INTRODUCTION TO CULTURE
CASO DE UN INVERSOR HOLANDES EN ARGENTINA
COMBINANDO TEORIA Y PRACTICA
CON ENFASIS SOBRE DIFFERENC...
EL CIELO ES …..
… where the police are British
… the cooks are French
… the mechanics are German
… the lovers are Italian
...
EL INFIERNO ES …..
… where the police are Italian
… the cooks are British
… the mechanics are French
… the lovers are Germ...
TODO DEPENDE DEL CONTEXTO!
ECONOMIAS Y CLIMA DE NEGOCIOS EN
“EUROPA”;
PBI
4
3
2
1
-time-
%
TODO DEPENDE DEL
CONTEXTO!
CONTEXTO, ECONOMIAS Y CLIMA
DE NEGOCIAS EN “AMERICA
LATINA”;
ENTONCES, PARA MI, LO
FUNDAMENTAL ES:
Entender las diferencias culturales:
– Contexto, social, política, económica, financ...
Cross-cultural studies and
their practical implications -
measuring differences:
Objectivos de la presentacion
• Que es cu...
“Possibly one of the many reasons why
the culture concept has been resisted”,
Hall (1976), writes, “ is that it throws
dou...
Cultural Research
Intercultural focuses on the penetration
by a member of one culture into another
culture
Cross-cultural ...
Meaning of culture
Culture one: (narrow sense) civilisation
- refinement of the mind: education,
literature, language & ar...
Three levels of Mental
programming (Hofstede, 1991)
PERSONALITY
CULTURE
HUMAN NATURE
Specific to
individual
Inherited and
...
Risk of stereotyping
French anthropologist, Claude Lévi-Strauss
(1988), gave his definition of cultural relativism
affirmi...
Hofstede Culture Consequences
(1980)
IBM based research(VSM)116.000
questionnaires, 50.000 respondents,
40 countries
Surve...
Manifestations of culture
Symbols
Heroes
Rituals
Values
--Practices--
Dimensions of culture
· Power Distance
· Individualism versus Collectivism
· Femininity versus Masculinity
· Uncertainty A...
The concept of power distance
1. The mere exercise of power will give satisfaction
2. The more powerful individual will st...
Core of culture is formed by
values (Hofstede 1991) - and norms
(Trompenaars 1998)
Values, defined by each culture in
term...
Kluckhohn and Strodtbeck (1961) findings
fundamental for Hall, Hofstede & Trompenaars)
Five universal problems to mankind,...
Interesting argument by Hall (1976)
………the natural act of thinking is greatly
modified by culture. Western man uses only a...
CULTURES AND ORGANISATIONS
“software of the mind”
(Geert Hofstede)
More equal than others
Inequality in society
I, we and ...
Cultural Differences between South
America and the Netherlands…..
Power
distance
Indivi-
dualism
Masculinity
Uncertainty
a...
Implications for the organisational
structure ….
South America:
a pyramid
Netherlands:
a network
More equal than others
General norm, family, school and workplace
SMALL POWER DIFFERENCE
Inequalities among people should ...
RESULTADOS DEL ENCUESTA
USTEDES;
–PDI -6
–IDV 69
–MAS 65
–UIA 61
–LTO 39
PDI
• Netherlands 38
• USA 40
• Hong Kong 68
• AR...
More equal than others
In politics and ideas
SMALL POWER DIFFERENCE
The use of power should be legitimate
and is subject t...
I, WE AND THEY
General norms, family, school and workplace
Collectivist
People are born into extended families or
other in...
I, WE AND THEY
Politics and Ideas
Collectivist
Collective interests prevails over
individual interest
Private life is inva...
HE, SHE AND (S) HE
General norms, family, school and workplace
Feminine
DOMINANT VALUES IN SOCIETY ARE
CARING FOR OTHERS A...
HE, SHE AND (S) HE
In politics and ideas
Feminine
Welfare society ideal
The needy should be helped
Permissive society
Smal...
