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Session II (IHRM) PDF

The document discusses cultural dimensions as defined by Geert Hofstede, which impact HR functions in a global context. It outlines six key dimensions: Power Distance Index, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance Index, Long-term vs. Short-term Orientation, and Indulgence vs. Restraint, providing examples of how different cultures embody these traits. The document emphasizes the importance of understanding these cultural differences for effective international business and HR practices.

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0% found this document useful (0 votes)
15 views52 pages

Session II (IHRM) PDF

The document discusses cultural dimensions as defined by Geert Hofstede, which impact HR functions in a global context. It outlines six key dimensions: Power Distance Index, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance Index, Long-term vs. Short-term Orientation, and Indulgence vs. Restraint, providing examples of how different cultures embody these traits. The document emphasizes the importance of understanding these cultural differences for effective international business and HR practices.

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h3034
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The Cultural Dimensions’

Culture and HR functions in a Global Context

Dr. Imran Ahmed Khan


Culture
In the words of anthropologist E.B. Tylor -

“Culture is that complex whole which includes knowledge, belief, art,


morals, laws, custom and any other capabilities and habits acquired by man
as a member of society.“

Alternatively, in a contemporary variant,

“Culture is defined as a social domain that emphasizes the practices,


discourses, and material expressions, which over time express the
continuities and discontinuities of the social meaning of a life held in
common."
…….
• Culture is "the way of life, especially the general customs and beliefs, of a particular
group at a particular time.”

• Culture is the characteristics and knowledge of a particular group, defined by everything


from language, religion, cuisine, social habits, music, and arts.
Culture
Geert Hofstede’s Cultural Dimensions Theory
Geert Hofstede is perhaps the best-known sociologist of culture and
anthropologist in the context of applications for understanding
international business
Dimensions of National Cultures
Hofstede developed a framework to analyse how
cultural differences impact workplace behaviours and
interactions. He identified six key dimensions that
help in understanding national and organizational
cultures:

1. Power Distance Index (PDI)


2. Individualism vs. Collectivism (IDV)
3. Uncertainty Avoidance Index (UAI)
4. Masculinity vs. Femininity (MAS)
5. Long-term orientation vs. Short-term
Orientation (LTO)
6. Indulgence vs. Restraint (IND)
Power Distance Index (PDI):
This dimension measures the extent to which less powerful members
of a society accept and expect unequal power distribution.

• High PDI cultures (e.g., India, Mexico): Hierarchies are respected,


and authority is seldom questioned.

• Low PDI cultures (e.g., Denmark, Sweden): Emphasis on equality,


and subordinates feel comfortable challenging superiors.
Individualism vs. Collectivism (IDV):
Focuses on whether people prefer to act as individuals or as part of a
group.

• Individualistic cultures (e.g., the US, UK): Value personal achievement


and independence.

• Collectivistic cultures (e.g., Japan, China): Prioritize group harmony


and loyalty.
Masculinity vs. Femininity (MAS):
Examines the preference for traditionally “masculine” traits
(achievement, competitiveness) versus “feminine” traits (cooperation,
care).

• Masculine cultures (e.g., Japan, Germany): Driven by success and


competition.

• Feminine cultures (e.g., Sweden, Netherlands): Value work-life


balance and relationships.
Uncertainty Avoidance Index (UAI):
Measures how comfortable a culture is with ambiguity and uncertainty.
• Culture tends to have a strong preference for avoiding uncertainty and
ambiguity. They emphasize structured environments, clear rules, and
predictability to reduce anxiety about the unknown

• High UAI cultures (e.g., Greece, Portugal): Prefer clear rules,


structure, and predictability.

• Low UAI cultures (e.g., Singapore, Jamaica): More flexible and open
to change or risks.
Long-Term vs. Short-Term Orientation (LTO):
Assesses whether a culture focuses on future rewards (long-term) or
values traditions and immediate results (short-term).

• Long-term oriented cultures (e.g., China, South Korea): Value


perseverance and pragmatism.

• Short-term oriented cultures (e.g., US, Philippines): Focus on quick


results and maintaining traditions.
Indulgence vs. Restraint (IVR):
Looks at the degree of freedom in fulfilling human desires.

