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ANGLIA RUSKIN UNIVERSITY
Dissertation Declaration
Title of Award
MSc International Business
____________________________________
Date
25 September 2015
____________________________________
SID Number
1415246
_____________________________________
Name of Supervisor
Dr. Beatriz Acevedo
_____________________________________
Title of Dissertation
Intercultural conflicts within multinational companies based in the United-States between
French expatriates and American workers
_____________________________________
Word Count
14 910
_____________________________________
DECLARATION: I declare that the above work is my own and that the material contained herein
has not been substantially used in any other submission for an academic award.
Signed: Date: 25th
September 2015
II
Abstract
Purpose – The purpose of this dissertation is to know how international businesses in the
United-States can manage efficiently cultural differences with French expatriates in order to
better resolve intercultural conflicts.
Design/methodology/approach – The authors uses two methods in order to compare and
analyse cultural differences. The two methods are Hofstede’s cultural dimensions and
GLOBE Project. Through the two studies, the purpose is to point out solutions to handle these
cultural differences efficiently.
Findings – Results are significant. France and the United-States are two cultures different in
terms of rules, hierarchical power, and relationships. Cultural differences have a real impact
on HR practices and workers. Manage expatriate and adapt HR practices in accordance with
the two cultures are the key to success.
Research limitations – Values gathered from the two studies are statistical data and do not
always reflect reality. Also, outcomes of some research about culture may vary according to
the author because of ethnocentric pattern and provide bias or misinterpretation.
Originality/value – This research contributes to bring solutions to managers and Human
Resources Management about intercultural conflicts and management of French expatriates in
the United-States.
Keywords Culture, Cross-cultural management, Intercultural Conflicts, International Human
Resource Management, Cultural Dimensions, France, The United-States, Expatriates.
Paper type Research paper
III
Table of Contents
I. List of Tables.....................................................................................................Page V
II. List of Figures ...................................................................................................Page VI
III. List of Abbreviations .........................................................................................Page VII
IV. Acknowledgments .............................................................................................Page VIII
1. Introduction ..........................................................................................................Page 1
1.1 Background .......................................................................................................Page 1
1.2 Purpose of the study and Research Questions and Objectives.............................Page 2
1.3 Content..............................................................................................................Page 4
2. Literature Review .................................................................................................Page 5
2.1 Cross-cultural Management ...............................................................................Page 5
2.2 Conflicts............................................................................................................Page 6
2.3 Intercultural Conflicts ........................................................................................Page 7
2.4 International Human Resource Management......................................................Page 8
2.5 Framework for analysis: Hofstede’s Cultural Dimensions ..................................Page 9
2.6 Framework for analysis: GLOBE Project...........................................................Page 9
3. Methodology ........................................................................................................Page 10
3.1 Introduction .......................................................................................................Page 10
3.2 Research Method and Design.............................................................................Page 10
3.3 Data Collection..................................................................................................Page 12
3.4 Research Questions............................................................................................Page 13
3.5 Data Analysis ....................................................................................................Page 14
3.6 Limitations ........................................................................................................Page 14
3.7 Summary ...........................................................................................................Page 15
4. Cross-cultural Management and International Human Resource
Management (IHRM) ...........................................................................................Page 16
4.1 Explanation of Culture, Socialisation and Normative Behaviour ........................Page 16
4.2 Selected Models of Cultural Dimensions............................................................Page 18
4.3 Hofstede’s Cultural Dimensions.........................................................................Page 20
4.4 GLOBE Project .................................................................................................Page 21
4.4.1 Measurements..........................................................................................Page 22
4.4.2 Practices and Values ................................................................................Page 23
4.5 Comparison between GLOBE and Hofstede’s Cultural Dimensions...................Page 24
4.6 International Human Resource Management......................................................Page 25
5. French and American cultures: Presentation and Comparison Between The
Two Cultures........................................................................................................Page 27
IV
5.1 France and the United-States Comparison Through Hofstede’s Cultural
Dimensions........................................................................................................Page 28
5.1.1 Power Distance (PDI) ..............................................................................Page 29
5.1.2 Individualism (IDV) ................................................................................Page 30
5.1.3 Masculinity (MAS)..................................................................................Page 30
5.1.4 Uncertainty Avoidance (UAI)..................................................................Page 31
5.1.5 Long-term Orientation (LTO) ..................................................................Page 31
5.1.6 Indulgence (IND).....................................................................................Page 32
5.2 Comparison Between France and The United-States Through GLOBE
Project ...............................................................................................................Page 33
5.2.1 Assertiveness...........................................................................................Page 34
5.2.2 Future Orientation....................................................................................Page 35
5.2.3 Performance Orientation..........................................................................Page 35
5.2.4 Humane Orientation.................................................................................Page 35
6. Intercultural Conflicts Within American Multinational Companies Between
French and American Workers..............................................................................Page 36
6.1 How Intercultural Conflicts Arise?.....................................................................Page 36
6.2 Types of Intercultural Conflicts..........................................................................Page 39
6.3 Consequences of Intercultural Conflicts.............................................................Page 40
7. Resolution of Intercultural Conflicts within Workgroups: a challenge for
IHRM and workers ...............................................................................................Page 41
7.1 Impact of Cultural Dimensions on Human Resource Management
Practices......................................................................................................................Page 42
7.1.1 Recruitment and selection policies ............................................................Page 43
7.1.2 Training policies .......................................................................................Page 44
7.1.3 Pay and Allowances policies .....................................................................Page 45
7.1.4 Performance Appraisal..............................................................................Page 46
7.2 French Expatriates Adjustment for better cross-cultural adaptation ....................Page 47
7.2.1 Selecting expatriates..................................................................................Page 47
7.2.2 Training expatriates and American workers...............................................Page 48
7.3 Cultural Stepping Stones Model.........................................................................Page 48
7.4 The Different Ways to Resolve intercultural Conflicts in Relation to The
Culture...............................................................................................................Page 50
8. Conclusion............................................................................................................Page 51
9. References............................................................................................................Page 54
V
I. List of Tables
Table 1: Selected models of cultural dimensions.........................................................Page 19
Table 2: The GLOBE Study Cultural Dimensions.......................................................Page 23
Table 3: Correspondence between Hofstede and GLOBE ...........................................Page 24
Table 4: Central tendencies of core cultural dimensions across Anglo and
Latin European regions...............................................................................................Page 27
Table 5: France in comparison with the United-States,
Hofstede’s Cultural Dimensions .................................................................................Page 28
Table 6: Score in values and practices for the GLOBE Study (France and the USA)...Page 33
Table 7: Score in values for the GLOBE Project (France vs. USA) .............................Page 34
VI
II. List of Figures
Figure 1: Level of mental programming......................................................................Page 17
Figure 2: Culture Clusters in the GLOBE Study .........................................................Page 22
Figure 3: Model of IHRM...........................................................................................Page 26
Figure 4: Sources of intercultural conflict ...................................................................Page 37
Figure 5: The Cultural Stepping Stones model............................................................Page 49
VII
III. List of Abbreviations
EI: Emotional Intelligence
GLOBE: Global Leadership and Organizational Behavior Effectiveness
HCN: Host-Country National
HRM: Human Resource Management
IDV: Individualism
IHRM: International Human Resource Management
IND: Indulgence
LTO: Long-term Orientation
MAS: Masculinity
PCN: Parent-Country National
PDI: Power Distance
TCN: Third-Country National
UAI: Uncertainty Avoidance
VIII
IV. Acknowledgements
The author wishes to express his deepest appreciation to all those who provided him the
possibility to complete this dissertation. A special gratitude to his supervisor, Dr. Beatriz
Acevedo, whose contribution in stimulating suggestions and encouragement, helped him to
coordinate his major project especially in writing this dissertation.
Moreover, the author would also like to acknowledge with much appreciation the
crucial role of the staff of Anglia Ruskin University, who gave the permission to use all
required equipment and the necessary material to write the dissertation.
1
1. Introduction
1.1 Background
In this introduction, the author wants to explain why explore cultural differences
between France and the United-States. More and more French workers attempt to take the
plunge and live the “American dream”. Weak dynamism, taxes very high, fear of risk, or
insufficient assistance, France has become a country where entrepreneurial activity is low
(Estay, 2004).
It is also important to underline the current climate. In today’s world, big firms want to
save money by relocating businesses. This is the phenomenon of globalisation. According to
Steger, globalisation is ‘social processes that are changing our current social condition based
on the modern system of independent nation-states’ (Steger, 2005, p.13). In addition,
‘globalization is about the unprecedented compression of time and space as a result of
political, economic, and cultural change, as well as powerful technological innovations’
(Steger, 2005, p.13). Globalisation change our world, and companies have to find solutions to
be the most efficient as possible.
With the process of globalisation the last decades, ‘Organizations in the U.S. are
becoming more culturally diverse. One reason for this is that they are increasingly operating
in a global environment. In view of the changing nature of workforce in organizations,
researchers have argued that multiculturalism offers substantial benefits in terms of
increased creativity, improved decision-making, and broader markets for products and
services’ (Adler, 1983; Cox, 1993).
Construction of nationally diverse workgroups is due sometimes to the search of skilled
employees coming from all around the world. Furthermore, since workgroups are increasingly
operating in multinational contexts (Earley and Mosakowski, 2000; Milliken and Martins,
1996), it is important to understand how national diversity may affect groups and group
outcomes. Research on diversity, in general, has found that diverse groups often prove
ineffective at capitalizing on the potential benefits of their diversity for a variety of reasons
2
such as lack of social integration and high turnover (Jackson et al. , 1991; O’Reilly et al. ,
1989), conflict (Jehn et al. , 1999), competition (Reagans, 2005), and demographic differences
(Alexander et al., 1995). Then, diversity may leads to conflicts. In this case, we talk about
intercultural conflicts.
In other words, the author of this dissertation wants to be focused on conflicts and more
particularly on intercultural conflicts. Conflict has been broadly defined as perceived
interpersonal incompatibilities or discrepant views (Deutsch, 1973). Intercultural conflicts
represent differences in cultural values and beliefs that place people at odds with one another.
(Jonathan H. Turner, 2005, p. 87).
Therefore, in the US, organisations such as multinational companies are becoming more
culturally diverse. It is a stake for the U.S which have to face up to multiculturalism and
diversity. Diversity offers a lot of benefits and can also affect groups and group outcomes.
Multiculturalism and diversity lead sometimes to conflict if we have in the workgroup a poor
cross-cultural adaptation (Jassawalla, Truglia and Garvey, 2004). According to Jitske Kramer
and Karin Brugman (2010), intercultural conflicts arise when we deny to look at prejudices
and judgments about other cultures, and forbid ourselves to look at them. All of these
statements are liable to lead to intercultural conflicts. It is important to bear in mind these
terms to understand how intercultural conflicts could arise.
1.2 Purpose of the study and Research Questions and Objectives
The topic of intercultural conflict has been studied from different disciplines and the
aim of this dissertation is to present an updated literature review about intercultural conflicts
focused on the texts published about American and French workers within multinational
companies based in the United-States. In other words, the interest is to know how
international businesses in the United-States can manage efficiently cultural differences with
French expatriates in order to better resolve intercultural conflicts.
3
The main issue for multinational companies is the need to manage the challenges of
global efficiency and multinational flexibility (Bartlett and Goshal, 1991). Michael Armstrong
defined a multinational company such as ‘an international firm is one in which operations
take place in subsidiaries over-seas, which rely on the business expertise or manufacturing
capacity of the parent company’ (2006).
Nowadays, with the process of globalisation, International Human Resource
Management of multinational companies have to face up to some issues that are the impact of
globalisation, the influence of environmental, cultural differences and the extent to which
HRM policy and practice should vary in different countries, and manage expatriates (Michael
Armstrong, 2012). These problems have to be resolved efficiently. This dissertation will be
useful to give some solutions to resolve these issues that IHRM and managers could
encounter.
Culture and Cross-cultural management are important parts of this dissertation. Cross-
cultural management is important to understand why people from different cultures share
different norms, beliefs or values. It is also important to define the theories and set the context
regarding this dissertation. According to Hofstede, ‘Culture is more often a source of conflict
than of synergy. Cultural differences are a nuisance at best and often a disaster.’ - Dr. Geert
Hofstede
Furthermore, diversity increases and multinational companies have also to face up to
cross-cultural management, and international human resources management in order to
resolve intercultural conflicts.
At this stage, several research questions arise:
- What are the cultural differences between France and the USA?
- How IHRM within multinational companies based in the United-States can deal with
these cultural differences?
- What are the nature of intercultural conflicts and how to resolve them?
4
In order to answer to these questions, the author is going to talk about cross-cultural
management, cultural differences and International Human Resource Management.
1.3 Content
The fourth part is useful to define these two concepts and culture. These concepts allow
us to understand interaction of people from different countries within a workgroup or same
organisation. Cross-cultural management and IHRM are integral parts of multinational
companies because of globalisation and emergence of multiculturalism these last decades
within multinational corporations.
In this part, two models of cultural dimensions are presented: the aim is to compare
cultural differences between two countries. The two models studied are Hofstede’s cultural
dimensions and GLOBE Project. The interest will be to know if these methods can provide
consistent and reliable results.
The author will also present a model of IHRM based on Morgan theories. It is useful to
understand which activities change when HRM goes international. This model will allow the
reader to recognise the main activities of IHRM following the country and the type of
employees.
The fifth part will provide, through Hofstede model and GLOBE Project, a comparison
between the United-States and France in terms of cultural differences. Cultural differences
will be the framework to understand how intercultural conflicts emerge and how to resolve
them efficiently. Cultural differences are a prevalent sources of contention in intercultural
conflict (Ting-Toomey, 2001, p.106).
Then, the author will be able to gather information to answer to the question: what are
the cultural differences between France and the United-States? The next part gives a
definition of intercultural conflicts and explain how they arise? This part will take in
5
consideration the previous chapter in order to emphasise the cultural differences that lead to
intercultural conflicts. However, why intercultural conflicts arise between French and
American workers? Why they act differently? Then, what are the consequences of
intercultural conflicts?
Since cultural differences seem to lead into and feed conflicts, what are the solutions to
allow expatriates (French workers) to handle more efficiently intercultural conflicts? Are
there any solutions to resolve intercultural conflicts? The last part will show different
techniques and models to resolve intercultural conflicts.
Besides, International HRM has to take in consideration the needs of the two cultures in
order to propose solutions to resolve conflicts. In other words they have to adapt their main
areas in function of cultural dimensions/differences in order to manage intercultural conflicts.
2. Literature Review
2.1 Cross-cultural Management
Cross-cultural management is defined by Veronica Velo as following: ‘cross-cultural
analysis helps to understand where the other party is coming from and the frameworks allow
us to formulate hypothesis that should allow us to tolerate, understand and find avenues for
conflict avoidance and resolution. Rather than stereotype…’ (Velo, 2012, p.41). Cross-
cultural management seeks to understand how national culture affect management practices. It
is useful to identify similarities and differences across culture in organisational contexts and
management practices. Cross-cultural management allow companies to increase effectiveness
in global management.
The main element of this dissertation is the word “culture”. All in this paper is about
culture and cultural differences. Several definitions of culture exist, nonetheless the GLOBE
6
researchers defined culture as shared motives, values, beliefs, identities, and interpretations or
meanings of significant events that result from common experiences of members of
collectives that are transmitted across generations (House et al., 2004). However, conflicts do
not always mean negative aspect. Indeed, most of the time, conflicts are inevitable and allow
us to move forward and find solutions.
In this paper, it is question about intercultural conflicts and International Human
Resource Management. The author wants to show the cultural differences between two
countries that are France and the United-States. The aims of this dissertation are to know how
to resolve intercultural conflicts within a workgroup in a multinational company and how
IHRM can deal with these cultural differences between the two countries.
2.2 Conflicts
Several authors suggested that conflict is detrimental to organisational functioning
(Blake and Mouton, 1984; Wall and Nolan, 1986). In 1997, Jehn defined three main types of
conflict: the first is relationship conflict, that it means conflict about interpersonal
incompatibilities among group members. The second type is task conflict; it may develop in
workgroups due to disagreements among group members about the content of the tasks being
performed, including differences in ideas. Process conflict is the third type of conflict. It
involves logistical issues such as the assignments of responsibilities or resources, or the
setting of an agenda (Jehn, 1997).
However, some authors found that conflicts could be beneficial under certain
circumstances (Amason, 1996; Jehn and Bendersky, 2003). Nonetheless, some conflicts could
have positive or negative consequences for different task and group compositions. Therefore,
some conflicts such as relationship conflict are detrimental in multinational teams whereas
other types may be beneficial in a multinational such as task conflicts for example.
7
2.3 Intercultural Conflicts
Now, it is useful to give the definition of an intercultural conflict. In 1992, Donohue and
Kolt defined conflict as: ‘A situation in which independent people express (manifest or latent)
differences in satisfying their individual needs and interests and they experience interference
from each other in accomplishing these goals’ (Donohue and Kolt, 1992). Jonathan H.
Turner defines it as a conflict caused by differences in cultural values and beliefs that place
people at odds with one another (2005, p. 87).
On a micro level, Alexander Grewe defines this conflict as one that occurs when
people's expectations of a certain behaviour coming from their cultural backgrounds are not
met, as others have different cultural backgrounds and different expectations (Grewe, 2005,
p.10). Intercultural conflict is a conflict with in addition to cultural perception about norms,
perceptions and practices (Jassawalla, Truglia and Garvey, 2004).
In other words, it is important to aim at nature and sources of intercultural conflicts.
Edgar H. Schein put emphasis on miscommunication and cultural misunderstandings that it
could originally be the nature of conflicts.
Regarding Edgar H. Schein, at the root of the issue, we are likely to find
communication failures and cultural misunderstandings that prevent the parties from framing
the problem in a common way, and thus make it impossible to deal with the problem
constructively (Schein, 1993). Edgar H. Schein explains intercultural conflicts emerge from
poor cross-cultural adaption and miscommunication.
First, it is important to split this paper into different parts complementary of each other.
It is also important to precise the author wants only study intercultural conflicts between
French and American workers within multinational companies. The differences noticed
between the two cultures will be the framework of this paper. Once, the cultural differences
observed, it will be easier to bring out solutions to resolve intercultural conflicts and to allow
IHRM to deal with these cultural differences.
8
Understand how conflicts arise between French and American workers will be the way
to analyse and provide a better response thanks to some authors who have realised studies
about resolving intercultural conflicts or also the analysis of cultural differences such as Geert
Hofstede (Hofstede, 1980). All the parts present in this dissertation allow the reader to reflect
on issues regarding intercultural conflicts.
