Power distance , according to Hofstede, is the extent to which people expect and are willing to accept that power is distributed unequally. (p. 28)
Individualism is defined as societies in which ties between people are loose meaning individuals are only responsible for themselves and their immediate family. In collective cultures people are born into a group. They remain members of that cohesive group for their entire lives. Their identity is shaped by their "in-group" and throughout their lifetime belong to strong, cohesive in-groups.
Masculine societies have clearly defined gender roles. Men are tough, assertive. Women are modest, tender, nurturing. In feminine societies gender roles overlap. Dominant values in masculine societies are material success and progress and conflicts are resolved through fighting. Feminine societies value people and relationships and resolve conflicts through compromise and negotiation.
Hofstede defines uncertainty avoidance as the extent to which people feel threatened by uncertain or unknown situations.
Universalistic cultures focus more on rules than relationships, have a preference for legal contracts, and believe there is only one truth. In universalistic cultures a deal is a deal. Trust is based on honoring your word or contract. Fairness is treating all people the same. Particularistic cultures focus more on relationships, change legal contracts easily and believe in several perspectives on reality. Particularists evolve their relationships to suit the situations.
Individualism is defined as societies where people ideally achieve alone, use "I" frequently and take vacations singly or in pairs. Communitarian societies, on the other hand, use "we" more often, achieve better in groups, and vacation in organized groups. In individualistic cultures, decisions can be made quickly by representatives at negotiations, while in collective cultures, the representatives must defer to the organization.
Affective cultures readily express their thoughts and feelings. Expressing feelings relieves tension. Emotions flow easily. Touching and gestures are common. Statements are dramatic and fluent. Neutral cultures do not openly reveal thoughts and feelings, admire self-possessed behavior and frown on physical contact.
The specific vs. diffuse dimension explains the degree of people's involvement in relationships. Specific cultures get to know people easily and maintain flexible relationships, yet specific cultures make acquaintances for specific or limited reasons. Diffuse cultures on the other hand, keep their distance from unknown others. Individuals are slower to develop relationships, however, once an individual has been accepted in a diffuse culture that person is in all the way.
Achievement vs. Ascription dimensions deals with the ways a culture accords status to people whether it is through what you achieve or through who you are (ascription).
Locus of Control describes the extent to which people in a culture feel that they have control over and can impact their surroundings.
Past/present cultures show respect for ancestors and elders and tend to view current happenings with regard to past experiences. Past/present-oriented cultures live in the here and now. Future cultures plan extensively for the future, respect youth, and talk of prospects. Synchronic cultures do activities simultaneously and appointment times are approximate. Relationships are more important than schedules. Sequential cultures do tasks one at a time and respect plans and timetables.
Hall defines high context communication as one in which most of the information is either in the physical context or internalized in the person, while very little is in the coded, transmitted part of the message. In low context communication almost all information is contained in the code of the message.
Italy is one of the five largest industrialized economies in the world. It is the gateway to the world's largest single market, the European Union. It is strategically at the center of the Mediterranean, so it enjoys excellent economic contacts with the new democracies in Central and Eastern Europe.
Industrialization began at the end of World War II, transforming Italy into a modern industrialized society.
Major developments took place in the 1960s through a program of infrastructure investments which led to a period called "Miracolo economico."
Italy is a manufacturing economy open to international markets. In order to come to the Single European Market, which began January 1, 1993, from a stronger position, Italy is attempting to achieve a more sound financial and economic structure.
The Single European Market means that all commercial barriers to the free circulation of goods, capital, services and persons, were abolished between the EU countries. Barriers remain in banking and the insurance industries.
The European Economic and Monetary Union (EMU) - as envisaged in the Maastricht Treaty - should be completed no later than 1999. The monetary union will eliminate exchange rate variability and uncertainty, reduce existing interest rate premiums, promote the expansion of the intra-Union trade and direct investment. The EMU will have far-reaching implications for the international monetary system. The single currency of the union, the ECU (European Currency Unit) will compete with the dollar and the Japanese Yen as a key international currency in foreign trade transactions, in the denomination of private investors portfolios and in official reserve.
