Intercultural Management.

We are all product of our environment in which we grew up and in which we make a daily living. In some cases, the way we see the world, or the way in which we make decisions is not the same as perceived in other cultures or countries.

For example, did you know that during a meeting with French managers hardly any decisions are made? For an English businessman, this may sound strange as the entire purpose of a meeting is getting actions ‘ticked off’…

If you were counting on a private meeting, a ‘one-on-one’, with a manager in Poland, don’t be surprised if at least 5 others will show up!

Although these are generalizations, I have been in situations where exactly these kind of misunderstandings led to frustration and threatened to become an inhibitor to communication.

Fortunately, this is not necessary by anticipating what can be expected when dealing with other countries and cultures.

Basic Concepts

A well-known study performed at IBM during the 70’s by Geert Hofstede over 70 countries yielded the so-called Cultural Dimensions that characterize each country and culture.

It is still used as a foundation to work with when studying the ways of management, communication, decision making and styles.

Cultural Dimensions

(Geert Hofstede)

Below the cultural dimensions with some examples. (Full overviews can be found by searching on-line for Geert Hofstede.)

Power Distance Index – PDI

To what extent do the members of the organization who have less power accept that power is unequally distributed?

Austria, Denmark —
India ++

Individualism – IDV

This is the level of integration of the individual into groups. Does the society (or organization) consist of individuals or is it a coherent group? High score indicates high level of individualism.

Netherlands, UK ++
China —

Masculinity – MAS

Masculinity versus Feminity indicates how different roles are distributed amongst men and women.

Masculinity can be associated with the level of assertiveness and competitiveness while Feminity represents values like caring for others.

Arab countries ++
Netherlands, Norway —

Uncertainty Avoidance Index – UAI

A measure to which extent uncertainty and ambiguity are tolerated in society. Can also be interpreted as to which extent the Truth is felt to be important in society. When the Truth is felt to be really important, we can expect strong laws, avoidance of insecurity or unusual situations, security measures and a relatively low tolerance for different opinions.

Belgium, Portugal ++

Long-Term Orientation – LTO

Principal values associated with Long-term are perseverance, thrift, while Short-term orientation can be recognized by respect for tradition, not losing face.

China ++
USA —

Having lived and worked for longer periods of time in other countries, I know that these type of categorizations can be ‘a bit dangerous’ when radically applied in daily situations. However, a large number of additional studies have been performed to refine and make practical use of the work of Mr. Hofstede that have helped cross borders for many business people operating globally.