Managing Cultural Differences

Managing Cultural Differences

Definition of Culture in Organizational Context

Types of Culture The Impact of Personality and Language on

Culture Transmitting Information, Listening, and

Displaying Patience Workable Strategies for Dealing with Culture Tips on Managing Culture

CONTENT

WHAT IS THE DEFINITION OF CULTURE?

THE ANSWER IS

TOO BROAD!!

WHAT IS THE DEFINITION OF CULTURE? According to the two anthropologists,

Kroeber and Kluckorn, there are 300 different definitions and sometimes conflicting definitions

SO… IT DEPENDS ON THE CONTEXT

WHAT IS CULTURE IN AN ORGANIZATIONAL CONTEXT?

Culture is “shared knowledge embodied in the values, beliefs, and norms used by members of the organization to carry out their day-to-day tasks”.

WHY IS CULTURE IMPORTANT? It can explain the behavior of people. Example: Krispy Kreme (In Thailand)

WHY IS CULTURE IMPORTANT? For alliance, people’s behavior is extremely

important. Because people’s behavior can somewhat

indicate the culture of that organization. When we ally with the new organization, we have

to observe… 1) What do the offices look like? 2) How are people dressed? 3) What are the jokes and taboos?

HOW CAN MANAGERS DEAL WITH CULTURAL DIFFERENCES WHILE MAINTAINING THEIR

FOCUS ON ACCOMPLISHING THE GOALS OF THE ALLIANCE?

There are two extreme approaches Ignoring culture and hope for the best Characterizing the partner firms’ culture and

evaluate those characteristics for compatibility then manage it

HOWEVER, MOST FIRMS USE AD HOC APPROACH

TYPES OF CULTURE Three Types of Culture

National Culture Culture of a Nation

Corporate Culture Culture of an Organization

Subunit Culture Culture of a department within the organization

TYPES OF CULTURE (EXAMPLE)Alliance # 1 Alliance # 2

Type of Culture Collaborative R&D between U.S. firms

Product development, manufacturing, and marketing between a U.S. and Japanese firm

National Same Different

Corporate Different Different

Subunit Same Different

THE IMPACT OF PERSONALITY AND LANGUAGE ON CULTURE

PERSONALITY AND STEREOTYPE TRAPSACCORDING TO INDUSTRIAL RESEARCH

INSTITUTE (IRI) The behaviors of each national are different.

U.S.A. managers are directly to the points. Japanese are consensus driven. Germans are well organized.

THE PERSONALITY AND STEREOTYPE Can mislead when dealing with individuals

LANGUAGE TRAPS

LANGUAGE TRAPS The first trap is that the use of a foreign

language shapes a person’s behavior. The second trap is subtle meanings.

TRANSMITTING INFORMATION, LISTENING, AND DISPLAYING

PATIENCE Common communication errors

Poor speaking, writing, and listening skills Other communication errors

Language gaps Cultural differences

COMMUNICATION IN THE NEGOTIATION

People who know each other well, they communicate and convey message through their…Tone of voiceBody languageFacial expression

But, people who never know each other before, they may have trouble in communication, and the solution of this problem is the patience and the familiarity

FACE TO FACE VS. E-MAIL Using e-mail and other technology

Technology makes communication easier by sending an e-mail or having a meeting videoconference

Face to FaceGenerally, meeting for the first few times,

face to face meeting helps establish trust

WORKABLE STRATEGIES FOR DEALING

WITH CULTURE Knowledge

To identify the dominant behaviors people are likely to observe in their counterparts

Well-planned training program

WORKABLE STRATEGIES FOR DEALING

WITH CULTURE Pen-and-paper cultural inventory

By: Members of both Implementation Teams

Parameters: “attitude toward competitors” or “willingness to accept ideas from outside the

firm” Purpose:

To predict what alliance activities might cause inter partners conflict

To identify the role of cultural differences in the dispute

WORKABLE STRATEGIES FOR DEALING

WITH CULTURE Trust and Respect

Both firms must be conscious of the positive effects of bridging cultural gaps using activities design to encourage people to develop a closer personal understanding of each other

Technical visits Joint presentations Cooperative research, manufacturing and

distribution“Cultural differences cannot stand up under a

relentless assault of trust and respect”

WORKABLE STRATEGIES FOR DEALING

WITH CULTURE Team Building in Alliances

Elaborate ways to break down barriers that are fun, inexpensive, and achieve the critical results of allowing people to build interpersonal relationships

Example: Bowling“Communication in alliances is a

dialogue of actions”

WORKABLE STRATEGIES FOR DEALING

WITH CULTUREThe Culturally Correct Dinner Secret Weapon People

TIPS ON MANAGING CULTURE Understand the dominant behaviors in each

firm’s culture Develop trust an respect between

counterparts Have fun together

CONCLUSION

THANK YOU FOR YOUR

COLLABORATION