1. Cross Cultural Differences and
their Implications for Managing
International Projects

2. Widely accepted studies
• Geert Hofstede’s study of IBM employees
in many countries
• Fons Trompenaars more recent study of
cultural differences
• Z. Aycan, et al.’s socio-cultural dimensions

3. Groups of distinctions
• Relations between people
• Motivational orientation
• Attitudes toward time
• Socio-cultural dimensions

4. Relations between people
• Universalism vs. particularism -- a rule-
oriented society (a well-developed legal
system) vs. a person-oriented society
• Individualism vs. communitarianism – the
individual is more important than the
group or the group is more important than
the individual

5. Motivational orientation
• Sharply defined roles for men and women
vs. similar roles
• Uncertainty avoidance – seeking to avoid
uncertainty vs. tolerating high uncertainty
• Power distance – people feel comfortable
with large differences in power among
people or they prefer equality

6. Attitudes toward time
• Long-term vs. short term orientation –
patient about results or not
• Sequential vs. synchronic – prefer to do
tasks one at a time or comfortable doing
several things at once
• Inner vs. outer time – preference for
working on one’s own schedule or
comfortable working on group’s schedule

7. Socio-cultural dimensions
• Paternalism – superiors provide guidance,
protection, and nurturing while
subordinates are loyal and deferential
• Fatalism – the belief that it is not possible
to control the outcomes of one’s actions,
so hard work and long-term plans are not
worthwhile

8. Western vs. Non-Western
Values
• Individualism
• Achievement
• Equality
• Winning
• Internal self-control
• Pride
• Respect for results
• Respect competence
• Time is money
• Collectivism/ group
• Modesty
• Hierarchy
• Harmony
• External control
• Saving face
• Respect for status
• Respect elders
• Time is life

9. Western vs. Non-Western
Values
• Action/ doing
• Systematic
• Tasks
• Informal
• Assertiveness
• Future/ change
• Control
• Specific/ linear
• Verbal
• Being/ acceptance
• Humanistic
• Relationship/ loyalty
• Formal
• Indirectness
• Past/ tradition
• Fate
• Holistic
• Non-verbal

10. Y2K, a successful project
• Each nation and organization set up its
own year 2000 computer project
• Information was widely shared among
technical specialists via the internet
• People recognized all would benefit by
sharing information
• Top management supported the work
• Needed funds were made available

11. Iridium, a failed project
• A satellite telecommunication network
costing $5 billion and involving 6000
engineers and managers in 26 countries
• Sold for $25 million in 2000
• The international structure was almost
impossible to manage – many languages,
cross-cultural differences, different styles
of management and communication

12. Conclusions
• There is an increasing number of
international projects
• Multi-cultural teams are needed
• Cultural differences need to be seen as an
asset, not a liability
• Managers need to be culturally aware and
flexible in their leadership styles