongcontrasttothetraditionalapproach,inwhichmanagersorresearchersdecideunilaterallyhow
theorganisationshouldbedefined.Traditionalstudieshavebeenbasedonthephysical,verifiablecharacteristicsoforganisations,whichareassumedtohavea
commondefinitionforallpeople,everywhere,atalltimes.Insteadofthisapproach,whichlooksforlawsandcommonpropertiesamong"things"observed,weshall
lookforconsistentwaysinwhichculturesstructuretheperceptionsofwhattheyexperience.

WhattheGurusTellUs

ManagementguruslikeFrederickTaylor,HenriFayol,PeterDrucker,MikeHammer,JamesChampyandTomPetershaveonethingincommon:theyallgave(two
aredead)theimpression,consciouslyorunconsciously,that

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therewasonebestwaytomanageandtoorganise.WeshallbeshowinghowveryAmericanandinthecaseofFayol,howFrench,theseassumptionswere.Not
muchhaschangedinthisrespectoverthelastcentury.Isitnotdesirabletobeabletogivemanagementaboxoftoolsthatwillreducethecomplexitiesofmanaging?
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Ofcourseitis.Weseethemanagerreachforthetoolstolimitcomplexity,butunfortunatelytheapproachtendstolimitinnovationandinterculturalsuccessaswell.

Studiesinthe1970s,though,didshowthattheeffectivenessofcertainmethodsdoesdependontheenvironmentinwhichweoperate.

Morerecently,mostsocalled"contingency"studieshaveaskedhowthemajorstructuresoftheorganisationvaryinaccordancewithmajorvariablesinthe
environment.Theyhavetendedtoshowthatiftheenvironmentisessentiallysimpleandstablethensteephierarchiessurvive,butifitiscomplexandturbulent,flatter
hierarchiesengageitmoreprofitably.Suchstudieshavemainlybeenconfinedtoonecountry,usuallytheUSA.Bothstructureandenvironmentaremeasuredandthe
resultsexplainthatXamountofenvironmentalturbulenceevokesYamountofhierarchicallevels,leadingtoZamountofperformance.ThefactthatJapanese
corporationsengageinveryturbulentenvironmentswithmuchsteeperhierarchieshasnotasarulebeenaddressed.

Weshouldnotethatthesecontingencystudiesarestillsearchingforonebestwayinspecifiedcircumstances.Theystillbelievetheiruniversalismisscientific,whenin
factitisaculturalpreference."Onebestway"isayearning,notafact.MichelCrozier,theFrenchsociologist,workingin1964,2couldfindnostudiesthatrelated
organisationstotheirsocioculturalenvironments.Ofcoursethosewhosearchforsamenesswillusuallyfinditandifyousticktoexaminingcommonobjectsand
processes,likerefiningoilaccordingtochemicalscience,thenpipeswillbefoundtohavethesamefunctiontheworldover.Iftheprinciplesofchemicalengineering
arethesame,whynotallprinciples?Itseemsaplausibleequation.

TalcottParsons,3anAmericansociologist,hashoweversuggestedthatorganisationshavetoadaptnotsimplytotheenvironmentbutalsototheviewsofparticipating
employees.Ithasonlybeeninrecentyearsthatthisconsiderationofemployeeperceptions,anddifferingcultures,hassurfacedinmanagementliterature.

NeglectofCultureinAction

Takethefollowingmeetingofamanagementteamtryingtointernationaliseacompany'sactivities.ThiscaseisasummaryofaninterviewwithaNorthAmerican
humanresourcemanager,acasehistorywhichwillbe

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referredtothroughoutthebook.Althoughthecaseisreal,thenamesofthecompanyandtheparticipantsarefictitious.
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TheMissouriComputationalCompany(MCC)

MCC,foundedin1952,isaverysuccessfulAmericancompany.Itdevelops,producesandsellsmediumsizeandlargecomputers.Thecompanycurrentlyoperatesas
amultinationalinNorthandSouthAmerica,Europe,SouthEastAsia,AustraliaandtheMiddleEast.Salesactivitiesareregionallystructured.ThefactoriesareinSt
LouisandNewark(NJ)themostimportantresearchactivitiestakeplaceinStLouis.

Production,R&D,personnelandfinancearecoordinatedattheAmericanheadoffice.Businessunitshandletheregionalsalesresponsibilities.Thisdecentralised
structuredoeshavetoobservecertaincentralisedlimitationsregardinglogos,lettertypes,typesofproductsandfinancialcriteria.Standardisationoflabourconditions,
functionclassificationandpersonnelplanningiscoordinatedcentrally,whereashiringisdonebytheregionalbranches.Eachregionalbranchhasitsownpersonnel
andfinancedepartments.Themanagementmeetseverytwoweeks,andthisweekisfocusingonglobalisationissues.

Internationalisation

MrJohnsonpaidextraattentioninthemanagementmeeting.Asvicepresidentofhumanresourcesworldwidehecouldbefacingseriousproblems.Management
recognisesthatthespiritofglobalisationisbecomingmoreactiveeveryday.Notonlydotheclientshavemoreinternationaldemands,butproductionfacilitiesneedto
besetupinmoreandmorecountries.

Thismorninganewlogowasintroducedtosymbolisetheworldwideimageofthecompany.Thenextitemontheagendawasaworldwidemarketingplan.

MrSmith,theCEO,sawachancetobringforwardwhathisMBAtaughthimtobeuniversallyapplicablemanagementtools.Inadditiontoglobalimagesandmarketing,
hesawglobalproduction,financeandhumanresourcesmanagementassupportingtheinternationalbreakthrough.

Johnson'shairstartedtoriseashelistenedtohiscolleague'spresentation."Theorganisationworldwideshouldbeflatter.Anexcellenttechniqueforthiswouldbeto
followtheprojectapproachthathasbeensosuccessfulintheUSA."Johnson'squestionabouttheacceptanceofthisapproachinsouthernEuropeandSouthAmerica
wasbrushedasidewithashortreplyregardingtheextratimethatwouldbeallottedtointroduceitinthesecultures.Thegenerousallocationofsixmonthswouldbe
providedtomakeeventhemostunwillingcultureunderstandandappreciatethebeautyofshorterlinesofcommunication.

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Finally,allofthiswouldbesupportedbyastrongpayforperformancesystemsothatinadditiontomoreeffectivestructures,theemployeeswouldalsobedirected
towardstherightgoals.
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Johnson'slasttrytointroduceamore"human"sidetothediscussionconcerningtheimplementationofthetechniquesandpolicyinstrumentswasuseless.Thefinance
manager,MrFinley,expressedtheopinionoftheentiremanagementteam:"Weallknowthatculturaldifferencesaredecreasingwiththeincreasingreachofthe
media.WeshouldbeworldleadersandcreateafutureenvironmentthatisamicrocosmofMissouri."

MrJohnsonfrownedattheprospectofnextweek'sinternationalmeetinginEurope.

MrJohnsonknewfromexperiencetherewouldbetroubleincommunicatingthisstancetoEuropeanhumanresourcemanagers.Hecouldempathisewiththe
Europeans,whileknowingthatcentralmanagementdidnotreallyintendtobearrogantinextendingacentralpolicyworldwide.Whatcouldhedotogetthebest
outcomefromhisnextmeeting?WeshallfollowthisthroughinChapter4.

CultureasaSideDish?

Culturestillseemslikealuxuryitemtomostmanagers,adishontheside.Infact,culturepervadesandradiatesmeaningsintoeveryaspectoftheenterprise.Culture
patternsthewholefieldofbusinessrelationships.TheDutchauthorremembersaconversationhehadwithaDutchexpatriateinSingapore.Hewasverysurprised
whenquestionedaboutthewaysinwhichheaccommodatedtothelocalculturewhenimplementingmanagementandorganisationtechniques.Beforeanswering,he
triedtofindoutwhyheshouldhavebeenaskedsuchastupidquestion."Doyouworkforpersonnelbyanychance?"Thenhetookmeonatourthroughthe
impressiverefinery."Doyoureallythinktheproductswehaveandthetechnologyweuseallowustotakelocalcultureintoconsideration?"

Indeed,itwouldbedifficultforacontinuousprocesscompanytoaccommodatetothewishesofmostSingaporeanstobehomeatnight.Inotherwords,realityseems
toshowusthatvariablessuchasproduct,technologyandmarketsaremuchmoreofadeterminantthancultureis.Inonesensethisconclusioniscorrect.Integrated
technologieshavealogicoftheirownwhichoperatesregardlessofwheretheplantislocated.Culturesdonotcompetewithorrepealtheselaws.Theysimplysupply
thesocialcontextinwhichthetechnologyoperates.Arefineryisindeedarefinerybutthecul

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tureinwhichitislocatedmayseeitasanimperialistplot,apreciouslifeline,thelastchanceforaneconomictakeoff,apropforamedievalpotentateoraweapon
againsttheWest.Italldependsontheculturalcontext.
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Itisquitepossiblethatorganisationscanbethesameinsuchobjectivedimensionsasphysicalplant,layoutorproduct,yettotallydifferentinthemeaningswhichthe
surroundinghumanculturesreadintothem.WeonceinterviewedaVenezuelanprocessoperator,showinghimthecompanyorganigramandaskinghimtoindicate
howmanylayershehadaboveandbelowhim.Tooursurpriseheindicatedmorelevelsthantherewereonthechart.Weaskedhimhowhecouldseethese.''This
personnexttome,"heexplained,"isaboveme,becauseheisolder."

Oneoftheexercisesweconductinourworkshopsistoaskparticipantstochoosebetweenthefollowingtwoextremewaystoconceiveofacompany,askingthem
whichtheythinkisusuallytrue,andwhichmostpeopleintheircountrywouldoptfor.

AOnewayistoseeacompanyasasystemdesignedtoperformfunctionsandtasksinanefficientway.Peoplearehiredtoperformthesefunctionswiththehelpofmachinesand
otherequipment.Theyarepaidforthetaskstheyperform.

BAsecondwayistoseeacompanyasagroupofpeopleworkingtogether.Theyhavesocialrelationswithotherpeopleandwiththeorganisation.Thefunctioningisdependent
ontheserelations.

Figure2.1(page18)showsthewiderangeofnationalresponses.OnlyalittleoverathirdofFrench,KoreanorJapanesemanagersseeacompanyasasystemrather
thanasocialgroup,whereastheBritishandAmericansarefairlyevenlydivided,andthereisalargemajorityinfavourofthesysteminRussiaandseveralcountriesof
easternEurope.

