Case Study

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REPORT

Topic: Cultural analysis of Japan and Germany

Submitted by, Arya Suresh 4149245 Wednesday Batch

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Executive Summary This report provides an analysis and evaluation of various cultural dimensions mainly Hofstede‟s cultural dimensions, Edward.T.Hall‟s cultural dimensions, Trompenaars cultural dimensions and the various negotiation styles of Japanese and German in the workplace. It is important in the 21st century to study and analyze the various cultural profiles before entering the foreign country. Many of the managers who go to foreign county and fails in their mission is because they are not giving importance and giving emphasis for studying other‟s culture. While doing a business in other countries managers should be aware of political, economical, technological as well as cultural arena of the country especially in communication context. In the first section, it analyses various Hofstede‟s dimensions such as power distance, uncertainty avoidance, the extent of individualistic dimension and masculinity for both Japan and Germany, From all of these analysis the findings is that Germany is a low power distance country whereas Japan scores in between, in the case of uncertainty avoidance, Japan scores the highest and German score is low when compared to Japan. Japan is one of the highest masculine cultures of the world whereas Germany is more of feminine values when compared to Japan. In case of individualism, Japan is following a collectivistic culture where Germany is more towards individualistic one. In the second section of Trompenaars dimensions, Japan is a particularistic society with neutral emotional orientation, specific in their relationships and the followers of ascription based culture. In the third section of Hall‟s cultural dimensions, Japan is a user of high context communication who is polychronic time users whereas German follows low context communication with attention given to monochronic time. In the fourth and fifth section of non verbal communication and negotiation it describes the various contexts of kinesics and proxemics and different negotiation styles used by Japanese and Germans. Japanese and German culture are entirely different and at two extremes in all dimensions except for masculinity and uncertainty avoidance. German scores are at the middle for masculinity dimension which mention it is more of mildly masculine society when compared to Japan.

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Table of Contents 1. Introduction………………………………………………………………..4 1. Hofstede Cultural Dimensions 1.1.Power distance………………………………………………………….5 1.2.Uncertainty Avoidance…………………………………………………5 1.3.Masculinity……………………………………………………………..6 2. Trompenaars Cultural dimensions 2.1. Universalism vs.Particularism………………………………………….7 2.2 Neutral vs. affective……………………………………………………7 2.3. Specific vs. Diffuse……………………………………………………..7 2.4 Achievement vs. Ascription……………………………………………..7 3. Hall‟s dimensions 3.1 High Context vs. Low context…………………………………………….8 3.2. Private space vs. Public space…………………………………………….8 3.3. Monochronic vs.Polychronic time………………………………………....8 4. Non verbal communication 4.1. Proxemics………………………………………………………………………9 4.2. Kinesics………………………………………………………………………….9 5. Negotiation……………………………………………………………………..…9 6. Motivation……………………………………………………………………….9-10 7. Recommendations………………………………………………………………….11 8. Conclusion………………………………………………………………………….12 9. References ………………………………………………………………………….13

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Introduction In international business scenario, understanding and managing across the borders is of high importance. While doing business abroad, studying and analyzing other‟s culture and acting accordingly will lead to success. As a part of globalization national cultures should connect and collide with other cultures is so common. To be aware and understanding the culture of the country and adapting to that can avoid cultural blunders. This report discusses various cultural dimensions and the comparison between two countries and how it will affect their behavior in the workplace. Something considered to be good in one culture may be bad in another culture. In this report, it analyzed the cultural dimensions such as Hall‟s, Trompenaars and Hofstede for Japan and Germany. The findings are given in the report as Japan and Germany are the countries with lot of cultural differences that will affect when we do business with these countries. In uncertainty and masculinity there are slight similarities also.

