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The
Expatriate Manager in South
Korea,
Cross Cultural Communication
by
Sonya Scholes,
Troy State University 2003
Abstract
The purpose of this paper is
to illustrate the importance
of training and education in
global organizations for expatriate
managers to minimize culture
shock and maximize the manager’s
effectiveness and efficiency
working in a different culture.
Geert Hofstede’s Model
of National Culture will be
used to illustrate the dimensions
of South Korean culture with
suggested implications for
the expatriate manager based
in South Korea. A brief overview
of current practices by four
global organizations is followed
by suggestions for improving
cross cultural training and
education.
***
Globalization is not a new
concept. As far back as the ancient
Egyptian civilization, trading
with foreign nations for either
rare or unavailable goods in
the local environ was an astute
business practice. The time line
has meandered from the Agrarian
to the Industrial and catapulted
into the Information Age where
communication and travel have
facilitated the amount and frequency
of organizations operating and
competing in more than one country.
Global organizations need to
be aware of forces that will
affect businesses abroad e.g.
political, legal, economic and
sociocultural. Organizations
such as ASEM (Asia-Europe Meeting),
WTO (World Trade Organization
), APEC ( Asia-Pacific Economic
Cooperation ) and NAFTA ( North
American Free Trade Agreement)
have been set up to facilitate
and educate about trading globally.
However, when two or more cultures
meet to conduct business each
representative needs to be
well informed about the social
mores, folkways and values
of the
business partner prior to any face-to-face meeting. Cohen (1980. p.95) illustrated
this point in his book, ‘You Can Negotiate Anything” where his
superiors referred to his first international business transaction in Tokyo
as “The first great Japanese victory since Pearl Harbor”. Cohen
had thought that he had been prepared for cultural differences by reading books
on Japanese mentality and psychology. If his company had provided better training
for him on the norms and values of the Japanese then he would not refer to
the incident as a “debacle” and his company would have been more
efficient and effective resulting in the competitive advantage they had originally
envisioned.
South Korea has undergone massive
development in the last 30 years,
leapfrogging the Industrial Age
from a largely agrarian society
to the Information Age. Faced
with such dynamic changes South
Korea has entered the global
business forum with gusto. On
January 1, 1995 it
became a member of the World
Trade Organization and it is
a founder member of the Asia-Pacific
Economic Cooperation. At the
end of 2001, foreign investors
owned 37% of the total market
value of South Korean companies
on the Kospi stock exchange.
Globalization and inter-cultural
exchanges play an important part
in South Korean business practices.
Geert Hofstede, a psychologist,
collected data between 1967 and
1973 within IBM subsidiaries
in 66 countries on cultural differences.
McSweeney (2002)
contended that the figure of 117,000 questionnaires was too low for reliable
findings, however, it is not the purpose of the paper to dispute McSweeney’s
evaluations, but to use Hofstede’s Model of National Culture as a guide
to illustrate the uniqueness of South Korean business and national culture.
Culture is defined by Hofstede
as, “The collective programming
of the mind which distinguishes
the members of one group from
another.” Hofstede’s “mental
programming” is referring to the mores, values and folkways which are
approved by and affect how citizen’s should act in a particular society.
Values, mores and folkways are learnt mostly unconsciously by inhabitants through
socialization. In this way the behaviors and responses within a culture become
predictable. In order for an expatriate to do business successfully he must
be aware of the differences between his own and his foreign partner’s
culture. Hofstede developed a model which initially identified four primary
dimensions to differentiate cultures; after working with Chinese employees
and managers he later added a fifth dimension which was originally termed
Confucianism, and later changed
to Long/Short Term Orientation.
The data Hofstede collected
was gathered over 20 years
ago. Cultures do change and
develop over time e.g. The
reuniting of East and West
Germany after the collapsing
of the Iron Curtain in 1989
was a catalyst of change
for the former communist state
from a value system that emphasized
Collectivism to a higher orientation
towards the Individualism of
Western Germany.
South Korea has developed significantly
in the last 20years, opening
up its doors to such highly
publicized events such as hosting
the Olympic Games and
the Soccer World Cup Finals. These two events alone have raised general awareness
of other cultures and values.
