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EASTERN VS. WESTERN MANAGEMENT
!

C U LT U R A L D I V E R S I T Y
AND

LEADERSHIP
CURRENT ISSUES IN MANAGEMENT (MBA 235A)
18 FEBRUARY 2014

!
!
CALIMLIM, VORTRAN
DELA CALZADA, ZOLA
C U LT U R E
Traditions
Ethical
Values

Religion

SOCIETY
Science &
Technology

Politics

Philosophy

Art &
Literature

Age
Education
Social Class
Organization
C U LT U R E : W E S T V S . E A S T

WESTERN

EASTERN
ME

C U LT U R E : W E S T V S . E A S T
W AY O F L I F E

C U LT U R E : W E S T V S . E A S T
SELF-EXPRESSION

C U LT U R E : W E S T V S . E A S T
PUNCTUALITY

C U LT U R E : W E S T V S . E A S T
CONNECTIONS

C U LT U R E : W E S T V S . E A S T
ANGER

C U LT U R E : W E S T V S . E A S T
FA L L I N G I N L I N E

C U LT U R E : W E S T V S . E A S T
PA R T Y

C U LT U R E : W E S T V S . E A S T
T H R E E M E A L S A D AY

C U LT U R E : W E S T V S . E A S T
I N A R E S TA U R A N T

C U LT U R E : W E S T V S . E A S T
ON WEEKENDS

C U LT U R E : W E S T V S . E A S T
TRANSPORT

C U LT U R E : W E S T V S . E A S T
SHOWER TIME

C U LT U R E : W E S T V S . E A S T
W E AT H E R M O O D

C U LT U R E : W E S T V S . E A S T
NEW THINGS

C U LT U R E : W E S T V S . E A S T
T R AV E L

C U LT U R E : W E S T V S . E A S T
S E N I O R ’ S D A I LY L I F E

C U LT U R E : W E S T V S . E A S T
CHILD/BABY

C U LT U R E : W E S T V S . E A S T
BEAUTY

C U LT U R E : W E S T V S . E A S T
CONFRONTING A PROBLEM

C U LT U R E : W E S T V S . E A S T
BOSS

C U LT U R E : W E S T V S . E A S T
C U LT U R A L D I F F E R E N C E S *
West (US / Europe)

East (China / East Asia)

LOGIC Linear (direct associations) Spiral (roundabout)
COMMUNICATION Direct, verbal
IDENTITY Individual, independent
AGREEMENT / Argumentative, verbal
DISAGREEMENT
PUNCTUALITY Start and end on time
RESPECT Success, achievement
BUSINESS RELATIONSHIP Economics come first
DECISION MAKING Distributed, proactive
TIME HORIZON Short term (per quarter)
RISK / SPENDING Risk-takers, spend

Indirect, implied
Group orientated
Hard to say no, nonverbal
Appointments flexible
Seniority, wisdom
Relationship comes first
Manager has final say
Long term (years ahead)
Risk-avoiders, save

*THERE ARE STILL EXCEPTIONS OF COURSE
WESTERN VS. EASTERN
MANAGEMENT STYLE
• high standards,
decisiveness, and
innovation; seeks to inspire
people around a vision;
creates a passion among
them to perform; and does
so by firmly holding on to
core values.

•  instills pride, loyalty,
and collaboration
among organizational
members; and highly
values team
cohesiveness and a
common purpose or
goals.

•  encourages input from
others in decisionmaking and
implementation; and
emphasizes delegation
and equality.

Charismatique

Team

Participative

•  stresses compassion
and generosity; and it is
patient, supportive, and
concerned with the
well-being of others.

•  an independent,
individualistic, and selfcentric approach to
leadership.

•  emphasizes procedural,
status-conscious, and
'face-saving' behaviors;
and focuses on the
safety and security of
the individual and the
group.

Human

Autonomous

Self-protective

T H E 6 S T Y L E S O F L E A D E R S H I P ( G L O B E S T U D Y, 2 0 0 4 )
MANAGEMENT PRINCIPLES
WESTERN

EASTERN

Relationship based on equality, merit
and individual ability

Relationship based on mutual benefit,
duty and group dynamics

Personal and professional contacts are
put in different categories

Contacts are regarded as being friends
once accepted in group

Be firm, stick to principles and deal with
problems immediately

Save 'face', seek harmony and avoid
conflicts at all costs

Opinions determined by debate,
individual thinking and input

Opinions predetermined by leaders
representing individuals in groups

Individual skills and knowledge define
status with personal rewards

Status and patronage where benefits are
shared with group

B R I D G I N G C U LT U R A L D I V I D E S , 2 0 1 3
WEST VS. EAST
MANAGEMENT
Fundamental differences in the East and West make it very
important to understand both management styles
!

