culture comparison and culture change case study of abb vietnam and abb singapore

TABLE OF CONTENT ACKNOWLEDEMENTS i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENT vi LIST OF TABLES ix LIST OF FIGURES x INTRODUCTION CHAPTER 1: LITERATURE REVIEW 1.1 Definitions 1.1.1 Culture 1.1.2 Organizational Culture 1.2 Cultural layers & cultural diversity 1.2.1 The out layer (Explicit Products/Artifacts) 1.2.2 The middle layer (Norms and Beliefs/Espoused Beliefs and Values) 10 1.2.3 The core (Basic Assumptions/Underlying Assumptions) 11 1.3 Sub-culture 15 1.4 The importance of organizational culture 15 1.4.1 Coordination 16 1.4.2 Integration 17 1.4.3 Motivation 18 1.4.4 How well can organizational culture its functions? 18 1.5 Culture analysis – OCAI method 19 1.5.1 General about culture analysis methods 19 vi 1.5.2 Advantages of OCAI method 24 1.5.3 Dimensions in OCAI 25 1.5.4 Questionnaire applied in OCAI 27 1.5.5 Scoring the OCAI 28 1.5.6 What can be found from OCAI result 28 1.6 Methodology applied in the thesis 37 1.6.1 OCAI method 37 1.6.2 Interview method 37 1.6.3 Other analysis methods 38 1.6.4 Focused points 38 CHAPTER 2: CULTURE ANALYSIS IN ABB PP DIVISIONS 39 2.1 Introduction about ABB Singapore and ABB Vietnam 39 2.1.1 Introduction about ABB Group 39 2.1.2 Introduction about ABB Vietnam (VNABB) and ABB Singapore (SGABB) 42 2.2 Organizational culture comparison between SGABB’s and VNABB’s PP Division 45 2.2.1 Different dominant cultures but same major culture types 45 2.2.2 The current dominant culture gains cultural congruence in both countries 48 2.2.3 Differences in expected dominant culture types 53 2.2.4 Less cultural congruence for the expected dominant cultures & the inevitable emergence of Clan and Adhocracy 54 2.2.5 2.3 Diversity in expectation of employee groups 58 Factors influencing organizational cultures in the two Divisions 60 2.3.1 The vital role of standardization in ABB‟s operation 60 2.3.2 Market situation and market orientation in ABB Group 62 vii 2.3.3 Asian culture – a strong factor supporting for Clan Culture 66 2.3.4 Adhocracy Culture – an answer to the dilemmas 66 2.3.5 Business nature & the major sub-groups 66 CHAPTER 3: RECOMMENDATIONS 68 3.1 The importance of defining culture profile 68 3.2 Culture incongruence requires leadership involvement 68 3.2.1 Leaders are to listen and respect the needs of employees 69 3.2.2 Vision the future culture to pursuit 69 3.2.3 Define the culture transformation process 70 3.3 Visioning the transformation 70 3.3.1 ABB Vietnam – PP Division 71 3.3.2 ABB Singapore – PP Division 75 3.4 Operational change for the cultural change 79 3.4.1 In ABB Vietnam – PP Division 79 3.4.2 In ABB Singapore – PP Division 83 3.5 International cooperation and global resource utilization 88 CONCLUSION 91 REFERENCE 93 APPENDIX 1: VARIOUS CATEGORIES USED TO DESCRIBE CULTURE 97 APPENDIX 2: ENVIRONMENTAL VARIABLES AFFECTING MANAGEMENT FUCTIONS 99 APPENDIX 3: DENISON ORGANIZATIONAL CULTURE SURVEY 100 APPENDIX 4: QUESTIONAIRE SAMPLE 101 APPENDIX 5: CULTURE PROFILE COMPARISION VIETNAM VS SINGAPORE 105 viii LIST OF TABLES TABLE 1-1: BONUS PERSPECTIVE IN INDIVIDUALISM AND COLLECTIVISM 13 TABLE 1-2: AMERICA VALUES AND POSSIBLE ALTERNATIVES 14 TABLE 1-3: COMPARISION BETWEEN OCAI METHOD AND OTHER METHODS 24 TABLE 1-4: EXAMPLE OF SCORING FOR CATEGORY DOMINANT CHARACTERISTIC 28 TABLE 1-5: SAMPLE SIZE IN THE TWO DIVISIONS 37 TABLE 2-1: ABB GROUP‟S KEY INFORMATION 39 TABLE 2-2: CHARACTERISTIC OF EACH EMPLOYEE GROUP 43 TABLE 2-3: DATA TABLE - VIETNAM PP DIVISION - PRESENT CULTURE AND PREFERED CULTURE THROUGH CATEGRIES 55 TABLE 2-4: DATA TABLE - SINGAPORE PP DIVISION - PRESENT CULTURE AND PREFERED CULTURE THROUGH CATEGRIES 57 TABLE2-5: COMPARISION BETWEEN SGABB PP DIVISION & VNABB 67 TABLE 3-1: VIETNAM PP DIVISION - EXPECTATION FOR MAJOR CHANGE 72 TABLE 3-2: SINGAPORE PP DIVISION - EXPECTATION FOR MAJOR CHANGE 76 TABLE 3-3: ACTION PLAN FOR VIETNAM PP DIVISION 81 TABLE 3-4: ACTION PLAN FOR SINGAPORE PP DIVISION 86 ix LIST OF FIGURES FIGURE 1-1: MODEL OF CULTURE – FONS TROMPENAARS FIGURE 1-2: LEVEL OF CULTURE - SCHEIN FIGURE 1-3: ICE-BERG MODEL 18 FIGURE 1-4: INDIVIDUALISM RANKING 21 FIGURE 1-5: THE COMPETING VALUES FRAMEWORK 26 FIGURE 1-6: THE COMPETING VALUES OF LEADERSHIP, EFFECTIVENESS, AND ORGANIZATIONAL THEORY 33 FIGURE 1-7: ERICSSON'S CULTURAL PROFILE 36 FIGURE 2-1: ABB STRUCTURE 41 FIGURE 2-2: PROPORTION OF EACH EMPLOYEE GROUP IN THE TWO PP DIVISIONS 44 FIGURE 2-3: NUMBER OF EMPLOYEES IN VNABB PP DIVISION AND SGABB PP DIVISION 45 FIGURE 2-4: VIETNAM PP DIVISION‟S CULTURE PROFILE 46 FIGURE 2-5: SINGAPORE PP DIVISION‟S CULTURE PROFILE 47 FIGURE 2-6: PRESENT ASSESSMENT THROUGH CATEGORIES IN VIETNAM PP DIVISION 48 FIGURE 2-7: PRESENT ASSESSMENT THROUGH CATEGORIES IN SINGAPORE PP DIVISION 49 FIGURE 2-8: SAMPLE DESCRIPTIVE ANALYSIS VIETNAM PP DIVISION 50 FIGURE 2-9: CURRENT ASSESSMENT OF EACH EMPOYEE GROUP 51 FIGURE 2-10: SAMPLE DESCRIPTIVE ANALYSIS SINGAPORE PP DIVISION 51 FIGURE 2-11: CURRENT ASSESSMENT OF EACH EMPOYEE GROUP 52 x FIGURE 2-12: VIETNAM PP DIVISION - PRESENT CULTURE AND PREFERED CULTURE THROUGH CATEGRIES 55 FIGURE2-13: ABB SINGAPORE PP DIVISION - PRESENT CULTURE AND PREFERED CULTURE THROUGH CATEGRIES 56 FIGURE 2-14: ABB VIETNAM PP DIVISION - PRESENT ASSESSMENT AND FUTURE EXPECTATION OF EMPLOYEE GROUPS 58 FIGURE 2-15: SINGAPORE PP DIVISION - PRESENT ASSESSMENT AND FUTURE EXPECTATION OF EMPLOYEE GROUPS 59 FIGURE 2-16: OVERVIEW OF 2011 – 2015 DIVISIONAL TARGETS 62 FIGURE 2-17: REVENUES AND OPERATIONAL EBITDA BY DIVISION 63 FIGURE 2-18: ABB‟S BUSINESSES