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My Best Cultural ModelsBusiness Culture II

Guillherme Nunes Elodie Delmas Janaina Patricio Fereira Alexander Cherem Morgane

Grange

13/12/2010

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Content

Preface ........................................................................................................................................ 0

1 Values System ..................................................................................................................... 1

1.1 Hofstedes value dimensions ....................................................................................... 1

1.2 Global research project ............................................................................................... 2

1.3 Relevance in a cultural perspective ............................................................................. 3

2 Motivations at works .......................................................................................................... 5

2.1 Maslows hierarchy of needs ....................................................................................... 5

2.2 Herzbergs two dimensions theory............................................................................ 6

2.3 Relevance in a Cultural Perspective ............................................................................ 8

3 Negotiation practices across culture .................................................................................. 9

3.1 Marketing Approach ................................................................................................... 9

3.2 Management Approach ............................................................................................. 10

3.3 Relevance in a cultural perspective .......................................................................... 10

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Preface

Since centuries, philosophes, economists or sociologists set up model and theories in order to try to

explain human behaviors.

In the business world understand human behavior is a main concern. Indeed if you understand

customers you know how to answer to their needs and desires and so how to make more profit. If

you understand your staff you know how to make them work in the most efficient way

To understand people is a thorny issue but is even more difficult if you take account culture. The way

that people acting depends of the culture and the subculture where they come from.

With the globalization, cultural aspect cant be avoided. All around the world thousands of different

cultures interacts and to make business you have to know how to handle with it.

In this paper we focus on three areas linked with culture: values systems, Motivations at work and

negotiation practices. For each one we are trying to show which model or theory could the best

explained how its working in a cultural perspective.

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1 Values SystemIn this model, we are goi

(2004), which prove that culture

those differences. Hofstede wasbetween values systems are. Th

1.1 Hofstedes value di

The Dutch professor Ge

started his theory form the findi

working in another country, you

what you should do according to

mistakes.1

During his researches (from 196

influence a culture. Thanks to th

should refer to this study, to kno

of the results of your country, b

you dont see a collectivist coun

culture. In this way you can avoi

1

http://www.geert-hofstede.com/2http://corpculture.ru/content/org

measurement-and-change

ng to compare two theories, from Hoftede (197

has effects on management, and that its really

the precursor; he tried to explain what the mainGlobe project deepened and developed the to

ensions

rt Hofstede studied the cultural differences to d

g that when you try to deal with foreign people

face some problems. In those cases, if we base

the expected behaviours of our culture, we will

to 1973), Hofstede tried to emphasize the mai

at, when you have contacts with one of the cou

w better your interlocutor. A good thing to do a

cause it is often difficult compare themselves w

ry, like China, you may not know that you belon

mistakes.

2

anizational-culture-slassification-schemes-elements-

1

) and from House

useful to understand

differencesic.

o business. He

, or when your start

ur decisions only on

probably make

factors which

tries studied, you

lso is to have a look

ith the others. Until

g to an individualist

imensions-

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The first dimension is the power distance. It shows how far people accept and expect an unequal

power distribution in organizations and institutions. For example, in Sweden, leaders in a company

should be democratic, because that the cultural behavior required. On the contrary, French people

are not used to having a flat hierarchy. They often cant imagine going to talk directly to the CEO if

they are a simple employee.

Then, there is uncertainly avoidance, which measures how well people feel with uncertainty and

avoidance. For example, in Greece, people tolerate better unstructured situations, other opinions or

short term decisions than Danish people.

The masculinity refers to the distribution of roles between the genders which is another

fundamental issue for any society to which a range of solutions are found. The IBM studies revealed

that (a) women's values differ less among societies than men's values; (b) men's values from one

country to another contain a dimension from very assertive and competitive and maximally different

from women's values on the one side, to modest and caring and similar to women's values on the

other.3 Sweden is often quoted as a country with a low masculinity level, unlike Italy.