Below is a table to illustrate
Hofstede’s cultural dimension scores for
South
Korea and the United States. It is taken from a table of 58 countries’ findings
as displayed here.
A brief overview of the table indicates that the scores for South Korea and
the United
States stand on opposite sides of the scale, indicating a marked difference
in cultural values. Add to this the differences in language
and alphabet, Koreans use Hangul, a unique writing system used only in Korea,
and the differences are adding up, lending further complications for the expatriate
manager.
| |
PDI |
IDV |
MAS |
UAI |
LTO |
| South
Korea |
60 |
18 |
39 |
85 |
75 |
| United
States |
40 |
91 |
62 |
46 |
29 |
PDI = Power Distance
IDV = Individualism vs. Collectivism
MAS = Masculinity (Assertiveness),
Femininity
(Nurturing)
UAI = Uncertainty Avoidance
LTO = Long Term Orientation
Collectivism
According to Hofstede, South
Korea and the United States
are diametrically opposed
on his individualism and collectivism
scale. Individual freedom
and
self-expression are valued
in the United States. In
the more egalitarian society
individuals
are judged more by their
own achievements, not those
of
the group, social status
and connections.
In stark contrast to the United
States, South Koreans are more
comfortable in groups, a collectivist
society. “Confucianism,
one of the major historical factors
leading East Asian people to
the path of the spiritual world,
contributed enormously to the
development of Korean society
and culture” (Lee, Jeong-Kyu,
2001, para 1, introduction ).
Lee proposes that the strong
group ties are becoming divisive
and also affecting progress within
the higher educational institutions,
and hence the progress of the
nation. The individual’s
desires are subordinated for
the goals of the group. ”Oo-ri-na” the
Korean word for country, actually
translates as “our country”.
The larger the group, the more
that comfort is felt.
The expatriate manager would
work towards his organization’s
goals more effectively if the
organization prepared him by
pointing out some of the implications
in this cultural dimension difference:
1. Typically it is difficult
to speak to the boss because
of the group responsibility
and the person designated as the front person is usually an extension of
the group and cannot act
alone. Being aware of this
may prevent frustrations
from
the expatriate manager. He can take proactive steps towards ensuring that
he deals with the group holding
the desired authority for
his purpose
2. “Songsil” is
a term used to show that all
employees should be willing
to sacrifice personal interest
to
those of the company. Pat Cerra,
Executive Director Supply Chain
and Industrial Operations,
of Bayer Cropscience based
in Seoul,
has found that additional emphasis
must be placed in showing commitment
to the company via extended
presence at the expense of
personal time.
3. According to Kim, (2000
p. 5) “In-group members would
not ignore the suffering of fellow
members. The in-group members
generously overlook the mistakes
of other members.” The
implications for an expatriate
manager are that if the loyalty
and bonding within sub groups
is so immensely powerful then
as an outsider of the sub group
he may be denied knowledge of “mistakes.”
4. Kim goes on to say that
to bond as a group, individuals
will share experiences together,
creating a “virtually unbreakable
bond” for “the rest
of their lives”. An expatriate
manager would need to be aware
that an introduction to possible
business contacts may not be
made on performance based criteria
but social obligation. Alternatively,
to be able to forge the bonds
may be beneficial for the expatriate
manager, and to make a proactive
approach towards this goal
may help achieve the wider
goal of
gaining competitive advantage.
Higher Power Distance
“
The single most important factor
that contributes towards the
patterns of interpersonal relationships
is the Principle of the Five
Human Relationships, which is
attributed to Confucius.” And
that it, “emphasizes hierarchical
order in interpersonal relationships” (Kim,
2000 p). The higher power distance
allows for strict stratifications
in the society. The
differences between the layers
are accepted as the norm, ritual
being a tool for reinforcement,
and inequalities taken for
granted. Implications for the
expatriate manager are:
1. Employees will rely on instructions
from superiors and may not feel
comfortable working autonomously
on projects.
2. Privilege is taken
for granted. When there is
no need for individuals
to justify rank and power through
performance, a possibility opens
up that the person with the privileges
may not necessarily be the best
equipped to perform.
