Understanding Cultural Dynamics and CrossCultural CommunicationIntroduction We all belong to an entire collection of cultures, which includes, national cultures, subcultures (based on regions, tribes etc), organizational or corporate cultures, industry cultures, professional or functional cultures. For that reason, culture can be defined as a shared system of values, beliefs, and attitudes. It affects our own actions and the way we distinguish the actions of others. Culture is not a product of a single individuals personality, nor does it usually change significantly from one generation to the next. Various descriptions have been used to portray the process of understanding various layers of culture: 1) Culture is an iceberg, of which we see only the visible tip, also called as explicit culture. Explicit culture represented by artifacts and products, such as language, food, artistic expression, behavior and lifestyle (pace, public display of emotions, noise, physical contact, work ethics etc). 2) Culture is an onion, with layers that must be peeled away to reach the core of implicit culture, the universal truths of the culture. 3) Culture is a mirror image, in which the values (what we would like to do, how we would prefer to see ourselves) and norms (what we know we should do) are not same but are transposed and sometimes opposite. To be successful within an organization and in all societies in which the global organization operates HR professionals must understand the complication of culture and the probable effect of cultural forces on the execution of global strategies and the development of local tactical HR practices. Being global requires an act of imagination being able to see the view from inside another persons culture and using that consciousness to create solutions and bridges. There may be multiple types of culture in a global organization and the distances between these cultures can create conflicts that will impede with the organizations ability to execute its global strategic plan. In this write-up we will try to understand various types of culture, analyze the research work done in this domain and effect of various cultures within team. Complexities involved in Cross-Cultural Communication The main and most important key to effectual cross-cultural communication is knowledge. It is extremely essential that people understand the probable problems of cross-cultural communication, and makes a huge cognizant effort to overcome these problems. Also, it is important to assume that ones efforts will not always be successful, and adjust ones behavior aptly. A lot of people always assume that there is a momentous possibility that cultural

differences are the cause of communication problems. They should always be willing to be tolerant and pardoning, rather than intimidating and hostile, if problems develop. One should respond bit by bit and cautiously in cross-cultural exchanges, not jumping to the conclusion that you know what is being thought and said. William Ury in his paper advised that in case of any heated divergence one should stop, listen, and think, or as he puts it go to the balcony when the situation gets stressed. By this he means to withdraw from the situation, step back, and reflect on what is going on before you act. This helps in cross cultural communication as well. When things seem to be going faultily, stop or slow down and think. What could be going on here? Is it possible I misinterpreted what they said, or they misinterpreted me? Often delusion is the source of the crisis. Reflective Listening is one of the key ingredients in cross-cultural communication. Reflective Listening is used a lot to check out the meaning of what someone says by repeating back what you think you have heard. You are then able to substantiate that you understand what has been said accurately. This is as helpful as many times words and even gestures are used differently between languages or cultural groups. Often mediators who are familiar with both cultures can be cooperative in cross-cultural communication situations. They can help in translating both the matter and the way of what is said. For instance, they can tone down strong statements that would be considered unsuitable in one culture but not in another, before they are shared with people from a culture that does not talk together in such a strong way. They can also correct the timing of what is said and what does it implies. Some cultures move quickly to the reference or direct to the subject; others talk about other things long enough to set up rapport or a relationship with the other person. If discussion on the principal topic begins too soon, the group that needs a warm up first will feel uncomfortable. A mediator or intermediary who understands this can give details about problem, and make apt procedural adjustments. Sometimes mediators can also make the communication a bit more difficult. If a mediator is the same culture or nationality as one of the disputants, but not the other, this gives the facade of prejudice, even when none exists. Even when prejudice is not intended, it is common for mediators to be more sympathetic or more understanding of the person who is of his or her own culture, simply because they understand them better. Yet when the mediator is of a third cultural group, the prospective for cross-cultural misunderstandings increases further. In such cases engaging in extra discussions about the process and the manner of carrying out the discussions is appropriate, as is extra time for confirming and re-confirming understandings at every step in the conversation or negotiation process. Types of Cultures Classifications by Geert Hofstede and Trompenaars and Hampden-Turners Geert Hofstedes Dimensions of Culture Geert Hofstede defined national culture as the set of collective beliefs and values that distinguish people of one nationality from those of another. In his original work, Hofstede identified four important dimensions in national culture:

1) 2) 3) 4)

Uncertainty Avoidance Power Distance Individualism versus Collectivism Masculinity versus Femininity