Through this dissertation, different concepts are broached in order to understand how
intercultural conflicts arise and how we can resolve them. The author wants to provide several
outcomes with the most impartiality without influence the reader.
Furthermore, increasing of intercultural conflicts and incapacity to resolve them are due
to the lack of knowledge about cultural differences. Indeed, culture impacts relationships and
business operations (Robert Moran et al., 2007). It is useful to explore these quotations in
order to determine the nature and causes of intercultural conflicts.
2.4 International Human Resource Management (IHRM)
Watson gave a definition of Human Resource Management (HRM): ‘HRM is the
managerial utilisation of the efforts, knowledge, capabilities and committed behaviours which
people contribute to an authoritatively co-ordinated human enterprise as a part of an
employment exchange (or more temporary contractual arrangement) to carry out tasks in a
way which enables the enterprise to continue into the future’ (2010).
According to Michael Armstrong, ‘International human resource management is the
process of employing, developing and rewarding people in international or global
organizations. It involves the world-wide management of people, not just the management of
expatriates’ (2006, p.99). Then, IHRM has to insist on that points in order to deal with
cultural differences and intercultural conflicts. In other words, this definition is important to
understand in which points IHRM has to be efficient to anticipate intercultural conflicts
9
The relocation of multinational companies is a great advantage, however, several
problems have surfaced such as cross-cultural management and different human resource
management (HRM) policies and practices.
2.5 Framework for analysis: Hofstede’s Cultural Dimensions
Geert Hofstede who researched how people from different countries and cultures
interact. He based his model on six cultural dimensions. This model describes the effect of a
society’s culture on the value of its members.
After having known of cross-cultural management, assumptions about culture and
cultural dimensions, the author will be able to notice and emphasise cultural differences
between the two countries cited above. In this part, a real work will consist in differentiating
the two cultures through models and theories published by Geert Hofstede such as cultural
dimensions in the book Culture and organizations: software of the mind (Hofstede, 2010).
Another model of cultural dimensions will be tackled in order to be more accurate in terms of
culture differences. GLOBE Project presents some similarities compare to Geert Hofstede but
with variations. Hofstede model will allow the reader to deal with the analysis in depth in
order to point out cultural differences.
2.6 Framework for analysis: GLOBE Project
GLOBE is the acronym for “Global Leadership and Organizational Behavior
Effectiveness”. GLOBE Project has the same purpose than the other method that it means
compare cultures according to culture clusters. Nonetheless, this method include nine cultural
dimensions complementary to the another method.
Like Hofstede’s Cultural Dimensions, this framework will allow the author to point out
cultural differences between French and American workers within the same workgroup.
Since, cultural differences and poor-cross cultural adaptation are at the root of intercultural
conflicts, the author will be able to determine with precision what are the cultural differences
10
between them and bring out outcomes. These results will be a response to the emergence of
intercultural conflicts.
After that, the interest for international businesses located in the United-States will be to
know how they can manage efficiently cultural differences with French expatriates in order to
better resolve intercultural conflicts.
Different solutions can be found to resolve intercultural conflicts. Several authors
propose tools for identifying core approaches for resolving conflict across cultural and ethnic
differences. The last part of the dissertation will propose theories that could be solutions in
resolving conflicts.
3. Methodology
3.1Introduction
In this dissertation, the author wants to point out the cultural differences between France
and the United-States in order to handle intercultural conflicts and emphasise the main areas
of IHRM that have to deal with cultural differences. The methodology part includes a review
of the research method and design. In addition, this part presents the data collection and
analysis and takes in consideration the limitations about this research.
3.2 Research Method and Design
In this dissertation, the author uses two methods to point out cultural differences
between France and the United-States. All these cultural differences will be the framework to
understand and propose solutions to resolve intercultural conflicts. Before that, it will be
useful to compare cultural differences and see where France and the United-States are
different. It is important to insist on these differences to provide better analysis and bring
solutions to workers working together and International Human Resource Management,
11
responsible for integration of expatriates and proper development of HR practices
internationally.
The two methods are Hofstede’s cultural dimensions and GLOBE Project. Hofstede’s
cultural dimensions is based on six cultural dimensions. This model describes the effect of a
society’s culture on the value of its members. The values obtained are related to behaviour.
This model is relevant to point cultural differences between cultures. GLOBE Project has the
same purpose than the other method. Nonetheless, this method include nine cultural
dimensions complementary to the another method. Some cultural dimensions in the two
methods measure the same cultural values (e.g. Power Distance).
The two models, will allow the author to analyse cultures in function of the country
studied. Also, it will be possible to identify the dimensions of national cultures and make a
comparison between French and American cultures. Once this work completed, the interest
will be to understand the way to deal with these cultural differences. International Human
Resource Management will be responsible for dealing with this issue. Also, it will be useful to
establish a link between all these theories and intercultural conflicts at work between French
and American workers. A good interpretation and implementation of cross-cultural
management will enable companies to better comprehend cultural differences and so on.
The next stage will be to underline cultural differences that have to be handled by
IHRM. Many conflicts emerge every day within multinational companies because of cultural
differences and poor cross-cultural adaptation (Jassawalla, Truglia and Garvey, 2004).
Because of this quotation, we can understand conflicts and intercultural conflicts come from a
lack of cultural adaptation and open-mindedness. Different factors contribute to generate
intercultural conflicts. The task of IHRM will be to identify cultural differences following the
different areas of IHRM and be able to adapt to practices in function of cultural dimensions.
12
3.3 Data Collection
Regarding intercultural conflicts, many publications are available. It is a tedious work
for the author to gather and sort out all the data. Furthermore, it is even more difficult to take
in consideration only the data relevant to the study making possible the answers to the
research questions. A real effort has been made by the author in order to be close to the
reality. The author carries with different types of investigation. A large number of authors
deal with intercultural conflicts, cross cultural management and international human resources
management. The objective is to gather data from these books and articles in order to create a
correlation that it means the data are based on statistical technics. This type of investigation
enables the author to measure strength of relationship between variables. However, in this
dissertation, the aim is to compare and confront the results in order to answer efficiently to the
research questions.
The author of this dissertation uses secondary data that provides larger and higher
quality databases. Data have been already collected and recorded by someone else and readily
available from other sources. A large number of data allows the author to assess the quality of
studies and combine the data in an efficient way. Also, secondary data saves lots of time,
money and other resources. All the data are official and come from scholars or academics
papers. It allows the author to sort out and emphasise elements that are relevant.
A normal literature review is a good option to understand cultural issues because several
empirical studies have been published, and there is uncertainty about the results. It is
important to make a link between French and American culture in order to clarify cultural
differences. The literature chosen by the author is in relation with cross-cultural management,
and intercultural conflicts within multinational companies based in the United-States. Identify
the cultural differences will allow the author to understand how intercultural conflicts can
emerge. All the samples of books or articles will come up with these criteria of research.
To complete successfully the analysis, data will be collected from Hofstede’s cultural
dimensions and Globe Project. All data will be detailed and explained in order to answer to
13
the research questions. Given that this study is based on secondary data, data have been
anonymised. Regarding the topic, it is a subject that does not touch directly individual person
but most organisational and human behaviour in general at the scale of companies. All results
gathered will be used for the purpose of research and not to punish or reprimand any persons.
The main interest of this survey is to obtain anonymous and non-personal information to
respond to a well-defined problem.
All the searches will be for the period 1980-2015. As the topic is intercultural conflicts
between French and American workers, the search will be restricted to the English language
research literature. In a previous review, several key words such as “international human
resources management”, “cross-cultural management”, “intercultural conflicts” and “conflicts
resolution” were used very often. Consequently, these key words should be the most sensitive
search strategy for this review. In other words, all these terms will be the frame for the
dissertation and will allow the author to answer efficiently and with precision to the research
questions.
3.4 Research Questions
At this stage, the research questions are:
- What are the cultural differences between France and the USA? This question is useful
to understand how intercultural conflicts arise.
- How workers and International Human Resource Management within the
multinational company can manage intercultural conflicts efficiently, in order to be
productive and use cultural differences as a strength?
- What are the nature of intercultural conflicts and how to resolve them?
The answer to theses research questions will allow the reader to understand and explain
all the steps defining intercultural conflicts since the nature and causes until the resolution of
them.
14
3.5 Data Analysis
Exploiting these data collected from the two models presented above allow the author to
propose improvement in order to manage intercultural conflicts. The cultural differences will
have a considerable impact on IHRM and workers. That is why, IHRM and workers have to
take in consideration these information to be aware about the differences and use them as a
strength. The analysis will be realised in accordance with IHRM and workers. They will have
to recognise cultural differences in order to adapt their behaviours or practices to meet the
requirements of French expatriates and American workers.
In terms of guidelines, the author starts to explain the nature and causes that can lead to
intercultural conflicts such as miscommunication (Schein, 1993). Then, it is useful to talk
about culture difference between the United-States and France in order to compare and
analyse the cultural differences. Establish the cultural differences are easier to better
understand conflicts between American and French workers and resolve them more
efficiently. The last part of the dissertation will be the resolution of intercultural conflicts
proposed by several authors. By comparing the two cultures, the author is able to make a
comparison between the different groups, follow up them and bring out outcomes relevant for
the analysis and findings.
3.6 Limitations
For both studies, the author encountered the same difficulties. By using these methods
to compare and analyse cultural differences, they are subject to limitations. Even if Hofstede’s
work on culture is the most widely cited in existence (Bond, 2002; Hofstede, 1997), this
model and GLOBE Project were the subject of criticisms. Indeed, not everyone in a given
society is programmed in the same way and we can observe differences between individuals.
Hofstede, on the website The Hofstede centre, affirms that individuals could have bigger
differences in one country culture rather than the differences among all country cultures. Also,
“values” are statistical data and cannot describe “reality”. All these statements have to be
relative (the Hofstede centre).
15
Moreover, in general, most researchers judge another culture only by the values and
standards of their own culture (ethnocentric pattern) and they represent a single timeframe.
Eventually, these errors can provide bias, misinterpretation and inaccuracies (Lubrosky 1959,
p.326; Nasif et al. 1991, p.83-84).
It also important to emphasise the question of time. Cultures evolve with the time, and
the culture of a country at a certain time cannot be the same with the result at another time.
Furthermore another problem can be underlined; researchers tend to be focused on their
discipline only and do not take time to explore others disciplines to provide better results
closest to the reality (Nasif et al., 1991, p.83-84).
3.7 Summary
This dissertation is a normal literature review evaluating intercultural conflicts and
cross-cultural management within multinational companies. They are based in the United-
States and intercultural conflicts concern French expatriates and American workers. The aim
is to talk about intercultural conflicts between France and the USA. In general, within
companies, all the employees are confronted to conflicts. How to deal conflicts and manage
efficiently are an important issue for managers. The author of the dissertation wants to be
more focused on intercultural conflicts and conflicts between migrant workers from France
and American workers with an emphasis on cultural differences. Indeed, the author wants to
show the relation between cultural differences and emergence of intercultural conflicts, and
see how IHRM can be prepared to manage cultural differences.
In order to best carry out this study, the author of this paper will attempt to explain from
where conflicts emerge and what causes them. The main issue will be about communication
theories or different ways of working and the different types of conflicts that exist. In
addition, the author proposes several methods of conflict resolution. Various works cited
above in the literature review will provide answers for the manager and wishing to resolve
intercultural conflicts effectively and constructively. International Human Resource
16
Management will be involved in this dissertation. It will be useful to understand how IHRM
can deal with these intercultural conflicts and create a good atmosphere at work favouring
cultural wealth.
4. Cross-cultural management and International
Human Resources Management (IHRM)
4.1 Explanation of culture, socialisation and normative behaviour
First of all, it is useful to define what cross-cultural management is. Nancy J. Adler
defines cross-cultural management as ‘the study of the behaviour of people in organisations
located in cultures and nations around the world. It is essentially focused on description of
organisational behaviour within countries and cultures and also focused on the comparison
of organisational behaviour across countries and cultures. Cross-cultural management also
aims to be emphasised on the interaction of people from different countries working within
the same organisation or the same work group’ (Adler, 1983, p226).
Now, after having defined cross-cultural management Veronica Velo, in her book
Cross-cultural Management, gives a definition of Cross-cultural analysis. Cross-cultural
analysis is ‘used to understand where the other party is coming from and allow us to
formulate hypothesis that should allow us to tolerate, understand and find avenues for conflict
avoidance and resolution. Rather than stereotype’ (Velo, 2012, p.41).
The GLOBE project defines culture as ‘shared motives, values, beliefs, identities, and
interpretations or meanings of significant events that result from common experiences of
collectives and are transmitted across age generations’ (House et al., 2002, p. 5)
17
Geert Hofstede has defined the culture as the “collective programming of the mind”
(Hofstede, 1980, p.16) which distinguishes the members of one group or category of people
from another.
Figure 1: Level of mental programming:
Source: Adapted from Hofstede (2010), and Thomas and Inkson, (2003)
Different levels can be identified in the human mental programming. First of all, we
have the Human Nature that is universal and inherited. In other words, this “biological” stage
means all humans have a universal reaction to biological stimuli, such as fatigue and hunger.
The second level is the culture that is specific to group or category. And finally, we have the
personality that is specific to an individual, inherited and learned. Individual experiences are
unique and learned reactions and therefore differ across a spectrum of responses. So, we can
distinguish three levels in human mental programming.
The figure 1 represents the relationship between universal, cultural, and personal
preferences. Human nature is biological programming, characteristics that are part of human
nature. Personality are individual characteristics. Culture is between these two and the line
that separates them is at best blurred. The most important is to identify what is universal and
what is not. Misunderstandings can be the results of people who thinks values, beliefs or
18
assumptions are universals. That is the reason it is really important to identify cultural
differences in order to bring awareness to non-universal assumptions (Velo, 2010).
4.2 Selected models of cultural dimension
Because of the process of globalisation, researchers suggested we needed some kind of
tools or mechanism in order to compare cultural differences and similarities. These tools are
useful but they can be subjective according to how we analyse the different criteria. Then,
managers have to know which practices or behaviours will create barriers and which will
allow the creation of relationship, even if most of the time experts cannot reach an agreement
about comparing cultural differences (Hall, 1992). It can be useful as a starting point cross-
cultural understanding (Steers, Sanchez-Runde and Nardon, 2010).
Different models have emerged in the 1980’s in order to present differences and
similarities between cultures. Each models offers a different way to understand and measure
culture. Two models presented below show cultural dimensions, such as Power distance,
Individualism, or time perspective and so on. All these points allows us to compare and bring
out cultural differences. These models are useful for cultural analysis.
However, for several authors such as Richard M. Steers, Carlos J. Sanchez-Runde and
Luciara Nardon, it is hard to find the best model which suits for managers because of different
aspects used on these models. It depends also on which criterion we want to be focused. Also,
these models are likely to be focused on comparing central tendencies between cultures and
not enough on comparing the differences between each culture. In other words, the use of
cultural dimensions should only be considered the beginning of a more detailed study (Steers,
Sanchez-Runde and Nardon, 2010).
The table presented below is different models used to compare and analyse cultures. It
is a good instrument for us to analyse in details countries with specifics cultures. These two
models presented below will be the framework of the dissertation. It will allow the author to
point out cultural differences between France and the United-States.
19
Hofstede GLOBE Project
Power Distance: Beliefs about the appropriate
distribution of power in society.
Power Distance: Degree to which people
expect power to be distributed equally.
Uncertainty Avoidance: Extent to which
people feel threatened by uncertain or
unknown situations.
Uncertainty Avoidance: Extent to which
people rely on norms, rules, and procedures
to reduce the unpredictability of future
events.
Individualism-collectivism: Relative
Importance of individual vs. group interests
in society.
Humane orientation: Extent to which people
reward fairness, altruism, and generosity
Masculinity-femininity: Assertiveness vs.
passivity; material possessions vs. quality of
life.
Institutional collectivism: Extent to which
society encourages collective distribution of
resources and collective action.
Time-orientation: Long-term vs. short-term
outlook on work, life, and relationships.
In-group collectivism: Extent to which
individuals express pride, loyalty, and
cohesiveness in their organisations and
families.
Indulgence: Indulgence stands for a society
that allows relatively free gratification of
basic and natural human drives related to
enjoying life and having fun.
Assertiveness: Degree to which people are
assertive, confrontational, and aggressive in
relationships with others.
Gender egalitarianism: Degree to which
gender differences are minimized.
Future orientation: Extent to which people
engage in future-oriented behaviours such as
planning, investing, and delayed gratification.
Performance orientation: Degree to which
high performance is encouraged and
rewarded.
Table 1: Selected models of cultural dimensions
Source: Adapted from House et al., 2004; Hofstede, 2001.
The two models presented above in the table 1 will allow the author to compare French
and American culture in order to bring out similarities and especially cultural differences that
are maybe originally sources of conflicts.
The author will analyse cultural differences through two models presented above:
GLOBE Project and Hofstede. Using the two models will allow us to obtain different
20
outcomes in order to provide to the reader a better analysis based on multiples data. Hofstede
dimension’s is well-known to describe managerial behaviours (Hofstede, 1982). However,
GLOBE studies are more recent (2004) and provide additional cultural attributes (Howell et
al., 2007; Javidan, Dorfamn, de Luque, & House, 2006).
4.3 Hofstede’s Cultural Dimensions
On the website “the Hofstede centre” (geert-hostede.com), this model is defined as
following:
‘The model of national culture consists of six dimensions. The cultural dimensions
represent independent preferences for one state of affairs over another that distinguish
countries (rather than individuals) from each other. The country scores on the dimensions are
relative, as we are all human and simultaneously we are all unique. In other words, culture
can be only used meaningfully by comparison’.
(Hofstede, Hofstede, Minkov, 2010)
The model consists of six dimensions such as:
- Power Distance (PDI): degree of equality or inequality, between people in the
country's society.
- Individualism vs Collectivism (IDV): degree the society reinforces individual or
collective, achievement and interpersonal relationships.
- Masculinity vs Femininity (MAS): degree the society reinforces, or does not reinforce,
the traditional masculine work role model of male achievement, control, and power.
- Uncertainty Avoidance Index (UAI): level of tolerance for uncertainty and ambiguity
within the society.
- Long Term Orientation vs Short Term Normative Orientation (LTO): focuses on the
degree the society embraces, or does not embrace, long-term devotion to traditional,
forward thinking values.
21
- Indulgence vs Restraint (IND): Indulgence stands for a society that allows relatively
free gratification of basic and natural human drives related to enjoying life and having
fun. Restraint stands for a society that suppresses gratification of needs and regulates
it by means of strict social norms.
