HRMN 495-Mini Case Study 5

Learning Topic

Cultural Competency Value Systems

Culture is commonly defined as a shared system of beliefs and values that

shapes a group's behavior. People interpret the behavior and

communication of others through their own cultural biases and may

identify anything that is different from their own values as "wrong" or

"inappropriate."

Communication styles are based largely on cultural values. One

researcher who helps us understand cultural values around the world is

Geert Hofstede. He lists the following six cultural dimensions and

describes how they vary across cultures (Hofstede, n.d.):

Hofstede's Cultural Dimensions

Low High

Power distance Egalitarian Embraces hierarchy

Collectivism vs. individualismCollectivist Individualist

Uncertainty avoidance Comfortable with uncertaintyUncomfortable with uncertainty

Femininity vs. masculinity Nurture important Power important

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UMGC (n.d.). Cultural Competency. Retrieved from https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn495/2225/learning-topic-list/ cultural-competency.html#

Low High

Short‐term vs. long‐

term orientation

Traditional and short‐

term

Futuristic and long‐term

Restraint vs. indulgence Normative repression Satisfaction is good

Power distance is the extent to which a group of people accepts the

unequal distribution of power among different segments of their society.

Venezuela, the Philippines, and Mexico have high power distance and

accept the inequality in their societies, whereas Denmark, Austria, and

the United States are among the countries that have low power distance,

or low tolerance for inequality.

Individualism is the value that a culture places on individual rights and

well‐being as opposed to collective rights and well‐being. Australia, the

United States, and the United Kingdom tend to be individualistic

countries, whereas Colombia, Japan, and Nigeria tend to be collectivist.

Masculinity was the term Hofstede used for the value that a culture

places on assertiveness and competitiveness. Japan, Mexico, and Austria

are among the more "masculine" societies under this terminology,

whereas Denmark, Sweden, and Norway are considered more "feminine"

societies. Typically, cultures considered to have higher masculinity under

this terminology will also stress a greater difference between gender roles

in the society.

Uncertainty avoidance is the degree to which a culture is comfortable

with doubt and ambiguity. Cultures that tend toward high uncertainty

avoidance will seek to avoid multiple choices or positions. Greece,

Portugal, and Japan tend to be high on uncertainty avoidance, whereas

Singapore, Sweden, and the United States tend toward low uncertainty

avoidance and thus more comfort with choice and ambiguous situations.

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Polychronic cultures tend to value tradition and long‐term goals over

short‐ term goals. Countries such as Brazil, Spain, and China are generally

more patient and less interested in time management, whereas in

monochronic cultures such as in Germany and the United States, there is

a focus on ideas of "saving time" or "not wasting time." This is also called

short‐term and long‐term orientation.

Restraint has to do with a culture restraining gratifications of desires

through strict social norms, while indulgent societies tend toward free

gratification of basic and natural human desires.

Communication Styles

Hofstede's research provides a starting point for understanding why

different cultures may communicate in different ways. He writes:

When negotiating in Western countries, the objective is to work

toward a target of mutual understanding and agreement and 'shake‐

hands' [sic] when that agreement is reached—a cultural signal of the

end of negotiations and the start of 'working together'.

In Middle Eastern countries, much negotiation takes place leading

into the 'agreement', signified by shaking hands. However, the deal is

not complete in the Middle Eastern culture. In fact, it is a cultural

sign that 'serious' negotiations are just beginning. (Silver, n.d., para. 5)

Edward Hall (1977) posits that communications styles tend to reflect

whether a society is either a high‐context or a low‐context culture. In a

high‐context culture, people value the information in the physical

environment such as nonverbal signs, gestures, and facial expressions. In

a low‐context culture, communication is more explicit and more

dependent on words. Japan and Saudi Arabia tend to be high‐context

cultures, whereas the United States and Canada tend to be low‐context

cultures. Low‐context cultures might be described as preferring a direct

communication style, whereas high‐context cultures notice all the

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nuances of an indirect communication style.

In the US and in many western European cultures, people tend to prefer

direct communication—mostly verbal, clear, and straight to the point.

However, in many cultures in Asia, harmony and politeness are more

important values, and the preferred form of communication is indirect,

relying on nonverbal cues and implications.

Even among countries that share the same language, communication style

may be a factor. Here is an example of the difficulties that can arise when

people from the US and the UK are communicating:

Americans come across loud and clear, but because the English are

relatively understated and indirect, a lot of what they say is in what

they don't say.

Americans hear the words, and they understand the words, but they

don't interpret the meaning correctly. (Doke, 2004, p. 64).