• Indulgent cultures (e.g., US, Australia): Embrace fun, leisure, and


gratification.

• Restrained cultures (e.g., Russia, Egypt): Emphasize strict social


norms and self-discipline.
• 1. Power Distance is defined as the extent to which the less powerful
members of the institution and organization within a country expect and
accept that power is distributed unequally
• 2. Individualism is the degree of interdependence a society maintains
among its members
• 3. Masculinity defines that the society is driven by competition,
achievement and success
• 4. Uncertainty avoidance is the extent to which the members of a
culture feel threatened by ambiguous or unknown situation and have
created beliefs and institutions that try to avoid these.
• 5. Long term orientation describes how every society has to maintain
some links with its own past while dealing with the challenges of the
present and future.
• 6. Indulgence is the extent to which people try to control their desires
and impulses.
Traits of Power Distance
High Power Distance Low Power Distance
Social norms • Those in power have privileges • All have equal rights
• Powerful people try to look as powerful as • Powerful people try to look less powerful than they
possible are
• Inequality the norm; everyone has specific • Inequality should be minimized; no set hierarchy
place • Respect for individuality
• Respect for authority
Politics and Military / autocratic / oligarchic government Government based on majority
economics Power struggle Power Sharing
Little discussion / violence common Much discussion, little struggle

Work All organizational pyramids Short organizational pyramids


Wide salary range from top to bottom Narrow range
Subordinates expect to be told short organizational pyramids

Family and Students dependent on teachers Teachers treat students as equals


school Parents side with teachers to maintain order Parents may side with students against teachers
Students treat teachers with respect – even out of students treat teachers as equals
Traits of Masculinity / Femininity
High Masculine Low Masculine (Feminine)
Social norms Ego oriented Relationship oriented
Money and things are important Quality of life and people are important
Live in order to work work in order to live

Politics and Economic growth high priority Environment protection high priority
economics Conflict solved through force Conflict solved through negotiation

Religion Most important in life Less important in life


Only men can be priests Both men and women as priests
Work Larger gender wage gap Smaller gender wage gap
Fewer women in management More women in management
Preference for higher pay Preference for fewer working hours

Family and school traditional family structure Flexible family structure


girls cry, boys don’t; boys fight, girls don’t both boys and girls cry; neither fight
failing is a disaster ailing a minor accident
Differences between cultures on the values dimensions
• Power distance index shows very high scores for Latin and Asian countries, African
areas and the Arab world. On the other hand, Anglo and Germanic countries have a
lower power distance (only 11 for Austria and 18 for Denmark).
• For example, the United States has a 40 on the cultural scale of Hofstede's
analysis. Compared to Guatemala where the power distance is very high (95) and
Israel where it is very low (13), the United States is in the middle.
• In Europe power distance tends to be lower in northern countries and higher in
southern and eastern parts: for example, 68 in Poland and 57 for Spain vs. 31 for
Sweden and 35 for the United Kingdom.
• Regarding the individualism index, there is a clear gap between Western countries
on one hand, and Eastern countries on the other. North America and Europe can be
considered as individualistic with relatively high scores: for example, 80 for Canada
and Hungary. In contrast, Asia, Africa and Latin America have strongly collectivist
values: Colombia scores only 13 points on the IDV scale and Indonesia 14. The
greatest contrast can be drawn comparing two extreme countries on this dimension:
6 points for Guatemala vs. 91 points for the United States. Japan and the Arab world
have middle values on this dimension.