Sources: McSweeney, 2010; Hofstede, 2001; Hofstede, 2010.
4.4 GLOBE Project
According to Marcus W. Dickson, in his article Research on leadership in a cross-
cultural context (2003), he wrote:
‘Robert J. House is the Principal Investigator of GLOBE (the Global Leadership and
Organizational Behavior Effectiveness Research Project), and along with several co-
Principal Investigators and a multinational Coordinating Team, he leads a group of over 180
researchers from around the world in a study of interacting effects of leadership, societal
culture and organizational culture. Data have been collected from over 60 countries, using
surveys, unobtrusive measures, interviews, media analysis, and archival data (often from the
United Nations)’.
(Dickson, 2003)
The GLOBE researchers used data to put nations into cultural clusters. Countries that
are grouped are based on cultural similarities due to shared geography and climate conditions.
We can distinguish ten cultural clusters. In this dissertation, we will be essentially focused on
two cultural clusters that are Anglo Cultures and Latin Europe in which the USA and France
are part of these respectively. Figure 2 allows us to identify the ten cultural clusters.
Moreover, researchers identified nine cultural dimensions presented in the table 2.
22
Figure 2: Culture Clusters in the GLOBE Study
Source: Adapted from House et al., (2004).
According to Vas Taras, Piers Steel and Bradley L. Kirkman, GLOBE Study is
methodologically similar to other comparison studies, even if this study is unique: it measures
cultural values or “should be”, and cultural practices or “as is” separately and provides two
different sets of cultural indices (Taras, Steel and Kirkman, 2010, p.1331).
4.4.1 Measurements:
In order to measure and compare different countries, a scale was established from 1 to 7
for each nine unique dimensions. Logically, 1 is considered as a lowest score and 7 the
highest score.
23
In the next chapter, all the results regarding France and the United-States will be
studied and analysed so that we see how business values and practices vary across nations and
cultures. In other words, the analysis through the GLOBE Study will allow the reader to better
understand cultural differences between the two countries that can lead to intercultural
conflicts.
4.4.2 Practices and values:
As mentioned above, GLOBE Project measures cultural values and practices. When
researchers decided to use the results, they chose to rely on the values data alone. Indeed,
seven of the nine dimensions presented on the table 2, a negative relation appears between
values items and practices measures (Maseland, & Van Hoorn, 2008, p.4), indicating that
GLOBE elicited marginal preferences rather than values (Maseland & Van Hoorn, 2008;
Hofstede, 2006; Javidan, House, Dorfman, Hanges & Sully de Luque, 2006). In this
dissertation, the author will collect only values data. The interest is to collect the results
highlighted by the researchers.
Table 2: The GLOBE Study Cultural Dimensions; adapted from House et al. (2004)
The interest will be to use the two models to have a good opinion about the French and
American culture. All these models will allow us to compare and identify similarities and
differences between the two cultures. After that, we will try to show the correlation between
24
intercultural conflicts and national diversity or cultural differences (National diversity and
conflict in multinational workgroups: the moderating effect of nationalism, 2006).
4.5 Comparison between GLOBE and Hofstede cultural dimensions
The two models presented above are different but with some similarities. Our interest
is to use the two models in order to be more accurate and provide better outcomes. By
comparing and using these two models, the author tries to adopt a holistic approach to assess
its effects on quality management.
It is important to underline that Hofstede’s dimensions of national culture is the most
used method. However, GLOBE captures more comprehensively and less ambiguously the
elements of national culture (Vecchi and Brennan, 2011). The table 3 presented below shows
the correspondence between Hofstede and GLOBE.
Table 3: Correspondence between Hofstede and GLOBE
Source: Hofstede, 2005; Vecchi and Brennan, 2011
25
4.6 International Human Resource Management
In order to better understand the context in international business, the author defined
cross-cultural management with different models and theories. Now, we want to deal with
International Human Resource Management (IHRM) in depth that it means we try to focus on
aspects of HRM in multinational firms.
First of all, Michael Armstrong defines Human Resource Management: ‘it can be
defined in line with the original concept as a strategic, integrated and coherent approach to the
employment, development and wellbeing of the people working in organisations’. Also,
several activities are included in HRM. These major categories are:
- Selecting and Hiring Employees
- Paperwork and Orientation
- Training and Development
- Compensation (Remunerations and Benefits)
- Performance Appraisals
- Safety and Health
- Managing Legal Issues
(Suttle, 2009)
The author of this dissertation wants to show which activities change when HRM goes
international. A model developed by Morgan is relevant. Morgan presents IHRM on three
dimensions.
26
Figure 3: Model of International Human Resource Management
Source: Adapted from Morgan, 1986.
The first dimension represents the broad human resources activities such as
procurement, allocation and utilisation. The second dimension represents the national or
country categories involved in IHRM activities; the host-country where a subsidiary may be
located, the home-country where the firm is headquartered and ‘other’ countries that may be
the source of labour, finance and other inputs. The third dimension shows the three categories
of employees of an international firm; host-country nationals (HCNs), parent-country
nationals (PCNs) and third-country nationals (TCNs). Still, according to Morgan, IHRM is
defined as the interplay among these three dimensions (1986).
The context of internationalisation of multinational firms and shared cultures within
these companies generate new patterns in whom they have to assume. Multinational
companies staff who move across national boundaries with different roles within the
international firm’s foreign operations. We call these employees “expatriates”: they work and
temporarily reside in a foreign country (Dowling, Festing and Engle, Sr., 2013).
27
5. French and American cultures: presentation
and comparison between the two cultures
In this chapter, the author wants to compare French and American cultures. As the
author said in the chapter 4, the comparison between the two cultures will be made with two
studies such as Hofstede’s cultural dimensions and GLOBE Project. By comparing the two
cultures, it will appear cultural differences on which the author have to emphasise. With the
process of globalisation, we are inclined to be around people from different origins and
experiences.
Therefore, people are increasingly confronted with different ways of thinking, behaving
and feeling. If people cannot deal with this process of the cross-cultural communication, they
will feel insecure and threatened and intercultural conflicts will arise (Kramer & Brugman,
2009, p.1). Furthermore, Stella Ting-Toomey, in her book Managing Intercultural Conflict
effectively, she affirms cultural differences are a prevalent sources of contention in
intercultural conflict (Ting-Toomey, 2001, p.106).
In this dissertation, the author wants to be focused on Anglo Cultures and Latin Europe
Cultures. The next table shows the central tendencies of core cultural dimensions across the
two regions studied.
Table 4: Central tendencies of core cultural dimensions across Anglo and Latin European
regions.
Source: Steers, Sanchez-Runde, Nardon, 2010
Adapted from Ronen and Shenkar, 1985, and House et al., 2004.
28
Although central tendencies of core cultural dimensions are useful to obtain general
cultural trends across countries and regions, nonetheless, they are not a substitute for more
systematic in depth analysis such as Hofstede’s cultural dimensions or GLOBE Project. This
part will be useful to analyse French and American cultures and then make a detailed
comparison between them.
The two models presented in the first chapter will be studied separately (Hofstede and
GLOBE). After that, the author will identify cultural differences pointed out by the two
studies.
5.1 France and the USA comparison through Hofstede’s Cultural
Dimensions
First of all, it is necessary to proceed to do a national comparison by the two countries
concerned. A score is given for each country as shown in the table 5. For each part described
in the fourth chapter regarding the six cultural dimensions, a score is given. All outcomes
regarding this study will be a framework for the author and will allow us to highlight cultural
differences.
Table 5: France in comparison with the United-States, Hofstede’s Cultural Dimensions
Source: Hofstede, Hofstede, Minkov, 2010
29
Now, the results are going to be analysed and interpreted by means of two books:
Cultures and Organizations: Software of the Mind (Hofstede, G, Hofstede, G.J., Minkov,
2010), and Culture’s Consequences: Comparing Values, Behaviors, Institutions, and
Organizations across Nations (Geert Hofstede, 2001). These books are the framework of the
Hofstede’s cultural dimensions theory.
The model consists of six dimensions. By comparing the six dimensions also presented
in the Table 2, it will be easier to bring out cultural differences in the first place. The six
cultural dimensions are going to be analysed one by one.
5.1.1 Power Distance (PDI)
According to Hofstede’s study, France is a high power distance culture; whereas the
United-States are a medium/low power distance culture. In France, high power distance
culture indicates that inequalities of power and wealth have been allowed to grow within the
society. The French society is more likely to follow a caste system. This system does not
allow citizens significant upward. Furthermore, it means that people accepts a hierarchical
order. A high PDI implies a wide discrepancy in equality between the authorities and the
people. Within the company, it will be in the form of very formal interactions with managers.
The power is centralised and power is a scarce resource. In a country with high power
distance such as France, people feels that their lives are controlled by their authorities. They
avoid conflicts with their authorities.
Regarding the United-States, they seek equalisation of power, pursues inequalities. With
a low power distance, the USA de-emphasise the differences between citizen’s power and
wealth. In other words, equality and opportunity for everyone is emphasised. In this country,
minimal power differences can be noticed. Power can be achieved through work and the
hierarchy or line management at work is not rigid. A low PDI implies the authorities and the
people are being treated equally in the system (Hofstede, 1980). People also believes they
have control over their own lives and have more courage to disagree with the authorities
(Chan & Cheung 2008).
30
5.1.2 Individualism (IDV)
The concept of individualism and collectivism provides one means of distinguishing
broad differences in cultural values (Hofstede, 1980). France and the United-States are
individualist societies. In France, a high score on power distance and a high score on
individualism is unusual. Subordinates normally pay formal respect and show deference to
their boss. Then, they do the contrary behind their back, because they think they know better
the solution. A miscommunication between employers and employees is real. Also, people
needs to make a distinction between work and private life. Employees feel the pressure more
than in the US, because of their emotional dependence on what the boss says and does. With a
high score on power distance and collectivism, dependence is present in comparison with the
US.
Regarding the US, hierarchy is established for convenience within American
organisations. Furthermore, superiors are accessible and managers rely on employees and
work groups for their expertise and advice. Information is shared frequently and both
managers and employees expect to be consulted. However, communication is informal, direct
and participative to a degree. Sometimes, Americans do business with people they do not
know well. At work, employees are expected to be self-reliant and display initiative. We can
notice the contrary in France. Regarding human resources management practices such as
recruitment, promotion and decisions, all are based on merit.
5.1.3 Masculinity (MAS)
A low score (Feminine) means that the society takes care of others and quality of life
before taking care of itself. In this type of society such as in France, quality of life is the sign
of success. The welfare system, 35 hour working per week, five weeks of holidays per year;
all these elements try to underline the quality of life.
However, a high score (Masculine) indicates that the country is driven by competition,
achievement and success, based on merit and recognition. This value system starts early in the
31
people’s life and continue throughout their life. In the US, the score is high just like
individualism. Americans are individualist and masculine, that it means the success is
personal and individual. In other words, they are independent and responsible for their
success. Noticeable in the US, a “can-do” mentality is present which creates dynamism, and
let make Americans believe that it is always possible to do things in a better way. Also,
American mentality is work and it is essential. Most of the time, Americans “live to work”, so
it is easier to get promoted and obtain monetary rewards in order to attain a higher status.
Again, according to Americans, conflicts can bring out the best of people. The best will be the
winner; it is always a competition and people have to do their best if they want to be
considered.
5.1.4 Uncertainty Avoidance (UAI)
86 for France is a very high score, that it means the country has a low tolerance for
uncertainty and ambiguity. Within companies, structure and planning are required. Before
negotiations or meetings, they want to receive all the information available. Therefore, French
evolve in a stable environment and develop complex technologies. However, French adopt
strict codes of behaviour. France is a rule-oriented society that institutes laws, rules,
regulations, and controls in order to reduce the amount of uncertainty.
Regarding the US, with a low score of 46, that it means the country has more tolerance
for a variety of opinions. Americans are more tolerant of ideas or opinions from anyone and
allow the freedom of expression. Consequently, Americans do not require a lot of rules, more
readily accepts change, takes more and greater risks and also they are less emotionally
expressive than higher-scoring cultures such as France.
5.1.5 Long-term Orientation (LTO)
France, with a score of 63, means the society is focused on long-term orientation
whereas the US are short-term orientation society with a low-score. France prescribes to the
values of long-term commitments and respect for tradition. Long-term rewards are expected
32
as a result of today’s hard work. Nonetheless, business could take longer to develop in France,
especially for little companies.
In the United-States, with a low-score, changes can happen more quickly as long-term
traditions and commitments do not become impediments to change. Furthermore, American
businesses measure their performance on a short-term basis (quarterly results). This culture’s
characteristic push people to strive for quick results within the work place. Then, they hope an
immediate gratification.
5.1.6 Indulgence (IND)
People try to control their desires and impulses. Indulgence is the dimension that allows
us to know if people have a weak control (Indulgence) or a strong control of themselves
(Restraint). Countries, and consequently cultures can be describes as Indulgent or Restrained.
Society with a low-score such as France has a tendency to cynicism and pessimism.
France can be seen as a Restraint society; restrained countries do not allow time for leisure
and they control the gratification of their desires. In other hand, with a high Uncertainty
Avoidance, French are less relaxed and enjoy life less often than is commonly assumed. One
the other hand, with a high power distance, French feel also their actions are restrained by
social norms (caste) and think that indulging themselves are somewhat wrong.
Concerning the United-States, with a high-score of 68, the country is seen as an
indulgent society. It is true that Americans like enjoy their time and they are seen as
optimistic people.
33
5.2 Comparison between France and the United-States through GLOBE
Project
Now, after the author analysed the cultural dimensions regarding France and the USA
through Hofstede model, it is relevant to go into cross-cultural analysis in depth in order to get
more details in terms of cultural differences and particularities regarding the countries.
As we saw in the fourth part, table 3, Hofstede model and GLOBE Project have
similarities. After analysed the results from the GLOBE study, available in the appendices, it
is relevant to exploit the data not used for the Hofstede’s cultural dimensions that are Humane
Orientation, Future Orientation and Performance Orientation. The author will also be focused
on Assertiveness.
Before starting the analysis of the results regarding the GLOBE Study, the table 4 and 5
allow the reader to see the outcomes concerning the cultural dimensions between the two
countries. However, it is important to underline only Values results are taken in consideration
(cf. 4.4.2 Practices and Values).
France United-States
Dimensions Practices Values Practices Values
Uncertainty Avoidance* 4.66 4.65 4.15 3.99
Power Distance* 5.68 2.96 4.92 2.88
Institutional Collectivism* 4.20 5.27 4.21 4.20
In-Group Collectivism* 4.66 5.88 4.22 5.79
Gender Egalitarianism* 3.81 4.71 3.36 5.03
Assertiveness 4.44 3.57 4.50 4.36
Future Orientation 3.74 5.35 4.13 5.34
Performance Orientation 4.43 6.10 4.45 6.14
Humane Orientation 3.60 5.91 4.18 5.51
Table 6: Score in values and practices for the GLOBE Study (France and the USA)
Source: Adapted from House et al., 2004
Response bias corrected scores for societal cultural scales (House et al., 2004)
34
Higher scores indicate higher levels of this dimension.
*Similarities between Hofstede and GLOBE (cf. Table 3).
Table 7: Score in values for the GLOBE Project (France vs. USA)
Source: House et al., 2004.
All the interpretations and comments about the results regarding Assertiveness, Future
Orientation, Performance Orientation, and Humane Orientation come from the following
authors and websites: House et al., 2007; Grove, C.N. 2005; Virkus, V. 2009.
5.2.1 Assertiveness
According to House et al. (2004) ‘Assertiveness is the degree to which individuals are
assertive, confrontational, and aggressive in their relationships with others’ (House et al.,
2004, p. 30). France has a lower score compare to the United-States that it means: French
people values cooperation and warm relationships, they communicate indirectly, try to be in
harmony with the environment and expect subordinates to be loyal. Also, they build trust on
basis of predictability (cf. uncertainty avoidance).
4.65
2.96
5.27
5.88
4.71
3.57
5.35
6.1
5.91
3.99
2.88
4.2
5.79
5.03
4.36
5.34
6.14
5.51
2
3
4
5
6
7
GLOBE Project France/ USA
France Values United-States Values
35
With a higher score regarding the United-States, the Americans value success,
competition and progress (cf. can-do mentality), communicate directly, try to take control of
the environment and expect subordinates to take initiative. However, they build trust on basis
of calculation.
5.2.2 Future Orientation
According to House et al., ‘Future orientation is the degree to which a collectivity
encourages and rewards future-oriented behaviors such as planning and delaying gratification’
(House et al, 2004, p. 282). GLOBE Future Orientation values reflect societal aspirations and
preferences for planning (Venaik, Zhu, Brewer, 2013). With a high score for the two countries
(5.35 and 5.34), they are supposed to save now for the future and emphasise working for long-
term success. Moreover, organisations tend to be more flexible and adaptive.
5.2.3 Performance Orientation
It refers to the extent to which an organization or a society encourages and rewards
group members for performance, improvement and excellence (House et al., 2002). The
United-States get a score slightly higher. Nonetheless for both, it is a very high score that it
means for them; they grant importance to training, development, competitiveness and
materialism. This part does not allow the author to bring out cultural differences because
results are the same for both countries.
5.2.4 Humane Orientation
Humane orientation is defined as ‘the degree to which an organization or society
encourages and rewards individuals for being fair, altruistic, friendly, generous, caring, and
kind to others’ (House et al, 2004, p.569). France has the highest score among the 26
countries studied; we already know France is a collectivist country rather than individualist.
Then, the interest of others is really important, and people are interested to be a part of a
group or an affiliation. The USA have a lower score that it means one’s own self-interest is
36
more important than others. However, people are motivated for power and particularly
material possessions.
Until now, the author wanted to emphasise cultural difference through two models:
Hofstede and GLOBE Study. Now, in this dissertation it is possible to underline cultural
differences between France and the United-States. In the next chapter, the interest will be to
show how intercultural conflicts arise and what are the sources of intercultural conflicts?
After having highlighted the cultural differences, it will be easier to understand how
intercultural conflicts emerge in the workplace in American multinational companies and
have to face up to expatriates influx and especially French expatriates.
6. Intercultural conflicts within American
multinational companies between French and
American workers
In this chapter, the author is going to define how intercultural conflicts arise and what
are the sources of cross-cultural conflicts? Furthermore, the author will underline the cultural
differences that lead to conflicts between American and French workers.