Finally, Hofstede found criteria to explain differences between countries in terms of integration to

groups. Some societies, like the Japanese, people take care about the other members of their group,

like their family or workmate, and they are proud to belong to those groups. In the other side, the

United States tolerate and even encourage the individual uniqueness. Ties between people are less

strong, the value loyalty less present.4

We can also add the long/short- term orientation developed by Chinese searchers. We distinguish

countries where people focus on the future (investment, long-term goals ) and the other who pay

more attention to next months.

1.2 Global research projectGLOBAL is an acronym for Global Leadership and Organizational Behavior Effectiveness. This

development has been initiated by Robert J House5. In 1991, he started thinking about a project

which could link culture, organization and leadership. He asked a grant and really started this project

in 1993.6

According to the review Culture, Leadership, and Organizations7, the goal of this study was to

conceptualize, operationalize, test, and validate a cross-level integrated theory of the relationship

between culture and societal, organizational, and leadership effectiveness.

In this case also, the aim is to give managers some clues to help them in their work. They must know

that culture influences everyones behaviour, and how managing it.

3http://www.geert-hofstede.com/

4 Culture in international business , Thomas Hegessons course, 1996

5http://www.thunderbird.edu/sites/globe/

6

http://www.grovewell.com/pub-GLOBE-intro.html7Review: Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, 2004, Robert J House, Paul J

Hanges, Mansour Javidan, Peter W Dorfman, Vipin Gupta.

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To reach it, the research team selected 62 cultures business-oriented, in 10 societal clusters. For

example, in the Middle East area, we can find five countries.

They also determined nine Cultural dimensions, which are a kind of unit of measurement:8

Performance Orientation Uncertainty Avoidance Humane Orientation

Institutional Collectivism In-Group Collectivism Assertiveness

Gender Egalitarianism Future Orientation Power Distance

We can explain just four of them, because the others are similar to those of Hofstede.

Assertiveness It measures the level of expectation to be confronted to people

modest and tender, or at the opposite competitive and in a

confrontational model.

Future dimension How much people are planning and investing on the future, if we

act today to prepare tomorrow.

Performance orientation The level of importance assigned to notions like performance or

excellence.

Human orientation If the culture emphasis human behaviours like fairness, altruism

and generosity.

1.3 Relevance in a cultural perspectiveThe first difference between those two projects is the goal of those studies. Hofstede made a

primary research to recognize and understand value dimensions. He was the precursor of this idea of

comparing cultures with those criteria in a business way. The Globe project seemed to not only focus

more on how improving this study, but also how making it more hopeful for leaders. From a business

student so probably a future manager- point of view, the globe project looks simpler to use.

Hofstede did his study and researches from the sixties, so all the data used for it are outdated, more

when some specialists talk about a cultural globalization and in the business context, area that is

subject to shift. Globe was finished less than ten years ago, so seem to be more adapted to our

current world.

8International management, Managing across borders and cultures, by Helen Deresky, Pearson international

edition, p98 to 100

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Another difference is about the methods used. Hofstede just focused on one company, the only

changing factor was the countries. It could be good because his goal was just to study differences

between countries, not between firms. However, this big company has probably the same kind of

criteria to hire people, and the company culture can influence people, as a result they are not

necessary representative of their country. The Globe project used less people (18 000, comparing

with 116 000 for the first), but from different companies, and from more countries. This way of

leading the survey gives probably more trustable.

Hofstede distinguished five criteria, against nine for the Globe project. If we want to be really

prcised, and really be able to act in the better way in any circumstances, the second study is more

adapted.

It is difficult to find the good way to pinpoint on the best criteria to describe cultures.

Hofstede made a very famous study, which give us some ideas about different countries. But

nowadays, it seems that this theory is outdated and not complete.With Globe, we have a more precise project. Explaining a culture and its consequences is

complicated; we cant be satisfied by a simple survey which leads to simple results. Whats more, this

study is more useful for us.