3. Employees
of differing status may feel
uncomfortable when mixing.
When the expatriate manager needs
information from a subordinate,
he may receive the answer that
he wants, but not the de facto
truth.
4. The expatriate manager
may have a meeting with a colleague
of the same caliber, but this
person may not be the best
equipped to fulfill his requests.
5.
Movement
and communication between
the hierarchical levels
is limited and not encouraged.
Promoting bright young individuals
may be problematic.
Long Term Orientation
Hofstede added Long Term Orientation
to his four original cultural
dimensions after conducting research
in China. The teachings of Confucius
had not been relevant until he
visited Asia where the Confucian
doctrine was firmly embedded
in the culture. The short term “make
a quick buck and exit” philosophy
of the United States of America
can create misunderstandings
and bafflement when East meets
West around the
negotiating table and in the
workplace. Cohen, (1980, p. 95/96)
described the massive implications
that the clash of Long
and Short Term orientations had
on the Paris United States/Vietnam
Peace Talks. The US representative,
Averell Harriman “rented
a room on a week to week basis
at the Ritz Hotel at the Place
Vendome in the center of the
city”. The North Vietnamese “eventually
rented a villa on the outside
of Paris on a two and a half
year lease”. The subtle
ploy at the start of the negotiations
unnerved the US, unaccustomed
to such a lengthy process. In
the world of business where time
is money, being prepared for
the difference in the perception
of time is good preparation for
the expatriate manager.
Possible
implications of Long Term
orientation are:
1. All negotiations
will take longer than those
held between
two Short Term Oriented
organizations.
2. Strategies will
reflect long term profits and
growth,
and
that there is general
acceptance that goals will be
achieved
at a much slower rate.
3.
The Long term oriented organization
members
may spend longer on
establishing a relationship
prior to actually
conducting business.
4.
Security of investment has
a higher priority
than making
a short term profit.
Nurturing
Orientation
Kim, (2000 p. 5 )
places South
Korea towards the Nurturing
end of the scale of National
Culture
more than being Assertive
like the United States.
Hofstede categorized cultures
into
those
that value
personal relationships
and quality of life (Nurturing)
and cultures
that place more emphasis
on Achievement Orientation
ie.
value assertiveness,
competition, results
and performance. In his recent
ideas and reflections
Hofstede (February 2003)
talked about the excessive
use of the word “I” in
mainstream America in contrast
to his native Holland, a more
nurturing national culture. “ Stressing
the “I” is encouraged
in mainstream U.S. culture.
Women who are too modest
are sent to assertiveness
training,
and some marketers encourage
selling the brand ‘me’. “ He
states that English is the only
language that he knows that, “writes
the pronoun “I” with
a capital letter”. One
of the issues that Diana Kang
mentioned in her interview concerning
her PR company, Idea Consultations,
was that of the Korean businesses
needing help and direction in
the area of promoting their organizations.
The modesty of the Koreans did
not allow for the trumpet blowing
of self promotion. She went on
to say that the customers abroad
were not impressed by a letter
head, but needed promotional
advertising directed at the local
culture. The implications for
the expatriate manager could
be:
1. In the more Nurturing
Oriented culture,
ultimatums, displays
of frustration and anger would
be frowned on and the concept
of “losing face” would
greatly hamper any progress.
The expatriate manager would
benefit from training in the
art of compromise to settle
disputes and differences.
2. The work ethic
is culturally strong, theory
Y being more applicable.
There would be no place for
using organization time
to conduct
private business.
3. The Korean
business man would
not necessarily be overly
impressed
with an all singing and all
dancing self promotional
speech;
a more
reserved and modest approach
would endear him to the sensibilities
of the Korean host, paving
the way for a good basis
for the
conduct of business.
High Uncertainty Avoidance
Hofstede ranked South Korea quite
highly on his Uncertainty Avoidance
scale of cultural dimensions.
The risk taking factor is low
when there is the possibility
of uncertainty and the outcome
is not predictable or familiar.
It may seem a direct contrast
to the indigenous gambling
ethic, but in these circumstances
the odds are known and the
risk is always calculated.
