Cross-Cultural Differences between the USA and China - Coursework Example

First Last Number 10 December Cross-Cultural Management In order to provide a better understanding among the differences in cultures of China and the USA, a thorough research has been conducted in this paper. These differences in the cultures of two countries create a barrier for cross cultural communication among the people of both the countries. A literature review has been conducted with the aim of presenting the difference in the cultures of China and the USA. On the basis of the six cultural dimensions as stated by Geert Hofstede, an in-depth concept regarding the cultural differences among these countries has been acquired, which help the employees of both the countries in the unification of their cultures. The six cultural dimensions stated by Geert Hofstede are Power distance, Individualism, Masculinity, Uncertainty avoidance, Long term orientation and Indulgence versus Restraint. Based on these six cultural dimensions, the Chinese are identified to be opposite to the Americans only in four dimensions that include individualism, long term orientation, power distance and indulge versus resistant. Through the research, it has been recognized that the cultural values of both the countries are different and Chinese culture is more inclined towards their value with respect to the American culture. INTRODUCTION Cross cultural differences between the USA and China negatively hamper the working culture of the organizations located at both the countries. As a result of the increase in the workforce diversity, most of the multinational organizations are facing the problem of managing cross cultural differences. Cross cultural differences create language barriers and accordingly, barriers in culture and values of the organizations result organizational inefficiency and misunderstanding. Whereas, an effective cross cultural communication helps to resolve the conflicts in the organizations and thus, improves the overall efficiency of the business operations. The American government passed the Chinese Exclusion Act in the year 1882 based on which the basic right of a Chinese to become an American was banned due to their ethnicity. However, after the Second World War, the Act was abolished as China helped the USA to fight against Japan. The US is a country where the people of different ethnic groups reside and they are all treated with equity, but the reason behind the indiscrimination with the Chinese was due to their unacceptable habits and prejudices. The Chinese people were aesthetic, which was the main reason behind retrieving them from the American culture. Moreover, the Chinese were not involved in any entertainment activities or created any trade union to bargain with their employers and were always engaged in work, which resulted in the economic loss to other ethnic groups in the US. These behaviors of the Chinese people created hatred against them by the ethnic groups of the US. Thus, the Chinese were neglected and treated negatively in the American society. However, being Chinese is not the main reason for the conflict, but the cultural differences between the two countries made them enemy of other ethnic groups of the US. In order to reduce the cultural difference between these two countries, it is required to establish a proper cross cultural communication between the people of these two countries. Moreover, the six cultural dimensions help to establish the cultural difference between China and the US (Euro-Asia Centre of Insead, “Chinese and America Cultures: Value Structure and Family Orientation”; Hubpages Inc, “10 Major Cultural Differences between China and the United States”; Li, “Cross-Cultural Communication within American and Chinese Colleagues in Multinational Organizations”; Etiquette Outreach, “Cultural Differences between America and China”; Hofstede, Hofstede and Minkov 27-47). THESIS STATEMENT The research paper focuses on cross cultural management aspects of the US and China. In this regard, the paper discusses about the different cultural dimensions of Hofstede in order to acquire an in-depth understanding about the cultural differences in these two countries. LITERATURE REVIEW Concept of Culture. Culture may be defined as the shared values, beliefs, customs, traditions, religion, attitude and knowledge acquired by a group of people in a society and transmitted through generations. The word culture has originated from the Latin word “Cultura”, which refers to the cultivation of the human character. Internally, culture can be affected in either of the two ways i.e. the force that is resisting the change and the force that is encouraging the change. However, culture can also be affected externally through the connection between the societies that may produce social shifts and result to the change in cultural practices. The definition of culture differs from different viewpoints. Geert Hofstede defined culture as “the collective programming of the mind which distinguishes the members of one group from another” (Belshek, “The Influence of Culture on the Negotiation Styles of British Students”). The values of culture is passing from one generation to other generations and there is a