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“Culture is defined as the collection of values, behaviors, beliefs, attitudes and customs that distinguish people from one society from those of other” (Steers 2005, p.137) 1. Hofstede Dimensions 1.1 Power Distance According to Hofstede, power distance is the extent to which the less powerful individuals in the society accepts inequality in power and accepts it as normal (1984). In Hofstede Cultural Dimensions, Power Distance is the level of acceptance by a society of the unequal distribution of power in institutions. Germany is a low power distance country which is scored as 35. They don‟t want to obey orders and liked to be the part of the decision making process. Japan scored 54 in power distance dimension, which means that Japan is a mildly hierarchical society. They feel that use of power should be temperate with the sense of obligation. For example, in while doing business with Japan, an outsider that is from a low power distance country like Austria feels Japan as an extremely hierarchical society because of their slowness in decision making process. The delay in the decision making is because of the fact that the decision should be go through every section in a hierarchy and should be verified in each layer before reaching the top management. 1.2 Individualism vs. Collectivism Individualism-Collectivism dimension explains the extent to which society seen its members as individuals or group members (Hofstede, 1984) In the case of individualism, Germans are individualistic society in which the people will take care of itself and their immediate family only. These types of societies give more importance to individual achievement. Loyalty will be build upon the personal preferences with strong sense of duty and responsibility. For Example: Communication between the employer and employees in this type of culture will be direct and honest even if it hurts the person and giving the employee chances to learn from mistakes. Social loafing is common in individualistic cultures whereas less for collectivistic societies. Japanese are collectivistic society, which give more importance to loyalty, empathy to sub ordinates. They emphasis more on participative management style and long perspective on decision making. Japanese people are highly concerned of losing face in front of public. For example: Hiring and promotions are strictly based on paternalism rather than giving importance to individual achievement and capabilities. 1.3 Uncertainty Avoidance In Uncertainty avoidance dimension, Germany is the one among the uncertainty avoidance countries which has a score of 65 whereas for Japan is at the highest score of 92.These uncertainty avoidance countries will seek for more job security and greater career stability. An example for uncertainty avoidance in Japanese culture is that before starting a new business or a project Japanese will conduct a feasible study to identify the risk factors associated with it. Low risk decisions, lifetime employment are more common in these types of cultures.

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1.4 Masculinity In the masculinity dimension Germany scores 66 which explains that Germany has a masculine culture which mainly stresses on masculine values –assertiveness, lack of concern for others, competition and challenge. Japanese culture is a highly masculine culture than Germany which scores 95. The example for masculinity that can be seen in the Japanese culture is the drive for excellence and in material production. The major masculine behavior in Japan can be seen in their workplace as they are workaholic and like for work for long hours which in turn makes it difficult of women in Japan to reach the highest level in their career in a workplace. In Japan in many areas of business we can see only less women managers and the influence of religion such as the concept of inner strength in Zen Buddhism which clearly shown the masculine value prevailing in the society. In Germany which is also a masculine society but fewer masculine than Japan, they depict lot of selfesteem in their tasks. Managers are supposed to be more decisive and assertive. 100 90 80 70 60 50

Japan

40 30 20 10 0 Power Distance

Individualism

Masculinity

Uncertainity Avoidance

80 70 60 50 40 Germany

30 20 10 0 Power Distance

Individualism

Masculinity

Uncertainity Avoidance

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2.Trompenaar’s value dimensions According To Trompenaars seven dimensional models which represents the national culture differences is very significant when we go and do business internationally (1993). Trompenaars states that "understanding our own culture and our own assumptions and expectations about how people should' think or act is the basis for success" (p. 2). 2.1 Germany is a universalistic society whereas in the case of Japan it is Particularistic. Universalistic societies give more importance to rules and obligations and they believe that everyone in the society should follow the rules and obligations whereas Particularistic society like Japan gives more emphasis on individual situations and relationships. In Germany, they are more likely to use contracts, formal procedures and systems in business. For example, if a person is inside a car in which his friend is driving the car, car violates the traffic rules and hits a pedestrian walking there, people who come from universalistic culture like Germany give more importance to rules than relationships tell the truth and won‟t try to protect his friend and persons coming from the particularistic cultures like Japan will help his friend by bending the truth. This is because people in particularistic societies give more importance to relationships. 2.2. In neutral versus affective dimension, Germany follows a Neutral attitude in relationships whereas Japan is more affective in their relationships. This describes how the people in the society express their emotions. In Germany they clearly differentiate work and home life. It can be in words like “work is work” and “play is play”. They spend more time away from work and they are giving more importance to free time and family. In a neutral culture society like Germany, they don‟t show their emotions in business meetings as similar dimension is prevailing in Japan also, which is a neutral culture and their expression of emotions is set aside to their family and close friends only. Japanese consider affective dimensions, which include those cultures that openly express emotion in business place is regarded as unprofessional attitude. 2.3. In Specific versus Diffuse dimension, it defines the emotional course of relationships. Japan tends to be more diffuse and Germans seems to be more specific in which they seem to be confrontational, extrovert and keep their work life and personal life separately. For example in a diffuse culture like Japan final decision regarding signing a contract or a deal in the negotiation process will depend on the relationship building. In Japan More priority is given to work life than personal life. For Eg.drinking party (Nomikai) is used as a chance for communicating with each other for work. Employees in Japan work 60 hours a week and they are working for long hours because of their promotion culture which is deep-rooted on seniority system. In a specific culture like Germany, for example a project leader separate out of the task relationship with his subordinates and isolate this relationship in work with all other connections. 2.4. In Achievement vs. Ascription dimension, Germany follows achievement based culture, which gives importance to individual achievement and competency. New comers or the new recruits will be given higher status and influence in their career if they perform well in their role and based upon the educational qualification and previous experience. Therefore in German culture women and youth can be seen in the higher level position in their workplace. Japanese gave priority to ascription culture in which they are given higher status based on their seniority, age, class, gender etc.

