What happened to executive planet

Choose A Country Of Interest To You. Go To The Executive Planet Website (Www.Executiveplanet.Com) Or Another Website With Cross-Cultural Comparisons And Analyze The Country In Terms Of The Following Cultural Dimensions:

1.Choose a country of interest to you. Go to the Executive Planet website (www.executiveplanet.com) or another website with cross-cultural comparisons and analyze the country in terms of the following cultural dimensions:

● Individualism and collectivism
● Egalitarianism and hierarchy
● Assertiveness
● Performance orientation
● Future orientation
● Humane orientation
● Uncertainty avoidance
● Gender egalitarianism

2.Describe each of the three components in the AIM planning process for business messages: audience analysis, idea development, and message structuring

3.Choose a business message to evaluate. You could find a recent letter you have received from a business, go to a website or choose a message for customers or a message specified by your instructor. Select a message that contains at least three or four paragraphs.

Evaluate the message in the following ways:
A. How effectively are facts and conclusions written?
B. How effectively is the message targeted to its audience? Do you have any suggestions for how it could have been better adapted for the audience?
C. Does the message portray a tone of positivity? Other-orientation? Describe your viewpoint with examples.
D. Assume that you are a consultant to the company that produced this message (the one you just examined). What advice would you give to create a more effective message in terms of content and tone?

4.Identify three writing principles from this chapter that you most need to work on. For each principle, write a paragraph about why you want to improve in this area and how you will go about doing it. Choose from the following writing principles: be specific; be accurate; control paragraph length; use short sentences in most cases; avoid redundancy; avoid empty phrases; use action verbs when possible; use active voice; use short and familiar words and phrases; avoid buzzwords and figures of speech.

C h

a p

t er

F o

u r Communicating

across Cultures

After studying this chapter, you should be able to do the following:

LO4.1 Describe characteristics of cultural intelligence, its importance for global business leaders, and approaches to developing it.

LO4.2 Explain the major cultural dimensions and related communication practices.

LO4.3 Name and describe key categories of business etiquette in the intercultural communication process.

Learning Objectives

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Why Does T his Matter?

You are living in one of the most exciting times because of opportunities to work and interact with people from across the globe. Only a few decades ago, few busi- nesspeople worked closely with members of other cultures. Now, however, global business connections have increased rapidly, and you will undoubtedly work across cultures throughout your career. For example, you will probably have some chances to travel internationally for work assignments. More frequently, however, you are likely to work across cultures by collaborating with work teams in India, videoconferencing or emailing with customers or suppliers in China, or working in a culturally diverse office in your hometown. The pos- sibilities are immense!

The rapid growth in intercultural business con- nections is driven by technological and cultural forces of globalization. Technology has allowed people to nearly instantaneously communicate with people around the world, transact business, and move capital. These technologies include the Inter- net, the digitization of work, ATMs, credit cards, smart cards, and GPS. Furthermore, convergence of many business standards and platforms has made conducting business easier and more predict- able. These common standards and platforms in- clude English as a global business language, trade agreements that specify rules for commerce (the World Trade Organization and North American Free Trade Agreement), and quality standards in manufacturing (e.g., supplier-customer relationships driven by ISO 9000 quality standards). Also, many non-Western ex- ecutives are trained in business schools in the United States, Australia, and Western Europe, creating a more homogeneous business culture around the world. 1

Throughout this chapter, you will see a variety of national cultures compared. The countries selected for this chapter are among the most important trading partners for the United States and Canada. In terms of trade volume, countries such as China (including Taiwan), Mexico, Japan, the United Kingdom, and Germany dominate. (See Table 4.1 for the most important trading partners of North America.) Of course, you will likely work with business professionals, clients, or customers from many other national backgrounds. Your business discipline, company, and industry will factor into the national cultures with which you most frequently interact. Carlos Ghosn, CEO of Nissan and Renault, explained the necessity of learning to work and communicate effectively across cultures:

Companies are going global, but the teams are being divided and scattered all over the planet. If you’re head of engineering, you have to deal with divisions in Vietnam or China, and you have to work across cultures. You have to know how to motivate people who think very dif- ferently than you, who have different kinds of sensitivities, so I think the most important message is to get prepared to deal with teams who are multicultural, who do not think the same way. 2

Read the following case about Carlos Ghosn. Throughout the chapter, you will read more advice from him and other business executives. 3

? TABLE 4.1

Top Trading Partners with North America (United States and Canada)

Country Total Trade ( in millions of dollars )

1. China

2. Mexico

3. Japan

4. United Kingdom

5. Germany

6. South Korea

7. France

8. Netherlands

9. Brazil

10. Italy

$494,244

326,802

167,520

114,592

109,488

77,247

69,009

52,952

50,327

44,917

Note: China fi gure includes Hong Kong and Taiwan. Total trade combines total imports and exports with the United States and Canada. Based on 2009 trade fi gures.

Hear Pete Cardon explain why this

matters.

bit.ly.com/CardonWhy4

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88 Part two Principles of Interpersonal Communication

Chapter Case: Carlos Ghosn and Working across Cultures at Nissan

Carlos Ghosn , president and CEO of Nissan and Renault • Held many international management positions: Michelin in France, 1978–1985;

Michelin in Brazil, 1985–1989; Michelin in the United States, 1989–1996; Renault in France, 1996–present; Nissan in Japan, 1999–present.