WHAT IS DIFFERENT IS
DANGEROUS
General norms, family, school and workplace
Weak uncertainty avoidance:
Uncertainty is a no...
WHAT IS DIFFERENT IS
DANGEROUS
In politics and Ideas
Weak uncertainty avoidance:
Few and general laws and rules
If rules c...
Confucian dynamism – and growth
Confucianism is not a religion, but a set of pragmatic
rules for daily life derived from w...
Confucian dynamism – and growth
Short term orientation:
Respect for traditions
Respect for social and status
obligations r...
DISTRIBUTION OF THE BRAIN –
and the problem of the President
Left Brain Right Brain
Logical Random
Sequential Intuitive
Ra...
FUKUYAMA- LOW and HIGH
trust societies
…..Later on I came across a notion by Fukuyama about trust[1];
he proposes that it ...
DIFERENCIAS Y FORMAS DE
LIDERASGO – LA PRACTICA
“Femininity” versus “Masculinity”
Dilemas y “dualities”
Normas y valores
?
LAS DOS MUJERES MAS
PODEROSAS DEL MUNDO
Alemania – “machismo”
Presentation Gjm Culture Nov, 27 2009
Presentation Gjm Culture Nov, 27 2009
Presentation Gjm Culture Nov, 27 2009
Presentation Gjm Culture Nov, 27 2009
Presentation Gjm Culture Nov, 27 2009
Presentation Gjm Culture Nov, 27 2009
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Presentation Gjm Culture Nov, 27 2009

  1. 1. INTRODUCTION TO CULTURE CASO DE UN INVERSOR HOLANDES EN ARGENTINA COMBINANDO TEORIA Y PRACTICA CON ENFASIS SOBRE DIFFERENCIAS CULTURALES Dr. Gert Jan Mulder DBA MBA PILAR, Noviembre 27, 2009
  2. 2. EL CIELO ES ….. … where the police are British … the cooks are French … the mechanics are German … the lovers are Italian … and football players are…
  3. 3. EL INFIERNO ES ….. … where the police are Italian … the cooks are British … the mechanics are French … the lovers are German … and football players are…
  4. 4. TODO DEPENDE DEL CONTEXTO! ECONOMIAS Y CLIMA DE NEGOCIOS EN “EUROPA”; PBI 4 3 2 1 -time- %
  5. 5. TODO DEPENDE DEL CONTEXTO! CONTEXTO, ECONOMIAS Y CLIMA DE NEGOCIAS EN “AMERICA LATINA”;
  6. 6. ENTONCES, PARA MI, LO FUNDAMENTAL ES: Entender las diferencias culturales: – Contexto, social, política, económica, financiera – Realidades – Perspectiva historia – Comportamiento humana Da repuestas a las preguntas; POR DONDE VIENEN ESTAS DIFERENCIAS Y COMO LO PUEDES MANEJAR?
  7. 7. Cross-cultural studies and their practical implications - measuring differences: Objectivos de la presentacion • Que es cultura? What is culture? • Literatura/teoria extensive literature review; sobre todo Hofstede G., (1991) Cultures and organisations – Software of the mind; Intercultural cooperation and its importance for survival, McGraw-Hill, New York • Presentacion del caso de un inversor holandes
  8. 8. “Possibly one of the many reasons why the culture concept has been resisted”, Hall (1976), writes, “ is that it throws doubt on many established beliefs. Fundamental beliefs….. are shown to vary widely from one culture to the next. It is easier to avoid the idea of the culture concept than to face up to it”
  9. 9. Cultural Research Intercultural focuses on the penetration by a member of one culture into another culture Cross-cultural deals with similarities and differences between cultures – (Landis and Wasilewski, 1999)
  10. 10. Meaning of culture Culture one: (narrow sense) civilisation - refinement of the mind: education, literature, language & arts Culture two: Fundamental human processes, thinking, feeling, acting, greeting, eating, showing or not showing, distances, time, making love and many others – Hofstede (1980, 1991) Hall (1973)
  11. 11. Three levels of Mental programming (Hofstede, 1991) PERSONALITY CULTURE HUMAN NATURE Specific to individual Inherited and learned Specific to group or category Universal Learned Inherited
  12. 12. Risk of stereotyping French anthropologist, Claude Lévi-Strauss (1988), gave his definition of cultural relativism affirming that one culture has no absolute criteria for judging the activities of another culture as “low” or “noble”. However, every culture can and should apply such judgment to its own activities, because its members are actors as well as observers.
