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MANAGING
C U LT U R A L
DIFFERENCES
SIXTH EDITION
 Managing Cultural Differences:
Global Leadership Strategies for the 21st Century, Sixth Edition
Philip R. Harris, Ph.D., Robert T. Moran, Ph.D., Sarah V. Moran, M.A.

Managing Cultural Diversity in Technical Professions

Lionel Laroche, Ph.D

Uniting North American Business—NAFTA Best Practices

Jeffrey D. Abbot and Robert T. Moran, Ph.D.

Eurodiversity: A Business Guide to Managing Differences

George Simons, D.M.

Global Strategic Planning: Cultural Perspectives for Profit and Non-Profit Organizations
Marios I. Katsioulodes Ph.D.

Competing Globally: Mastering Cross-Cultural Management and Negotiations

Farid Elashmawi, Ph.D.

Succeeding in Business in Eastern and Central Europe—A Guide to Cultures,

Markets, and Practices
Woodrow H. Sears, Ed.D. and Audrone Tamulionyte-Lentz, M.S.

Intercultural Services: A Worldwide Buyer’s Guide and Sourcebook

Gary M. Wederspahn, M.A.
 Sixth Edition

M A N A G I N G
C U LT U R A L
DIFFERENCES
Global Leadership Strategies
for the 21st Century

25th anniversary edition

Philip R. Harris, Ph.D.

R o b e r t T. M o r a n , P h . D .
S a r a h V. M o r a n , M . A .

Judith Soccorsy
Editorial Coordinator

AMSTERDAM • BOSTON • HEIDELBERG • LONDON •

NEW YORK • OXFORD • PARIS • SAN DIEGO •
SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO
Elsevier Butterworth–Heinemann
200 Wheeler Road, Burlington, MA 01803, USA
Linacre House, Jordan Hill, Oxford OX2 8DP, UK

Copyright © 2004, Philip R. Harris, Robert T. Moran, Sarah V. Moran.

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval

system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior
written permission of the publisher.

Permissions may be sought directly from Elsevier’s Science & Technology

Rights Department in Oxford, UK: phone: (+44) 1865 843830, fax: (+44)
1865 853333, e-mail: [email protected]. You may also complete
your request online via the Elsevier Science homepage (http://elsevier.com),
by selecting “Customer Support” and then “Obtaining Permissions.”

Recognizing the importance of preserving what has been written, Elsevier

prints its books on acid-free paper whenever possible.

Library of Congress Cataloging-in-Publication Data

Harris, Philip R. (Philip Robert), 1926–
Managing cultural differences. Global leadership strategies for the 21ST
Century.—6th ed. / Philip R. Harris, Robert T. Moran, Sarah V. Moran.
p. cm.—(Managing cultural differences series)
Includes bibliographical references and index.
ISBN 0-7506-7736-8 (alk. paper)
1. International business enterprises—Management.
2. Acculturation. 3. Cross-cultural studies. I. Title: Global leadership
strategies for a new world of business. II. Title: Leadership strategies
for a new world of business. III. Moran, Robert T., 1938–
IV. Moran, Sarah V. (Sarah Virgilia), 1972– V. Title. VI. Series.

HD62.4.H37 2004
658.1¢8—dc22
2003061551

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library.

ISBN: 0-7506-7736-8

For information on all Butterworth–Heinemann publications visit our

website at www.bh.com

04 05 06 07 08 09 9 8 7 6 5 4 3 2 1

Printed in the United States of America

 To our wives,

the late Dorothy L. Harris

and Virgilia M. Moran,

whose career paths crossed ours

on foreign soil and international assignments,

and who taught us so much in marriage

about managing cultural differences!

To our late esteemed colleague, Farid Elashmawi, who authored

two books in the Managing Cultural Differences Series.

