Cultural Differences in Business
Ondrej Castek
castek@econ.muni.cz

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Fall 2009, MWCC
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What can you expect
1.
1.
1.What is culture (a bit of theory)
2.Cultural differences (and a few examples)
3.Short videos (hopefully interesting)

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What is culture
1.Shared system of values, which as a process leads to automatic solutions of often repeated
problems (Nový, Schroll-Machl)
2.A set of learnt behaviour, collection of opinions, customs and traditions shared among group of
people... (Mead)
3.A set of shared attitudes, values, goals, and practices that characterizes an institution,
organization or group (Wikipedia)

1.a) shared
b) Solutions of problems: the best solutions become part of culture, they form patterns for future
behaviour.
2. Learnt behaviour. However, latest researches sugest that some cultural features depend on
genetic code
3. Be careful with Wikipedia, but this one is used by more authors. I would add basic assumptions.

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Culture is subjective to
1.Time
2.Place
3.Group
nNation
nEthnic group
nReligious group
nAny other subgroup

1. Attitude toward Afro-Americans hundred years ago and now
2. Attitude toward slavery in 1860s (American Civil War)

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Elements of culture (Šroněk)
1.Time
2.Language
3.Non-verbal communication
4.Religion
5.Formality/social hierarchy

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Cultural standards (Thomas and others)
1.Cultural standards are methods of perceiving, thinking, evaluating and acting, which are common
in a particular culture
2.Behaviour of myself and of others conforms with it
3.It has a regulatory function in many different situations
4.Individual use/application of cult. stand. Can vary inside a certain tolerance zone
5.Behaviour outside this zone is refused and sanctioned

3. It gives me a lead, how to act – unconscious self-regulation
4. We are all different, but among one culture also similar
5. i.e. you will not talk to such people

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Cultural dimensions (Hofstede, G.)
1.Power Distance Index
2.Individualism
3.Masculinity
4.Uncertainty Avoidance
5.Long-Term Orientation
6.
nVisit http://www.geert-hofstede.com for countries’ scores.

1980: 53 countries, 20 languages, 116 000 employees (IBM)
•The extent to which the less powerful members of organizations and institutions accept and expect
unequal distribution of power
•Loose ties between individuals vs. Strong integration in groups (from birth)
• assertivity and competitiveness vs. Modest and caring values
• One opinion, one truth (religiously), one system/structure vs. More tolerance towards other
opinions
• Added later. How shall the traditions influence future: a lot or not at all. Short term
orientation – easier to make social changes

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Hall’s Cultural dimensions
1.
1.Communication context
2.
2.Proximity
3.
3.Time

1.Low and High communication context
2.Physical distance people keep from other people
3.Monochronic or polychronic handling of time

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Trompenaars’ Cultural dimensions
nCultural differences come from:
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nAttitude to time (1 dimension)
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nAttitude to the environment (1)
n
nAttitude to other people (5)

1.The Past, The Present, The Future. The Present: enjoying life. The Future: goalseeking. The Past:
traditions influence future a lot.
2.Cultures that try to control the nature and cultures that try to live in harmony with nature.
3.5 other dimensions.

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Application of Cultural dimensions (Demorgon)
1.Matter of level
2.Area of life
3.History and circumstances
Problems with application of C. D. or C. S.
1.One dimension contains more aspects
2.Point of view
3.Judgements

1.What is the sample we draw conclusions from? Is it one man (individual level), small group,
certain social level, or does it describe whole nation through the social levels and subcultures?
2.Business, religious, family, friends? Culture is subjective to the nation, ethnic or religious
group.
3.Is it momentary? i. E. plundering at Haiti.
1. Low power index vs. High power index: matter of hierarchy - its existence, its application
(strict, loose) or its acceptance?
2. Different perspectives of different observers: for Czech observer the difference between German
and Japanese hierarchy would be different than for French observer.
3. Some terms may have negative connotations, like diffused culture (not separate different areas
of life: private, business, religious...; opposite specific), affective culture (how much will you
express your feelings; opposite neutral)...