• Speaks six languages: Arabic, Portuguese, Spanish, French, English, and Japanese. • Born in Brazil, grew up in Lebanon, and moved to France for university studies. • Industry analysts comment that Ghosn “epitomizes a new breed of borderless global

managers. . . . These executives are multilingual, have worked around the world, and seem impervious to jet lag.”4

In March 1999, Carlos Ghosn was asked to lead the turnaround at the struggling Japanese car- maker Nissan. The company was $23 billion in debt, had suffered declines in domestic market share for 27 straight years, was unprofitable on 43 of the 46 products it sold, and had lost money for seven of the prior eight years. Many viewed Ghosn, who was nicknamed Le Cost-Killer and renowned for his turnaround abilities, as the best hope to fix the crisis. Yet, many industry analysts thought the situation was impossible. They also wondered how a foreigner could succeed in the Japanese work environment. Within 18 months, Nissan was restored to profitability and has sustained annual profitability for all but one year (during the recent worldwide recession) since then. Within five years of Ghosn’s arrival in Japan to run Nissan, the debt of $23 billion had been turned into a $7 billion surplus. It now sells and markets cars in nearly every country in the world and runs manufacturing facilities in nearly 20 countries. Nissan is currently developing some of the most innovative cars, including the Nissan Leaf, the first zero-emissions car. Ghosn credits much of this turnaround at Nissan to his ability to work across cultures and to build on the best parts of each culture involved.

Who’s Involved

The Situation

Questions to Consider as You Read • What types of attitudes do business professionals need to communicate effectively across cultures? • How can business students learn about and prepare to work with members of other cultures? • How can understanding cultural dimensions help business professionals work cross-culturally? • What advantages accrue to companies with a global mentality? • What is the value of global leaders?

Companies depend on business professionals who can manage across cultures. Com- panies such as Coca-Cola sell more products abroad than they do locally. In fact, Coca- Cola sells more drinks in Japan alone than in the United States. In Chapter 2, you read about emotional intelligence (EQ), your ability to manage emotions in interpersonal situations. Similarly, cultural intelligence (CQ) is a measure of your ability to work with and adapt to members of other cultures. Like EQ (but unlike IQ), CQ can be de- veloped and improved over time with training, experience, and conscious effort. 5 Business professionals with high CQ understand differences and similarities be- tween and among cultures. Culture includes the shared values, norms, rules, and

Developing Cultural Intelligence LO4.1 Describe

characteristics of cultural intelligence, its importance for global business leaders, and approaches to developing it.

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Communicating Across Cultures Chapter Four 89

behaviors of an identifiable group of people who share a common history and com- munication system. There are many types of culture, such as national, organizational, and team. We discuss principles of intercultural communication in this chapter in the context of national cultures, which tend to be more permanent and enduring than other types of culture. The norms and values of national cultures are instilled in young mem- bers through a shared language, shared history and traditions, school systems, and political and economic systems. When working with members of other cultures at the home office or abroad, business professionals with high CQ are skilled at forming goals, discussing and succeeding on joint projects, resolving differences, and negotiating mutually beneficial outcomes. They understand new markets and can develop global plans for marketing and supply chain management. When people with high CQ encounter unfamiliar situations, they implement a variety of the skills displayed in Table 4.2 and discussed throughout the chapter. 6 Developing cultural intelligence is more than possessing favorable attitudes toward members of other groups. It also requires developing skills and knowledge. In this sec- tion, we focus briefly on several characteristics of cultural intelligence.

Respect, Recognize, and Appreciate Cultural Differences Cultural intelligence is built on attitudes of respect and recognition of other cultures. This means that you view other cultures as holding legitimate and valid views of and approaches to managing business and workplace relationships. Ghosn, when first sent to Japan from France to turn around Nissan, demonstrated this view of cultures:

People who try to impose one system onto another only wind up destroying it. This has never been our strategy. If Renault had wanted to do that, they would have picked anyone but me, because I’m completely convinced of the opposite course. Nissan had to be changed from the inside. If you’re French and you come to Japan, you have no chance, zero, of budging the system an inch. I’m convinced of this. My conviction is both human and professional, and it’s bolstered by the experience of having lived on several continents. Right from the beginning, I told them: “You’re not missionaries. You’ve come here not to change Japan but to straighten out Nissan with the men and women of Nissan. We’re the ones who have to assimilate with them—it’s not up to them to adapt to us.” 7

In recent years, many public and educational campaigns have focused on embrac- ing diversity. In this book, we refer to diversity as the presence of many cultural groups in the workplace. Business professionals with high cultural intelligence em- brace diversity as a moral imperative and as a means to achieve higher performance. A great deal of research has examined the role of cultural diversity in the workplace. These studies have shown that a mix of cultural groups in terms of national culture,

TABLE 4.2

Cultural Intelligence in the Workplace

Characteristics of High Cultural Intelligence

• Respect, recognize, and appreciate cultural differences. • Possess curiosity about and interest in other cultures. • Avoid inappropriate stereotypes. • Adjust conceptions of time and show patience. • Manage language differences to achieve shared meaning. • Understand cultural dimensions. • Establish trust and show empathy across cultures. • Approach cross-cultural work relationships with a learner mind-set. • Build a co-culture of cooperation and innovation.

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90 Part two Principles of Interpersonal Communication

ethnicity, age, and gender leads to better decision making. 8 Nissan, like many com- panies, has recognized the moral and business value of diversity and explicitly states this on its website:

At Nissan, we believe that diversity is a source of strength. . . . Nissan is committed to diversity to ensure that we meet the diverse needs of our customers and achieve sustainable growth for all stakeholders. Each and every employee will respect diversity and take full advantage of it. . . . We believe that embracing and leveraging this cultural diversity gives us a competitive advantage. 9

Be Curious about Other Cultures As a college student, you are in a stage of life that gives you unique opportunities to acquire cross-cultural experiences. Consider the following options: studying abroad, learning a language, developing friendships with international students on campus, and taking an interest in and learning about a particular culture. 10

Study Abroad Living in another culture is perhaps the best approach to learn- ing about one. It allows you to immerse yourself in another way of living—to observe and experience up close how members of another cultural group communicate, work in groups, manage relationships, celebrate successes, and deal with disappointments. When asked, “What’s your best career advice to young graduates?” Quintin E. Primo III, co-founder and chief executive of Capri Capital Partners, responded in the follow- ing way:

Leave the country. Get out of here. That’s what I tell everybody—just go. I don’t care where you go, just go. Because the world is changing. It is no longer acceptable to speak only English if you are 25 and younger. . . . You have little chance of being successful if you speak only one language. If you don’t understand Islam, you’re in trouble because Islam comprises somewhere between 1.6 billion and 1.8 billion people, and there are markets that are untapped that need to be tapped. So you’ve got to get out of your front door, get out of the comfort and quiet of your home, and your safety zone, and step into a pool of risk where you have no idea what the outcome is going to be. Out of it all, you will have a much broader understanding of the world’s cultures, and you will have a much clearer idea of how the world perceives our culture, and all the value, and the benefits, and the beauty of our culture. There is nothing more important. I don’t care where you went to business school. I don’t care whether your grades were good or bad. You have to leave the country.” 11

As freshmen, most university students express a desire to study abroad and even be- lieve that they will have an opportunity to do so before they graduate. However, just 3 to 5 percent of university students actually do. 12 So, if you want to study abroad, make it a priority. Plan for it now. Furthermore, consider choosing locations and programs that are most important for your career. Typically, business recruiters value study- abroad programs that are at least one semester long, involve the development of busi- ness skills, and include language study. Also, business recruiters are more impressed with study-abroad programs located in countries that are considered strategically im- portant business partners. Whereas most students choose locations in Western Europe and Australia, recruiters see more value in countries such as China, Japan, Brazil, Mexico, or India. Of course, this varies by discipline and industry. For example, if you are going into the fashion design industry, experience in Italy or France would be extremely valuable. When you study abroad, learn all you can about adapting to the culture. However, avoid developing strong preconceptions and remain flexible. When you arrive in your chosen destination, open yourself completely to the experience. As Ghosn said about entering the Japanese culture, “I did not try to learn too much about Japan before com- ing, because I didn’t want to have too many preconceived ideas. I wanted to discover Japan by being in Japan with the Japanese people.” 13

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Communicating Across Cultures Chapter Four 91

Learn a Language Although English is considered the global business language and business managers in other parts of the world increasingly speak it well, you can benefit from learning another language for a variety of reasons. It gives you many insights into how people of other cultures think. It helps you appreciate the richness of other cul- tures. It fosters tremendous goodwill with others. And you may find yourself in situations where your language ability allows smoother communication than relying on English. Ghosn, who now speaks six languages, commented on the reasons and the benefits: “Learning languages quickly became one of my passions. The study of language is the best way of understanding the connections between people and cultures.” 14 Of course, learning languages takes a lot of time. Also, it requires forcing oneself into authen- tic and sometimes uncomfortable situations. Ghosn was determined to learn English while studying in Paris. So, twice each month, he invited Americans living in France to dinner to practice his English. 15

Develop Friendships with International Students on Your Campus Your university likely has hundreds or even thousands of international students. This presents you with a rare opportunity to experience the world. You can learn more about other cultures by befriending international students than you can by taking a group tour of another country. Also, you can help these students feel at home. One reason you can learn so much from international students is that they are experiencing the challenges of living in and adapting to a new culture. During your career, you are most likely to interact with business professionals who are the current generation of international students.

Take an Interest in a Culture and Routinely Learn about It Each culture has its own complexity. Ideally, you should seek an in-depth understanding of one culture. Once you’ve done this, you can more quickly adapt to and learn other cultures. One of the best ways to gain an in-depth understanding is to take an inquisi- tive approach—asking questions and seeking the answers to how other cultures view knowledge; how they reason and approach problems; how they work, worship, and view the world; how they view time, and so on. 16 You can routinely learn about cultures of interest in some of the following ways: 17

● Watch films, television, documentaries, news, and other video of the culture . It’s increasingly easy to access video of other cultures. This allows you to observe many aspects of the culture in context with visual and auditory cues.

● Follow the business culture of a country . Many websites contain global business news sections with both text and videos. For example, consider the following: Bloomberg Businessweek, CNBC, Time, Foreign Exchange, and CIBERweb.

● Take courses and attend events related to particular cultures . Your university offers numerous opportunities, including taking courses about international and intercul- tural topics and attending symposia that feature international speakers.

● Make friends with people who live in other cultures and communicate online . You might try to make friends abroad and communicate frequently via email, chat, and online calls. One of the most common means of communicating internationally is via online call services such as Skype. Read the Technology Tips box on page 103 about online calls.

Avoid Inappropriate Stereotypes When Ghosn moved to Japan, he selected a team of roughly 20 executives from Renault in France to join him. As he selected his team, he was adamant that each team member must be open to the Japanese:

However competent a candidate may have been, however motivated, if I sensed that he or she was even slightly close-minded about cultural differences, that person was

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92 Part two Principles of Interpersonal Communication

excluded. . . . I wanted competent, enthusiastic, open-minded people capable of engaging in a real dialogue. 18

