Cross Cultural Study

Chapter 1

1. Discuss the primary Characteristics of Culture.

Culture is the collection of values, beliefs, behaviors, customs, and attitudes that distinguish one
society from another. A society’s culture determines the rules that govern how firms operate in the
society. Several characteristics of culture are worth noting for their relevance to international
business:

● Culture reflects learned behavior that is transmitted from one member of a society to another.
Some elements of culture are transmitted intergenerationally, as when parents teach their children
table manners. Other elements are transmitted intragenerationally, as when seniors educate
incoming freshmen about a school’s traditions.

●The elements of culture are interrelated. For example, Japan’s group-oriented, hierarchical society
stresses harmony and loyalty, which historically translated into lifetime employment and minimal
job switching.

● Because culture is learned behavior, it is adaptive; that is, the culture changes in response to
external forces that affect the society. For example, after World War II, Germany was divided into
free-market-oriented West Germany and communist-controlled East Germany. Despite their having
a common heritage developed over centuries, this division created large cultural differences
between Ossis (East Germans) and Wessis (West Germans). The differences resulted from
adaptations of the East German culture to the dictates of communist ideology regarding attitudes
toward work, risk taking, and fairness of reward systems.

We learn and adapt to new environment.

Example 1 - university life than move on to organizational environment or organization culture.
Example 2 - secondary school life than move on to university life. The dress code, duration of classes
and the environment of study are different. Punctuality of secondary school is higher than
university.

● Culture is shared by members of the society and indeed defines the membership in the society.
Individuals who share a culture are members of a society; those who do not are outside the
boundaries of the society.

2. Describe the various elements of culture and provide examples of how they influence
international business.

A society’s culture determines how its members communicate and interact with each other. The
basic elements of culture are social structure, language, communication, religion, and values and
attitudes. The interaction of these elements affects the local environment in which international
businesses operate.

Language is a primary delineator of cultural groups because it is an important means by which a

society’s members communicate with each other. To conduct business, international businesspeople
must be able to communicate. The presence of more than one language group is an important signal
about the diversity of a country’s population and suggests that there may also be differences in
income, cultural values, and educational achievement. For instance, India recognizes 16 official
languages, and approximately 3,000 dialects are spoken within its boundaries, a reflection of the
heterogeneity of its society. In several mountainous countries of South America, including Bolivia,
Paraguay, and Peru, many poor rural residents speak local Indian dialects and have trouble
communicating with the Spanish-speaking urban elites. Generally, countries dominated by one
language group tend to have a homogeneous society, in which nationhood defines the society, Eg:
Arab, Thailand and Indonesia. Countries with multiple language groups tend to be heterogeneous,
with language providing an important means of identifying cultural differences within the country.

Savvy businesspeople operating in heterogeneous societies adapt their marketing and business
practices along linguistic lines to account for cultural differences among their prospective customers.
Example 1, market researchers discovered that English Canadians favor soaps that promise
cleanliness, whereas French Canadians prefer pleasant- or sweet-smelling soaps. Thus, Procter &
Gamble’s English-language Canadian ads for Irish Spring soap stress the soap’s deodorant value,
while its French-language ads focus on the soap’s pleasant aroma.

Generally, advertisers should seek out the media—newspapers, radio, cable television, and
magazines—that allow them to customize their marketing messages to individual linguistic groups.
Example 2, in the United States the development of Spanish-language television networks such as
Univision and Telemundo has allowed advertisers to more easily customize their advertisements to
reach the Hispanic market, without confusing their marketing messages to the larger, English-
speaking audience.

(A) Language as a Competitive Weapon because the ability to communicate is so important in

conducting business transactions. Commerce among Australia, Canada, New Zealand, the United
Kingdom, and the United States is facilitated by their common use of English. India and Singapore,
have adopted English as an official language to facilitate communication among the diverse groups.
Similarly, firms with managers from many different countries may use English as the official
corporate language. For example, Philips, the Dutch-based electronics MNC, has used English for
intracorporate communications since 1983.
Firms can reduce the chances that they are sending the wrong message to their customers by using a
technique known as backtranslation. With backtranslation, one person translates a document, then
a second person translates the translated version back into the original language. This technique
provides a check that the intended message is actually being sent, thus avoiding communication
mistakes.

(B) Communication. Communicating across cultural boundaries, whether verbally or nonverbally, is

a particularly important skill for international managers. Although communication can often go awry
between people who share a culture, the chances of miscommunication increase substantially when
the people are from different cultures. In such cases, the senders encode messages using their
cultural filters and the receivers decode the same messages using their filters. The result of using
different cultural filters is often a misunderstanding that is expensive to resolve.

Nonverbal Communication. Members of a society communicate with each other using more than
words. In fact, some researchers believe 80 to 90 percent of all information is transmitted among
members of a culture by means other than language. This nonverbal communication includes facial
expressions, hand gestures, intonation, eye contact, body positioning, body posture and stance,
touching, interpersonal distance, graphic symbols. In the United States, for example,
businesspersons often greet colleagues, customers, or suppliers with a handshake. In Brazil, hugs,
backclasps, and cheek-kisses, as well as handshakes, would be expected, depending on the gender,
length of relationship, and level of trust between the two individuals.

Gift-giving and hospitality are important means of communication in many business cultures.
Japanese business etiquette requires solicitous hospitality. Elaborate meals and after-hours
entertainment serve to build personal bonds and group harmony among the participants. These
personal bonds are strengthened by the exchange of gifts, which vary according to the occasion and
the status of the giver and the recipient. For example, Japanese open gift in private whereas Arab
open gift in public.

Norms of hospitality even affect the way bad news is delivered in various cultures. In the United
States bad news is typically delivered as soon as it is known. In Korea it is delivered at day’s end so it
will not ruin the recipient’s whole day. Further, in order not to disrupt personal relationships, the
bad news is often only hinted at. In Japan maintaining harmony among participants in a project is
emphasized, so bad news often is communicated informally from a junior member of one
negotiating team to a junior member of the other team. Even better, a third party may be used to
deliver the message to preserve harmony within the group.

(C) Religion is an important aspect of most societies. It affects the ways in which members of a
society relate to each other and to outsiders. The world’s population adheres to one of four
religions: Christianity (31.5 percent), including Roman Catholics, Protestants, and Eastern Orthodox;
Islam (23.2 percent); Hinduism (15.0 percent); and Buddhism (7.1 percent). Religion shapes the
attitudes its adherents have toward work, consumption, individual responsibility, and planning for
the future. Religion affects the business environment in other important ways. Often religions
impose constraints on the roles of individuals in society. For example, the caste system of Hinduism
traditionally has restricted the jobs individuals may perform, thereby affecting the labor market and
foreclosing business opportunities.26 Countries dominated by strict adherents to Islam, such as
Saudi Arabia, limit job opportunities for women, in the belief that their contact with adult males
should be restricted to relatives. Religion also affects the types of products consumers may purchase
as well as seasonal patterns of consumption. In most Christian countries, for example, the Christmas
season represents an important time for gift-giving. The impact of religion on international
businesses varies from country to country, depending on the country’s legal system, its homogeneity
of religious beliefs, and its toleration of other religious viewpoints.

