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Cross Cultural Management: An International JournalModels of national culture a management review

Tony Morden

Ar tic le information:To cite this document:Tony Morden, (1999),"Models of national culture a management review", Cross Cultural Management: An InternationalJournal, Vol. 6 Iss 1 pp. 19 - 44Permanent link to this document:http://dx.doi.org/10.1108/13527609910796915

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National culture is defined by Fukuyama [3] as inherited ethical habit.An ethical habit can consist of an idea or value, or of a relationship. Ideas,values, and relationship patterns constitute the ethical codesby which socie-ties regulate behaviour. They are nurtured by repetition, tradition, and ex-ample. They are reinforced through images, habits, and social opinions.

The Relevance of National Culture to the Study and Practice ofManagement

Morden [4] notes that a crucial implication of the work of Hofstede,Hampden-Turner & Trompenaars and other contributors to the...developingbody of experience and knowledge about international culture and manage-ment is that (national) cultural interpretation and adaptation are a prereq-uisite to the comparative understanding of national and internationalmanagement practice. Such knowledge is, for instance, a pre requisite to theeffective entry into new markets and new countries, ... (or) to the establish-ment of effective programmes of international human resource develop-

ment, and the development of appropriate skills and competences on whichthe achievement of corporate success depends.

Hofstede [2, 5] comments that the author of any particular theory orprescription is as much culturally conditioned as anyone else. Theories orprescriptions reflect the cultural en vironment from which they originate.Hofstede [2] states that not only organisations are culture bound; theoriesabout organisations are equally culture bound. The professors who wrotethe theories are children of a culture; they grew up in families, went toschools, worked for employers. Their experiences represent the material onwhich their thinking and writing have been based. Scholars are as humanand as culturally biased as other mor tals (p.146).

Hofstede suggests, in consequence, that there can be no guarantee thatmanagement theories and concepts developed within the cultural context ofone country can, with good effect, be applied in another. This implies that itis not possible for such theories and concepts to be universally valid or ap -plicable.

The Cross-Cultural Purpose of National Culture Models

Morden [4, 6] describes the widely documented view that it is unrealistic totake an ethnocentric and universalistic view towards the principles andpractice of management as they are applied in other countries and othercultures. What works well in one country may be entirely inappropriate inanother. In the face of cultural diversityand the need to view internationalmanagement from multiple perspectives (Hampden-Turner and Trompenaars[7, p.17]), there is a need to understand, and to apply locally appropriatemodels of national cultureto the process and practice of management. Thislogic has two implications. These are:

Best fit

Morden [4, 6] suggests that international managers and multinational com-panies may need to take a best fitor contingencyapproach to is sues of or-ganisation and management; and to developmental activities associated

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Cross Cultural Management


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with them. The style of management must be appropriate to the prevailinglocal contingencies.Any one eth nocentric style may be inappropriate else-where. Hence the need for:-

Polycentricity

Perlmutter [8] definespolycentricityin terms of the acceptance and use ofcultural diversity. Organisation and management are to an appropriate de -gree locally adaptedaccording to the require ments of the prevailing nationalculture. Other cultures are in turn free to take the best from any one lo calityand to adapt it to their own circumstances (as in the case of Theory Z as astyle of management). Cultural diversity is accepted and encouraged. It isnot resisted as would be the case under ethnocentricity; nor is it homoge -nised into multinational geocentricity.

Single Dimension Models

The national culture models described under this heading are based upon asingle dimension or variable. Three models are described and illustrated be-low.

High and Low Context Cultures

Hall [9, 10, 11] differentiates high contextand low contextcultures. Contextis defined in this case in terms of how individuals and their society seek infor-mation and knowledge.

People from high context cultures obtain information frompersonal in-formation networks. Before such people make a decision, or arrange a deal,they have become well informed about the facts associated with it. Theyhave discussed the matter with friends, business acquaintances, and rela-tives. They will have asked questions and listened to gossip.

People from low context cultures seek information about decisions anddeals from a research base. Whilst they will listen to the views of colleaguesor relatives, they place much emphasis on the use of read ing, reports, data-bases and information sources. Information highways, the Internet, E-Mailand other forms of the communication and information revolution may belooked upon as an added bonus as sources of useful knowledge.

High and low context cultures are illustrated in Figures 1 and 2.

A suggested high context - low context demographic rankingis shown in Fig-ure 3.

Monochronic and Polychronic Cultures

Lewis [12] differentiates monochronicandpolychroniccultures.

Monochronic cultures act in a focused manner, concentrating on onething at a time within a set time scale. Lewis, for example, categorises theGermans, the Finns, and some North Americans as being monochronic. To

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Figure 1: High Context Culture

Figure 2: Low Context Culture


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such people time is a scarce resource which has its opportunity cost. Theremay be a perception that time is money.