We naturally develop stereotypes, or generalizations, to try to understand the at- titudes and behavior of people we do not know, especially those of different cultures. It is an attempt by the brain to group and categorize in complex situations. Stereotypes can make interactions less complicated since they serve as a starting point for under- standing the motives and values of others. For example, people may have a stereotype of tax accountants as credible, professional, competent, helpful, and detail-oriented. This stereotype allows people to go to a tax accountant’s office with the assumption that the professional will help them and provide excellent service. Similarly, people who work across cultures often form stereotypes of how members of that culture com- municate and approach work problems. These stereotypes can be productive as long as they are only a starting point, they are flexible, and they are primarily positive. 19 Stereotyping about cultures can also be dysfunctional, counterproductive, and even hurtful. People tend to form two types of stereotypes when interacting with members of other cultures: projected cognitive similarity and outgroup homogeneity effect . 20 Projected cognitive similarity is the tendency to assume others have the same norms and values as your own cultural group. This occurs when people project their own cultural norms and values to explain the behaviors they see in others. Take the case of an American interviewing a Japanese man for a new position. The Japanese man might downplay his own achievements and give credit to the teams he has worked on. The American interviewer, based on the American cultural lens, may think the man lacks self-confidence and independence or initiative. The Japanese applicant, by contrast, is most likely displaying Japanese norms and values associated with modesty, politeness, and collectivism. Outgroup homogeneity effect is the tendency to think members of other groups are all the same. Psychologically, this approach minimizes the mental effort needed to get to know people of other groups. Practically speaking, it is counterproductive to developing effective working relationships with members of other cultures. The real- ity is that all cultures contain a lot of diversity—individuals of many backgrounds, worldviews, interests, and approaches to life. In the “Individualism and Collectivism” section of this chapter, we will illustrate more about the nature of diversity. Negative stereotyping can easily emerge from popular culture. Research has shown that television depictions of particular cultural groups as criminal, cruel, backward, or dishonest affect the stereotypes viewers have of those cultures. 21 Similarly, viewing members of other cultures through a political lens based on news stories about the political relations between countries often leads to unjustified negative stereotyping. While you should be careful about forming negative or rigid stereotypes of members of other cultures, you should also be aware of stereotypes that others may have of you. Many people you interact with will have already formed some impressions of your cul- tural background and what to expect from you. Members of other cultures often form stereotypes of Americans based on news stories as well as popular culture (i.e., films, television shows, music). Typically, most people around the world hold mixed views of Americans (see Table 4.3 ). Even in countries where the majority of adults view Americans as dishonest or greedy, they also view Americans as hardworking and inventive. 22

Adjust Your Conceptions of Time One frustration that most people experience when communicating and working across cultures is dealing with time. This is because people have a lifetime of experiences, related to their particular culture, that form their expectations for when things should happen during any given process. People high in CQ show patience. They understand that most tasks take longer when working across cultures because more time is needed to understand one another and cooperate effectively. Furthermore, many cross-cultural work projects are conducted

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Communicating Across Cultures Chapter Four 93

across great distances. Naturally, this requires additional time due to the communica- tion tools and organizational decision-making processes. Guy McLeod, president of Airbus China, explained why business managers arriving in China need to adapt their pace: “When people have just arrived, they want to change things. But making quick moves in the wrong way isn’t the right thing to do. You need to have patience, patience, patience. It is one of the clichés you hear in China, but it is true. You need to make a long-term strategy and stick to it.” 23 Also, people of various cultures conceptualize time differently. What seems fast in one culture may seem slow in another. One recent study ranked pace of life in various cultures by measuring walking speed over a distance of 60 feet, the average time for a postal worker to complete one request, and the accuracy of clocks in public. Coun- tries such as Germany, Japan, and Italy were considered fast-paced cultures, whereas countries such as China, Brazil, and Mexico were considered slow-paced ones (see Figure 4.1 ). 24 The point is that cultures establish expectations about what is consid- ered timely, late, rushed, and hectic. Cultures also differ in their priorities related to focusing on the present versus focusing on the future (as discussed in the “Future Orientation” section in the upcoming pages). As you can see, you will need to adjust your sense of time to coordinate effectively with members of other cultures. A final time consideration relates to adjustment. You need time to get accustomed to and proficient in working with other cultures. When traveling to a new culture or taking an international assignment, you should allot time for adjusting. Ghosn noted the difficulties he and his family had when they moved to Japan:

The language barrier was huge. When you first get to Japan, you’re really constrained, because you feel dependent on other people for everything. . . . The culture’s different. The customs are different. . . . As time passed, however, our family got its bearings. 25

Manage Language Differences English is increasingly considered the global business language. Many global compa- nies such as Nissan, which are composed primarily of non-native English-speaking

TABLE 4.3

Perceptions That Members of Various Cultures Have about Americans

Hardworking Inventive Honest Greedy Rude

Canada 77% 76% 42% 62% 53%

China 44 70 35 57 44

France 89 76 57 31 36

Germany 67 56 52 49 12

India 81 86 58 43 27

Jordan 78 68 37 63 64

Netherlands 84 69 46 67 26

Russia 72 56 32 60 48

Spain 74 53 45 58 39

UK 76 64 57 62 35

Note: Red shading indicates a majority of adults in a country have a negative view. Green shading indicates a majority of adults in a country have a positive view. Source: Pew Global Attitudes Project. Reprinted with permission.

Faster Pace of Life

Slower Pace of Life

Germany

Japan

Italy

UK

Netherlands

Hong Kong

France

USA

Canada

S Korea

China

Brazil

Mexico

FIGURE 4.1

Pace of Life across Cultures

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94 Part two Principles of Interpersonal Communication

business professionals, have adopted policies of conducting meetings in English. Yet, even with the strong push for English as a business language, many professionals around the business world speak limited English. Also, many forms of English exist— that of the United Kingdom, Australia, Singapore, and India, to name just a few places. Thus, standard English is a matter of interpretation. As you conduct business across cultures with those who have limited English ability, consider the following advice: 26

● Avoid quickly judging that others have limited communication proficiency . Many non-native English speakers take time to warm up. The first moments—or in some cases days or weeks—of your interactions with them are not representative of their real language abilities. Many business professionals have studied English for years yet infrequently have opportunities to speak it in an authentic encounter.

● Articulate clearly and slow down . Many Americans inadvertently run their words together. Make sure you pronounce each word distinctly and slow your pace slightly.