  13. 13. Hofstede Culture Consequences (1980) IBM based research(VSM)116.000 questionnaires, 50.000 respondents, 40 countries Surveys held twice 1968 and 1972 Role of symbol, heroes, rituals and values Four dimensions (later five) of culture
  14. 14. Manifestations of culture Symbols Heroes Rituals Values --Practices--
  15. 15. Dimensions of culture · Power Distance · Individualism versus Collectivism · Femininity versus Masculinity · Uncertainty Avoidance and · Long-Term Orientation. »Hofstede (1980, 1991)
  16. 16. The concept of power distance 1. The mere exercise of power will give satisfaction 2. The more powerful individual will strive to maintain or to increase the power distance to the less powerful person 3. The greater this distance from the less powerful person, the stronger the striving to increase it 4. Individuals will strive to reduce the power distance between themselves and the more powerful person 5. The smaller this distance from the more powerful person, the stronger the tendency to reduce it 6. The downward tendencies of the powerful to maintain the power distance, and the upward power distance reduction of the less powerful, reinforce each other. Mulder (1977)
  17. 17. Core of culture is formed by values (Hofstede 1991) - and norms (Trompenaars 1998) Values, defined by each culture in terms of “good” and “bad” (for example: dirty vs clean, ugly vs beautiful, unnatural vs natural, abnormal vs normal, irrational vs rational ) Norms, defined as the mutual sense a group has of what is “right”and what is “wrong” (example laws and rules, social control) Trompenaars (1998) argues that a culture is relatively stable when norms reflect the values of a group. When not, destabilising tension occurs (Argentina).
  18. 18. Kluckhohn and Strodtbeck (1961) findings fundamental for Hall, Hofstede & Trompenaars) Five universal problems to mankind, where all societies are aware of all possible kinds of solutions, but prefer them in different order: – What is the relationship of the individual to others? (relational orientation) – What is the temporal focus of human life? (time orientation) – What is the modality of human activity? (activity orientation) – What is a human being's relation to nature? (Man-nature orientation) – What is the character of innate human nature? (human nature orientation) – (Kluckhohn and Strodtbeck (1961)
  19. 19. Interesting argument by Hall (1976) ………the natural act of thinking is greatly modified by culture. Western man uses only a small fraction of his mental capabilities; there are many different and legitimate ways of thinking; we in the West value one of these ways above all other - the one we call "logic", a linear system that has been with us since Socrates. Western man sees his system of logic as synonymous with the truth. For him it is the only road to reality.
