(Tiểu Luận) Group Assignment Reportmulticultural Management Topic Universalism Vs Particularism.pdf

DA NANG UNIVERSITY OF ECONOMICS

FACULTY OF INTERNATIONAL BUSINESS

TABLE OF CONTENT

I.Trompenaars’ Cultural Dimensions 1

1.Universalism versus Particularism (rules versus relationships) 1

a Definition 1

b Some characteristics of universal and particular cultures .1

c Comparison of the best and the exaggerated of universalism and particularism 3

2.Types of governance and economic system 4

II.Universalism versus particularism in business 5

4.Timing a business trip 8

5.The role of head office 9

6.Job evaluations and rewards 10

7.Relocation Assistance 11

8.Managing and being managed 11

III.Reconciling universalism and particularism 12

IV.Tips for doing business in universal and particular cultures 13

V.Summary main points 15

VI.References 17

I.Trompenaars’ Cultural Dimensions

1.Universalism versus Particularism (rules versus relationships) a.Definition

Universalism is the belief that rules and practices should be applied consistentlyeverywhere, regardless of the specific situation It's like saying one-size-fits-all On the other hand, particularism is the belief that the circumstances and context shoulddetermine how rules and practices are applied In other words, it's like saying "Itdepends." (Doh & Luthans, 2012)

This dimension helps us understand how we assess other people's actions Forexample, there are two distinct ways of making judgments (Trompenaars & Hampden-Turner, 1997)

 On one side (universal approach), there's a sense of duty to follow widelyaccepted cultural standards, such as "Don't lie," "Don't steal," and the Golden Rule,which encourages treating others as we want to be treated

 On the other side (particular approach), we have personal obligations topeople we know well For example, if "X is my close friend," it means I wouldn't lie orharm them because it would be harmful to both of us, and we aim to treat each otherkindly.

As a result, universalist thinks of particularist as “they cannot be trusted becausethey will always help their friends” On the opposite, a particularist, conversely, considersa Universalists as “cannot trust them; they would not even help a friend” (Trompenaars &Hampden-Turner, 1997)

b.Some characteristics of universal and particular cultures (Doh &Luthans, 2012)

Cultures with a strong focus on universalism tend to see one standard reality andprioritize following formal rules These cultures try to treat all cases the same, even ifthey involve friends or loved ones It means that they prioritize formal rules over personalrelationships When they make a deal, they believe it should be upheld strictly, with no

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exceptions Because there is a fear that the whole system will collapse if they startmaking exceptions to the stated rules

For example: countries like the United States, Canada, the United Kingdom,

Australia, Germany, and Sweden are examples of places where universalism tends to beemphasized

In contrast, cultures that lean towards particularism view reality as subjective andgive higher importance to personal relationships and adapting to the exceptional nature ofpresent circumstances In these cultures, it's common to be more flexible with rules,especially for family, close friends, or influential individuals Each situation is assessedbased on its own merits This means that exceptions are more common, as the focus is onvaluing human connections and using the emotional understanding of the heart ratherthan rigid rules Legal agreements are often open to changes, and as people get to knoweach other better, they may adjust how they handle deals

For example: Countries like Venezuela, Indonesia, China, South Korea, and the

former Soviet Union are more inclined towards particularism

(Doh & Luthans, 2012)

Viewpoints of each universalist and particularist are briefly stated in the table:(Trompenaars & Hampden-Turner, 1997)

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which has been agreed to.5 A deal is a deal.

reality relative to each participant.5 Relationships evolve.

c.Comparison of the best and the exaggerated of universalism andparticularism (Hampden-Turner & Trompenaars, 2002)

The Best ofUniversalism

Exageration ofUniversalism

The Best ofParticularism

Exageration ofParticularism- Tries to treat all

people the same- Everyone’s vote

The laws apply to everyone,irrespective of their wealth or influence, fosteringfairness and accountability- Embrace diversity

and differences, promoting inclusivity- Prioritizing mass

production and accessibility for the broader population

- Creates fundamentalist ideologies, (e.g extreme religious groups)- Deals with

emotion as if it were numerical- Measures

everything as if it were linear- Resulting in

illogical attempts to quantify subjective qualities, such as beauty

- Contributes to the expansion of jurisprudence, resulting in a

- Embrace the novelty, uniqueness, and unmatched aspects- Oriented to those

who have special tastes

- Everything is intimate, personal, especially for “you” - Eliminates the

monotony of universalism- Creates vitality

and energy

- Ends up being aggressive (e.g., KKK)- Promotes the

abuse of power, coercion, mystification, conspiracy (e.g Mafia)

- Has a tendency tofavor certain groups- Insists that

something “unique” is universal, and imposes it on everyone (e.g Prohibition Era)

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higher number of lawyers and increased legal complexities

For example:

Imagine a common family situation: One of your family members is planning tomarry someone that most of the family doesn't like This leads to a dilemma Should thefamily try to stop the wedding or express their disapproval? Often, families discuss theirconcerns privately but hesitate to communicate those concerns to the family membermaking the choice.