Thesedifferinginterpretationsareimportantinfluencesontheinteractionsbetweenindividualsandgroups.Formalstructuresandmanagementtechniquesmayappear
uniform.Indeedtheyimitatehardtechnologiesinordertoachievethis,butjustasplantandequipmenthavedifferentculturalmeanings,sodosocialtechnologies.

AnAlternativeApproach

Allorganisationalinstrumentsandtechniquesarebasedonparadigms(setsofassumptions).Anassumptionoftentakenforgrantedisthatsocial

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Figure2.1
Whichkindofcompanyisnormal?
Percentageofrespondentsoptingforasystemratherthanasocialgroup

realityis"outthere",separatedfromthemanagerorresearcherinthesamewayasthematterofaphysicsexperimentis"outthere".Thephysicsresearcherscangive
thephysicalelementsintheirexperimentsanynametheywant.Deadthingsdonottalkbackanddonotdefinethemselves.

Thehumanworld,however,isquitedifferent.AsAlfredShutz4pointedout,whenweencounterothersocialsystemstheyhavealreadygivennamestothemselves,
decidedhowtheywanttoliveandhowtheworldis

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tobeinterpreted.Wemaylabelthemifwewishbutwecannotexpectthemtounderstandoracceptourdefinitions,unlessthesecorrespondtotheirown.Wecannot
strippeopleoftheircommonsenseconstructsorroutinewaysofseeing.Theycometousaswholesystemsofpatternedmeaningsandunderstandings.Wecanonly
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trytounderstand,andtodosomeansstartingwiththewaytheythinkandbuildingfromthere.

Henceorganisationsdonotsimplyreacttotheirenvironmentasashipmighttowaves.Theyactivelyselect,interpret,chooseandcreatetheirenvironments.

Summary

Wecannotunderstandwhyindividualsandorganisationsactastheydowithoutconsideringthemeaningstheyattributetotheirenvironment."Acomplexmarket"is
notanobjectivedescriptionsomuchasaculturalperception.Complextowhom?ToanEthiopianortoanAmerican?Feedbacksessionswherepeopleexploretheir
mistakescanbe"usefulfeedback"accordingtoAmericanmanagementcultureand"enforcedadmissionsoffailure"inaGermanmanagementculture.Oneculturemay
beinspiredbytheverythingthatdepressesanother.

Theorganisationanditsstructuresarethusmorethanobjectiverealitytheycomprisefulfilmentsorfrustrationsofthementalmodelsheldbyrealpeople.

Ratherthantherebeing"onebestwayoforganising"thereareseveralways,someverymuchmoreculturallyappropriateandeffectivethanothers,butallofthem
givinginternationalmanagersadditionalstringstotheirbowiftheyarewillingandabletoclarifythereactionsofforeigncultures.

References

1Hofstede,G.,Culture'sConsequences,Sage,London,1980.

2Crozier,M.,TheBureaucraticPhenomenon,UniversityofChicagoPress,1964.

3Parsons,T.,TheSocialSystem,FreePress,NewYork,1951.

4Schutz,A.,OnPhenomenologyandSocialRelations,UniversityofChicagoPress,1970.

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3
TheMeaningofCulture
Afishonlydiscoversitsneedforwaterwhenitisnolongerinit.Ourowncultureislikewatertoafish.Itsustainsus.Weliveandbreathethroughit.Whatoneculture
mayregardasessential,acertainlevelofmaterialwealthforexample,maynotbesovitaltoothercultures.

TheConceptofCulture

Socialinteraction,ormeaningfulcommunication,presupposescommonwaysofprocessinginformationamongthepeopleinteracting.Thesehaveconsequencesfor
doingbusinessaswellasmanagingacrossculturalboundaries.Themutualdependenceoftheactorsisduetothefactthattogethertheyconstituteaconnectedsystem
ofmeanings:ashareddefinitionofasituationbyagroup.

Howdothesesharedbeliefscomeaboutandwhatistheirinfluenceontheinteractionsbetweenmembersofanorganisation?Anabsoluteconditionformeaningful
interactioninbusinessandmanagementistheexistenceofmutualexpectations.

OnacoldwinternightinAmsterdamtheDutchauthorseessomeoneenteracigarshop.HisBurberrycoatandhornspectaclesrevealhimtobewelloff.Hebuysa
packofcigarettesandtakesaboxofmatches.Hethenvisitsthenewspaperstand,purchasesaDutchnewspaperandquicklywalkstoawindfreecornernearthe
shoppinggallery.IapproachhimandaskifIcansmokeacigarettewithhimandwhetherhewouldmindifIreadthesecondsectionofhispaper.Helooksatme
unbelievinglyandsays,"Ineedthiscornertolightmypaper".Hethrowsmethepackofcigarettesbecausehedoesnotsmoke.WhenIstandback,Iseethathelights
thenewspaperandholdshishandsabovetheflames.Heturnsouttobehomeless,searchingforwarmthandtooshytopurchaseasingleboxofmatcheswithoutthe
cigarettes.

Inthissituationmyexpectationsarenotmetbytheindividualobserved.Myexpectationsaboutthebehaviorofthemansaymoreaboutmyselfthanabouthim.WhatI
expectdependsonwhereIcome

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fromandthemeaningsIgivetowhatIexperience.Expectationsoccuronmanydifferentlevels,fromconcrete,explicitlevelstoimplicitandsubconsciousones.Iam
mislednotonlybythe"meaning"oftheman'sclothingandappearance,butalsoonthesimplelevelofthenewspaperandcigarettes.Whenweobservesuchsymbols
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theytriggercertainexpectations.Whentheexpectationsofwhowearecommunicatingwithmeetourown,thereismutualityofmeaning.

Theexistenceofmutualbeliefsisnotthefirstthingthatcomestomindwhenyouthinkaboutculture.Inculturaltrainingworkshopsweoftenstartbyasking
participants:"Whatdoestheconceptofculturemeantoyou?Canyoudifferentiateanumberofcomponents?"In20yearswehaveseldomencounteredtwoormore
groupsorindividualswithidenticalsuggestionsregardingtheconceptofculture.Thisshowstheinclusivenessoftheconcept.Themoredifficultquestionisperhaps:
"Canyounameanythingthatisnotencompassedbytheconceptofculture?"

TheLayersofCulture

TheOuterLayer:
ExplicitProducts

GobacktothetemporaryflightdetourtoBurundifromChapter1.Whatarethefirstthingsyouencounteronaculturallevel?Mostlikelyitisnotthestrange
combinationofnormsandvaluessharedbytheBurundis(whoactuallyconsistofHutusandTutsis,twoverydifferenttribes)thatcatchesyourattentionfirst.Norisit
thesharingofmeaningsandvalueorientations.Anindividual'sfirstexperienceofanewcultureisthelessesoteric,moreconcretefactors.Thislevelconsistsof
explicitculture.

Explicitcultureistheobservablerealityofthelanguage,food,buildings,houses,monuments,agriculture,shrines,markets,fashionsandart.Theyarethesymbolsofa
deeperlevelofculture.Prejudicesmostlystartonthissymbolicandobservablelevel.Weshouldneverforgetthat,asintheBurberrycoatexample,eachopinionwe
voiceregardingexplicitcultureusuallysaysmoreaboutwherewecomefromthanaboutthecommunitywearejudging.

IfweseeagroupofJapanesemanagersbowing,weareobviouslyobservingexplicitcultureasthesheeractofbending.However,ifweasktheJapanese"Whydo
youbow?",aquestiontheymaynotwelcome,wepenetratethenextlayerofculture.

TheMiddleLayer:
NormsandValues

Explicitculturereflectsdeeperlayersofculture,thenormsandvaluesofanindividualgroup.Normsarethemutualsenseagrouphasofwhatis

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Figure3.1
Amodelofculture

"right"and"wrong".Normscandeveloponaformallevelaswrittenlaws,andonaninformallevelassocialcontrol.Values,ontheotherhand,determinethe
definitionof"goodandbad",andarethereforecloselyrelatedtotheidealssharedbyagroup.

Acultureisrelativelystablewhenthenormsreflectthevaluesofthegroup.Whenthisisnotthecase,therewillmostlikelybeadestabilisingtension.IneasternEurope
wehaveseenforyearshowthenormsofCommunismfailedtomatchthevaluesofsociety.Disintegrationisalogicalresult.

Whilethenorms,consciouslyorsubconsciously,giveusafeelingof"thisishowInormallyshouldbehave",valuesgiveusafeelingof"thisishowIaspireordesire
tobehave".Avalueservesasacriteriontodetermineachoicefromexistingalternatives.Itistheconceptanindividualorgrouphasregardingthedesirable.For
instance,inoneculturepeoplemightagreewiththevalue:"Hardworkisessentialtoaprosperoussociety."Yetthebehaviouralnormsanctionedbythegroupmaybe:
"Donotworkharderthantheothermembersofthegroupbecausethenwewouldallbeexpectedtodomoreandwouldendupworseoff.''Herethenormdiffers
fromthevalue.

SomeJapanesemightsaythattheybowbecausetheyliketogreetpeople:thatisavalue.Othermightsaytheydon'tknowwhyexceptthattheydoitbecausethe
othersdoittoo.Thenwearetalkingaboutanorm.

Ittakessharedmeaningsofnormsandvaluesthatarestableandsalientforagroup'sculturaltraditiontobedevelopedandelaborated.

Whyhavedifferentgroupsofpeople,consciouslyorsubconsciously,chosendifferentdefinitionsofgoodorbad,rightorwrong?

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TheCore:
AssumptionsaboutExistence
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Toanswerquestionsaboutbasicdifferencesinvaluesbetweenculturesitisnecessarytogobacktothecoreofhumanexistence.

Themostbasicvaluepeoplestriveforissurvival.Historically,andpresently,wehavewitnessedcivilisationsfightingdailywithnature:theDutchwithrisingwaterthe
SwisswithmountainsandavalanchestheCentralAmericansandAfricanswithdroughtsandtheSiberianswithbittercold.

Eachhasorganisedthemselvestofindthewaystodealmosteffectivelywiththeirenvironments,giventheiravailableresources.Suchcontinuousproblemsare
eventuallysolvedautomatically."Culture"comesfromthesamerootastheverb"tocultivate",meaningtotillthesoil:thewaypeopleactuponnature.Theproblemsof
dailylifearesolvedinsuchobviouswaysthatthesolutionsdisappearfromourconsciousness.Iftheydidnotwewouldgocrazy.Imaginehavingtoconcentrateon
yourneedforoxygenevery30seconds.Thesolutionsdisappearfromourawareness,andbecomepartofoursystemofabsoluteassumptions.

