Applications of Cross Cultural Psychology for Global Organizations

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1 Applications of Cross Cultural Psychology for Global Organizations University of Bonn November 13, 2007 Barbara Heller, Ph.D. Heller Consulting

2 Roadmap 1. Theory of Culture 2. Intercultural Differences USA - Germany 3. Q&A

3 Culture Defined Culture is a set of human-made objective and subjective elements that in the past have increased the probability of survival and resulted in satisfactions for the participants in an ecological niche, and thus became shared among those who could communicate with each other because they had a common language and they lived in the same time and place. (Triandis, 1994)

4 Culture is like water to a fish... like the wind... to society what memory is to individuals. (Kluckhohn)... the human-made part of the environment. (Herskovits)... the software of the mind. (Hofstede)

5 How does culture affect us? Culture Behaviors Worldview Values Perceptions

6 Behaviors reflect values Different cultures interpretations of behaviors values

7 Stereotype Shared standardized mental picture Oversimplified opinion, emotional attitude, or uncritical judgement

8 Ethnocentrism My values and behaviors are right, natural, and normal. Different values and behaviors from a different culture are therefore wrong, unnatural, and abnormal.

9 Culture differences can surprise even the most seasoned traveler... Fancy Hotel Bomby x We are confirming your room reservation. We have no room available.

10 Truth and Culture We talk about the eastern world and the western world... but where is the center? Is the opposite of a great truth also a great truth? Do all major religions reflect the same great truth? Is one cultural way better than the others?

11 Dimensions of Culture Patterns of beliefs, norms, values, attitudes, or self-definitions, organized around a theme. 1. Individualism/Collectivism 2. Direct/Indirect Communication 3. Locus of Control 4. Attitude Toward Uncertainty 5. Attitude Toward Time

12 Dimension 1: Individualism Smallest unit of survival = individual Identify primarily with self Needs of self met before needs of social group Being self-sufficient is key Children taught to stand on their own two feet Personal recognition & freedom are desired, desirable Join groups, but identity isn t determined by membership

13 Dimension 1: Collectivism Smallest unit of survival = primary group (i.e., family) Identity determined by membership in groups (social/familial) Group survival ensures well-being of individual Harmony and interdependence are key Children taught to rely upon others Standing out from the crowd, personal recognition are undesirable & uncomfortable Protect yourself by protecting the group

14 Individualism - Collectivism US Germany UK Italy France Austria Spain Japan, India Turkey Mexico Singapore China Venezuala Ind. Col.

15 Individualism/Collectivism: Business Implications and Issues Leadership Presentations Teamwork Communication

16 Dimension 2: Direct Communication People say what they mean and mean what they say Telling it like it is is valued No need to imply or read between the lines Yes means yes There s no need to soften statements of fact or opinion

17 Dimension 2: Indirect Communication People don t always say what they mean or mean exactly what they say More likely to imply or suggest than say things directly Not upsetting others or causing them to lose face is more important than saying what you think Don t say anything that could be interpreted as impolite Yes might mean maybe or yes, I heard you, rather than yes, I agree with you

18 Direct-Indirect Communication Germany US France UK India Mexico China Japan Direct Indirect

19 Direct/Indirect Communication: Business Implications and Issues Leadership Feedback Presentations Teamwork

20 Dimension 3: Internal Locus of Control Control over what happens to you is located within yourself Very few givens which must be accepted as they are, which cannot be changed No limits on what you can do or become, as long as you set your mind to it and work hard Success = personal achievement You are responsible for what happens to you Life is what you do; Internal LOC cultures are very active

21 Dimension 3: External Locus of Control Control over what happens to you located outside yourself; you mostly don t control your fate, life, destiny Certain things can t be changed, must simply be accepted That s just the way things are Success = good luck + effort Most things in life are predetermined Life is something that happens to you; Internal LOC cultures are fatalistic

22 Internal-External Locus of Control US Germany UK Japan France India, China Mexico Internal External

23 Internal/External LOC: Business Implications and Issues Leadership Customer Relations Presentations Communication

24 Dimension 4: Positive Attitude Toward Uncertainty Not afraid of taking risks and failing Learn, improve by trial & error, controlled experiments Different, new = interesting, exciting, challenging, often better Change is positive, natural part of life Tradition not valued for it s own sake (nor disregarded), doesn t prohibit change -- build on it The way we ve always done it is open for change, discovery What we don t know can t hurt us

25 Dimension 4: Skeptical Attitude Toward Uncertainty Avoid risk; strong negative consequences of risk + failure Be certain something new will work before trying it Different = possibly dangerous Change is threatening, new isn t necessarily better Traditions should be respected: guideline for the future We ve always done it that way for a good reason; don t mess with success What we don t know may be troubling, dangerous

26 Attitude Toward Uncertainty Singapore Sweden UK US Germany Austria Mexico France Japan Greece Positive Skeptical

27 Positive/Skeptical ATU: Business Implications and Issues Leadership Projects Marketing Presentations

28 Dimension 5: Monochronic Attitude Toward Time Do one thing at a time Time is a commodity: quantifiable, limited Use time wisely; don t waste it Efficiency is key; sense of urgency Time is the given; people are variable. Adjust people s needs to fit the demands of time Don t let circumstances, unforeseen events, interfere with plans Interruptions are a bother

29 Dimension 5: Polychronic Attitude Toward Time Do several things simultaneously, as required by circumstances Time is limitless: not quantifiable There is always more time - never too busy Time is the servant, tool of people, adjusted to suit their needs Schedules and deadlines often get changed Not necessary to finish one thing before starting another Must take circumstances into account and adjust No such thing as an interruption

30 Attitude Toward Time Germany US Austria UK Japan US France Mexico Polychronic Monochronic

31 Monochronic/Polychronic: Business Implications and Issues Leadership Projects Teamwork Marketing

32 Questions & Answers US Culture, Facts Organizational Psychology Practice Other questions?

33 Thank you! For more information, visit

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