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3 Edward.T.Hall (Hall’s Cultural Dimensions) Hall‟s theory mainly highlights three main dimensions: interpersonal communication (high context vs. low context), personal space (public space vs. private space), and time (monochronic vs. polychronic) According to Hall, culture of the world can be compared on the scale from high context to low context (1990, 6) In high context cultures, “communication style is influenced by closeness of human relationships, well structured social hierarchy and the strength of behavioral norms” (Kim et al, 1998, 512) 3.1. Japanese cultures are high context communicators which means they use indirect and implicit messages for their communication, that is, use of body language and expressions for communication. According to Hall, high context communication involves more of the information in physical context or internalized in the person (1976.p79). They are more committed to long term relationship and value traditions, they consider them most important than task. They seem to be more non confrontational and slow to change. They are deemed to be the highest context communicators in the world. They mostly depend on non verbal communication styles such as facial expressions, voice tone etc.They won‟t directly say “no” as a sign of rejection and their “yes” has meaning „I hear you‟. For example: During meeting sessions in instance of stresses or difficulties, Japanese use their silence in order to control their stress and makes others feel comfortable but Westerners feel extreme uneasiness about the Japanese has shown and they want more discussions over the issue that the Japanese trying to avoid. Another example while speaking to Japanese is that listener has to listen carefully because there will be meaning beyond the words. German cultures are low context communicators which mean communication is direct, explicit and precise and it is based on the true intentions and feelings. Germans always maintain short term relationships and they are more direct and confrontational. Germans make their statements directly and openly in a way others thinks it as rude and confrontational. Others can expect a straight forward answer from the German because they don‟t hesitate to say “no”,” this is impossible”. The problem comes in communication between low context and high context culture is that a person coming from a low context society like Germany whose behavior is judged by the high context culture like Japan as impolite, rude and unskilled. At the same time Japanese person‟s behavior high context culture An example which differentiates low context culture from high context is that when a new person is recruited to an organization the Japanese people will give two or three weeks training classes to the individual to become familiar with the values of the organization whereas in Germany they spend only a few hours explaining with them and values and the missions of the corporation should be written and framed and hanged on the walls in the reception area. 3.2. The second dimension introduced by Hall is regarding the personal space, in other words Public Vs. Private space. Germans won‟t allow others to invade their personal space they will maintain one arm distance and touching a person while speaking is considered as offensive. In the case of Japan, they also maintain their personal space away from strangers‟ as same as Germans do. While on conversation, it is not allowed to touch others especially when it is between men and women.