Polychronic cultures are flexible and unconstrained by concerns withtime. Polychronic people do many things at once, often in an unplanned oropportunistic sequence. They may not be interested in time schedules orconcepts of punctuality. They consider that the reality of events and op-portunities is more important than adherence to what they perceive to beartificial constructs of planning, schedules, and appointments. Time is nei-ther seen as a resource nor as an op portunity cost that equates to money.Matters can always be settled tomorrow. Lewis suggests that, for example,

Indians, Polynesians, Latin Americans, and Arabs are polychronic.

Monochronic and polychronic characteristics are compared in Table 1.

Morden [6] suggests that the mixingof monochronic and polychronic cul-tures may give rise to constant culture clashand disagreement. It may call forthe establishment of agreed modes of co-operation and co-ordination.

On the other hand, the mixing of these two cultures may yieldsynergiesas features of each complement the other. For instance, the greater flexibil-ity of the polychronic may facilitate ongoing developmental processes that

are subject to unpredictable external change, making it easier for the mono-chronic to modify plans and schedules in order to adapt.

A sug gested monochronic - polychronic demographic scaleis shown inFigure 4.

Fukuyama s Analysis of Trust

Fukuyama [3] analyses the relationship between trust, social capital, and thedevelopment of organisation and management. He identifies and compareslow trustand high trustsocieties. Fukuyama comments that a high trust so-ciety can organise its workplace on a more flexible and group-oriented ba-sis, with more responsibility delegated to lower levels of the organisation.

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Figure 3: A Suggested High Context - Low Context Demographic Ranking

High Context

$ Japanese $ Chinese $ Italians, Spanish, Portuguese, French, Mediterranean peoples $ Latin Americans $ Arabs, Africans

$ Indians, and other Indian sub-continent $ Koreans, South East Asians $ Central Europeans $ Slavs $ Other American cultures $ Benelux countries $ British, Australians $ Scandinavians, Finns $ North Americans (US WASPs and Canadians) $ New Zealanders, (white) South Africans $ Germans, Swiss, Austrians

Low Context


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Low-trust societies, by contrast, must fence in and isolate their workers witha series of bureaucratic rules. Workers usually find their workplaces moresatisfying if they are treated like adults who can be trusted to contribute totheir community rather than like small cogs in a large in dustrial machine

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Table 1: Monochronic and Polychronic Characteristics

Monochronic Polychronic

introvertpatientquietminds own businesslikes privacyplans ahead methodicallydoes one thing at a timefollows systemsworks fixed hourspunctualdominated by timetables and schedulescompartmentalises projects

sticks to planssticks to factsgets information from statistics,

reference books, database

job orientated

works within departmentfollows correct proceduresaccepts favours reluctantly if at all

plays role within teamdelegates to competent colleaguescompletes action sequencesuses fixed agendasfocused communication, to the pointwrites memoranda, uses written recordrespects officialdom

extrovertimpatient

talkativeinquisitive/interferinggregariousplans grand outline/"vision"does several things at oncemixes systemsworks any hoursunpunctual

timetable unpredictablelets one project influence another

changes plansjuggles factsgets first-hand, oral information

people orientated

goes round all departmentspulls stringsseeks favours

plays as many roles as possibledelegates to relationscompletes human transactionsinter-relates agendas

talks for hoursdislikes writing too much, prefers flexibility to commitmentseeks out (top) key person

Figure 4: A Suggested Monochronic - Polychronic Demographic ScaleMonochronic * Germans, Swiss, Austrians * Americans (White Anglo-Saxon Protestant or WASP) * Scandinavians, Finns * British, Canadians, New Zealanders * Australians, (white) South Africans * Japanese * Dutch, Flemish Belgian * Other American cultures * French, Walloon Belgian * Koreans, Taiwanese, Singaporeans * Czechs, Slovakians, Slovenians, Croats, Hungarians

* Chinese * Northern Italians * Chile * Other Slavs * Portuguese * Spanish, Southern Italians, Mediterranean peoples * Indians, and other Indian sub-continent * Polynesians * Latin Americans, Arabs, AfricansPolychronic


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designed by someone else. The Toyota...manufacturing system, which is asystematisation of a communally organised workplace, has led to enormousproductivity improvements as well, indicating that community and effi-ciency can go together. The lesson is that modern capitalism, shaped bytechnology, does notdictate a sin gle form of industrial organisation thateveryone must follow. Managers have considerable latitude in organising

their businesses to take account of the sociable side of...human personality.There is no necessary trade-off...between community and efficiency; thosewho pay attention to community may...become the most efficient of all(p.31).

Low trust societies

Fukuyama suggests that infamilisticsocieties, the primary avenue tosocia-bilityand communityis family or broader forms of kinship, such as tribes orclans. Societies that have strong families but weak bonds of trust amongpeople unrelated to one another will tend to be dominated by family-owned

and family managed businesses.