● Avoid slang and jargon . Slang and jargon can be particularly confusing to members of other cultures. For example, Americans are well known for using sports slang in business (e.g., striking out, throwing a curve ball, hitting a home run). Use as much literal language as you can.

● Give others time to express themselves . Allow those with limited English ability enough time to process their thoughts into English. You will often find that non- native English speakers, given time, express their thoughts with a more precise, creative, and even accurate use of English words than native English speakers.

● Use interpreters as necessary . In some situations, you will rely on interpreters. Spend some time in advance getting to know the interpreter’s abilities and prefer- ences for facilitating an exchange. During interpretation, focus on the person you are communicating to rather than the interpreter. That is, focus on the person with whom you are trying to build rapport.

Ghosn made several excellent points about overcoming language barriers:

Of course there are frustrations that always exist with language barriers: where you don’t operate in an environment of spontaneous communication; where you have to go through a translator (you know that when you go through a translator, about 40 percent of your intended meaning is lost); where you’re not sure that what you want to get across to people, on the shop floor or in meetings with customers, is actually being communicated the way you intended it. These are what I consider small frustrations; if you accept these and other things that perhaps are part of the fact that people don’t think or act the same way in France or in Japan, it is easier to deal with such things as language barriers. When you have taken the time to understand that, and when you are really motivated and mobilized by a very strong objective, then the cultural differences can become seeds for innovation as opposed to seeds for dissention. 27

In this section, we describe recent research on cultural norms and values among busi- nesspeople throughout the world. This research, conducted by the GLOBE group (which includes dozens of business researchers around the world), is based on surveys and interviews of about 20,000 business leaders and managers in 62 countries. 28 The GLOBE group found that cultures can be grouped into eight dimensions. Cul- tural dimensions are fairly permanent and enduring sets of related norms and values and are classified as (1) individualism and collectivism, (2) egalitarianism and hierar- chy, (3) assertiveness, (4) performance orientation, (5) future orientation, (6) humane orientation, (7) uncertainty avoidance, and (8) gender egalitarianism. By understand- ing these eight dimensions, you can get a good sense of the underlying motivations and goals that impact acceptable behaviors within a culture.

Understanding Cultural Dimensions

LO4.2 Explain the major cultural dimensions and related communication practices.

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Communicating Across Cultures Chapter Four 95

Although cultures constantly evolve, usually over decades or generations, the cul- tural dimension that changes most rapidly is individualism and collectivism. As pros- perity and economic development rise, individualism typically increases as well. We describe each of the eight cultural dimensions, along with related communi- cation practices, focusing on norms, meaning the range of expected and acceptable behaviors in each culture. You will notice that rankings are provided for each cultural dimension, and these rankings include the United States as well as the top ten trading partners of North America. 29 You can find rankings for other countries included in the GLOBE study in the online resources.

Individualism and Collectivism Most intercultural communication scholars identify individualism and collectivism as the most influential cultural dimension. This dimension deals with the level of independence and interdependence that people in a society possess and encourage. Individualism refers to a mind-set that prioritizes independence more highly than interdependence, emphasizing individual goals over group goals, and valuing choice more than obligation. By contrast, collectivism refers to a mind-set that prioritizes interdependence more highly than independence, emphasizing group goals over indi- vidual goals, and valuing obligation more than choice. Individualists view themselves as distinct and separate from their family members, friends, and colleagues. They pursue their own dreams and goals, even when it means spending less time with family members and friends. They enter friendships and re- lationships primarily based on common interests. They also leave relationships when they are no longer mutually satisfying, beneficial, or convenient. Decision making tends to be based on an individual’s needs. 30 On the other hand, collectivists view themselves as interdependent—forming an iden- tity inseparable from that of their family members, friends, and other groups. They tend to follow the perceived dreams and goals of the group as a matter of duty and obligation, even when it means sacrificing their own hopes and ambitions. They form permanent and lifetime relationships. They also tend to stay in contact with and work through ex- tended networks built on family relationships, schoolmates, and hometowns. Decisions are made by groups. 31 Figure 4.2 displays country rankings for individualism and collec- tivism in society. Of the countries we are considering here, China has the highest ranking for collectivism and the Netherlands has the lowest. Japan, which many people think of as highly collectivist, falls in the middle of this group. Table 4.4 shows communication practices normally associated with high individualism and high collectivism. Traditionally, North American and Western countries have been far more individu- alist than Asian, Latin American, and other countries. However, some countries have

FIGURE 4.2

Individualism and Collectivism across Cultures

Collectivism in Society

Individualism in Society

China 82

S Korea 77

Mexico 74

Taiwan 68

Hong Kong 64

Brazil 58

Italy 53

Japan 43

France 41

USA 26

Germany 24

UK 21

Netherlands 11

TABLE 4.4

Communication Practices in High-Individualist and High-Collectivist Cultures

High Individualism High Collectivism

• Discuss individual rewards and goals • Emphasize opportunities and choices • Spend less time in group decision making • Socialize infrequently with colleagues

outside of work • Network in loosely tied and temporary

social networks • Communicate directly to efficiently deal with

work tasks and outcomes

• Discuss group rewards and goals • Emphasize duties and obligations • Spend more time in group decision making • Socialize frequently with colleagues outside