Analysis of the different management styles in the East and
West are done on the basis of these concepts and values:
‣ Collectivism vs. Individualism
‣ Vertical Hierarchy vs. Horizontal Hierarchy
‣ Harmony vs. Competition
‣ Long-term vs. Short-term orientation
COLLECTIVISM VS.INDIVIDUALISM
In East-Asian countries group consciousness is very
important:
‣ conveys feeling of one-ness
‣ gives employees a strong sense of belonging
‣ believes that group decisions are more carefully

evaluated and are less risky
In the West, individualism is emphasized:
‣ private life and work are divided
‣ employees are given more responsibility
‣ decisions can be made faster and are not side-tracked

by emotions

WEST VS. EAST
MANAGEMENT
VERTICAL HIERARCHY VS.
H O R I Z O N TA L H I E R A R C H Y

Seniority is a very important concept in East-Asian countries.
‣ emphasizes vertical hierarchy
‣ promotion inside a company is based on how long one has

worked there
‣ results in more responsibility for older employees
!

In contrast to this, equality in the workplace is imperative in
the West.
‣ emphasizes horizontal hierarchy
‣ employees are promoted on merit-basis
‣ younger members of the company are given more responsibility
WEST VS. EAST
MANAGEMENT
!

HARMONY VS. COMPETITION
Harmony is an essential value in East-Asian countries.
‣ a harmonious work place leads to more efficiency and better

results
‣ negotiation skills are of great importance
‣ it is better not to stick out of the group; rather one should try

to maintain harmony at all costs
In the West competition is found everywhere
‣ and becomes a very strong motivational factor
‣ encourages the desire to succeed and thus results in

diligence
‣ possible to have ‘productive’ conflicts, which result in a

favorable outcome

WEST VS. EAST
MANAGEMENT
!

LONG-TERM VS. SHORT-TERM ORIENTATION
East-Asian companies tend to focus on long-term
projects
‣ gives competitive advantage
‣ possible to implement due to employees’ strong sense of

belonging to the company
‣ down-side of inflexibility

Western companies are said to be short-term oriented
‣ short-term projects are seen as time-efficient
‣ as employees constantly change work places, difficult to

implement long-term projects
‣ advantage of being more flexible

WEST VS. EAST
MANAGEMENT
I N T E R C U LT U R A L C O M P E T E N C E
Regional
Experience

Language
Proficiency

Openness
&
Tolerance
MANAGEMENT IN EAST AND WEST
CONCLUSION
Ultimately, the management styles of the East and the
West are complementary, rather than exclusive.
!

Therefore, it is very important to know the similarities and
differences in order to be able to understand and cope
with any situation that might arise in cross-cultural
management.

WEST VS. EAST
MANAGEMENT
“When in Rome, do as the Romans do.”
“ A N AT I O N A L O N E M A K E S N O I S E ,
BUT TOGETHER WE MAKE MUSIC.”
END.
Eastern vs. Western Management

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Eastern vs. Western Management

