CROSS CULTURAL

MANAGEMENT
TOPIC:
EAST VS WEST
LONG TERM ORIENTATION

Author:
QASIM ALI
BBA (H)
Please Respect my Intellectual Property
 INTRODUCTION:

Culture is an important part of human being which distinguishes themselves from other

human beings. The word culture is from the Latin word colere which means to cultivate

(Harper, Douglas, 2001). Culture includes set of shared attitudes, beliefs, values, norms,

and practices that characterizes an institution, organization or group. Cultural norms play

an important role in the procedure and interpersonal associations at work. When you

grow up in a culture you take your norms of behavior for established. You don't have to

think about your response, partiality, and approach. But when you go to some other

country as an expatriate you will never going to deny the importance of culture. Now the

question arises why there is a need of studying about culture. According to George

Simmel “culture is the cultivation and improvement of individuals through the agency of

external forms which have been objectified in the course of history” (Levine, Donald (ed)

Simmel).

Western culture refers to the European civilization. This term” western culture” is

broadly used by cultural experts to describe heritage of social norms, ethnic values,

traditional customs, religion and political system of western world. According to the

definition of western culture Western culture is the set of literary, scientific, political,

artistic and philosophical principles which set it apart from other civilizations (Jones,

Prudence and Pennick, 1995). Though the term western culture is also used for those

locations whose history are strongly marked by European immigrants, such as America

and Australia. But the original constituent of western culture is central Europe (Ankerl,

Guy 2000). On the other side the term Eastern world refers to the various cultures of

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social structures and philosophical systems of "the East", namely Asia and Eastern

Europe including Russia, the Indian subcontinent, the Far East, the Middle East, and

Central Asia).

HISTORICAL BACKGROUND:

Trust does not work in the same way across culture. The most influential research on

cultural values has been done by Geert Hofstede, who was a psychologist by profession

and worked in IBM for more than 30 years (Ijaz A Q, 2010). When you step into a

foreign culture, suddenly things seem strange. You don't know what to do or how to act

in an environment with different culture. Using Hofstede's Cultural Dimensions as a

integral point, you can evaluate your approach, your decisions, and actions based on a

general sense of how the society might think and react to you. His empirical studies are

based on work-related values have been extended to 74 countries, which covers

approximately all the countries of eastern and western world. In order to measure the

cultural differences he has identified five major magnitude along which cultural values

differences (Geert Hofstede, 1990).

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 Fig1.1

http://www.geert-hofstede.com/graphs/hofstede_a_sample.gif

These five dimensions provide us a complete framework for developing our

understanding of particular situations, anticipating cultural conflicts and addressing them

through techniques. This research paper will cover LTO (long term orientation)

dimension of Geert Hofstede and how it varies in eastern and western culture.

LITERATURE REVIEW

LONG-TERM ORIENTATION (LTO)

LTO is the fifth dimension of Professor Geert Hofstede added in 1990. This dimension

deals with culture’s orientation to time (past, present and future outcomes). Values

associated with long-tem orientation are prudence, fortitude and making sacrifices for a

long-term goal. They grip in long-term commitments and sacrifice for a scrupulous

purpose (China, Hong Kong, Taiwan, Japan, and South Korea, India). This refers that

how much long term or long standing values are opposed to short term tradition and

values.

According to the characteristics of high long term orientated culture.

• Family is the basis of society, which means that they show appreciation to

traditions and values.

• Parents and men have more influence than young people and women which

means they do not display extravagance or act lightheartedly.

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 • Those cultures have a very strong work ethics which leads to recompense

determination, loyalty, and dedication.

• High value placed on educational programs and training. They do so in order to

keep away from doing no matter which would cause another to "lose face" or to

be guilty.

According to the characteristics of low long term orientated culture.

• Endorsement on equality

• Individuals from the culture are highly creative and innovative.

• They treat others as you would like to be treated, which makes them respectable

and reputed.

• They believe on self actualization in solving their problems and conflicts, which

makes them efficient to the acceptance of change. Self actualization is the

Maslow’s need.(Geert Hofstede, 1990)

Short-term orientation cultures value the past and present resulting in respect for

tradition, fulfilling social commitment, and shielding one's 'face'. Efforts should produce

quick and calculated results. It is important to uphold personal stability and happiness in

the present (USA, Russia and France). (Alison Kirkness). Asian countries with a strong

link to Confucian thinking acted in a different way from western cultures. In countries

and regions with a high LTO score, delivering on social obligations and avoiding "loss of

face" are considered very crucial.