Fukuyama suggests that Latin Catholic countries such as France, Spain,and Italy ex hibit a saddle-shaped distribution of organisations, with:

- strong families and family business sector; - a strong state and state sector; or large foreign-owned companies; - relatively little between by way of intermediate social groups or

organisations.

In particular, Fukuyama suggests that the relatively slow tran sition of

French family businesses into modern corporate structures with effectiveprofessional management; and the influence of the state in developing largescale enterprise, (and in rescuing failing private companies such as Ren-ault), are due to:

* a low level of interpersonal trust amongst the French;

* a traditional difficulty in associating with others spontaneously in groups;

* a habitual preference for basing interpersonal relationships on for mal-ised, centralised, and hierarchical rules within bureaucracies.

This is associated with a cultural distaste for informal, face-to-face rela-tionships of the type required in new, more informal Theory Yor Theory Ztypes of association (for instance of an Anglo-Saxon type); and a strongpreference for authority that is centralised, hierarchical, and formally/le-gally defined. Fukuyama contends that French people of equal status mayfind it difficult to solve problems between themselves without reference to ahigher and centralised form of authority.

More generally, Fukuyama suggests a correlation between hierarchy andthe absence of trustthat characterises low-trust societies. Hierarchies arenecessary be cause not all people within a community can be relied upon tolive by tacit ethical rules alone. They must ultimately be coerced by explicitrules and sanctions in the event that they do not live up (p.25) to theseethical codes.

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High trust societies

Fukuyama suggests that countries that have strongly developed associa-tional life as manifest by vigorous private, non-profit, and communal or-ganisations; professional associations; chari table institutions; (etc.) arelikely to develop strong private economic and business institutions that go

beyond the family.

Such countries (Fu kuyama quotes the USA and Japan) appear to pos-sess the ability spontaneously to generate strong social groups/organisa-tions in the middle part of the spectrum- that is, in the region between thefamily on the one hand, and the state on the other. He suggests that thisability is miss ing in such countries as China and Russia, and in the LatinCatholic countries which he categorises as low trust in character.

In contrast with low-trust societies, high trust ones have strong organi-

sations in the middle, rather than the saddle shaped distribution of organi-sations at the poles of family and state. In other words, there appears to bea relationship between high trust societies with plentiful social capital, andthe ability to create large, private business organisations. Such societies canbe contrasted with familistic ones in that they are characterised by a highdegree of generalised social trust, and a strong propensity for thespontane-ous sociabilityupon which middle range enterprise formation depends.

Fukuyama suggests that the most effective organisations are based oncommunities of shared ethical values. These communities do not require ex-tensive contractual or legal regulation of their relations and social architec-

ture because prior moral consensus gives members of the group a basis formutual trust. Fukuyama comments that social capital has major conse-quences for the nature of the industrial economy that society will be able tocreate. If people who have to work together in an enterprise trust one an-other because they are all operating according to a common set of ethicalnorms, doing business costs less. Such a society will be better able to inno-vate organisationally, since the high degree of trust will permit a wide vari -ety of social relationships to emerge. Hence, the...sociable Americanspioneered the development of the modern corporation in the late nine-teenth and early twentieth centuries, (whilst) the Japanese have exploredthe possibilities of network organisations in the (later) twentieth. By con-trast, people who do not trust one another will end up co-operating only un-der a system of formal rules and regulations, which have to be ne gotiated,agreed to, litigated, and enforced (if necessary by coercive means). This le -gal apparatus, serving as a substitute for trust, entails what economists calltransaction costs. Widespread distrust in a so ciety, in other words, im-poses a kind of tax on all forms of economic activity, a tax that high-trustsocieties do not have to pay (pp.27-28).

Within this context, Fukuyama makes particular reference to the syn-drome offree riding. Fukuyama contends that societies manifesting a highdegree of communal solidarity and shared values may enjoy a more ef fec-tive management process than their low-trust counterparts in that they maylose less value from free riders. Free riders benefit from value generationby an organisation or society, but do not contribute proportionately (or at

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pend on the resolution ofseven value dilemmas. They contend that these di-lemmas, and the vary ing solutions associated with them, permit themanager to understand key cultural differences between the approach takenby different nationalities to the pro cess and practice of management. Theseseven value dilemmas are:

[1] Making rules and managing exceptions (universalism versusparticularism). The enterprise must to some degree formalise, stan-dardise, and codify its operations in order to ensure consistency and

continuity. There exists a minimum (or requisite) level of bureaucracywithout which enterprise activities cannot be reliable or systematic. Atthe same time, however, the value system needs to be able to recognise,and deal with exceptions, changes, and the need for innovation.