of work • Network in tightly knit and permanent social

networks • Communicate indirectly to preserve harmony

in work relationships

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increasingly become individualist, such as Japan. Generally, as countries increase the standard of living, they develop more individualist tendencies. A major distinction in individualism and collectivism can be made between norms and values in society versus norms and values in organizations . All companies tend to promote both individualist and collectivist values. For example, encouraging self- initiative and individual accountability are individualist values. Encouraging teamwork and team incentives are collectivist values. In practice, many companies in individual- ist countries have attempted to adopt more team-oriented strategies in recent decades. Thus, highly individualist countries such as the United States exhibit many collectivist characteristics within organizations. Figure 4.3 displays country rankings for individu- alism and collectivism within companies. In many cases these rankings differ from norms and values in society at large. One key to Ghosn’s success with Nissan was his ability to work within the Japanese mind-set of collectivism. 32 He immediately formed cross-functional teams to develop solutions and goals. As Ghosn said, “One of the striking things about Japanese industry is the quality of teamwork. . . . In France, people aren’t naturally inclined to teamwork. In Japan, on the other hand, people are quite comfortable working in teams.” 33 Cultures that exhibit extremely high collectivism within organizations tend to have a family-centered culture. Many Asian organizations adopt this family-oriented ap- proach to running a company. As Ernst Behrens, president of Siemens China, ex- plained, “The Chinese—and Asians generally—enter into employment with a different understanding than we have in Europe. For us, the company certainly is important, but mainly as an employment base. To the Chinese, the company is more like a family. The idea is, ‘I am giving myself to Siemens. Now you have to take care of me.’” 34 As you read through this section on cultural dimensions and view the continuums with rankings for each country, note that cultures are more than a spot on a scale. For example, Figure 4.4 shows how the United States, which is considered to have one of the most individualist cultures, and China, which is considered among the most collec- tivist cultures, overlap to some extent on this dimension (the triangular area enclosed by the intersection of the red and blue curves). In other words, some Chinese indi- viduals behave in more individualist ways than some American individuals. However, by and large, most Chinese are more collectivist than most Americans. Furthermore, norms within a culture typically evolve to reflect what most people value. Even within cultures, there is great variety. Research in the United States has shown that individual- ism and collectivism vary significantly by region, with the Mountain West region the most individualist and the Deep South the most collectivist. 35 By constantly reminding yourself that variety exists within cultures, you are less likely to typecast people (out- group homogeneity effect).

FIGURE 4.3

Individualism and Collectivism within Companies

Collectivism in Organizations

Individualism in Organizations

Japan 98

S Korea 97

China 68

Netherlands 65

UK 49

Taiwan 48

USA 43

France 43

Hong Kong 34

Germany 30

Mexico 29

Brazil 29

Italy 18

Many People in Society

Few People in Society

High Individualism High Collectivism

USA Japan China

FIGURE 4.4

Variety in Individualist and Collectivist Norms in the United States, Japan, and China

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Egalitarianism and Hierarchy All cultures develop norms for how power is distributed. In egalitarian cultures, people tend to distribute and share power evenly, minimize status differences, and minimize special privileges and opportunities for people just because they have higher author- ity. In hierarchical cultures, people expect power differences, follow leaders without questioning them, and feel comfortable with leaders receiving special privileges and opportunities. Power tends to be concentrated at the top. In egalitarian organizations, leaders avoid command-and-control approaches and lead with participatory and open management styles. Competence is highly valued in positions of authority. People of all ranks are encouraged to voice their opinions. Sta- tus symbols for leaders are discouraged. Salary ranges between the top and the bottom of the organization are quite narrow. By contrast, in hierarchical organizations, lead- ers expect employees to fall in line with their policies and decisions by virtue of their authority. Employees are discouraged from openly challenging leaders. Status symbols are common. Salary differences between the top and the bottom of the organization are extreme. 36 Figure 4.5 displays country rankings for hierarchy and egalitarianism. Table 4.5 presents communication practices normally associated with hierarchy and egalitarianism.

Performance Orientation Performance orientation (PO) is “the extent to which a community encourages and rewards innovation, high standards, and performance improvement.” 37 Of all cultural dimensions, societies cherish this one the most, especially in business. Yet many cul- tures are still developing a performance orientation. 38 To some degree, the distinctions between high-PO and low-PO cultures are captured in the phrase living to work versus working to live . The cultures of Far Eastern Asia, Western Europe, and North America are particu- larly high in performance orientation. For example, professionals in higher PO cultures often perceive members of lower PO cultures as not prioritizing results, accountability, and deadlines. By contrast, members of lower PO cultures often perceive members of higher PO cultures as impatient and even obsessed with short-term results. Some cultures that are midrange PO cultures such as China and India are rapidly developing performance orientations in work culture. Each of these countries has imple- mented major economic reforms in recent decades and is achieving stunning economic growth. These countries increasingly have companies and workforces that adopt norms and policies promoting innovation, improvement, and accountability systems. Figure 4.6 displays country rankings for performance orientation. Table 4.6 presents communica- tion practices normally associated with high- and low-performance orientation.

FIGURE 4.5

Hierarchy and Egalitarianism across Cultures

Hierarchy

Egalitarianism

S Korea 78

France 77

Germany 67

Italy 66

UK 56

Brazil 55

Japan 55

Mexico 47

China 44

Taiwan 43

Hong Kong 40

USA 39

Netherlands 9

TABLE 4.5

Communication Practices in Egalitarian and Hierarchical Cultures

Egalitarianism Hierarchy

• Decision making is more decentralized. • Protocol based on status is less important

and is reserved for unusually formal business situations.

• Subordinates speak more openly with leaders even during disagreements.

• Subordinates do not take responsibility for the mistakes of leaders.

• Leaders are approached directly.

• Decision making is more centralized. • Protocol (use of titles, seating arrangements)

based on status is extremely important. • Subordinates defer to leaders during

disagreements. • Subordinates take blame for and save face

for leaders at all times. • Leaders are approached through

intermediaries.