This Page Intentionally Left Blank
 CONTENTS

Foreword, xi
Prologue, xiii
Acknowledgements, xvi

Unit 1
Cultural Impacts on Global Management

1 GLOBAL LEADERS AND CULTURE . . . . . . . 2

Culture and Its Characteristics 4, Systems Approach
to Culture 10, Key Cultural Terminology 12, Cultural
Understanding and Sensitivity 21, Cross-Cultural
Learning 22, Global Transformations 23, Key
Concepts for Global Leadership 25, Global
Organizations 27, Summary 31, References 33

2 GLOBAL LEADERS AND

COMMUNICATIONS . . . . . . . . . . . . . . . . . . . 35
Cultural Differences as Communication Resources 37,
Global Communication 41, Cultural Factors in
Communication 42, Communication Keys—Context
and Listening 44, Attribution 50, Variables in the
Communication Process 54, International Body
Language 56, Guidelines for English and Foreign
Languages 58, Technology and Intercultural
Communication 62, Handling Two Swords at the Same
Time—A Global Shift 65, Summary 66,
References 67

vii
 3 GLOBAL LEADERSHIP IN
NEGOTIATIONS AND ALLIANCES . . . . . . . 69
Negotiating Across Cultures 70, Assumptions and
Negotiating 74, Example of “Cultural Baggage” 76,
Framework for International Business Negotiations 77,
Strategic Collaborations 83, The Price of Failed
Negotiations 87, Global Study of Management 90,
Synergistic Skills for Global Management 93, Challenges in
International Management 94, Summary 97, References 97

4 LEADERSHIP IN CULTURAL CHANGE . . . . 99

Changes in Life Spaces 100, Leadership and Change 116,
Leadership in Changing Organizational Culture, 123,
Managing the Knowledge Culture 135, Summary 137,
References 138

5 LEADERSHIP IN CULTURAL SYNERGY . . . . 140

Understanding Synergy’s Implications 141, Synergy in
Organizational Culture 146, Synergy in Global
Organizations 148, Synergistic Team Management 153,
Synergy Among Professionals 164, Transitioning into the
Knowledge Culture 168, Summary 170, References 171

6 MANAGING TRANSITIONS AND

RELOCATIONS . . . . . . . . . . . . . . . . . . . . . . . 172
Coping with Transitional Challenges 174, Culture
Shock and Acculturation 178, Relocation and
Deployment Systems 191, Business Etiquette and
Protocol Abroad 202, Summary 205, References 206

7 MANAGING DIVERSITY IN THE

GLOBAL WORK CULTURE . . . . . . . . . . . . . . 208
Globalization and Diversity 209, People on the
Move 213, Defining Cultural Diversity 215, The
Microculture of Work 216, New Work Procedures 217,
A Macrosystemic Perspective on Organizational
Diversity 219, A Microsystemic Perspective 221,
Empowerment 225, Summary 228, References 229

8 WOMEN IN GLOBAL BUSINESS . . . . . . . . . 232

Current Status of Global Women Managers 235,
Global Barriers Hindering the Advancement of
Women 237, Persistent Global Cultural Stereotypes 242,

viii
 Balancing Work and Family 243, Selected Woman
Managers’ Views 244, Company Initiatives to Break the
Glass Ceiling 246, The Next Generation 248, What the
Future Might Hold 251, Summary 253, References 254

9 EFFECTIVE PERFORMANCE IN THE

GLOBAL MARKETPLACE . . . . . . . . . . . . . . . 256
Global Leaders and Strategic Alliances 259, The
Psychological Contract 260, Developing Human
Resources 261, Global Performance 262, Integrity in
Business Organizations 264, Ethical Relativism 266,
Cultural Changes 268, Managing Technology
Transfer 270, Effective Global Leadership 272,
Summary 273, References 273

Unit 2
Regional Culture Specifics

10 DOING BUSINESS WITH

NORTH AMERICANS . . . . . . . . . . . . . . . . . . 278
(United States and Canada)
Pan-American Management Perspectives 280, Northern
America’s Indigenous People 282, Canada 290, The United
States of America 295, Summary 310, References 310

11 DOING BUSINESS WITH

LATIN AMERICANS . . . . . . . . . . . . . . . . . . . 312
(Mexico and Brazil)
Mexico 317, Central American States 325, South American
Cultural Development 327, Brazil 329, Latin American
Cultural Themes 341, Challenges for Pan-American
Cooperation 346, Summary 348, References 349