continuous change in it, as something new is added in each stage of the generation. Culture is something that an individual learns in his/her childhood and it is influenced by literature, region and history during their growth. Furthermore, it is argued that the perception and judgment regarding the people of the world can be affected by culture. In this regard, Campbell has defined culture as “a complex web of information that a person learns and which guides each person’s actions, experiences, and perceptions” (Campbell and Kean, “American Cultural Studies”). Dimensions of culture. According to Sage Publications, Geert Hofstede has developed a cultural dimension framework, which consists of six dimensions that are used for cross cultural communication. The six cultural dimensions are power distance, individualism, masculinity, uncertainty avoidance, long term orientation and indulge versus restraint. Power distance is the first dimension, which signifies the extent of anticipation and acceptance of the inferior group of people for uneven power distribution in an organization or in a nation. The power distance can affect a workplace environment to a large extent. As a result of the power distance, the employees may lose their willingness to present their important views and opinions to the managers. Similarly, the countries having high power distance help the people to accept the hierarchy system more easily. In such countries, centralization of power and large economic gap can be identified. However, in the countries with lower power distance, division of labor is the only thing that the people witness in the workplace. The second cultural dimension is individualism, which defines the relationship of an individual with other people. In an individualist culture, the people are concerned only on him/her or their close family members and the bonding among the individuals are loose. Opposite to the individualism is collectivism, which is referred to as the integrations of individuals into groups. In a collectivist culture, there is a strong bonding among the individuals. People since their birth live in an integrated society and are taught to live in a society by creating strong bonding with relatives and family members as well as peer groups. However, in a workplace, the relationship between the employers and the employees is formal and is on contractual basis. Masculinity is the third stage of the cultural dimension, which is based on the degree of emotions among the genders. In a masculinity society, the males are more ambitious and powerful. However, in a feminine society, more emphasis is provided on the quality of life and relationships. In this society, both male and female are humble and gentle and both of them care about their quality of life. Thus, the masculine society is more daring and success oriented, whereas the feminine society is focused on cooperation and compromising. Uncertainty avoidance is the fourth stage of cultural dimension. This refers to the degree to which a society can tolerate uncertainty. The people belonging to this society are highly emotional and try to reduce the occurrence of unusual circumstances and care more about their day-to-day activities. These people mainly prefer professionals for making decisions. The next stage of cultural dimension is long term orientation, which focuses on the future rewards rather than focusing on the present. In a workplace, the people are focused on establishing long term relationships with others. On the other hand, the short term orientation mainly focuses on the short term benefits in order to get an immediate result and similarly, the people are mainly focused on their present benefit. The last stage of the cultural dimension is indulgence versus restraint. This refers to the extent to which the individuals of a society try to control their desires and instincts. The indulged societies try to fulfill their basic desires of life by having fun and enjoying the life, whereby a restraint society belief that such fulfillment of the basis desires of the life should be restrained with the help of certain regulations (Hofstede, Hofstede and Minkov 27-47; Sage Publications, “Dimensions of Culture”). Criticisms on Cultural Dimensions as a Method for Studying Culture. According to the article of Safi in “Argument in Support and Against of Hofstede Work”, Hofstede’s cultural dimension has seemed to be much helpful in defining the cross cultural communication, but there are certain criticisms against the framework. There are some researchers have the opinion that the cultural dimension theory of Hofstede is not an effective method to measure the cross cultural differentiation. This method is only effective when the measured variable is culturally subjective and sensitive. With respect to this criticism, Hofstede argued that it is a method survey, but there were several methods for conducting that particular survey. Geert Hofstede has stated in his cultural dimensions, the homogeneity of the domestic population. However, the assumption is regarded incorrect, as a country consists of various ethnic groups and therefore, the individuals’ character acts as a hindrance in the process of analysis. Hofstede argues on the