Thebestwaytotestifsomethingisabasicassumptioniswhenthequestionprovokesconfusionorirritation.Youmight,forexample,observethatsomeJapanese
bowdeeperthanothers.Again,ifyouaskwhytheydoittheanswermightbethattheydon'tknowbutthattheotherpersondoesittoo(norm)orthattheywantto
showrespectforauthority(value).AtypicalDutchquestionthatmightfollowis:"Whydoyourespectauthority?"ThemostlikelyJapanesereactionwouldbeeither
puzzlementorasmile(whichmightbehidingtheirirritation).Whenyouquestionbasicassumptionsyouareaskingquestionsthathaveneverbeenaskedbefore.It
mightleadtodeeperinsights,butitalsomightprovokeannoyance.TryintheUSAortheNetherlandstoraisethequestionofwhypeopleareequalandyouwillsee
whatwemean.

Groupsofpeopleorganisethemselvesinsuchawaythattheyincreasetheeffectivenessoftheirproblemsolvingprocesses.Becausedifferentgroupsofpeoplehave
developedindifferentgeographicregions,theyhavealsoformeddifferentsetsoflogicalassumptions.

Weseethataspecificorganisationalcultureorfunctionalcultureisnothingmorethanthewayinwhichgroupshaveorganisedthemselvesovertheyearstosolvethe
problemsandchallengespresentedtothem.Changesinaculturehappenbecausepeoplerealisethatcertainoldwaysofdoingthingsdonotworkanymore.Itisnot
difficulttochangeculturewhenpeopleareawarethatthesurvivalofthecommunityisatstake,wheresurvivalisconsidereddesirable.

Fromthisfundamentalrelationshipwiththe(natural)environment

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man,andaftermanthecommunity,takesthecoremeaningoflife.Thisdeepestmeaninghasescapedfromconsciousquestioningandhasbecomeselfevident,
becauseitisaresultofroutineresponsestotheenvironment.Inthissensecultureisanythingbutnature.
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CultureDirectsOurActions

Cultureisbeneathawarenessinthesensethatnoonebotherstoverbaliseit,yetitformstherootsofaction.Thismadeoneanthropologistlikenittoaniceberg,with
itslargestimplicitpartbeneaththewater.

Cultureismanmade,confirmedbyothers,conventionalisedandpassedonforyoungerpeopleornewcomerstolearn.Itprovidespeoplewithameaningfulcontextin
whichtomeet,tothinkaboutthemselvesandfacetheouterworld.

InthelanguageofCliffordGeertz,cultureisthemeansbywhichpeople"communicate,perpetuate,anddeveloptheirknowledgeaboutattitudestowardslife.Culture
isthefabricofmeaningintermsofwhichhumanbeingsinterprettheirexperienceandguidetheiraction".1

Overtime,thehabitualinteractionswithincommunitiestakeonfamiliarformsandstructures,whichwewillcalltheorganisationofmeaning.Thesestructuresare
imposeduponthesituationswhichpeopleconfrontandarenotdeterminedbythesituationitself.Forexample,thewinkofaneye.Isitaphysicalreflexfromdustin
theeye?Oraninvitationtoaprospectivedate?Orcoulditbesomeonemakingfunofyoutoothers?Perhapsanervoustick?Thewinkitselfisreal,butitsmeaningis
attributedtoitbyobservers.Theattributedmeaningmayormaynotcoincidewiththeintendedmeaningofthewink.Effectivesocialinteraction,though,dependson
theattributedmeaningandintendedmeaningcoinciding.

Culturescanbedistinguishedfromeachotherbythedifferencesinsharedmeaningstheyexpectandattributetotheirenvironment.Cultureisnota"thing,"asubstance
withaphysicalrealityofitsown.Rather,itismadebypeopleinteracting,andatthesametimedeterminingfurtherinteraction.

Cultureasa"NormalDistribution"

Peoplewithinaculturedonotallhaveidenticalsetsofartifacts,norms,valuesandassumptions.Withineachculturethereisawidespreadofthese.Thisspreaddoes
haveapatternaroundanaverage.So,inasense,thevariationaroundthenormcanbeseenasanormaldistribution.Distinguishingoneculturefromanotherdepends
onthelimitswewantto

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makeoneachsideofthedistribution.
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Inprinciple,eachcultureshowsthetotalvariationofitshumancomponents.SowhiletheUSAandFrancehavegreatvariations,therearealsomanysimilarities.The
"average",or"mostpredictable"behaviour,asdepictedbyFigure3.2,willbedifferentforthesetwocountries.

Figure3.2
Cultureasanormaldistribution

Figure3.3
Cultureandstereotyping

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Cultureswhosenormsdiffersignificantlytendtospeakabouteachotherintermsofextremes(Figure3.3).AmericansmightdescribetheFrenchashavingthe
behaviouralcharacteristicsshowninsectionAinthegraph,orthetailofthenormaldistribution.TheFrenchwilluseasimilarcaricature,sectionZ,fortheAmericans.
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Thisisbecauseitisdifferencesratherthansamenesswhichwenotice.

Usingextreme,exaggeratedformsofbehaviourisstereotyping.Itis,quiteunderstandably,theresultofregisteringwhatsurprisesus,ratherthanwhatisfamiliar.But
therearedangersindoingthis.First,astereotypeisaverylimitedviewoftheaveragebehaviourinacertainenvironment.Itexaggeratesandcaricaturestheculture
observedand,unintentionally,theobserver.

Second,peopleoftenequatesomethingdifferentwithsomethingwrong."Theirwayisclearlydifferentfromours,soitcannotberight."Finally,stereotypingignoresthe
factthatindividualsinthesameculturedonotnecessarilybehaveaccordingtotheculturalnorm.Individualpersonalitymediatesineachculturalsystem.

CulturesVaryinSolutionstoCommonProblemsandDilemmas

Toexplainvariationsinthemeaningorganisationshaveforpeopleworkinginthem,weneedtoconsidervariationsinmeaningsfordifferentcultures.Ifwecanidentify
andcomparecategoriesofculturethataffectorganisations,thiswillhelpusunderstandtheculturaldifferencesthatmustbemanagedininternationalbusiness.

Ineveryculturealimitednumberofgeneral,universallysharedhumanproblemsneedtobesolved.Oneculturecanbedistinguishedfromanotherbythespecific
solutionitchoosesforthoseproblems.Theanthropologists,F.KluckhohnandF.L.Strodtbeck,2identifyfivecategoriesofproblems,arguingthatallsocietiesare
awareofallpossiblekindsofsolutionbutpreferthemindifferentorders.Henceinanyculturethereisasetof"dominant",orpreferred,valueorientations.Thefive
basicproblemsmankindfaces,accordingtothisscheme,areasfollows:

1Whatistherelationshipoftheindividualtoothers?(relationalorientation)

2Whatisthetemporalfocusofhumanlife?(timeorientation)

3Whatisthemodalityofhumanactivity?(activityorientation)

4Whatisahumanbeing'srelationtonature?(mannatureorientation)

5Whatisthecharacterofinnatehumannature?(humannatureorientation)

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Inshort,KluckhohnandStrodtbeckarguethatmankindisconfrontedwithuniversallysharedproblemsemergingfromrelationshipswithfellowbeings,time,activities
andnature.Oneculturecanbedistinguishedfromanotherbythearrangementofthespecificsolutionsitselectsforeachsetofproblemsituations.Thesolutions
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dependonthemeaninggivenbypeopletolifeingeneral,andtotheirfellows,timeandnatureinparticular.

Inourresearchwehavedistinguishedsevendimensionsofculture(seeChapter1),alsobasedonsocieties'differingsolutionstorelationshipswithotherpeople,time
andnature.Thefollowingchapterswillexplainthesedimensionsandhowtheyaffecttheprocessofmanagingacrosscultures.

Insteadofrunningtheriskofgettingstuckbyperceivingculturesasstaticpointsonadualaxismap,webelievethatculturesdancefromonepreferredendtothe
oppositeandback.Inthatwaywedonotriskoneculturalcategoryexcludingitsopposite,ashashappenedinsomanysimilarstudies,ofwhichHofstede'sfive
mutuallyexclusivecategoriesarethebestknown.Rather,webelievethatoneculturalcategoryseeksto"manage"itsoppositeandthatvaluedimensionsselforganize
insystemstogeneratenewmeanings.Culturesarecircleswithpreferredarcsjoinedtogether.Inthisrevisededitionwehavethereforeintroducednewquestionswhich
measuretheextenttowhichmanagersseektointegrateandreconcilevalues.Andwearetestingthehypothesisthatcultureswhichhaveanaturaltendencyto
reconcileseeminglyopposingvalueshaveabetterchanceofbeingsuccessfuleconomicallythancultureswhichlackthatinclination.Allculturesaresimilarinthe
dilemmastheyconfront,yetdifferentinthesolutionstheyfind,whichcreativelytranscendtheopposites.

Summary

Thischapterdescribedhowcommonmeaningsariseandhowtheyarereflectedthroughexplicitsymbols.Wesawthatculturepresentsitselftousinlayers.Theouter
layersaretheproductsandartifactsthatsymbolisethedeeper,morebasicvaluesandassumptionsaboutlife.Thedifferentlayersarenotindependentfromone
another,butarecomplementary.

Thesharedmeaningsthatarethecoreofculturearemanmade,areincorporatedintopeoplewithinaculture,yettranscendthepeopleintheculture.Inotherwords,
thesharedmeaningsofagrouparewithinthemandcausethemtointerpretthingsinparticularways,butarealsoopentobechangedifmoreeffective"solutions"to
problemsofsurvivalaredesiredbythegroup.

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Thesolutionstothreeuniversalproblemsthatmankindfacesdistinguishoneculturefromanother.Theproblemspeople'srelationshiptotime,natureandother
humanbeingsaresharedbymankindtheirsolutionsarenot.Thelatterdependontheculturalbackgroundofthegroupconcerned.Thecategoriesofculturethat
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emergefromthesolutionscultureschoosewillbethesubjectofthenextsevenchapters.Theirsignificancetoworkrelatedrelationships,managementinstrumentsand
organisationalstructureswillalsobeexplored.

References

1Geertz,C.,TheInterpretationofCultures,BasicBooks,NewYork,1973.

2Kluckhohn,F.andStrodtbeck,F.L.,VariationsinValueOrientations,GreenwoodPress,Westport,Conn.,1961.

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4
RelationshipsandRules
Peopleeverywhereareconfrontedwiththreesourcesofchallenge.Theyhaverelationshipswithotherpeople,suchasfriends,employees,customersandbosses.
Theymustmanagetimeandageing.Andtheymustsomehowcometotermswiththeexternalnatureoftheworld,beitbenignorthreatening.