Later he added another cultural dimension, Confucian dynamism, which captures the difference between a long-term and short-term orientation. 1) Uncertainty Avoidance This dimension refers to the extent to which people feel comfortable when they are exposed to an ambiguous or uncertain situation. People in a low uncertainty avoidance society are more willing to take risks and appreciate flexibility and informality in the workplace. On the contrary, people in a high uncertainty avoidance society tend to be risk averse and favor rigid formal decision-making processes in the workplace. Under high uncertainty avoidance: a) b) c) Security is a strong motivator relative to achievement or self-fulfillment. Order and predictability are paramount. Rules are important and must be obeyed to avoid chaos.

d) Communication is direct and unequivocal to avoid confusion (Often this directness in high uncertainty avoidance countries is mistaken for rudeness). In low uncertainty avoidance societies, managers are allowed to exercise more latitude and discretion in their decision making rather than relying on rigid internal rules and regulations. Countries that exhibits the culture of high uncertainty avoidance: Germany, Spain, Portugal, Turkey, South Korea, Greece, Portugal, Latin America, Belgium, Japan, France Countries that exhibits the culture of low uncertainty avoidance: the United States, Malaysia, India, the United Kingdom, Singapore, Denmark, Sweden, Hong Kong From Organizations Perspective A) Impact on Manager: A compensation specialist advises a Singapore company to adopt a different compensation plan for its sales force in Japan. Unlike the home sales force, which has low base pay and high commissions, the Japanese sales representatives will receive high base pay and lower commissions. B) Impact on Managed: Before beginning a project, a French employee of a global non-profit organization asks copious questions to ensure perfect understanding of the managers expectations. Impact on Compensation Policies and Practices In countries that are Low on uncertainty avoidance, one can find Performance-based (at risk) pay; external equity focus; flexibility; broad salary banding (few pay grades). On the other side, countries that are high on uncertainty avoidance shows limited use of performance-based pay; pay consistency and predictability.

2)

Power Distance

Power distance refers to the extent that people have an equal distribution of power. In a large power distance culture, power is concentrated at the top in the hands of relatively few people whereas people at the bottom are subject to decisions and instructions given by superiors. Conversely, in a small power distance culture, power is equally distributed among the members of the society. It is important to note that the particular predominant perspective on power distance is held and reinforced by most members of the society. Managers in high power distance societies tend to believe in giving subordinates detailed instructions with little room for interpretation. Subordinates are supposed to respect the authority and superiority of upper management. The mechanistic characteristics of high power distance cultures, such as a) b) c) inequality among the members in the society, lack of free communication across different levels of the hierarchy, and centralized control

can stifle employee creativity and new ideas. On the contrary, the organic characteristics of low power distance cultures, such as a) b) lack of hierarchical authority, and less centralization

tends to promote employee interaction, lateral communication and less emphasis on the rules. Countries that exhibit the culture of high power distance: Malaysia, Latin America, Middle East, China, Mexico, Panama, Indonesia, and India Countries that exhibit the culture of low power distance: Austria, Australia, New Zealand, Ireland, Denmark, Israel, Scandinavian Countries, the United Kingdom, and the United States From Organizations Perspective A) Impact on Manager: Two headquarters managers demonstrate the effects of their cultures. A Saudi manager remains aloof from subordinates, tends to retain significant projects rather than delegating them and expects subordinates to step forward quickly to assume blame when things go wrong. On the other hand, a Danish manager enjoys sharing assignments and credit with subordinates but always assumes blame for any problems. B) Impact on Managed: A British training specialist goes to work for a Malaysian domestic company. He cannot understand why his attempts to offer suggestions are coldly received and why he is receiving poor performance reviews. Impact on Compensation Policies and Practices In countries or cultures that emphasizes on low power distance, one can observe