fact stating that the influence of a community on the analysis is ignored. Criticisms are also made on the fact that the cultural dimension of Hofstede is based on one company approach. Thus, based on a single company, it is not possible to define an entire countries cultural system. In this context, Hofstede argued that the analysis was carried out in order to measure the appropriateness of the difference between the cultures and Hofstede’s cross sectional analysis. Hofstede further stated that considering a single company would eliminate the influence of various management practices and corporate policies adopted by different companies that influences the behavior. There are some researchers who are on the opinion that Hofstede’s cultural dimension framework is out dated, as it does not consider the modern value of this changing global environment and internationalization. In this context, Hofstede stated that the outcomes of cross culture were based on the beliefs regarding a culture, which is not expected to be changed in an instance. Moreover, some researchers argued that four to five dimensions out of the six cultural dimensions do not provide clear information regarding the differences between the cultures. However, Hofstede accepted the fact and accordingly, included additional relevant dimensions to the framework (Safi, “Argument in Support and Against of Hofstede Work”). THE EXISTING CULTURAL DIFFERENCES BETWEEN CHINA AND THE US Cultural differences between China and the USA are identified to be affecting the national culture as well as the organizational culture of both the countries to a large extent. Thus, Geert Hofstede’s six cultural dimensions have helped in identifying the cross cultural difference between these two countries. Among the six cultural dimensions as stated by Hofstede, the culture of the US and China are different only in four dimensions that include power distance, individualism, long term orientation and indulgence. The cultural values of both the countries are opposite to each other. However, with respect to the American culture, the Chinese are more united towards their value. Geert Hofstede has conducted various researches in order to find out the difference between the cultures of China and the US (Hofstede, Hofstede and Minkov 27-47). The score of both the countries as per the cultural dimension are mentioned below: COUNTRY POWER DISTANCE INDIVIDUALISM MASCULINITY UNCERTAINTY AVOIDANCE LONG TERM ORIENTATION INDULGENCE USA 40 91 62 46 26 68 CHINA 80 20 66 30 118 24 Thus, from the above table, it can be recognized that among these six cultural dimensions, the culture of the US is opposite to the Chinese culture on four aspects, which are power distance, individualism, long term orientation and indulgence (Hofstede, Cultural Dimension Index). The Differences on Power Distance. Power distance is considered as an important element in the culture of China. Generally, a country is witnessed to have large power distance if it possesses certain characteristics like centralized authority, autocratic leadership, paternalistic style of management, multiple hierarchical levels, supervisory staffs of large number and expecting the differences between power and inequality. Thus, based on the Hofstede’s model, it can be identified that power distance of China is double to that of the US. Power distance of China is 80 whereas, for the SA it is 40. According to the statistics, it is found that inequality exists more in China than that of the US. The American culture believes more on the equality and thus, it can be concluded that in this dimension, China is better than the US. The Chinese culture is mainly based on the communist rules and teachings of Confucius, which mainly focus on giving respect for loyalty, seniority, age and harmony. The core element of Confucianism is based on three principles and five virtues that intends to establish a social environment following the moral standards. Thus, according to Confucianism, the officials should follow on the basis of the will of the emperor, the sons should follow in accordance with the will of the father and the wives should follow the will of the husband. Thus, it increases power distance in a country as well as the family, as the people are educated to respect others. Thus, China is highly influenced by this culture and higher power distance has made the people to accomplish their projects in a much efficient way due to higher authority. Even though the feudal social system of China has been replaced by Marxism, the perception and the values of the people are still influenced by it, and a new social order is formed that governs the behavior of the people and forces them to bend to power. However, in the US, power distance is less, which signifies that people follow the leaders to a minimum extent. Moreover, the concept of equality is prevalent in the US and the relationship between two persons as well as family members are also based on the same concept. The child calls the elders by their name and no one is offended by it. In China, this behavior is considered to be unethical and the Chinese society has a strict hierarchy. The power of an individual is determined according to their position in the