The Importance of Culture and Values in a Globalized World

1. Culture? Who cares? You should

2. Culture and values matter If … the whole world had the productivity of the Swiss, the consumption habits of the Chinese, the egalitarian instincts of the Swedes and the social discipline of the Japanese, the planet could support many times its current population.

3. Culture and values matter On the other hand, if the world had the productivity of Chad, the consumption habits of the USA, the egalitarian instincts of India, and the social discipline of Argentina, the planet could not support anywhere near its current numbers. Lester Thurow

4. What is culture? The water we swim in? The software of the mind?

5. You live with your parents and that‘s all you know. You grow up thinking whatever they do is “normal “ When you‘re a kid, you don‘t have much variety of experience

6. TWO MEANINGS OF CULTURE The arts, science, education…. The “collective programming of the human mind”

7. Inherited /learned Individual Learned Collective in a group Culture Inherited Common to all mankind Group: e.g. nation, profession, organization, family Programming of the Human Mind

8. Half of the group look at this

10. Half of the group look at this

12. Now tell me: what is this?

14. This is what you saw

16. CULTURE Symbols Heroes Rituals Values

17. TheDutch generally eat a good lunch, but when there are • other people around, they try to save on costs • The Dutch suffer a lot from constipation because of the • rich, fatty foods they eat at home, so they have to eat • simpler food during the day • It’s the French who are the problem - they eat and drink too • much at lunchtime and then can’t concentrate on their work • Without much of a sense of occasion and not wanting to show off, • the Dutch serve simple food • The Dutch are very health conscious, so tend to eat • simple, healthy food. Why do the French complain about the quick, simple lunches the Dutch offer their guests?

18. It’s a way of showing they have nothing to hide • It’s to show off their interiors • It’s just a meaningless tradition • It is a way for people to let visitors, friends and the family know • they are at home • It’s a way to let the outside world share the comfortable ambiance • inside. Why are the curtains in many Dutch houses left open during the evenings?

19. The Dutch hate to make a fool of themselves. It damages • their self-esteem • The Dutch like to have their own area of responsibility • (“eigen toko”) • The Dutch don’t like hard work. Just look how long their vacations • are • Such systems are seen as an expression of distrust by • the boss • Such systems tend to increase competition among • colleagues. One is not supposed to stand out in the crowd, • so this will demotivate employees. Dutch employees don’t like strict appraisal systems. Why?

20. Paradoxes in Dutch culture • egalitarian yet individualistic • direct & critical yet conformist • pragmatic yet money-minded • moralistic yet permissive • tolerant yet indifferent? • local yet international

21. Due to an increase in global communication, • they will probably disappear in the next 25 years. • Yes -- within 50 years. • Yes -- within 100 years. • Yes -- within 200 years. • The essence of e.g. Dutch, French or Russian culture • has not changed much in the last two centuries. • Cultural differences are here to stay. How deep-rooted is culture – will differences eventually disappear?

22. THE 5-D MODEL • Value differences between countries • can be explained by five “dimensions • of national culture” • Power Distance (PDI) • Individualism (IDV) • Masculinity (MAS) • Uncertainty Avoidance (UAI) • Confucian Dynamism (CDI)

23. POWER DISTANCE The extent to which the less powerful members of institutions and organizations accept that power is distributed unequally

24. Which country’s culture scores highest on POWER DISTANCE ? FRANCE GERMANY POLAND PORTUGAL SPAIN

25. Which country’s culture scores highest on POWER DISTANCE ? FRANCE GERMANY POLAND PORTUGAL SPAIN 68 35 50 63 40

26. Which country’s culture scores lowest on POWER DISTANCE ? NETHERLANDS NORTH SWEDEN UK USA ITALY

27. Which country’s culture scores lowest on POWER DISTANCE ? NETHERLANDS NORTH SWEDEN UK USA ITALY 38 50 31 35 40

28. At last the boss recognizes my competence and skills! • He must be too busy. • I hate being checked up on. At last the boss recognizes • my need for independence. • The boss is probably checking me out from a distance. As long as • I do a good job, it’ll be OK. • The boss is apparently not interested in my work , so he can’t. • be interested in me. What have I done wrong? If a boss in a country with high power distance doesn’t check regularly on subordinates, what will they think?

