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Managing the Outsourcing_Cultural sensitivity


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Managing the Outsourcing_Cultural sensitivity

  2. 2. Learning Objectives• At the completion of this session you will be able to: – Describe what Cultural Sensitivity is – Appreciate the importance of cultural sensitivity in business – Understand the Hofstede framework to understand cultural differences Learning Objectives
  3. 3. Topics Index Cultural Sensitivity Defined Why do we need Cultural Sensitivity? The Hofstede Framework How do we develop Cultural Sensitivity? Topics Index
  4. 4. Topics Index Cultural Sensitivity Defined Why do we need Cultural Sensitivity? The Hofstede Framework How do we develop Cultural Sensitivity? Topics Index
  5. 5. Some Examples When colouring in 800,000 pixels on a map of India, Microsoft coloured eight of them a different shade of green to represent the disputed Kashmiri territory. The difference in greens meant Kashmir was shown as non- Indian. The product was promptly banned in India. Microsoft was left to recall all 200,000 copies of the offending Windows 95 operating system software to try and heal the diplomatic wounds. It cost them millions. Introduction
  6. 6. Some Examples The fast food giant McDonalds spent thousands on a new TV ad to target the Chinese consumer. The ad showed a Chinese man kneeling before a McDonalds vendor and begging him to accept his expired discount coupon. The ad was pulled down by the Chinese Govt. The ad caused uproar over the fact that begging is considered a shameful act in Chinese culture. Introduction
  7. 7. Some Examples Pepsodent tried to sell its toothpaste in South East Asia by emphasizing that it "whitens your teeth." The ad bombed as They found out that the local natives chew betel nuts to blacken their teeth which they find attractive.. Introduction
  8. 8. Some Examples So what went wrong in these situations? Introduction
  9. 9. What is Cultural Sensitivity?Knowing that differences exist between cultures but not judging – for example better or worse, right or wrongThe quality of being AWARE, ACKNOWLEDGING, and RESPECTFUL of other cultures
  10. 10. Cultural SensitivityTolerance, inter-cultural dialogue andrespect for diversity are more essential thanever in a world where people are becomingmore and more closely interconnected.—Kofi Annan, Former Secretary-General of theUnited Nations
  11. 11. What is globalization?A process by which Economies, Societies, and CULTURES have become integrated.Some of the enablers of this integration are:• Technology• Trade The glue that binds all this together is• Migration COMMUNICATION• FDI BETWEEN PEOPLE
  12. 12. The Modern Global Corporation
  13. 13. Some Global Companies…
  14. 14. Topics Index Cultural Sensitivity Defined Why do we need Cultural Sensitivity? The Hofstede Framework How do we develop Cultural Sensitivity? Topics Index
  15. 15. Why do we need Cultural Sensitivity?People do business with peopleCultural sensitivity can enable better relationships between people through• Better Understanding• Tolerance• Mutual Respect
  16. 16. Industry Perspective
  17. 17. Topics Index Cultural Sensitivity Defined Why do we need Cultural Sensitivity? The Hofstede Framework How do we develop Cultural Sensitivity? Topics Index
  18. 18. Understanding Cultural Differences: The Hofstede FrameworkThe Hofstede framework helps us understand:• Key factors underlying global cultural differences• How different cultures are rated on these key factors• How can we leverage this understanding to better work with each other
  19. 19. Hofstede’s Cultural Dimensions• Geert Hofstede – Dutch management researcher• Gathered data from 100,000 IBM employees – Wanted to determine values on which cultures vary• Surveyed workers from 50 countries and 3 regions• Concluded that there are five dimensions used to differentiate and rate cultures
  20. 20. The Five Dimensions• Individualist/Collectivist• Uncertainty Avoidance• Power Distance• Masculinity-Feminity• Long-Term/Short-Term
  21. 21. Individualist versus Collectivist• How people define themselves and their relationship to others – Individualist • Believe individual is most important • Stress independence over dependence • Reward individual achievement • Value uniqueness of individual – Collectivist • Views, needs, and goals of group most important • Obligation to the group is the norm • Self is defined in relation to others • Focus on cooperation, not competition
  22. 22. Uncertainty Avoidance• “The degree to which people within a culture are made nervous by situations which they perceive as unstructured, unclear, or unpredictable.” – High Uncertainty Avoidance • Avoid ambiguity • Strict codes of behavior • Belief in absolute truths – Low Uncertainty Avoidance • Accept ambiguity and lack of structure • More inclined to take risks and “think outside the box” • Rules are rejected or ignored
  23. 23. Power Distance• Extent to which people view inequality as normal or natural – High Power Distance • Power is scarce resource • Natural and inevitable • Power should be centralized – Low Power Distance • Minimal power differences • Power can be achieved through work • Superiority not rigid
  24. 24. Masculinity-Femininity• Relationship between gender and sex- appropriate behavior – Masculinity • Distinct roles • Men are assertive, ambitious, and competitive • Women are supportive, nurturing, and deferent – Femininity • Fewer rigid gender roles • Men and women are more equal • Interpersonal relationships important
  25. 25. Long-term/Short-term• Added later by Hofstede• Difference in Orientation – Long-term Orientation • Savings • Do anything to achieve a goal • “Eye on the prize” – Short-term Orientation • Immediate gratification • “Make money, spend money” • Less willing to sacrifice
  26. 26. Illustration
  27. 27. Exercise – 15 minutes Compare and contrast the US and Japan, and highlight the likely differences in thinking and behavior
  28. 28. Topics Index Cultural Sensitivity Defined Why do we need Cultural Sensitivity? The Hofstede Framework How do we develop Cultural Sensitivity? Topics Index
  29. 29. How are companies dealing with this challenge?• Cultural Sensitivity Training• Job rotations• Cross cultural teams• Overseas Assignments
  30. 30. How is industry preparing its workforce for Cultural Sensitivity
  31. 31. Some Real Life Examples• Keeping direct eye contact during a conversation may be perceived as rude in Japan• Americans have a strong notion of personal space. Even casual physical contact like a pat on the back can be perceived as rude• In countries like USA and Germany, punctuality is expected, whereas in some cultures like Latin America, showing up in time for a dinner appointment may be perceived as rude!• In some cultures, it is rude to ask personal questions like “Are you married”, unless you know the person well
  32. 32. Developing Cultural Sensitivity – A different mindsetIn cross cultural situations:• Be very observant about how people behave, speak, eat, and relate to others• Do not hesitate to ask polite questions with an attitude to learn• When in doubt, be conservative in – Speech – Clothing – Behaviour
  33. 33. Summing Up…• Different cultures have a different orientation and history• These differences lead to a different way of thinking, and differences in behaviour• It is important to understand, and respect these differences to be able to work with people• Being sensitive to different cultures takes time and effort
  34. 34. References• Kim’s Classy Tips:• The Hofstede Framework for understanding Cultural Differences:• Cultural Sensitivity and Global Leadership Skills:• Cultural Sensitivity in Business:
  35. 35. Thank You