Another important aspect of communication style is the comfort space

that speakers maintain between themselves and others. In the United

States, most people maintain a distance of about four feet and feel

uncomfortable if someone approaches this space. In many Arab countries,

people tend to stand much closer.

Cultural Competency

Even if you do not see yourself as someone who might work overseas,

intercultural communication and cultural competency are important for

the work you do. The growth of international trade and outsourcing mean

that more and more people are working together across national borders

(Hynes, 2008). The probability that you will work for an international or

multinational company is also growing. Many brands that we may view as

US companies, such as Nestle and Budweiser, are owned by larger

companies based abroad.

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As the workforce becomes more and more diverse, it is also increasingly

likely that you will be working with people from different cultures and in

multicultural teams, even within US companies. Being culturally

competent enhances your chances of success in these work

environments.

Cultural competency includes two dimensions: cultural sensitivity and

international knowledge. Most prejudice comes either from a fear of the

unknown or a lack of understanding. Considering the vast amount of

knowledge we have access to in today's globalized world, even for those

who cannot travel, it is relatively easy to learn basic information about

the different regions of the world and how cultures vary.

In the following subsections, we will present some general characteristics

of several different regions around the world, based on Hofstede's study.

Remember that these are only general statements. Individuals within

these regions vary widely in factors such as education, religion, national

culture, and regional differences.

Arab Countries

Hofstede's research in countries such as Egypt, Iraq, Lebanon, Libya, and

Saudi Arabia reflects the influence of Muslim religion on the culture of

this region, influencing family and community life. These countries scored

high in power distance and uncertainty avoidance. Their cultures are more

likely to accept a system that does not allow for significant mobility of

individuals. They are rule‐oriented and tend to value laws, rules,

regulations, and controls (Hofstede, n.d.).

Nations in this region also scored high on masculinity, indicating that they

value assertiveness and competitiveness. The region scored high in

collectivism, evidenced by strong family ties and the importance of the

group over the individual. Hofstede's research showed little value for

punctuality, so meetings may not have a defined beginning or ending.

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Latin America

Latin American countries scored relatively high on power distance, so it is

common to see power in the hands of a few individuals or families within

these societies. After decades of dictatorial and centralized state rule in

many countries, hierarchy and respect for authority are often emphasized

in Latin American culture, often resulting in a top‐down management

system in the workplace (Corporate Leadership Council, 2002).

In general, Latin American countries scored highest on uncertainty

avoidance, indicating a low level of tolerance for uncertainty and

unwillingness to accept change or risk (Hofstede, n.d.). The lowest scores

for Latin American countries were on individualism, which indicates that

value is placed on family ties, social interaction, and community in these

cultures. Latin America contains countries that score high on masculinity

(e.g., Ecuador, Colombia) as well as countries that score low (e.g., Chile,

Costa Rica).

Asia

Asian countries overall score high on power distance, indicating that their

citizens tend to accept high levels of inequality of power and wealth in

their societies. They are among the countries that score the lowest on

individualism, meaning that these societies tend to be collectivist. Many

Asian countries score high on uncertainty avoidance and masculinity. The

most striking value shared among most Asian cultures is a long‐term

orientation towards time. They tend to respect tradition and obligations

and to consider saving face, or preserving one's reputation and dignity,

highly important.

For example, Japanese society views loyalty to family, company, and

nation as foundational and value US culture places on independence and

individualism is not commonly understood. In China, guanxi is an essential

concept translated as "personal connections." Guanxi often determines

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the success or failure of a foreign organization and influences who will be

hired (Marquardt, Berger, & Loan, 2004). The importance of guanxi can

prove troublesome for foreign firms that do not understand its

implications.

Hinduism dominates the culture of India and Nepal in South Asia. The

Hindu caste system has a huge influence on family life, marriage, and food

choices. India has the highest power distance score in the Hofstede

studies as well as the third‐highest on masculinity. On the other hand,

India scores low on uncertainty avoidance, indicating a general tolerance

and openness to new ideas and unstructured situations.

Europe

While human resource management in the US is largely based on

psychology and focuses on individual workers' needs and motivations,

European systems of human resource management evolved from a

sociological perspective that focuses on social systems; economic and

political context; and the nature of relationships among governments,

unions, and management (Sanchez, 2000).

Although there is great diversity among European countries, in general

this region scored high on uncertainty avoidance and individualism.

Europe includes countries that score high on masculinity (e.g., Austria,

Germany, Slovakia) and others that score low on masculinity (e.g.,

Denmark, Finland, the Netherlands). Most European countries score low

on power distance, indicating a low tolerance for inequality. On the

individualistic side, European societies in general expect people to look

after themselves and their needs. They also tend to value and respect

arts, culture, and education. European cultures often reflect the

influenced of Christian religions and traditions (Marquardt, Berger, &

Loan, 2004).