29. INDIVIDUALISM VERSUS COLLECTIVISM • Individualism • People look after themselves • and their immediate family only • Collectivism • People belong to groups, • which look after them • in exchange for loyalty

30. Which country’s culture scores highest on INDIVIDUALISM ? FRANCE GERMANY NETHERLANDS UK USA

31. Which country’s culture scores highest on INDIVIDUALISM ? FRANCE GERMANY NETHERLANDS UK USA 71 67 80 89 91

32. Which country’s culture scores lowest on INDIVIDUALISM, i.e. is most COLLECTIVIST JAPAN POLAND CHINA RUSSIA SWEDEN

33. Which country’s culture scores lowest on INDIVIDUALISM, i.e. is most COLLECTIVIST JAPAN POLAND CHINA RUSSIA SWEDEN 46 60 15 47 71

34. The Dutch are weak leaders. Look at the way they • raise their children - there’s a total lack of discipline. • In the Netherlands subordinates prefer to have their own • area of responsibility, which they manage independently. • The Dutch delegation principle means that the boss doesn’t • intervene without a compelling reason. • It’s simply a way for Dutch management to avoid taking • responsibility. • The Dutch are just waiting for them to fail. They enjoy • seeing others make mistakes. Foreigners working under Dutch management are often surprised about the degree of freedom they are given

35. MASCULINITY VERSUS FEMININITY • Masculinity • The dominant values in society are • achievement and success • Femininity • The dominant values in society are • caring for others and quality of life

36. Which country’s culture scores highest on MASCULINITY ? GERMANY ITALY SPAIN UK USA

37. Which country’s culture scores highest on MASCULINITY ? GERMANY ITALY SPAIN UK USA 66 70 42 66 62

38. Which country’s culture scores lowest on MASCULINITY, i.e. is most FEMININE FRANCE NETHERLANDS POLAND PORTUGAL SWEDEN

39. Which country’s culture scores lowest on MASCULINITY, i.e. is most FEMININE FRANCE NETHERLANDS POLAND PORTUGAL SWEDEN 43 14 70 31 5

40. UNCERTAINTY AVOIDANCE The extent to which people feel threatened by ambiguous situations and create rules and institutions in an attempt to avoid them

41. Which country’s culture scores lowest on UNCERTAINTY AVOIDANCE ? NETHERLANDS HONG KONG UK S’PORE USA

42. Which country’s culture scores lowest on UNCERTAINTY AVOIDANCE ? NETHERLANDS HONG KONG UK S’PORE USA 53 29 35 8 46

43. Which country’s culture scores highest on UNCERTAINTY AVOIDANCE ? FRANCE GERMANY POLAND RUSSIAFINLAND

44. Which country’s culture scores highest on UNCERTAINTY AVOIDANCE ? FRANCE GERMANY POLAND RUSSIAFINLAND 86 65 60 7559

45. CONFUCIAN DYNAMISM ( CDI ) The extent to which people take a more pragmatic, future-orientated perspective as opposed to a normative, historical or short-term point of view

46. Adults in Japan consider Westerners who • ask questions to be childish • They have a very pragmatic culture and believe • that there is simply no way we can know the • answers to fundamental questions • They are afraid that asking the question "why?" will • cause loss of face, something to be avoided at all costs • They are afraid to show their ignorance • The word "why" does not exist in Japanese, • like the words "analysis” and "consistency“. The Japanese don't ask the question why? Why is that?

47. The Chinese never say what they think • In individualistic cultures people are credulous • The Chinese tend not to say how things really are, but • rather what they think others wants to hear • In China a written statement has more power than an oral • agreement. So don’t accept an oral agreement unless it is • backed up in writing • In the West people pay more attention to what • is said than to how it is said or to body language. The Chinese find Westerners naive because we believe what people say

48. She spends the whole flight looking for that • particular brand of whisky • This is a blow to her self-esteem and she is • in a deep depression • She is so hurt by the passenger’s rude behavior • that she sits sulking in the galley • She is so furious that her colleagues have to stop her • attacking the passenger • She has lost face and therefore feels unable to reappear. An Scotsman flying with Singapore Airlines asks a stewardess whether they have all brands of liquor. When she says “yes”, he asks for a type of whisky he’s sure they won’t have in stock. The stewardess fails to reappear in the cabin. Why?

49. NL UK Austria Guatemala Sweden Singapore Pakistan The relative position of a number of countries in the 5-D model PDI IDV MAS UAI CDI Russia USA Japan Greece China UK Austria France Portugal Denmark

50. Respect your own culture • Respect the other culture • Only adjust your behavior to that of the other culture • in critical situations Don’t try to behave like people in the other culture You will never get it quite right and this may be seen as patronizing If we understand why people behave differently in another culture, we will be less likely to be upset by differences and better able to work together with them. We should try to stop judging people according to our own ideas and norms. Golden Rules