  20. 20. CULTURES AND ORGANISATIONS “software of the mind” (Geert Hofstede) More equal than others Inequality in society I, we and they He, she and (s) he What is different, is dangerous Confucian dynamism – and growth Conclusions
  21. 21. Cultural Differences between South America and the Netherlands….. Power distance Indivi- dualism Masculinity Uncertainty avoidance Low High Low High Low High Low High Arg UruBrazNet ArgUruBraz Net ArgUru BrazNet Arg UruBrazNet Argentina UruguayBrazil Netherlands
  22. 22. Implications for the organisational structure …. South America: a pyramid Netherlands: a network
  23. 23. More equal than others General norm, family, school and workplace SMALL POWER DIFFERENCE Inequalities among people should be minimized Parents treat children as equals – and vice-versa Teachers expect initiatives from students in class Students treat teachers as equals Hierarchy in org. means an inequality of roles, only for convenience Decentralization is popular Narrow salary range between top and bottom org Subordinates expect to be consulted The ideal boss is a resourceful democrat Privileges and status symbols are frowned upon (Holland’s prime minister going by bike, and camping) LARGE POWER DIFFERENCE Inequalities among people are both expected and desired Parents teach children obedience Children treat parents with respect Teachers are expected to take all initiatives in class Students treat teachers with respect Hierarchy in org reflects the existing inequality between higher ups and lower downs Centralization is popular Wide salary range between top and bottom org Subordinates expect to be told what to do The ideal boss is an autocrat or good father Privileges and status symbols for managers are both expected and popular (Menem, Berlusconi, Sarkozy)
  24. 24. RESULTADOS DEL ENCUESTA USTEDES; –PDI -6 –IDV 69 –MAS 65 –UIA 61 –LTO 39 PDI • Netherlands 38 • USA 40 • Hong Kong 68 • ARGENTINA 49 IDV • Netherlands 80 • USA 91 • Hong Kong 25 • ARGENTINA 46 MAS • Netherlands 14 • USA 62 • Hong Kong 57 • ARGENTINA 56 UIA • Netherlands 53 • USA 46 • Hong Kong 29 • ARGENTINA 86 LTO • Netherlands 44 • USA 29 • Hong Kong 96 • ARGENTINA NA
  25. 25. More equal than others In politics and ideas SMALL POWER DIFFERENCE The use of power should be legitimate and is subject to criteria of good and evil Skills, wealth, power and status need not go together The middle class is large All should have equal rights Powerful people try to look less powerful than they are Power is based on formal position, expertise and ability to give rewards Changing political system through evolution Use of violence in domestic politics is rare Political spectrum shows strong centre and weak right and left wings Small income differentials in society (progressive tax system) Management theories focus on role of employees LARGE POWER DIFFERENCE Might prevails of right: whoever holds the power is right and good Skills, wealth, power and status should go together (Berlusconi) The middle class is small The powerful have privileges Powerful people try to look as impressive as possible Power is based on family or friends, charisma, and ability to use force The way to change political system is by changing people at the top (revolution) Domestic political conflicts frequently lead to violence Political spectrum, of allowed to be manifested, shows weak centre and strong wings Large income differentials in society, further increased by tax system Management theories focus on managers (and leaders)
  26. 26. I, WE AND THEY General norms, family, school and workplace Collectivist People are born into extended families or other in-groups which continue to protect them in exchange for loyalty Identity is based on social network to which one belongs Children learn to think in terms of “we” Harmony should always be maintained and direct confrontations avoided High context communication (Hall) Purpose of education is learning how to do Diplomas provide entry to higher status groups Relationship employer-employee is perceived in moral terms, like a family link Hiring and promotion decisions take employees in-group into account Management is Management of groups Relationship prevail over task Individualist Everyone grows up to look after him- herself and his/her immediate (nuclear) family only Identity is based on individual Children learn to think in terms of “I” Speaking one’s mind is a characteristic of an honest person Low context communication (Standard operating procedures) Purpose of education is learning how to learn Diplomas increase economic worth and/or self-respect Relationship employer-employee is a contract supposed to be based on mutual benefits Hiring and promotion decisions are supposed to be based on skills and rules only Management is management of individuals Task prevails over relationship
