AN INVESTIGATION OF CULTURAL WORK-RELATED VALUES IN SOUTH KOREA Jennifer Ann Swanson, Dept. of Business Admin., Stonehill College, 320 Washington St., Easton, MA 02357; (508) 565-1349; jswanson@stonehill.edu Kellyann Berube Kowalski, Dept. of Management & Marketing, Charlton College of Business, Univ. of Massachusetts Dartmouth, 285 Old Westport Road, N. Dartmouth, MA 02747; (508) 999-8327; kkowalski@umassd.edu ABSTRACT This working paper focuses on cultural work-related values in the Republic of Korea (South Korea) and their potential affect on multinational operations. More specifically, we discuss cultural values and gender roles in an attempt to increase the success rate of US expatriates working in South Korea and other professionals engaged in international business dealings in South Korea. INTRODUCTION The rapidly growing global marketplace has created many opportunities for American companies. Furthermore, globalization has become an important factor in an organization s success. As more and more companies create strategic alliances and enter into joint ventures in other countries, the frequency of international business transactions and the number of expatriate assignments are steadily increasing (Roy & Dugal, 1999). In particular, the number of expatriates being sent to Asian countries, including South Korea has increased significantly over the past ten years. Since the early 1960s, South Korea has achieved remarkable economic growth. Although South Korea experienced the Asian financial crisis in the late 1990s that exposed certain economic weaknesses and recently had a downturn in consumer spending, they are considered a very solid economy with rapid export growth, moderate inflation, low unemployment, an export surplus, and a fairly equal distribution of income (U.S. Government, 2007). South Korea is a key player in the world economy and is considered one of the world s most technologically and scientifically advanced countries. It is a global leader in electronics and technological products and is successful in car manufacturing, shipbuilding, steel production, robotics, and biotechnology industries (U.S. Government, 2007). The South Korean government opened up their markets after the Asian Financial crisis, ending the dominance of chaebols in the economy. This economic liberalization as well as an incentive program for foreign investors outlined in the Foreign Investment and Promotion Act of 1998 helped spur the growth of foreign direct investment inflows (fdimagazine.com, 2007). Investments have been primarily in the manufacturing and service sectors with electronics, chemicals and automotives being the most attractive to foreign investors in the manufacturing
sector and insurance, financial services, retail and logistics leading in the service sector (fdimagazine.com, 2007). Currently, the United States is the largest foreign investor in South Korea. In addition, talks are underway for creating a free trade agreement between Korea and the US since they are such important trading partners (fdimagazine.com, 2007). Therefore, the ties between the two countries should continue to be strong in the future. The frequency of international business transactions and the number of expatriate workers in South Korea has been steadily increasing and should do so well in the future This study on South Korean values will provide practical information for expatriates (and their families) and those conducting business with South Korea. In addition, it will provide updated information and insight into a fascinating country. EXPATRIATES Unfortunately, many of the international business dealings and expatriate assignments in South Korea may not be entirely successful as many expatriate assignments fail. One study uncovered that anywhere between 16 and 40 percent of all American employees sent abroad to developed nations return from their assignments early and almost 70 percent of employees sent to developing nations return home early (Shay & Bruce, 1997). The International Orientation Resources, a HRM consulting firm, reported that 60 percent of expatriate failures occur due to one of three reasons the inability of the manager to adjust to the new culture, the inability of the spouse to adjust to the new culture, and other family problems (Solomon, 1994). Therefore, successful expatriate placement depends on the expatriate worker s ability to understand and adjust to the new cultural values and norms of his/her host country (Hogan & Goodson, 1990; Flynn, 1995). Therefore, knowledge of the host country, including its culture, is crucial since expatriate workers must be able to adapt and assimilate to their new environment if they are to be effective in the workplace. Furthermore, the family of the expatriate worker must be able to adapt as well. Studying the host country prior to the assignment can help in the assimilation process. Pre-departure training for the expatriate and his/her family can help lead to cross-cultural awareness, sensitivity and adaptability. Crosscultural training and country orientation programs have been cited as critical expatriate success factors, thus improving the adjustment process (Hogan & Goodson, 1990; Katz & Seifer, 1996). CULTURE According to Geert Hofstede, culture can be defined as the collective programming of the mind that distinguishes the members of one group or category of people (i.e., nation) from another (1997: 5). Culture affects the way we think, feel, behave, perceive the world, and behave. Culture helps to determine individual value systems. A value is defined as an individual attribute and is a broad tendency to prefer certain states of affairs over others (Hofstede, 1980: 19). Hofstede s landmark study focused on a culture s affect on values in the workplace. Hofstede (1980) found that nations differed on five main work-related value dimensions: (1) Power