Italy's economy grew at 0.7 percent rate in 1996, one of the lowest in the industrialized world.
Germany and France are Italy's major trading partners.
Exports to the United States are 7.9 percent of all Italian exports.
Industries that dominate the export market are machinery, textiles, clothing, food products and chemical goods.
French and German companies are the leading foreign investors.
Italy is by far the largest state-owned industrial sector from ice-cream to spacecraft.
This dates back to the 1930s when the government decided to sustain the industrialization process through massive public intervention programs.
The government recently begin to reconvert the economic system based on market principles.
Italy has been characterized during the last six decades as having a mixed economy. There has been a proliferation of small and medium-sized businesses that constitute the backbone of Italian manufacturing activity. These companies tend to be small, flexible, family controlled, and export oriented.
Unification has not succeeded in bridging the gap between the wealthy industrial and commercial Northern and Central regions and the less developed and mainly agricultural Southern regions.
Unemployment figures accurately reflect the divergence between the North and South of Italy.
There have been massive migrations of workers from the Southern to the Northern regions.
Since the 1950s the Italian government has attempted to attract new investments into economically depressed areas.
A number of different incentives have been introduced aimed mainly to attract investors to the regions of southern Italy including Sardinia, Sicily and other islands.
The industrial pattern of small companies in Italy is characterized by the existence of a number of firms engaged in the same or related fields of business usually in the same region. Each company focuses on a small step of value added activity.
For example, a firm may win an order and then subcontract that order to a more specialized firm in the same area with both firms collaborating to complete the order.
This type of industrial pattern leads to areas of local excellence, e.g. example, computer technology in Ivrea, food processing in Emilia, and heavy metals in Brescia.
Italy's economy benefits from an ability to adapt to the demands of the market, a high degree of flair for visual presentation and artisan skill.
The private sector is dominated by a handful of household names e.g., Fiat in the automobile sector, Pirelli for tires, and Olivetti for computers.
Foreign U.S. multinational corporations are also well represented in Italy. They include IBM, Texas Instruments, Texaco, Mobile, Goodyear, Procter & Gamble, Colgate-Palmolive, Uniroyal, Nestle, Ericsson, and Pfizer.
More meetings take place in every region, province, and community of Italy per hour than anywhere else in the world. Italians perceive meetings as a theatrical showcase where the "performer" demonstrates his authority, power, and ability for the approval of colleagues.
Rules are laid down, but they exist to be disregarded. Formality inevitably breaks down to be replaced by a kind of childlike glee.
Regulated seating is the norm in meetings. The number one person (usually male, but in rare instances female) is placed at the head or center of the table. They are flanked by their seconds in command.
Paternalism is very prevalent. The top man does all the talking, while everyone else listens.
All major decisions have usually been sorted out prior to the meeting. Although, the charade of open discussion does take place, everyone is well aware that it is a charade.
During long meetings Italians will never be imprisoned in a seat. If personal needs get in the way, they will get up, move about without losing face or appearing ill mannered.
Because most meetings take place among a very homogenous group, proposals are usually not contested in a heated or argumentative way.
Italians have a different concept of time than Americans. Being late to meetings is certainly not encouraged, but by the same token it is not looked upon as a breach of etiquette
Italians do not arrive for appointments on time (e.g. on time in Milan means 20 minutes late, in Rome half an hour).You cannot change this so you will have to adapt.
An exception to this is in the North, where precision in everything is the goal. Every effort is made to be "on time."
As a people, they have survived innumerable invasions, countless wars, and periodic government breakdowns, and this history has made them a notion of philosophers. They have learned to take the long view, anticipating the unexpected and coping with surprises philosophically
In order to be successful in negotiations with Italians give yourself adequate time for the exercise and a lot of patience.