hierarchy, because the people are educated to respect their leaders and powers (Customer Think Corporation, “Hofstede’s Five Cultural Dimensions”; Hofstede, Hofstede and Minkov 27-47; University Of San Diego, “Hofstede’s 5 Dimensions”). Individualism versus Collectivism. This is the second model of the cultural dimension. The Chinese culture is based on collectivism i.e. China focuses mainly on groups rather than individuals. Whereas, the culture of the US is based on individualism i.e. Americans focus mainly on the individuals. The people of China like to work together in groups, whereas the people of the US like to work individually. There is a common saying, “Unity is Strength”, which is applicable to China. As the Chinese people love to work together in groups, they make bigger progress. Thus, collectivism is considered as an important element in the culture of China. In early times, the interest of a group or a nation was considered above everything and the people used to sacrifice everything for the wellbeing of a nation or a group. However, in the US, the concept of individualism exists to a certain extent. The people are focused in protecting the personal interest rather than collective interest. The people of the US take their individual responsibility and they are not at all concerned about the group interest. Thus, it can be identified that the culture of China serves for the collective interest, which has become a key to success for the whole country (Customer Think Corporation, “Hofstede’s Five Cultural Dimensions”; University Of San Diego, “Hofstede’s 5 Dimensions). Masculinity versus Femininity. The score of both the countries i.e. China and the US is high in terms of masculinity. The score of the US is 62, whereas the score of China is 66, which indicates that China is more masculine than the US. In both the countries, the males are given more priority in the families as well as in the workplace. In a masculine society, the males are considered to be more powerful and ambitious than the females. The males are responsible for carrying out all types of external activities, whereas the females are responsible for handling the internal affairs. However, in the workplace, the people belonging to one gender are not liable to do the work of the opposite gender. Thus, it can be identified that the US and China are based on masculinity, which indicates that the countries are focused mainly on their success, achievement and competition. Investing more efforts on competition is considered to be profitable for the success of both the countries, as it helps the people in improving their progress, which will result in developing of the society as well (Customer Think Corporation, “Hofstede’s Five Cultural Dimensions”; University Of San Diego, “Hofstede’s 5 Dimensions). Uncertainty Avoidance. The uncertainty avoidance index is focused on the tolerance level of ambiguity and uncertainty within a particular society. A country whose uncertainty avoidance ranking is high indicates that tolerance level of the people is less for ambiguity and uncertainty. Thus, the people of these countries are bound by rules and laws. On the basis of uncertainty avoidance Index, both the US and China scores low i.e. the score of the USA is 46, whereas the score of China is 30. Even though, the rate of uncertainty avoidance is lower for both the countries, but the way of eliminating uncertainties by both the countries are opposite. The Chinese culture focuses mainly on the relationship between people and the organizations and based on their relationships, they used to acquire interest. The people of China believe in the ineffectiveness of law and ethical considerations, and social regulations. In such a society, the effectiveness of the laws and regulations are considered according to the control of the influential people. However, the Americans are highly concerned about the rules, social and ethical regulations and laws, but they do not consider the relationships with other people. In the US, the relationships are based on personal relationships, without considering the influential capacity of a person (Customer Think Corporation, “Hofstede’s Five Cultural Dimensions”; University Of San Diego, “Hofstede’s 5 Dimensions). Long Term Orientation versus Short Term Orientation. According to this cultural dimension, the score of long term orientation for China is 118, whereas for the US, the score is 26. The Chinese people mainly focus on plans for long term for better growth as well as sustainability, rather than focusing on the short term plans. Thus, with the help of proper planning, the people of China can perform their work in a better way. Long term orientation of China is also based on the policy of Confucianism, which focuses on the goodness of the human nature. On the basis of this belief, the people of China make their future plan after taking into consideration the relationship with other people and the organizations. Various virtues like perseverance and thrift have helped in attaining the long term rewards. The virtues are also accountable for the change of feudal social system to Marxism leading to long term orientation in the Chinese culture. However, the scenario of the US is totally