Unit 4 Managing across cultures

Discussion:
1. What are the differences between Western and Eastern cultures?
2. What do you think is Vietnamese business culture?
3. As an MNC manager, what do you think are the best ways to deal with the problem of cultural differences at
work?
1. Differences in cultures
1.1 Low context vs high context communication
Low-context cultures
Low-context cultures, such as Germany, the US and Australia, rely on direct communication and the use of concrete
language to get a point across, more of the information in a message will be spelled out and defined. “They say what
they think and think what they say.”
Cultures with Western European roots are generally considered to be low-context cultures. Most low-context cultures
will speak openly and will find it acceptable to express anger, frustration or discontent.
High-context cultures
High-context cultures, such as Japan and China, rely more on indirect, non-verbal communication. These cultures
will prefer to maintain an overall harmony and avoid conflict at all costs. In fact, Asian cultures are built on a
Confucian notion of social harmony and strict hierarchy, straight talk is avoided at all costs since it conveys “losing
face”.
The concept of “losing face” is at the core of Chinese culture. When you lose face, it means your ability to function
as part of the social order has been damaged. You have lost influence and injured your reputation. Thus, in China
criticizing a work colleague in front of other team-members is unthinkable. Criticism is saved for private interactions
instead, and is often delivered through a third party.

1.2 The importance of hierarchy

The figure of the director, CEO or leader in every company is seen differently depending on the culture you were
brought up in. Cultural differences in the perception of leadership styles can create unexpected misunderstandings.
Eastern and Western cultures have a different perception of power and power distance. Eastern cultures tend to have
a very hierarchical structure, where Western cultures are more egalitarian.
“Western cultures value independence and tend to promote individuals who are task orientated and individualistic.”
A Western employer would like his or her employees to show initiative and show their own personal skills. On the
other hand, an Asian leader will focus on collective achievements and will expect his or her employees to respect the
hierarchical structure of the company by being loyal to the company and working as a group.
1.3 Individualism vs. Collectivism

1
Collectivist cultures are usually contrasted with individualistic cultures. Collectivism stresses the importance of the
community, while individualism is focused on the rights and concerns of each person. Where unity and selflessness
or altruism are valued traits in collectivist cultures, independence and personal identity are promoted in
individualistic cultures.
1.4. Uncertainty Avoidance
The cultural dimension named "uncertainty avoidance" also emerged from the research as very important. It is "the
extent to which a society, organization, or group relies on social norms, rules, and procedures to alleviate the
unpredictability of future events"
Some characteristics of societies that have high and low uncertainty avoidance orientation HIGH UNCERTAINTY
HIGH UNCERTAINTY AVOIDANCE societies have characteristics such as...
 Use formality in interactions with others.
 Are orderly and keep meticulous records.
 Rely on formalized policies and procedures.
 Take moderate, carefully calculated risks.
 Show strong resistance to change.
LOW UNCERTAINTY AVOIDANCE societies have characteristics such as...
 Use informality in interactions with others.
 Are less orderly and keep fewer records.
 Rely on informal norms for most matters.
 Are less calculating when taking risks.
 Show only moderate resistance to change.
2. Managing Cultural Differences problem
2.1 Appreciating Cultural Values
Communication problems often derive from basic differences in values between cultures. For example, Latin
American, Asian and Mediterranean cultures often communicate as much through facial expression and tone of voice
as through words. On the other hand, English-speaking and Germanic cultures normally state the intended meaning
explicitly. Another difference among cultures is the importance of emotion.
For example, in Japan and the U.K. people tend to avoid the outward show of feelings, while the United States,
France and Italy accept a stronger show of emotions, even in business.
2.2 Going Face to Face
You can unknowingly cause offence when meeting foreign clients one-on-one. In Japan, you should bow rather than
shake hands unless the other party offers a hand first. The exchange of business cards is a requirement in many
cultures. In Arab countries, you should accept the card with your right hand, while in China and Japan you should
use both hands. In China, you can show respect by taking a Chinese name. In Brazil, business acquaintances stand
close to build trust, so backing away may be construed as a rebuff.
2.3 Understanding Language Differences
Language differences present a common stumbling block in international business communication. Whenever one
party is using a second language or a translator, the potential for misunderstandings increases. Even if you're
bilingual, slang, jokes and figures of speech can cause problems. Try speaking slowly and clearly in these
circumstances. If you're giving an oral presentation, a clear handout in simple language helps avoid
misunderstandings.
2.4 Giving Gifts – or Not
Gift-giving etiquette is a complex subject that can be difficult to master. In China, gifts are the norm and expected,
while in other countries, the wrong gifts are insulting. Avoid bringing bad luck in China – don't give a clock or a gift
with blue, white or black wrapping paper. Keep offering your gift, because Chinese recipients usually refuse three
times before accepting.

2
If you comply with a request for a bribe in any country, corruption charges are a likely complication. It's illegal for
U.S. nationals to bribe foreign officials, although sometimes gifts legal in the host country are allowed.
2.5 Meeting Expectations
Following local customs builds better relationships at business meetings. For example, Canadians are clock-watchers
and expect everyone to arrive on time. In Japanese meetings, often only the most senior person for each side talks,
while others typically remain silent. In China, business dinners often include many toasts, so pace your drinking
accordingly. To maintain the respect of Asian contacts, avoid etiquette mistakes that cause you to lose face.