In negotiations Italians seem to proceed in a roundabout manner and will discuss things from a personal or semi-emotional angle. They may get overheated on some points but change their viewpoints a moment later.
They will jump ahead to later points on the agenda or will re-discuss points that you think have already been settled.
Their communication style is eloquent, wordy, demonstrative, and emotional. Italian wordiness compared to American succinctness can be frustrating.
Americans must be try to be more explicit and explanatory but also encourage their Italian counterparts to be more concise and economical with words and ideas. In the course of doing business you can speak freely with Italians but do not exaggerate bluntness or directness.
Be prepared to discuss things at great length and maintain your calm.
Italian business dealings may feel dishonest „ businesses frequently get around rules. They regard Americans' rather rigid and law-abiding approach as short-sighted or even blind. They do not consider their own approach to be in any way corrupt.
During negotiations Italians may have several phones on their desk, none of them put on hold. Therefore, the meeting is periodically interrupted by incoming calls. Not only does this establish their position of importance and power, it also enables them to observe their visitors, to size them up to decide whether or not they can be trusted.
Italians do not conclude major business deals over the phone or by letter. It is done where eye contact is possible and where nuances of movement and gesture are studied and analyzed.
Eye-balling makes evasiveness difficult. Eyes and facial expressions reveal underlying emotion and the Italian is a shrewd psychologist.
Businessmen often use language to block communication until the moment is right. Watch for misunderstandings and always recap all discussions in writing.
Try to learn a little Italian, they will appreciate the effort because their English might not be perfect either.
In Italy machismo and gallantry (two sides of the same coin) are perpetuated, since they are as much a way of life there as eating pasta or drinking wine at meals.
Before a meeting in the south actually gets under way, a women participant may receive an excess of attention. Italian men are very charming and most male to female overtures are quite subtle (e.g. an ingratiating smile, a wink, kissing a woman's hand, or a sincere verbal compliment). American women will be accorded respect in Italy so accept such gestures gracefully.
Italian women accept this as a harmless part of the game with either an indulgent smile or a playful rebuke.
Unwanted gestures should be ignored. However if these actions persist and the gentleman doesn't get the hint, a strong and vocal rejection is totally appropriate. Basta! is the Italian word for "Enough!".
Women should extend their hand first when greeting a man. Embracing and cheek-kissing is reserved for longtime acquaintances. DonÍt be afraid to introduce yourself.
Traditions are strong in Italy, respect for authority is even stronger.
Always show great respect for professional and academic titles. Titles are in constant use to establish one's position and prestige.
Always be aware that there are distinct roles for men as the dominant force in business. When it comes to business the man is the authoritative head. Women play a decidedly minor role in Italy's business sector
In Italy the woman is the backbone of the family. The Italian women has no intention of forgetting her role as a female. She does not use her sex as a weapon: it is simply inconceivable to her to be anything but a woman in the world in which she lives.
Approximately 36 percent of the workforce is female, with very few in decision-making positions.
Italian women managers will be found in female-oriented businesses dealing in fashion, art, cosmetics.
Women receive up to 22 weeks for maternity leave.
There is no equal opportunities legislation and there is considerable discrimination against women.
Family importance will extend to business relationships (e.g. affectionate hugs, inclusion in family celebrations, gifts, and close familial-like correspondence).
Italians eat well, relax well, and dress well. They are astute business people. No one wants to pay full price for anything (e.g. railway tickets, taxes, new car, or a suit). Only naive Italians and foreigners pay full price.
English is widely spoken among better educated business people. Cocktail hour with several rounds of drinks is uncommon in Italy, since wine is served with every course. In Italian business circles, even mild intoxication is considered ill mannered.
Men should wear business suits. They may dispense their ties and remove their jackets if a room or hall is not air-conditioned - Italians do enjoy their creature comforts. Women should dress with a traditional sense of elegance and chic. Consider investing in a stylish, high quality wardrobe for business and social events (e.g. elegant shoes, purse, briefcase, and jewelry).