BY DIVISION AND REGION 2011 63 FIGURE 2-19: ORDER GROWTH BY REGION 2010 VS 2011 64 FIGURE 2-20: GROWTH RATES ACROSS ALL DIVISIONS 65 FIGURE 3-1: VNABB PP DIVISION - MANAGEMENT APPROACH 71 FIGURE 3-2: SGABB PP DIVISION - MANAGEMENT APPROACH COMPARED WITH GENERAL APPROACH 75 xi INTRODUCTION Purpose The thesis focuses on the following points: - Base on Organizational Culture Assessment Instrument to find out the cultural similarities and differences in the two Divisions in ABB Vietnam and ABB Singapore in terms of dominant cultures, culture congruence, expected dominant culture and factors that drives the needs for culture change - Define predominant factors that should be taken into consideration for culture change so as to increase business performance - Give recommendation for cultural change including action plan for each Division The research scope There are two defined research scope dimensions in this thesis to distribute a solid analysis and practical recommendation - The factors to compare between the two Divisions are concentrated on six categories: (1) Dominant Characteristic, (2) Leadership Style, (3) Management of Employees, (4) Organizational Glue, (5) Strategy Emphases and (6) Criteria of Success - The cultural comparison units are ABB Singapore‟s and ABB Vietnam‟s Power Product Division Methodology - The thesis use both quantitative and qualitative analysis, mainly based on OCAI method - The information is collected from diverse sources: survey, interview, observation, secondary data… - Details are mentioned in 2.2 Applied method in the thesis Structure of the thesis Literature Review Culture analysis in ABB PP Divisions Recommendation Definitions of Culture and Organizational Culture Introduction about ABB Singapore & ABB Vietnam The importance of defining culture profile Cultural layer and cultural diversity Applied methods in the thesis As culture incongruence occurs, leadership involves Sub-culture Organizational Culture comparison Visioning the transformation The importance of Organizational Culture Factors influencing the organizational cultures Operational change for the culture change International cooperation and global resource utilization Culture analysis CHAPTER 1: LITERATURE REVIEW 1.1 Definitions 1.1.1 Culture Culture is a concept has had a long and checkered history and because of its broad meaning, it has been used by numerous ways The layman can use culture as a word to indicate sophistication, as when we say that someone is very “cultured.” Anthropologists use it for referring to the customs and rituals that societies develop over the course of their history In the last several decades it has been used by some organizational researchers and managers to refer to the climate and practices that organizations develop around their handling of people, or to the espoused values and credo of an organization In a common sense, culture is defined in the Cambridge Dictionary as “the way of life, especially the general customs and beliefs, of a particular group of people at a particular time”1 It can be interpreted from the above definition by the following points:  The way of life, general customs and belief: in that term, culture influences people‟s behaviors so deeply that hardly can a member who lives in this culture can be aware of that  Particular group of people: culture is always related to a group of people, not individual  Particular time: upon periods of times, culture haves different contents A further step to enlarge the concept of culture beyond “custom” and “belief” is given by Edward B.Tylor who stated culture is “complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society" There are critical points in the definition: Cambridge Online Dictionary, http://dictionary.cambridge.org/dictionary/british/culture_1 Truman State University, Invitation to Cultural Evolutionism, Founding Figures, Edward Tylor, http://www2.truman.edu/~rgraber/cultev/malthus.html  Complex whole: Culture is not a set of discrete things, it is a system  Capabilities and habits acquired: Culture includes of capabilities and habits which belong to a member of society  Member of society: Similar to the above definition, culture always attaches to a group of people, not an individual As the above definitions can show the wide connotation of culture, however, they just stop mainly at enumerating culture‟s elements without figuring out which is the culure‟s core impact Come to Geert Hosfstede‟s time, the concept of culture is generalized and given a solid understanding Geert Hosfstede3 is a well-know pioneer for his research of cross-cultural groups and organizations He has played a major role in developing a systematic framework for assessing and differentiating national cultures and organizational cultures According to his definition, “Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another Culture in this sense is a system of collectively held values.” Following are remarkable notes in his definitions:  Collective programming of the human mind: culture is mentioned as a mindset which is shared among a group of people It is like “programming” or unwritten rules whereby the members of this group have a common way of receiving and processing information  Distinguishes human group: Culture is different from each group to another group Culture itself is a tool to distinguish human groups And once again, culture is a concept attaching to a group of human, not an individual  System of collectively held values: Culture is not just a set of common things; it is a system of values which is