  27. 27. I, WE AND THEY Politics and Ideas Collectivist Collective interests prevails over individual interest Private life is invaded by groups Opinions are predetermined by group membership Laws and rights differ by group Low per capita GDP Dominant role of the state in economic system Economy based on collective interests Political power exercised by interest groups Press controlled by the state Imported economic theories largely irrelevant because unable to deal with collective and particularistic interests Ideologies of equality prevail over ideologies of individual freedom Harmony and consensus in society are ultimate goals Individualist Individual interest prevail over collectivist interests Everyone has a right to privacy Everyone is expected to have a private opinion Laws and rights are supposed to be the same for all High per capita GDP Restrained role of the state in the economic system Economy based on individual interests Political power exercised by voters Press freedom Native economic theories based on pursuit of individual self-interests Ideologies of individual freedom prevail over ideologies of equality Self-actualisation by every individual is ultimate goal
  28. 28. HE, SHE AND (S) HE General norms, family, school and workplace Feminine DOMINANT VALUES IN SOCIETY ARE CARING FOR OTHERS AND PRESENVATION PEOPLE AND WARM RELATIONSHIPS ARE IMPORTANT EVERYBODY IS SUPPOSE DTO BE MODEST BOTH MEN AND WOMEN ARE ALLOWED TO BE TENDER AND TO BE CONCERNED WITH RELATIONSHIPS IN FAMILY BOTH FATHERS AND MOTHERS DEAL WITH FACTS AND FEELINGS BOTH BOYS AND GIRLS ARE ALLOWED TO CRY, BUT NEITHER SHOULD FIGHT SYMPATHY FOR THE WEAK AVERAGE STUDENT IS THE NORM FAILING IN SCHOOL IS A MINOR NORM FRIENDLINESS IN TEACHERS APPRECIATED BOYS AND GIRLS STUDY THE SAME SUBJECTS WORK IN ORDER TO LIVE MANAGERS USE INTUITION AND STRIVE FOR CONSENSUS RESOLUTION OF CONFLICTS BY COMPROMISE Masculine DOMINANT VALUES IN SOCIAETY ARE MATERIAL SUCCESSS AND PROGRESS MONEY AND THINGS ARE IMPORTANT MEN ARE SUPPOSED TO BE ASSERTIVE, AMBITOUS AND TOUGH WOMAN ARE SUPPOSED TO BE TENDER AND TO TAKE CASE OF RELATIONSHIPS IN THE FAMILY, FATHERS DEAL WITH FACTS AND MOTHERS WITH FEELINGS GIRLS CRY, BOYS DON’T: BOYS SHOULD FIGHT BACK WHEN ATTACKED, GIRLS SHOULDN’T FIGHT SYMPATHY FOR THE STRONG BEST STUDENT IS THE NORM FAILING IN SCHOOL IS A DISASTER BRILLIANCE IN TEACHERS APPRECIATED BOYS AND GIRLS STUDY DIFFERENT SUBJECTS LIVE IN ORDER TO WORK MANAGERS EXPECTED TO BE DECISIVE AND ASSERTIVE RESOLUTION OF CONFLICTS BY FIGHTING THEM OUT
  29. 29. HE, SHE AND (S) HE In politics and ideas Feminine Welfare society ideal The needy should be helped Permissive society Small and slow are beautiful Preservation of the environment high priority Government spends large portion of budget to development aid Government spends small portion of budget on defence International conflicts to be resolved through diplomacy and dialogue Large number of women in elected political positions Women liberalization means that mean and women should take equal shares both at home and at work (Sweden) Masculine Performance society ideal The strong should be supported Corrective society Big and fast are beautiful Maintenance of economic growth should have highest priority Government spends small portion of budget to development aid Government spends large part to defence International conflicts to be resolved by a show of strengths or by fighting Relatively small number of women in elected political positions Women liberalization means that women will be admitted to positions hitherto only occupied by men
  30. 30. WHAT IS DIFFERENT IS DANGEROUS General norms, family, school and workplace Weak uncertainty avoidance: Uncertainty is a normal feature of life and each day is accepted as it comes Los stress: subjective feeling of well- being Aggression and emotions should not be shown Comfortable in ambiguous situations and with unfamiliar risks Lenient rules for children on what is dirty and taboo What is different, is curious Students comfortable with open-ended learning situations Teachers may say; “I don’t know” There should not be more riles than necessary Time is a framework of orientation Comfortable feeling when lazy; hard- working only when necessary Precision and punctuality have to be learned Motivation by achievement and esteem Strong uncertainty avoidance The uncertainty inherent in llife is felt as a continuous threat which must be fought High stress: subjective feeling of anxiety Aggression and emotions may at proper times and places be ventilated Acceptance of familiar risks: fear of unfamiliar risks Tight rules for children on what is dirty and taboo What is different is dangerous Students comfortable in structured learning situations and concerned with “the right answer” Teachers supposed to have all the answers Emotional need for rules, even if these will never work Time is money Emotional need to be busy; inner urge to work hard Precision and punctuality come naturally Motivation by security and esteem.