6.1 How Intercultural Conflicts arise?
Interpersonal conflicts emerge because of different factors, each referring to Culture-
related differences such as norms, perceptions and practices, and more particularly related to
time, urgency and implementation (Jassawalla, Truglia and Garvey, 2004).
Moreover, between French and American culture, three categories can foster cultural
differences that are: tastes and preferences, ethical imperatives vs. legal requirement (legal
37
system) and beliefs and values. A difference of point of view (different cultures) in these three
categories can lead directly to conflict (Steers, Sanchez-Runde, & Nardon, 2010). Figure 4
shows the sources of intercultural conflict between two different cultures (Culture A & B).
Figure 4: Sources of intercultural conflict.
Source: Steers, Sanchez-Runde, & Nardon, 2010
With the process of globalisation and melting pot, employees are confronted with
different ways of thinking, behaving and feeling. If unfortunately we cannot deal with these
processes, employees will feel unsecure, threatened and put the blame for this on the others.
One of the most important difficulties for expatriates is to be unable to deal with cross-
cultural adaption issues related to cultural differences; for instance language, living
conditions, uprooting spouses and families, and working harmoniously with co-workers with
different cultural backgrounds (Yavas and Bodur, 1999). So, the most important information,
is issues of interpersonal conflicts arising from cultural differences. However, conflicts also
arise because of the cultural differences related to the sense of urgency around producing
results (Jassawalla, Truglia and Garvey, 2004).
For instance, American workers get used to work toward project deadlines without
paying attention to the hours they devote (“live to work”). Also, they are willing to work
extra-hours to complete projects and expect that others are doing the same. In Europe and in
France, mentality about work is really different; in a feminine country, working over-time is
frowned upon in France. Regarding American workers, they do not only work over-time; in
addition the American norm about the length of time to take new ideas is faster rather than in
Europe. Jassawalla, Truglia and Garvey (2004), talk about the American norm of “just doing
38
it” in comparison with European countries where employees take their time to take decisions.
All can lead to frustration and in other words intercultural conflicts.
Intercultural conflicts start when protagonists identify them with one group (in-group),
which opposes another group (out-group). Each group try to preserve, protect and strengthen
itself in order to stand up for the interests of the group.
Some authors such as Stephan and Stephan (1985) recognise that exposure to out-
groups predicates the activation of negative stereotypes and biases against out-group
members, leading to intergroup tensions and conflicts. Given that, organisation like
multinational companies become more culturally diverse, intercultural conflicts occur more
easily between employees from different cultural backgrounds (Jehn & Mannix, 2001; Jehn,
Northcraft, & Neale, 1999).
Several authors have underlined nationality have a distinct and often a more significant
influence than other demographic characteristics. Then, national diversity is an important
factor that will have a major impact as a predictor of conflict specifically in multinational
workgroups (Miles, 1964; Tsui et al., 1992).
As individuals attempt to communicate and work together, they may react negatively to
the cultural practices of others (Gudykunst et al., 1996; Pearson & Stephan, 1998; Ting-
Toomey et al., 2000). Furthermore, national diversity lead to intercultural and relationship
conflicts for three reasons: decreased relationship quality, decreased group integration and
increased categorisation processes (Ayub and Jehn, 2006). Besides, the quality of
interpersonal relationships decreases whereas diversity increases in groups (Riordan & Shore,
1997). Moreover, lower quality work relationship is perceptible in comparison to less racially
diverse organisations. In this way, in 1997, Rivenburgh emphasises different nationalities in a
workgroup can lead to intergroup discrimination just by the awareness that other nationalities
are present. It is question that nationalities are often stereotypical, through media portrayals
(Rivenburgh, 1997).
39
National diversity can bring diversity of ideas to the group because of cultural
differences and different national backgrounds bring in diverse sets of knowledge, expertise
and wisdom (Ayub and Jehn, 2006). Additionally, cross-national diversity increases creativity
and synergy (Adler, 1997). Employees from different cultures and national backgrounds will
bring together a variety of task-relevant viewpoints coming from their national traditions and
different educational experiences. Nonetheless, at the same time, Jehn et al. (1999) pointed
out that differences in past work experiences were positively related to task conflict in
workgroups, so national diversity can lead to task conflict.
In nationally diverse workgroups, members of the workgroups have to deal and
delineate tasks processes among dissimilar group members from different national
backgrounds. Diverse groups are inclined to meet process difficulties than homogeneous
groups (Williams and O’Reilly, 1998). Process conflict arises for three distinct reasons:
misunderstandings due to language barrier and communication issues, (self) exclusion from
procedural decision making, and misunderstandings due to stereotypical biases (Ayub and
Jehn, 2006).
6.2 Types of intercultural conflicts
Hellriegel, Slocum, and Woodman (2001) have identified three types of conflict that
may arise when individuals involved come from different cultures. Goal conflict is a situation
in which preferred outcomes appear to be incompatible. Cognitive conflict arises when ideas
or thoughts are perceived as incompatible. Finally, affective conflict is when feeling or
emotions are incompatible.
40
6.3 Consequences of Intercultural Conflicts
Several authors underlined that intercultural conflicts could cause decreasing of
motivation, work performance and open-mindedness. In 2003, Frost analysed toxic work
environment and suggested that insensitive attitudes and behaviours of employees exert an
insidious effect on people around them, decreasing dramatically their work performance
(Frost, 2003).
Besides, when employees from different cultures are unable to overcome their cultural
differences and manage their disagreements, ineffective communication slows down creative
and work performance (Giambatista & Bhappu, 2010; Hackman, 1990; O’Reilly et al., 1998;
Swann et al., 2003).
Dialogue is a necessary condition for effective group action. Also, dialogue is at the root
of all effective group action. Through process of dialogue, it is more evident to know if the
communication is valid or not. If not, dialogue will show us the differences between people
such as different mental models or using words differently. All these elements will lead
people to divergences and sometimes conflicts. In terms of cross-cultural management,
multinationals will need to develop shared mental models through dialogue. It is true that
national culture differs from another and organisations have to be able to create common
practices in order to generate a genuine subculture particular to the company and increase
work performance (Schein, 2003).
When individuals are witnesses of intercultural disharmony among people in their
immediate social environment or workgroup for example, they think two cultures are
incompatible because implicit beliefs about ideas and values increase. In other words, cultural
incompatibility thought by individuals because of implicit beliefs influence individual’s
subsequent performance in creativity tasks (Decker, 1980; Gioia and Manz, 1985). Moreover,
as soon as people convince themselves that ideas from different cultures are incompatible,
they become narrow-minded and less able to access knowledge from another culture and draw
connections among them to develop new ones (Roy Y. J. Chua, 2013).
41
Regarding workgroups, some organisations are trying to create the most effective
workgroups. In order to do this, multinationals gather individuals with relevant skills and
capacities from different countries and cultures. When multinational companies seek skilled
employees, it may results often in the construction of nationally diverse workgroups. It is also
true that workgroups with individuals from different cultures increase permanently in
multinational contexts (Earley and Mosakowski, 2000; Milliken and Martins, 1996). The
author will show in the next chapter that relevant skills and capacities are not enough
sufficient to create the most effective workgroup. Others key factors are essential to develop
effective workgroups.
After having underlined nature, types of cross-cultural conflicts and their consequences,
the next and final chapter will deal with the resolution of intercultural conflicts within
multinational companies. The interest will be to propose diverse solutions brought by several
authors. It will be about models, methods or discussions regarding resolution of intercultural
conflicts. It will be a real challenge for IHRM and French expatriates who will have to deal
with cultural differences. The next chapter will be useful to show the impact of cultural
dimensions and intercultural conflicts on International Human Resource Management, French
expatriates and American workers.
7. Resolution of intercultural conflicts within
workgroups: a challenge for IHRM and
workers
In this last chapter, the author wants to answer to the research question: how to resolve
intercultural conflicts? Different methods and models saw the light of day since the last
decades. It is relevant to present and analyse these theoretical frameworks and researches
dealing with this topic. The author will also present the impact of cultural dimensions on
Human Resource Management. Some activities of HRM are likely to change depending on
the country studied.
42
Regarding conflict resolution, it is defined as “the process used by parties in conflict to
reach a settlement” (Sweeney & Carruthers, 1996, p. 328).
7.1 Impact of Cultural Dimensions on Human Resource Management
Practices
According to Michael Armstrong, ‘International human resource management is the
process of employing, developing and rewarding people in international or global
organizations. It involves the world-wide management of people, not just the management of
expatriates’ (Michael Armstrong, 2006, p.99).
As cited above, IHRM is focused on employment (recruitment and selection policies),
developing people (training policies), and rewarding people (compensation and benefits). The
analysis will be based only on these three areas of HRM. Added to this, the author wants to
include performance management (or performance appraisal). Also, assimilation and review
policies have to be taken in consideration. As cited above, IHRM involves the world-wide
management of people; assimilation policies provide for the adaptation of expatriates to
overseas posts and their progress in them to be monitored and reviewed (Michael Armstrong,
2012).
As the author said in the introduction (cf. 1.2 Purpose of the study…), some issues
affect the practice of international as HRM such as the impact of globalisation, the influence
of environmental and cultural differences, the extent to which HRM policy and practice
should vary in different countries, and the approaches used to employ and manage expatriates
(Michael Armstrong, 2012).
Because of differences in policies, cultures and laws, HR practices have to be adjusted
following the country studied. Then, it is possible that cultural differences could impact on
how HR roles are implemented across borders.
43
IHRM have to deal with these cultural differences and then intercultural conflicts, since
the author showed a correlation between cultural differences and conflicts (poor cross-cultural
adaptation, national diversity). The author wants to know how IHRM can be prepared, in
order to handle and resolve these intercultural conflicts.
7.1.1 Recruitment and selection policies
First of all, recruitment and selection strategy differ across cultures. According to
Odenwald selection and training combined can help expatriates with cross-cultural adaptation
(1993). Cultures with high performance orientation or universalism such as the United-states
regarding recruitment and selection are based on “hard criteria” such as competencies, job-
related knowledge, technical and cognitive skills. However, “soft criteria” are used in cultures
that are high on femininity such as France. Soft criteria are essentially social and interpersonal
skills, social class affiliation and age (Aycan, 2005).
Cultures with high score on uncertainty avoidance such as France are more likely to
prefer internal recruitment rather than external recruitment (Aycan, 2005).
With a high score on Institutional Collectivism for France, the author considers this
country as collectivist in some part. Collectivist cultures seem to prefer the use of internal
labour markets in order to promote loyalty to the firm (Budhwar and Khatri, 2001). Therefore,
it is often difficult for externally recruited candidates to enter the strong social networks
within the organisation (Björkman and Lu, 1999).
Countries with a high score on uncertainty avoidance prefer informal recruitment
channels and methods (France). However, countries that are high on performance orientation
opt for formal recruitment and channels methods, structured and widespread. Moreover,
selection methods are standardised and job specific whereas in cultures with high femininity
such as France, they are not standardised and rely on face-to face interactions (Aycan, 2005).
It is important to underline that France has a high score on performance orientation, but a very
44
high score on uncertainty avoidance and femininity. Then, France could use the three methods
described.
Concerning written ability and personality tests, French in comparison to American
perceived written ability tests less impersonal. Personality tests are more offensive for French
and violate their privacy (Steiner and Gilliland, 1996). France, high on uncertainty avoidance
would tend to use more types of selection tests, and conduct more interviews and monitor
their processes in more detail, in order to collect objective data for making decisions (Ryan et
al., 1999).
Short-term oriented cultures such as the United-States, concerning the retention of staff
will prefer to be focused on transactional employment relationships and be more responsive in
nature. In the contrary, in France, retention practices involve a more preventive character and
centre on relational employment needs (Reiche, 2008).
7.1.2 Training policies
According to Aycan, training and development activities are the key to organisational
survival and growth in today’s global competition (2005).
In the United-States (low power distance cultures), training needs are usually
determined jointly by the employee and the superior. In high power distance cultures such as
France, training needs of the work group are determined by the paternalistic manager in an
authoritarian or consultative way (Wilkins, 2001).
In low power distance and high performance oriented, such as the United-States,
training and development needs are determined based on performance evaluation outcomes.
In France, with a high power distance and as a paternalistic culture, selection for training is
not based primarily on performance, but on group membership (Aycan, 2005).
45
In France, with a high uncertainty avoidance and high power distance, employees are
more receptive to one-way lecturing rather than participative discussions (Parnell and Hatem,
1999). The instructor is perceived as the “authority” who must provide answers and
guidelines (Laurent, 1986; Thornhill, 1993). To instil trust and ensure a high level of
credibility in the instructor, organisations in this type of culture prefer high-level, or senior
managers as instructors rather than hiring external consultants or trainers (Wright, Szeto and
Cheng, 2002).
7.1.3 Pay and allowances policies
In cultures with high power distance such as France, performance-reward contingency is
lower (Aycan et al., 2000). Also, reward allocation is based on seniority or being on good
terms with the management and not based on performance (Hui and Luk, 1997; Leung, 1997;
Smith and Bond, 1993). Seniority-based compensation system is preferred in societies with
high level of uncertainty avoidance, because such practice emphasises predictability and
certainty. However performance and skill based compensation system are preferred in
societies with low uncertainty avoidance such as the United-States (Schuler and Rogovsky,
1998).
To summarise these statements, in the United-States, rewards are contingent upon
performance. Nevertheless, in France, performance reward contingency is low. It should be
noted that power distance or uncertainty avoidance is positively correlated with seniority and
good interpersonal relationships with higher management and represents important criteria for
compensation (Aycan, 2005).
Focus on individual performance and pay based on performance are used in the U.S
(individualistic cultures) (Schuler and Rogovsky, 1998). In France, more collectivist than the
U.S, group-based rewards are more frequent (Gluskinos, 1988). Regarding the compensation,
differentials between individuals are very high in individualistic and performance-oriented
cultures such as the United-States (Easterby-Smith et al., 1995; Huo and Von Glinow, 1995).
46
7.1.4 Performance Appraisal
In the United-States and all individualistic cultures, performance orientation leads to an
evaluation system based on employee productivity, timeliness, quality of output and job-
specific knowledge and proficiency. Consequently, individual and work outcomes are more
important rather than the group and work process in this type of societies. Harris and Moran
suggested that performance criteria are more objective, quantifiable and observable (1996).
Nonetheless, in collectivist cultures or with a high institutional collectivism, loyalty to
the in-group is valued more than productivity. According to Kovach and Vallance, high-
performing employees who distinguish themselves could disturb group harmony and invoke
jealousy (1995, 1999). Results are important but social and relational criteria carry a lot of
weight compared to evaluating employees. Still in France, performance appraisal is a top-
down unilateral process, where superiors evaluate the performance of subordinates. Very
popular in the United-States, the 360-degree performance appraisal method does not work in
high power distance cultures (France) (Davis, 1998). 360 degree feedback performance
appraisal process to evaluate the individual managers. This method provides a feedback on a
manager’s performance collected from colleagues, manager’s direct supervisor, customers,
vendors and a self-assessment (Gluck, 2000). In order to be efficient, this method requires low
power distance (Fletcher and Perry, 2001). If French expatriates are subject to 360-degree
evaluation, it may disturb group harmony due to constant monitoring of the behaviour of
one’s colleagues. Therefore, self-appraisal is not appropriated in the French culture. The
emphasis on the “self” and personal achievements is disturbing in countries where humility in
self-presentation is the norm (Wiersma and van der Berg, 1999).
In the United-States, performance evaluation is conducted once or twice a year, and
standard forms of performance evaluation are used to encourage objective assessment of
employees by multiple sources. Otherwise, in high power distance, performance evaluation is
conducted in an unsystematic way.
47
7.2 French expatriates adjustment for better cross-cultural adaptation
Expatriates are people working overseas on a long or short-term contracts who can be
nationals of the parent company or “third country nationals” (TCNs) – nationals of countries
other than the parent company who work abroad in subsidiaries of that company (Armstrong,
2012). The management of expatriates is a major factor determining success or failure in an
international business.
In our case, the author wants to insist on the process of selection and training of French
expatriates. In other words, the author wants to know how IHRM can select expatriates and
how they can train them in order to facilitate the integration abroad and more particularly in
the United-States.
7.2.1 Selecting expatriates
It is really important for IHRM to select expatriates who present qualities such as
openness and sociability (Caligiuri, 2000), self-confidence and willingness to change (Forster,
2000) and patience and tolerance (Yavas and Bodur, 1999). However, today, firms use
technical competence as the sole selection criterion but technical skills are insufficient in
helping expatriates with adjustment issues (Sanchez et al., 2000). Also, according to Avan
Jassawalla Ciara Truglia and Jennifer Garvey (2004), it is important to take in consideration
emotional intelligence (EI) and not only IQ. Managing cross-cultural conflicts depends
essentially on personality traits (Caligiuri, 2000). In order to improve cross-cultural
adaptation, several skills and abilities have to be developed. These skills and abilities are
integral parts of emotional intelligence, and result from components of EI (Jassawalla, Truglia
and Garvey, 2004). The components are the following:
- Self-awareness: ability to recognise one’s emotions, moods, and reactions.
- Self-regulation: ability to control or express emotions, without any judgment.
- Self-motivation: resilience and ability to persevere despite obstacles.
48
- Empathy: ability to place oneself in another’s shoes and understand differences in
values and perspectives.
- Social skill: ability to build relationships by seeking commonalities and friendships
regardless of differences.
7.2.2 Training expatriates and American workers
In addition to language training for improved communication in the United-States
(Andreason, 2003) and cultural training for intelligent responsiveness in different
psychosocial and cultural background (Tung, 1982; Yavas and Bodur, 1999), pre-departure
training is necessary. Language and cultural training are useful to better know the country
where expatriates are going. It is important to know more about the cultural differences and
particularities about the country, here is the United-States. However, some personal
traits/skills are essentials to train and develop before they leave France. This pre-departure
training implicates skills such as active listening, ethical reasoning, and conflict management
(Jassawalla, Truglia and Garvey, 2004).
Training expatriates is fundamental but training American workers is also important,
because they are supposed to interact and collaborates with expatriates. Interact and
collaborate with expatriates require training. In other words, Vance and Pederon (1993),
affirm training as an ethical imperative for global firms because training key host nationals
can reduce stress and increase the expatriate’s effectiveness. Also, training American workers
could reduce discriminatory treatment and avoid rejection of the host culture (Sanchez et al.,
2000).
7.3 Cultural stepping stones model
Before giving solutions to resolve intercultural conflicts, it is important to show the path
who lead to resolution of them. We already know in intercultural conflicts situations, the
other’s “being different” confronts us with our own habits, norms and values.
