Decision making differs across cultures
Decision-making is a mental activity which is an integral part
of planning and action taking in a variety of contexts and at a
vast range of levels, including, but not limited to, budget
planning, education planning, policy making, and climbing the
career ladder. People all over the world engage in these
activities. The underlying 'cross-cultural differences in
decision-making can be a great contributing factor to efficiency in
cross-cultural communications, negotiations, and conflict
resolution.
There will always be variations on cultural stereotypes, but
here are a few general examples of decision making style around the
world.
- The USA is a culture of very flat management structures – until
it comes to decision making. The culture is egalitarian in that
individuals are free to challenge authority, but often surprisingly
top-down in that the priority is usually speed and to get things
moving along, a manager may make a snap decision. Once this has
been made, it won’t be questioned. This obsession with speed can be
the downfall of Americans doing business with other cultures, where
decision making can take a long time and trying to rush the other
side puts you in a position of weakness.
- German companies tend to have steeper hierarchies. In general,
the boss in the workplace is deferred to and there is a degree of
formality. Yet German managers usually include their co-workers and
subordinates in the decision making process, where the input of
technical experts is valued. Structure, process and productivity
are all important drivers in German decision making. Because German
culture is individualistic, managers are prepared to take
responsibility for the choices they make.
- Scandinavian cultures are more likely to base decision making
on social factors; what will benefit the group, as opposed to the
individual. In Sweden, decisions are made by consensus and as such,
may take a long time. Once a decision is made, it won’t change,
generally because so much discussion has gone into making it in the
first place. By the time a conclusion is reached, everybody is on
board.
- Japan is not dissimilar in the end goal, although culturally,
it differs greatly from Sweden. What the two have in common,
though, is the desire to maintain harmony and the well being of the
group, which matters more than individual choice.
- China, like Japan, is a collectivist culture. Confucianism
teaches that individuals should maintain their place in the
hierarchy to avoid chaos. Decision making is slow and deliberate;
rushing things is the sign of a fool. Chinese management culture
tends to be risk-averse, with a desire to get things right, hence
the slow process. Decisions are influenced by the social structure
and the concept of the good of the group. Age is associated with
wisdom and experience and decisions are therefore usually made by
the most senior members of a company, who tend to hold the
power.