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2 Motivations at worksAccording to figures and surveys, companies with the higher level of efficiency and

competitiveness are places where people are well motivated. Indeed, the most an employee is

motivated, the most his job is well done. Therefore managers try to answer a thorny issue: how toachieve workers motivation?

Motivation is the strength which leads us to achieve an objective. Understand the needs of people

and fulfill them is one way to achieve motivation at work. A lot of theorists argue about the nature

and how to satisfy peoples needs.

Their models are useful and allow us to understand and categorize them. But we have to keep in

mind that needs are not the same for everybody according to their own values and desires. These are

directly linked with culture and subculture of each one.

Above a simple description of needs, the challenge is to find which theory deals the best with cultural

influences.

For doing this were going to depict and compare two major theories and their extensions: Maslows

hierarchy of needs and Herzbergs two dimensions theory.

2.1 Maslows hierarchy of needsAbraham Harold Maslow (1908-1970) is well known in the work psychology area for his work

on motivation. Through several studies and analysis he realized the complexity of Human needs. In

1943 he published A Theory of Human Motivation9

which describes his theory of a hierarchy of

needs. According to this, an individual can only reach the happiness if he is satisfied on each area ofhis life (physiology, love).

To make it easier to use, the Maslows hierarchy is most of the time represented as a pyramid of five

levels. As its shown in figure 1, at the bottom we can find the physiological needs which are the

fundamental ones such as the needs of eat or drink. Then there is the need of safety namely being

protected from any kind of dangers (home, stability).

Then there are the high needs. First the social needs which refer to the need of love, friendship and

being accepted by others. Once this level fulfill, people want to be someone face to other people

which means having a status in society and be respected. The highest level is the need of Self-

actualization or the need for being someone also in your own mind10.

9A Theory of Human Motivation, Psychological Review, 50, 370-396 (1943), A. H. Maslow

10Culture in International Business, Thomas Hegelsson Motivations of individual, p.70

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Figure 1 Maslow's Hierarchy of Needs11

According to Maslow when you satisfy a need others from a higher level appear. The individual is not

an animal; he needs more than just basic needs.

In developed countries, superior needs have a main place. Indeed, thanks to the high level of income,

most of the people dont have to worry about basic needs. Consequently, managers have to focus on

superior needs to improve motivation at work.

2.2 Herzbergs two dimensions theoryFrederick Irving Herzberg (1923-2000) was an American psychologist. Its in 1959 with The

motivation at work that its theory born. Thanks to articles such as One more time: How do you

motivate employees12

and through conferences it became famous all around the world.

His theory is rooted on an empirical survey. Herzberg led a motivation study on 200 encounters and

engineers and concluded that two factors influence human motivations at work.

The first ones, the hygiene factors, are extrinsic that means linked with the environment. They are

the working conditions, the salary, the company policy or the job security. According to Herzberg

they dont motivate people. But if they are not satisfied, they conducted to dissatisfaction. They

are essential; its the first step to improve motivation in the work place.

Then we can find the Motivation Factors. They are not indispensable but they are a powerful toolto stimulate workers. These factors are intrinsic. They are the meaning of work, the will of

achievement, the responsibilities given or the need of recognition.

The main advance of this theory comparing to classical ones is that human being have two kinds of

needs. Some are animals needs, instinctive, they dont stimulate people but they are a pre-

requisite. If they are not achieved they strike employees motivation and so on efficiency. Other

factors are human ones. They are a booster for individuals.

11http://easypass.co.za/easypass-blog-page/chapter-1-the-business-world-and-business-management

12One more time: How do you motivate employees, Harvard Business Review (1968), F.I. Herzberg

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Figure 2 Herzberg's two models theory13

Both Maslow and Herzberg use a hierarchical scale of needs. As shown in the figure 3, we can

easily compare Maslows safety and physiological needs with Herzbergs hygiene factors. And both

use the same criteria for motivation factors and esteem and self-actualization needs.

Figure 3 Comparison of Maslow and Herzbergs theories14

However, we can find divergence point about the way to reach to the top or the nature of the lower

needs.