collectively held for a period of time "Culture" is how we call these unwritten rules about how to be a good member of the group Culture provides moral standards about how to be an upstanding group member; it defines the group as a "moral circle".4 http://changingminds.org/explanations/culture/what_is_culture.htm http://www.geerthofstede.nl/ The Singaporean style of communication tends to be quite implicit It reflects the Confucian values of modesty, harmony and respect for others The concept of "face" is still very important with most Singaporeans People who display little emotion and have a calm and controlled style are more likely to be respected than those who are loud and direct The use of "no" and direct questions are to be avoided since this can cause loss of face for both parties The listener must be attuned to reading non-verbal signals, since a "yes, but" can mean "no" Silence is important in communication and used to convey a range of messages, including disagreement and displeasure It can also indicate that the listener is carefully considering what has just been said Conversely, talking all the time, without pauses, could be understood by Singaporeans to be boastful or insincere Facial expressions tend to be quite closed with no prolonged, direct eye contact There are many rules governing communication etiquette of the different ethnic groups, which need to be understood by foreigners in order not to cause offence unwittingly Spoken and written communication can be quite formal, regardless of the language used Different forms of address are used to reflect a person‟s rank or seniority Those higher in authority are generally addressed by their title and surname Christian names may be used for lower ranking employees The local patois "Singlish" (nominal English with elements of Chinese, Malay and Tamil) is a more explicit form of communication There is no grammar as such Unnecessary prepositions and pronouns are dropped and verb tenses are nonexistent The result may appear rude to native speakers of English, but Singlish is enjoyed by many Singaporeans as their own unique "brand" of language The Vietnamese Position 109 As part of a strong collectivist society, Vietnamese people are taught from an early age to value the group over the individual Vietnamese people find their identity in their families, their ethnic heritage, and their work They often operate with the goals of preserving harmony and protecting the face of the group Appealing to these allegiances will help to build relationships and foster a sense of trust Highlighting individual performance (either success or failure) can be embarrassing, as a person feels singled out If performance measures are needed, try to measure performance at the group level rather than individual performance, which might only divide or embarrass some people Consider the expatriate leading a team in Vietnam who decides to motivate employees by putting the output level of the top team members on a weekly chart outside his office Rather than motivating workers, he finds workers apologizing to their peers for making it onto this list, and finding ways to equalize their standing with other workers, in hopes of making it off the list the next week If the same manager posted a group performance chart with a reasonable goal to attain, this would provide workers with motivation to work together toward success Motivating workers by promising a lot of personal prosperity and moving up into leadership may prompt questions like "will I have to work longer hours" or "will I have to travel away from my family more frequently." This does not mean Vietnamese people are not willing to work harder, but be prepared to properly define expectations on what it will take to be successful Vietnamese people work well in teams and form close ties with one another, treating close workers like family Despite this group cohesion, decisions in this conservative country are still largely controlled by leaders and managers (typically male) However, by making sure everyone feels a sense of ownership for the outcome, it will foster more individual responsibility Be prepared to operate in groups for discussion and planning While this emphasis upon groups can sometimes lead to groupthink, which undermines speed and innovation, it can also lead to harmony and to group commitment Spending more time in meetings and in informal settings, lining up support and repeatedly focusing 110 on key expectations will be necessary Be clear on who is attending an important meeting from your side, as your Vietnamese counterparts will work hard to make sure there are an equal number of participants from their side (equal by rank as well) to achieve harmony The Singaporean Position In Singapore, there is no one unifying national identity – this has been the subject of much debate in the past years Society is multi-ethnic, with each race encouraged to respect its traditional Asian values However, at an individual level, most Singaporeans would identify more strongly towards the group The group, and in particular the family, plays a central role for all Asian ethnic groups The Chinese respect the Confucian teachings of harmony and ordered relationships The Malays teach “budi” : courtesy and respect (especially towards one‟s elders), peace and harmony in the family and in society There are differences among generations regarding the extent to which traditional values are upheld Among younger Singaporeans the attitude of “kiasu” (being pushy, afraid to lose), which is noticeable in crowded situations, may