employee participation and involvement in reward determination and distribution techniques; profit sharing; gain sharing etc. On the other hand, in cultures with where high power distance dominates, no employee participation/involvement will be noted. One can note status distinctions reinforced by pay and rewards. 3) Individualism versus collectivism Individualism means that people seek and protect their own interests over the common goal of the society and their role in the society. In an individualist culture, people are comfortable with having the authority to make a decision based on what the individual thinks is best. On the other hand, in collectivistic culture, people tend to belong to groups and look after each other in exchange for loyalty. a) In individualistic societies, employees are provided with a great deal of personal freedom and autonomy. On the other hand, collective cultures do not usually allow the same amount of freedom and independence necessary for organizational members to think creatively and thereby, fail to cultivate an environment that fosters an innovative spirit. b) While an individualist culture tends to emphasize individual merit or achievement, collectivistic culture measures contributions to teamwork and group achievement. c) Collective cultures put a great deal of pressure on their members to conform to one another without their being aware of it. The overwhelming and unconscious pressure for conformity and uniformity in collective cultures does not cultivate an environment for diversity and provides less room for people to deviate from established norms, thus impeding the innovation process. Countries that exhibit individualism culture: Sweden, the United States, Canada, the United Kingdom, Australia, France, Italy, Netherlands, Italy, Belgium Countries that exhibit collectivism culture: Ecuador, Colombia, Hong Kong, Latin America, Taiwan, Pakistan, Indonesia, South Korea, China, From Organizations Perspective A) Impact on Manager: A U.S. manager in a Latin American country plans to promote an individual based on her work on an important project. Other managers explain that they use a broader range of factors in this decision, including evidence of loyalty. B) Impact on Managed: The performance of a South Korean sales force improves dramatically when incentives are changed from individual rewards to team bonuses. Impact on Compensation Policies and Practices In collectivism cultures, companies should emphasize on group-based contingent rewards; non-economic rewards that satisfy recognition needs with minimal individual distinction. In individualistic cultures, companies pay more attention on individual-based contingent rewards; individual praise and recognition. 4) Masculinity versus Femininity Masculine Culture

Characteristics of masculine culture: a) A masculine culture is basically a performance-driven society where rewards and recognition for performance are the primary motivational factors for achievement. b) In masculine cultures some major innovations are simply the outcome of financial rewards, prestige and a sense of accomplishment. c) In societies that are dominated by masculine culture, people are supposed to be competitive, ambitious, and assertive and risk taking, in order to achieve their goals. This type of culture tends to give the utmost respect and admiration to the successful achiever who fulfills his or her ambition and demonstrates assertiveness and willingness to take risks in order to achieve goals. Feminine Culture Characteristics of feminine culture: a) In feminine cultures, people tend to emphasize the quality of the whole life rather than money, success and social status, which are easier to quantify. b) Organizations with a feminine culture are not as competitive as those with a masculine culture, because the former places higher priority on concern for others and little distinction is made between men and women in the same position. Countries that exhibit Masculine culture: Switzerland, the United States, the United Kingdom, Mexico, Germany, Japan, Slovakia, Hungary, Austria, Venezuela, Italy Countries that exhibit Feminine culture: Denmark, Finland, Norway, Sweden, Scandinavian Countries, Netherlands, Chile, Thailand From Organizations Perspective A) Impact on Manager: A Swedish company promotes employee development practices such as coaching and mentoring that emphasize providing empathy and support. A manager in Japan has trouble performing this part of job. B) Impact on Managed: An HR department in Austria has been instructed by its Danish headquarters to implement a new work-life balance program. They try, but the program is not well accepted or implemented locally. Impact on Compensation Policies and Practices In companies that exhibit feminine culture, one can note that strong emphasis being placed on social benefits; quality of work life; work-life balance; job security; emphasis on sharing versus competing for rewards. Masculine cultures emphasizes on performance-based pay; competition in pay, promotion and recognition. 5) Confucian Dynamism (or long-term versus short-term orientation) Using a different survey instrument called the Chinese Value Survey (CVS), Hofstede and Bond identified a new cultural dimension, long-term verses short-term orientation. In their analysis they found that societies with long-term orientation show following characteristics: a) Adaption of tradition to the modern context

b) c) d)

High savings ratio driven by thrift Patience and perseverance toward slow results and Concern with respecting the demand of virtue

On the other hand, societies with short-term orientations exhibit the following characteristics: a) b) c) d) Respect for traditions Lower savings rates Quick result orientation, and Concern with possessing the truth

Confucian dynamism may reflect a societys search for virtue rather than truth. Along with the different proclivity toward uncertainty avoidance, short-term versus long-term orientation also has been identified as a main source of conflict resulting in decreased performance in international joint-ventures. Countries that exhibit long-term orientation: China, Japan, South Korea, Brazil, India Countries that exhibit short-term orientation: West Africa, Philippines, Norway, the United Kingdom, the United States From Organizations Perspective A) Impact on Manager: A Chinese manager faced with promoting one of two Nigerian supervisors chooses the one with the most tenure and best work attendance. B) Impact on Managed: A Nigerian supervisor cannot understand why hes been passed over for promotion in his Chinese-owned company, though he is well placed in this community and has given his manager appropriate gifts. Trompenaars and Hampden-Turners cultural factors Adopting Parsons five relational orientations as their starting point, Trompenaar and Hampden-Turner identified SEVEN important cultural dimensions. They viewed culture mainly as the way in which a group of people solves problems and reconciles dilemmas. 1) Universalism versus Particularism Universalism is a belief that there exists only a single management principle that should be applied to all situations. People from universalistic cultures tend to believe that their way of doing business or managing people is the universal one and the best way and therefore should be adopted by all other countries. Conversely, particularistic cultures highlight the peculiarity and distinctiveness of a countrys culture that is different from those of other countries. Both at a country and individual levels, the emphasis is on building long-term relationships and being sensitive and responsive to the unique circumstances surrounding that relationship. Some characteristic features: a) Unlike people in a universalistic culture, people in a particularistic culture assume that local circumstances determine the way of doing business in different countries.