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 EASTETRN VS WESTERN CULTURES

Eastern countries

Fig 1.2

Countries like Singapore, Malaysia, Hong Kong, and almost all the countries of central

Asia are considered to be one of the best places in the world to work. Expatriates from all

over the globe are flocking to this global city-state today to work. This region is one of

the world's freest economies. Singapore is also greatly ranked when it comes to business

competitiveness and economic growth, standing well above countries like the United

States. But countries in central Asia also beats many western countries in areas like city

infrastructure, technology, existence, education, health care, safety, etc., due to which

people around the globe want to work and settle there. All countries in central Asia have

a different business culture. The history, traditions, past, geography, atmosphere, society,

economy and lifestyle affect and form a particular business culture. Central Asia is

believed to have a very proficient working population and no wonder they have some of

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the best companies like Singapore Airlines and Temasek. Let us see how different factors

influence the work culture in central Asia. ( Aruma P,2010)

Diversity

Since a lot of Chinese, Indians (mainly from the southern peninsula) Malaysians and

Britishers have been settling here since a long time, the central Asia has hundred of

languages which makes beautiful blend of all these cultures in central Asia. The

government of different countries in central Asia allows various cultures to grow and

foster together harmoniously. The large multinationals will have a western culture of

operating whereas their slighter local counterparts will have a kind of traditional Asian

way of operating. Particularly in Singaporeans they have very restricted and strict when it

comes to work and life in general. (Aruma P , 2010)

Hierarchy and Collectivism

Work culture in central Asia is of a high power distance, which means there are clear

influence structures and social status is defined by your position in the workplace. People

at lower levels respect higher establishment. Respecting elders and seniors comes from

Confucianism that still exists in the Chinese culture. It is a hierarchical society where

juniors do not openly question or argue with superiors. Using of surnames or titles while

addressing is also significant like any other Asian country.(Aruma P, 2010)

Disciple

There are a set of rules for every circumstances and disagreeing is not found much. They

do not want you to show over enthusiasm, extravaganza and too many new ideas at work.

But they would persuade you to work imaginatively in the set limitations and boundaries

as Asia is trying to get more innovators than followers to improve itself in the current

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competitive market. Your family background and income is very important. People

normally talk less, do not speak loudly and rudely, irrespective of their position.

Communication is indirect, subtle and implicit and losing irritability is not common.

(Aruma P, 2010)

Saving Face

In many eastern societies the 'face' plays an important role. People are generally non-

confrontational. They would not do anything by which they or their families or friends

would be insulted or carry disrespect in the society. Retaining a superior image in all

aspects of life is critical to one's success. It is associated with having a good character and

good personal qualities. This is another reason why people do not say 'no' or 'I can't'

directly, but reply with a 'I will try' or 'I will let you know'. Discuss issues with your peers

or seniors in an indirect and discreet manner. Being aggressive is not considered to be

good, being calm and soft spoken, but well read and observant is what would be admired.

(Aruma P, 2010)

Western Countries

Fig 1.3

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Western culture is a body of knowledge derived from reason. This understanding is

represented in several core ideals and values, which include individualism, happiness,

rights, capitalism, science and technology. Western culture can also be referred to as

advanced culture; this is because its ideas and values promote the development and

improvement of advanced civilization. It does not currently exist, however, anywhere in a

perfect and complete form. Wherever Western culture exists, it is at least partially mixed

and often largely mixed with non-Western culture. (George Reisman, 1990).Western

culture currently dominates in many Western and Central European nations and several

nations settled by Europeans and their descendants. That’s the main reason that their LTO

is fairly low as compared to Asian countries. The other reason is that they have a vast

civilization, which has achieved the levels of all aspects of society. All the countries are

developed and now leading the world economy. (Ayn Rands, 1982)

Diversity

Western culture is a multi-ethnic, multi-religious and multicultural group of societies.

Religious autonomy and mutual respect for dissimilar religions is an crucial part of our

shared culture and is an significant fundamental standard of multiculturalism and social

equality. Organizational culture provides people to recognize value and promote cultural

and religious diversity can deal with more fully the needs of their clients. Respecting the

roles of religion in various cultures is part of well-mannered, ethical and professional

behavior, which promotes a just and neutral society.

Discipline

The informal social structure has as much to do with the way the organization runs as

does the formal structure. The informal social structure may or may not work to the

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detriment of the organization. It is safe to say, though, that it is always in managements

interest to understand that social structure, both so that they can predict how workers will

react to things, and to manipulate them. West follows the philosophy of informal rules

and regulation which does not tends to contribute to the malfunction of an organization.

So western culture tends to need of restraint and formality as compared to eastern culture

which give rise to high efficiency and synergy. (Elton Mayo, 1932)

Hierarchy and Collectivism

How much the less powerful members of institutions and organizations expect and accept

that power is distributed unequally. In cultures with small power distance (e.g. Australia,

Austria, Denmark, Ireland, New Zealand, USA), people expect and accept power

relations that are more consultative or democratic. People relate to one another more as

equals regardless of formal positions. Subordinates are more comfortable with and

demand the right to contribute to and critique the decisions of those in power.( Ailon, G,

2008)

Saving Face

In the west one can tease more easily without having to worry about someone taking it

the wrong way. In the west people usually have an exercise of the "roast". I think that

kind of activity is almost out of the questions for the Asian mind. In the west when you

do wrong with a social faux someone might tell you to shut up? In Asia people won't.