Wehavealreadyidentifiedthefivedimensionsofhowwerelatetootherpeople.Itiseasiesttosummarisetheseinabstracttermswhichmayseemratherabstruse.I
listthemagainwithsometranslationsinbrackets.

1Universalismversusparticularism(rulesversusrelationships).

2Communitarianismversusindividualism(thegroupversustheindividual).

3Neutralversusemotional(therangeoffeelingsexpressed).

4Diffuseversusspecific(therangeofinvolvement).

5Achievementversusascription(howstatusisaccorded).

Thesefivevalueorientationsgreatlyinfluenceourwaysofdoingbusinessandmanagingaswellasourresponsesinthefaceofmoraldilemmas.Ourrelativeposition
alongthesedimensionsguidesourbeliefsandactionsthroughlife.Forexample,weallconfrontsituationsinwhichtheestablishedrulesdonotquitefitaparticular
circumstance.Dowedowhatisdeemed"right"ordoweadapttothecircumstancesofthesituation?Ifweareinadifficultmeetingdoweshowhowstronglywefeel
andrisktheconsequences,ordoweshow"admirablerestraint"?Whenweencounteradifficultproblemdowebreakitapartintopiecestounderstandit,ordowe
seeeverythingasrelatedtoeverythingelse?Onwhatgroundsdoweshowrespectforsomeone'sstatusandpower,becausetheyhaveachieveditorbecauseother
circumstances(likeage,educationorlineage)defineit?Thesearealldilemmastowhichcultureshavedifferinganswers.Partofthepurposeofcultureistoprovide
answersandguidebehaviourinotherwisevexatioussituations.

BeforediscussingthefirstdimensionuniversalversusparticularformsofrelatingtootherpeopleletusrejointheperplexedMrJohnsonof

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theMissouriComputationalCompany(MCC)fromChapter2.Heisduetopresideoveraninternationalhumanresourcesmeetinginwhich15nationalrepresentatives
areexpectedtoagreeontheuniformimplementationofapayforperformancesystem.HereissomebackgroundonMCCandasummaryofitsmainpolicydirectives.
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Sincethelate1970sMCChasbeenoperatinginmorethan20countries.Asitsforeignsaleshavegrown,topmanagementhasbecomeincreasinglyconcernedabout
internationalcoordination.Overseasgrowth,whilerobust,hasbeenunpredictable.Thecompanyhasthereforedecidedtocoordinatetheprocessesofmeasuring
andrewardingachievementworldwide.Greaterconsistencyinmanagingcountryoperationsisalsoontheagenda.Thereisnotacompletedisregardfornational
differencesthegeneralmanagerworkedinGermanyforfiveyears,andthemarketingmanagerspentsevenyearsintheSingaporeoperation.

IthasbeenagreedtointroduceanumberofpolicyprincipleswhichwillpermeateMCCplantsworldwide.Theyenvisageashareabledefinitionof"Howwedothingsin
MCC"toleteveryoneinMCC,wherevertheyareintheworld,knowwhatthecompanystandsfor.Withinthis,therewillbecentrallycoordinatedpoliciesforhuman
resources,salesandmarketing.

Thiswouldbenefitcustomerssincethey,too,areinternationalisinginmanycases.TheyneedtoknowthatMCCcouldprovidehighlevelsofserviceandeffectivenessto
theirbusinesses,whichincreasinglycrossborders.MCCneedstoachieveconsistent,recognisablestandardsregardlessofthecountryinwhichitisoperating.Thereis
alreadyahistoryofstandardisingpolicies.

TheRewardSystem

Twoyearsago,confrontedwithheavycompetition,thecompanydecidedtouseamoredifferentiatedrewardsystemforthepersonnelwhosoldandservicedmid
sizecomputers.OneofthereasonswastoseewhetherthemotivationoftheAmericansalesforcecouldbeincreased.Inaddition,thecompanybecameawarethat
thebestsalespeopleoftenleftthefirmforbetterpayingcompetitors.Theydecidedonatwoyeartrialwiththe15activesalespeopleintheStLouisarea.

ExperimentwithPaybyPerformance

Theexperimentconsistedofthefollowingelements.

Abonuswasintroducedwhichdependedontheturnoverfigureseachquarterforeachsalesperson:100%oversalaryforthetopsalesperson60%forthesecond
best30%fornumbersthreeandfourandnobonusfortheremainder.

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Thebasicsalaryofallsalespeopleofmidsizecomputerswasdecreasedby10%.
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Duringthefirstyearofthetrialperiodtherewerecontinuousdiscussionsamongtheaffectedemployees.Fivesalespeopleleftthecompanybecausetheywere
convincedthesystemtreatedthemunjustly.Totalsalesdidnotincreaseasaresultofallthis.Despitethisdisaster,managementcontinuedtheexperimentbecausethey
believedthatthiskindofchangewasnecessaryandwouldtaketimetobeaccepted.

TheUniversalVersustheParticular

MCC intheUSAisofcourseoperatinginauniversalistculture.Butevenhereauniversalistsolutionhasrunintoparticularistproblems.Thisfirstdimensiondefineshow
wejudgeotherpeople'sbehaviour.Therearetwo"pure"yetalternativetypesofjudgment.Atoneextremeweencounteranobligationtoadheretostandardswhich
areuniversallyagreedtobythecultureinwhichwelive."Donotlie.Donotsteal.Dountoothersasyouwouldhavethemdountoyou"(theGoldenRule),andsoon.
Attheotherextremeweencounterparticularobligationstopeopleweknow."Xismydearfriend,soobviouslyIwouldnotlietohimorstealfromhim.Itwouldhurt
usbothtoshowlessthankindnesstooneanother."

Universalist,orrulebased,behaviourtendstobeabstract.TrycrossingthestreetwhenthelightisredinaveryrulebasedsocietylikeSwitzerlandorGermany.Even
ifthereisnotraffic,youwillstillbefrownedat.Italsotendstoimplyequalityinthesensethatallpersonsfallingundertheruleshouldbetreatedthesame.But
situationsareorderedbycategories.Forexample,if"others"towhomyou"dounto"arenotcategorisedashuman,therulesmaynotapply.Finally,rulebased
conducthasatendencytoresistexceptionsthatmightweakenthatrule.Thereisafearthatonceyoustarttomakeexceptionsforillegalconductthesystemwill
collapse.

Particularistjudgmentsfocusontheexceptionalnatureofpresentcircumstances.Thispersonisnot"acitizen"butmyfriend,brother,husband,childorpersonof
uniqueimportancetome,withspecialclaimsonmyloveormyhatred.Imustthereforesustain,protectordiscountthispersonnomatterwhattherulessay.

Businesspeoplefrombothsocietieswilltendtothinkeachothercorrupt.Auniversalistwillsayofparticularists,"theycannotbetrustedbecausetheywillalwayshelp
theirfriends"aparticularist,conversely,

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willsayofuniversalists,''youcannottrustthemtheywouldnotevenhelpafriend".
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Inpracticeweusebothkindsofjudgment,andinmostsituationsweencountertheyreinforceeachother.Ifafemaleemployeeisharassedintheworkplacewewould
disapproveofthisbecause"harassmentisimmoralandagainstcompanyrules"and/orbecause"itwasaterribleexperienceforJenniferandreallyupsether".The
universalist'schiefobjection,though,willbethebreachofrules"womenshouldnothavetodealwithharassmentintheworkplaceitiswrong".Theparticularistis
likelytobemoredisapprovingofthefactthatitcauseddistresstopoorJennifer.

Problemsarenotalwayssoeasilyagreeduponasthisone.Sometimesrulesofsupposeduniversalapplicationdonotcoveracaseofparticularconcernverywell.
Therearecircumstancesmuchmorecomplexthantherulesappeartohaveenvisaged.ConsiderthefurtheradventuresoftheMissouriComputationalCompany,with
itsheadofficeinStLouisintentonimposinggeneralpolicyguidelinesonemployeesofmanynations.

MCChasrecentlyacquiredasmallbutsuccessfulSwedishsoftwarecompany.ItsheadfoundeditthreeyearsagowithhissonCarl,andwasjoinedbyhisnewly
graduateddaughterClaraandhisyoungestsonPeter12monthsago.SincetheacquisitionMCChasinjectedconsiderablecapitalandalsogiventhecompanyitsown
computerdistributionandservicinginSweden.Thishasgivenarealboosttothebusiness.

MCC isnowconvincedthatrewardsforsalespeoplemustreflecttheincreasingcompetitioninthemarket.Ithasdecreedthatatleast30%ofremunerationmust
dependonindividualperformance.AtthebeginningofthisyearCarlmarriedaveryrichwife.Themarriageishappyandthishashadaneffectonhissalesrecord.He
willeasilyearnthe30%bonus,thoughthiswillbesmallinrelationtohistotalincome,supplementedbyhiswife'sandbyhisshareoftheacquisitionpayment.

Peterhasalesshappymarriageandmuchlessmoney.Hisonlyaveragesalesfigureswillmeanthathisincomewillbereducedwhenhecanillaffordit.Clara,who
marriedwhilestillinschool,hastwochildrenandthisyearlostherhusbandinanaircrash.Thistragiceventcausedhertohaveaweaksalesyear.

AttheinternationalsalesconferencenationalMCCmanagerspresenttheirsalaryandbonusranges.TheheadoftheSwedishcompanybelievesthatperformanceshould
berewardedandthatfavouritismshouldbeavoidedhehasmanynonfamilymembersinhiscompany.Yetheknowsthatunusualcircumstancesinthelivesofhis
childrenhavemadethiscontestanythingbutfair.Therewardswithheldwillhurtmoredeeplythantherewardsbestowedwillmoti

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vate.HetriestoexplainthesituationtotheAmericanHRchiefandtheBritishrepresentative,whobothlookscepticalandtalkaboutexcuses.Heaccedestotheir
demands.
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HiscolleaguesfromFrance,Italy,SpainandtheMiddleEast,whoallknowthesituation,stareindisbelief.Theywouldhavebackedhimontheissue.Hisfamilylater
saytheyfeelletdown.Thiswasnotwhattheyjoinedthecompanyfor.

ThisepisodefromourongoingMCCcaseshowsthatuniversalistandparticularistpointsofviewarenotalwayseasytoreconcile.Thecultureyoucomefrom,your
personality,religionandthebondswiththoseconcernedleadyoutofavouroneapproachmorethananother.