Culture also affects and reflects the secular values and attitudes of the members of a society. Values
are the principles and standards accepted by the members; attitudes encompass the actions,
feelings, and thoughts that result from those values. Cultural values often stem from deep-seated
beliefs about the individual’s position in relation to his or her deity, the family, and the social
hierarchy. Cultural attitudes toward such factors as time, age, education, and status reflect these
values and in turn shape the behavior of and opportunities available to international businesses
operating in a given culture.

Attitudes about time differ dramatically across cultures. Time represents the opportunity to produce
more and to raise one’s income, so it is not to be wasted.
Example 1, if a meeting is scheduled for 2 p.m., U.S., Canadian, and British businesspeople arrive at
1:55 p.m. and expect the meeting to start promptly at 2 p.m. After exchanging a few pleasantries,
they then get down to business, following a well-planned agenda that has been distributed in
advance to the participants. This is because these countries prevailing attitude is “time is money.”
Example 2, Taruc lecturers and tutor will come on time for the classes.

Important cultural differences exist in attitudes toward age.

Example 1, Youthfulness is considered a virtue in the United States. Many U.S. firms devote much
time and energy to identifying young “fast-trackers” and providing them with important, tough
assignments, such as negotiating joint ventures with international partners.
Example 2, In Asian and Arab cultures, however, age is respected and a manager’s stature is
correlated with age. These cultural differences can lead to problems. For example, many foreign
firms mistakenly send young, fast-track executives to negotiate with government officials of China.
The Chinese, however, prefer to deal with older and more senior members of a firm, and thus may
be offended by this approach.

A country’s formal system of public and private education is an important transmitter and reflection
of the cultural values of its society.
Example 1, U.S. primary and secondary schools emphasize the role of the individual and stress the
development of selfreliance, creativity, and self-esteem. The United States prides itself on providing
widespread access to higher education. Research universities, liberal arts colleges, and community
colleges coexist to meet the educational needs of students with disparate incomes and intellectual
talents.
Example 2, In contrast, the United Kingdom, reflecting its past class system, has historically provided
an elite education to a relatively small number of students. Germany has well-developed
apprenticeship programs that train new generations of skilled craftspeople and machinists for its
manufacturing sector.
Example 3, The Japanese and French educational systems share a different focus. Their primary and
secondary schools concentrate on preparing students to take a nationwide college entrance exam.
The top-scoring students gain entry to a handful of prestigious universities—such as Tokyo
University or Kyoto University in Japan and the five grandes écoles in France—which virtually
guarantee their graduates placement in the most important corporate and governmental jobs in
their societies.

The means by which status is achieved also vary across cultures. In some societies status is inherited
as a result of the wealth or rank of one’s ancestors. In others it is earned by the individual through
personal accomplishments or professional achievements. For example, In Japan a person’s status
depends on the status of the group to which he or she belongs. Thus, Japanese businesspeople often
introduce themselves by announcing not only their names but also their corporate affiliation.
Attendance at elite universities such as Tokyo University or employment in elite organizations such
as Toyota Motor Corporation or the Ministry of Finance grants one high status in Japanese society.

(D) Basic to every society is its social structure, the overall framework that determines the roles of
individuals within the society, the stratification of the society, and individuals’ mobility within the
society. All human societies involve individuals living in family units and working with each other in
groups. Societies differ, however, in the way they define family and in the relative importance they
place on the individual’s role within groups. The American view of family ties and responsibilities
focuses on the nuclear family (father, mother, and offspring). In other cultures, the extended family
is far more important such as Chinese, Indian and Thai people.

These differing social attitudes are reflected in the importance of the family to business. In the
United States, firms discourage nepotism, and the competence of a man who married the boss’s
daughter is routinely questioned by coworkers. In Middle East firms, however, family ties are crucial,
and hiring relatives is a common, accepted practice. Similarly, in China, family members fill critical
management positions and supply of man power and capital from personal savings to ensure the
firms’ growth.
Cultures also differ in the importance of the individual relative to the group. U.S. culture, for
example, promotes individualism. Schools try to raise the self-esteem of each child and encourage
each one to develop individual talents. Conversely, in group-focused societies such as Japan,
children are taught that their role is to serve the group. Virtues such as unity, loyalty, and harmony
are highly valued in such societies. These characteristics often are more important in hiring decisions
than are personal accomplishments or abilities.

Societies differ in their degree of social stratification. All societies categorize people to some extent
on the basis of their birth, occupation, educational achievements, or other attributes. However, the
importance of these categories in defining how individuals interact with each other within and
between these groups varies by society. Multinational corporations (MNCs) operating in highly
stratified societies often must adjust their hiring and promotion procedures to take into account
class or clan differences among supervisors and workers. Hiring members of one group to do jobs
traditionally performed by members of another group may lower workplace morale and
productivity. In less stratified societies, firms are freer to (make decision) seek out the most
qualified employee, regardless of whether that person went to the right school, goes to the proper
church, or belongs to all the best clubs. In highly stratified societies, advertisers must tailor their
messages more carefully to ensure that they reach only the targeted audience and do not spill over
to another audience that may be offended by receiving a message intended for the first group.

Social mobility is the ability of individuals to move from one stratum of society to another. Social
mobility tends to be higher in less stratified societies. Social mobility is higher in US compare to India
and British. Social mobility (or the lack thereof) often affects individuals’ attitudes and behaviors
toward such factors as labor relations, human capital formation, risk taking, and entrepreneurship.
In more socially mobile societies, such as those of the United States, Singapore, and Canada,
individuals are more willing to seek higher education or to engage in entrepreneurial activities,
knowing that if they are successful, they and their families are free to rise in society.

3. Discuss the meaning of Cultural Shock and Reverse Cultural Shock

Working in and coping with a foreign culture can lead to culture shock, a psychological phenomenon
that may lead to feelings of fear, helplessness, irritability, and disorientation. New expatriates may
experience a sense of loss regarding their old cultural environment as well as confusion, rejection,
self-doubt, and decreased self-esteem from working in a new and unfamiliar cultural setting. Culture
shock reduces an expatriate’s effectiveness and productivity, so international businesses have
developed various strategies to mitigate its effects. One simple solution is to provide expatriates
(and their families) with predeparture language and cultural training, so they can better understand
and anticipate the cultural adjustments they must undergo. In addition to straightforward training,
firms also might make initial foreign assignments relatively brief and make sure the expatriates
understand the role each assignment plays in their overall career prospects.