[2] Deconstructing and constructing (analysing versus integrating).The management process may require either or both (i) the analysis ofconcepts or phenomena into their constituent parts; and (ii) their inte-gration into whole patterns, relationships, and wider contexts. Analy-sis and integration are the opposite ends of an intellectual process,illustrated by the tendency of Anglo-Saxons to analyse (deconstruct);

and Eastern (and Germanic) societies to seek cohesive patterns (con-struct or integrate).

[3] Managing communities or individuals (individualism versuscommunitarianism). Work organisations must support and motivate

the individual employee, looking to their personal motivation and ca-reer aspirations. At the same time, the contribution of the individualmust be seen within the wider context of the communitythat is the en-terprise. How should the enterprise define the character of the relation-ship between the individual and the organisation; and how should itmanage that relationship? Ultimately, whose interests are definedwithin the value system to come first? The relationship between the in-dividual and the organisation provides a key dilemma, particularly insocieties identified by Hofstede as strongly individualistic.

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Figure 5: Cultures Consequences Summarised

Index Scores Typical Countries Symbolic Organisation and Characteristics

Power Distancelarge;UncertaintyAvoidance strong

Power Distancesmall; UncertaintyAvoidance strong

Power Distancelarge; UncertaintyAvoidance weak

Power Distancesmall; UncertaintyAvoidance weak

Latin-European;Latin-American;Japan; South Korea;Arab countries

Germany; Austria;Switzerland;Israel

African and Asian countries(exceptJapan and South Korea)

Nordic andAnglo Saxon;Jamaica

Pyramid of people; hierarchical unity of com-mand; strong leadership; rules

Well oiled machine; rules settle everything;strong personal discipline

Family; undisputed personal authority of patri-arch/matriarch/leader; few formal rules; fatal-ism?

Village market; no decisive hierarchy; flexiblerules; problems solved by negotiation

Source: Hofstede [1, 2]


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[4] Internalising the outside world (boundary management orinner-directed versus outer-directed). The value system will de termine

where directionandpurposeoriginate.

Direction and purpose may on the one hand come from driving (or

entrepreneurial) forces withinthe organisation. Relation ships with theoutside world will be perceived as having to be managed, whetherpositively or defensively. There will be widespread perceptions of a fi-nite boundary between the internal and the external environments,and the strategic use of concepts of fit.

Alternatively, the enterprise may operate in what it perceives to be a

sym bioticre lationship with its environment, absorbing and adaptingfrom it as it moves through time.

[5] Synchronising time processes (time as sequence versus time as synchronisation). The value system of the enterprise will determineits attitude to time, and how it should use it. This dilemma poses twoquestions. These are:

* the length of time horizon. Enterprise management must decide whatthe length of its time horizons will be, dependent on its definition ofmission and purpose, and dependent upon the demands of its stake-holders for results and returns. Typically, German, Japanese, andSouth Korean corporations are able to take a longer term view of theirbusinesses than their Anglo-Saxon competitors.

* speed or synchronisation. Enterprise management may have to choosebetween doing things quickly, in the shortest possible sequence oftime; or achieving the synchronisation of events over time such that theachievement of those events is co-ordinated, and co-ordinates withother events which are related within a wider context. Hampden-Turner & Trompenaars cite the example of the Toyota system of kan-ban(already referred to above) as an approach to manufacturing thatdepends on the synchronisation of events rather than their speed. Once

synchronyhas been achieved, speed may in any case follow, as in thecase ofJust In Time (JIT), or accelerated systems of new product speci-

fication and design, reduced cycle time, (etc).

[6] Achieved status versus ascribed status. The value set of the en-terprise needs to determine the basis for allocating status and reward.The allocation of status may depend upon the achievement of certaintypes of criteria directly associated with enterprise performance withinits market or operating context. Or, it may instead depend upon someother characteristic im portant to enterprise management. Such criteriamight include age, seniority, length of service, education, family asso-ciations, or past service to the state.

[7] Equality versus hierarchy. Different corporate value sets will givedifferent emphasis to the establishment of hierarchical order andauthority, or the achievement of equality.

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The contribution of the individual, on the one hand, may be valuedhighly. Mechanisms of empowerment, consultation, and participationwill be put in place. Decision making may be based on consensus, as in

the case of the Japanese nemawashior the Koreansajeonhyupui. Thecon cept of management may itself be seen in terms of professionalequality and contribution, not hi erarchy.

Alternate cultures will emphasise the precedence of the authorityand judgement of the hierarchy of ownership and management. Indi-vidual members of staff must accept their place in the organisationspecking order, and accept the judgement of those above them in thehierarchy. Management may be conceptualised in terms of centralisa-tion and control.

Hampden-Turner & Trompenaars model is summarised by Morden[13].

Lessem & Neubauer s Analysis

Lessem & Neubauer [14] analyse European management systems. Theycategorise the impact of national culture under four inter-related criteria.These are:

* the tension betweenpragmatismand idealism/wholismthat character-ises European approaches to the theory and practice of management.The Anglo-Saxons and the Dutch tend to take a more pragmatic line to-wards management issues than their more idealistic or wholistic Ger-

man counterparts.