A "universalist" in this context thinks that always telling the truth is the mostimportant, and they may see the family's silence as dishonest and unloving On the otherhand, a "particularist" values preserving the relationship over telling the absolute truth.They worry that speaking up might upset the relative and damage the relationship.

"Particularists" also believe in truth, but they prioritize protecting theirrelationships with loved ones over honesty To them, saying something might endangerthe relationship, and they weigh this heavily (Trompenaars & Hampden-Turner, 1997)

2.Types of governance and economic system (Li, 2009)

The degree to whichsociety relies on relation-based governance

The degree to which society relies on rule-based governance

Countries that have weak informal social networks or live in chaos or civil wars (e.g., some Latin American

(Type A)

Most mature market economies (United States, Western Europe)

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and African countries)

(Туре B)

Certain developing and transition economies that havestrong extended informal social networks (e.g., China, Vietnam, Thailand)

(Type C)

Economies that mix based system with strong relation-based culture (e.g Hong Kong, Singapore)

rule-Universalist tendencies are more common in Protestant cultures, where believersconnect with God by strictly following His written laws In these cultures, there are nointermediaries between individuals and God No one has the authority to hear personalconfessions, grant forgiveness, or make exceptions.

In predominantly Catholic cultures, these aspects of religion are retained,emphasizing a more relational and particularistic approach Here, people may transgresscommandments but still find understanding and compassion for their uniquecircumstances In Catholicism, God is seen as more relatable, and it's believed that Hemight understand if, for example, someone told a lie to protect a friend who had themisfortune of a pedestrian crossing incident (Trompenaars & Hampden-Turner, 1997)

II.Universalism versus particularism in business1.Business

In the world of business, there are two primary approaches: universalism andparticularism Universalist businesses aim to create products that have broad appeal,designed to meet the needs of a wide range of consumers They believe that genericproducts are more marketable across different cultures, and they strive to offer versatileproducts and services that require minimal adaptation for various regions Well-knownAmerican brands like Coca-Cola, Levi's, and Microsoft exemplify this universalistapproach, and American culture itself tends to favour standardized products (Sattorovich,2020) However, as markets became more individualized and specific, the United States

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encountered challenges with its mass production and mass marketing approach,especially when competing with particularistic countries like France that focus onindividualized and customized products (Cultures, 2022)

On the other hand, some companies strike a middle ground between universalismand particularism For instance, Dell adopts mass production and cost-efficiency throughonline centralization of orders but also provides customized computer configurations tocater to individual consumer needs Similarly, Zara, a Spanish fashion manufacturer,tailors its collections to suit local preferences in different countries, enabling them toadapt quickly to changing market demands These businesses combine the advantages ofmass production with customization to satisfy the diverse demands of their customerbase.

Universalist cultures typically prioritize rules over relationships For example, inthe United States, employees often compete vigorously for better job positions and highersalaries without placing a strong emphasis on their relationships with colleagues.In contrast, particularistic cultures like China place significant importance on buildingand maintaining relationships When dealing with or managing individuals fromparticularistic cultures, universalists should establish informal networks and cultivatepersonal understandings Additionally, they should strive for fairness in business dealingsby treating each case as unique (Cultures, 2022)

In universalist cultures, the use of substantial contracts is a common practice.These contracts serve as a formal record of an agreement, outlining what each party hascommitted to do They not only signify consent to the agreement but also establish amechanism for recourse in case either party fails to fulfil their obligations

These cultures use the court to mediate conflicts Therefore Americans have much morelawyers per citizen than any other country The more universal a country is, the greaterthe need to protect the truth.