Interestingly, international businesses should pay almost as much attention to repatriation—

bringing a manager back home after a foreign assignment has been completed—as they do to
expatriation. If managers and their families have been successfully expatriated, they become
comfortable with living and working in the foreign culture. Reverse culture shock. The shock
suffered by some people when they return home after a number of years overseas. Returning home
can be almost as traumatic to them as was the original move abroad. One reason for the difficulty of
repatriation is that people tend to assume nothing has changed at home. They look forward to
getting back to their friends, familiar surroundings, and daily routines. Yet their friends may have
moved or developed new social circles, and their coworkers may have been transferred to other
jobs. This can result in unexpected difficulty in readjusting to the culture and values of the home
country, now that the previously familiar become unfamiliar.

4. Explain the Cultural Sensitivity or cultural empathy. How can we improve cultural sensitivity
in our organization?

Cultural Sensitivity is defined as a state of heightened awareness for the values and frames of
reference of the host culture. Managers with higher level of cultural sensitivity tend to be less
narrow-minded in their thinking and are often willing to examine the way management practices
might be implemented in dissimilar cultures. Cultural Sensitivity is an awareness and an honest
caring about another individual’s culture. Such sensitivity requires the ability to understand the
perspective of those living in other (and very different) societies and the willingness to put oneself in
another’s shoes.

Parochialism- Is the belief that there is no other way of doing things except that found within one’s
own culture, that is, that there is no better alternative.

Ethnocentrism- Is similar to parochialism, and tends to reflect a sense of superiority, and

ethnocentric individuals believe that their ways of doing things are the best, no matter which
cultures are involved.

Geocentrism- Different from both, reflects a belief that it is necessary to be responsive to local
cultures and markets.

How to improve Cultural Sensitivity?

Human resource management practice such as training and development of the company managers
towards the knowledge of cultural different, and how to perform and conducting business and to
develop the skills of self-awareness.

Job location rotation for potential global manager to expose them into the differences in term of
culture.
Chapter 2

1. Hofstede’s Five Dimensions

(A) Individualism vs Collectivism
Individualism is the tendency of people to look after themselves and their immediate family
only. Individualist are focus on the term of “I”. Key values of individualistic people include a
high degree of self-respect and independence. These people often put their own career
interests before the good of their organizations, and they tend to assess decisions in terms
of how those decisions affect them as individuals. Occupation mobility is higher, people
often change job and look for more challenging jobs and better pay job. Task prevails over
relationship. The employer and employees relationship is a contract between parties in a
labour market.
Example: United States, the United Kingdom, Australia, Canada, New Zealand, and the
Netherland

Collectivism is the tendency of people to belong to groups or collectives and to look after
each other in exchange for loyalty. Collectivist are focus on the term of “We”. Societies that
tend to be collectivistic are usually characterized by well-defined social networks, including
extended families, tribes, and coworkers. People are expected to put the good of the group
ahead of their own personal welfare, interests, or success. Occupation mobility is lower,
changing jobs are often interpreted as reflecting disloyalty to the collective firm and this may
band the person as unworthy of trust. Relationship prevails over task. The employer and
employees relationship is basically moral, like a family link.
Example: Mexico, Greece, Hong Kong, Taiwan, Peru, Singapore, Colombia, and Pakistan

(B) Power Distance

Power distance is “the extent to which less powerful members of institutions and
organizations accept that power is distributed unequally.” Power distance scores inform us
about dependence relationship in a country.
High Power Distance- People in a culture tend to accept the power and authority of their
superiors simply on the basis of the superiors’ positions in the hierarchy. People at all levels
in a firm accept the decisions and mandates of those above them because of the implicit
belief that higher-level positions carry the right to make decisions and issue mandates.
Countries in which people blindly obey the orders of their superiors have high power
distance. Parent teach children obedience. The salary range between the top and bottom if
the organization is wide. Subordinates are told what to do. Organizations in high-power-
distance countries will tend to be centralized and have tall organization structures.
Organizations have a large proportion of supervisory personnel, and the people at the lower
levels of the structure often will have low job qualifications.
Example: France, Spain, Mexico, Japan, Brazil, Indonesia, and Singapore

Low Power Distance- These people are more willing to question a decision or mandate from
someone at a higher level or perhaps even refuse to accept it. They are willing to follow a
leader when that leader is perceived to be right or when it seems to be in their own self-
interest to do so but not because of the leader’s intangible right to issue orders. Parents
 treat children as equals. . The salary range between the top and bottom if the organization is
narrow. Subordinates are expected what to be consulted. Organizations in low-power-
distance countries generally will be decentralized and have flatter organization structures.
These organizations also will have a smaller proportion of supervisory personnel, and the
lower strata of the workforce often will consist of highly qualified people.
Example: United States, Israel, Austria, Denmark, Ireland, Norway, Germany, and New
Zealand

(C) Uncertainty Avoidance

Uncertainty avoidance is “the extent to which people feel threatened by ambiguous
situations and have created beliefs and institutions that try to avoid in such situations.”
Low Uncertainty Avoidance- people who are more willing to accept that risks are
associated with the unknown and that life must go on in spite of this. Organization settings
with less structuring of activities, fewer written rules, more risk taking by managers, higher
labour turnover, and more ambitious employees. The organization encourages personnel to
use their own initiative and assume responsibility for their actions. Uncertainty acceptance
are stimulated by change and thrive on new opportunities. Ambiguity is seen as a context
within which an individual can grow, develop, and carve out new opportunities. In these
cultures certainty carries with it a sense of monotony, routineness, and overbearing
structure. Uncertainty-accepting cultures are more tolerant of flexible hierarchies, rules, and
procedures. Comfortable with ambiguous situations and with unfamiliar risks. Low stress
and low anxiety.
Examples: United States, Denmark, Sweden, Canada, Singapore, Hong Kong, Australia and
Great Britain.

High Uncertainty Avoidance- Countries with high-uncertainty-avoidance cultures have a

great deal of structuring of organizational activities, more written rules, less risk taking by
managers, lower labour turnover, and less ambitious employees. Uncertainty avoidance
dislike ambiguity and will avoid it whenever possible. Ambiguity and change are seen as
undesirable. These people tend to prefer a structured and routine, even bureaucratic, way
of doing things. Uncertainty-avoiding countries, tend to adopt more rigid hierarchies and
more elaborate rules and procedures for doing business. Fear of ambiguous situations and
unfamiliar risks. High stress and high anxiety
Examples: Austria, Japan, Italy, Colombia, France, Peru, Belgium Spain and Argentina.