* the tension between a rationalistapproach to dealing with manage-

ment issues, as for instance taken by the French; and the humanistorpeople-oriented approach that is characteristic of the family companiesof Italy and Spain.

Lessem & Neubauers matrix is reproduced in Figure 6. Lessem & Neubau-ers four criteria are analysed below.

Pragmatism

Pragmatism is a dominant influence in the conceptualising of managementprinciples and practice, especially in the English speaking Anglo-Saxonworld. Pragmatism is:

* empirically and ex perientially orientated.

* competitively focused.

* individualistic, and personality orientated.

* action orientated.

Pragmatism focuses on the enterprise and on its ca pacity on an experientialbasis to develop into a learning organisation. Within this context, the indi-

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vidual manager strives forself-developmentthrough the process of actionlearning.

Hampden-Turner & Trompenaars [7] categorise a pragmatic approachto management as being categorised by:

* individualism rather than communitarianism, with a tendency to-wards egalitarianism.

* the ability to combine universalism and particularism (that is to be ableto handle rules and exceptions at the same time).

* scepticism about the value of structure and hierarchy.

* a focus on achieved status.

* a tendency to see time in practical terms as a sequence. Perceived pat-terns in time, or concepts of synchrony, may be rejected as being sub-jective or academic constructs.

* a tendency to outer-directedness.

Rationalism

Rationalism is defined by the OED as a theory which regards reason, ratherthan sense (or experience) as the foundation of certainty in knowledge.Rationalism is typically French, but is also characteristic of much of North-ern Europe. Rationalist management is characterised by:

* a scientific and positivist outlook, and a logical mode of concept formu-lation.

* a focus on the organisation through concepts of structure, role, hierar-chy and requisite bureaucracy.

* professional but depersonalised man agement.

* a belief in the value of planning and dirigisme.

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Figure 6: Lessem & Neubauer s Matrix

RATIONALISM

THE EUROPEAN BUSINESSSPHERE

IDEALISM/WHOLISMPRAGMATISM

HUMANISM


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Hampden-Turner & Trompenaars categorise a rationalist approach to man -agement as being characterised by:

* a belief in the structural and managerial value of formal organisationand hierarchy.

* a tendency towards universalism and the logical application of rules.

* a tendency towards inner-directedness.

* a tendency towards communitarianism. Individuals are seen as the in-habitors of roles.

* a focus on ascribed status and the acceptance of inequality.

Lessem & Neubauer suggest that, inter alia, rationalism is associatedwith the work of Henri Fayol and Elliot Jaques.

Wholism/idealism

Wholism is defined by the OED as something made up of parts in com bina-tion; a complex unity or system. Websters Dictionary defines wholism asa conception of something in its highest perfection; a theory that affirmsthat mind, or the spiritual or ideal is of central importance in reality, assert-ing that the ideal element in reality is predominant.

Wholism/idealism is in particular associated with German speakingcountries; (for instance see Box 1). Wholistic management is char acterisedby:

* a systems orientated co-ordination and integration.

* co-operation and co-determination.

* developmental processes.

* partnership between public and private interest.

* a sensitivity towards the interdependence between the organisationand its environment.

Lessem & Neubauer suggest that wholism stands directly opposed to

the brand of economic freedom embodied in Adam Smiths laissez-faireor inDarwins survival of the individually fittest (p.40). The role of the organisa-tion, its employees and its management must instead be seen in the contextof the needs of thegreater wholeorsystemof which it is a part.

Hampden-Turner & Trompenaars categorise a wholistic/idealistic ap-proach to management as being characterised by:

* an emphasis on integration (with the objective of constructing wholeconcepts as the purpose of analysis/deconstruction), for instancethrough the use of systems thinking.

* a perception of time as synchronisation as well as sequence. Peopleseek wider patterns and cycles.

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* a tendency towards universalism and the use of rules. This applicationof rules is internalisedrather than being imposed externally by a hierar-

chy, and is fa cilitated by high levels of self-discipline and self-control.(Hofstede categorises the Germans as having low Power Distance,which is consistent with this internalisation of rules and self-control).

* a tendency towards communitarianism. Individuals may be seen assystem components.

* a tendency towards egalitarianism. Status is achieved through func-tional expertise and operational performance.

Humanism

Humanism is defined by Websters Dictionary as pertaining to the social lifeor collective relations of mankind; devoted to realising the fullness of hu-

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Box 1: The Aims and Principles of the Carl-Zeiss-Stiftung

Zeiss is a German company which has achieved an international reputation for quality and technologicalinnovation. The name of Zeiss is to be found worldwide on a range of high quality, high technology sci-entific and optical instruments.