……
• Uncertainty avoidance scores are the highest in Latin American countries, Southern and
Eastern Europe countries including German speaking countries, and Japan. They are lower
for Anglo, Nordic, and Chinese culture countries. For example, Germany has a high UAI
(65) and Belgium even more (94) compared to Sweden (29) or Denmark (23) despite their
geographic proximity. However, few countries have very low UAI.
• Masculinity is extremely low in Nordic countries: Norway scores 8 and Sweden only 5. In
contrast, Masculinity is very high in Japan (95), and in European countries like Hungary,
Austria and Switzerland influenced by German culture. In the Anglo world, masculinity
scores are relatively high with 66 for the United Kingdom for example. Latin countries
present contrasting scores: for example Venezuela has a 73-point score whereas Chile's is
only 28.
• High long term orientation scores are typically found in East Asia, with China having 118,
Hong Kong 96 and Japan 88. They are moderate in Eastern and Western Europe, and low
in the Anglo countries, the Muslim world, Africa and in Latin America. However, there are
less data about this dimension.
• There are even less data about the sixth dimension. Indulgence scores are highest in
Latin America, parts of Africa, the Anglo world and Nordic Europe; restraint is mostly
found in East Asia, Eastern Europe and the Muslim world.
Cultural Difference (Power Distance)
CHINA JAPAN
• A society in which inequalities between persons • Japan’s high Power Distance Index (PDI) is rooted in its cultural,
are considered acceptable. historical, and societal norms.
• Confucian Philosophy – Culture emphasizes • Historical Context and Hierarchical Systems
respect for hierarchy, elders, and authority. • Feudal History: Japan’s history is deeply influenced by the
Emphasis on Harmony: Hierarchy is seen as a feudal system (samurai, lords, and peasants), where loyalty and
means to maintain harmony. obedience to superiors were paramount. Confucian Influence:
Although not exclusively Confucian, Japanese culture has
• Historical Governance Systems absorbed Confucian values, emphasizing respect for authority,
• Imperial Rule: For centuries, China was elders, and the established order.
governed by emperors with absolute power, • Workplace and Organizational Culture
reinforcing a top-down hierarchical structure.
This historical precedent has shaped • Seniority-based Systems: Traditional Japanese organizations
attitudes toward authority and power value age and tenure, where senior employees often hold
distribution. positions of authority and are shown deference.
• Centralized Control: Even in modern • Vertical Decision-Making: Japanese workplaces typically have
governance, the Chinese system reflects a a top-down decision-making process. Subordinates rely on
strong central authority, which parallels the superiors for directives, reflecting a higher acceptance of
hierarchical structures in organizations and unequal power distribution.
society. • Societal Norms and Education (Respect for Authority and
• Societal Norms and Family Structure Elders, Group-Oriented Behavior)
• Filial piety (respect for parents and elders) • Cultural Values
• Collectivist culture prioritizes group harmony • Emphasis on Harmony (Wa) and Face-saving - Importance
over individual expression. of Tatemae (public behaviour) over Honne (private thoughts).
Individualism vs. China Japan
Collectivism
Degree of Collectivism Strongly collectivist Collectivist, but with some individualistic traits in
modern settings.
Group Identity Identity is tied to the family, community, or Identity is tied to the organization and broader societal
work unit. groups.
Decision-Making Decisions are group-oriented Decisions are group-oriented
Importance of Relationships Relationships are central Relationships are important, but they are guided by a
sense of duty and obligation to the group.
Expression of Individuality Limited: People prioritize group norms and Moderate: People conform to group expectations but
avoid standing out. may express individuality subtly in creative or non-
disruptive ways.
Conflict Resolution Avoids conflict to maintain harmony within Avoids conflict to preserve group harmony, with an
the group; often indirect communication. emphasis on indirect and non-confrontational
methods.
Workplace Culture Loyalty to the team or company is highly Loyalty to the company is emphasized, but there is
valued; collective success is prioritized. also a focus on personal diligence and self-
improvement for group benefit.
Motivation Motivated by collective goals and benefits for Motivated by achieving harmony and fulfilling group
the family or group. expectations while balancing personal effort.
Role of Hierarchy in Groups Hierarchy is deeply respected and integral to Hierarchy is respected but often balanced with a
group cohesion. collective decision-making process.
Cultural Difference (MASCULINITY)
CHINA JAPAN
• China is a Masculine society, with a
strong focus on success. The need to • Japan is one of the world's most Masculine
achieve success is reflected by the societies. However, we don't observe the
fact that many Chinese will put work forceful and competitive individual behaviours
ahead of family and pleasure. that we identify with Masculine culture when
combined with their moderate collectivism.
• People who supply services (such as • There is fierce competition among the groups.
hairdressers) will work until quite late Employees in corporate Japan are most
at night. motivated when they are part of a winning