  31. 31. WHAT IS DIFFERENT IS DANGEROUS In politics and Ideas Weak uncertainty avoidance: Few and general laws and rules If rules cannot be respected, they should be changed Citizen competence versus authorities Citizen protest acceptable Citizen positive towards institutions Civil servants positive towards political process Tolerance, moderation Positive towards young people Regionalism, internationalism, attempts to integrate minorities Belief in generalists and common sense Many nurses, few doctors One group’s truth should not be imposed on others Humans rights: nobody should be persecuted for their beliefs Science: relativism and empiricism Scientific opponents can be personal friends Strong uncertainty avoidance Many and precise laws and rules If rules cannot be respected, we are sinners and should repent Citizen incompetence versus authority Citizen protest should be repressed Citizen negative towards institutions Civil servant negative towards political process Conservatism, extremism, law and order Negative attitudes towards young Nationalism, repression of minorities Belief in experts and specialisation Many doctors, few nurses There is only one truth and we have it Religious, political and ideological fundamentalism and intolerance (K) Tendency towards grand theories Scientific opponents cannot be personal friends
  32. 32. Confucian dynamism – and growth Confucianism is not a religion, but a set of pragmatic rules for daily life derived from what Confucius saw as the lessons of Chinese History. Their principles being: – The stability of society is based on unequal relationships between people: ruler—subject, father-son, older brother – younger brother, husband – wife, senior friend – junior friend – The family is the prototype of all social organizations; all members to a group (not losing face, or dignity) – Virtuous behaviour towards others consists of not treating others as one would not like to be treated oneself – Virtue with regard to one’ tasks in life consists of trying to acquire skills and education, working hard, not spending more than necessary, being patient and persevering.
  33. 33. Confucian dynamism – and growth Short term orientation: Respect for traditions Respect for social and status obligations regardless of costs Social pressure to keep up with the Joneses, even if it means overspending Small savings quote, little money for investment Quick results expected Concern with face Concern with possession the truth Long term orientation Adaptation of traditions to a modern context Respect for social and status obligations, within limits Thrift, being sparing with resources Large savings quote, funds available for investment Perseverance towards long term results Willingness to sub-ordinate oneself for a purpose Concern with respecting the demands of virtue
  34. 34. DISTRIBUTION OF THE BRAIN – and the problem of the President Left Brain Right Brain Logical Random Sequential Intuitive Rational Holistic Analytical Synthesizing Objective Subjective Looks at parts Looks at wholes
  35. 35. FUKUYAMA- LOW and HIGH trust societies …..Later on I came across a notion by Fukuyama about trust[1]; he proposes that it is the social capital of a given country (or even area within a country) that defines how its economy functions. Along the way, he examines countries around the globe, but focusing primarily on China and Italy, France and Korea (as low-trust societies), and Japan, Germany and the United States (as high-trust societies). Economists express these differences in transaction costs: in high-trust societies these costs are low, given that people do what is expected of them, where in low-trust societies these costs are high, given that one needs to control what people do. There are some countries in Latin America where Presidents do not empower (or trust) neither ministers, institutions nor businesses and instead want to be in control themselves of practically everything, they sometimes even want to control the price of toilet paper. [1] Trust: The Social Virtues and The Creation of Prosperity by Francis Fukuyama
  36. 36. DIFERENCIAS Y FORMAS DE LIDERASGO – LA PRACTICA “Femininity” versus “Masculinity” Dilemas y “dualities” Normas y valores
  37. 37. ?
  38. 38. LAS DOS MUJERES MAS PODEROSAS DEL MUNDO
  39. 39. Alemania – “machismo”

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