The companys success was inspired by the precepts of one of its founders, Professor ErnstAbbe, who was a partner of Carl Zeiss. Abbe believed that excellence derived from providing a secure,

supportive working environment for the companys workforce, and allowing individuals to develop theirtalents to the full.

The Carl Zeiss company was founded in 1846 by Carl Zeiss, a university technician who was bornin 1816. Its sister company, the Schott Glaswerke, was established with the assistance of Ernst Abbe.Otto Schott carried out research into the dependence of optical and other properties of glass on its com-position. The two companies achieved synergy by developing products which complemented eachother at the forefront of technology.

Ernst Abbe, a physicist, had become a partner of Carl Zeiss in 1875. Abbe sowed the seeds of fu-ture success in two ways. Firstly, he employed eminent scientists and was thereby able to expand theproduct range. Secondly, he established the company as a foundation (stiftung) in 1889, following thedeath of Carl Zeiss. The Foundation was to become the sole owner of both the Zeiss works and its sister,

the Schott Glaswerke.

The Foundation Statute, designed by Abbe, is summarised below:

Stated Aims

* to develop, produce and sell high-quality products in the fields of optics, precision engineering, elec-tronics and precision glass technology for national and international markets.

* to provide employees with exemplary social benefits.

* to allow employees to develop their capabilities to the full.

* to promote important work in science and technology, and to participate in activities of general socialvalue.

Principles

* science and technology complement each other.

* science, technology and economic activity should serve mankind, and not vice versa.

* economic stability and progress safeguards jobs.

* the company and its employees are mutually dependent.

Science, progressive technology, and social responsibility are therefore the determinants of the activi-ties of the Carl-Zeiss-Stiftung.


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man being; a philosophy that asserts the essential dignity and worth ofman.

Humanism is associated in particular with Italy. It is also a feature ofSpain, Greece, and Ireland. Humanism is characterised by:

* an emphasis on the family group and the community.

* a sense of per sonal obligation and duty.

* enterprise based on family, community, or socio-economic network.

* flexibility and adaptability; opportunism and change.

* a personalised and convivial management style.

* fashion, feeling, taste, and sentiment.

Humanism in business is developed by the family patriarch or matriarch; or

by the impannatore (defined by Lessem & Neubauer as designer, responsi -ble for shaping and responding to fashion, as well as for organising produc-tion, also urging firms to experiment with materials and processes [14,pp.214-215]). Each function as entrepreneur, leader, and social architect.

Hampden-Turner & Trompenaars categorise a humanistic approach tomanagement as being characterised by:

* the management of communities of individuals (being both individual-istic and communitarian).

* a tendency to personal equality within the hierarchy of the family, thecommunity, or the socio-economic network. Each person has his or herplace, duties, obligations, and rights within that context. Some peoplemay also believe that whatever Fate has decreed the individual mustaccept.

* particularism: it is the managers job to deal with exceptions and indi-vidual cases as they arise. The universalistic application of rules may beperceived as being synonymous with bureaucratic control by the state,and with corruption by officials.

* outer-directedness and opportunism.

* the perception of time as short term sequence within longer term his-torical patterns or synchrony.

Historical-Social Models

The national cul ture models described under this heading are based onhistorical-social dimensions or variables. Two models are described and il-lustrated below.

The Euromanagement Study

Bloom et als1994 bookEuromanagement [15] is based on a major studywhich aimed to find out whether there are any common characteristics be-

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tween European managers. The study sample comprised the Chief Execu-tives and senior management from thirty five companies, in fourteencountries across Europe, who were members of the European Round Table.

Bloom et alsuggest that the basic characteristics of a Euro pean man-agement model comprise the fol lowing:

[1] The capacity to manage international diversity: a characteristic that bindsEurope together is the ability to handle diversity. Europeans are familiarwith, understand, and respect diversity. Europes history and tradingneeds have taught its people how to deal with this diversity, and how tointegrate it within the work context. At the same time, this acceptance ofdiversity has enabled European companies to develop the ability to worksuccessfully in other cultures and countries, and to make effective

polycentricuse of the natural human talents found there.

Lessem & Neubauer [14] suggest that this capacity to manage diversity

includes coping with the fundamental tension between thepragmaticandthe wholistic/idealisticapproaches to the nature of society that character-ise different European cultures.

[2] An orientation towards people: in general terms, Europeans (like the Japa-nese) regard people as an integral part of business. There is less emphasison the American and Anglo-Saxon view of people as a resource whose re-lationship with the enterprise is purely an instrumental and a contractualone.

Europeans tend towards individualism (in contrast to the communi-tarianism of Japan). They have a view that people are to be served by

progress - not the other way round. Nor are shareholders to be the onlybeneficiaries of the activities of the enterprise. European companies mayreflect this belief in the security and quality of life offered to their work-ers, in their tolerance of individual differences, and in the styles of man-agement they espouse.