FIGURE 4.6

Performance Orientation across Cultures

High- Performance Orientation

Low- Performance Orientation

Hong Kong 79

S Korea 70

Netherlands 66

USA 65

France 64

Germany 64

China 61

Taiwan 55

Japan 52

UK 48

Brazil 45

Mexico 37

Italy 19

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Hallmarks of high-performance orientation are competition and discipline. These attributes are often instilled through school systems, as Ghosn explained about his upbringing in the Jesuit education system:

In their educational philosophy, discipline is very important, and competition equally so. There’s a constant challenge, a grading system that encourages students to outdo one another. After all, the Jesuit order was the first multinational company in the world. . . . I learned a lot from the Jesuits, and by the time I graduated I had a firm sense of discipline and organization, along with a taste for competition and a job well done. 39

Future Orientation Future orientation (FO) involves the degree to which cultures are willing to sacrifice current wants to achieve future needs. Cultures with low FO (or present-oriented cul- tures) tend to enjoy being in the moment and spontaneity. They are less anxious about the future and often avoid the planning and sacrifices necessary to reach future goals. By contrast, cultures with high FO are imaginative about the future and have the disci- pline to carefully plan for and sacrifice current needs and wants to reach future goals. 40 In future-oriented societies, many organizations create long-term strategies and business plans. Furthermore, they use these strategies and plans to guide their short- term business activities. By contrast, in present-oriented societies, organizations are less likely to develop clear long-term strategies and business plans. Moreover, they rarely focus short-term activities on long-term plans, even when they exist. Future orientation within organizations is a strong predictor of financial performance. High- FO cultures plan extensively for crises and unforeseen contingencies, whereas low-FO cultures take events as they occur. 41 Figure 4.7 displays country rankings for future orientation. Table 4.7 presents communication practices normally associated with high and low future orientation.

TABLE 4.6

Communication in High-Performance and Low-Performance Societies

High Performance Low Performance

• Emphasize results more than relationships • Prioritize measurable goals and objectives in

meetings and communications • View feedback as essential to improvement • Explicitly talk about financial incentives • Value statements of individual accountability • Expect urgency in communications and

emphasize deadlines

• Emphasize relationships more than results • Discuss goals and objectives casually without mechanisms for measuring

them • View feedback as judgmental and uncomfortable • De-emphasize financial incentives; consider this motivation inappropriate • Value expressions of loyalty and sympathy • Show a relaxed view of time and view overemphasis on deadlines as

pushy

FIGURE 4.7

Time Orientation across Cultures

High Future Orientation

Low Future Orientation

Netherlands 91

Germany 74

UK 69

Japan 68

USA 59

Brazil 46

S Korea 46

Hong Kong 45

Mexico 38

France 37

China 34

Taiwan 32

Italy 15

TABLE 4.7

Communication Practices in High and Low Future Orientation Cultures

High Future Orientation Low Future Orientation

• Emphasize control and planning for the future • Focus more on intrinsic motivation • Frequently discuss long-term strategies as part of business

communications • Use flexible and adaptive language • Often mention long-term rewards and incentives • Appreciate visionary approaches to business problems

• Emphasize controlling current business problems • Focus more on extrinsic motivation • Rarely discuss long-term strategies as part of communications • Use inflexible and firm language • Often mention short-term rewards and incentives • Prioritize proven and routine approaches to problems

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Assertiveness The level of directness in speech varies greatly across cultures, and this can lead to miscommunication, misinterpretation of motivations, and hard feelings. The cultural dimension of assertiveness deals with the level of confrontation and directness that is considered appropriate and productive. 42 Typically, North Americans and Western Europeans are the most assertive in business situations, whereas Asians tend to be less assertive. The mentality of “say it how it is,” “cut to the chase,” and “don’t sugarcoat it” is emblematic of high assertiveness. Members of highly assertive cultures often view members of less-assertive cultures as timid, unenthusiastic, uncommitted, and even dishonest, since they withhold or temper their comments. On the other hand, members of less-assertive cultures often view members of highly assertive cultures as rude, tactless, inconsiderate, and even uncivilized. 43 In particular, businesspeople notice differences in levels of assertiveness when a yes or no answer is expected. In less-assertive cultures, the answer is sometimes vague; people are expected to read between the lines. As Guy McLeod, president of Airbus China, stated, “In Europe or the States, ‘yes’ means ‘yes,’ so we can work together toward a common goal. Here, ‘yes’ doesn’t always mean ‘yes,’ and ‘no’ doesn’t always mean ‘no.’ . . . One piece of advice I give people about China: Everything is difficult, but everything is possible.” 44 Figure 4.8 displays country rankings for assertiveness. Table 4.8 presents communication practices normally associated with high and low assertiveness.

Humane Orientation Humane orientation (HO) is “the degree to which an organization or society encour- ages and rewards individuals for being fair, altruistic, friendly, generous, caring, and kind.” 45 In high-HO cultures, people demonstrate that others belong and are welcome. Concern extends to all people—friends and strangers—and nature. People provide social support to each other and are urged to be sensitive to all forms of unfairness, unkindness, and discrimination. Companies and shareholders emphasize social re- sponsibility, and leaders are expected to be generous and compassionate. In low-HO cultures, the values of pleasure, comfort, and self-enjoyment take pre- cedence over displays of generosity and kindness. People extend material, financial, and social support to a close circle of friends and family. Society members are ex- pected to solve personal problems on their own. Companies and shareholders focus primarily on financial profits, and leaders are not expected to be generous or com- passionate. 46 Figure 4.9 displays country rankings for humane orientation. Table 4.9 presents communication practices normally associated with high and low humane orientation.