(D) Masculinity and Femininity

Masculinity (aggressive goal behaviour) - Masculinity is defined by Hofstede as “a situation
in which the dominant values in society are success, money, and things.” They tend to place
a high premium on material possessions, money, and assertiveness. They tend to define
gender-based roles somewhat rigidly. Individuals are encouraged to be independent
decision makers, and achievement is defined in terms of recognition and wealth. The
workplace is often characterized by high job stress, and many managers believe that their
employees dislike work and must be kept under some degree of control. The school system
is geared toward encouraging high performance. Young men expect to have careers, and
those who do not often view themselves as failures. Historically, fewer women hold higher-
 level jobs, although this is changing. The school system is geared toward encouraging high
performance.
Examples: Germany, Mexico, Italy, and the United States

Femininity (passive goal behaviour) - Femininity is the term used by Hofstede to describe “a
situation in which the dominant values in society are caring for others and the quality of
life.” They place a higher value on social relationships, quality of life, and concern for others.
Women are generally expected not to work outside the home and to focus on their families.
If they do work outside the home, they are usually expected to pursue work in areas
traditionally dominated by women. Individuals are encouraged to be group decision makers,
and achievement is defined in terms of layman contacts and the living environment. The
workplace tends to be characterized by low stress, and managers give their employees more
credit for being responsible and allow them more freedom. Culturally, this group prefers
small-scale enterprises, and they place greater importance on conservation of the
environment. The school system is designed to teach social adaptation. Some young men
and women want careers; others do not. Many women hold higher-level jobs and do not
find it necessary to be assertive.
Examples: Netherlands, Norway, Sweden, Denmark, and Finland

(E) Time Orientation

Time Orientation is the extent to which members of a culture adopt a long-term versus a
short-term outlook on work, life, and other aspects of society.
Long-term Orientation- stands for the fostering of virtues oriented towards future rewards-
in particular, perseverance and thrift. Societies tend to focus on the future. They have the
ability to adapt their traditions when conditions change, have a tendency to save money and
invest for the future, and focus on achieving long-term results. Leisure time is not important.
Investment in lifelong personal network, guanxi.
Examples: China, Japan, Indonesia, Japan, Hong Kong, Taiwan, and South Korea

Short-term Orientation- stands for the fostering of virtues related to the past and present-
in particular, respect for tradition, preservation of “face”, and fulfilling social obligations.
Short-term-oriented cultures focus more on the past and present than on the future. These
societies have a deep respect for tradition, focus on achieving quick results, and do not tend
to save for the future. Individuals in short-term-oriented societies believe in absolutes (good
and evil), value stability and leisure time, and spend money more freely. Traditional
approaches are respected, and feedback cycles tend to be short. Gift giving and greetings
are shared and reciprocated. Leisure time is important. Personal loyalties vary with business
needs.
Examples: Spain, USA, UK, Pakistan, Nigeria, Australia and the Philippines,

2. Halls Framework
High Context Culture (implicitly) - In a high-context culture, the context in which a
conversation occurs is just as important as the words that are actually spoken, and cultural
clues are important in understanding what is being communicated. High-context cultures
place higher value on interpersonal relations in deciding whether to enter into a business
arrangement. In such cultures preliminary meetings are often held to determine whether
the parties can trust each other and work together comfortably. Lawyers are not important.
Lengthy negotiations.
Example: Most Asian, Latin America, Spain, Greek, Middle East countries (Saudi Arabia,
Egypt)

Low Context Culture (explicitly) - Low-context cultures place more importance on the
specific terms of a transaction. In a low-context culture, the words used by the speaker
explicitly convey the speaker’s message to the listener. Lawyers are very important.
Negotiations proceed quickly.
Example: Canada, UK, US, Australia and German
Hall’s Time
Monochronic Time - A monochronic time schedule is one in which things are done in a
linear fashion. A manager will address Issue A first and then move on to Issue B. They do one
thing at one time, careful planning, they have good time management. People tend to be
low context. In these societies, time schedules are very important, and time is viewed as
something that can be controlled and should be used wisely. When doing business in
countries that adhere to monochronic time schedules, it is important to be on time for
meetings. Additionally, these meetings typically end at the appointed time so that
participants can be on time for their next meeting.
Example: United States, Great Britain, Canada, and Australia

Polychronic Time - A polychromic time schedule is which is characterized by people tending

to do several things at the same time and placing higher value on personal involvement than
on getting things done on time. In these cultures, schedules are subordinated to personal
relationships. In polychronic time, human interaction is valued over time and material
things, leading to a lesser concern for getting things done. They do get things done-but more
in their own time. People tend to be high context. When doing business in countries that
adhere to polychronic time schedules, it is common to find business meetings starting late
and finishing late.
Example: Latin America and the Middle East.
Chapter 3

1. Discuss the significant of various forms of communication, such as verbal and nonverbal.
2. Identify the possible barriers to communication across borders and cultures.
(A) Attitudes
We all know that our attitudes underlie the way we behave and communicate and the way
we interpret messages from others. Ethnocentric attitudes are a particular source of noise
in cross-cultural communication. For example, both the Indian and the German are clearly
attempting to interpret and convey meaning based on their own experiences of that kind of
transaction. The German is probably guilty of stereotyping the Indian employee by quickly
jumping to the conclusion that he is unwilling to take responsibility for the task and the
scheduling.
This problem, stereotyping, occurs when a person assumes that every member of a society
or subculture has the same characteristics or traits. Stereotyping is a common cause of
misunderstanding in intercultural communication. How we see other cultures will influence
by our own culture, normally we use our own cultural framework for interpretation which
result a biased view cause stereotypes. It is an arbitrary, lazy, and often destructive way to
find out about people. Astute managers are aware of the dangers of cultural stereotyping
and deal with each person as an individual with whom they may form a unique relationship.

(B) Perception (own view)

Process of receiving information from the external world around us. We decide what kind of
information we should notice carefully, how to categorize the information, and how to
incorporate it into our existing knowledge framework.

(C) Social Organizations

Our perceptions can be influenced by differences in values, approach, or priorities relative to
the kind of social organizations to which we belong. These organizations may be based on
one’s nation, tribe, or religious sect, or they may consist of the members of a certain
profession (happen when there is merger of company).
Examples of such organizations include the Academy of Management or the United Auto
Workers (UAW). PBB, Maybank, CIMB bank go for workshop, they communicate then form a
social organization.

(D) Thought Patterns (everyone see things differently from 2 diff groups)
The logical progression of reasoning varies widely around the world and greatly affects the
communication process. Managers cannot assume that others use the same reasoning
processes, as illustrated by the experience of a Canadian expatriate in Thailand, related in a
book by Harris and Moran:
Example 1: while in Thailand a Canadian expatriate’s car was hit by a Thai motorist who had
crossed over the double line while passing another vehicle. After failing to establish that the
fault lay with the Thai driver, the Canadian flagged down a policeman. After several minutes
of seemingly futile discussion, the Canadian pointed out the double line in the middle of the
road and asked the policeman directly, “What do these lines signify?” The policeman replied,
“They indicate the center of the road and are there so I can establish just how far the
 accident is from that point.” The Canadian was silent. It had never occurred to him that the
double line might not mean “no passing allowed.”
Example 2: Everyone see policeman differently, some respect while some take them easy.
(E) Roles
Societies differ considerably in their perceptions of a manager’s role. Much of the difference
is attributable to their perceptions of who should make the decisions and who has
responsibility for what. Example: German assumes that his role as manager is to delegate
responsibility, to foster autonomy, and to practice participative management. BUT
Malaysian employees will think that the manager is the boss and should give the order when
and how to complete the task.