[3] Social responsibility: European companies tend to perceive themselvesto be an integral part of society. Bloom et al suggest (p.18) that thismeans they:

- act in a socially responsible way;

- consider profits to be one of the main goals of the company but notits raison dtre;

- opt for long-term thinking on strategic decisions and investments.

The view that institutions are a key part of the wider community is awholistic one. Wholism has already been described above. It derivesfrom the work of a wide range of European philosophers; and has beenencouraged by the success of the Japanese who hold parallel viewsabout the integrated nature of the development of society, its technol-ogy, and its institutions. The earning of profit by the enterprise is sim-

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ply seen as a means to a larger and more important end associated withthat social development and technological progress.

[4] Internal negotiation: the basis of many of the internal transactions ofEuropean organisations, and of their internal relationships, is negotiative.These relationships are in turn characterised by Kay [16] as relational,that is essentially long-term and based on trust. Negotiative behaviour isin general terms seen to be non-opportunist. On the long term both partiesto the negotiated relationship must receive mutual advantage; neithershould undertake activities that might damage the other.

[5] A degree of informality: many Europeans tend to be sceptical about thevalue of formal management systems and written rules. The managementprocess may be informal and intuitive, with intense verbal communica-tion and periodic negotiation. The distribution of powerand the role ofleadershipmay therefore under such circumstances be of con siderable in-terest to European managers, since they may not be able to rely on for -malisation or hierarchy in order to exercise authority or make/frame

decisions.

Some Europeans have bitter experience of bureaucracies as tools of totali-tarian oppression or vehicles of official corruption. This may help to sus-tain scepticism about the value of the well-organised and systematicstructures that their Anglo-Saxon or North European counterparts are in-stead happy to develop.

South East Asian Man agement

Chen [17], Cragg [18], and Seagrave [19] suggest that there are certain keyhistorical-social influences on the development of management practice in

South East Asia. These influences are mainly Chinese. They are summarisedbelow.

Taoism

Taoism is a wholistic philosophy that emphasises the inter-relationship andinteraction of every entity and everything in the world.

Each entity, in turn, will comprise varying (or opposing) internal ele-ments or forces. These are theyinand theyang. Harmony must actively bemaintained between these elements in order to secure the wholenessand in-

tegrity of that entity. This will give the entity a character of one-ness.

Whilst everything has a character of one-ness, this one-ness issubject tochange, in accordance with the laws of nature. Nothing is static or immuta-ble; change is natural and inevitable. The pursuit by managers of stabilityis therefore a chimera; such a search is bound to fail.

Confucianism

Confucius (551-479? BC) was a Chinese sage. His doctrines became knownas Confucianism. Confucianism became a moral and re ligious system inChina, and more widely throughout much of South East Asia. In particular,Confucianism became a structure of ethical precepts for the management ofsociety based upon:

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gram for strategy is the same as that for war, so it is natural for the Chi-

nese (and other South East Asian adherents) to perceive the two concepts inthe same light. As a result, South East Asians tend to perceive the market-place as a battlefield. Strategies for waging war have therefore been appliedto strategies for waging business. In terms of management style and process,these strategies include the following:

[1] Strategic management(applying and implementing strategy): there is aneed for effective strategic planning and strategic management. Chen[17] comments that with careful and detailed planning, one can win;with careless...planning, one cannot win (p.42). The objective should be toconquer by strategy; the most important thing is to avoid head-on con-

flicts.

[2] Moral influence: by which Sun Tzu meant the degree to which the peopleare in good accord and agreement with their ruler, such that they will bewilling to accept the hardship and dangers of war. In a competitive busi-ness world, the manager should try as much as possible to establish corpo-rate goals that are shared by all employees, so that all in the companycome to view themselves as members of the group crossing the river in thesame boat. They would be more likely (to) consider company affairs astheir own and be willing to make personal sacrifices when needed (Chen,p.43).

[3] The ability of generals:a good general, according to Sun Tzu, should pos-sess five key qualities. These are wisdom, sincerity, benevolence, courageandstrictness.

Chen suggests that these...qualities of generalship can be used tomeasure corporate leadership. A corporation is not unlike an army interms of its organisation. A powerful and efficient leader is indispensableto the success of a corporation. The five positive qualities of Sun Tzusgeneralship are also those needed by chief executive officers (p.44).

[4] Regulation, delegation, and training: Sun Tzu stressed the need for formal-ised sets of rules and regulations; the des ignation of rank and status; theproper allocation of responsibilities; and the establishment of appropri-ate organisation structure.

It is also necessary to delegate the appropriate power and authority tosubordinates; or rather to the most able subordinates. Chen comments(pp.48-49) of Sun Tzus preconditions for victory (that) he whose gener-als are able and not interfered with by the sovereign will win. This is theprinciple of not using the suspectable at all and using the trustworthy with

full confidence... he advised a good balance between an authoritarianleader and unorganised decentralisation, as either of (these) extremes isharmful to an or ganisation.