United States and Australia

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Though geographically distant, the United States and Australia have

strikingly similar scores in Hofstede's study. They score low on power

distance, indicating that they value equality and individual freedom. They

also score high on individualism and masculinity. Both Australia and the

United States score low on uncertainty avoidance.

Cultural Differences and Performance Management

A study by Novations Group revealed that 90 percent of managers feel

that it is essential to measure performance and 60 percent think a new

system would do more harm than good if it violates the prevailing norms

and values of their country (Amble, 2005).

When measuring performance in multinational or international sites, it is

important to consider cultural differences. Remember, however, that even

within one geographical region, values and norms can change.

Organizations can use a cultural framework to understand different

cultures' views on specific performance management issues, such as the

following:

• Control mechanisms—A culture's score on power distance can shed

light on whether organizations in certain cultures prefer informal or

formal mechanisms for structuring work and relationships.

• Dialogue—Some cultures may embrace an open two‐way dialogue

about performance, whereas others may view performance

evaluation as a one‐way communication.

• Evaluation of groups or individuals or both—Some cultures evaluate

performance on an individual basis, whereas others appraise only the

group's performance. In other cultures, both group and individual

performance is evaluated.

• Linking salary to performance—Linking salary to performance is

normal practice in some cultures, whereas in others, performance‐

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based pay violates societal norms.

• Political understanding of employer/employee relations—Cultures

often have legal and historical understandings of employer,

employee, and union relationships.

When working in East Asian cultures, it is useful to consider a cultural

traditions of collectivism, high power distance, group orientation and

group‐based rewards, respect for authority, and shame as a behavioral

influencer. However, remember that significant differences exist in this

region, such as between Chinese, Japanese, South Korean, and Filipino

business cultures. For example, Japanese employees value humility and

self‐effacement, so Japanese employees may be reluctant to evaluate

themselves and may rely heavily on word of mouth for promotion (Morris

& Schnidehutte, 2005).

When working in Western European business cultures, consider that, in

general, they tend toward individualism, self‐direction, self‐sufficiency,

and achievement. Researchers have categorized three different models of

human resources management among European nations: the Germanic,

the Latin, and the Anglo‐Dutch. As opposed to the general tendency

toward individualism, incentive pay that favors certain individuals over

the group is considered unacceptable in most Danish companies,

reflecting a preference for equal pay for all rather than paying more to the

highest contributors (Sanchez, 2000).

Emphasis on personal business relationships, respect for hierarchy and

values, and open communication characterize the Latin American

business culture. When working with Latin American organizations, note

that they do not generally make formal performance management a

priority. According to a study of personnel evaluations in Latin America

and Spain by HR technology company Bumeran, more than one‐third of

total respondents indicated that they never receive evaluations from their

employers (HRM Guide, 2002). 53 percent of Brazilian employee

respondents indicated that they never receive employer evaluations, and

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50 percent of Brazilian company respondents indicated that they never

evaluate their employees (HRM Guide, 2002).

References

Amble, B. (2005, September 2). Performance management plagued by

cultural barriers. https://www.management‐issues.com

/news/2511/performance‐management‐plagued‐by‐cultural‐

barriers/

Corporate Leadership Council. (2002). HR practices in Latin America. HR

Intelligence Quarterly. Corporate Executive Board.

Doke, D. (2004). Perfect strangers. HR Magazine, 49(12), 62–68.

Hall, E. (1977). Beyond culture. Anchor Press.

Hofstede, G. (n.d.). The 6D model of national culture.

https://geerthofstede.com/culture‐geert‐hofstede‐gert‐jan‐

hofstede/6d‐model‐of‐national‐culture/

HRM Guide. (2002, June 20). Personnel evaluation in Latin America and

Spain. https://www.hrmguide.com/performance/brazil_spain.htm

Hynes, G. (2008). Managerial communication: Strategies and applications

(4th ed.). McGraw‐Hill.

Marquardt, M., Berger, N., & Loan, P. (2004). HRD in the age of

globalization. Basic Books.

Morris, M., & Schnidehutte, M. (2005). Entrepreneurial values and the

ethical enterprise: An examination of six subcultures. Journal of

Small Business Management, 43(4), 453–479.

Sanchez, C. M. (2000). Performance improvement in international

environments: Designing individual performance interventions to

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fit national cultures. Performance Improvement Quarterly, 13(2),

56–70.

Silver, S. J. (n.d.). Geert Hofstede cultural dimensions.

https://faculty.citadel.edu/silver/GH.htm

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