Miscommunication, misunderstandings, power struggle are involved into cultural dynamics.
49
The situation during conflicts can be very complex and hard to analyse. To apprehend these
processes and so manage efficiently intercultural conflicts, Jitske Kramer came up with The
Cultural Stepping Stones model presented below in figure 5.
This model represents three phases of an intercultural interaction process. However,
understanding of this model will allow victims of intercultural conflicts to react and handle
more efficiently the different processes.
Figure 5: The Cultural Stepping Stones model
Source: Kramer and Brugman, 2010
The first and second phase are at the heart of intercultural conflict. Indeed, the first
phase is the meeting between two cultural strangers, in which they are confronted by different
behaviours and thoughts that lead sometimes to cross-cultural conflicts (cf. 6.1. How
intercultural conflicts arise?) This phase is about “opening up” and employees have to face up
to differences, allow misunderstandings and conflicts to move forward in the process.
Recognise and accept differences, be neutral regarding judgments and feelings and adopt a
positive attitude.
Regarding the second phase, people from the workgroup confronted to different culture
have to be open-minded and curious. They start to explore the new culture from different
perspectives (own culture, other’s culture and mutual interaction). Through this process, we
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
Major Project - 1415246 Intercultural conflicts
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Major Project - 1415246 Intercultural conflicts

  • 1. ANGLIA RUSKIN UNIVERSITY Dissertation Declaration Title of Award MSc International Business ____________________________________ Date 25 September 2015 ____________________________________ SID Number 1415246 _____________________________________ Name of Supervisor Dr. Beatriz Acevedo _____________________________________ Title of Dissertation Intercultural conflicts within multinational companies based in the United-States between French expatriates and American workers _____________________________________ Word Count 14 910 _____________________________________ DECLARATION: I declare that the above work is my own and that the material contained herein has not been substantially used in any other submission for an academic award. Signed: Date: 25th September 2015
  • 2. II Abstract Purpose – The purpose of this dissertation is to know how international businesses in the United-States can manage efficiently cultural differences with French expatriates in order to better resolve intercultural conflicts. Design/methodology/approach – The authors uses two methods in order to compare and analyse cultural differences. The two methods are Hofstede’s cultural dimensions and GLOBE Project. Through the two studies, the purpose is to point out solutions to handle these cultural differences efficiently. Findings – Results are significant. France and the United-States are two cultures different in terms of rules, hierarchical power, and relationships. Cultural differences have a real impact on HR practices and workers. Manage expatriate and adapt HR practices in accordance with the two cultures are the key to success. Research limitations – Values gathered from the two studies are statistical data and do not always reflect reality. Also, outcomes of some research about culture may vary according to the author because of ethnocentric pattern and provide bias or misinterpretation. Originality/value – This research contributes to bring solutions to managers and Human Resources Management about intercultural conflicts and management of French expatriates in the United-States. Keywords Culture, Cross-cultural management, Intercultural Conflicts, International Human Resource Management, Cultural Dimensions, France, The United-States, Expatriates. Paper type Research paper
  • 3. III Table of Contents I. List of Tables.....................................................................................................Page V II. List of Figures ...................................................................................................Page VI III. List of Abbreviations .........................................................................................Page VII IV. Acknowledgments .............................................................................................Page VIII 1. Introduction ..........................................................................................................Page 1 1.1 Background .......................................................................................................Page 1 1.2 Purpose of the study and Research Questions and Objectives.............................Page 2 1.3 Content..............................................................................................................Page 4 2. Literature Review .................................................................................................Page 5 2.1 Cross-cultural Management ...............................................................................Page 5 2.2 Conflicts............................................................................................................Page 6 2.3 Intercultural Conflicts ........................................................................................Page 7 2.4 International Human Resource Management......................................................Page 8 2.5 Framework for analysis: Hofstede’s Cultural Dimensions ..................................Page 9 2.6 Framework for analysis: GLOBE Project...........................................................Page 9 3. Methodology ........................................................................................................Page 10 3.1 Introduction .......................................................................................................Page 10 3.2 Research Method and Design.............................................................................Page 10 3.3 Data Collection..................................................................................................Page 12 3.4 Research Questions............................................................................................Page 13 3.5 Data Analysis ....................................................................................................Page 14 3.6 Limitations ........................................................................................................Page 14 3.7 Summary ...........................................................................................................Page 15 4. Cross-cultural Management and International Human Resource Management (IHRM) ...........................................................................................Page 16 4.1 Explanation of Culture, Socialisation and Normative Behaviour ........................Page 16 4.2 Selected Models of Cultural Dimensions............................................................Page 18 4.3 Hofstede’s Cultural Dimensions.........................................................................Page 20 4.4 GLOBE Project .................................................................................................Page 21 4.4.1 Measurements..........................................................................................Page 22 4.4.2 Practices and Values ................................................................................Page 23 4.5 Comparison between GLOBE and Hofstede’s Cultural Dimensions...................Page 24 4.6 International Human Resource Management......................................................Page 25 5. French and American cultures: Presentation and Comparison Between The Two Cultures........................................................................................................Page 27
  • 4. IV 5.1 France and the United-States Comparison Through Hofstede’s Cultural Dimensions........................................................................................................Page 28 5.1.1 Power Distance (PDI) ..............................................................................Page 29 5.1.2 Individualism (IDV) ................................................................................Page 30 5.1.3 Masculinity (MAS)..................................................................................Page 30 5.1.4 Uncertainty Avoidance (UAI)..................................................................Page 31 5.1.5 Long-term Orientation (LTO) ..................................................................Page 31 5.1.6 Indulgence (IND).....................................................................................Page 32 5.2 Comparison Between France and The United-States Through GLOBE Project ...............................................................................................................Page 33 5.2.1 Assertiveness...........................................................................................Page 34 5.2.2 Future Orientation....................................................................................Page 35 5.2.3 Performance Orientation..........................................................................Page 35 5.2.4 Humane Orientation.................................................................................Page 35 6. Intercultural Conflicts Within American Multinational Companies Between French and American Workers..............................................................................Page 36 6.1 How Intercultural Conflicts Arise?.....................................................................Page 36 6.2 Types of Intercultural Conflicts..........................................................................Page 39 6.3 Consequences of Intercultural Conflicts.............................................................Page 40 7. Resolution of Intercultural Conflicts within Workgroups: a challenge for IHRM and workers ...............................................................................................Page 41 7.1 Impact of Cultural Dimensions on Human Resource Management Practices......................................................................................................................Page 42 7.1.1 Recruitment and selection policies ............................................................Page 43 7.1.2 Training policies .......................................................................................Page 44 7.1.3 Pay and Allowances policies .....................................................................Page 45 7.1.4 Performance Appraisal..............................................................................Page 46 7.2 French Expatriates Adjustment for better cross-cultural adaptation ....................Page 47 7.2.1 Selecting expatriates..................................................................................Page 47 7.2.2 Training expatriates and American workers...............................................Page 48 7.3 Cultural Stepping Stones Model.........................................................................Page 48 7.4 The Different Ways to Resolve intercultural Conflicts in Relation to The Culture...............................................................................................................Page 50 8. Conclusion............................................................................................................Page 51 9. References............................................................................................................Page 54
  • 5. V I. List of Tables Table 1: Selected models of cultural dimensions.........................................................Page 19 Table 2: The GLOBE Study Cultural Dimensions.......................................................Page 23 Table 3: Correspondence between Hofstede and GLOBE ...........................................Page 24 Table 4: Central tendencies of core cultural dimensions across Anglo and Latin European regions...............................................................................................Page 27 Table 5: France in comparison with the United-States, Hofstede’s Cultural Dimensions .................................................................................Page 28 Table 6: Score in values and practices for the GLOBE Study (France and the USA)...Page 33 Table 7: Score in values for the GLOBE Project (France vs. USA) .............................Page 34
  • 6. VI II. List of Figures Figure 1: Level of mental programming......................................................................Page 17 Figure 2: Culture Clusters in the GLOBE Study .........................................................Page 22 Figure 3: Model of IHRM...........................................................................................Page 26 Figure 4: Sources of intercultural conflict ...................................................................Page 37 Figure 5: The Cultural Stepping Stones model............................................................Page 49
  • 7. VII III. List of Abbreviations EI: Emotional Intelligence GLOBE: Global Leadership and Organizational Behavior Effectiveness HCN: Host-Country National HRM: Human Resource Management IDV: Individualism IHRM: International Human Resource Management IND: Indulgence LTO: Long-term Orientation MAS: Masculinity PCN: Parent-Country National PDI: Power Distance TCN: Third-Country National UAI: Uncertainty Avoidance
  • 8. VIII IV. Acknowledgements The author wishes to express his deepest appreciation to all those who provided him the possibility to complete this dissertation. A special gratitude to his supervisor, Dr. Beatriz Acevedo, whose contribution in stimulating suggestions and encouragement, helped him to coordinate his major project especially in writing this dissertation. Moreover, the author would also like to acknowledge with much appreciation the crucial role of the staff of Anglia Ruskin University, who gave the permission to use all required equipment and the necessary material to write the dissertation.
  • 9. 1 1. Introduction 1.1 Background In this introduction, the author wants to explain why explore cultural differences between France and the United-States. More and more French workers attempt to take the plunge and live the “American dream”. Weak dynamism, taxes very high, fear of risk, or insufficient assistance, France has become a country where entrepreneurial activity is low (Estay, 2004). It is also important to underline the current climate. In today’s world, big firms want to save money by relocating businesses. This is the phenomenon of globalisation. According to Steger, globalisation is ‘social processes that are changing our current social condition based on the modern system of independent nation-states’ (Steger, 2005, p.13). In addition, ‘globalization is about the unprecedented compression of time and space as a result of political, economic, and cultural change, as well as powerful technological innovations’ (Steger, 2005, p.13). Globalisation change our world, and companies have to find solutions to be the most efficient as possible. With the process of globalisation the last decades, ‘Organizations in the U.S. are becoming more culturally diverse. One reason for this is that they are increasingly operating in a global environment. In view of the changing nature of workforce in organizations, researchers have argued that multiculturalism offers substantial benefits in terms of increased creativity, improved decision-making, and broader markets for products and services’ (Adler, 1983; Cox, 1993). Construction of nationally diverse workgroups is due sometimes to the search of skilled employees coming from all around the world. Furthermore, since workgroups are increasingly operating in multinational contexts (Earley and Mosakowski, 2000; Milliken and Martins, 1996), it is important to understand how national diversity may affect groups and group outcomes. Research on diversity, in general, has found that diverse groups often prove ineffective at capitalizing on the potential benefits of their diversity for a variety of reasons
  • 10. 2 such as lack of social integration and high turnover (Jackson et al. , 1991; O’Reilly et al. , 1989), conflict (Jehn et al. , 1999), competition (Reagans, 2005), and demographic differences (Alexander et al., 1995). Then, diversity may leads to conflicts. In this case, we talk about intercultural conflicts. In other words, the author of this dissertation wants to be focused on conflicts and more particularly on intercultural conflicts. Conflict has been broadly defined as perceived interpersonal incompatibilities or discrepant views (Deutsch, 1973). Intercultural conflicts represent differences in cultural values and beliefs that place people at odds with one another. (Jonathan H. Turner, 2005, p. 87). Therefore, in the US, organisations such as multinational companies are becoming more culturally diverse. It is a stake for the U.S which have to face up to multiculturalism and diversity. Diversity offers a lot of benefits and can also affect groups and group outcomes. Multiculturalism and diversity lead sometimes to conflict if we have in the workgroup a poor cross-cultural adaptation (Jassawalla, Truglia and Garvey, 2004). According to Jitske Kramer and Karin Brugman (2010), intercultural conflicts arise when we deny to look at prejudices and judgments about other cultures, and forbid ourselves to look at them. All of these statements are liable to lead to intercultural conflicts. It is important to bear in mind these terms to understand how intercultural conflicts could arise. 1.2 Purpose of the study and Research Questions and Objectives The topic of intercultural conflict has been studied from different disciplines and the aim of this dissertation is to present an updated literature review about intercultural conflicts focused on the texts published about American and French workers within multinational companies based in the United-States. In other words, the interest is to know how international businesses in the United-States can manage efficiently cultural differences with French expatriates in order to better resolve intercultural conflicts.
  • 11. 3 The main issue for multinational companies is the need to manage the challenges of global efficiency and multinational flexibility (Bartlett and Goshal, 1991). Michael Armstrong defined a multinational company such as ‘an international firm is one in which operations take place in subsidiaries over-seas, which rely on the business expertise or manufacturing capacity of the parent company’ (2006). Nowadays, with the process of globalisation, International Human Resource Management of multinational companies have to face up to some issues that are the impact of globalisation, the influence of environmental, cultural differences and the extent to which HRM policy and practice should vary in different countries, and manage expatriates (Michael Armstrong, 2012). These problems have to be resolved efficiently. This dissertation will be useful to give some solutions to resolve these issues that IHRM and managers could encounter. Culture and Cross-cultural management are important parts of this dissertation. Cross- cultural management is important to understand why people from different cultures share different norms, beliefs or values. It is also important to define the theories and set the context regarding this dissertation. According to Hofstede, ‘Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.’ - Dr. Geert Hofstede Furthermore, diversity increases and multinational companies have also to face up to cross-cultural management, and international human resources management in order to resolve intercultural conflicts. At this stage, several research questions arise: - What are the cultural differences between France and the USA? - How IHRM within multinational companies based in the United-States can deal with these cultural differences? - What are the nature of intercultural conflicts and how to resolve them?
  • 12. 4 In order to answer to these questions, the author is going to talk about cross-cultural management, cultural differences and International Human Resource Management. 1.3 Content The fourth part is useful to define these two concepts and culture. These concepts allow us to understand interaction of people from different countries within a workgroup or same organisation. Cross-cultural management and IHRM are integral parts of multinational companies because of globalisation and emergence of multiculturalism these last decades within multinational corporations. In this part, two models of cultural dimensions are presented: the aim is to compare cultural differences between two countries. The two models studied are Hofstede’s cultural dimensions and GLOBE Project. The interest will be to know if these methods can provide consistent and reliable results. The author will also present a model of IHRM based on Morgan theories. It is useful to understand which activities change when HRM goes international. This model will allow the reader to recognise the main activities of IHRM following the country and the type of employees. The fifth part will provide, through Hofstede model and GLOBE Project, a comparison between the United-States and France in terms of cultural differences. Cultural differences will be the framework to understand how intercultural conflicts emerge and how to resolve them efficiently. Cultural differences are a prevalent sources of contention in intercultural conflict (Ting-Toomey, 2001, p.106). Then, the author will be able to gather information to answer to the question: what are the cultural differences between France and the United-States? The next part gives a definition of intercultural conflicts and explain how they arise? This part will take in
  • 13. 5 consideration the previous chapter in order to emphasise the cultural differences that lead to intercultural conflicts. However, why intercultural conflicts arise between French and American workers? Why they act differently? Then, what are the consequences of intercultural conflicts? Since cultural differences seem to lead into and feed conflicts, what are the solutions to allow expatriates (French workers) to handle more efficiently intercultural conflicts? Are there any solutions to resolve intercultural conflicts? The last part will show different techniques and models to resolve intercultural conflicts. Besides, International HRM has to take in consideration the needs of the two cultures in order to propose solutions to resolve conflicts. In other words they have to adapt their main areas in function of cultural dimensions/differences in order to manage intercultural conflicts. 2. Literature Review 2.1 Cross-cultural Management Cross-cultural management is defined by Veronica Velo as following: ‘cross-cultural analysis helps to understand where the other party is coming from and the frameworks allow us to formulate hypothesis that should allow us to tolerate, understand and find avenues for conflict avoidance and resolution. Rather than stereotype…’ (Velo, 2012, p.41). Cross- cultural management seeks to understand how national culture affect management practices. It is useful to identify similarities and differences across culture in organisational contexts and management practices. Cross-cultural management allow companies to increase effectiveness in global management. The main element of this dissertation is the word “culture”. All in this paper is about culture and cultural differences. Several definitions of culture exist, nonetheless the GLOBE
  • 14. 6 researchers defined culture as shared motives, values, beliefs, identities, and interpretations or meanings of significant events that result from common experiences of members of collectives that are transmitted across generations (House et al., 2004). However, conflicts do not always mean negative aspect. Indeed, most of the time, conflicts are inevitable and allow us to move forward and find solutions. In this paper, it is question about intercultural conflicts and International Human Resource Management. The author wants to show the cultural differences between two countries that are France and the United-States. The aims of this dissertation are to know how to resolve intercultural conflicts within a workgroup in a multinational company and how IHRM can deal with these cultural differences between the two countries. 2.2 Conflicts Several authors suggested that conflict is detrimental to organisational functioning (Blake and Mouton, 1984; Wall and Nolan, 1986). In 1997, Jehn defined three main types of conflict: the first is relationship conflict, that it means conflict about interpersonal incompatibilities among group members. The second type is task conflict; it may develop in workgroups due to disagreements among group members about the content of the tasks being performed, including differences in ideas. Process conflict is the third type of conflict. It involves logistical issues such as the assignments of responsibilities or resources, or the setting of an agenda (Jehn, 1997). However, some authors found that conflicts could be beneficial under certain circumstances (Amason, 1996; Jehn and Bendersky, 2003). Nonetheless, some conflicts could have positive or negative consequences for different task and group compositions. Therefore, some conflicts such as relationship conflict are detrimental in multinational teams whereas other types may be beneficial in a multinational such as task conflicts for example.
  • 15. 7 2.3 Intercultural Conflicts Now, it is useful to give the definition of an intercultural conflict. In 1992, Donohue and Kolt defined conflict as: ‘A situation in which independent people express (manifest or latent) differences in satisfying their individual needs and interests and they experience interference from each other in accomplishing these goals’ (Donohue and Kolt, 1992). Jonathan H. Turner defines it as a conflict caused by differences in cultural values and beliefs that place people at odds with one another (2005, p. 87). On a micro level, Alexander Grewe defines this conflict as one that occurs when people's expectations of a certain behaviour coming from their cultural backgrounds are not met, as others have different cultural backgrounds and different expectations (Grewe, 2005, p.10). Intercultural conflict is a conflict with in addition to cultural perception about norms, perceptions and practices (Jassawalla, Truglia and Garvey, 2004). In other words, it is important to aim at nature and sources of intercultural conflicts. Edgar H. Schein put emphasis on miscommunication and cultural misunderstandings that it could originally be the nature of conflicts. Regarding Edgar H. Schein, at the root of the issue, we are likely to find communication failures and cultural misunderstandings that prevent the parties from framing the problem in a common way, and thus make it impossible to deal with the problem constructively (Schein, 1993). Edgar H. Schein explains intercultural conflicts emerge from poor cross-cultural adaption and miscommunication. First, it is important to split this paper into different parts complementary of each other. It is also important to precise the author wants only study intercultural conflicts between French and American workers within multinational companies. The differences noticed between the two cultures will be the framework of this paper. Once, the cultural differences observed, it will be easier to bring out solutions to resolve intercultural conflicts and to allow IHRM to deal with these cultural differences.