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The perception about the time is culture specific (Hall, 1976) 3.3. In the case of the use of Monochronic vs. Polychronic time, usually high text communicators in Japan are the users of polychronic time whereas just the opposite for low context culture following country like Germany. Polychronic time users do many tasks at a time and punctuality and meeting deadlines are not important in these types of cultures. Monochronic cultures are mostly oriented to planning and scheduling so as they can promote efficiency. According to Hall, punctuality is very important for monochronic cultures (1959).In Germany appointments are accurately planned and they expect others to follow the same and punctuality is regarded as the part of good manners. 4. Non verbal communication 4.1. Proxemics: Germans should maintain a one arm distance from people in other‟s culture and they feel irritated if others invade their personal space. As it is a low contact culture, physical contact with the person in other culture is little through handshake. It is considered as disrespect to shake someone‟s hand with the other hand in the pocket. It is important to maintain direct eye contact with the German especially if it is an introductory meeting. Putting index finger in head is considered as an insult. Japanese find it impolite to interfere in the middle of the conversation. Silence is one way of non verbal communication in which they are taking time to think what is being communicated and understanding that. In the case of maintaining eye contact, looking straight to someone‟s eyes is considered as impolite and is believed as challenging that person. They will show respect to other person by looking down. Japanese feel uncomfortable with a friendly hug. 4.2. Kinesics: Among Germans, raising eyebrows up towards other person in a business meeting is considered complimenting other person for coming up with new idea. When someone circle index finger and thumb finger in the shape of “okay” is considered as an insult in German cultures. 5. Negotiation Japanese people need some time to know the other person and they consider first meeting for this purpose. They expected others to introduce them according to their highest rank and should be seated correspondingly. Japanese people need to maintain a personal relation along with the business relation with their counterparts. Final decision will be made until all persons in that team agrees to that decision. German people mostly plan ahead with their meetings are very formal with strict start and finish times. They are not at all concerned of building relationships whereas Japan is concerned more about that. Punctuality is most valued in Germany but the decision making is a slow process for them.They usually believes in win-win situation and they have a straight forward approach negotiation style. 6. Motivating employees Motivation is the foundation and fundamental measure for success. As most Japanese people have life time employment and they are not ready to take risks and avoid ambiguous situations .The only way to motivate them is giving them job security with higher career progression and salary increments. By giving all these employees will work in achieving the corporate goals. The principle of equality is the way to compete and cooperate with each other. Giving time and helping Japanese to improve in various areas is the way to motivate them. They got motivated if they are included in a group and put them into the prestigious one. They get inspired knowing that their corporation is doing something good for the society.

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In German Culture, compliments are taken as others are trying to “butter someone up”. It takes time to trust someone. After earning trust, positive feedback, appreciate for new ideas are widely accepted and motivates them.

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Recommendations When doing with people from other cultures, before doing business the person should study various cultural dimensions that affect their business and adapt to that local environment. For the success of business, one should avoid self reference criterion of seeing things and avoid ethnocentrism. In order to avoid miscommunication especially between high context and low context communication, while speaking to counterparts speak clearly and openly, give information through multiple channels. That is, through emails, telephone calls and clarify the information passed is interpreted correctly. Be aware that one cannot change the culture by one night and be precise what you are saying and avoid the usage the idioms, be ready to face ambiguity. Communicate clearly the objective, mission and use appropriate leadership style which is acceptable to their cultures and keep good relationship with the employees. Conclusion From the analysis of Japanese and German culture, it is clearly understood that Japan and Germany are the two countries who have entirely different cultural dimensions. Before going to do business internationally, and to be successful in an international market everyone should be aware of the cultural environment and “do‟s and “don‟ts” in that country in order to avoid cultural blunders. From these findings we understood that cultural differences are so important and it plays a good role in the successful running of a business. Before starting global operations, companies should provide the managers proper cultural training so that they can adapt easily adapts to the new environment.

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References 1. Revisiting Hofstede‟s Dimensions: Examining the Cultural Convergence of the United States and Japan 2. Shoji Nishimura, Anne Nevgi and Seppo Tella ,Communication Style and Cultural Features High/Low Context Communication Cultures: A Case Study of Finland, Japan and India 3. Hedderich.N, "When Cultures Clash: Views from the Professions," Die Unterrichtspraxis (1999): 161-65 4. Kretzenbacher H, Clyne.M, Australian Review of Applied Linguistics, volume 29, No.2, 2006, Monash University Press. 5. Fushige .A,Spiceer.D,Leadership Preferences in Japan: An exploratory study 6. Wurtz.E, Intercultural communication on website: A cross cultural analysis of websites from high context and low context cultures, Journal of Computer Mediated communication. 7. Hofstede.G,Riding the waves of commerce: A test of trompenaars' “model” of national culture differences, International Journal of Intercultural Relations, Volume 20,No 20,pp 189-198,1996 8. Mendonsa.Robert.M,Riding the waves of culture: Understanding Cultural diversity in Business, Human Resource Development Quarterly 10.2 (Summer 1999):pg 185-188

9. www.dartmouth.edu/~german/German8/Typical.html 10.

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