13http://www.flatworldknowledge.com/node/28089#web-28089

14https://reader009.{domain}/reader009/html5/0519/5affacbea217c/5affacc3bad76.jpg

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2.3 Relevance in a Cultural PerspectiveBoth models are full of great schemas and ideas. They help us to get a deeper and easier

understanding of how motivation at work is linked to the satisfaction of needs. But needs are most of

the time influenced by culture.

So which model is the best one to use in a cultural perspective?

First of all we have to keep in mind that none is perfect. Indeed both theorists state the manner to

satisfy people. But these theories are deeply related to the environment of their authers, namely US

culture. If we referred to Hofstede15

, Maslow and Herzberg solutions just answer to a specific

context: strong masculinity and individualist countries.

In fact values and norms change according to the culture. They might have other criteria or a

different perception of their importance. Another hierarchy of needs might be better to depict

another culture. Moreover, needs might be achieved by different ways. In other words, we can say

that whereas the list of needs described by Maslow are themselves fairly consistent across culture,

their rank ordering varies, as does the way in which each need is met16

.

For instance, according to a study conducted by Elenkov in Russia, Russian managers considered that

security and self-actualization are more basic than belongingness needs.17

Similarly, eastern country

such as Japan, are more concerned by the group than themselves (the wa or group harmony

principle18

). Consequently social needs are higher than status needs.

Maslow states that to advance to the next stage the lower stage must be fully completed. That

means for example, you cant reach self-actualization if your status needs is not achieved. For

Herzberg only one stage has to be completed to achieve motivation: hygiene needs. Hygiene factors

aggregate all essential needs. According to the country, these needs might be achieve by different

ways. For instance the safety need could be to have a good insurance in USA which is not so

important for a Tahitian worker. However this is more linked to the degree of economic

development of the country than its culture. Indeed one century ago US workers should have the

same claims than current Tahitian workers. This lead us to say that whatever the culture, hygiene

factors are the same and need to be completed before the higher needs.

According to this Herzberg theory is more flexible and seems to be the one to use in a

cultural perspective. Once hygiene factors which the hierarchy is common to everyone are achieved,

we can focus on the upper step. Motivations factors are more or less the same for all human being.

Only their rank change. Since there is not well established order for them in the Herzberg model is

the best one to handle.

15 Marketing across culture, 5th edition, J.-C. Usunier and J. A. Lee - The cultural relativity of management

theory, p.4616

Marketing across culture, 5th edition, J.-C. Usunier and J. A. Lee culture and consumer behavior, p.7117

Can American management concept work in Russia?, California Management Revue n4 (1998), D.S.Elenkov18Managerial Principles in Japan, China ,and Korea, Business Horizons (1989), J. P. Alston

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3 Negotiation practices across cultureA lot of theories depict the best way of negotiating across borders. Here we focus on two

approaches: marketing method and management method. By comparing them we are trying to

choose which is the more reliable in a cultural perspective.

3.1 Marketing Approach 19+ containing more detailed approach in

negotiating with cultural aspects

- the negotiation process isnt clear, in

other words, there is no beginning,

middle and end

+ emphasizes in building trust andcredibility

+ considering behavioral predispositions

of the parties

+ negotiators aspects to construct of

credibility

+ considering the time-based

misunderstanding

+ the different types to finalize the

agreement (write contract or verbal )

+ better orientation to differences

outcome

+ integrative negotiation strategy and

possibilities towards to its application

+ more complete description about

Communication

19Intercultural marketing negotiations: people, trust and tasks Usinier, Jean-Claude 4th edition 2005

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3.2 Management Approach20+ makes clear the negotiation process

from start to finish

-a superficial approach about some of the

important negotiation themes;

+ a perspective in what to expect when a

negotiation with another country its

done

- generalist about different cultures and

therefore end up with stereotypes (e.g. all

America thinks of a way, doesnt implies

that there are differences between them)

+ examples in how to behave when a

negotiation its done

- Doesnt approach aspects about the

negotiator (e.g. hierarchy, age, sex and so

forth);

+ deepens on trading with China

+- some comparisons between different cultures

+ discusses negotiations over the Internet

with examples

+ addresses management of conflicts;

3.3 Relevance in a cultural perspectiveWe believe that the marketing approach presented above is more complete. The only

negative point is that this model does not worry about process which helps people to use the model

with a clearer perception of your application within the negotiation. A clear and objective description

of a process contributes greatly to the implementation of actions that have beginning, middle and

end, such as the negotiation.