Distance (PDI), (2) Individualism-Collectivism (IDV), (3) Masculinity-Femininity (MAS), (4) Uncertainty Avoidance (UAI), and (5) Long-Term Orientation (LTO) (Hofstede, 1993). Please refer to Hofstede s work for an overview. Hofstede initially analyzed the values of employees in forty different countries across these five dimensions. The position of a country on these dimensions helps us to understand how the society operates, including its management processes in the workplace. These cultural values lead to certain work-related behaviors that have a strong influence on how a company operates, its success, and how it deals with individuals from other cultures. In analyzing South Korea across the value dimensions, Hofstede reported that it has a relatively high power distance (inequality was accepted), is moderately feminine, is highly collectivist, has a low tolerance for uncertainty and risk, and has a long term orientation (Itim International, 2007). The most important values in South Korea pertain to the Uncertainty Avoidance (UAI) dimension and the Individualist-Collectivist (IDV) dimension. This indicates that many South Koreans do not tolerate uncertainty, risk, or ambiguity. To reduce this uncertainty, strict rules, laws, policies, and regulations are adopted in an attempt to control outcomes. Change would not be readily accepted (Hofstede, 1980). Another important value was collectivism which indicates that there are close long-term commitments and relationships between individuals. Although this research will look at culture overall, this initial study focuses on the masculine-feminine dimension the most. Hofstede s results indicate that the Korean culture is somewhat feminine (Hofstede, 1980). However, the score does not indicate a high preference. Therefore, it will be interesting to see how South Koreans score on this dimension given the changes that have taken place in their culture. In contrast to South Korea, Hofstede found that the United States has a low power distance, is masculine, is highly individualist, has a high tolerance for uncertainty and risk, and has a short term orientation (Itim International, 2007). Most Americans have very individualistic attitudes and the bonds between people are quite loose. Americans tend to be more self-reliant in the workplace and expect equality between the ranks. Since uncertainty is tolerated, there are fewer organizational rules need to minimize risk (Hofstede, 1980). The cultural distance or intercultural disparity index (IDI) between South Korea and the United States is quite high. The IDI is based on Hofstede s cultural dimensions and is used to measure the relative distance of two given cultures and therefore the existence of relevant cultural differences. It is the extent to which the culture of the originating region (United States) differs from that of the host region (South Korea). As you can see from the chart on the following page, the IDI between the two countries is quite high. High IDI translates into potential cultural clashes in the workplace since different cultural systems translates into different methods of communicating, different work habits and goals, different decision-making styles, and different motivational methods. As such, leadership behaviors have to be adjusted and adapted to the cultural value systems of the host countries. This further highlights the importance and need for cross-cultural training for those engaged in doing business in South Korea. The final paper will identify appropriate training modules as
well which will be useful for practicing managers in the development of organizational strategies and overall training programs. Chart: Comparison of United States to South Korea [US home country; S. Korea host country] Source: Itim International, Geert Hofstede s Cultural Dimensions, 2007 Although Hofstede s work is highly regarded and widely accepted, a few problems exist. One of the main problems is how dated the information is as data was collected in the late 1960s and early 1970s. As such, it is pertinent to update the cultural research on South Korea as this society has undergone enormous changes since Hofstede s study was conducted. Although this study will not be an exact replication of Hofstede s work, it will explore South Korean values in general and then focus on the masculine-feminine dimension. As mentioned above, South Korea is considered a culture that values feminine qualities, scoring a 39 on the masculinity dimension (on a scale from 0 to 100) with higher scores indicating a more masculine culture. In addition, we will investigate the values of the need for achievement, need for affiliation, and need for power as they are believed to be highly correlated with masculinity and femininity (Roy, 1999). MASCULINITY AND FEMININITY An individual s masculinity or femininity (also termed gender-role orientation) has an effect on how he or she will behave in an organization. Bem (1974) developed the Bem Sex-Role Inventory (BSRI) to measure individual gender-role orientations, which treats femininity and masculinity as completely separate dimensions allowing an individual to be high or low on both values. This is much different from Hofstede s survey, which treated masculinity and femininity as bipolar opposites. The characteristics listed for masculinity and femininity by Bem (1974) are similar to those used by Hofstede (1980) in his research. Gender-role orientation can affect an individual s flexibility, leadership abilities, group behavior, gender stereotypes, and occupational choice. As such, an individual s gender-role orientation can help determine how he or she will behave in the workplace. Given the importance of gender-role orientation in the workplace, it is important to investigate this dimension in South Korea. Since Hofstede s culture study looked at masculinity and femininity as opposites, each country was