b) People from universalistic cultures also tend to believe in absolute justice and truth and extend great resources to their protection. c) Those high in universalism take moral principles very seriously because they recognize the existence of a unified approach to business. In contrast, people in particularistic cultures tend to interpret justice or moral convictions in a more flexible manner, depending on the local and current circumstances. Countries that exhibit universalistic cultures: Switzerland, Canada, the United States, the United Kingdom, Sweden Countries that exhibit particularistic cultures: Venezuela, Korea, Russia, China, Portugal From Organizations Perspective A) Impact on Manager: A Swiss manager insists that an employee be fired for absenteeism, although the employee has been caring for sick parents and has been making up for absences by working extra hours at home. B) Impact on Managed: An HR manager in Venezuela has been interpreting the U.S. parent companys rules flexibly to accommodate local culture but now faces a negative performance review by headquarters senior managers. 2) Specific versus Diffuse Cultures In specific cultures, people clearly separate public space from private space. Furthermore, in specific cultures the size of public space is relatively large compare to private or personal space and is greatly compartmentalized. In other words, people in a specific culture tend to be very friendly and willing to open their public space to other people with whom they do not have an acquaintance and admit them into a segregated compartment with a limited personal commitment. On the contrary, in diffuse cultures, the distinction between private and public spaces is rather unclear and blurry. Everything is related and business is just another form of social interaction. Business relationships are expected to be enduring and spill over into personal relationships and vice versa. Some characteristic features: a) Specific cultures tend to compartmentalize public and private life into separate roles, where one role does not influence another. However, in a diffuse culture roles tend to extend beyond their official boundaries. It is no wonder that diffuse cultures tend to have greater difficulty with role confusion. b) For diffuse cultures the size of public space is almost equal to that of private space. Therefore, in diffuse cultures, people tend to reserve even their public space for those whom they are familiar with, because accepting the entry of unknown people could also mean the uncomfortable opening of their private space. Countries that exhibit specific cultures: Sweden, Netherlands, the United Kingdom, Canada Countries that exhibit diffuse cultures: China, Nigeria, Kuwait, and Singapore From Organizations Perspective

A) Impact on Manager: A manager of a Venezuelan energy company is cool to a young employees request for mentorship until a common friend makes the request. B) Impact on Managed: A British manager brought in to work for a Singapore MNC may have hurt his advancement by repeatedly evading the bosss invitations to social gathering in favor of spending time with other expatriates. 3) Achievement versus Ascription Cultures Achievement cultures value personal competency and an outcome resulting from individual hard work. What matters most in an achievement culture is an objective track record of individual accomplishment. In contrast, an ascription culture means that people are conferred a certain status based on specific characteristics such as title, position, age and profession. People in an ascription culture value personal connections and family background more than the individuals qualifications. They expect those in authority to act in accordance with the roles ascribed to them by fate or a divine power; actual performance and results are less important. Appearance accorded by title and status is more important than substance driven by individual qualification. In an ascription culture, a high-trust relationship is based on membership of a common family, province or class of graduates. These represent preexisting relationships. Countries that exhibit achievement cultures: the United States, Australia, Canada, the United Kingdom, Netherlands Countries that exhibit ascription cultures: Egypt, Argentina, Czech Republic, Korea, Poland From Organizations Perspective A) Impact on Manager: A British manager supervising a Czech office senses hostility among the office employees after promoting a young worker. They obviously disagreed with the choice. B) Impact on Managed: An ambitious young Australian who has struggled to educate and establish herself is baffled by her Egyptian managers, who seem more impressed with the connections of her Egyptian team members than with her achievements. 4) Individualism versus Communitarianism Individualism refers to the culture that emphasizes the interests of self or of his/her own immediate family. Individualism is about the rights of the individual. It seeks to let each person grow or fail on their own, and sees group-focus as denuding the individual of their inalienable rights. In contrast, communitarianism, a synonym for collectivism, emphasis group interests before individual interests and seeking group consensus in decision making. It seeks to put the family, group, company and country before the individual. It sees individualism as selfish and short-sighted. Countries that exhibits individualistic cultures: Israel, Canada, the United States, Denmark