opposite to that of the Chinese culture. The country follows short term orientation policy and the people belief that the nature of the human being is not good. They do not like interference of others in their personal life and hence, they try all possible means to reduce the power of the government as well as other people those who are interfering. Thus, believing on the fact that the nature of the people is not good, the people of the US focuses on short term orientation planning in order to have quicker results (Customer Think Corporation, “Hofstede’s Five Cultural Dimensions”; University Of San Diego, “Hofstede’s 5 Dimensions). Indulgence versus Restraint. This is the sixth stage of the Hofstede’s cultural dimension. This dimension is newly included in the Hofstede’s cross cultural framework and is also regarded as an ambiguous dimension, as the application of this dimension has not yet been come into full effect. The term indulgence refers to a society that focuses on the fulfillment of the basic human desires related to happiness, entertainment and fun, whereas restraint refers to a society that focuses on suppressing these human desires with the help of strict social norms. Thus, according to the score of the Hofstede’s cultural dimension index, it can be recognized that the score of China and USA are opposite to each other. China scores 24 and the USA scores 68, which shows that America is a highly indulgence country, whereas Chinese culture is based on restraint. The Chinese culture is highly opposed to certain social practices like marriage between same genders and non-marital relationship among others. They consider these social activities as illegal. Whereas in the US, these social practices are considered as legal and even in some places in the US, the government is planning to pass the rules of marriage between the same genders. Thus, spreading happiness is the main identification of an indulgent culture and between the two countries; the USA is in the top position. Whereas, the Chinese culture is highly conservative and they prefer to follow strict rules and regulations in order to restrain these types of social activities (Customer Think Corporation, “Hofstede’s Five Cultural Dimensions”; University Of San Diego, “Hofstede’s 5 Dimensions). CONCLUSION Thus, it can be concluded that the Hofstede’s six cultural dimensions concept is successful in finding out the difference between the cultures of China and the US. However, it can be identified that among the six cross cultural dimensions, the American culture is opposite to the Chinese culture only in four dimensions that include individualism, long term orientation, power distance and indulge versus resistant. Apart from these dimensions, both the countries scores high in terms of masculinity. The uncertainty avoidance index of both the countries is almost same, but the countries adopt opposite ways to reduce uncertainty. China mainly believes in long term orientation and thus, the Chinese make their future plans by taking into consideration the relationship status with others, whereas the US mainly focuses on short term orientation and thus, getting an instant result is their main motto without considering the status of relationship with others. In terms of power distance, China scores more than the US, which shows that inequality is persistent more in China, whereas the American culture is based on equality as a result of which the people of America do not follow their leaders. Moreover, the Chinese culture is based on collectivism and the people are always focused on the group interest, which helps them to perform their work in a much effective way, whereas the people of the US focus only on individual interest. Thus, according to the statistical scores derived from the Hofstede’s cultural dimension index, the degree of difference between the cultures of China and the US can be understood easily. As the research is based on certain aspects of the society as a whole, thus the outcome of the findings may differ from individual point of view. Works Cited Belshek, Jalal A. The Influence of Culture on the Negotiation Styles of British Students. 2005. Web. 6 Dec. 2014. Campbell, Neil and Alasdair Kean. American Cultural Studies. 1997. Web. 6 Dec. 2014. “Hofstede’s Five Cultural Dimensions”. CustomerThink Corporation. 2014. Web. 6 Dec. 2014. “Cultural Differences between America and China.” Etiquette Outreach. 2014. Web. 6 Dec. 2014. “Chinese and America Cultures: Value Structure and Family Orientation.” Euro-Asia Centre of Insead. 1992. Web. 6 Dec. 2014. Hofstede, Geert. Cultural Dimension Index. 2014. Web. 6 Dec. 2014. Hofstede, Geert, Gert Jan Hofstede and Michael Minkov. Cultures and Organizations. USA: McGraw Hill Professional, 2010. “10 Major Cultural Differences between China and the United States.” Hubpages Inc. 2014. Web. 6 Dec. 2014. Li, Yue. Cross-Cultural Communication within American and Chinese Colleagues in Multinational Organizations. 2012. Web. 6 Dec. 2014. “Dimensions of Culture.” Sage Publications. 2014. Web. 6 Dec. 2014. Safi, Abed El-Azez. Argument in Support and Against of Hofstede Work. 2010. Web. 6 Dec. 2014. “Hofstede’s 5 Dimensions.” University Of San Diego. 2014. Web. 6 Dec. 2014. Read More