be more in evidence Meritocracy – being competitive and getting ahead, is acceptable in the pursuit of excellence Singapore would not be where it is today without a workforce which is driven to succeed What is not acceptable however, is a boastful attitude about individual achievement or possessions These are played down Modesty is important Singling out individuals for praise (or criticism) could cause loss of face, both individually and for the group Westerners who “blow their own trumpet” could be considered unprofessional, since it is expected that the company should be promoted rather than the individual Singapore children are brought up to honour and to have a strong allegiance to the group (whether family, school or neighbourhood) As adults they are generally considered very good team players who are cooperative and work hard for the good of the group A strong company loyalty is not uncommon 111 The Vietnamese Position Vietnamese people seemed to be less inclined to take risks, especially a personal risk that is contrary to the thoughts and feelings of the group They have a shortterm attitude toward money and success Many believe that business is a zero sum game, in which someone must win and someone must lose Business opportunities then become more transactional This means that success may be determined more by "what can I get out of this deal in the next few months" rather than "what are the long-term advantages of this arrangement." Larger corporations have a longer timetable for defining success, but at the individual level it is largely based upon "how will this benefit me today." For example, Vietnamese people will not hesitate to switch allegiances if a better price or opportunity can be found This is especially true in the job market, as Vietnamese people will quickly leave one company for a better opportunity somewhere else, even if they are close to their team members In fact, there is a strong likelihood that the persons leaving may persuade others to go with them This is further evidence that family and team ties are stronger than corporate ties or allegiances Corruption has historically been high in Vietnam, so there is a lack of trust in many aspects of the business culture Vietnamese business owners not trust foreign investors Vietnamese senior leaders not trust their own subordinates to manage situations properly (or ethically), and will often attend meetings in person to ensure everything goes as expected Corruption affects every level of society, and the government has increased efforts to stamp out corporate corruption But lingering suspicions and skepticism persist despite these reforms Given the closeness of families, nepotism is openly practiced since family members often share a greater sense of trust among themselves For this reason and others, the pace of business 112 environment is extremely slow and cautious, and forming relationships is a strong key to success In order to persuade Vietnamese entrepreneurs toward taking risks, you must spend a lot of time in face-to-face meetings, in both business and social situations Emphasize the immediate benefits of the enterprise, and start with opportunities that are smaller in scope where trust could be built up with a series of successes over time, rather than large scale proposals that will take a high level of upfront commitment The Singaporean Position Singaporeans are quite high risk-takers by Asian standards They are forward thinking and keen to accept change in the name of advancement The workforce is very well educated and adaptable to new technologies Singapore is already a leader in international finance and commerce in Southeast Asia and would also like to be seen as the high-tech hub Its long-term vision is to be a knowledge-based economy (Services already account for over 60% of GDP) Singapore is among the top 10 computer-literate nations of the world Changi Airport is one of the world‟s most advanced The MRT (Mass Rapid Transportation system) is modern, highly efficient and considered state-of-the-art The business culture is quite entrepreneurial, with ample venture capital available for new start-ups Government directives support creativity and enterprise in their efforts to encourage a “best business” environment At an individual level, the Asian mentality tends more toward conformism, displaying traditional values of respect for those higher in authority Individuals accept a high degree of governmental intervention in daily life Most citizens abide by the strict regulations imposed by the government controlling social behaviour (e.g regarding drugs, smoking, littering, chewing gum, jaywalking) Singapore would like to become a global media hub, but this conflicts with the censorship of its own media Government employees are not allowed to accept hospitality or gifts related to business transactions Singaporeans have generally been brought up to respect the group and preserve harmony, so they may have a tendency to be more 113 cautious Many will try to avoid doing anything which could have a negative impact on the group The Vietnamese Position Vietnamese people have a loose sense of time Time is cyclic, what goes around comes around Work that is not completed today will be completed tomorrow Patience is a necessity, as everything takes much longer to achieve than expected Vietnamese people are more laid back and relaxed, especially those in the rural and outlying areas They typically not feel a sense of urgency, especially when it comes to business deadlines There is no reason to stay late or come