UniversalistVersusParticularistOrientationsinDifferentCountries

MuchoftheresearchintothisculturaldimensionhascomefromtheUSA,andisinfluencedbyAmericanculturalpreferences.Theemergingconsensusamongthese
researchers,though,isthatuniversalismisafeatureofmodernisationperse,ofmorecomplexanddevelopedsocieties.Particularism,theyargue,isafeatureof
smaller,largelyruralcommunitiesinwhicheveryoneknowseveryonepersonally.Theimplicationisthatuniversalismandsophisticatedbusinesspracticegotogether
andallnationsmightbebetteroffformorenearlyresemblingtheUSA.

Wedonotacceptthisconclusion.Instead,webelievethatculturaldilemmasneedtobereconciledinaprocessofunderstandingtheadvantagesofeachcultural
preference.Thecreationofwealthandthedevelopmentofindustryshouldbeanevolvingprocessofdiscoveringmoreandbetteruniversalscoveringandsustaining
moreparticularcasesandcircumstances.

Thestorybelow,createdbyStoufferandToby(Americans),1isanotherexerciseusedinourworkshops.Ittakestheformofadilemmawhichmeasuresuniversaland
particularistresponses.

Youareridinginacardrivenbyaclosefriend.Hehitsapedestrian.Youknowhewasgoingatleast35milesperhourinanareaofthecitywherethemaximumallowedspeedis20
milesperhour.Therearenowitnesses.Hislawyersaysthatifyoutestifyunderoaththathewasonlydriving20milesperhouritmaysavehimfromseriousconsequences.

Whatrighthasyourfriendtoexpectyoutoprotecthim?

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1aMyfriendhasadefiniterightasafriendtoexpectmetotestifytothelowerfigure.

1bHehassomerightasafriendtoexpectmetotestifytothelowerfigure.
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1cHehasnorightasafriendtoexpectmetotestifytothelowerfigure.

Whatdoyouthinkyouwoulddoinviewoftheobligationsofaswornwitnessandtheobligationtoyourfriend?

1dTestifythathewasgoing20milesanhour.

1eNottestifythathewasgoing20milesanhour.

Figure4.1showstheresultofputtingthesequestionstoavarietyofnationalities.Thepercentagerepresentsthosewhoansweredthatthefriendhadnorightorsome
rightandwouldthennottestify(corb+e).NorthAmericansandmostnorthEuropeansemergeasalmosttotallyuniversalistintheirapproachtotheproblem.The
proportionfallstounder75%fortheFrenchandJapanese,whileinVenezuelatwothirdsofrespondentswouldlietothepolicetoprotecttheirfriend.

Timeandagaininourworkshops,theuniversalists'responseisthat,astheseriousnessoftheaccidentincreases,theobligationtohelptheirfrienddecreases.They
seemtobesayingtothemselves,"thelawwasbrokenandtheseriousconditionofthepedestrianunderlinestheimportanceofupholdingthelaw".Thissuggeststhat
universalismisrarelyusedtotheexclusionofparticularism,ratherthatitformsthefirstprincipleintheprocessofmoralreasoning.Particularconsequencesremindus
oftheneedforuniversallaws.

Particularistcultures,however,arerathermorelikelytosupporttheirfriendasthepedestrian'sinjuriesincrease.Theyseemtoreason,"myfriendneedsmyhelpmore
thanevernowthatheisinserioustroublewiththelaw".Universalistswouldregardsuchanattitudeascorrupt.Whatifweallstartedtolieonbehalfofthosecloseto
us?Societywouldfallapart.Thereisindeedsomethinginthisargument.Butparticularism,whichisbasedonalogicoftheheartandhumanfriendship,mayalsobe
thechiefreasonthatcitizenswouldnotbreaklawsinthefirstplace.Doyouloveyourchildrenorpresentthemwithacopyofthecivilcode?Andwhatifthelaw
becomesaweaponinthehandsofacorruptelite?Youcanchoosewhatyoucallcorruption.

Inaworkshopweweregivingsometimeagowepresentedthisdilemma.TherewasoneBritishwoman,Fiona,amongthegroupofFrenchparticipants.Fionastarted
thediscussionofthedilemmabyask

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Figure4.1
Thecarandthepedestrian
Percentageofrespondentsoptingforauniversalistsystemratherthanaparticularsocialgroup
(answerscorb+e)

ingabouttheconditionofthepedestrian.Withoutthatinformation,shesaid,itwouldbeimpossibletoanswerthequestion.Whenthegroupaskedherwhythis
informationwassoindispensable,Dominique,anemployeeofaFrenchairline,interjected:"Naturallyitisbecauseifthepedestrianisveryseriouslyinjuredoreven
dead,thenmyfriendhastheabsoluterighttoexpectmysupport.Otherwise,Iwouldnotbesosure."Fiona,slightlyirritatedbutstilllaughing,said:"That'samazing.
Formeitisabsolutelytheotherwayaround."

Thisillustrationshowsthatwe"anchor"ourresponseinoneofthetwoprinciples.Allnationsmightagreethatuniversalsandparticularsshouldideallyberesolved,that
is,thatallexceptionalcasesbejudgedbymorehumanerules.Whatdiffersaretheirstartingpoints.

AsFigure4.1shows,universalistsaremorecommoninProtestantcultures,wherethecongregationrelatestoGodbyobediencetoHiswrittenlaws.Thereareno
humanintermediariesbetweenGodandHisadher

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ents,noonewiththediscretiontohearparticularconfessions,forgivesinsormakespecialallowances.PredominantlyCatholicculturesretainedthesefeaturesof
religion,whicharemorerelationalandparticularist.Peoplecanbreakcommandmentsandstillfindcompassionfortheiruniquecircumstances.GodfortheCatholicsis
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likethem,moreoverHewillprobablyunderstandthatyouwerelyingforyourfriend,particularlyonewhohadthebadlucktohavethestupidpedestriancrossingin
frontofhisorhercar.

Countrieswithstronglyuniversalistculturestrytousethecourtstomediateconflicts.ArecentlyreleasedAmericanbookonautomobileinsuranceiscalledHitMeI
NeedtheMoney.IndeedtheUSA,creditedwithbeingthemostlitigioussocietyonearth,hasconsiderablymorelawyersperheadofpopulationthanrelatively
particularistJapan.Themoreuniversalthecountry,thegreatertheneedforaninstitutiontoprotectthetruth.Thereisalsoincidentallyastrongcorrelationbetween
universalismandexpenditureperheadonpetfood.ThisisnotthesameaspetownershipparticularistFrancehasmoredogsthanuniversalistGermany,butFrench
dogsareintegratedintothefamilyandeatleftovers.Ithasnothingtodowithwhatlawyerseat,eitherthereasonisthelackoftrustinhumanityinauniversalist
society.Dogs,likelawyers,aretheinstitutionneededforprotection,andoneofthewaysmistrustinpeoplecanbecombatted.

However,countriesmaybemoreorlessuniversalistdependingonwhattherulesareabout.FrenchandItalianmanagers,whowereparticularistonthetraffic
accident,believethatwhenwritingonasubjectasimportantasfoodyouhaveauniversalobligationtotruth.Considerthefollowingscenario,describedbyStouffer
andToby.
Youareanewspaperjournalistwhowritesaweeklyreviewofnewrestaurants.Aclosefriendofyourshassunkallhersavingsinanewrestaurant.Youhaveeatenthereandyou
reallythinktherestaurantisnogood.

Whatrightdoesyourfriendhavetoexpectyoutogoeasyonherrestaurantinyourreview?

1aShehasadefiniterightasafriendtoexpectmetogoeasyonherrestaurantinmyreview.

1bShehassomerightasafriendtoexpectmetodothisforher.

1cShehasnorightasafriendtoexpectmetodothisforher.

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Figure4.2
Thebadrestaurant
Percentageofrespondentswhowouldnotwriteafalserevieworgivenorightto
thefriendtoexpecttobehelped(answerscorb+e)

Wouldyougoeasyonherrestaurantinyourreviewgivenyourobligationstoyourreadersandyourobligationtoyourfriend?

1dYes.

1eNo.

Inthissecondexample,auniversalist'sviewisthatasajournalistyouarewritingforeveryone,theuniverseofreaders,notforyourfriend.Yourobligationistobe
"truthfulandunbiased".Insomecultures,then,itseemsmoreimportanttouniversalisegoodtastethanlegalprocedure.Forthemitiseasiertoleavethepedestrianin
troublethantojudgethequalityoffoodwrongly.(SeeFigure4.2.)

Athirddilemmaweusetoexplorethisdimensionhastodowiththeruleofconfidentialityconcerningthesecretdeliberationsofabusiness.

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Youareadoctorforaninsurancecompany.Youexamineaclosefriendwhoneedsmoreinsurance.Youfindheisinprettygoodshape,butyouaredoubtfulononeortwominor
pointswhicharedifficulttodiagnose.
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Whatrightdoesyourfriendhavetoexpectyoutotonedownyourdoubtsinhisfavour?

1aMyfriendhasadefiniterightasafriendtoexpectmetotonedownmydoubtsinhisfavour.

1bHehassomerightasafriendtoexpectmetonedownmydoubtsinhisfavour.

1cHehasnorightasafriendtoexpectmetotonedownmydoubtsinhisfavour.

Wouldyouhelpyourfriendinviewoftheobligationsyoufeeltowardsyourinsurancecompanyandyourfriend?

1dYes.

1eNo.

Therearesomeinterestingdifferencesherebetweenthescoresonthisdilemmaandtheprevioustwo.TheJapaneseandIndonesians,especially,jumpfromthe
situationalethicstheyshowedpreviouslytoastronglyuniversalisticstanceoncorporateconfidentiality.Quitepossiblythisoccursbecausethesituationisbroaderthan
aparticularfriendatstakehereisloyaltytoagrouporcorporationversusloyaltytoanindividualoutsidethatgroup.

Thisdilemmamayalsobepresentingissuesofcommunitarianismversusindividualism,tobeconsideredinChapter5.Asthesedimensionsarerelatedaswellas
relational,wemustbecarefulininterpretingthemeaningdifferentnationalgroupsgivethem.

UniversalismVersusParticularisminInternationalBusiness

Whencompaniesgoglobalthereisanalmostinevitablemovetowardsuniversalistwaysofthinking.Afterall,productsandservicesarebeingofferedtoawiderand
wideruniverseofpeople.Theirwillingnesstobuyis"proof"ofauniversalappeal.Itfollowsthatthewaysofproducingtheproduct,managingthosewhomakeitand
distributingittocustomersshouldalsobeuniversalised.Letusconsiderthefollowingexamplesofsomeoftheareaswheretheuniversalistversusparticularistdilemma
showsup:

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Figure4.3
Thedoctorandtheinsurancecompany
Percentageofrespondentswhowouldnottonedowntheirdoubtsinfavouroftheirfriend
(answerscorb+e)

thecontract

timingabusinesstrip

theroleofheadoffice

jobevaluationsandrewards.