Role -Differences in Status between the Sender and the Receiver of Communication
Collectivistic people pay more attention to status difference than do people from
individualistic society. Message from high-status individual will be received and paid
attention to more carefully in collectivistic society compare to individualistic society.

In collectivistic society, words that one should use in communication depend a great deal on
the relative status of the parties engaged in communication.
Example: During meeting, Boss call, I accept immediately while colleague call, I ignore

Individualistic society more concerned with the exactness of the content of communication
rather than status different.

(F) Content of Communication

Valued differently in different countries. Emphasis more on building relationship and
building trust.
Compared with individuals from Western cultures, individuals from Middle Eastern cultures-
(Saudi Arabian, UAE, Jordan)-generally place more emphasis on some interpersonal and
social aspects of communication that are not necessarily linked with the central message(s)
that are to be conveyed in the process of communication.

Collectivistic society generally place more emphasis on some interpersonal and social
aspects of communication which is peripheral that are not necessarily linked with the central
message. Example: Building cordial relationship. They will ask for other things first then only
go in their topic.
Individualists prefer to emphasize as well as receive specific aspects of the message that are
immediately relevant for thought or action. They are interested in knowing the exact point
of the message that is necessary for decision making or action. Regards peripheral is a waste
of time.

The issue of developing and maintenance of trust is more important while communicating
with collectivists. Collectivists need to feel a degree of comfort in communicating
substantive aspects of a business proposal or idea with a person or a group of persons whom
they feel they can trust. Whereas individualist are not require this. Managers from
multinational and global corporations of individualistic countries are more inclined to get to
 the specifies of the message and don’t necessarily see the relevance of developing trust in
matters that are purely related to business transactions.

(G) Differences in Goals and Face-Saving Tendencies

Peoples in collectivism society emphasize harmony and saving face for both sender and
receiver of communication. Saving face is the process of preserving one’s reputation and
connectedness related to the concept of politeness and have both verbal and nonverbal
connotations. The concept of face-concerned with the issue of identity and respect.
Example: Asians boss.

All cultures like to save face, particularly collectivism society. Individualistic society concern
highlighting the person’s positive qualities and deemphasizing the negative qualities.
Individualistic society not concern of connectedness in the social activities and therefore
saving face is secondary important to them.
Collectivists concern maintaining relationship and more comfortable in harmony
environment with in-group and members of their routine business transaction.

(H) The Role of Symbols

Symbols are highly culture specific. Sender and receiver have to handle with care of
conveying message through symbols through skillfully adopting appropriate media to convey
the message. Manager should learn as much as possible about the symbols of the dissimilar
cultures in which they conduct international business in order to be more effective.
Example: Nike and Adidas in China trying to use local cultural touches which using various
Chinese slogan and traditional sayings.

(I) Nonverbal Communication

Behaviour that communicates without words (although it often is accompanied by words) is
called nonverbal communication. People will usually believe what they see over what they
hear—hence the expression.
 Nonverbal communication is the expression and perception of non-linguistic signals or
messages between people without the use of words (Afifi, 2007).
 People use nonverbal cues to express messages that verbal communication cannot (Ting-
Toomy, 1999).
 Nonverbal behaviour is thought to be unconscious and automatic, and is often trusted over
verbal messages (Afifi, 2007).
The media for such nonverbal communication can be categorized into 3 types: (1) kinesic
behavior, (2) proxemics and (3) paralanguage.

(1) Kinesic Behavior refers to communication through body movements—posture,

gestures, facial expressions, and eye contact. While such body movements are universal
in nature, their meaning depends on the cultural context, and they cannot be
generalized. Most people in the West would not correctly interpret many Chinese facial
expressions; for example, sticking out the tongue expresses surprise, a widening of the
eyes shows anger, and scratching the ears and cheeks indicates happiness. Eye behavior
 includes differences not only in eye contact but also in the use of eyes to convey other
messages, whether or not that involves mutual gaze.
Example: during speech, Americans will look straight at you, but the British keep your
attention by looking away. The British will look at you when they have finished speaking,
which signals that it is your turn to talk. The implicit rationale for this is that you can’t
interrupt people when they are not looking at you.

(2) Proxemics and use of space-both personal space and office space or layout. The study of
spatial (space) distances between individuals in different cultures and situations. The
boundaries between these areas is highly culturally dependent.
High-Contact Cultures- Some cultures encourage people to use their senses-stay close to
each other and touch each other in the process of communicating. Example: South
Americans, Southern and Eastern Europeans, Indonesians, Italy and Arabs are high-
contact cultures, preferring to stand close, touch a great deal, and experience a “close”
sensory involvement. Latin Americans, for example, have a highly physical greeting such
as putting their arms around a colleague’s back and grabbing him by the arm.

Low-Contact Cultures- Prefer much less sensory involvement, standing farther apart and
touching far less. They have a “distant” style of body language. Example: North
Americans, Asians, and Northern Europeans are low-contact cultures. In France, a
relationship-oriented culture, good friends greet members of the opposite sex with a
peck on each cheek; a handshake is a way to make a personal connection.

(3) Paralanguage- refers to how something is said rather than the content—i.e., the rate of
speech, the tone and inflection of voice, other noises, laughing, or yawning. The
culturally aware manager learns how to interpret subtle differences in paralanguage,
including silence. Silence is a powerful communicator. It may be a way of saying “no,” of
being offended, or of waiting for more information to make a decision.
Example: cultural differences exist in the use and interruption of silence, where
Japanese negotiation use silence as a persuasive tactic or as an indirect way of rejecting
an offer, while North American negotiations tend to be more chatty and uncomfortable
with silence.

(J) Time
Another variable that communicates culture is the way people regard and use time. To
initiate effective cross-cultural business interactions, managers should know the difference
between monochronic time systems and polychronic time systems and how they affect
communications.
Monochronic Time System- Monochronic people, found in individualistic cultures, generally
concentrate on one thing at a time, adhere to time commitments, and are accustomed to
short-term relationships. Example: Switzerland, Germany, and the United States (keep
agenda strictly).
Polychronic Time System - tolerate many things occurring simultaneously and emphasize
involvement with people. Polychronic people from other collectivist cultures—may focus
relationship, do on several/many things at once, they be highly distractible, and change
 plans often. Example: Latin Americans, Arabs
Example 2: TARUC meeting always change time due to the boss polychromic time system.
Staffs can eat, drink, chat and answer phone call at the same time.

(K) Language
Spoken or written language, of course, is a frequent cause of miscommunication, stemming
from a person’s inability to speak the local language, a poor or too-literal translation, a
speaker’s failure to explain idioms, or a person missing the meaning conveyed through body
language or certain symbols. Even among countries that share the same language, problems
can arise from the subtleties and nuances inherent in the use of the language
Example: Britain and America are two nations separated by a common language. This
problem can exist even within the same country among different subcultures or subgroups.