The implication is that in a highly competitive environment, corporatemanagers should have sufficient authority and flexibility such that they

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Be so subtle that you are invisibleBe so mysterious that you are intangible

Then you will control your rivals fate Sun Tzu


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can formulate and implement their strategies in response to conditions ofchange. Senior managers should have confidence in their chosen subordi-nates, and delegate them with enough power to carry out their work,without the need for constant upward referral for decision-making orsanction.

At the same time, Sun Tzu emphasised the need for effective training.Training is a prerequisite to the achievement of organisational efficiency.Sun Tzu commented that if sol diers do not understand or know how tofollow signals, they will not act correctly. Nor will they be ready for battle.Chen comments that in a business context, companies with well-trainedemployees can be managed with great efficiency. Successful business or-ganisations all over the world have good...training programmes.

The taipans

The taipanis defined by Cragg [18] as the supreme ruler or big boss.

The title of taipan is accorded in the east to those leaders considered worthyof great respect, in the strictest of Confucian traditions. This respect is paidto the taipans business acumen and achieve ment.

The first taipans were the British (and especially Scots) heads of theHong Kong trading companies. Cragg suggests that one of the most memo-rable of these original taipans was William Jardine...(who) was known lo-cally as the Iron-Headed Old Rat ([18], p.2).

Taipans from a variety of nationalities are now to be found throughoutSouth East Asia. There are South Korean taipans, Malays, Thais and Philip-

pinos. But many of these taipans are overseas Chinese.

Cragg describes the taipans of South East Asia as sharing such charac -teristics as being:

- strongly autocratic in style.

- strongly entrepreneurial and opportunistic.

- risk-takers (for whom there is no shame in attempt or failure; only in afailure to try).

- exponents of rapid decision-making.

- supreme users of networks and connections (for instance throughgquanxi).

- keen to nurture creativity and encourage innovation.

- persistent attenders to detail.

- skilled at managing and manipulatingface.

- steeped in the ways of both East and the West; and being capable ofmanaging the cultural schizophrenia and dilemmas to which such adual focus gives rise.

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Cragg comments that the domains of the taipans are typically characterisedbyfamily involvementin which, for example, key financial and managementresponsibilities are entrusted to relatives, relations, or long establishedfriends.

Summary Comparison

The main features of the national culture models described and illustratedin this article are summarised and compared in Figure 7.

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[2] Hofstede, G. (1991). Cultures and Organisations. McGraw-Hill, London.

[3] Fukuyama, F. (1995). Trust: the social virtues and the creation of prosper-ity. Hamish Hamilton, London.

[4] Morden, A.R. (1995). International Culture and ManagementManage-ment Decision, Vol. 33, No. 2.

[5] Hofstede, G. (1990). Behaviour in Organisations in D.S. Pugh (ed.)Organisation Theory. Penguin, London.

[6] Morden, A.R. (1996).Principles of Management. McGraw-Hill, London.

[7] Hampden-Turner, C. & F. Trompenaars (1994). The Seven Cultures ofCapitalism. Piatkus, London.

[8] Perlmutter, H.V. (1969). The Tortuous Evolution of the MultinationalCorporation Columbia Journal of World Business, Vol. 4 (January-February).

[9] Hall, E.T. (1960). The Silent Language of Overseas BusinessHarvardBusiness Review, May-June.

[10] Hall, E.T. (1976).Beyond Culture. Anchor Press, New York.

[11]. Hall, E.T. & M.R. Hall (1990). Understanding Cultural Differences. In-tercultural Press, Yarmouth, Maine.

[12] Lewis, R.D. (1992).Finland: Cultural Lone Wolf - Consequences in Inter-national Business. Richard Lewis Communications, Helsinki.

[13] Morden, A.R. (1995). National Culture and the Culture of the Organi-sation Cross Cultural Management, Vol. 2, No. 2.

[14] Lessem, R. & F. Neubauer (1994).European Management Systems.McGraw-Hill, London.

[15] Bloom, H., Calori, R. & P. de Woot (1994).Euromanagement. KoganPage, London.

[16] Kay, J. (1993).Foundations of Corporate Success. Oxford UniversityPress, Oxford.

[17] Chen, Min (1995).Asian Management Systems. Routledge, London.

[18] Cragg, C. (1995). The New Taipans. Century Business, London.

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[19] Seagrave, S. (1995).Lords of the Rim: The invisible empire of the over-seas Chinese. Bantam Press, London.

[20] Sun Tzu (1971). The Art of War. Translated by S.B. Griffith, OxfordUniversity Press, Oxford. Original c.500 BC.

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tramp enne model

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