TheContract

Weightycontractsareawayoflifeinuniversalistcultures.Acontractservestorecordanagreementonprincipleandcodifieswhattherespectivepartieshave
promisedtodo.Italsoimpliesconsenttotheagreementandprovidesrecourseifthepartiesdonotkeeptotheirsideofthedeal.Introducinglawyersintotheprocess
ofnegotiationputsthepartiesonnoticethatanybreachcouldbecostlyandthatpromisesmadeinitiallymustbekept,eveniftheseproveinconvenient.

Howmightalegalcontractbeperceivedbyamoreparticularistbusi

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nesspartner?Thereisanotherreasonwhypeopletendtokeeptheirpromises.Theyhaveapersonalrelationshipwiththeircolleague,whomtheyholdinparticular
regard.Ifyouintroducecontractswithstrictrequirementsandpenaltyclauses,theimpliedmessageisthatonepartywouldcheattheotherifnotlegallyrestrainedfrom
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doingso.Thosewhofeeltheyarenottrustedmayaccordinglybehaveinuntrustworthyways.Alternativelytheymayterminatetheirrelationshipwithauniversalist
businesspartnerbecausethatpartner'sprecautionsoffendthemandthecontracttermsaretoorigidtoallowagoodworkingrelationshiptoevolve.

Oneseriouspitfallforuniversalistculturesindoingbusinesswithmoreparticularistonesisthattheimportanceoftherelationshipisoftenignored.Thecontractwillbe
seenasdefinitivebytheuniversalist,butonlyasaroughguidelineorapproximationbytheparticularist.Thelatterwillwanttomakethecontractasvagueaspossible
andmayobjecttoclausesthattiethemdown.Thisisnotnecessarilyasignofimpendingsubterfuge,butapreferenceformutualaccommodation.Giventheriseof
Japaneseeconomicpower,theautomaticsuperiorityoftheuniversalistpositioncannolongerbeassumed.Goodcustomerrelationshipsandgoodemployee
relationshipsmayinvolvedoingmorethanthecontractrequires.Moreover,relationshipshaveaflexibilityanddurabilitywhichcontractsoftenlack.Asian,Araband
Latinbusinesspeoplemayexpectcontractstobequalifiedwherecircumstanceshavechanged.

InatenyearcontractbetweenaCanadianballbearingproducerandanArabicmachinemanufacturer,aminimumannualquantityofballbearingswasagreedupon.
AfteraboutsixyearstheordersfromtheMiddleEaststoppedcomingin.TheCanadians'firstreactionwas:"Thisisillegal."

Avisittothecustomeronlyincreasedtheirconfusion.ThecontracthadapparentlybeencancelledunilaterallybytheArabsbecausetheCanadiancontractsignerhad
leftthecompany.ThesocalleduniversallyapplicablelawwasnotconsideredrelevantanymoreintheeyesoftheArabs.WhatcouldtheCanadianssayagainstthis
logic,especiallywhentheydiscoveredthattheballbearingswereneverevenused?Itturnedoutthattheproductwaspurchasedsolelyoutoftheparticularloyaltyto
theCanadiancontractsigner,notbecauseofafeltlegalobligation.

TimingaBusinessTrip

AuniversalistbusinesspersonaNorthAmerican,British,Dutch,GermanorScandinavianiswisetotakemuchlongerthanusualwhenvisitingaparticularist
culture.Particularistsgetsuspiciouswhenhurried.Atleasttwicethetimenormallynecessarytoestablishacontractualagreementisnecessarytoforgewhathastobe
acloserrelationship.Itisimpor

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tanttocreateasoundrelationalandtrustworthybasisthatequatesthequalityoftheproductwiththequalityofthepersonalrelationship.RollsRoycerecentlygave
ToyotaadeadlinetomakeanacquisitionofferandToyotapromptlywithdrew.SomethingsimilarhappenedinnegotiationsbetweenSamsungandFokker,whenafter
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aDutchdeadlineSamsungpulledout.Thisprocesstakesaconsiderableamountoftime,butforparticularists,thetimetakentogrowclosetoyourpartnerissavedin
theavoidanceoftroubleinthefuture.Ifyouarenotwillingtotaketimenow,therelationshipisunlikelytosurvivevicissitudes.

TheRoleofHeadOffice

Inthosewesterncountrieswhicharehighinuniversalism,theheadofficetendstoholdthekeystoglobalmarketing,globalproductionandglobalhumanresource
management.Ourownexperience,though,isthat,withinmoreparticularistnationalcultures,thewritoftheheadofficefailstoshapelocalwaysofoperating.Different
groupsdeveloptheirownlocalstandardswhichbecomethebasisoftheirsolidarityandresistancetocentralisededicts.Stratifiedboundariesarecreatedbythe
nationalsubsidiarybetweenitselfandheadofficeanddifferentiationisdeliberatelysought.

Particularistgroupsseekgratificationthroughrelationships,especiallyrelationshipstotheleader.Generally,themoreparticularist,thegreaterthecommitmentbetween
employerandemployee.Theemployerintheseculturesstrivestoprovideabroadarrayofsatisfactionstoemployees:security,money,socialstanding,goodwilland
socioemotionalsupport.Relationshipsaretypicallycloseandlonglasting.Jobturnoverislowandcommitmentstothelabourforcelongterm.Thelocalchiefwishes
allthistoredoundtohisorherowncredit,notthatoftheforeignowner.ResearchdoneinanAmericanbankwithbranchesinMexicofoundMexicanstafftobefar
moreparticularist,withatendencytodistancethemselvesasfaraspossiblefromheadofficeintheUSAinordertominimiseuniversalistpressures.2

Whatfrequentlyoccursisthatforeignbasedsubsidiarieswillpretendtocomplywithheadofficedirectives,whichleadstoakindofritualistic"corporateraindance".
Theywillgothroughthemotionssolongastheyareunderscrutiny,buttheydonotbelievethatrainwillresult.Assoonastheattentionofheadofficeisdivertedto
othermatters,normallifeproceeds.

JobEvaluationsandRewards

Headofficepoliciesinthehumanresourceareaoftenlaydownsystemsthatallexpatriatemanagersarerequiredtoapplylocally.Thelogicofthisuniversalsystem
thatalljobsshouldbedescribed,allcandidatesshould

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havetheirqualificationscomparedwiththesedescriptionsandalljoboccupantsshouldhavetheirperformanceevaluatedagainstwhattheircontractsspecifiedthey
woulddoissurely''beyondculture".Itseemsademonstrablyfairanduniversalwayofmanaging.Thisgeneralsystemsprangupinthepostwaryearswhen
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companies,especiallyAmericanmultinationals,sawveryrapidgrowth.ThousandsofemployeeswithintheUSAneededfairmethodsofappraisalandpromotionand
beforelongthisspreadtotherestofthedevelopedworld.Labourunionsoftengavetheirsupporttothesemethods,seeingthemasprotectionfromarbitrarydiscipline
orantiunionactivity.Aworkercouldonlybefiredfordemonstrablefailuretodoadefinedpieceofwork.Insuchregulationstherewas,indeed,protectionformany
employees.Managershadtobehaveconsistently.Theycouldnottakeharshstepsinoneinstanceandbelenientinanother.

AsystemdesignedbyColonelHayoftheAmericanarmy,calledtheHAYjobevaluationsystem,isnowwidelyusedinbusinessestoevaluatewhatbasesalariesshould
befortheperformanceofvariousfunctions.Eachfunctionandjobwithinitisscoredwiththehelpoftheemployee,hisorherdirectsuperiorandapanelwhich
includespeopledoingsimilarjobselsewhere.Thishelpstomaintaininternalconsistencyandfacilitatestransfersbetweendifferentsubsidiariesthroughoutacompany's
networkwithoutchangesinsalaryortraining.Minorconcessionsareusuallymadetolocalconditionsbywayofacostoflivingallowance,butotherwiseuniformityis
maintained.Allthissoundshighlyplausible.Allsuchproceduresmayappeartobeworkingwiththepaperworkdulycompleted.Butwhatinfacthappensinmore
particularistsocieties?

Thefollowingincidentoccurredinamultinationaloilcompany.DuringapresentationtoagroupofVenezuelanmanagers,representativesfromheadofficewere
explainingnewdevelopmentsintheHAYfunctionassessmentsystemforR&Dfunctions.Theyexplainedthatthefunctionwouldbelessclearlyseparatedfromthe
functionholder,andthattherewouldnowbe"benchmarks"determiningthelevelofthefunction.TheVenezuelansshowedtheproformaresponsebyconcludingthe
presentationwithaloudroundofapplause.

Afteragoodlunchandathirdglassofwine,afewoftheVenezuelanmanagersbecamequitetalkative.Theyaskedwhetherthevisitinggroupwouldbeinterestedin
hearingabouttheVenezuelanwayofassessingfunctionsinthelaboratory."Wouldyouliketohearwhatwesaywedoorwhatwereallydo?"theyasked.Already
awareofwhattheir"partyline"was,theheadofficerepresentativesaskedforwhatreallywenton.

Realityturnedouttobemuchsimplerthanthecomplexsystem.Each

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year,theyexplained,thesixpersonmanagementteamgottogetheraftertheassessmentround.Inthemeetingthisgroupdecidedonthemostappropriatecandidates
forpromotion.TheemployeesselectedwerethenrushedtotheHRdepartmentinordertosetupthefunctiondescriptionrequiredbyheadoffice.HRhadalreadybeen
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informedofwhatthescorewastobefortheparticularfunctions.

Thisisaninterestingexampleofreversecausality.Insteadofthejobdescriptionandevaluation"choosing"thepersonthatbestfilledit,thepersonwasfirstinformally
andintuitivelychosenandthenwrotetheirowndescriptionandevaluation.

Thisbegsthequestionofwhetheraprocessinwhichuniversalsguideparticularsisnecessarilybetterthanaprocessinwhichparticularpeopleguideandchoosetheir
universals.AsthelocalVenezuelanbossputit:"Whodecidesonthepromotionofmysubordinates,ColonelHayorme?"Thesamekindofquestionandcircularity
willarisewhenweconsiderperformanceandachievementinChapter8.