12 DOING BUSINESS WITH ASIANS AND

AUSTRALIANS . . . . . . . . . . . . . . . . . . . . . . . 352
(Australia, China, India, Indonesia, Japan, Malaysia, Pakistan,
Philippines, South Korea, Taiwan, Thailand, and Vietnam)
Selected Pacific Basin Countries 354, Australia 357,
People’s Republic of China 362, Hong Kong 370,
India 371, Indonesia 378, Japan 382, Malaysia 390,
Pakistan 394, The Philippines 397, Singapore 402,
South Korea 403, Taiwan 409, Thailand 411,
Vietnam 412, Summary 418, References 418

ix
 13 DOING BUSINESS WITH EUROPEANS . . . . 422
(France, Germany, Great Britain, Greece, Italy, Poland, Russia,
Spain, Turkey)
European Diversity and Synergy 425, Western
Europe 434, Great Britain 434, France 440, Spain 449,
Other Western European Cultures 454, Central Europe 456,
Germany 456, Poland 463, Other Central European
Cultures 466, Northern Europe 468, Southeastern Europe 472,
Italy 475, Greece 485, East Europe/Eurasia 488, Russia 492,
Turkey 500, Summary 504, References 504

14 DOING BUSINESS WITH

MIDDLE EASTERNERS . . . . . . . . . . . . . . . . . 508
(Egypt, Saudi Arabia, and Region)
Middle East Overview 510, Characteristics of Arab
Culture 517, Cultural Aspects of Egypt and
Saudi Arabia 521, Egypt 521, Saudi Arabia 526, Middle
East Business Customs and Protocol 532, Synergy: Middle
East Hope 537, Summary 538, References 539

15 DOING BUSINESS WITH AFRICANS . . . . . . 542

(North Africa, East Africa, West Central Africa,
Southern Africa)
Insights into Africa 546, Cultural Characteristics of
Africans 550, Cultural Specifics by Geographic
Regions 554, North Africa 554, Morocco 556,
East Africa 558, Kenya 560, West Central Africa 564,
Nigeria 567, Southern Africa 574, South Africa 576,
Prospects for African Synergy 584, Summary 586,
References 587

EPILOGUE, 589

INDEX, 592

ABOUT THE AUTHORS, 599

x
 FOREWORD

Don’t be fooled by the authors’ statement, “The realities about which

we write are not only complex, but constantly changing and our
material represents a starting point. . . .” This is an understatement.
In their sixth edition of Managing Cultural Differences, they provide a
terrific springboard for understanding the complexities, challenges, and
rewards of running global operations. I appreciate the blend of con-
cepts combined with everyday practicalities and pragmatism. Whether
the reader is a student hoping to enter the world of international busi-
ness, or a practitioner trying to keep pace with unprecedented histori-
cal changes, this book has something to offer.
Managing Cultural Differences, 6th Edition documents critical sensi-
tivities the businessperson must exhibit in various parts of the world.
This book intelligently points out that many paths lead concurrently to
the bottom line. When Bob Moran visited us, he quoted Blaise Pascal,
summarizing a mindset the businessperson of today must possess:
“There are truths on this side of the Pyrenées which are falsehoods on
the other.” The world of business demands a repertoire of style, a
respect for diversity, and an understanding of cultures. It means taking
a keen interest in how a person might possess a widely divergent per-
spective on a matter that seems abundantly clear to you. While this
may cause discomfort to a newcomer on the international scene, the
authors are quick to point out that cultural differences can be a
resource, not an impediment. Our organization is learning to see the
world from a customer’s point of view—and a customer in Germany
may have a different perspective than a customer in Tokyo or Mexico.
Who’s right? They all are.
I have personally experienced many of the scenarios portrayed in this
book. The comment in Chapter 2, “. . . the very vitality and creativity
of an organization or nation depends upon the content and character
of its communication . . . ,” hits the target. Communication on a world-

xi
 wide basis is a continuous and active process. It is a process without
beginning or end. It means listening to all of the people for their ideas
to help us meet business objectives. It means projecting the company’s
vision in a manner that connects with these same people. It means
forming a corporate culture capable of coping with competition and
change anywhere in the world. Managing Cultural Differences, 6th
Edition has captured these ideas in a chapter that should be read by
anyone who hopes to understand the “hard” work of running the
“soft” side of business.
While the authors rightly say we have learned some techniques from
the Japanese, I would add that a benefit of being in global business is
that we have learned from everyone. International business is more
than a producer of goods and services. It must be a teacher and student
simultaneously—a craftsman and an apprentice dedicated to continu-
ally improving the arts and sciences of managing without borders. The
global enterprise we call Delphi Corporation is inclusive, not exclusive;
it consists of customers, employees, stockholders, stakeholders, part-
ners, suppliers, and communities around the world. The authors rec-
ognize that the organization of the future is beyond technologies and
machines—it is people—people with cultural differences. The clever
and successful organization will recognize that these differences, prop-
erly managed, are among its core competencies. Managing Cultural
Differences, 6th Edition is not only relevant and current, it is prophetic.
And it’s a good read!