determined to be one or the other. Our study incorporates Bem s work and therefore the country and individuals within it can be classified as masculine, feminine, androgynous, or undifferentiated. Based on the findings from Hofstede s work and the work related to the gender-role orientation, one might expect that the majority of individuals in South Korea are feminine in their value structure on the Bem Scale. However, this may not be the case given the dramatic changes over the past few decades in South Korea. As such, it is important to measure this characteristic. NEED FOR ACHIEVEMENT, AFFILIATION, AND POWER Two related values to masculinity and femininity are the need for achievement and the need for affiliation. Individuals who are masculine tend to have a high need for achievement whereas those individuals who are feminine are more likely to have a high need for affiliation (Roy, 1999; Hofstede, 1980). The same may hold true for the country level of analysis. Countries that value feminine traits tend to have a higher percentage of their population reporting a high need for affiliation whereas those cultures that have been classified as masculine tend to have a higher number of people with a high need for achievement. According to David McClelland s Acquired Needs Theory (also called Learned Needs Theory), individuals are motivated by needs that are socially acquired or learned from their culture (McClelland, 1961). McClelland's research identified three types of needs that motivate individuals. The three needs that motivate workers include the need for achievement, the need for affiliation, and the need for power. Adults are assumed to possess all three categories of needs to one degree or another; however, one of the motives is usually dominant. Achievement orientation is a concern for performing well or for striving for a standard of excellence (The Center for Leadership Excellence, 1995: 20). Individuals with a high need for achievement behave in ways to improve job performance and strive to do tasks faster and more efficiently (Spencer, McClelland, & Spencer, 1994). They focus on personal achievements rather than on the rewards of success. They set challenging goals for themselves and are continuously focused on finding ways to do things better (The Center for Leadership Excellence, 1995). This focus on continuous improvement could lead to higher quality goods and services and increased organizational productivity (Spencer et al., 1994). Companies with a large number of employees with a high need for achievement grow faster and are more profitable. The need for affiliation is characterized by a desire to belong, an enjoyment of teamwork, a desire for friendly and close interpersonal relationships, and a need to reduce uncertainty. These individuals are interested in social relationships and prefer cooperative rather than competitive work environments. As managers, highly affiliative individuals may be reluctant to monitor the behavior of subordinates, give negative feedback to others, or discipline their subordinates. The need for power is characterized by a drive to control and influence others, a need to win arguments, a need to persuade and prevail. Individuals motivated by power are concerned about their impact on other people - convincing someone of their point of view or empowering others around them, and finding ways to connect with and influence powerful people.
Given the relationship between gender-role orientation and McClelland s needs, it is pertinent to include them in our study. As stated earlier, the need for affiliation is considered to be feminine in nature. In addition, it has been found that the need for achievement is considered to be masculine in nature and the need for power, by definition, should also be more masculine. METHODOLOGY In order to measure the dimension of masculinity-femininity and the related values of the motivating needs for achievement and affiliation, surveys were administered to both female and male students at a large university in Seoul, South Korea. In addition, general societal values were also measured. The overall survey included a detailed participant data sheet to collect information on demographic variables (i.e., sex, age, ethnicity, international influences throughout life, and work experience) and questionnaires to assess general values (Rokeach Value Scale or RVS), gender-role orientations (Bem Scale Short Form or BSRI), and motivating needs (Personal Values Questionnaire or PVQ). Gender-Role Orientation Questionnaire Bem Sex Role Inventory The Bem Sex-Role Inventory (Short Form) published by Consulting Psychologists Press, Inc. was administered to categorize individuals as masculine, feminine, androgynous, or undifferentiated in their gender-role orientations. Motivating Needs of Achievement and Affiliation Personal Values Survey The need for achievement, the need for affiliation, and the need for power were measured through the Personal Values Questionnaire, which was developed by McClelland for McBer and Company (1993). Ten questions relate to the need for affiliation, ten questions relate to the need for achievement, and ten questions relate to the need for power. Societal Values Rokeach Value Survey In addition, the Rokeach Value Survey (RVS) was administered to get an overview of the cultural values present in South Korea. Rokeach (1973) designed this instrument to measure personal and social values. The RVS distinguishes two types of values, instrumental and terminal. Instrumental values refer to preferred modes of behavior while terminal values refer to desired end states of existence. At this point, the data has been collected but not fully analyzed. Preliminary results seem promising and we believe that the completed manuscript will provide valuable information. There is a need for more research on South Korean cultural and personal values and the implications related to them. There is much evidence that different personal, cultural, and work values cause communicative challenges and misunderstandings. Different value systems often manifest themselves in different work habits and expectations from an employer/employee relationship. Decision making styles, motivation techniques, leadership behaviors, etc. will all be influenced by the value systems of those involved. This research seeks to further the understanding of the South Korean value system and will prove useful for practicing US managers in the development of organizational strategies and training programs. References Available Upon Request