  • 1. EASTERN VS. WESTERN MANAGEMENT ! C U LT U R A L D I V E R S I T Y AND LEADERSHIP CURRENT ISSUES IN MANAGEMENT (MBA 235A) 18 FEBRUARY 2014 ! ! CALIMLIM, VORTRAN DELA CALZADA, ZOLA
  • 2. C U LT U R E Traditions Ethical Values Religion SOCIETY Science & Technology Politics Philosophy Art & Literature Age Education Social Class Organization
  • 3. C U LT U R E : W E S T V S . E A S T WESTERN EASTERN
  • 4. ME C U LT U R E : W E S T V S . E A S T
  • 5. W AY O F L I F E C U LT U R E : W E S T V S . E A S T
  • 6. SELF-EXPRESSION C U LT U R E : W E S T V S . E A S T
  • 7. PUNCTUALITY C U LT U R E : W E S T V S . E A S T
  • 8. CONNECTIONS C U LT U R E : W E S T V S . E A S T
  • 9. ANGER C U LT U R E : W E S T V S . E A S T
  • 10. FA L L I N G I N L I N E C U LT U R E : W E S T V S . E A S T
  • 11. PA R T Y C U LT U R E : W E S T V S . E A S T
  • 12. T H R E E M E A L S A D AY C U LT U R E : W E S T V S . E A S T
  • 13. I N A R E S TA U R A N T C U LT U R E : W E S T V S . E A S T
  • 14. ON WEEKENDS C U LT U R E : W E S T V S . E A S T
  • 15. TRANSPORT C U LT U R E : W E S T V S . E A S T
  • 16. SHOWER TIME C U LT U R E : W E S T V S . E A S T
  • 17. W E AT H E R M O O D C U LT U R E : W E S T V S . E A S T
  • 18. NEW THINGS C U LT U R E : W E S T V S . E A S T
  • 19. T R AV E L C U LT U R E : W E S T V S . E A S T
  • 20. S E N I O R ’ S D A I LY L I F E C U LT U R E : W E S T V S . E A S T
  • 21. CHILD/BABY C U LT U R E : W E S T V S . E A S T
  • 22. BEAUTY C U LT U R E : W E S T V S . E A S T
  • 23. CONFRONTING A PROBLEM C U LT U R E : W E S T V S . E A S T
  • 24. BOSS C U LT U R E : W E S T V S . E A S T
  • 25. C U LT U R A L D I F F E R E N C E S * West (US / Europe) East (China / East Asia) LOGIC Linear (direct associations) Spiral (roundabout) COMMUNICATION Direct, verbal IDENTITY Individual, independent AGREEMENT / Argumentative, verbal DISAGREEMENT PUNCTUALITY Start and end on time RESPECT Success, achievement BUSINESS RELATIONSHIP Economics come first DECISION MAKING Distributed, proactive TIME HORIZON Short term (per quarter) RISK / SPENDING Risk-takers, spend Indirect, implied Group orientated Hard to say no, nonverbal Appointments flexible Seniority, wisdom Relationship comes first Manager has final say Long term (years ahead) Risk-avoiders, save *THERE ARE STILL EXCEPTIONS OF COURSE
  • 26. WESTERN VS. EASTERN MANAGEMENT STYLE • high standards, decisiveness, and innovation; seeks to inspire people around a vision; creates a passion among them to perform; and does so by firmly holding on to core values. •  instills pride, loyalty, and collaboration among organizational members; and highly values team cohesiveness and a common purpose or goals. •  encourages input from others in decisionmaking and implementation; and emphasizes delegation and equality. Charismatique Team Participative •  stresses compassion and generosity; and it is patient, supportive, and concerned with the well-being of others. •  an independent, individualistic, and selfcentric approach to leadership. •  emphasizes procedural, status-conscious, and 'face-saving' behaviors; and focuses on the safety and security of the individual and the group. Human Autonomous Self-protective T H E 6 S T Y L E S O F L E A D E R S H I P ( G L O B E S T U D Y, 2 0 0 4 )
  • 27. MANAGEMENT PRINCIPLES WESTERN EASTERN Relationship based on equality, merit and individual ability Relationship based on mutual benefit, duty and group dynamics Personal and professional contacts are put in different categories Contacts are regarded as being friends once accepted in group Be firm, stick to principles and deal with problems immediately Save 'face', seek harmony and avoid conflicts at all costs Opinions determined by debate, individual thinking and input Opinions predetermined by leaders representing individuals in groups Individual skills and knowledge define status with personal rewards Status and patronage where benefits are shared with group B R I D G I N G C U LT U R A L D I V I D E S , 2 0 1 3
  • 28. WEST VS. EAST MANAGEMENT Fundamental differences in the East and West make it very important to understand both management styles ! Analysis of the different management styles in the East and West are done on the basis of these concepts and values: ‣ Collectivism vs. Individualism ‣ Vertical Hierarchy vs. Horizontal Hierarchy ‣ Harmony vs. Competition ‣ Long-term vs. Short-term orientation
  • 29. COLLECTIVISM VS.INDIVIDUALISM In East-Asian countries group consciousness is very important: ‣ conveys feeling of one-ness ‣ gives employees a strong sense of belonging ‣ believes that group decisions are more carefully evaluated and are less risky In the West, individualism is emphasized: ‣ private life and work are divided ‣ employees are given more responsibility ‣ decisions can be made faster and are not side-tracked by emotions WEST VS. EAST MANAGEMENT
  • 30. VERTICAL HIERARCHY VS. H O R I Z O N TA L H I E R A R C H Y Seniority is a very important concept in East-Asian countries. ‣ emphasizes vertical hierarchy ‣ promotion inside a company is based on how long one has worked there ‣ results in more responsibility for older employees ! In contrast to this, equality in the workplace is imperative in the West. ‣ emphasizes horizontal hierarchy ‣ employees are promoted on merit-basis ‣ younger members of the company are given more responsibility WEST VS. EAST MANAGEMENT
  • 31. ! HARMONY VS. COMPETITION Harmony is an essential value in East-Asian countries. ‣ a harmonious work place leads to more efficiency and better results ‣ negotiation skills are of great importance ‣ it is better not to stick out of the group; rather one should try to maintain harmony at all costs In the West competition is found everywhere ‣ and becomes a very strong motivational factor ‣ encourages the desire to succeed and thus results in diligence ‣ possible to have ‘productive’ conflicts, which result in a favorable outcome WEST VS. EAST MANAGEMENT
  • 32. ! LONG-TERM VS. SHORT-TERM ORIENTATION East-Asian companies tend to focus on long-term projects ‣ gives competitive advantage ‣ possible to implement due to employees’ strong sense of belonging to the company ‣ down-side of inflexibility Western companies are said to be short-term oriented ‣ short-term projects are seen as time-efficient ‣ as employees constantly change work places, difficult to implement long-term projects ‣ advantage of being more flexible WEST VS. EAST MANAGEMENT
  • 33. I N T E R C U LT U R A L C O M P E T E N C E Regional Experience Language Proficiency Openness & Tolerance
  • 34. MANAGEMENT IN EAST AND WEST CONCLUSION Ultimately, the management styles of the East and the West are complementary, rather than exclusive. ! Therefore, it is very important to know the similarities and differences in order to be able to understand and cope with any situation that might arise in cross-cultural management. WEST VS. EAST MANAGEMENT
  • 35. “When in Rome, do as the Romans do.”
  • 36. “ A N AT I O N A L O N E M A K E S N O I S E , BUT TOGETHER WE MAKE MUSIC.”
  • 37. END.