FIGURE 4.8

Assertiveness across Cultures

High Assertiveness

Low Assertiveness

Germany 92

Hong Kong 82

USA 80

Netherlands 77

France 76

S Korea 70

Mexico 66

Brazil 62

UK 60

Italy 52

China 26

Taiwan 21

Japan 21

TABLE 4.8

Communication Practices in High- and Low-Assertiveness Cultures

High-Assertiveness Cultures Low-Assertiveness Cultures

• Emphasize direct and unambiguous language • Uncomfortable with silence and speak up quickly to fill the

silence • Prioritize resolving issues over showing respect to others • Typically express more emotion • Use tough, even dominant, language • Stress equity and use competitive language • Value unrestrained expression of thoughts and feelings

• Emphasize indirect and subtle language • View silence as communicative and respectful • Prioritize showing respect over resolving issues • Typically express less emotion • Use tender and pleasant language • Stress equality and use cooperative language • Value measured and disciplined expression of thoughts and

feelings

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Ghosn enjoyed the humane orientation encountered while working in the United States and Japan:

Those were perhaps the most important years of my professional education. I had to learn how to be an American CEO, which is much different from being a Brazilian-style boss or a European CEO. . . . My education in America was extremely rich: the market, the competition, the mingling of cultures. . . . The United States is a very good training school for learning about customers, and about everything to do with marketing tools and communication. 47

He similarly was grateful to the Japanese during his stay there:

The Japanese are very courteous people, sensitive to the feelings of others. They’ll never speak to you unpleasantly. When they don’t think much of you, they keep quiet. But when they think a lot of you, they tell you. . . . But in any case, during those first months I was spared harsh criticism and negative comments. This was a big help. I didn’t need anyone making my task more difficult. 48

Uncertainty Avoidance Uncertainty avoidance (UA) refers to how cultures socialize members to feel in uncertain, novel, surprising, or extraordinary situations. In high-UA cultures, people feel uncomfortable with uncertainty and seek orderliness, consistency, structure, and formalized procedures. People in high-UA cultures often stress orderliness and consistency, even if it means sacrificing experimentation and innovation. They pre- fer that expectations are clear and spelled out precisely in the form of instructions and rules. People in high-UA cultures prefer tasks with sure outcomes and minimal risk. They also show more resistance to change and less tolerance for breaking rules. 49 In low-UA cultures, people feel comfortable with uncertainty. In fact, they may even thrive, since they prefer tasks that involve uncertain outcomes, calculated risks, and problem solving and experimentation. They often view rules and procedures as hindering creativity and innovation. Members of low-UA cultures develop trust more quickly with people from other groups and tend to be more informal in their interac- tions. They also show less resistance to change, less desire to establish rules to dictate behavior, and more tolerance for breaking rules. 50 Figure 4.10 displays country rank- ings for uncertainty avoidance. Table 4.10 presents communication practices normally associated with high and low uncertainty avoidance.

Gender Egalitarianism Gender egalitarianism deals with the division of roles between men and women in society. In high gender-egalitarianism cultures, men and women are encour- aged to occupy the same professional roles and leadership positions. Women are

FIGURE 4.9

Humane Orientation across Cultures

High Humane Orientation

Low Humane Orientation

Japan 57

China 55

USA 49

Netherlands 40

Mexico 30

Taiwan 29

Brazil 26

UK 25

S Korea 24

Hong Kong 23

Italy 20

France 17

Germany 1

TABLE 4.9

Communication Styles in High and Low Humane Orientation Cultures

High Humane Orientation Low Humane Orientation

• Express greetings, welcome, concern, and appreciation in most interactions

• Consider taking time to talk about feelings as critical

• Volunteer to help others • Smile and display other nonverbal signs of

welcome frequently

• Express greetings and welcome in formal interactions

• Consider taking time to talk about feelings as inefficient

• Help others when asked • Smile and display other nonverbal signs of

welcome infrequently

FIGURE 4.10

Uncertainty Avoidance across Cultures

High Uncertainty

Low Uncertainty

Germany 97

China 74

Netherlands 74

UK 69

France 67

Hong Kong 46

USA 45

Japan 42

Mexico 42

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included equally in decision making. In low gender-egalitarianism cultures, men and women are expected to occupy different roles in society. Typically, women have less influence in professional decision making. However, in societies where gender roles are highly distinct, women often have powerful roles in family deci- sion making. 51 Traditionally, nearly all cultures afforded low professional status to women. In recent decades, however, women have increasingly gained opportunity and status in many cultures. When Ghosn arrived at Nissan, only 1 percent of managers were women. He quickly made it a goal to increase the number of female managers. Now, 5 percent of the managers at Nissan are women, and the goal is to reach 10 percent in the near future. Gender egalitarianism relates not only to equal professional opportunity for men and women, but also to expectations and customs about how men and women should communicate. Growing up, for example, Ghosn was accustomed to letting women walk through doors first. Yet, in Japan, the tradition is for men to enter doors and elevators first. Ghosn discussed how entering elevators in Japan before women re- mained uncomfortable for a long time due to his expectations about gender roles. 52 In Table 4.11 you will find communication practices normally associated with high and low gender-egalitarianism cultures.

Business Values around the World To this point, we have discussed norms, or what cultures actually do. The GLOBE group also surveyed business professionals about values, or what they prefer for work- place culture. Refer to Table 4.12 to see which dimensions each culture prioritizes as their ideal work arrangements. Business cultures around the world show many convergences in terms of values—as a result of globalization and increased develop- ment. Business cultures, in particular, have converged more rapidly than other parts of society.

Table 4.10

Communication Styles in High and Low Uncertainty Avoidance Cultures

High Uncertainty Avoidance Low Uncertainty Avoidance

• Document agreements in legal contracts • Expect orderly communication: keep meticulous records,

document conclusions drawn in meetings • Refer to formalized policies, procedures, and rules as basis

for decision making • Verify with written communication • Prefer formality in the majority of interpersonal business

interactions

• Rely on the word of others they trust rather than contractual arrangements

• Expect casual communication: less concerned with documentation and maintenance of meeting records

• Feel unbound by formalized policies, procedures, and rules when discussing work decisions with others

• Verify with oral communication • Expect informality in most interpersonal business interactions

TABLE 4.11

Communication Practices in High and Low Gender-Egalitarianism Cultures