International operating businesses think more likely in an universalistic way.When universalistic business people agree to a contract relating to a high-value deal there

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are always lawyers involved to ensure that every detail is correctly mentioned andprotected by a paragraph This means that when lawyers are involved in the negotiationprocess, it sends a clear message that any breach of the contract could result in significantcosts, emphasizing the importance of keeping the promises made, even if doing sobecomes inconvenient In essence, these weighty contracts provide a structured andlegally binding framework for conducting business and maintaining accountability inuniversalist cultures (Trompenaars & Hampden-Turner, 1997)

In particularist cultures, legal contracts serve not only as written promises but alsoas a symbol of trust, reliance, and belief in the business relationship forged prior tocontract discussions When business partners create contracts that have strict rules andpenalties, it sends a message that one party might act dishonestly unless legally preventedfrom doing so Those who feel this lack of trust may respond by behaving inuntrustworthy ways Alternatively, they might choose to end their partnership with auniversalist business partner because they find the partner's cautious approach offensive,and the inflexible contract terms hinder the development of a positive workingrelationship (Trompenaars & Hampden-Turner, 1997)

For instance, Chinese businesspeople place great emphasis on interpersonal

relationships among partners Implementing strict regulations or formulations in contractsmay potentially offend or insult their partners, as it could be interpreted as a lack of trustand an accusation of dishonesty Therefore, it is essential for individuals fromuniversalistic cultures to carefully consider and acknowledge the significance of theserelationships when dealing with particularistic cultures.

Chinese businesspeople tend to keep contracts vague and flexible It is not uncommon forthem to continue negotiating even after a contract has been signed and agreed upon by allparties involved (Cultures, 2022)

Moreover, the idea of corruption can sometimes be viewed as a judgment made byuniversalist cultures about particularistic behaviours Conversely, those who strictlyadhere to universalist rules may be criticized as unfeeling and inflexible bureaucrats whoprioritize rule-following over the well-being of individuals This perspective is evident in

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Western universalist cultures, where formal contracts often take precedence over term personal relationships.

long-In contrast, in more particularistic parts of the world, a strong and deep personalrelationship can provide assurance for a deal, rendering the need for a formal contract orlegal system less important In these regions, a simple handshake agreement can still holdsignificant value (Culver, 2013)

3.Negotiation (Trompenaars & Hampden-Turner, 1997)

While the universalist may consider the contract as the final word, the particularisttends to view it merely as a loose framework or an estimate.

Even after a contract is signed and agreed upon by all parties, Chinese businesspeoplemay continue to negotiate In these negotiations, the Chinese prioritize building strongrelationships with their business partners, with the actual deal-making often occurringtowards the end of the meeting.

Conversely, Americans dealing with Chinese counterparts may aim to close dealsquickly However, due to the Chinese approach to deal-making, Americans might makeconcessions they didn't initially intend to just to speed up the process Interestingly, thiscan work to the advantage of particularistic cultures.

4.Timing a business trip

In universalistic cultures personal relationship is often ignored and business tripsare typically planned with very little time between them, often scheduled one afteranother Negotiators do not devote much time to forging close bonds with theircounterparts and tend to get down to business without delay (Kowol & Szumieł, khôngngày tháng)

When a universalist businessperson, such as someone from North America,Britain, the Netherlands, Germany, or Scandinavia, visits a particularist culture, it'sadvisable to take more time than usual Particularists become suspicious if things arerushed, so it's essential to allocate at least twice the usual time required to establish acontractual agreement Building a closer relationship is crucial, and this process demandstime and patience.

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While this approach may seem time-consuming, for particularists, investing timein nurturing a close relationship with your partner ultimately saves you from futuretroubles If you're unwilling to invest time now, the relationship is unlikely to withstandchallenges down the road (Trompenaars & Hampden-Turner, 1997)

5.The role of head office

In Western countries with a strong universalist culture, the head office typicallyhas significant control over global marketing, production, and human resourcemanagement However, in countries with more particularist cultures, the head office'sinfluence often doesn't shape local operating practices Instead, various local groupsdevelop their own standards, which become the foundation of their unity and resistance tocentralized directives This creates distinct boundaries between the national subsidiaryand the head office, and deliberate differentiation is pursued.

Particularist groups prioritize relationships, particularly with their leaders.Generally, the more particularistic the culture, the stronger the commitment betweenemployers and employees Employers in such cultures aim to provide a wide range ofbenefits to employees, including security, financial rewards, social status, goodwill, andemotional support Relationships tend to be close and enduring, leading to low jobturnover and long-term commitments to the workforce Local leaders want all of thesebenefits to reflect positively on themselves rather than the foreign owner (Trompenaars& Hampden-Turner, 1997)

 Bhattacharyya (2010) links this specific cultural dimension to the levels ofpaperwork and bureaucracy in organisations According to Bhattacharyya (2010),the levels of organisational bureaucracy are usually greater in organisations withuniversalistic cultures compared to particularistic organisations (Bhattacharyya,2010)

In short, in universalist cultures, there is a tendency to centralize decision-makingand actions within a specific domain, while in particularistic cultures, the approach leansmore towards decentralization and tailoring work methods This pattern can also be

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