Rather, mental note will be taken and you get to pay in some subtle way farther down the

road. Though all are members of one human race, but people can be so unalike in their

fundamental perceptions that you might almost imagine that they did not spring from the

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same root or that they have been so isolated from one another that they might as well be a

different race. (Russell, 2006)

METHODOLOGY

In this research paper I have used simple methodology relying on secondary data from

internet, in order to reach my research findings. Literature giving supporting evidence to

my research is relying on different articles from published source. The back bone

literature of my research has been taken from Proff Geert Hofstede’s web site by taking

four determinants of Long term orientation which are, Discipline, Collectivism &

hierarchy in culture, saving face and diversity. Further some I have used some managerial

tools such as BCG matrix for interpreting results of my research, most of the results are

interpreted in those tools with the help of qualitative data because there was no

quantitative data available for them.

OBJECTIVE OF STUDY

Objective of this study is to help the expatriates and those people who are going to face

eastern and western culture. Or those people of organization that are going to go to other

countries on short assignments. This study might help foreigners in order to understand

the regional culture in terms of long term orientation. So they can mitigate their mistakes

which lead them to cultural shock. Other than that my research might contribute in the

research of further researchers who can further do descriptive analysis of eastern and

western cultures.

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 LIMITATIONS

There were many limitations when I was pursuing my research, the most common

limitations were lack of resource ( free published articles, books & other resources) were

not available, so the biggest constrain was financial constrain. Other constrain was that I

have never visited any eastern and western country as experience and experimentation is

the biggest tool in order to pursue any research. Last constrain was time constrain

because of the tough schedule of classes and projects I was unable to spend more time on

library.

RESEARCH FINDINGS

In this research paper I have analyzed LTO with help of four determinants which were

given in the definition of long term orientation by Geert Hofstede. These determinants are

DIVERSITY, DISCIPLINE, HIERARCHY/COLLECTIVISM AND SAVING FACE.

Table 1.1

LOW >PHILLIPINES
>THAILAND

Discipline
>BANGLADESH
>JAPAN
>SINGAPORE >CHINA >TAIWAN
>HONKONG
HIGH

>INDIA

LOW LTO HIGH

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ASSUMPION: As you can see in the above matrix most of the countries of eastern

world are lying in the high state, which give us conclusion that eastern world has high

discipline and value that’s why most of the countries have high long term orientation.

Table 1.2

LOW >BANGLADESH
>THAILAND

Diversity >PHILLIPINES

>JAPAN >CHINA
>SINGAPORE

HIGH >TAIWAN
>HONKONG
>INDIA

LOW LTO HIGH

ASSUMPION: In most of the countries of eastern world diversity lacks which takes us

to the conclusion that Eastern world has comparatively low diversity as compared to

west. This makes them to have more LTO rating in order to meet their goals and

objective.

Table 1.3

LOW >PHILLIPINES
>BANGLADESH

Saving Face >TAIWAN

>SINGAPORE

HIGH >HONKONG >INDIA

>THAILAND >CHINA
>JAPAN

LOW LTO HIGH

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ASSUMPION: Saving face is integral part of eastern world which sometimes give rise to

lack of diversity. Because these counties have very family oriented culture with the

respect of their value, norms and traditions.

Table 1.4

>BANGLADESH
LOW >PHILLIPINES

Hierarchy/Collectivism

>INDIA
>TAIWAN
>HONKONG
HIGH >CHINA
>SINGAPORE
>THAILAND
>JAPAN

LOW LTO HIGH

ASSUMPION: Most of the countries have high collectivism, which give rise to synergy

as a result their LTO is high.

Table 2.1

LOW

SDiversity >Norway
>Sweden

>USA
>Canada >England >Netherlands
HIGH >Germany
>Australia

LOW LTO HIGH

ASSUMPION: Most of the western countries like Germany, USA has very high

diversity. So they have very high innovative culture.

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 Table 2.2

LOW

Hierarchy/Collectivism >Netherland

>USA
>Canada >England
HIGH >Germany
>Australia >Norway
>Sweden

LOW LTO HIGH

ASSUMTIONS: Western culture is based on individualism which gives rise to a

conclusion that they have very high individualism which give rise to management

mobility. As a result Their LTO lacks as compared to Eastern world. We can also get

conclusion that because the western culture is individualism so they likely have very less

chance of losing face.

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 CONCLUSION

Culture includes set of shared attitudes, beliefs, values, norms, and practices that

characterizes an institution, organization or group. Cultural norms play an important role

in the technicalities and interpersonal relationships at work. Proffesor Geert Hofsted’s

five cultural dimensions gives us complete overview of different cultures. Amongst

which Long Term Orientation is very important. LTO is the fifth dimension of Professor

Geert Hofstede added in 1990. This dimension deals with culture’s orientation to time

(past, present and upcoming outlook of future). Values associated with long-tem

orientation are discretion, determination and making sacrifices for a long-term goal. Four

determinants of LTO plays an important role in understanding country’s LTO. These

determinants are DISCIPLINE, HIERARCHY/COLLECTIVISM, DIVERSITY, and

LOSE FACE. Discipline in eastern world is quite high which narrates their pragmatic

roots of norms and traditions. Whereas in case of it lacks they fairly give importance to

job description. On the other hand Collectivism is very high in eastern countries

especially in central Asia, whereas vise versa in case of western world. In Diversity

Eastern countries lack which tends to high LTO. In Eastern world people are likely to

lose face whereas in West people are not.

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