in on the weekend to finish something, because the work will still be there on Monday morning, or circumstances may change which will alter the deadline anyway So how does one operate in an environment where ancient customs meet modern demands? The first principle is harmony There will be very negative results if a Vietnamese person is put under pressure to adhere to a certain deadline and it causes them to lose face if they cannot meet the expectation, or if they must come to you for more time This kind of situation can be avoided by (1) giving the team plenty of time to meet expectations, (2) breaking the work up into smaller pieces with successive deadlines, (3) working with local managers and leaders who have more direct influence for the outcomes, and (4) dealing with time and other pressures privately (rather than humiliating someone publicly or on a call with their peers) Despite this loose sense of time in general, it is important to be on time when it comes to appointments This is a sign of respect, especially to senior people whose time is believed to be more valuable Being late will cause everyone to lose face In initial meetings, expect to spend a lot of time on small talk and dialogue and 114 attending many meetings (not just one) Rushing into tasks and individual responsibilities will not be successful A certain level of trust and understanding of context must happen first before individual assignments can be handled A lot of time may also be spent outside of work in social settings This time is not considered wasting time, but is integral to the process of building a lasting working relationship The Singaporean Position In Singapore there is a strong focus on efficiency, so time is of the essence Punctuality is very important It would be considered rude to be late for a business appointment Singaporeans however traditionally arrive late for celebrations or weddings, in order not to appear greedy They may even wait outside for more important guests to arrive before them, in order to show respect People are driven to excel in their occupation and are willing to put in long hours at work Some offices are open on a Saturday morning Annual leave is quite short by international standards (usually 14 days) Diligence and strong performance are valued and rewarded The working day is sometimes extended out of the office into the evening in a social setting To be seen to be busy is important, as indicated by the habitual greeting: “Are you busy?”, to which the expected reply is “Very busy” The fast pace of life is perhaps one reason why people are sometimes impatient e.g when waiting for public transport or queue jumping when waiting to buy tickets This attitude is called “kiasu” (a Hokkien word meaning wanting to win, or fear of losing) and is a tag unique to Singaporeans It is taken in good humour, as shown by fast food outlets which serve kiasu burgers! The Vietnamese Position 115 Vietnam continues to be a strongly hierarchical and paternalistic society A Vietnamese business is typically headed up by a man who will make most of the decisions Expatriate business people sometimes find it frustrating when Vietnamese workers cannot take even the simplest directions without hearing it directly from their boss Leadership is directly associated with seniority It is unusual to find a young person leading a team, as the team would find it difficult to show the manager respect Leaders and managers shoulder a great deal of responsibility as workers look up to them to make the important decisions and take the necessary risks There are many implications for doing business in Vietnam Understanding who is in charge, and who holds the keys to opportunity are critical If managing from afar, forge strong relationships with leaders on the ground in Vietnam, who can articulate corporate expectations in a way that will motivate workers If considering new opportunities in the region, ask open ended questions with your contacts in Vietnam to ascertain who controls the power Use questions like, "who traditionally makes decisions on matters such as these, who should I meet with and get to know, who should we present this opportunity to in order to ensure we are not wasting anyone's time?" Maintain a positive disposition when conducting business to put your Vietnamese colleagues at ease Given the corruption and abuses of the past, cynicism would be a natural reaction But given the political and social climate, negativity will make it difficult to meet the people who control the power Subordinate workers expect direction from their superiors and rarely question their instructions This is ingrained in the culture, especially the educational system This is a positive from a command and control perspective, but it is also unlikely that workers would say anything if there were a problem, to avoid embarrassing leaders Simple matters cannot be taken for granted, as relatively small issues initially can grow into big issues and can have disastrous consequences if not managed properly Do not wait to be told bad news, ask tough questions with trusted colleagues on the ground Be specific about what is needed and what is expected and ensure that your Vietnamese contacts understand the relevance of the questions Providing 116 additional context will help them to feel more comfortable, and to take ownership in managing to these expectations as a group The Singaporean Position Power is very much in the hands of a top few in Singapore, both in business and government There is strong government control over the economy This is