  • 16. 8 Understand how conflicts arise between French and American workers will be the way to analyse and provide a better response thanks to some authors who have realised studies about resolving intercultural conflicts or also the analysis of cultural differences such as Geert Hofstede (Hofstede, 1980). All the parts present in this dissertation allow the reader to reflect on issues regarding intercultural conflicts. Through this dissertation, different concepts are broached in order to understand how intercultural conflicts arise and how we can resolve them. The author wants to provide several outcomes with the most impartiality without influence the reader. Furthermore, increasing of intercultural conflicts and incapacity to resolve them are due to the lack of knowledge about cultural differences. Indeed, culture impacts relationships and business operations (Robert Moran et al., 2007). It is useful to explore these quotations in order to determine the nature and causes of intercultural conflicts. 2.4 International Human Resource Management (IHRM) Watson gave a definition of Human Resource Management (HRM): ‘HRM is the managerial utilisation of the efforts, knowledge, capabilities and committed behaviours which people contribute to an authoritatively co-ordinated human enterprise as a part of an employment exchange (or more temporary contractual arrangement) to carry out tasks in a way which enables the enterprise to continue into the future’ (2010). According to Michael Armstrong, ‘International human resource management is the process of employing, developing and rewarding people in international or global organizations. It involves the world-wide management of people, not just the management of expatriates’ (2006, p.99). Then, IHRM has to insist on that points in order to deal with cultural differences and intercultural conflicts. In other words, this definition is important to understand in which points IHRM has to be efficient to anticipate intercultural conflicts
  • 17. 9 The relocation of multinational companies is a great advantage, however, several problems have surfaced such as cross-cultural management and different human resource management (HRM) policies and practices. 2.5 Framework for analysis: Hofstede’s Cultural Dimensions Geert Hofstede who researched how people from different countries and cultures interact. He based his model on six cultural dimensions. This model describes the effect of a society’s culture on the value of its members. After having known of cross-cultural management, assumptions about culture and cultural dimensions, the author will be able to notice and emphasise cultural differences between the two countries cited above. In this part, a real work will consist in differentiating the two cultures through models and theories published by Geert Hofstede such as cultural dimensions in the book Culture and organizations: software of the mind (Hofstede, 2010). Another model of cultural dimensions will be tackled in order to be more accurate in terms of culture differences. GLOBE Project presents some similarities compare to Geert Hofstede but with variations. Hofstede model will allow the reader to deal with the analysis in depth in order to point out cultural differences. 2.6 Framework for analysis: GLOBE Project GLOBE is the acronym for “Global Leadership and Organizational Behavior Effectiveness”. GLOBE Project has the same purpose than the other method that it means compare cultures according to culture clusters. Nonetheless, this method include nine cultural dimensions complementary to the another method. Like Hofstede’s Cultural Dimensions, this framework will allow the author to point out cultural differences between French and American workers within the same workgroup. Since, cultural differences and poor-cross cultural adaptation are at the root of intercultural conflicts, the author will be able to determine with precision what are the cultural differences
  • 18. 10 between them and bring out outcomes. These results will be a response to the emergence of intercultural conflicts. After that, the interest for international businesses located in the United-States will be to know how they can manage efficiently cultural differences with French expatriates in order to better resolve intercultural conflicts. Different solutions can be found to resolve intercultural conflicts. Several authors propose tools for identifying core approaches for resolving conflict across cultural and ethnic differences. The last part of the dissertation will propose theories that could be solutions in resolving conflicts. 3. Methodology 3.1Introduction In this dissertation, the author wants to point out the cultural differences between France and the United-States in order to handle intercultural conflicts and emphasise the main areas of IHRM that have to deal with cultural differences. The methodology part includes a review of the research method and design. In addition, this part presents the data collection and analysis and takes in consideration the limitations about this research. 3.2 Research Method and Design In this dissertation, the author uses two methods to point out cultural differences between France and the United-States. All these cultural differences will be the framework to understand and propose solutions to resolve intercultural conflicts. Before that, it will be useful to compare cultural differences and see where France and the United-States are different. It is important to insist on these differences to provide better analysis and bring solutions to workers working together and International Human Resource Management,
  • 19. 11 responsible for integration of expatriates and proper development of HR practices internationally. The two methods are Hofstede’s cultural dimensions and GLOBE Project. Hofstede’s cultural dimensions is based on six cultural dimensions. This model describes the effect of a society’s culture on the value of its members. The values obtained are related to behaviour. This model is relevant to point cultural differences between cultures. GLOBE Project has the same purpose than the other method. Nonetheless, this method include nine cultural dimensions complementary to the another method. Some cultural dimensions in the two methods measure the same cultural values (e.g. Power Distance). The two models, will allow the author to analyse cultures in function of the country studied. Also, it will be possible to identify the dimensions of national cultures and make a comparison between French and American cultures. Once this work completed, the interest will be to understand the way to deal with these cultural differences. International Human Resource Management will be responsible for dealing with this issue. Also, it will be useful to establish a link between all these theories and intercultural conflicts at work between French and American workers. A good interpretation and implementation of cross-cultural management will enable companies to better comprehend cultural differences and so on. The next stage will be to underline cultural differences that have to be handled by IHRM. Many conflicts emerge every day within multinational companies because of cultural differences and poor cross-cultural adaptation (Jassawalla, Truglia and Garvey, 2004). Because of this quotation, we can understand conflicts and intercultural conflicts come from a lack of cultural adaptation and open-mindedness. Different factors contribute to generate intercultural conflicts. The task of IHRM will be to identify cultural differences following the different areas of IHRM and be able to adapt to practices in function of cultural dimensions.
  • 20. 12 3.3 Data Collection Regarding intercultural conflicts, many publications are available. It is a tedious work for the author to gather and sort out all the data. Furthermore, it is even more difficult to take in consideration only the data relevant to the study making possible the answers to the research questions. A real effort has been made by the author in order to be close to the reality. The author carries with different types of investigation. A large number of authors deal with intercultural conflicts, cross cultural management and international human resources management. The objective is to gather data from these books and articles in order to create a correlation that it means the data are based on statistical technics. This type of investigation enables the author to measure strength of relationship between variables. However, in this dissertation, the aim is to compare and confront the results in order to answer efficiently to the research questions. The author of this dissertation uses secondary data that provides larger and higher quality databases. Data have been already collected and recorded by someone else and readily available from other sources. A large number of data allows the author to assess the quality of studies and combine the data in an efficient way. Also, secondary data saves lots of time, money and other resources. All the data are official and come from scholars or academics papers. It allows the author to sort out and emphasise elements that are relevant. A normal literature review is a good option to understand cultural issues because several empirical studies have been published, and there is uncertainty about the results. It is important to make a link between French and American culture in order to clarify cultural differences. The literature chosen by the author is in relation with cross-cultural management, and intercultural conflicts within multinational companies based in the United-States. Identify the cultural differences will allow the author to understand how intercultural conflicts can emerge. All the samples of books or articles will come up with these criteria of research. To complete successfully the analysis, data will be collected from Hofstede’s cultural dimensions and Globe Project. All data will be detailed and explained in order to answer to
  • 21. 13 the research questions. Given that this study is based on secondary data, data have been anonymised. Regarding the topic, it is a subject that does not touch directly individual person but most organisational and human behaviour in general at the scale of companies. All results gathered will be used for the purpose of research and not to punish or reprimand any persons. The main interest of this survey is to obtain anonymous and non-personal information to respond to a well-defined problem. All the searches will be for the period 1980-2015. As the topic is intercultural conflicts between French and American workers, the search will be restricted to the English language research literature. In a previous review, several key words such as “international human resources management”, “cross-cultural management”, “intercultural conflicts” and “conflicts resolution” were used very often. Consequently, these key words should be the most sensitive search strategy for this review. In other words, all these terms will be the frame for the dissertation and will allow the author to answer efficiently and with precision to the research questions. 3.4 Research Questions At this stage, the research questions are: - What are the cultural differences between France and the USA? This question is useful to understand how intercultural conflicts arise. - How workers and International Human Resource Management within the multinational company can manage intercultural conflicts efficiently, in order to be productive and use cultural differences as a strength? - What are the nature of intercultural conflicts and how to resolve them? The answer to theses research questions will allow the reader to understand and explain all the steps defining intercultural conflicts since the nature and causes until the resolution of them.
  • 22. 14 3.5 Data Analysis Exploiting these data collected from the two models presented above allow the author to propose improvement in order to manage intercultural conflicts. The cultural differences will have a considerable impact on IHRM and workers. That is why, IHRM and workers have to take in consideration these information to be aware about the differences and use them as a strength. The analysis will be realised in accordance with IHRM and workers. They will have to recognise cultural differences in order to adapt their behaviours or practices to meet the requirements of French expatriates and American workers. In terms of guidelines, the author starts to explain the nature and causes that can lead to intercultural conflicts such as miscommunication (Schein, 1993). Then, it is useful to talk about culture difference between the United-States and France in order to compare and analyse the cultural differences. Establish the cultural differences are easier to better understand conflicts between American and French workers and resolve them more efficiently. The last part of the dissertation will be the resolution of intercultural conflicts proposed by several authors. By comparing the two cultures, the author is able to make a comparison between the different groups, follow up them and bring out outcomes relevant for the analysis and findings. 3.6 Limitations For both studies, the author encountered the same difficulties. By using these methods to compare and analyse cultural differences, they are subject to limitations. Even if Hofstede’s work on culture is the most widely cited in existence (Bond, 2002; Hofstede, 1997), this model and GLOBE Project were the subject of criticisms. Indeed, not everyone in a given society is programmed in the same way and we can observe differences between individuals. Hofstede, on the website The Hofstede centre, affirms that individuals could have bigger differences in one country culture rather than the differences among all country cultures. Also, “values” are statistical data and cannot describe “reality”. All these statements have to be relative (the Hofstede centre).
  • 23. 15 Moreover, in general, most researchers judge another culture only by the values and standards of their own culture (ethnocentric pattern) and they represent a single timeframe. Eventually, these errors can provide bias, misinterpretation and inaccuracies (Lubrosky 1959, p.326; Nasif et al. 1991, p.83-84). It also important to emphasise the question of time. Cultures evolve with the time, and the culture of a country at a certain time cannot be the same with the result at another time. Furthermore another problem can be underlined; researchers tend to be focused on their discipline only and do not take time to explore others disciplines to provide better results closest to the reality (Nasif et al., 1991, p.83-84). 3.7 Summary This dissertation is a normal literature review evaluating intercultural conflicts and cross-cultural management within multinational companies. They are based in the United- States and intercultural conflicts concern French expatriates and American workers. The aim is to talk about intercultural conflicts between France and the USA. In general, within companies, all the employees are confronted to conflicts. How to deal conflicts and manage efficiently are an important issue for managers. The author of the dissertation wants to be more focused on intercultural conflicts and conflicts between migrant workers from France and American workers with an emphasis on cultural differences. Indeed, the author wants to show the relation between cultural differences and emergence of intercultural conflicts, and see how IHRM can be prepared to manage cultural differences. In order to best carry out this study, the author of this paper will attempt to explain from where conflicts emerge and what causes them. The main issue will be about communication theories or different ways of working and the different types of conflicts that exist. In addition, the author proposes several methods of conflict resolution. Various works cited above in the literature review will provide answers for the manager and wishing to resolve intercultural conflicts effectively and constructively. International Human Resource
  • 24. 16 Management will be involved in this dissertation. It will be useful to understand how IHRM can deal with these intercultural conflicts and create a good atmosphere at work favouring cultural wealth. 4. Cross-cultural management and International Human Resources Management (IHRM) 4.1 Explanation of culture, socialisation and normative behaviour First of all, it is useful to define what cross-cultural management is. Nancy J. Adler defines cross-cultural management as ‘the study of the behaviour of people in organisations located in cultures and nations around the world. It is essentially focused on description of organisational behaviour within countries and cultures and also focused on the comparison of organisational behaviour across countries and cultures. Cross-cultural management also aims to be emphasised on the interaction of people from different countries working within the same organisation or the same work group’ (Adler, 1983, p226). Now, after having defined cross-cultural management Veronica Velo, in her book Cross-cultural Management, gives a definition of Cross-cultural analysis. Cross-cultural analysis is ‘used to understand where the other party is coming from and allow us to formulate hypothesis that should allow us to tolerate, understand and find avenues for conflict avoidance and resolution. Rather than stereotype’ (Velo, 2012, p.41). The GLOBE project defines culture as ‘shared motives, values, beliefs, identities, and interpretations or meanings of significant events that result from common experiences of collectives and are transmitted across age generations’ (House et al., 2002, p. 5)
  • 25. 17 Geert Hofstede has defined the culture as the “collective programming of the mind” (Hofstede, 1980, p.16) which distinguishes the members of one group or category of people from another. Figure 1: Level of mental programming: Source: Adapted from Hofstede (2010), and Thomas and Inkson, (2003) Different levels can be identified in the human mental programming. First of all, we have the Human Nature that is universal and inherited. In other words, this “biological” stage means all humans have a universal reaction to biological stimuli, such as fatigue and hunger. The second level is the culture that is specific to group or category. And finally, we have the personality that is specific to an individual, inherited and learned. Individual experiences are unique and learned reactions and therefore differ across a spectrum of responses. So, we can distinguish three levels in human mental programming. The figure 1 represents the relationship between universal, cultural, and personal preferences. Human nature is biological programming, characteristics that are part of human nature. Personality are individual characteristics. Culture is between these two and the line that separates them is at best blurred. The most important is to identify what is universal and what is not. Misunderstandings can be the results of people who thinks values, beliefs or
  • 26. 18 assumptions are universals. That is the reason it is really important to identify cultural differences in order to bring awareness to non-universal assumptions (Velo, 2010). 4.2 Selected models of cultural dimension Because of the process of globalisation, researchers suggested we needed some kind of tools or mechanism in order to compare cultural differences and similarities. These tools are useful but they can be subjective according to how we analyse the different criteria. Then, managers have to know which practices or behaviours will create barriers and which will allow the creation of relationship, even if most of the time experts cannot reach an agreement about comparing cultural differences (Hall, 1992). It can be useful as a starting point cross- cultural understanding (Steers, Sanchez-Runde and Nardon, 2010). Different models have emerged in the 1980’s in order to present differences and similarities between cultures. Each models offers a different way to understand and measure culture. Two models presented below show cultural dimensions, such as Power distance, Individualism, or time perspective and so on. All these points allows us to compare and bring out cultural differences. These models are useful for cultural analysis. However, for several authors such as Richard M. Steers, Carlos J. Sanchez-Runde and Luciara Nardon, it is hard to find the best model which suits for managers because of different aspects used on these models. It depends also on which criterion we want to be focused. Also, these models are likely to be focused on comparing central tendencies between cultures and not enough on comparing the differences between each culture. In other words, the use of cultural dimensions should only be considered the beginning of a more detailed study (Steers, Sanchez-Runde and Nardon, 2010). The table presented below is different models used to compare and analyse cultures. It is a good instrument for us to analyse in details countries with specifics cultures. These two models presented below will be the framework of the dissertation. It will allow the author to point out cultural differences between France and the United-States.
  • 27. 19 Hofstede GLOBE Project Power Distance: Beliefs about the appropriate distribution of power in society. Power Distance: Degree to which people expect power to be distributed equally. Uncertainty Avoidance: Extent to which people feel threatened by uncertain or unknown situations. Uncertainty Avoidance: Extent to which people rely on norms, rules, and procedures to reduce the unpredictability of future events. Individualism-collectivism: Relative Importance of individual vs. group interests in society. Humane orientation: Extent to which people reward fairness, altruism, and generosity Masculinity-femininity: Assertiveness vs. passivity; material possessions vs. quality of life. Institutional collectivism: Extent to which society encourages collective distribution of resources and collective action. Time-orientation: Long-term vs. short-term outlook on work, life, and relationships. In-group collectivism: Extent to which individuals express pride, loyalty, and cohesiveness in their organisations and families. Indulgence: Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Assertiveness: Degree to which people are assertive, confrontational, and aggressive in relationships with others. Gender egalitarianism: Degree to which gender differences are minimized. Future orientation: Extent to which people engage in future-oriented behaviours such as planning, investing, and delayed gratification. Performance orientation: Degree to which high performance is encouraged and rewarded. Table 1: Selected models of cultural dimensions Source: Adapted from House et al., 2004; Hofstede, 2001. The two models presented above in the table 1 will allow the author to compare French and American culture in order to bring out similarities and especially cultural differences that are maybe originally sources of conflicts. The author will analyse cultural differences through two models presented above: GLOBE Project and Hofstede. Using the two models will allow us to obtain different
  • 28. 20 outcomes in order to provide to the reader a better analysis based on multiples data. Hofstede dimension’s is well-known to describe managerial behaviours (Hofstede, 1982). However, GLOBE studies are more recent (2004) and provide additional cultural attributes (Howell et al., 2007; Javidan, Dorfamn, de Luque, & House, 2006). 4.3 Hofstede’s Cultural Dimensions On the website “the Hofstede centre” (geert-hostede.com), this model is defined as following: ‘The model of national culture consists of six dimensions. The cultural dimensions represent independent preferences for one state of affairs over another that distinguish countries (rather than individuals) from each other. The country scores on the dimensions are relative, as we are all human and simultaneously we are all unique. In other words, culture can be only used meaningfully by comparison’. (Hofstede, Hofstede, Minkov, 2010) The model consists of six dimensions such as: - Power Distance (PDI): degree of equality or inequality, between people in the country's society. - Individualism vs Collectivism (IDV): degree the society reinforces individual or collective, achievement and interpersonal relationships. - Masculinity vs Femininity (MAS): degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. - Uncertainty Avoidance Index (UAI): level of tolerance for uncertainty and ambiguity within the society. - Long Term Orientation vs Short Term Normative Orientation (LTO): focuses on the degree the society embraces, or does not embrace, long-term devotion to traditional, forward thinking values.