ReconcilingUniversalismandParticularism

Inallthesevenculturaldichotomieswehaveidentified,ofwhichuniversalismversusparticularismisthefirst,thetwoextremescanalwaysinasensebefoundinthe
sameperson.Thetwohornsofthedilemmaareveryclosetoeachother,asitiseasytorealiseif,asauniversalist,yousubstituteyourfatherordaughterforthefriend
whoisdrivingthecar.Infruitfulcrossculturalencountersbothsidesavoidpathologicalexcesses.Figure4.4,whosemethodologyisexplainedinChapter13,
illustratesthis.

Thisfigureshowsthebeginningsofaviciouscircle.Ifyoufollowthelogicoftheflow,youseethattheuniversalistapproachatbesthelpsustoavoidthepathologies
ofparticularismtakentoofarandtheparticularistpositionneedstobetakentoavoidthepathologiesofuniversalismtakentoofar.Infact,theuniversalistpositionis
encouragingoppositionfromtheparticularistposition.

Whenthetwoareworkingeffectivelytogetherwetalkaboutavirtuouscircle.Herecrossculturalencounterscansynergiseandcomeoutonalevelmuchhigherthan
anyoftheculturescouldachieveontheirown.

Inonecasetheresolutionbroughtacompanytoahigherlevel.AgroupofEuropeanmicroprocessorsalespeoplewerecomplainingthattheylostalargepartoftheir
potentialmarketbecauseAmericanheadquarterscouldnotproducetheadaptationswhichdifferentEuropeanclientswererequesting.WheninterviewingtheHQin
California,theAmericanssaidthattheycouldn'tunderstandwhytheirEuropeancol

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Figure4.4
Reconcilinguniversalismandparticularism

leaguescouldnotgraspthelossofeconomiesofscaleandthegrossundercapacitywhichtheirchipsfacilitiesexperienced.Itisobviouslynotenoughsimplytomap
theproblematicnatureofadilemmaastwohorns,oneopposingtheother,asinFigure4.5.

Whenapproachingthisdilemmabetweenthetwoextremes,wemayseekacompromise.However,acompromiseisfrequentlyworsethanjustchoosingbetweenone
ofthetwohorns.Itcouldmean,forexample,goingfortwochipsinsteadofoneuniversalchip.Bydoingthisyouwouldlosebotheconomiesofscaleandmostof
yourclients.Thebestapproachistoframethedilemmasastwoaxes,XandY,andthentrytofinda10/10solution.Thismeansthatthedrivefortheuniversalchip
needstobeconnectedinsomewaytotheprocessoffulfillingtheparticularneedinEurope.

InourworkshoptheAmericansproposedtoinvitetheR&Dpeoplefromsomeoftheirclientstocodevelopthenext(universal)chip.TheEuropeans,inturn,thoughtit
wouldbepreferrabletogetAmericanR&DpeopleovertoworkwithlocalR&DpeopleinEurope.Theprinciplewasthesame,butthestartingpointwasdifferent.The
Americanspreferredtostartfromauniversalpositionandhavesomeinputfromtheparticularneedsoftheclient.TheEuropeansfeltmoreathomewithfirsttesting
the

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Figure4.5
Aviciouscircle

valueoftheirparticularneedbysomeuniversalCalifornianrules.Butbothwereaimingforthecreationofaunique,particular,customisedmicroprocessorthatmight
leadtoarenewedspateof"universalsales".

TheCaseofthePharmaceuticalJointVenture

MrGeddyTeok,anAmericanChinese(secondgeneration)employeeofalargeNewJerseypharmaceuticalfirm,wasbasedinTokyo,Japan.Hismainaimwasto
getamajorjointventuregoingwithoneofthelargestJapanesepharmaceuticalmanufacturers.Afterfouryearsofnegotiatingthesuprememomenthadcomefor
signingcontracts.ObviouslythelawyersfromHQinNewJerseywerewellpreparedandsentthecontracttoGeddyoneweekbeforethe"ceremony".

AfterfouryearsofJapaneseexperience,GeddywasshockedwhenhereceivedthedocumentfromtheUSA.Hetoldus:"Icouldnotevencountthenumberof
pages.Therewerejusttoomany.ButIrememberthenumberofinchesitmeasuredwhenlayingitonthetable.IwouldguessthatwitheveryinchoneoftheJapanese
wouldleavetheroomindespair.Ihopetheywillcomewithagroupoften.ThenatleastIwillkeeponepersontotalkto.TheJapanesewillsigncontracts,butyou
shouldnottakeittoofar."

GeddyTeokdecidedtocallHQandaskforsomehelp.Thelegaldepartmentsaidthattherelationshipwassocomplexthatthecontractneededtocovermany
possibleinstances.Moreover,aconsultancyfirmthatadvisedthemregularlysaidthatAsiansingeneralandJapaneseinparticularhadareputation

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ofbeingquitelooseindefiningwhatwasdevelopedbythemandwhatcamefromtheUSA:"Webetterhavesomepainnowandbeclearinthetermsofour
relationship,thantorunintoproblemslaterbecauseofmiscommunication.Iftheysignitatleasttheyshowtheyareserious."
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Geddywasindespair,butheonlyhadadaytodecidewhattodo.Themeetingwastomorrow.ShouldheperhapscalltheJapaneseCEO,withwhomhehadbuiltup
quitearelationship?Orshouldhejustgoforit?Geddyframedhisdilemmaquiteclearlytous:"WhateverIwoulddo,itwouldhurtmycarreer.IfIinsistonthe
Japanesepartnerssigningthecontracttheywillseeitasproofofhowlittletrusthasbeendevelopedovertheyearsofnegotiation.Thismightmeanapostponementof
thediscussionsandintheworstcasetheendofthedeal.IfIreducethecontracttoacoupleofpagesandpresentitasa'letterofintent',HQingeneralandevenworse
thewholelegaldepartmentwilljumponme,jeopardizingmycareer."

IfyouwereGeddy,whatwouldyoudo?

Beingawareoftheculturaldynamicsdoesnotreallyhelpyou(don'tforgetthatifyouwerenotawareoftheculturaldifferencesbetweentheJapaneseandthe
Americansyoursituationwouldbeevenworse).ItisnotenoughtosaythattheAmericanstendtobeuniversalistsotheybelievetheJapaneseshouldsignthe
contract.NordoesitsufficetosaythattheJapanesetendtobeparticularistintheirapproach.Transculturaleffectivenessisnotonlymeasuredbythedegreetowhich
youareabletograsptheoppositevalue.Itismeasuredbyyourcompetenceinreconcilingthedilemmas,i.e.thedegreetowhichyouareabletomakebothvalues
worktogether,asinthemicroprocessorcase.

ItmightbeadvisableforGeddytoaskwhatthelogicofthetypicaluniversalistwouldbeinordertohavethecontractsigned.Infact,theAmericans'positionis:"Our
trustintheotherpartyisnotsufficientsoweneedthebackingofabindingcontract."FortheJapanese,whodofrequentlysigncontracts,thelogicwouldbe:"I'llonly
signthecontractifIhavetrustintheotherpartyandtheyseethisasasignofrespectforourrelationship.Wheretherelationshipisgoodenoughwecaneasilychange
thedetailsofthecontractlater,e.g.iftheparticularcircumstanceshavechanged."

WewouldadviseGeddytodothefollowing.First,makecultureapointofdiscussionandtelltheJapanesecounterpartwhatkindofproblemyouarefacing:"Our
Americanheadquartershavesentmea1100pagecontract.ObviouslythisisnormalpracticeintheUS,butitwasnotmeanttoinsultyou."Bydoingthisyouare
sharingthedilemma.TrytoestablishandrespecttheJapaneselogicbyasking:"Whatwouldyoudoinmycase?"

TheactualJapaneseresponsewasanotherquestion:"Howlongwould

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youstayhere,MrTeok?"Geddy'sanswerwashonestandbrilliantatthesametime:"Untilthejobisdone,MrSamamoto.""InthatcaseI'llsignthecontract,''replied
theJapanese.
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TestYourself

Inordertomeasurethedegreetowhichindividualsandculturestendtoreconcilewehavedevelopedaseriesofquestionsthatnotonlymeasurethedegreetowhich
youidentifywithoneoftheopposingvalues,butalsoyourtendencytoreconcile.Wearecurrentlytestingthehypothesisthatthecreationofwealthishighlycorrelated
withpeople'scapacitytoreconcile.Inthefirstdimensionthequestionswouldbethefollowing:
SixmonthsaftertheABCminingcompanyhadsignedalongtermcontractwithaforeignbuyertobuybauxitein10annualinstalments,theworldpriceofbauxitecollapsed.
Insteadofpaying$4atonnebelowworldmarketprice,thebuyernowfacedtheprospectofpaying$3above.

ThebuyerfaxedABCtosayitwishedtorenegotiatethecontract.Thefinalwordsofthefaxread:"Youcannotexpectusasyournewpartnertocarryalonethenowruinous
expenseofthesecontractterms."

ABCnegotiatorshadaheateddiscussionaboutthissituation.Severalviewswereoffered:

1Acontractisacontract.Itmeanspreciselywhatitstermssay.Iftheworldpricehadrisenwewouldnotbecrying,norshouldthey.Whatpartnershiparetheytalkingabout?We
hadadeal.Webargained.Wewon.Endofstory.

2Acontractsymbolisestheunderlyingrelationship.Itisanhoneststatementoforiginalintent.Wherecircumstancestransformthemutualspiritofthatcontract,thentermsmust
berenegotiatedtopreservetherelationship.

3Acontactsymbolisestheunderlyingrelationship.ItisanhoneststatementoforiginalintentButsuchrigidtermsaretoobrittletowithstandturbulentenvironments.Onlytacit
formsofmutualityhavetheflexibilitytosurvive.

4Acontractisacontract.Itmeanspreciselywhatthetermssay.Iftheworldpricehadrisenwewouldnotbecrying,norshouldthey.Wewould,however,considerasecond
contractwhosetermswouldhelpoffsettheirlosses.

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Allocate"1"totheapproachyoupreferand"2"toyoursecondchoice.Similarly,indicatewhatyoubelievewouldbefavouredbyyourclosestcolleaguesatwork.

Thistypeofquestionisaskedinordertoassessparticipants'preferenceforafulluniversalistanswer(1)afullparticularistanswer(2)aparticularistanswer
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reconciledwiththeuniversalorientation(3)andauniversalistanswerreconciledwiththeparticularrelationship(4).Ourcurrentresearchistryingtofindsupportfor
thehypothesisthatanswers3and4aremoreeffectiveinsuccessfultransculturalrelationships.

FinallyweshouldreturntoMrJohnsonofMCC.

Whatdoyouthinkwillhappenwhenhetriestointroducepayforperformanceworldwide,especiallyinparticularisticcultures?