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Culture shock
1.„Honeymoon Phase“
2.„Negotiation Phase“
3.„Adjustment Phase“
4.„Mastery Phase“

1.You see the better from the other culture – getting to know new foods, habits, etc.
2.Differences become apparent, first excitement is gone, now you feel how it is hard in everyday
life.
3.You get accustomed to new habits and you develop new routines suiting the new environment.
4.You feel comfortable and you are able to accept new features to your advancement.

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The differences in leadership style and organization (Mole)
Organization
Individual
Group
Organical
Systematical
France
Spain
Portugal
Belgium
Ireland
UK
Greece
Italy
Netherlands
Denmark
Luxembourgh
Germany
USA

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Cultural dimensions US x FR x CZ x SK
World averages shown above are: 55 - 43 - 50 - 64 - 45
Index (2004)
CZ
SK
PDI
53
79
IDV
73
48
MAS
39
90
UAI
61
37
LOT
23
41

Power Distance Index
Individualism
Masculinity
Uncertainty Avoidance
Long-Term Orientation

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Czech cultural standards (Nový, Schroll-Machl)
1.Relationships orientation (prefer relationships to material aspect)
2.Underestimating structures (love for improvisation)
3.Simultaneity (parallel work)
4.Control aims people not rules
5.Diffusion culture
6.High communication context
7.Avoiding conflicts
8.Variable self-confidence

1.Relationship and good feel on first place, factual content on second place
2.Improvisation is valued a lot, structures are underestimated, even feared of – loss of freedom
3.More things at once, not a goal seeking behavior unless under pressure
4.Control is applied in relation to people and not to rules. Rules are broken, when people and
their relationships are needed to come first. Again this relates to a feel of personal freedom.
5.Mixing business and personal life, roles and personalities, formal and informal structures.
6.If you want to interpret a message, the message itself is not sufficient. You need to know who
told it to whom, under what circumstances, what preceded etc.
7.Avoiding conficts as long as possible, postponing, pretending it does not exist. Contextual
communication if problem is to be solved. From an outside view Czechs are passive.
8.Substantive variation in self-confidence.

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Human Communication
nThree major parts in human face to face communication. According to the research:[1]
1.
1.55% of impact is determined by body language—postures, gestures, and eye contact,
2.38% by the tone of voice, and
3.7% by the content or the words used in the communication process.
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n[1] Mehrabian and Ferris (1967). "Inference of Attitude from Nonverbal Communication in Two
Channels". In: The Journal of Counselling Psychology Vol.31, 1967, pp.248-52.
Fall 2009, MWCC
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Verbal Communication
nJust 7 % of human communication accounts for words.
n
nBut:
nNative or second language.
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nAnd:
nActive or passive use.
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nAlso:
nSlang, colloquial or contextual expressions.
Fall 2009, MWCC
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Language is not only a product of culture, but it also forms the culture.
1.Ambiguity (dyke: drain, bank, lesbian)
2.Interference (actual: up-to-date or real; 5 expressions for shy in chinese; meny expressions for
sand in Arabic)
3.Absence of appropriate expression – one needs to describe situation instead of translating one
single word

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Non Verbal Communication and Other Differences
nJapanese and smiling
nJust-in-time manufacturing systems
nFormality
nKorean exercising
nSlovak interjections
nSlovak dining
nNot-moving attitude and impacts on labor market
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Bows in Japan
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Short videos
nhttp://www.kwintessential.co.uk/intercultural/french-business-etiquette.html
nhttp://www.youtube.com/watch?v=bspFbFytRiM (Cultural Issues in Arab World Business Deals)
nhttp://www.kwintessential.co.uk/intercultural/highcontext-lowcontext-cultures.html
nhttp://www.kwintessential.co.uk/intercultural/individualism-collectivism.html
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nThanks for your attention
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