• Leisure time isn't as crucial as it once team versus their competition.
was. In order to get better work and • The striving for excellence and perfection in
compensation in the city, migrant material production, material services, and
farm workers will leave their families presentation in all aspects of life is an
behind in faraway areas. expression of Masculinity in Japan.
• Another example is that Chinese • Japanese workaholism is a well-known
students place a high value on their manifestation of their Masculinity. With their
exam scores and rankings, as this is Masculine standard of hard and long working
the primary criterion for determining hours, it is still difficult for women in Japan to
whether or not they will succeed. advance up the corporate ladder.
Cultural Difference (UNCERTAINITY AVOIDANCE)
CHINA JAPAN
• China has a low Uncertainty Avoidance score.
• Japan is one of the most risk-averse countries in the
• Though truth is relative, there is concern for planet. This is sometimes linked to Japan's constant
Truth with a capital T in the immediate social threat of natural disasters, such as earthquakes,
circles, and rules (though not necessarily tsunamis, typhoons, and volcanic eruptions.
laws) abound.
• Under these conditions, the Japanese learned to
• Regardless, obedience to laws and standards anticipate any unforeseen occurrences. This applies
can be flexible to fit the occasion, and not only to the emergency plan and safeguards for
pragmatism is a reality. natural disasters, but to all elements of society.
• The Chinese are at ease with ambiguity; the • Life is highly ritualised and full with rites from birth to
Chinese language is full of confusing grave.
connotations that Westerners may find
difficult to comprehend. • In corporate Japan, feasibility assessments take a lot
of time and effort, and all risk considerations must be
• Chinese people are adaptive and enterprising. dealt out before any project can begin.
At the time of writing, the bulk of Chinese
enterprises (70 percent to 80 percent) are • One of the reasons why change is so difficult is
small to medium-sized and family-owned. because of this high demand for Uncertainty
Avoidance.
Cultural Difference (LONG TERM ORIENTATION)
CHINA JAPAN
• China's culture is quite pragmatic. • Japan is one of the most Long-Term Oriented
• People in pragmatic civilizations cultures on the planet.
believe that truth is highly • The Japanese regard their lives as a brief chapter
dependent on situation, context, in humanity's vast history.
and time. • From this perspective, the Japanese are hardly
strangers to fatalism. People are guided in their
• They demonstrate an ability to life by virtues and good models.
easily adapt traditions to changing • Long-term orientation is evident in corporate
circumstances, a strong proclivity Japan, as seen by the constant high rate of
to save and invest, thriftiness, and investment in R&D, higher own capital rate, and
tenacity in reaching goals. a focus on sustained growth of market share
rather than quarterly profit, among other things.
• The premise is that businesses aren't in business
to generate money for their shareholders every
quarter, but to serve their stakeholders and
society as a whole for many generations to
come.
Cultural Difference (INDULGENCE)
CHINA JAPAN
• China is a highly regulated society.
• Restraint is demonstrated to be a culture
• Cynicism and pessimism are in Japan.
common in societies with a low
score on this area. • Cynicism and pessimism are common in
societies with a low score on this area.
• Restrained societies place less
importance on leisure time and • In addition, unlike Indulgent civilizations,
exercise greater control over the Restrained societies place less
fulfilment of their needs. importance on leisure time and exercise
greater control over the fulfilment of
• People with this viewpoint believe their needs.
that their behaviours are
constrained by social norms, and • People with this viewpoint believe that
that indulging themselves is their behaviours are constrained by social
unethical. norms, and that indulging themselves is
unethical.
Edward T. Hall's Cross-Cultural
Theory
• Edward Hall's theory tells about important
cultural factors or dimensions.
They are:
i. CONTEXT,
ii. TIME,
iii. SPACE AND
iv. INFORMATION.
Context
High-context Cultures:
• Communication relies heavily on non-verbal cues, shared experiences, and implied
meanings. Relationships, trust, and long-term understanding are critical.
• There are many contextual elements that should be taken into account and help
people to understand the rules. Many things are not said directly, much is taken for
granted.
• Examples of high-context cultures are the cultures of France, Spain, Italy, Middle
East, Japan, China, Arab countries.
Low-context Cultures
• Communication is direct, explicit, and focused on clear messages.
• Rules and formal agreements are prioritized over relationships.
• cultures ideas are expected to be outspoken very straightforward, most of the
things require explanation.
• Written instructions, contracts and documents have more value in negotiations.
• Examples of countries with low-context cultures are Germany, Switzerland, USA,
Scandinavia. (Denmark, Norway, Sweden, Finland, Iceland, Faroe Islands)
Context
High-context culture Low-context culture
Factor
Many covert and implicit messages, with use of Many overt and explicit messages that are simple
Overtness of Messages (Openness) metaphor and reading between the lines. and clear.