Within cultures where there
is a high Uncertainty Avoidance
there is a strong reliance
on laws and rules. Criticism
of experts and authorities
is minimal, so the acceptance
of the status quo is embraced.
Job security is a high priority,
and the larger the organization
the more the faith in security.
It is this facet that has undoubtedly
contributed to the Korean form
of organization known as the ”chaebol”.
Examples of chaebol are Hyundai,
Samsung, Daewoo and Lucky Goldstar.
They are super conglomerates
that have government backing
and privileges, employing over
half a million South Koreans
and controlling the jobs of
millions. The expatriate manager
aware of the High Uncertainty
Avoidance may adapt strategy
in the following ways:
1. In order to lower
the uncertainty of
new encounters with
representatives
of different cultures South
Koreans may seem
to be more inquisitive
about personal lives, so sharing
of personal information could
be beneficial.
2. In wanting
to know and exchange
details, the handing over
of business cards has
a strong
importance. At a glance,
the name, position,
and status are clear. The
business card exchange
is almost ceremonial
and has a deep significance;
it would not be a good idea
for the expatriate manager
to crush,
write on or simply forget
to take the card of the
Korean
manager.
3. The expatriate
manager can develop the
feeling of security
for his South Korean partners
by having contacts or a third
party for introductions or to
set up meetings.
4. New ideas
and innovations enthusiastically
received in
High Risk cultures need time
and subtlety to be introduced
into the High Uncertainty Avoidance
culture.
5. The expatriate
manager would need
to employ
a more subtle
approach over a longer time
in order to achieve
his goals. Koreans
have been termed “ subtle
and effective negotiators” (International
Business Resource Connection).
The expatriate employee would
do well to have been trained
by his organization in the
art of subtle negotiation.
Hofstede's’s Model
of National Culture is
undoubtedly
helpful in giving a broad understanding
of general culture in the case
of South Korea for American Expatriates.
An understanding of the results
of Hofstede’s surveys and
the implications in business
practices would further the integration
of the global organization into
the local culture and help towards
gaining a competitive advantage.
In Seoul, South Korea
the Seoul Hilton is
part of the global
organization Hilton Hotels International.
On March 27, 2003 the chain won, “best of the brand” at
the annual Hotel Awards Ceremony. The hotel chain must be producing effective
initiation and education of the different cultures globally to its executive
staff in order to achieve such high standards. The General Managers in the
hotel chain are accustomed to working in and adapting to different cultures,
spending on average three years in a location. The English GM of the Seoul
Hilton inducts his new executive staff personally
as to the values, mores and folkways
of the South Korean culture.
The Hilton has a strong organization
culture, which is part of new
staff training, which entails
training the South Korean staff
employed by the hotel. According
to Hofstede, “Organization
cultures are somewhat manageable
while national cultures are given
facts for management; common
organization cultures across
borders are what holds multinationals
together” (Hofstede, 2003,
p 1). The implication of this
is that the dissemination of
the organization culture is a
priority of the global organization
and that the expatriate managers
learn on-the-job about the local
culture as and when the need
arises.
Bos International is
a company that has
grown globally more
recently than Hilton International.
The Canadian-German founder
of
the South Korean operations
represented his company
as a solo individual
with no prior introductions.
Through informal and formal
contacts
he has been able to establish
a multimillion euro business
in South Korea. Knowledge of
the local culture was learnt
by on-the-job contacts with
the hired South Korean
employees.
Transformational managers are
charismatic leaders. In utilizing
personal qualities and abilities
the manager could enthusiastically
communicate the long term vision
to his employees, in informal
exchange of their expertise
of the local culture
to help his
company achieve a competitive
advantage.
Bayer Cropscience is
a global organization.
At present the
Australian EO has worked
extensively with
other cultures globally,
is accustomed to adapting
to
local cultures, sometimes
at short notice.
Again, personal
education and research has
been the order of the day.
Daimler Chrysler offers
its expatriate managers
a comprehensive
package
managed by the H.R. department.
Employees have access to
the following:
1. Three
week’s language
and culture training at headquarters
prior to taking up a senior
management position
in Seoul, South
Korea;
2. A week’s
preliminary visit for
the whole family to
find accommodation, schools,
familiarization and handover
of the place of work.