J.T. Battenberg III

Chairman of the Board, CEO and President
Delphi Corporation
Troy, Michigan

xii
 PROLOGUE

This is the 25th anniversary of Managing Cultural Differences

(MCD), now going into its sixth edition! The two original authors
were themselves a cross-cultural team of behavioral scientists—one a
Californian with experience in India as a Fulbright professor, the other
a Canadian with five successful years in Japan in humanitarian service
and as advisor of their national hockey team! When first published in
1979, the book was ahead of the market, which is finally recognizing
the importance of culture and its impact on human behavior and per-
formance. Only in this 21st century are we beginning to realize that we
create the worlds in which we live, but on the basis of our unique cul-
tural codes. Though a quarter-century has passed since MCD’s incep-
tion, its message has never been more relevant. Today, the human
family struggles with two contrary forces—globalization and diversity
in an Information Age versus increasing racism, ethnic hatreds, and
immigrant bashing. May those who seriously read this volume learn
how to encourage the former and curb the latter.
Culture is not just a tool for coping, but also a means for creating
awareness and learning. It underpins all human activities and explains
much of our behavior. Our favorite analogy is to compare this concept
to a beautiful jewel—hold it to the light, turn it around, and reveal its
multiple dimensions. With each new writing of this text, we plumb its
depths for meaning and discover more applications—from national to
organizational to team and work culture. Now we not only perceive
its insights for the global marketplace and a peaceful environment, but
also for outer space, as our species creates a new off-world culture.
At this moment on Earth, we are also fashioning a postindustrial
knowledge culture amidst worldwide chaos. Yet, the authors have
ample confirmation of our basic thesis that cross-cultural competency
is essential, not only for meaningful human relationships, but also for
success as professionals, managers, or technicians. Numerous trends

xiii
 have emerged that underscore the importance of effective intercultural
relations for improving the quality of our lives, particularly with
reference to job performance and productivity. We are grateful to
more than a million readers, including university and college profes-
sors whose adoptions of this text in over 200 global institutions of
higher education prove the validity of our message. But especially we
thank the many HRD consultants and trainers who have shared our
thoughts with managers and other personnel in global corporations.
The needs and feedback of our readership motivate this major revision,
whose pages await your careful consideration.
This 2004 version of Managing Cultural Differences addresses pro-
found contemporary changes—economic, social, political, and techno-
logical. MCD6 reflects the transition to a new work culture, with its
emphasis on communication technologies and knowledge workers. It
seeks to respond to the challenges of the global market in turmoil.
There are other significant alterations in this sixth edition. First, we
have a new valued author, Sarah V. Moran, and a new publisher,
Butterworth–Heinemann. Second, streamlined layout and content
make this volume even more “user friendly.” We hope you will like the
appearance in terms of typeface, graphics, and other format improve-
ments. Both the material covered and references have been extensively
updated—more maps for geographic areas and more profiles of coun-
tries within a region. The number of pages has increased for added
insights, such as an opening chapter on “Global Leaders and Culture”
and an “Epilogue” that both summarizes the book’s themes and details
future projects. Third, the expanded content has been organized now
under just two units, “Cultural Impacts on Global Management,” con-
sisting of nine chapters; and “Regional Culture Specifics,” with length-
ened coverage in the final six chapters. The United Nations recognizes
226 nations in the world; obviously, we could not treat all their unique
cultures in this text. Instead, we chose a representative sample to
provide culture specifics in terms of six major regions—North America,
Latin America, Asia, Europe, the Middle East, and Africa.
Just as organizations are being “reinvented and reengineered,” so,
too, this publication. Yet, in our content, especially in the many
exhibits, we still seek a balance between theory and practice, as well
as between research findings and models. Perhaps this may partially
explain why Managing Cultural Differences has been so popular and
has lasted so long. Although this work has always been written for both
practitioners and students, we recognize that many of our readers are
instructors in various departments of universities and colleges or in cor-
porate human resource development (HRD). Thus we have enhanced
the accompanying MCD6 Instructor’s Guide, so as to facilitate the
learning process. The Guide contains not only information on teach-
ing each chapter, but also material on cross-cultural HRD and train-
ing, as well as instruments that can be reproduced for use with groups.