Because of increasing workforce diversity around the world, the international business
manager will have to deal with a medley/mixture of languages. Example: In Malaysia,
Indonesia, and Thailand, many of the buyers and traders are Chinese. Not all Arabs speak
Arabic; in Tunisia and Lebanon, for example, French is the language of commerce. Current
globalization creates need for Chinese language. Example: Chinese language cannot be the
International Language but it is the fact that know Chinese language is easier in dealing
business especially in the era of globalization.

(L) Context
The context in which the communication takes place affects the meaning and interpretation
of the interaction. Cultures are known to be high- or low-context cultures, with a relative
range in between.
In high-context cultures (Asia, the Middle East, Africa, and the Mediterranean), feelings and
thoughts are not explicitly expressed (NOT OPENLY); instead, one has to read between the
lines and interpret meaning from one’s general understanding. In these cultures, most
communication takes place within a context of extensive information networks resulting
from close personal relationships.
In low-context cultures (Germany, Switzerland, Scandinavia, and North America), where
personal and business relationships are more compartmentalized, communication media
have to be more explicit (OPENLY). Feelings and thoughts are expressed in words, and
information is more readily available.

3. Explain how to managing across cultural communication.

Steps toward effective intercultural communication include the development of cultural
sensitivity, careful encoding, selective transmission, careful decoding, and appropriate
follow-up actions.

(1) Developing Cultural Sensitivity

When acting as a sender, a manager must make it a point to know the receiver and to
encode the message in a form that will most likely be understood as intended. This means
the manager must be aware of their own culture and the recipient’s culture. The
 expectations surrounding the situation. Manager must learn the language of the country and
develop the cultural sensitivity by traveling around globe.

(2) Careful Encoding

In translating his or her intended meaning into symbols for cross-cultural communication,
the sender must use words, pictures, or gestures that are appropriate to the receiver’s
frame of reference. However, even though English is in common use around the world for
business transactions, the manager’s efforts to speak the local language will greatly improve
the climate. Sometimes people from other cultures resent the assumption by English-
speaking executives that everyone else will speak English. Language translation is only part
of the encoding process; the message also is expressed in nonverbal language. In the
encoding process, the sender must ensure congruence between the nonverbal and the
verbal message. In encoding a message, therefore, it is useful to be as objective as possible
and not to rely on personal interpretations.

(3) Selective Transmission

The type of medium chosen for the message depends on the nature of the message, its level
of importance, the context and expectations of the receiver, the timing involved, and the
need for personal interaction, among other factors. Example: Types of medium include
instant messaging (IM), email, letters or memos, reports, meetings, telephone calls,
teleconferences, videoconferences, or face-to-face conversations.
For the most part, it is best to use face-to-face interaction for relationship building or for
other important transactions, particularly in intercultural communications, because of the
lack of familiarity between parties. Personal interactions give the manager the opportunity
to get immediate verbal and visual feedback and to make rapid adjustments in the
communication process. International dealings are often long-distance, of course, limiting
the opportunity for face-toface communication. However, personal rapport can be
established or enhanced through telephone calls or videoconferencing and through trusted
contacts.
Example: Ford Europe uses videoconferencing for engineers in Britain and Germany to
consult about quality problems. Through the video monitors, they examine one another’s
engineering diagrams and usually find a solution that gets the factory moving again in a
short time.
(4) Careful Decoding of Feedback
Timely and effective feedback channels can also be set up to assess a firm’s general
communication about the progression of its business and its general management principles.
The best means for getting accurate feedback is through face-to-face interaction, because
this allows the manager to hear, see, and immediately sense how a message is being
interpreted. When visual feedback on important issues is not possible or appropriate, it is a
good idea to use several means of attaining feedback, in particular by employing third
parties.
3 types of miscommunications
- Receiver misinterpreted the message
 - Receiver encoded response incorrectly
- Sender misinterprets the feedback

Two way communication is thus essential for important issues so that successive efforts can
be made until an understanding has been achieved. Asking other colleagues to help
interpret what is going on is often a good way to break a cycle of miscommunication.
The most important means for avoiding miscommunication is to practice careful decoding by
improving one’s listening and observation skills.

(5) Follow-up Actions

Managers communicate through both action and inaction. Therefore, to keep open the lines
of communication, feedback, and trust, managers must follow through with action on what
has been discussed and then agreed upon—typically a contract, which is probably the most
important formal business communication.
-Develop appropriate feedback mechanisms
-Learn the language of the country
-Correct balance between task and relational behavior.
-Develop and displaying empathy – active listening.
-Display of respect
-The tolerance for ambiguity.
-The capacity to be non-judgmental.
-Minimize self-oriented behaviors.
-Personalizing knowledge and perceptions.
Chapter 4

1. What is Negotiation?
Negotiation is the process of bargaining with one or more parties to arrive at a solution that
is acceptable to all. Negotiation is the process of discussion by which two or more parties
aim to reach a mutually acceptable agreement. For long-term positive relations, the goal
should be to set up a win-win situation—that is, to bring about a settlement beneficial to all
parties concerned.

2. Discuss the Negotiation Process. Provide relevant examples to support your answer.
Several basic steps can be used to manage the negotiation process. The negotiation process
comprises five stages, the ordering of which may vary according to the cultural norms (in any
event, for most people, relationship building is part of a continuous process):

Stage 1: Preparation
To the extent that time permits, a distinct advantage can be gained if negotiators familiarize
themselves with the entire context and background of their counterparts (no matter where
the meetings will take place) in addition to the specific subjects to be negotiated.
Negotiation problems are caused by differences in culture, language, and environment,
hours or days of tactical preparation for negotiation can be wasted if these factors are not
carefully considered. To understand cultural differences in negotiating styles, managers first
must understand their own styles and then determine how they differ from the norm in
other countries. They can do this by comparing profiles of those perceived to be successful
negotiators in different countries. Such profiles reflect the value system, attitudes, and
expected behaviours inherent in a given society.
(1) Identify the objectives negotiators would like to attain and explore the possible options
for reaching these objectives.
(2) Set limits on single-point objectives.
(3) Divide issues into short- and long-term considerations and decide how to handle each.
(4) Determine the sequence in which to discuss the various issues.

Stage 2: Relationship Building

Relationship building is the process of getting to know one’s contacts in a host country and
building mutual trust before embarking on business discussions and transactions. This
“feeling out” period is characterized by the desire to identify those who are reasonable and
those who are not. The emphasis on building relationships and the need to know about the
other group depend on national and cultural factors. Example: US negotiator spend less
time in building compare to Middle East and China. French negotiators do not like to talk
about business during dinner. They enjoy wine and get to know their counterparts during
evening hours. Mexican schedule sightseeing tours to important cultural sites and expect
foreigners to pay some attention to their heritage and culture.