3. Dependents
are given a package
containing helpful
information
prior to settling in. This
contains websites,
books on Korean cookery,
novels set in historical and
contemporary Korea, children’s
coloring books on a Korean theme,
videos a and DVD’s on facets of Korean traditions, maps and travel
books on Korea.
4. A local national
on call for the first
month for any help that
may be needed.
Concluding remarks
Geert Hofstede’s
Model of National Culture
still remains a good
general guideline for
understanding a national
culture. Research of
relevant articles
and papers allows for implications to be drawn from Hofstede’s dimensions
for the expatriate manager.
The brief overview suggests
that the successful
managers in the organizations
have good people skills, practice boundary spanning and perform to high levels,
whether the inter-cultural training and education has been available or not.
With increased globalization, organization cultures are traveling across
language and culture boundaries.“Organization cultures are somewhat
manageable while national cultures are a given fact” (Hofstede, 2003).
The building blocks
of competitive advantage
are efficiency, innovation,
quality, responsiveness to customers, flexibility and speed. In global
organizations the
expatriate manager
must be aware of
local culture in
order to gain a
competitive
advantage. Speed can be achieved if the global organization allocates resources
to induct its expatriate managers prior to
leaving for South Korea. When
a manager is accompanied with
the family, the global organization
needs to include them in culture
training to prevent culture shock.
Employees are valuable assets
in every organization. As the
brief overview of current practices
indicates, there are some highly
talented and skilled expatriate
managers in South Korea who are
achieving goals
for their organizations, managers
who value the knowledge of the
local culture and focus energies
and scant leisure time on preparing
themselves for working in the
local culture. The process could
be far more efficient when the
organization’s HR department
allocates resources and time
towards preparing the individuals
prior to arriving in country.
If the organization can train
expatriate managers both formally
and informally it may work
more efficiently and be able to respond
to the local customers needs
more effectively.
Education and training prior
to taking up an expatriate
post would speed up the process. The
dependents of the expatriate
manager need to be part of
the equation. To be prepared for
new different experiences the
dependents need to be well
informed, given support and mental programming
to deal with the unexpected.
The United States military
has a long history and much experience
of posting personnel and dependents
in foreign lands. It has a
sponsor program for new arrivals. The
sponsors have been in the duty
station for a while and take
on the role of mentor prior,
during and after arrival. The
system is ad hoc, as is human
nature, but when performed
effectively is very productive.
In addition to a contact in
post prior to the appointment,
formal language and culture
classes could be made available.
The quality of instruction
depends
on the quality of the teacher ie. a knowledgeable authority on the subject,
with an unbiased, yet positive viewpoint. The knowledgeable authority should
use a variety of methods of instruction and use a variety of media in presentation
of the main teaching points ie. Experiential
formal chalk and talk. Hofstede's’s
Model of National Culture could
be used as a basis for comparison
between home base and expatriate
venue, with its implications
as a major learning objective.
There are many web sites available
on the internet, which the HR
department could research, catalogue
and print
out for the family prior to departure.
The settling in package provided
by the fourth organization mentioned
helps to initiate interest and
develop understanding.
Once in country the organization could outsource an authority on local
culture to be available for advice and further development of intercultural
understanding.
Diana Kang, Managing Director of Idea Consultations, is working to help Korean
organizations prepare for the global market. She talked about the diffidence
and collectivism embedded in her local culture hampering Korean PR and Marketing
globally.
The knowledge acquired by previous post holders held in an information
storage system would benefit newcomers to the expatriate position and
become part of
the organization’s information base in its corporate history.
In learning a foreign language, vocabulary and grammar don’t constitute
an understanding of a nation. Making an effort to understand the underlying
rationale does. When global organizations have to invest resources to initiate,
maintain or develop, both eyes fixed on mathematical equations of profit margins
does not automatically ensure success. Inter-cultural communication is on the
increase, not decrease. Every effort to ensure that there is interpersonal/
cultural understanding will contribute to competitive advantage.
------
More information on Geert Hofstede
and South Korea can be found
at:
Hofstede
- South Korea
 Please
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