xiv
This resource is only available electronically to qualified instructors
who will receive passwords to download the text electronically. Our
publisher’s representatives can provide further details, along with access
to electronic case studies useful in covering our learning materials:
www.businesscases.org
The most valuable auxiliary to this parent book is the Managing Cul-
tural Differences Series, that is, the supplemental volumes with other
coauthors that augment our themes here. A review of these current
titles, listed opposite the title page, will indicate how complemen-
tary their use will be to the chapter content of the core book, MCD6!
Our Butterworth–Heinemann Web site can provide more details:
http://books.elsevier.com/management.
We welcome your continued evaluation of how Managing Cultural
Differences, both as a book and a series, can better serve your needs.

The Authors:
Philip R. Harris, Ph.D.
La Jolla, California
Robert T. Moran, Ph.D.
Scottsdale, Arizona
Sarah V. Moran, M.A.
Taipei, Taiwan

xv
 ACKNOWLEDGEMENTS

Our sixth edition would not have been possible without the aid of
our very capable editorial assistant, Judith E. Soccorsy.
Writing Managing Cultural Differences was not only a synergistic
effort by the authors, but required assistance of many colleagues. We
acknowledge them in the text references. We owe a debt of special
gratitude to our editor, Karen Maloney, of Elsevier/Butterworth–
Heinemann who helped us keep our focus. Sarah Hajduk was a joyful
and highly-qualified project manager at Elsevier/Butterworth–Heine-
mann who led a very competent team.
We thank J.T. Battenberg III, chairman, CEO and president of Delphi
Corporation for the Foreword.
We are grateful to the following individuals for permitting us to use
portions of their research: Nancy Baldwin, Maria Brightbill, Wayne
Conway, Joseph Douress, Terry Finnegan, Ralph Krueger, Richard
Lewis, Carl Nelson, and Corrine Pfund. Many feature articles in two
outstanding international magazines, namely, The Economist, of
London and the National Geographic of Washington, DC have been
most helpful.
In addition we recognize, thank, and acknowledge these individuals
who contributed to this volume: the late Dr. Farid Elashwani, the
late Dorothy L. Harris, Elizabeth Moran de Longeaux, Sebastien de
Longeaux, and Molly Ann Hanley. Graduate students at Thunderbird,
American Graduate School of International Management, assisted in
reviewing culture specific materials in various editions. They are Laurel
Cool, Mary Mitchell, Mary Pietanza, Jeni Chávez, Cecile C. Ramírez
de Arellano, Jie Zhang Yuanlim, Kim Sung-do, B.W. Lee, Yoon Park,
Rebekhab Henry, Regina Sy-Facunda, Raj Kohli, William Everett,
Ferando Garcia-Pretel, Eduardo Magailanes, Sato Masatoshi, Barbara
Goodman, Karin Romano, Ardnt Luebbers, Larissa Koursova, ByungKi
An, John Bechtold, Biswajit Mukherjie, Eric-Jan Van der Byl and
Kristen Kelly.

xvi
 In the sixth edition, former students at Thunderbird, Chris Menn and
Maryellen Toffle wrote the sections on Brazil and Italy based on their
years of living and working in these countries. Molly C. Moran, also
a Thunderbird grad, updated and added demographic and economic
data, and prepared the index. Professor Zhongyuan Zhao identified
two Chinese professors and business consultants to update the section
on China. We thank all for their generous help.
We also acknowledge and thank the many professors and other users
of the text and Instructor’s Guide who gave us feedback about our
work. We have incorporated many of your suggestions in the sixth
edition.

Philip R. Harris, Robert T. Moran, Sarah V. Moran

xvii
This Page Intentionally Left Blank
 U NIT 1

C ULTURAL I MPACTS ON
G LOBAL M ANAGEMENT
“A global manager is set apart by more than a worn suitcase
and a dog-eared passport.”
Harvard Business Review, August 2003

“We don’t look so much at what and where people have studied,
but rather at their drive, initiative, cultural sensitivity . . . .”
Stephen Green, Group CEO, HSBC
Harvard Business Review, August 2003
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