Countries that exhibits communitarian cultures: Egypt, Mexico, India, Japan, France From Organizations Perspective A) Impact on Manager: A Japanese team leader has trouble creating harmony within a global design team composed of Americans and Mexicans. B) Impact on Managed: An Indian employee assigned to a Canadian office is perplexed by the competition among project teams that the offices managers try to create. 5) Affective versus Neutral Culture People in affective or emotional cultures are not hesitant to reveal their innermost feelings whereas people in neutral cultures tend to control their emotions carefully and maintain their composure. People in neutral cultures may consider the behaviors of people from affective cultures immature; people from affective cultures may view the stoic behaviors of people from neutral cultures as insincere and deceiving. This perception may cause problems during cross-cultural negotiations between managers from affective and neutral cultures. Countries that exhibits neutral cultures: Ethiopia, Japan, Hong Kong, China, India Countries that exhibits affective cultures: Kuwait, Egypt, Spain, Russia, Argentina From Organizations Perspective A) Impact on Manager: A Spanish manager of a Japanese electronics subsidiary is corrected gently by visiting Japanese managers for expressing anger at a violation of clean-room rules. B) Impact on Managed: A Russian international assignee working for a Hong Kong real estate firm is convinced that her manager doesnt like her. Her manager never seems open or relaxed when meeting with her. 6) Time as sequence vs. Time as synchronization A mono-chronic, or sequential, approach to time means that people use time in a linear way. Time is perceived as being a tangible asset almost like money. In this type of culture, punctuality is a virtue and people need to always keep schedules. At the same time, they tend to make a clear distinction between work and pleasure. People may be relaxed only during their leisure time, while they concentrate on assigned tasks only during working hours. In contrast, a poly-chronic, or a synchronous, approach to time suggests that people use time in a circular way. People in this cultures tend to have a more flexible view about time and can handle multiple agendas at the same time. They also consider that maintaining human relations is more important than keeping schedules. Accordingly, they do not clearly separate their work from pleasure and do not mind mixing them. Countries that exhibit sequential cultures: the United States, Japan, Netherlands Countries that exhibit synchronic cultures: France, Spain, Belgium From Organizations Perspective

A) Impact on Manager: A Japanese project team leader is irritated and doesnt know what to do with a French team member who is continually late to team meetings. B) Impact on Managed: A Belgian work unit thinks its unreasonable and arrogant when the U.S. headquarters cancels a traditional social ritual in order to meet a looming deadline. 7) Inner-directed versus Outer-directed This cultural dimension concerns how people in a society orient themselves to nature. First, people can think that human beings are supposed to dominate nature. Second, some people believe that they need to live in harmony with nature. A third and final orientation toward nature is a sense of subjugation to nature. In other words, human being cannot and should not master nature because a Supreme Being or supernatural force is supposed to govern individual fate and destiny. Inner-directed (or also called as future oriented culture) is about thinking and personal judgment, in our heads. It assumes that thinking is the most powerful tool and that considered ideas and intuitive approaches are the best way. People in this culture tend to believe that they can improve their situations and even influence nature as a result of their own actions and ideas. In contrast, Outer-directed (or also called as past oriented culture) is seeking data in the outer world. It assumes that we live in the real world and that is where we should look for our information and decisions. People in this culture do not believe that individual actions and ideas can change the will of a supreme being, who is supposed to decree what will happen in future. Countries that exhibit inner-directed cultures: Israel, Norway, the United States, the United Kingdom, France Countries that exhibit outer-directed cultures: Venezuela, China, Russia, Kuwait, Singapore From Organizations Perspective A) Impact on Manager: A British company has outsourced design of a component to a Russian firm. The British expect a design that ensures top performance across the full range of criteria and the latest technology. The Russians argue that the British should think more about what their end customers really require. B) Impact on Managed: A Norwegian employee assumes that if he works hard enough, he will be rewarded with a promotion. Conclusion Understanding cultural differences is critical for the success of an organization in global arena because there are roles played by culture that influences talent management strategies and practices at workplace. In this write-up we have examined several important dimensions of various cultures for gaining insights and understanding the cultures of employees that staff our organizations domestically and overseas. We hope that this write-up will be of some use to HR professionals that are managing and developing talents at global stage.

References 1. International Human Resource Management A Multinational Company Perspective, By Monir H. Tayeb 2. Aligning Human Resources and Business Strategy, By Linda Holbeche 3. Managing a Global Workforce, By Charles M. Vance and Yongsun Paik