  • 29. 21 - Indulgence vs Restraint (IND): Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms. Sources: McSweeney, 2010; Hofstede, 2001; Hofstede, 2010. 4.4 GLOBE Project According to Marcus W. Dickson, in his article Research on leadership in a cross- cultural context (2003), he wrote: ‘Robert J. House is the Principal Investigator of GLOBE (the Global Leadership and Organizational Behavior Effectiveness Research Project), and along with several co- Principal Investigators and a multinational Coordinating Team, he leads a group of over 180 researchers from around the world in a study of interacting effects of leadership, societal culture and organizational culture. Data have been collected from over 60 countries, using surveys, unobtrusive measures, interviews, media analysis, and archival data (often from the United Nations)’. (Dickson, 2003) The GLOBE researchers used data to put nations into cultural clusters. Countries that are grouped are based on cultural similarities due to shared geography and climate conditions. We can distinguish ten cultural clusters. In this dissertation, we will be essentially focused on two cultural clusters that are Anglo Cultures and Latin Europe in which the USA and France are part of these respectively. Figure 2 allows us to identify the ten cultural clusters. Moreover, researchers identified nine cultural dimensions presented in the table 2.
  • 30. 22 Figure 2: Culture Clusters in the GLOBE Study Source: Adapted from House et al., (2004). According to Vas Taras, Piers Steel and Bradley L. Kirkman, GLOBE Study is methodologically similar to other comparison studies, even if this study is unique: it measures cultural values or “should be”, and cultural practices or “as is” separately and provides two different sets of cultural indices (Taras, Steel and Kirkman, 2010, p.1331). 4.4.1 Measurements: In order to measure and compare different countries, a scale was established from 1 to 7 for each nine unique dimensions. Logically, 1 is considered as a lowest score and 7 the highest score.
  • 31. 23 In the next chapter, all the results regarding France and the United-States will be studied and analysed so that we see how business values and practices vary across nations and cultures. In other words, the analysis through the GLOBE Study will allow the reader to better understand cultural differences between the two countries that can lead to intercultural conflicts. 4.4.2 Practices and values: As mentioned above, GLOBE Project measures cultural values and practices. When researchers decided to use the results, they chose to rely on the values data alone. Indeed, seven of the nine dimensions presented on the table 2, a negative relation appears between values items and practices measures (Maseland, & Van Hoorn, 2008, p.4), indicating that GLOBE elicited marginal preferences rather than values (Maseland & Van Hoorn, 2008; Hofstede, 2006; Javidan, House, Dorfman, Hanges & Sully de Luque, 2006). In this dissertation, the author will collect only values data. The interest is to collect the results highlighted by the researchers. Table 2: The GLOBE Study Cultural Dimensions; adapted from House et al. (2004) The interest will be to use the two models to have a good opinion about the French and American culture. All these models will allow us to compare and identify similarities and differences between the two cultures. After that, we will try to show the correlation between
  • 32. 24 intercultural conflicts and national diversity or cultural differences (National diversity and conflict in multinational workgroups: the moderating effect of nationalism, 2006). 4.5 Comparison between GLOBE and Hofstede cultural dimensions The two models presented above are different but with some similarities. Our interest is to use the two models in order to be more accurate and provide better outcomes. By comparing and using these two models, the author tries to adopt a holistic approach to assess its effects on quality management. It is important to underline that Hofstede’s dimensions of national culture is the most used method. However, GLOBE captures more comprehensively and less ambiguously the elements of national culture (Vecchi and Brennan, 2011). The table 3 presented below shows the correspondence between Hofstede and GLOBE. Table 3: Correspondence between Hofstede and GLOBE Source: Hofstede, 2005; Vecchi and Brennan, 2011
  • 33. 25 4.6 International Human Resource Management In order to better understand the context in international business, the author defined cross-cultural management with different models and theories. Now, we want to deal with International Human Resource Management (IHRM) in depth that it means we try to focus on aspects of HRM in multinational firms. First of all, Michael Armstrong defines Human Resource Management: ‘it can be defined in line with the original concept as a strategic, integrated and coherent approach to the employment, development and wellbeing of the people working in organisations’. Also, several activities are included in HRM. These major categories are: - Selecting and Hiring Employees - Paperwork and Orientation - Training and Development - Compensation (Remunerations and Benefits) - Performance Appraisals - Safety and Health - Managing Legal Issues (Suttle, 2009) The author of this dissertation wants to show which activities change when HRM goes international. A model developed by Morgan is relevant. Morgan presents IHRM on three dimensions.
  • 34. 26 Figure 3: Model of International Human Resource Management Source: Adapted from Morgan, 1986. The first dimension represents the broad human resources activities such as procurement, allocation and utilisation. The second dimension represents the national or country categories involved in IHRM activities; the host-country where a subsidiary may be located, the home-country where the firm is headquartered and ‘other’ countries that may be the source of labour, finance and other inputs. The third dimension shows the three categories of employees of an international firm; host-country nationals (HCNs), parent-country nationals (PCNs) and third-country nationals (TCNs). Still, according to Morgan, IHRM is defined as the interplay among these three dimensions (1986). The context of internationalisation of multinational firms and shared cultures within these companies generate new patterns in whom they have to assume. Multinational companies staff who move across national boundaries with different roles within the international firm’s foreign operations. We call these employees “expatriates”: they work and temporarily reside in a foreign country (Dowling, Festing and Engle, Sr., 2013).
  • 35. 27 5. French and American cultures: presentation and comparison between the two cultures In this chapter, the author wants to compare French and American cultures. As the author said in the chapter 4, the comparison between the two cultures will be made with two studies such as Hofstede’s cultural dimensions and GLOBE Project. By comparing the two cultures, it will appear cultural differences on which the author have to emphasise. With the process of globalisation, we are inclined to be around people from different origins and experiences. Therefore, people are increasingly confronted with different ways of thinking, behaving and feeling. If people cannot deal with this process of the cross-cultural communication, they will feel insecure and threatened and intercultural conflicts will arise (Kramer & Brugman, 2009, p.1). Furthermore, Stella Ting-Toomey, in her book Managing Intercultural Conflict effectively, she affirms cultural differences are a prevalent sources of contention in intercultural conflict (Ting-Toomey, 2001, p.106). In this dissertation, the author wants to be focused on Anglo Cultures and Latin Europe Cultures. The next table shows the central tendencies of core cultural dimensions across the two regions studied. Table 4: Central tendencies of core cultural dimensions across Anglo and Latin European regions. Source: Steers, Sanchez-Runde, Nardon, 2010 Adapted from Ronen and Shenkar, 1985, and House et al., 2004.
  • 36. 28 Although central tendencies of core cultural dimensions are useful to obtain general cultural trends across countries and regions, nonetheless, they are not a substitute for more systematic in depth analysis such as Hofstede’s cultural dimensions or GLOBE Project. This part will be useful to analyse French and American cultures and then make a detailed comparison between them. The two models presented in the first chapter will be studied separately (Hofstede and GLOBE). After that, the author will identify cultural differences pointed out by the two studies. 5.1 France and the USA comparison through Hofstede’s Cultural Dimensions First of all, it is necessary to proceed to do a national comparison by the two countries concerned. A score is given for each country as shown in the table 5. For each part described in the fourth chapter regarding the six cultural dimensions, a score is given. All outcomes regarding this study will be a framework for the author and will allow us to highlight cultural differences. Table 5: France in comparison with the United-States, Hofstede’s Cultural Dimensions Source: Hofstede, Hofstede, Minkov, 2010
  • 37. 29 Now, the results are going to be analysed and interpreted by means of two books: Cultures and Organizations: Software of the Mind (Hofstede, G, Hofstede, G.J., Minkov, 2010), and Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations (Geert Hofstede, 2001). These books are the framework of the Hofstede’s cultural dimensions theory. The model consists of six dimensions. By comparing the six dimensions also presented in the Table 2, it will be easier to bring out cultural differences in the first place. The six cultural dimensions are going to be analysed one by one. 5.1.1 Power Distance (PDI) According to Hofstede’s study, France is a high power distance culture; whereas the United-States are a medium/low power distance culture. In France, high power distance culture indicates that inequalities of power and wealth have been allowed to grow within the society. The French society is more likely to follow a caste system. This system does not allow citizens significant upward. Furthermore, it means that people accepts a hierarchical order. A high PDI implies a wide discrepancy in equality between the authorities and the people. Within the company, it will be in the form of very formal interactions with managers. The power is centralised and power is a scarce resource. In a country with high power distance such as France, people feels that their lives are controlled by their authorities. They avoid conflicts with their authorities. Regarding the United-States, they seek equalisation of power, pursues inequalities. With a low power distance, the USA de-emphasise the differences between citizen’s power and wealth. In other words, equality and opportunity for everyone is emphasised. In this country, minimal power differences can be noticed. Power can be achieved through work and the hierarchy or line management at work is not rigid. A low PDI implies the authorities and the people are being treated equally in the system (Hofstede, 1980). People also believes they have control over their own lives and have more courage to disagree with the authorities (Chan & Cheung 2008).
  • 38. 30 5.1.2 Individualism (IDV) The concept of individualism and collectivism provides one means of distinguishing broad differences in cultural values (Hofstede, 1980). France and the United-States are individualist societies. In France, a high score on power distance and a high score on individualism is unusual. Subordinates normally pay formal respect and show deference to their boss. Then, they do the contrary behind their back, because they think they know better the solution. A miscommunication between employers and employees is real. Also, people needs to make a distinction between work and private life. Employees feel the pressure more than in the US, because of their emotional dependence on what the boss says and does. With a high score on power distance and collectivism, dependence is present in comparison with the US. Regarding the US, hierarchy is established for convenience within American organisations. Furthermore, superiors are accessible and managers rely on employees and work groups for their expertise and advice. Information is shared frequently and both managers and employees expect to be consulted. However, communication is informal, direct and participative to a degree. Sometimes, Americans do business with people they do not know well. At work, employees are expected to be self-reliant and display initiative. We can notice the contrary in France. Regarding human resources management practices such as recruitment, promotion and decisions, all are based on merit. 5.1.3 Masculinity (MAS) A low score (Feminine) means that the society takes care of others and quality of life before taking care of itself. In this type of society such as in France, quality of life is the sign of success. The welfare system, 35 hour working per week, five weeks of holidays per year; all these elements try to underline the quality of life. However, a high score (Masculine) indicates that the country is driven by competition, achievement and success, based on merit and recognition. This value system starts early in the
  • 39. 31 people’s life and continue throughout their life. In the US, the score is high just like individualism. Americans are individualist and masculine, that it means the success is personal and individual. In other words, they are independent and responsible for their success. Noticeable in the US, a “can-do” mentality is present which creates dynamism, and let make Americans believe that it is always possible to do things in a better way. Also, American mentality is work and it is essential. Most of the time, Americans “live to work”, so it is easier to get promoted and obtain monetary rewards in order to attain a higher status. Again, according to Americans, conflicts can bring out the best of people. The best will be the winner; it is always a competition and people have to do their best if they want to be considered. 5.1.4 Uncertainty Avoidance (UAI) 86 for France is a very high score, that it means the country has a low tolerance for uncertainty and ambiguity. Within companies, structure and planning are required. Before negotiations or meetings, they want to receive all the information available. Therefore, French evolve in a stable environment and develop complex technologies. However, French adopt strict codes of behaviour. France is a rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty. Regarding the US, with a low score of 46, that it means the country has more tolerance for a variety of opinions. Americans are more tolerant of ideas or opinions from anyone and allow the freedom of expression. Consequently, Americans do not require a lot of rules, more readily accepts change, takes more and greater risks and also they are less emotionally expressive than higher-scoring cultures such as France. 5.1.5 Long-term Orientation (LTO) France, with a score of 63, means the society is focused on long-term orientation whereas the US are short-term orientation society with a low-score. France prescribes to the values of long-term commitments and respect for tradition. Long-term rewards are expected
  • 40. 32 as a result of today’s hard work. Nonetheless, business could take longer to develop in France, especially for little companies. In the United-States, with a low-score, changes can happen more quickly as long-term traditions and commitments do not become impediments to change. Furthermore, American businesses measure their performance on a short-term basis (quarterly results). This culture’s characteristic push people to strive for quick results within the work place. Then, they hope an immediate gratification. 5.1.6 Indulgence (IND) People try to control their desires and impulses. Indulgence is the dimension that allows us to know if people have a weak control (Indulgence) or a strong control of themselves (Restraint). Countries, and consequently cultures can be describes as Indulgent or Restrained. Society with a low-score such as France has a tendency to cynicism and pessimism. France can be seen as a Restraint society; restrained countries do not allow time for leisure and they control the gratification of their desires. In other hand, with a high Uncertainty Avoidance, French are less relaxed and enjoy life less often than is commonly assumed. One the other hand, with a high power distance, French feel also their actions are restrained by social norms (caste) and think that indulging themselves are somewhat wrong. Concerning the United-States, with a high-score of 68, the country is seen as an indulgent society. It is true that Americans like enjoy their time and they are seen as optimistic people.
  • 41. 33 5.2 Comparison between France and the United-States through GLOBE Project Now, after the author analysed the cultural dimensions regarding France and the USA through Hofstede model, it is relevant to go into cross-cultural analysis in depth in order to get more details in terms of cultural differences and particularities regarding the countries. As we saw in the fourth part, table 3, Hofstede model and GLOBE Project have similarities. After analysed the results from the GLOBE study, available in the appendices, it is relevant to exploit the data not used for the Hofstede’s cultural dimensions that are Humane Orientation, Future Orientation and Performance Orientation. The author will also be focused on Assertiveness. Before starting the analysis of the results regarding the GLOBE Study, the table 4 and 5 allow the reader to see the outcomes concerning the cultural dimensions between the two countries. However, it is important to underline only Values results are taken in consideration (cf. 4.4.2 Practices and Values). France United-States Dimensions Practices Values Practices Values Uncertainty Avoidance* 4.66 4.65 4.15 3.99 Power Distance* 5.68 2.96 4.92 2.88 Institutional Collectivism* 4.20 5.27 4.21 4.20 In-Group Collectivism* 4.66 5.88 4.22 5.79 Gender Egalitarianism* 3.81 4.71 3.36 5.03 Assertiveness 4.44 3.57 4.50 4.36 Future Orientation 3.74 5.35 4.13 5.34 Performance Orientation 4.43 6.10 4.45 6.14 Humane Orientation 3.60 5.91 4.18 5.51 Table 6: Score in values and practices for the GLOBE Study (France and the USA) Source: Adapted from House et al., 2004 Response bias corrected scores for societal cultural scales (House et al., 2004)
  • 42. 34 Higher scores indicate higher levels of this dimension. *Similarities between Hofstede and GLOBE (cf. Table 3). Table 7: Score in values for the GLOBE Project (France vs. USA) Source: House et al., 2004. All the interpretations and comments about the results regarding Assertiveness, Future Orientation, Performance Orientation, and Humane Orientation come from the following authors and websites: House et al., 2007; Grove, C.N. 2005; Virkus, V. 2009. 5.2.1 Assertiveness According to House et al. (2004) ‘Assertiveness is the degree to which individuals are assertive, confrontational, and aggressive in their relationships with others’ (House et al., 2004, p. 30). France has a lower score compare to the United-States that it means: French people values cooperation and warm relationships, they communicate indirectly, try to be in harmony with the environment and expect subordinates to be loyal. Also, they build trust on basis of predictability (cf. uncertainty avoidance). 4.65 2.96 5.27 5.88 4.71 3.57 5.35 6.1 5.91 3.99 2.88 4.2 5.79 5.03 4.36 5.34 6.14 5.51 2 3 4 5 6 7 GLOBE Project France/ USA France Values United-States Values
  • 43. 35 With a higher score regarding the United-States, the Americans value success, competition and progress (cf. can-do mentality), communicate directly, try to take control of the environment and expect subordinates to take initiative. However, they build trust on basis of calculation. 5.2.2 Future Orientation According to House et al., ‘Future orientation is the degree to which a collectivity encourages and rewards future-oriented behaviors such as planning and delaying gratification’ (House et al, 2004, p. 282). GLOBE Future Orientation values reflect societal aspirations and preferences for planning (Venaik, Zhu, Brewer, 2013). With a high score for the two countries (5.35 and 5.34), they are supposed to save now for the future and emphasise working for long- term success. Moreover, organisations tend to be more flexible and adaptive. 5.2.3 Performance Orientation It refers to the extent to which an organization or a society encourages and rewards group members for performance, improvement and excellence (House et al., 2002). The United-States get a score slightly higher. Nonetheless for both, it is a very high score that it means for them; they grant importance to training, development, competitiveness and materialism. This part does not allow the author to bring out cultural differences because results are the same for both countries. 5.2.4 Humane Orientation Humane orientation is defined as ‘the degree to which an organization or society encourages and rewards individuals for being fair, altruistic, friendly, generous, caring, and kind to others’ (House et al, 2004, p.569). France has the highest score among the 26 countries studied; we already know France is a collectivist country rather than individualist. Then, the interest of others is really important, and people are interested to be a part of a group or an affiliation. The USA have a lower score that it means one’s own self-interest is
  • 44. 36 more important than others. However, people are motivated for power and particularly material possessions. Until now, the author wanted to emphasise cultural difference through two models: Hofstede and GLOBE Study. Now, in this dissertation it is possible to underline cultural differences between France and the United-States. In the next chapter, the interest will be to show how intercultural conflicts arise and what are the sources of intercultural conflicts? After having highlighted the cultural differences, it will be easier to understand how intercultural conflicts emerge in the workplace in American multinational companies and have to face up to expatriates influx and especially French expatriates. 6. Intercultural conflicts within American multinational companies between French and American workers In this chapter, the author is going to define how intercultural conflicts arise and what are the sources of cross-cultural conflicts? Furthermore, the author will underline the cultural differences that lead to conflicts between American and French workers. 6.1 How Intercultural Conflicts arise? Interpersonal conflicts emerge because of different factors, each referring to Culture- related differences such as norms, perceptions and practices, and more particularly related to time, urgency and implementation (Jassawalla, Truglia and Garvey, 2004). Moreover, between French and American culture, three categories can foster cultural differences that are: tastes and preferences, ethical imperatives vs. legal requirement (legal
  • 45. 37 system) and beliefs and values. A difference of point of view (different cultures) in these three categories can lead directly to conflict (Steers, Sanchez-Runde, & Nardon, 2010). Figure 4 shows the sources of intercultural conflict between two different cultures (Culture A & B). Figure 4: Sources of intercultural conflict. Source: Steers, Sanchez-Runde, & Nardon, 2010 With the process of globalisation and melting pot, employees are confronted with different ways of thinking, behaving and feeling. If unfortunately we cannot deal with these processes, employees will feel unsecure, threatened and put the blame for this on the others. One of the most important difficulties for expatriates is to be unable to deal with cross- cultural adaption issues related to cultural differences; for instance language, living conditions, uprooting spouses and families, and working harmoniously with co-workers with different cultural backgrounds (Yavas and Bodur, 1999). So, the most important information, is issues of interpersonal conflicts arising from cultural differences. However, conflicts also arise because of the cultural differences related to the sense of urgency around producing results (Jassawalla, Truglia and Garvey, 2004). For instance, American workers get used to work toward project deadlines without paying attention to the hours they devote (“live to work”). Also, they are willing to work extra-hours to complete projects and expect that others are doing the same. In Europe and in France, mentality about work is really different; in a feminine country, working over-time is frowned upon in France. Regarding American workers, they do not only work over-time; in addition the American norm about the length of time to take new ideas is faster rather than in Europe. Jassawalla, Truglia and Garvey (2004), talk about the American norm of “just doing
  • 46. 38 it” in comparison with European countries where employees take their time to take decisions. All can lead to frustration and in other words intercultural conflicts. Intercultural conflicts start when protagonists identify them with one group (in-group), which opposes another group (out-group). Each group try to preserve, protect and strengthen itself in order to stand up for the interests of the group. Some authors such as Stephan and Stephan (1985) recognise that exposure to out- groups predicates the activation of negative stereotypes and biases against out-group members, leading to intergroup tensions and conflicts. Given that, organisation like multinational companies become more culturally diverse, intercultural conflicts occur more easily between employees from different cultural backgrounds (Jehn & Mannix, 2001; Jehn, Northcraft, & Neale, 1999). Several authors have underlined nationality have a distinct and often a more significant influence than other demographic characteristics. Then, national diversity is an important factor that will have a major impact as a predictor of conflict specifically in multinational workgroups (Miles, 1964; Tsui et al., 1992). As individuals attempt to communicate and work together, they may react negatively to the cultural practices of others (Gudykunst et al., 1996; Pearson & Stephan, 1998; Ting- Toomey et al., 2000). Furthermore, national diversity lead to intercultural and relationship conflicts for three reasons: decreased relationship quality, decreased group integration and increased categorisation processes (Ayub and Jehn, 2006). Besides, the quality of interpersonal relationships decreases whereas diversity increases in groups (Riordan & Shore, 1997). Moreover, lower quality work relationship is perceptible in comparison to less racially diverse organisations. In this way, in 1997, Rivenburgh emphasises different nationalities in a workgroup can lead to intergroup discrimination just by the awareness that other nationalities are present. It is question that nationalities are often stereotypical, through media portrayals (Rivenburgh, 1997).