Locus of control and attribution for Inner locus of control and personal acceptance for Outer locus of control and blame of others for
failure failure failure
Much non-verbal communication More focus on verbal communication than body
Use of non-verbal communication
language
Expression of reaction Reserved, inward reactions Visible, external, outward reaction
Strong distinction between in-group and out-group. Flexible and open grouping patterns, changing as
Cohesion and separation of groups Strong sense of family. needed
Strong people bonds with affiliation to family and Fragile bonds between people with little sense of
People bonds
community loyalty.
High commitment to long-term relationships. Low commitment to relationship. Task more
Level of commitment to relationships Relationship more important than task. important than relationships.

Time is open and flexible. Time is highly organized.


Flexibility of time
Process is more important than product Product is more important than process
Monochronic vs. Polychronic Cultures
This dimension explores how cultures perceive and manage time.
• Monochronic Cultures:
• Time is linear, and schedules are rigidly followed.
• People prefer doing one task at a time, valuing punctuality and deadlines.
• Examples: United States, UK, Germany.
• Polychronic Cultures:
• Time is flexible, and multitasking is common.
• Relationships take precedence over strict schedules.
• Examples: India, Mexico, and Arab countries.
Time
Monochronous Cultures
• Usually do one thing at a time.
• Careful planning and scheduling is often present.
• Have difficulties with starting something new, when they still have not
finished another activity.
• Germany, USA, Scandinavian countries
Polychronous Cultures
• Human interaction is valued over time and material things.
• Being punctual is not that important in these cultures.
• People pay more attention to human relations and do not mind doing
several things at the same time.
• Latin America, Middle East, Russia.
Factor
. Monochronic Action Polychronic action

Actions Do one thing at a time Do many things at once

Focus Concentrate on the job at hand Are easily distracted

Think about when things must be


Attention to time Think about what will be achieved
achieved

Priority Put the job first Put relationships first

Borrow and lend things often and


Respect for property Seldom borrow or lend things
easily

Base promptness relationship


Timeliness Emphasize promptness
factors
Proxemics (Use of Space/ Personal space)
Hall was the first scientist, who started to categorize cultures by their
attitude to personal space. He studied how different cultures use and
perceive physical space in communication.

In cultures with low territoriality Culture


• People have less ownership of space and boundaries are less important to
them.
• They are ready to share territory with little thought.
In high territoriality cultures
• People tend to show more concern for ownership.
• They seek to mark up the territory in their possession.
•Intimate Space: For close family and friends.
•Personal Space: For acquaintances or informal interactions.
•Social Space: For formal or professional interactions.
•Public Space: For large groups or public speaking.

Cultural differences:
•In low-density cultures (e.g., US, Northern Europe), people prefer more
personal space.
•In high-density cultures (e.g., Latin America, Middle East), closer physical
proximity is more acceptable.
Space (Personal)
Body language sometimes speaks louder than words, and often offends before
anything is said.

In ………..when someone is too close, encroaching on what we feel is our personal


space.

Categorization of cultures by their attitude to personal space.

Proxemics — and it can be defined as how personal space is


maintained as a function of one’s culture.
.

• In Tokyo, Seoul, Rio de Janeiro, and other cities, subways have special
cars that are to be used only by women to avoid violations of their
personal or intimate space by men.

• In the Middle East, social distance is closer than it is in the United


States, so as you back up, your conversational partner may attempt to
close the gap once again.
Examples:
1. Personal Space in Public Areas
• Western Cultures:
• Individuals often maintain considerable personal space in public, such as in queues or
on public transport.
• Standing too close can feel intrusive or disrespectful.

• Asian Cultures:
• In densely populated countries like Japan or India, personal space in public areas is often
minimal, and physical closeness is more accepted due to necessity.