With the points raised in the book "Marketing across Cultures" it would be easy to sort them by

stages within the negotiation. It ensures a simple process which would facilitate the use of the model

and spread better this knowledge.

The book explains that negotiation is more than a legal matter and for business is also based in the

human and social interactions. Thus it relates to cultural aspects in an international market.

The author started from an important variable which affects all cultures during the negotiation: the

trust. Only after it discussed about culturally coded signs. The interaction between business people is

difficult because of their different cultural, human and social backgrounds and empathy is not

enough to avoid misunderstanding.

20international management cross-cultural negotiation - Deresky, Helen 5th edition 2006

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The book defines trust and shows some elements to follow. Trust has a lot of definition so its very

difficult to discuss about the equality element to base the negotiation if it does not have the

coherence about what is trust. Since the book does not have of power to take the definition of

humanity, it defines important aspects in this context to follow:

1. Trust is reliance on and confidence in people, words and things. 2. Trust is inseparable from

distrust: nice obvious showing of distrust is detrimental to the establishment of trust, every culture

has to deal with the paradox of their inseparability. 3. Trust is about sharing common faith, beliefs,

possibility education or group inseparability. 4. Trust is directed to the future and to common

achievements, even though this does not deny the value of the lessons of the past

A stages model in the process of relational exchange is used for helping to understand the building

trust. They are (1) awareness, (2) exploration, (3) expansion, (4) commitment and (5) dissolution.

This means that the negotiators tend to adapt their behavior to each culture. Thus, after the book

showed some points building trust in international business negotiations.

One important aspect that was addressed is to consider behavioral predispositions of the parties.Without this approach its impossible to start a negotiation with people from their own country or

abroad. The first step to a successful negotiation is to have credibility, self-esteem and show respect

to the parties involved. As a demonstration of humility and candor can sometimes be mistaken for

weakness and inexperience, to know how to build this credibility is the key. In this way is of utmost

importance to analyze the cultural issue of the parties:

How to go to a business meeting without knowing what time you should go? This is a big problem

when it comes to negotiation with different cultures, 9 hours does not always mean exactly 9, may

be around 9 or else appear any time in the morning.

In several places in the world is not always something that is formalized in a contract is followed. Or

even when it does not need to be written, sometimes an oral contract is valid more than a written

one. This may occurs mainly in cultures that require a good relationship (showing a lot of trust

between the parties).

The best way to resolve problems is through communication.

If negotiators want to promote an integrative approach, it is important for them to focus on sharing

and seeking information. Communication has been shown to generate greater cooperation even

tendencies to self-interest (Wade-Benzoni et al., 2002). The language used for negotiation has its

importance: the myth that any language can be translated into another language often causes

English to be chosen as a central negotiation language and to add interpreters when proficiency is

too low on one side. (USINER et al., 2005)

The second book in other turn has also positive points, between them, makes clear the

negotiation process from start to finish. The book defines the negotiation process in five main stages:

1) Preparation, 2) relationship building, 3) Exchanging Task-related information, 4) persuasion and 5)

and concession agreement.

In the first stage he considers an important preparation before starting business with other

countries, in order to easily find differences in culture, language and environment, these variablesneed to be carefully studied before launching a negotiation.

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Second Stage: relationship building is the process of getting to know one s contacts in a host country

and building mutual trust before embarking on business discussion and transactions. This process has

different importance depending on the country.