  • 47. 39 National diversity can bring diversity of ideas to the group because of cultural differences and different national backgrounds bring in diverse sets of knowledge, expertise and wisdom (Ayub and Jehn, 2006). Additionally, cross-national diversity increases creativity and synergy (Adler, 1997). Employees from different cultures and national backgrounds will bring together a variety of task-relevant viewpoints coming from their national traditions and different educational experiences. Nonetheless, at the same time, Jehn et al. (1999) pointed out that differences in past work experiences were positively related to task conflict in workgroups, so national diversity can lead to task conflict. In nationally diverse workgroups, members of the workgroups have to deal and delineate tasks processes among dissimilar group members from different national backgrounds. Diverse groups are inclined to meet process difficulties than homogeneous groups (Williams and O’Reilly, 1998). Process conflict arises for three distinct reasons: misunderstandings due to language barrier and communication issues, (self) exclusion from procedural decision making, and misunderstandings due to stereotypical biases (Ayub and Jehn, 2006). 6.2 Types of intercultural conflicts Hellriegel, Slocum, and Woodman (2001) have identified three types of conflict that may arise when individuals involved come from different cultures. Goal conflict is a situation in which preferred outcomes appear to be incompatible. Cognitive conflict arises when ideas or thoughts are perceived as incompatible. Finally, affective conflict is when feeling or emotions are incompatible.
  • 48. 40 6.3 Consequences of Intercultural Conflicts Several authors underlined that intercultural conflicts could cause decreasing of motivation, work performance and open-mindedness. In 2003, Frost analysed toxic work environment and suggested that insensitive attitudes and behaviours of employees exert an insidious effect on people around them, decreasing dramatically their work performance (Frost, 2003). Besides, when employees from different cultures are unable to overcome their cultural differences and manage their disagreements, ineffective communication slows down creative and work performance (Giambatista & Bhappu, 2010; Hackman, 1990; O’Reilly et al., 1998; Swann et al., 2003). Dialogue is a necessary condition for effective group action. Also, dialogue is at the root of all effective group action. Through process of dialogue, it is more evident to know if the communication is valid or not. If not, dialogue will show us the differences between people such as different mental models or using words differently. All these elements will lead people to divergences and sometimes conflicts. In terms of cross-cultural management, multinationals will need to develop shared mental models through dialogue. It is true that national culture differs from another and organisations have to be able to create common practices in order to generate a genuine subculture particular to the company and increase work performance (Schein, 2003). When individuals are witnesses of intercultural disharmony among people in their immediate social environment or workgroup for example, they think two cultures are incompatible because implicit beliefs about ideas and values increase. In other words, cultural incompatibility thought by individuals because of implicit beliefs influence individual’s subsequent performance in creativity tasks (Decker, 1980; Gioia and Manz, 1985). Moreover, as soon as people convince themselves that ideas from different cultures are incompatible, they become narrow-minded and less able to access knowledge from another culture and draw connections among them to develop new ones (Roy Y. J. Chua, 2013).
  • 49. 41 Regarding workgroups, some organisations are trying to create the most effective workgroups. In order to do this, multinationals gather individuals with relevant skills and capacities from different countries and cultures. When multinational companies seek skilled employees, it may results often in the construction of nationally diverse workgroups. It is also true that workgroups with individuals from different cultures increase permanently in multinational contexts (Earley and Mosakowski, 2000; Milliken and Martins, 1996). The author will show in the next chapter that relevant skills and capacities are not enough sufficient to create the most effective workgroup. Others key factors are essential to develop effective workgroups. After having underlined nature, types of cross-cultural conflicts and their consequences, the next and final chapter will deal with the resolution of intercultural conflicts within multinational companies. The interest will be to propose diverse solutions brought by several authors. It will be about models, methods or discussions regarding resolution of intercultural conflicts. It will be a real challenge for IHRM and French expatriates who will have to deal with cultural differences. The next chapter will be useful to show the impact of cultural dimensions and intercultural conflicts on International Human Resource Management, French expatriates and American workers. 7. Resolution of intercultural conflicts within workgroups: a challenge for IHRM and workers In this last chapter, the author wants to answer to the research question: how to resolve intercultural conflicts? Different methods and models saw the light of day since the last decades. It is relevant to present and analyse these theoretical frameworks and researches dealing with this topic. The author will also present the impact of cultural dimensions on Human Resource Management. Some activities of HRM are likely to change depending on the country studied.
  • 50. 42 Regarding conflict resolution, it is defined as “the process used by parties in conflict to reach a settlement” (Sweeney & Carruthers, 1996, p. 328). 7.1 Impact of Cultural Dimensions on Human Resource Management Practices According to Michael Armstrong, ‘International human resource management is the process of employing, developing and rewarding people in international or global organizations. It involves the world-wide management of people, not just the management of expatriates’ (Michael Armstrong, 2006, p.99). As cited above, IHRM is focused on employment (recruitment and selection policies), developing people (training policies), and rewarding people (compensation and benefits). The analysis will be based only on these three areas of HRM. Added to this, the author wants to include performance management (or performance appraisal). Also, assimilation and review policies have to be taken in consideration. As cited above, IHRM involves the world-wide management of people; assimilation policies provide for the adaptation of expatriates to overseas posts and their progress in them to be monitored and reviewed (Michael Armstrong, 2012). As the author said in the introduction (cf. 1.2 Purpose of the study…), some issues affect the practice of international as HRM such as the impact of globalisation, the influence of environmental and cultural differences, the extent to which HRM policy and practice should vary in different countries, and the approaches used to employ and manage expatriates (Michael Armstrong, 2012). Because of differences in policies, cultures and laws, HR practices have to be adjusted following the country studied. Then, it is possible that cultural differences could impact on how HR roles are implemented across borders.
  • 51. 43 IHRM have to deal with these cultural differences and then intercultural conflicts, since the author showed a correlation between cultural differences and conflicts (poor cross-cultural adaptation, national diversity). The author wants to know how IHRM can be prepared, in order to handle and resolve these intercultural conflicts. 7.1.1 Recruitment and selection policies First of all, recruitment and selection strategy differ across cultures. According to Odenwald selection and training combined can help expatriates with cross-cultural adaptation (1993). Cultures with high performance orientation or universalism such as the United-states regarding recruitment and selection are based on “hard criteria” such as competencies, job- related knowledge, technical and cognitive skills. However, “soft criteria” are used in cultures that are high on femininity such as France. Soft criteria are essentially social and interpersonal skills, social class affiliation and age (Aycan, 2005). Cultures with high score on uncertainty avoidance such as France are more likely to prefer internal recruitment rather than external recruitment (Aycan, 2005). With a high score on Institutional Collectivism for France, the author considers this country as collectivist in some part. Collectivist cultures seem to prefer the use of internal labour markets in order to promote loyalty to the firm (Budhwar and Khatri, 2001). Therefore, it is often difficult for externally recruited candidates to enter the strong social networks within the organisation (Björkman and Lu, 1999). Countries with a high score on uncertainty avoidance prefer informal recruitment channels and methods (France). However, countries that are high on performance orientation opt for formal recruitment and channels methods, structured and widespread. Moreover, selection methods are standardised and job specific whereas in cultures with high femininity such as France, they are not standardised and rely on face-to face interactions (Aycan, 2005). It is important to underline that France has a high score on performance orientation, but a very
  • 52. 44 high score on uncertainty avoidance and femininity. Then, France could use the three methods described. Concerning written ability and personality tests, French in comparison to American perceived written ability tests less impersonal. Personality tests are more offensive for French and violate their privacy (Steiner and Gilliland, 1996). France, high on uncertainty avoidance would tend to use more types of selection tests, and conduct more interviews and monitor their processes in more detail, in order to collect objective data for making decisions (Ryan et al., 1999). Short-term oriented cultures such as the United-States, concerning the retention of staff will prefer to be focused on transactional employment relationships and be more responsive in nature. In the contrary, in France, retention practices involve a more preventive character and centre on relational employment needs (Reiche, 2008). 7.1.2 Training policies According to Aycan, training and development activities are the key to organisational survival and growth in today’s global competition (2005). In the United-States (low power distance cultures), training needs are usually determined jointly by the employee and the superior. In high power distance cultures such as France, training needs of the work group are determined by the paternalistic manager in an authoritarian or consultative way (Wilkins, 2001). In low power distance and high performance oriented, such as the United-States, training and development needs are determined based on performance evaluation outcomes. In France, with a high power distance and as a paternalistic culture, selection for training is not based primarily on performance, but on group membership (Aycan, 2005).
  • 53. 45 In France, with a high uncertainty avoidance and high power distance, employees are more receptive to one-way lecturing rather than participative discussions (Parnell and Hatem, 1999). The instructor is perceived as the “authority” who must provide answers and guidelines (Laurent, 1986; Thornhill, 1993). To instil trust and ensure a high level of credibility in the instructor, organisations in this type of culture prefer high-level, or senior managers as instructors rather than hiring external consultants or trainers (Wright, Szeto and Cheng, 2002). 7.1.3 Pay and allowances policies In cultures with high power distance such as France, performance-reward contingency is lower (Aycan et al., 2000). Also, reward allocation is based on seniority or being on good terms with the management and not based on performance (Hui and Luk, 1997; Leung, 1997; Smith and Bond, 1993). Seniority-based compensation system is preferred in societies with high level of uncertainty avoidance, because such practice emphasises predictability and certainty. However performance and skill based compensation system are preferred in societies with low uncertainty avoidance such as the United-States (Schuler and Rogovsky, 1998). To summarise these statements, in the United-States, rewards are contingent upon performance. Nevertheless, in France, performance reward contingency is low. It should be noted that power distance or uncertainty avoidance is positively correlated with seniority and good interpersonal relationships with higher management and represents important criteria for compensation (Aycan, 2005). Focus on individual performance and pay based on performance are used in the U.S (individualistic cultures) (Schuler and Rogovsky, 1998). In France, more collectivist than the U.S, group-based rewards are more frequent (Gluskinos, 1988). Regarding the compensation, differentials between individuals are very high in individualistic and performance-oriented cultures such as the United-States (Easterby-Smith et al., 1995; Huo and Von Glinow, 1995).
  • 54. 46 7.1.4 Performance Appraisal In the United-States and all individualistic cultures, performance orientation leads to an evaluation system based on employee productivity, timeliness, quality of output and job- specific knowledge and proficiency. Consequently, individual and work outcomes are more important rather than the group and work process in this type of societies. Harris and Moran suggested that performance criteria are more objective, quantifiable and observable (1996). Nonetheless, in collectivist cultures or with a high institutional collectivism, loyalty to the in-group is valued more than productivity. According to Kovach and Vallance, high- performing employees who distinguish themselves could disturb group harmony and invoke jealousy (1995, 1999). Results are important but social and relational criteria carry a lot of weight compared to evaluating employees. Still in France, performance appraisal is a top- down unilateral process, where superiors evaluate the performance of subordinates. Very popular in the United-States, the 360-degree performance appraisal method does not work in high power distance cultures (France) (Davis, 1998). 360 degree feedback performance appraisal process to evaluate the individual managers. This method provides a feedback on a manager’s performance collected from colleagues, manager’s direct supervisor, customers, vendors and a self-assessment (Gluck, 2000). In order to be efficient, this method requires low power distance (Fletcher and Perry, 2001). If French expatriates are subject to 360-degree evaluation, it may disturb group harmony due to constant monitoring of the behaviour of one’s colleagues. Therefore, self-appraisal is not appropriated in the French culture. The emphasis on the “self” and personal achievements is disturbing in countries where humility in self-presentation is the norm (Wiersma and van der Berg, 1999). In the United-States, performance evaluation is conducted once or twice a year, and standard forms of performance evaluation are used to encourage objective assessment of employees by multiple sources. Otherwise, in high power distance, performance evaluation is conducted in an unsystematic way.
  • 55. 47 7.2 French expatriates adjustment for better cross-cultural adaptation Expatriates are people working overseas on a long or short-term contracts who can be nationals of the parent company or “third country nationals” (TCNs) – nationals of countries other than the parent company who work abroad in subsidiaries of that company (Armstrong, 2012). The management of expatriates is a major factor determining success or failure in an international business. In our case, the author wants to insist on the process of selection and training of French expatriates. In other words, the author wants to know how IHRM can select expatriates and how they can train them in order to facilitate the integration abroad and more particularly in the United-States. 7.2.1 Selecting expatriates It is really important for IHRM to select expatriates who present qualities such as openness and sociability (Caligiuri, 2000), self-confidence and willingness to change (Forster, 2000) and patience and tolerance (Yavas and Bodur, 1999). However, today, firms use technical competence as the sole selection criterion but technical skills are insufficient in helping expatriates with adjustment issues (Sanchez et al., 2000). Also, according to Avan Jassawalla Ciara Truglia and Jennifer Garvey (2004), it is important to take in consideration emotional intelligence (EI) and not only IQ. Managing cross-cultural conflicts depends essentially on personality traits (Caligiuri, 2000). In order to improve cross-cultural adaptation, several skills and abilities have to be developed. These skills and abilities are integral parts of emotional intelligence, and result from components of EI (Jassawalla, Truglia and Garvey, 2004). The components are the following: - Self-awareness: ability to recognise one’s emotions, moods, and reactions. - Self-regulation: ability to control or express emotions, without any judgment. - Self-motivation: resilience and ability to persevere despite obstacles.
  • 56. 48 - Empathy: ability to place oneself in another’s shoes and understand differences in values and perspectives. - Social skill: ability to build relationships by seeking commonalities and friendships regardless of differences. 7.2.2 Training expatriates and American workers In addition to language training for improved communication in the United-States (Andreason, 2003) and cultural training for intelligent responsiveness in different psychosocial and cultural background (Tung, 1982; Yavas and Bodur, 1999), pre-departure training is necessary. Language and cultural training are useful to better know the country where expatriates are going. It is important to know more about the cultural differences and particularities about the country, here is the United-States. However, some personal traits/skills are essentials to train and develop before they leave France. This pre-departure training implicates skills such as active listening, ethical reasoning, and conflict management (Jassawalla, Truglia and Garvey, 2004). Training expatriates is fundamental but training American workers is also important, because they are supposed to interact and collaborates with expatriates. Interact and collaborate with expatriates require training. In other words, Vance and Pederon (1993), affirm training as an ethical imperative for global firms because training key host nationals can reduce stress and increase the expatriate’s effectiveness. Also, training American workers could reduce discriminatory treatment and avoid rejection of the host culture (Sanchez et al., 2000). 7.3 Cultural stepping stones model Before giving solutions to resolve intercultural conflicts, it is important to show the path who lead to resolution of them. We already know in intercultural conflicts situations, the other’s “being different” confronts us with our own habits, norms and values. Miscommunication, misunderstandings, power struggle are involved into cultural dynamics.
  • 57. 49 The situation during conflicts can be very complex and hard to analyse. To apprehend these processes and so manage efficiently intercultural conflicts, Jitske Kramer came up with The Cultural Stepping Stones model presented below in figure 5. This model represents three phases of an intercultural interaction process. However, understanding of this model will allow victims of intercultural conflicts to react and handle more efficiently the different processes. Figure 5: The Cultural Stepping Stones model Source: Kramer and Brugman, 2010 The first and second phase are at the heart of intercultural conflict. Indeed, the first phase is the meeting between two cultural strangers, in which they are confronted by different behaviours and thoughts that lead sometimes to cross-cultural conflicts (cf. 6.1. How intercultural conflicts arise?) This phase is about “opening up” and employees have to face up to differences, allow misunderstandings and conflicts to move forward in the process. Recognise and accept differences, be neutral regarding judgments and feelings and adopt a positive attitude. Regarding the second phase, people from the workgroup confronted to different culture have to be open-minded and curious. They start to explore the new culture from different perspectives (own culture, other’s culture and mutual interaction). Through this process, we