Doyoubelievethatbonusesof30%,60%and100%oversalary,takenfromthesalariesofotheremployees,willbedeemedfair?

Willhighperformersbeencouragedordiscouragedintheirworkbythosewhosesalarieshavebeencutinordertopaythem?

Willlocalmanagementcooperatewholeheartedlyinthischangeorfindwaysofgettingaroundit?

Doeslocalmanagementhaveitinitspowertoorganisesalesterritoriessothatitcanchoosewhoperformswellforparticularareas?

PracticalTipsforDoingBusinessinUniversalistandParticularistCultures

RecognisingtheDifferences

Universalist Particularist
1Focusismoreonrulesthan 1Focusismoreonrelationshipsthan
relationships. onrules.
2Legalcontractsarereadilydrawnup. 2Legalcontractsarereadilymodified.
3Atrustworthypersonistheonewho 3Atrustworthypersonistheonewho
honourstheirwordorcontract. honourschangingmutualities.
4Thereisonlyonetruthorreality,that 4Thereareseveralperspectiveson
whichhasbeenagreedto. realityrelativetoeachparticipant.
5Adealisadeal. 5Relationshipsevolve.

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TipsforDoingBusinessWith:
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Universalists(forparticularists)
1Bepreparedfor"rational",
"professional"argumentsand
presentationsthatpushforyour
acquiescence.
2Donottakeimpersonal,"getdownto 2Donottakepersonal,"gettoknow
business"attitudesasrude.
3Carefullypreparethelegalground
withalawyerifindoubt.
Particularists(foruniversalists)
1Bepreparedforpersonal
''meandering"or"irrelevancies"that
donotseemtobegoinganywhere.
you"attitudesassmalltalk.
3Carefullyconsiderthepersonal
implicationsofyourlegal
"safeguards".

WhenManagingandBeingManaged

Universalists
1Striveforconsistencyanduniform
procedures.
2Instituteformalwaysofchangingthe 2Trytoalterinformallyaccustomed
waybusinessisconducted.
3Modifythesystemsothatthe
systemwillmodifyyou.
4Signalchangespublicly.
5Seekfairnessbytreatingalllike
casesinthesameway.
Particularists
1Buildinformalnetworksandcreate
privateunderstandings.
patternsofactivity.
3Modifyrelationswithyou,sothat
youwillmodifythesystem.
4Pullleversprivately.
5Seekfairnessbytreatingallcaseson
theirspecialmerits.

References

1Stouffer,S.A.andToby,J.,"RoleConflictandPersonality",AmericanJournalofSociology,LUI5,1951,pages395406.

2Zurcher,L.A.,Meadows,A.andZurcher,S.L.,"ValueOrientations,RoleConflictandAlienationfromWork:aCrossCulturalStudy",AmericanSociological
Review,No.30,1965,pages53948.

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5
TheGroupandtheIndividual
Theconflictbetweenwhateachofuswantsasanindividual,andtheinterestsofthegroupwebelongto,isthesecondofourfivedimensionscoveringhowpeople
relatetootherpeople.Dowerelatetoothersbydiscoveringwhateachoneofusindividuallywantsandthentryingtonegotiatethedifferences,ordoweplaceahead
ofthissomesharedconceptofthepublicandcollectivegood?

Individualismhasbeendescribed(ParsonsandShils1)as"aprimeorientationtotheself",andcommunitarianismas"aprimeorientationtocommongoalsand
objectives".Justasforourfirstdimension,culturesdotypicallyvaryinputtingoneortheotheroftheseapproachesfirstintheirthinkingprocesses,althoughbothmay
beincludedintheirreasoning.The30,000managerswhohaveansweredthefollowingquestionshowthis,althoughthedivisionhereisnotquitesosharpasforthe
universalversustheparticularexample.

Twopeoplewerediscussingwaysinwhichindividualscouldimprovethequalityoflife.

AOnesaid:"Itisobviousthatifindividualshaveasmuchfreedomaspossibleandthemaximumopportunitytodevelopthemselves,thequalityoftheirlifewillimproveasa
result."

BTheothersaid:"Ifindividualsarecontinuouslytakingcareoftheirfellowhumanbeingsthequalityoflifewillimproveforeveryone,evenifitobstructsindividualfreedomand
individualdevelopment."

Whichofthetwowaysofreasoningdoyouthinkisusuallybest,AorB?

AsFigure5.1shows,thehighestscoringindividualistsaretheRomanians,NigeriansandCanadians,closelyfollowedbytheAmericans,CzechsandDanish,allover
65%infavourofA.SomeofthelowestscoringEuro

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peansaretheFrenchat41%.Thismaycomeasasurprise.ButrememberthattheFrenchalltakevacationsinAugust,onthesamedate.TheyjointheClub
Mediterraneinordertobetogether.IntheNetherlandswespreadourholidaydates(otherwisewemightmeetoneofourrelations).FortheFrenchthecommunityis
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Franceandthefamily.Theybecomeindividualistsinothersocialencounters.ThattheJapanesearenotsignificantlymoregrouporientedintheiranswerstothis
questionthantheFrenchisparticularlyinterestingalsothattheChinesescore,thoughonlyslightly,asmoreindividualistthantheIndians.

Figure5.1
Thequalityoflife
Percentageofrespondentsoptingforindividualfreedom(answera)

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ConceptsofIndividualismandCommunitarianism
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Individualismisoftenregardedasthecharacteristicofamodernisingsociety,whilecommunitarianismremindsusofbothmoretraditionalsocietiesandthefailureofthe
Communistexperiment.Weshallsee,though,thatthesuccessofthe"FiveDragons",Japan,HongKong,Singapore,SouthKoreaandTaiwan,raisesserious
questionsaboutboththesuccessandtheinevitabilityofindividualism.

Asinthecaseofuniversalismandparticularism,itisprobablytruertosaythatthesedimensionsarecomplementary,notopposing,preferences.Theycaneachbe
effectivelyreconciledbyanintegrativeprocess,auniversalismthatlearnsitslimitationsfromparticularinstances,forexample,andbytheindividualvoluntarily
addressingtheneedsofthelargergroup.

Internationalmanagementisseriouslyaffectedbyindividualistorcommunitarianpreferenceswithinvariouscountries.Negotiations,decisionmakingandmotivationare
themostcriticalareas.Practicessuchaspromotionforrecognisedachievementsandpayforperformance,forexample,assumethatindividualsseektobe
distinguishedwithinthegroupandthattheircolleaguesapproveofthishappening.Theyalsorestontheassumptionthatthecontributionofanyonemembertoa
commontaskiseasilydistinguishableandthatnoproblemsarisefromsinglinghimorheroutforpraise.Noneofthismay,infact,betrueinmorecommunitarian
cultures.

MostofourreceivedwisdomonthissubjectderivesfromtheindividualisticWest,especiallyfromtheoristswritinginEnglish.Thecapitalletter"I"isoneofthemost
usedcapitalsintheEnglishlanguage.Sotheideathatrisingindividualismisapartoftheriseofcivilisationitselfneedstobetreatedasaculturalbeliefratherthanafact
beyonddispute.Clearly,however,ittookmanycenturiesfortheindividualtoemergefromthesurroundingcommunity.Itisgenerallybelievedthattheessenceofthe
relationshipbetweentheindividualandsociety,atleastintheWest,haschangedconsiderablysincetheRenaissance.Inearliersocietiesindividualsweredefined
primarilyintermsoftheirsurroundingcommunity:thefamily,theclan,thetribe,thecitystateorthefeudalgroup.

IndividualismwasverymuchtotheforeduringtheperiodsofintenseinnovationsuchastheRenaissance,theAgeofExploration,theNetherlands'GoldenAge,the
FrenchEnlightenment,andtheindustrialrevolutionsofBritainandtheUSA.Awholerangeofcausesandeffectshavebeenofferedtoexplainthis.

IndividualismandReligion

ThereisconsiderableevidencethatindividualismandcommunitarianismfollowstheProtestantCatholicreligiousdivide.Calvinistshadcontracts

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orcovenantswithGodandwithoneanotherforwhichtheywerepersonallyresponsible.EachPuritanworshipperapproachedGodasaseparatebeing,seeking
justificationthroughworks.RomanCatholicshavealwaysapproachedGodasacommunityofthefaithful.ResearchhasfoundthatCatholicsscorehigherongroup
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choicesandProtestantssignificantlylower.GeertHofstede'sresearch2confirmsthisasdoourownfindingsthatLatinCatholiccultures,alongwithAsianculturesof
thePacificRim,scoreloweronindividualismthantheProtestantWest,forinstance,theUK,Scandinavia(asarule),theNetherlands,Germany,theUSAand
Canada.

IndividualismandPolitics

Individualismhasbeenadoptedoropposedbydifferentpoliticalfactionsinthehistoryofcountries,andthestrengthofthatethictodaydependsgreatlyonthefortune
ofitsadvocates.IttriumphedintheUSA,butisstillstronglyopposedbytheFrenchCatholictradition.EighteenthcenturyFrance,though,wasexposedtothe
pleasuresofindividualismbyVoltaireandRousseau.Later,inthenineteenthcentury,theFrenchsocialistspointedtothepositiveeffectsofindividualism,while
outlininganewindependencefromtraditionalstructuresandrejectingtheauthorityofreligious,economicandintellectualhierarchies.Frenchbusinessmayhavebeen
affectedforeverbythefactthattheprobusinessFrenchliberalpartywasinpowerwhenFrancefellsuddenlytotheNazisin1940.ThefortunesofBritish
individualism,atleastincommerce,havebeenaffectedbyMrsThatcherandherrevolution.

Doesmodernisationimplyindividualism?

Thatindividualism,orselforientation,isacrucialelementofmodernsocietyhasbeenarguedbyFerdinandTnnies.3Hesuggestedthatinmodernisingweemerge
fromGemeinschaft,afamilybasedintimatesocialcontextinwhichthepersonisnotsharplydifferentiated,intoGesellschaft,aworkplaceofindividualtasksand
separatedresponsibilities.AdamSmith,too,sawthedivisionoflabourasindividualising.4MaxWebersawmanymeaningsinindividualism:dignity,autonomy
(meaning"selfrule"),privacyandtheopportunityforthepersontodevelop.5

Wetakeitforgrantedinmanywesterncountriesthatindividualgeniusescreatebusinesses,inventnewproducts,deservehighsalariesandshapeourfutures.Butdo
they?Howmuchcreditisduetothemandhowmuchduetothepatternsoforganisedemployees?WhyareNobelPrizesforscienceawardedtosingleindividuals
becomingtheexception?Ifacreativegeniuscombinesideas,wheredidsuchideascomefromifnot

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