Stage 3: Exchanging Task-Related Information

Exchanging task-related information is that each side typically makes a presentation and
states its position; a question-and-answer session usually ensues, and alternatives are
 discussed. Each party formally present an initial position, and discussion of the issues
involved follows. These positions often change later in the negotiations. These positions
often will change later in the negotiations. At this point, the participants are trying to find
out what the other party wants to attain and what it is willing to give up. Most countries
with strong norm of collectivism, the emphasis on relationship building is regarded as a real
beginning of the negotiation process.

Stage 4: Persuasion
Each party is concerned with changing the beliefs, preference structures, attitudes, and
interest of the other parties. Attempts are made to work a mutually satisfactory agreement
that can be succeed in both the short term and long term. Role of culture is important in this
stage. The success of the persuasion step often depends on
(1) how well the parties understand each other’s position
(2) the ability of each to identify areas of similarity and difference
(3) the ability to create new options
(4) the willingness to work toward a solution that allows all parties to walk away feeling
they have achieved their objectives.

Stage 5: Concessions and Agreement

The final phase of negotiations is the granting of concessions and hammering out a final
agreement. Sometimes, this phase is carried out piecemeal, and concessions and
agreements are made on issues one at a time. Familiar with the typical initial positions that
various parties are likely to take, they know that Russians and Chinese generally open their
bargaining with extreme positions, asking for more than they hope to gain, whereas Swedes
usually start with what they are prepared to accept. Negotiators in the Far East, for
example, approach issues in a holistic manner, deciding on the whole deal at the end, rather
than making incremental concessions.

Chapter 5

Chapter 6

1. The meaning of working across nations and cultures.

Meaning of Working (MOW) study- this study examined what working means to people in
Japan, Israel, US, Belgium, the Netherlands, Britain and Germany. For most people, the basic
meaning of work is tied to economic necessity such as money for food, and so forth for the
individual and for society.
Example: We study Bachelor Degree is for the certificate and to have better life in the
future.

The researchers assesses the meaning of work using 3 key concepts:

(1) Work Centrality defined as “the degree of general importance that working has in the
life of an individual at any given point in time.” OR the degree of general importance and
value attributed to the working role in an individual’s life – relative to other areas of
interest. Example: Different people will put different pricing on work and family.
 (2) Societal Norms about Working the degree of normative beliefs and expectations
regarding entitlement (specific rights) and obligations (duties) attached to working. 2
type of Norm- 1. Entitlement Norm and 2.Obligation Norm
1. Entitlement norm- represent the underlying work rights of individuals and work-
related responsibility of organisation and society towards individuals. This norm reflects
notions that all members of society are entitle to meaningful and interesting work,
proper training to obtain and continue in such work.
2. The obligation norm- reflects the duties and responsibilities that individuals have in
their work roles. This norm includes the notions that everyone has a duty to contribute
to society by working, a duty to save for their own future, and the duty to value one’s
work.
(3) Work Goals – work-related outcome preferred by individuals in the entire span of
working life. What you want to achieve? The 11 goals studied included-Interesting work,
good pay, good job security, opportunity to learn, good match between the worker and
the job.
When a manager of a subsidiary located in a culture which is dissimilar to his or her
home-country disregards the importance of these cultural differences, the result is likely
to be demotivating and frustrating for employees. Example: In Thailand – the
introduction of an individual merit bonus plan for merit pay raise for individuals, which
differing to the societal norm of group-based cooperation and incentive in the
workplace, failed to improve productivity and resulted in a decline of morale.
Managers must recognize the importance of needs, goals, values, and expectations of
culturally dissimilar/ different employees. People in every society are driven to achieve
goals and fulfill needs according to their cultural preferences and values, but what those
goals and needs are may not always be clear.*
2. To make meaningful and practical conclusions about the role of motivation in the
international context, it is useful to apply Hofstede’s research regarding the 5 cultural
dimension.

The Role of Cultural Variations in Work Motivation and Job Satisfaction

Individualism–Collectivism, Power Distance, Uncertainty Avoidance, Masculinity–Femininity,
Long-Term versus Short-Term Orientation

Individualism-Collectivism Dimension
Critical characteristics for evaluating the effect of individual versus team-based motivational
techniques.
Individualistic society likely to have more people who are motivated by opportunities for
individual achievement and increased autonomy on the job than do society that are high in
collectivism, which are likely to have more people who are motivated by work designed to
sustain group goals and community based activities and rewards.
Performance by individualists who were working in groups was lower than the performance
of individualists working alone.
Collectivists performed better while working in groups than they did when working alone.

Example: Levi’s jeans which once introduced team based production in several U.S plants
because overseas managers had observed high productivity when the system was used in
Asia. Unfortunately, U.S employees-especially the most skilled workers-detested the system,
productivity went down, and Levi’s returned to a more individualistic system that was more
suitable to its U.S workforce.
In countries typified by high individualism, self-actualization is a prime motivator because
employees want challenges.

What is self-actualization- desire to reach one’s full potential. In those characterized by high
collectivism, the need for security, safe environment (physical and emotional environment) -
is a prime motivator. “Safe” work environment motivate collectivists, Challenges motivates
individualist.

High individualism suggest people would be motivated by opportunities for individual

advancement and autonomy. Collectivism- suggest that motivation will more likely work
through appeals to group goals and support.
The need for achievement is defined as the drive to achieve excellence in relation to a set of
standards. An individual who has a high need for achievement prefers jobs that require
personal responsibility combined with a feedback system (recognition, praise, honor reward)

Power Distance Dimension

The decision structures within the organization influence the relationship between power
distance and process of work motivation.
High power distance society (Malaysia, Japan-moderate)
-have many layers of management and a large proportion of supervisory personnel
-Subordinates rely on formal rules and regulations in performing tasks and are not likely to
be consulted by their supervisors in designing work and reward systems
-Have higher role ambiguity and role overload which are work related stressors which can
reduce work motivation, creativity and innovation
-Role ambiguity = unclear expectations about how to perform the job
-Role overload = excessive work

Low power distance society (Sweden, US, Austria)

-Hierarchy is de-emphasized, and when it does exist, it is for conveniences and only
temporary.
-Subordinates expect flexibility in performing tasks and expect to be consulted in the design
of work and reward systems.
-Intrinsic motivation is easily fostered and creative tendencies are strongly encouraged by
superior who do not explicitly supervise the day-to-day performance of subordinates.

Case –
-Dutch company assigned domestic managers, who typically prefer low power distance, to
improve productivity at a facility in Morocco, where workers typically prefer high power
distance.
-The Dutch managers might consult with Moroccan subordinates in an attempts to improve
employee productivity.
-Result: Unfortunately, they may end up making subordinates feel so uncomfortable that
performance drop rather than improves.
-Why: High power distance employees prefer an autocratic and team work base-which can
motivate them.
-Work participation method can be used to motivate low power distance society.
High power distance suggest motivators in the relationship between subordinates and their
boss.
Low power distance implies that people would be more motivated by teamwork and
relationship with their peers, and freedom of making decision.