• Epic Example: In Japan, trains during rush hour feature "pushers" (oshiya) to
pack people tightly, a stark contrast to Westerners' preference for physical
distance even in crowded spaces.
2. Greetings and Physical Contact

• Western Cultures:
• Greetings often involve physical touch, such as handshakes, hugs, or
cheek kisses, especially in European cultures.

• Asian Cultures:
• Many Asian cultures prefer non-contact greetings, such as bowing (Japan,
Korea) or the namaste gesture (India). Physical touch, especially with
strangers, may feel invasive.

• Epic Example: A Western businessperson might go for a handshake, while


their Japanese counterpart bows, creating a moment of cultural mismatch.
3. Social Distance in Conversations

• Western Cultures:
• People tend to maintain a larger conversational distance (about 1-2 feet).
• Standing too close may be perceived as aggressive or overly intimate.

• Asian Cultures:
• The conversational distance is often smaller, especially in countries like
China or Korea, where closeness signifies trust and connection.

• Epic Example: A Western expatriate in China might feel uncomfortable when


a colleague leans in to talk closely during a casual conversation.
4. Respect for Hierarchy and Space

• Western Cultures:
• Hierarchy exists but is less visually emphasized through spatial
arrangements. Open office plans and informal seating are common.

• Asian Cultures:
• Proxemics often reflect respect for hierarchy, such as sitting arrangements
in meetings or dining. Senior individuals may occupy positions of honor.

• Epic Example: In a business meeting in South Korea, seating is carefully


arranged based on rank, which might confuse a Western colleague
accustomed to informal settings.
5. Eye Contact and Physical Closeness

• Western Cultures:
• Direct eye contact is generally seen as a sign of confidence and sincerity.
• People balance eye contact with physical distance to avoid discomfort.

• Asian Cultures:
• In some Asian countries, prolonged eye contact can be seen as
confrontational or disrespectful, particularly with authority figures.
Proximity may vary by situation.

• Epic Example: A Western teacher might expect students to make eye contact
during discussions, while Asian students, like those in Thailand, might avoid it
to show respect, preferring a slight physical bow instead.
Information
Information and the ways it is treated in cultures is the fourth dimension described by Hall.
• Fast vs. Slow Messages and Information Flow
Hall also explored how cultures transmit information and the pace at which messages are
exchanged:

Fast-Message Cultures:
• Prefer quick, efficient communication
• Cultures with fast flow of information think that the more quickly the information is spread, the better it
is for all.
• (e.g., Western cultures).
Slow-Message Cultures:
• Value depth, reflection, and context in communication Cultures with slow flow of information plan
information carefully and structure it.
• They would tend to portion information, not to give more than absolutely necessary.
• (e.g., Asian cultures).

• The dimensions defined by Edward T. Hall were the beginning of the systematic analysis and
classification of the “culture clusters”.
Criticism Towards the Theory
It could be said that the theory is guilty of stereotyping and
generalizing.

Also, the theory does not identify people as individuals.


According to the theory, one person = culture.

People are different.


.
.
.
Relationship between Employees
• Family: diffuse relationship to organic whole to which one is bonded
• Eiffel Tower: specific role in mechanical system of required
interactions
• Guided Missile: specific tasks in cybernetic system targeted upon
shared objectives
• Incubator: diffuse spontaneous relationships growing out of shared
creative processes
Attitude to Authority
• Family: status is ascribed to parent figures who are close and all
powerful
• Eiffel Tower: status is ascribed to superior roles who are distant yet
powerful
• Guided Missile: status is achieved by project group members who
contribute to the targeted goal
• Incubator: status is achieved by individuals exemplifying creativity &
growth
Ways of Thinking and learning
• Family: intuitive, holistic, lateral and error correcting
• Eiffel Tower: logical, analytical, vertical and rationally efficient
• Guided Missile: problem centred, professional, practical, cross
disciplinary
• Incubator: process oriented, creative, ad-hoc, inspirational
Attitudes to People
• Family: as family members
• Eiffel Tower: human resources
• Guided Missile: specialists and experts
• Incubators: co-creators
Managing change
• Family: “Father” changes course
• Eiffel Tower: change rules and procedures
• Guided Missile: shift aim as target moves
• Incubator: improvise and attune
.
.

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