Third stage is set by the moment that each side typically makes a presentation and states its position.

In this case the book cites that there may be differences in how it is handled in different countries,some variables that the book cites is the protocol, time of meeting in each country, subject matter

and so forth. ...

In the fourth stage the hard bargaining starts. This is the stage where each party tries to persuade

the other to their advantage. The book shows a comparison between the negotiating tactics of

Japanese, Americans and Brazilians taking into account some variables.

The fifth stage: concessions and agreement is the final part of the negotiation. This step is different in

many cultures, for example the Japanese consider an insult to formulate formal contracts, as the

Russians to the formal contract is required.

The book's a good perspective in what to expect when a negotiation with another culture it's done.

He cites some cultural data that can be crucial when dealing with other countries. But it treats these

data superficially and does not comment much about them which is an unfavorable aspect compared

to the first book.

We know that when we negotiate with some countries it is necessary to understand their culture,

what the book does not mention is that in certain countries dealers have some different values as to

what to expect from the negotiator, for example, about the approach and negotiator aspects (e.g.

hierarchy, acts, and so forth).

Another negative aspect is that the book is very general about behavior of people in a given region.

Example of this is that it describes the behavior of Latin America, but there are different countries in

Latin America and each has a different behavior, so if the dealer does not know the behavior of these

countries that he will negotiate with it has a great risk of failing.

Another point described in the book is the facilities that the Internet provides for negotiations. The

Web Application, it may provide support for various phases and dimensions, such as "multiple issue,

multiple party Transactions of business buy-sell nature, international dispute resolution (business

disputes, political disputes), internal company communications and Negotiations, among others.

The book shows us how to lead with situations of managing conflict. One contemporary tool in the

negotiation making that helps to avoid circumstances of conflict is the online B2B marketplace;

exchanges where buyers and sellers negotiate prices speed up the decision-making and transactions

process.

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References

Web references

http://www.stephanehaefliger.com/campus/biblio/003/Maslow_et_Herzberg/meheltm.pdf

http://lirhe.univ-tlse1.fr/publications/Autres/sup_gond_aes15.pdf

http://wiki.answers.com/Q/Compare_and_contrast_maslow's_hierarchy_of_needs_theory_with_herzberg's_t

wo_factor_theory

http://www.slideshare.net/yo9esh/motivation-theory-presentation

http://www.reseauconsultants.be/01/index.php?option=com_content&view=article&id=102&Itemid=118

http://fr.wikipedia.org/wiki/Motivation#La_th.C3.A9orie_des_deux_facteurs_d.27Herzberg_.281959.29

http://www.accel-team.com/motivation/index.html

http://iew3.technion.ac.il/~merez/papers/frontwm.pdf

http://www.geert-hofstede.com/

http://corpculture.ru/content/organizational-culture-slassification-schemes-elements-dimensions-

measurement-and-change

http://www.thunderbird.edu/sites/globe/

http://www.grovewell.com/pub-GLOBE-intro.html

http://easypass.co.za/easypass-blog-page/chapter-1-the-business-world-and-business-management

http://www.flatworldknowledge.com/node/28089#web-28089

https://reader009.{domain}/reader009/html5/0519/5affacbea217c/5affacc83efea.jpg

Written references

International management, Managing across borders and cultures, by Helen Deresky, Pearson international

edition

Marketing across culture, 5th edition, J.-C. Usunier and J. A. Lee

Culture in International Business, Thomas Hegelsson , 1996

Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, 2004, Robert J House, Paul J Hanges,

Mansour Javidan, Peter W Dorfman, Vipin Gupta.

A Theory of Human Motivation, Psychological Review, 50, 370-396 (1943), A. H. Maslow

One more time: How do you motivate employees, Harvard Business Review (1968), F.I. Herzberg

Can American management concept work in Russia?, California Management Revue n4 (1998), D.S.Elenkov

Managerial Principles in Japan, China ,and Korea, Business Horizons (1989), J. P. Alston