achieved mainly through regulation Share-holding has been reduced in recent years, but some key industries are still state-controlled (telecommunications, power and water) The government provides economic direction by targeting specific industries for development and offering tax breaks Unions and the labour market are controlled by the government Strikes are not allowed The government reserves the right to intervene in trade relations and may play a role in major business deals Through the Monetary Authority of Singapore (MAS) the government acts as a central bank and regulates the financial market Many Singaporean companies tend to have a hierarchical structure with strong paternalistic leadership Those in authority would expect to be treated according to their seniority and rank Unspoken rules govern many aspects of daily business life, including how meetings are planned and conducted The order in which people are invited to a meeting, enter the room, are seated around the table and the order in which they speak should all reflect a person‟s position in the hierarchy Orders tend to be passed down the chain to the next level, rather than addressing a lower ranking individual directly The leader may not make the decisions, but he/she does generally have a caring role and can be involved in the social and personal matters of the employees The Vietnamese Position Vietnamese people tend to process information in a circular way When doing business in a high-context, circular reasoning environment, articulate your ideas 117 from many different angles Rather than a linear, syllogistic approach, you should appeal to the brain, to the heart, to the senses, to people's sense of what is right or wrong, to broader social ideals, to popular opinion, to common sense, etc In other words, make your appeal on a wider plane than purely financial or strategic Also, take more time by asking broad questions to understand the context of what is important in order to draw conclusions Allow these thoughts and ideas to unfold over time, if possible Thoughtful decision-making over longer periods of time are more comfortable for circular reasoning individuals Circular reasoning takes into account a multi-faceted array of factors in order to make decisions This type of reasoning takes longer to understand because it is so heavily dependent upon context Less emphasis is placed on personal accountability, and more focus on what is unknown or unpredictable Again, this leads to reasoning that takes more time, that is less certain or resolute, and that is more apt to change as new information and circumstances evolve over time Decision-making is done by consensus among the top leaders Even if one person disagrees, often a decision is postponed until more information can be gathered The level of information that is requested can sometimes be enormous, and may strain the resources of your organization in trying to pull together all of the requested information Vietnamese people are keen listeners and will be attentive to everything you say and present Be open to taking questions during a presentation And be prepared to take the discussion in a number of different directions as each person weighs in from their own perspective Western cultures have a tendency to steer meetings back into a linear track by "taking that topic offline" or trying to deal with it at a later date This will only slow down the process even further It is important to let the discussion unfold naturally, and to be open to a broad array of perspectives and issues during the discussion The Singaporean Position Singaporeans would generally prefer to understand the bigger picture, but they have a strong focus on task accomplishment and efficiency Meetings are planned in 118 advance, and once a schedule is set it will generally be followed Attention to detail is important Pre-meeting information may be sent in advance When making presentations, Singaporeans will expect the speaker to be very knowledgeable not just about the matter in hand, but also about the business and political context They may expect information on markets, competition, and general company information During a meeting, although efforts will be made to stick to the agenda, discussion can still be quite circular Singaporeans generally prefer to arrive at a consensus, which may not take the most direct route Some items may reappear for further discussion, although these may have been considered "closed" earlier There is a fairly high tolerance for interruptions Negotiations can be interrupted for side discussions with third parties involved, in order to gain their approval and not upset group harmony In addition to this, government involvement can cause the process to become more complex and time-consuming In general though, there will be a desire for rapid completion and implementation once decisions have been taken The Vietnamese Position Vietnamese people look for hard facts, and place a high value on information But individual feelings and responses (especially from senior members) are also treated as facts that must be taken into account in the decision-making process Facts are important in all cultures, but Vietnamese people differ on the interpretation of facts, and their subsequent importance Some will value feelings and saving face, others may value the financial and accounting conclusions The important thing is to have the discussion in which these value systems are debated Building trust, taking time to get to know someone, relating the importance of all parties involved, showing