Practice of Leadership Presenters:

Ambassador Kamal Todd Crawford

T.A. Jacek Hurkula Edyta Jasinska

20 February 2001

International Dimensions of Organizational Behavior

By: Nancy J. Adler

Chapter 4: Creating Cultural Synergy (pp. 96-119)

Bhinneka Tungall Ika E Pluribus Unum (Unity Through Diversity) (Out of Many are One)

National Motto of Indonesia Motto on all coins in the USA

Essence of the Chapter:

From this chapter, you should understand how to successfully work, function, and manage in culturally diverse areas.

I.  Is culture Visible?

A.  managers cannot see culture, it is an intangible object that must be understood and managed properly for success. Many times, we do not understand, or realize the importance of that diversity plays: diversity effects a society.

B.  Study in Montreal, Quebec:

-----largest speaking English speaking population in French dominated province of Quebec

-----2/3 of those questioned on the effects of diversity stated that this diversity played no effect on the population

------1/3 stated that the effects diversity are felt

IMPORTANCE: this study showed that many people fail to understand that diversity does in fact affect all societies, especially due to the increase of international business transactions

II.  What is cultural blindness?

A.  Cultural diversity does exist, and affects daily actions

B.  Certain nations discourage looks at cultural diversity: Example: South Africa (“…interest in cultural diversity is offensive”)

C.  Ignoring cultural differences is unproductive; judge on productivity, since all people are inherently similar, but different at the same time. No person is better than another, rather different.

D.  Blindness is both perceptual and conceptual: therefore, we should want to see differences, and see a new light.

III.  Diversity Unfortunately Causes Problems:

A.  Often times, when we make culture visible, problems result. Focus on the positive aspects of diversity and manipulate those differences to remove the misconceived negative aspects. Many times we chose the easy way out and do not acknowledge differences around us: multiply the positives.

B.  Problems begin when others force each other to think and act alike, usually during times of crisis and pressure.

C.  Examples:

Baby food in Africa: Africans saw a picture of a baby and thought there was ground up baby inside; therefore, sales dropped.

In a deal between Swiss and Japanese companies, problems resulted due to the language barriers, the Swiss’ reluctance to understand Japanese, and the long distances between them.

An American company attempted to design a system to organize historical medical data in Europe; but, was unable to complete its task, due to the numerous cultures involved.

IV.  Advantages with Diversity:

A.  Used properly, diversity yields more advantages, than setbacks. It is most useful when a organization desires expansion through new and unique approaches.

B.  Flexibility allows for new ideas and perspectives: Group Think (2+2=5)

C.  Diversity is a resource and not a liability:

a)  New products are created, which beat competition

b)  Acceptance of new ideas leads to success

c)  Increased communication and cooperation

d)  Neutrality: when a problem results from diversity, use a third party

X.  Recognize these Advantages:

A.  Use diversity to maximize resources and increase the success of your product/service to the public at large. The more diverse your clients, the more diverse your corporation should be, so that advantages are realized.

XI.  Strategies to Manage Diversity:

A.  The extent that managers recognize their surrounding diversity determines the way management will manage diversity.

B.  Three types of people:

a.  Parochial: They state that diversity has no effect and ignore their impact on society. They acknowledge that problems exist, but not due to diversity.

b.  Ethnocentric: They state that diversity causes problems, and that the workforce should be monocultural, since this would eliminate problems.

c.  Synergistic: They state that diversity leads to both problems and advantages, calling for the training of managers to acknowledge differences. This training would increase advantages and lead to greater success.

XII.  Cultural Synergy:

A.  Definitions

i.  Def. # 1 – Synergy involves “a new way of thinking…which helps to free one from outdated patterns and can break the shell of permitted ignorance”.

ii.  Def. # 2 – Synergy is “the behavior of whole systems that cannot be predicted by the behavior of any parts taken separately…”

B.  Assumptions

Common Assumptions More Appropriate Assumptions
Homogeneity – we are all Heterogeneity – Cultural pluralism
the same. We’re not the same.
Similarity - “They” are all Similarity and – “They are not just
like me. Differences like me.
Parochialism – One way is Equifinality – Our way is not the
the only way. only way.
Ethnocentrism – Our way is Cultural - Our way is one the best way. Contingency possible way.

C. Problem Solving

i.  Describe the situation using yours and others cultural perspectives.

Ex. Westerners often see life as a series of problems to be resolved, whereas non-Westerners frequently view life as a series of situations to be accepted. Americans therefore define situations as problems much earlier than do the Japanese.

Ex. Canadians often use a lawyer’s service to finalize an agreement, while Egyptians depend on a personal relationship developed between bargaining partners.

v  Global managers must recognize that a potential problem may exist even when the problem does not make sense from their own cultural perspective.

ii.  Determine the underlying cultural assumptions and assess cultural overlaps.

Ex. Persians place high importance on friendship relative to task accomplishment. Americans base their system on competence rather than on competence and relationship.

v  All behavior is rational and understandable from the perspective of the person behaving; however, our culturally based perspectives and biases often lead us to misunderstand the logic of other cultures’ behavioral patterns.

iii.  Create culturally synergistic alternatives, select an alternative, and implement culturally synergistic solutions.

Ex. Although, the Uruguayan doctor instructed the Filipino nurse on the correct way of administering a treatment, she still continued to administer the treatment improperly.

v  Culturally synergistic solutions should be novel and transcend the behavior patterns of each of the root cultures.

C.  Approaches

i.  Cultural synergy involves a process in which managers form organizational strategies, policies, structures, and practices based on, but not limited to, the cultural patterns of individual organization members and clients.

ii.  This approach recognizes both the similarities and the differences among the cultures that compose a global organization and suggests that we neither ignore nor minimize cultural diversity, but rather that we view it as a resource in designing and developing organizational systems.

1. Cultural Dominance

  1. Historically used frequently among companies usually of considerable size.
  2. On an individual level, used when managers believe that their way is the only right way.

Ex. American manager refused to accept a gift from a Korean client because considered as a form of bribery. Korean was confused because to him it only represented a form of relationship building.

2. Cultural Accommodation

  1. Rather than attempting to maintain one’s own home country practices when working abroad, managers attempt to imitate the practices of the host culture.
  2. Managers who learn the local language of countries in which they work are using a cultural accomodation strategy.

Ex. German manager spent his business trip in Japan playing golf and dining with his potential client. He got the contract.

3. Cultural Compromise

  1. Combination of the first two approaches
  2. Both sides concede something in order to work more successfully with each other.

Ex. French and Russian potential partners held

meetings alternately in Moscow and Paris so both sides had to travel to half the meetings.

4. Cultural Avoidance

  1. A choice to act as if there are no differences – to act

as if no conflict exists.

  1. Managers use this approach most often when the

unresolved issue is less important than the overall

relationship or contract.

Ex. In a contract between the Malaysians and

the Americans, certain things regarding health

benefits were not discussed, however, they

were assumed to be included by the Malaysians.

Americans decided not to confront the issue

because the contract was more beneficial to

them.

5. Cultural Synergy

i. Develops new solutions to problems that respect each

of the underlying cultures but differ from what would

be needed in a purely domestic situation.

Ex. When Norwegians and Austrians choose to

speak in English while conducting negotiations.