High uncertainty avoidance (Japan)

-High need for job security, are unwilling to take risk and make independent decision.
-Subordinate expect managers to make decisions and give explicit (clear) instructions, which
reduces the potential for creativity and innovation.

Low uncertainty avoidance (Sweden, US)

-A preference for tasks with calculated risks and continuous problem solving characterizes.
-Higher achievement motivation reflect strong security motivations.

-In countries in which individuals are able to engage in appropriate problem-solving

strategies in the work place, they experienced lower levels of strain/tension.
-In general when people are strongly motivated in both intrinsic and extrinsic senses, they
are likely to do better in their careers and to progress toward further growth.
-Progress is usually more rapid in low uncertainty avoidance countries.
-High UA suggest need for job security.
-Low UA would probably be motivated by more risky opportunities for variety and fast track
advancement.

Masculinity-Femininity Dimension
High masculinity society:
-Most people will be comfortable with traditional divisions of work and non-work roles.
-Work roles: duties and responsibilities in the work organisation such as nurse, mechanic
and manager.
-Non work roles: roles that individual play outside the context of the work organisation such
as role of father, husband, wife, sister, friend.
-Work and non-work roles tend to be distinct (separate) in masculine societies.
-Competition for sustaining motivation is higher.
Example: USA, Germany, Japan, Australia job design processes are geared toward sustaining
performance rather than quality of life.

Feminine society:
-Boundaries between work and non-work roles are more flexible- because of this –
-People feel motivated by having accommodating work schedules, e.g., flexitime, part-time,
shift work, prefer jobs that nurture quality of work life.
Example: Sweden, Denmark and Norway, quality of work life and the socio-technical method
of improving work processes are emphasized.

-High masculinity suggests that most people would be more comfortable with traditional
division of work and roles.
 -In feminine culture, the boundaries could be looser, motivating people through more
flexible roles and work networks.

Time Orientation Dimension

Short-term orientation
-Foster short-term results, immediate or intermediate bottom line
-Short term virtues and norms about workplace values are emphasized, resulting in
employees valuing work outcomes that satisfy immediate needs.
-Compensation schemes and reward systems should reflect these differences in orientation
in order to enhance motivation, job satisfaction and organizational commitment.

Chapter 7

1. What is leadership?
Leadership can be defined simply as the process of influencing people to direct their efforts
toward achievement of some particular goal or goals. Excellent leaders motivate their
employees to achieve more than minimal requirement. (Good leader can motivate,
influenced, brain wash you)

2. What is the difference between being a manager and being a leader?

Some believe that leaders are born, but managers can be shaped. Managers often merely
focus on reaching objectives by mastering financial information, leaders work to get the
right people in the right positions and motivate them; money matters become a secondary
objective. Good manager is essential in organisation. However, Leadership is required-to be
good leader. Distinct qualities -between manager and leadership> provide different strength
to organisation.
*Leadership cannot replace management, it should be in addition to management*
Manager promotes stability, order, problem solving- managers ensures that suppliers are
paid, customers invoiced, products produced on time.
Leadership means- questioning the status quo so that outdated, unproductive, or
organizational culture can be replaced or changed to meet new challenges. Example of good
leader: Obama.

Good management is needed to help the organisation meet current commitments.

While good leadership is needed to move the organisation into the future.
3. Perspectives on Leadership
-Leadership Behavioural Approached:
(1) Authoritarian leadership is the use of workcentered behavior that is designed to ensure
task accomplishment. One-way downward flow of information and influence from
authoritarian leader to subordinates. Commonly seen in military and police forces. The
focus of attention usually is on work progress, work procedures, and roadblocks that are
preventing goal attainment. There is a managerial tendency toward a lack of
involvement with subordinates, where final decisions are in the hands of the higher-level
employees. The distance translates into a lack of a relationship where managers focus
on assignments over the needs of the employees. At times, the organizational leadership
behaviour is reflective of the political surroundings, as indicated in one study that
focused on Romania. Leaders in this region were slightly more authoritarian (55%),
which could have been influenced by the Romanian communistic roots that stressed the
importance of completing planned productions. Although this leadership style often is
effective in handling crises, Or leaders who believe continues focus on the
task is compatible.

(2) Paternalistic Leadership uses work-centered behavior coupled with a protective

employee-centered concern. This leadership style can be best summarized by the
statement, “Work hard and the company will take care of you.” Paternalistic leaders
expect everyone to work hard; in return, the employees are guaranteed employment
and given security benefits such as medical, dental and retirement benefits. This
leadership style satisfies some employee needs, and in turn subordinates tend to exhibit
 loyalty and compliance.
Example: Latin America, including Argentina, Bolivia, Chile, and Mexico,33 but also in
China, Pakistan, India, Turkey, and the United States.

(3) Participative Leadership uses work-centered behaviour coupled with a protective

employee-centered concern. Participative leaders typically encourage their people to
play an active role in assuming control of their work, and authority usually is highly
decentralized. Leaders motivate employees could be through consulting with
employees, encouraging joint decisions, or delegating responsibilities. Employees tend
to be more creative and innovative when driven by participative leaders.
Example: United States, England, Anglo countries and Scandinavian countries.

4. How does participative leader make decision?

-Collectivist, high Power Distance cultures, participative management may not be effective
until subordinates learn to expect it.
-Expectations about participation are more likely to occur in individualistic, low PD cultures.
-Although participative management appears to be a universally effective management
style, subordinates need to be given the knowledge that they should use it.

Cross-Cultural Leadership: Insights from the GLOBE Study

(1) Charismatic/Value-Based leadership captures the ability of leaders to inspire, motivate,
and encourage high performance outcomes from others based on a foundation of core
values. OR the ability to inspire, to motivate, and to promote high performance; includes
being visionary, self-sacrificing, trustworthy, decisive, and performance oriented.
(2) Team-Oriented leadership places emphasis on effective team building and
implementation of a common goal among team members OR emphasizes team building and
creating a sense of common purpose; includes being collaborative, diplomatic, and
administratively competent. Instill pride, loyalty, and collaboration among organizational
members. Highly value team cohesiveness and a common purpose or goals.
(3) Participative leadership reflects the extent to which leaders involve others in decisions
and their implementation OR the extent to which leaders involve others in making
decisions; being participative and non-autocratic emphasizes team building and creating a
sense of common purpose; includes being collaborative, diplomatic, and administratively
competent.
(4) Humane-Oriented leadership comprises supportive and considerate leadership OR being
supportive, considerate, compassionate, and generous; displaying modesty and sensitivity. ∙
(5) Autonomous leadership refers to independent and individualistic leadership behaviours.
OR refers to being independent and individualist; being autonomous and unique.
(6) Self-Protective leadership “focuses on ensuring the safety and security of the individual
and group through status-enhancement and face-saving OR includes behaviours intending to
ensure the safety and security of the leader and the group; includes being self-centered,
status conscious, conflict inducing, and face saving.