ethnic sensitivity, showing deference to senior team members, and having a view that focuses on short-term gains are all factors that are just as important as facts Facts can be manipulated and changed to suite a particular 119 situation anyway Therefore the broader context must always be taken into consideration The business boom, especially in the technology area has influenced more reasoning toward data and linear analysis, but the deeper culture still values traditional ways of reasoning that are more complex and layered Language, tone, and mannerisms are very important to convey meaning, even when working through a translator Use them carefully Relying on statistical tables and summary bullet points will not win over a Vietnamese audience In fact, brief and simplistic answers offered up by Westerners often irritate Vietnamese business people Typical Western business terms like "tangible assets, realized gains, fiscal quarter productivity, outsourcing, market differentiation, etc." not carry a lot of meaning in a high context culture with strict moral principles And it does not promote a positive atmosphere of understanding with a keen focus on relationships Use language that conveys grandeur and passion, rather than language that is mathematical or financial Instead of saying, "my company views Vietnam as an important market," you should choose a statement such as "our company is especially delighted to understand your needs better, and looks forward to building a relationship of trust that will have immediate value." The Singaporean Position Singaporeans tend to be very pragmatic and would generally support their ideas with relevant data and hard fact The pace of life in Singapore is fast There is a sense of urgency to deliver high-quality results and the workforce is driven to achieve economic success and to excel in business The more facts / linear thinking focus, may be a result of the stronger emphasis Singapore has placed on business and technology than on the arts There are a high number of Singaporeans in the fields of engineering, sciences and IT Tertiary education (including universities and polytechnic) specializes in these subjects 120 Customers in Singapore are discerning They want quality products and services and are often knowledgeable about the specifics – salespeople need to focus on the facts to make successful sales For decision-making, Singaporeans would generally want to make a thorough investigation of the background, in order not to miss any relevant information They tend to be interested in a high level of detail in order to match the high expectations of customers For meetings, thorough preparation is important and shows serious intent Visual aids and accompanying materials are generally of a high standard Many Singaporeans are highly computer literate and may measure others by their own standards The Vietnamese Position To hear a Vietnamese person explain their perspective or beliefs, you will soon begin to hear complex thought processes set inside a broad context of understanding Because Vietnam is a high context society, communications cannot be simply reduced to the basics Summaries, appealing to the bottom line, or bullet points in a presentation will rarely be effective Reducing an argument to an overly simplistic conclusion will only be viewed as not being thorough and not taking the time to understand the true picture of what is going on When presenting, make sure to translate materials into Vietnamese, this not only demonstrates respect, but will ensure that your information is more easily understood and digested It is also a sign that you understand the complexities or a situation, and are not trying to minimize or simplify ideas Expect meetings to go off topic and to divert to a wide range seemingly unrelated matters These off-topic discussions may go on for quite a while and their outcome cannot be predicted or controlled Let these conversations evolve naturally There may be a lot of silence as Vietnamese people ponder all of the ramifications and 121 meanings to the discussion Don't try to rush things, force issues, or demand decisions This will only result in poor decision-making that is not fully owned at the local level, especially by those who have the power Tolerance and understanding is important to project a sense of openness, and a willingness to understand the deeper issues Problems or barriers must be studied and considered endlessly, and the answers may not come for a while But most Vietnamese people are willing to wait to let the process unfold so the true answer can emerge naturally, without forcing it or applying unnecessary pressures Criticizing the government, business owners, or leaders is considered an imbalance to harmony, where some people may lose face Maintaining a positive attitude, allowing time for much discussion and debate, cautioning those who want to push for quicker resolution, asking open ended questions, being patient, speaking openly and honestly about your own thoughts and motivations, and appealing to those in power are necessary skills to manage the complexities of thought in this culture Showing deference to senior leaders and seeking their counsel first will also reduce the distractions and tangential issues that could derail negotiations or discussions The Singaporean Position In Singapore, relationships are important for securing business Feelings can play a role in decision-making, just as much as hard fact Communication is usually quite implicit, so the general tendency is towards a more complex style of