Cultural Differences/Managing Diversity

What are the 4 dimensions of cultural value?

Individualism vs. collectivism

Power distance

High vs. low context communication

Work-life balance

Individualism vs. collectivism

Individualism: A group is the context, but individual interests take precedence

Collectivism: The group has important psychological meaning, putting group interests above individual interests

High vs. Low Power Distance

High: Those at the top make the decisions and order those below

Low: Everyone is entitled to share opinions and managers coordinate, not dictate

High vs. Low Context Communication

High: There is a need to infer intent behind words, and communication extends beyond works

Low: Words are direct and retain meaning

Work-Life Balance

Is work a means to an end or is work purpose?

According to HBS, what questions should we consider when managing cross-culturally?

1. To what extent we take it for granted that people think and behave how they do in our home culture?

2. How much time should we take to understand people in other cultures before getting into work?

3. How do we deal with misunderstandings, conflicts, and setbacks due to culture?

What are the 4 rules for cross-cultural management?

1. Dont underestimate the challenge

2. Apply multiple perspectives and consider how cultures interact amongst each other

3. Find the positive and hinge on strengths

4. Be flexible and adjust/readjust your positioning