reasoning Tactics and strategy can be based on many considerations e.g for how long the partner has been known, how he is connected and whether there is a relationship of trust If the relationship has been only short-term, then a win – lose outcome will be aimed for If the relationship is one of trust and reciprocity, then a win – win situation is more likely to be achieved Asian culture traditionally considers moral and ethical principles more important than legal considerations When collecting data for a project or decision-making, the approach is more holistic Singaporeans would generally seek first to understand the 122 context and present the overall picture, before breaking the problem down into “bite-sized” pieces In presentations, this may mean that a considerable amount of detail is covered, with the main points being saved until the conclusion When the conclusion is reached, it may not be entirely clear how this was achieved Decisions come from the top, and authority is not questioned 123 [...]... insight about its subcultures as well as their attribution to the organization‟s culture 1.4 The importance of organizational culture Organizational culture is an enigma which has held the attention of practitioners and researchers alike worldwide Extensive research and publications focus on a large variety of links between organizational culture on one hand and organizational outcomes and functions on... integration and external adaptation  Not only point out the current culture profile but also focus on culture change by defining preferred culture in an organization  Focus on organizational culture  People become aware of the current and of the preferred culture “Where are we now and where do we want to or have to go?” This can generate momentum for Kim S.Cameron & Robert E.Quinn, “Diagnosing and Changing... related 22 to a number of other „hard‟ characteristics of the organisations These lead to conclusions about how organisational cultures can be and cannot be managed In the case of international business, it means handling both national and organisational culture differences at the same time Hofstede argued that „organisational cultures are somewhat manageable while national cultures are given facts... manifest the strong impact of culture and organizational culture This thesis used the definition of Edgar H.Schein for Organizational Culture: The culture of a group can now be defined as a pattern of shared basic assumptions that was learned by a group as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught... technology and products; its artistic creations; its style, as embodied in clothing, manners of address, emotional displays, and myths and stories told about the organization; its published lists of values; its observable rituals and ceremonies; and so on The “climate” of the group is an artifact of the deeper cultural levels, as is the visible behavior of its members Artifacts also include, for purposes of. .. OCAI METHOD AND OTHER METHODS OCAI Method Hofstede’s method Denison’s method  Focus on organizational culture  Focus on culture  The first intervention to initiate change  Not mentioned  To explain how organisations deal with seemingly contradictory or paradoxical goals and demands  Focus on defining only the current culture but not preferred culture  Point out the current culture profile national... organizations, and occupations Based on that concept, many researcher have been focusing on culture within an organization, hence the concept of “organizational culture has been established For example, H.Schwartz and S.Davis stated culture as “a pattern of beliefs and expectations shared by organization‟s members These beliefs and expectations produce norms that powerfully shape the behaviour of individuals and. .. to replace the previously existing vertical command and control systems Martinez and Jarillo (1989, p 489) claim that informal and social modes of control emerge in multinational companies as a necessary result to counter international dispersion of organizational units Organizational culture represents a crucial means of the coordination and control of multinational companies (Jaeger 1983), in addition... development of corporate sub-cultures In contrast to these centrifugal forces, organizational culture can act as a “social glue” (Albert and Silvermann 1984, p 13, Smith and Simmons 1983, p 377) to keep the corporation together Organizational culture reminds employees of corporate higher goals, of the big picture In view of the tendency to delegate, decentralize, internationalize, empower, and to rely... organizational culture represents will assume an even more crucial role in the future 14 Wolfgang Amann, Dissertation on “The impact of internationalization on organizational culture a comparative study of international US and German companies”, University of St.Gallen, German, 2003, pg.40 17 1.4.3 Motivation A strong system of clear values can endow employees with an appreciation of the value of their work ... Vietnam (VNABB) and ABB Singapore (SGABB) 42 2.2 Organizational culture comparison between SGABB’s and VNABB’s PP Division 45 2.2.1 Different dominant cultures but... Structure of the thesis Literature Review Culture analysis in ABB PP Divisions Recommendation Definitions of Culture and Organizational Culture Introduction about ABB Singapore & ABB Vietnam The... Profit Centers which is the basis business unit in ABB, in charge for profit 41 2.1.2 Introduction about ABB Vietnam (VNABB) and ABB Singapore (SGABB) 2.1.2.1 Establishment Established in Vietnam