Archive for the ‘Statistics’ Category

COVERS of Sino Foreign Management Magazine

COVERS of Sino Foreign Management Magazine (Photo credit: \!/_PeacePlusOne)

After the Ericsson post I started reflecting on the causes of culture clashes.

A very important book on this issue was written in the early 1980s, called Culture’s Consequences. It arose from a survey conducted by IBM.

The book distilled four key areas in which values differ across cultures. The first is Power Distance. This is “the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally” (Wikipedia).

In a country with high power distance you’d be more likely to see:

  • Conformity in schools
  • Autocratic / paternalistic decision-making
  • Belief that work is a necessary evil
  • Distrust amongst employees
  • Employees fear disagreeing with their boss

In a country with low power distance you’d be more likely to see:

  • Students displaying independent thought
  • Consultative decision-making
  • Belief that work is enjoyable
  • Co-operation amongst employees
  • Employees more likely to express disagreement with superiors

Going back to the failed Ericsson collaboration: the study rated Sweden as having the sixth-lowest power-distance (31/100) while Colombia had one of the highest (67/100; comparable to Singapore).

Now check out the scores of the world’s three most populous developing nations:

  • China: 80/100
  • India: 77/100
  • Indonesia: 78/100

I’m Australian and Hofstede’s study gives us a rating of 36/100. I admit I am certainly biased towards consultation and the right of sensible dissent. This study suggests that those are rarely going to be popular suggestions overseas; hence the ongoing wave of strikes and rioting in China and the two million out on the streets in Indonesia last week. Talking gets these workers nowhere because managers don’t believe they need to listen.

(Next: Uncertainty Avoidance)

Related:

Further reading:

  • Hofstede (1980) Culture’s Consequences: International differences in work-related values, Sage Publications, Newbury Park, Cal.
  • Salk (1981) World Population and Human Values: a new reality, Harper & Row, New York
  • Donleavy et al (1995) Whose Business Values? Some Asian and cross-cultural perspectives, Hong Kong University Press, Hong Kong

Imagine a world where leaders worried foremost not about GDP figures, inflation and interest rates, but rather about actual wellbeing: that citizens live healthy, fulfilled lives. Imagine if we had a means of measuring that instead. It’s too easy, unfortunately, to be prosperous and still miserable.

Opinions on this diverge pretty widely:

  • Some argue that, once you reach an income that can meet your basic needs (say $50,000) more money isn’t going to make you much happier.
  • Others point to studies that show that happiness will increase with increased income but the law of diminishing returns applies: a $20,000 pay increase increases the happiness of a person earning $250,000 a lot less than it does a person earning $50,000 per year.
  • Finally, there have been studies warning that obsession with material progress will actually come at the cost of happiness and wellbeing.

It looks like the third view is having its moment. France, Canada and the UK have all announced that they will start measuring national wellbeing by means other than GDP. A vision of the future, I wonder?

The United Nations has long used a rough quality of life index called the Human Development Index though it gets nothing like the attention that Gross Domestic Product does. There are also niche providers of organisation-level Quality of Life surveys, such as UK-based qualityofworkinglife.com (QoWL). Melcrum Consulting publishes another. (Interestingly, the countries and cities consistently at the top of these rankings are always Scandanavian, Australasian and Swiss.)

Two observations:

  1. A quality of life index provides a more meaningful insight into the degree to which people in developing nations are not living the life they would like to. I am suspicious of dollar comparisons since they do not take account of difference in purchasing power parity or (more to the point) different expectations of what constitutes the good life.
  2. These issues are interconnected. People in the developed world stockpile needless commodities in their efforts to keep up with the Joneses. This produces the demand to make ever more commodities, sucking more and more people into the low-cost manufacturing sector. I often think of the statistic that China manufactures 95 billion ballpoint pens a year – one a month for every man, woman a child on the planet. Is that ridiculous enough yet? Maybe our priorities do need realigning.

Vested interests push the ‘spend, spend, spend’ message so tenaciously that political leaders tend to assume it’s just normal. It’s pretty courageous of the governments mentioned above to have taken this step.

Below: Infographic of a Quality of Life survey specific to Europe


uSwitch Quality of Life infographic

Further reading:

Related posts:

The Union Wage Premium is the term for the phenomenon whereby union members earn measurably higher wages than non members in comparable jobs.

This confirms the intuitive expectation that workers with access to collective bargaining will repeatedly achieve higher wage rises and, over time, their rate of pay will march ahead of those who do not.

Within the last month reports in BusinessWeek and from the Australian Bureau of Statistics have shown the continued existence of the Union Wage Premium.

Related articles

A double-page spread from the book

Numbers can get a little overwhelming. But when you are talking about human beings, it is essential to make some effort to imagine what ten thousand or one million or ten million people look like. I suspect decisions are sometimes made, rashly discounting their effects on large numbers of people, simply because the decision-maker was faced only with numbers on a bare page.

The innovative book One million human beings: One million bombs depicts one million people iconographically, ten thousand to a page. Random individuals are singled out to represent a broader story.

The book is focused on the tragedy of warfare and its proceeds are donated to the anti-landmine cause. In the bloody 75-year period from 1914 to 1989 it just boggles the mind how many human beings were killed violently at the hands of others. The number could be as high as 200 million. Nearly all of them were the result of ideological divisions. (Which is why my blood pressure starts rising whenever I hear people hanker for the “good old days” when people were more certain of their convictions.)

It is extremely sobering. It does not contain a lot of text. But the message, learned from this book, can be applied anywhere. Numbers are all too easy to spout. Here are some about today’s world:

  • 2.1 billion people live on less than two dollars a day.
  • 1 billion people live in slums.
  • 884 million live without access to clean drinking water.
  • 42 million pregnancies end in abortion annually.

I won’t say this book makes it easier to cope with the enormity of these challenges but it at least attempts to put a human face on the numbers.

Related:

Pro-government demonstrators (front) face-off against anti-Mubarak supporters near Tahrir, 2 Feb 2011. Photo: Reuters/Mohamed Abdel Ghany

So many news stories result from differences in values. Just in the last few months we have seen front page stories about uprisings in the Arab world, Wikileaks and of course America’s Congressional elections.

It often comes up in the discussion of human rights, along the lines of “You are attempting to impose your values”. I might find child labour unacceptable but try telling that to a Bangladeshi family who rely on their children’s income to subsist.

The folks at World Values Survey have taken the trouble to illustrate how people in particular countries and even groups of countries really do tend to share certain values.

The graphs can seem a bit like a Magic Eye puzzle and may require a few moments’ stillness before they make sense, but the revelation is worth it.

Here are two that are quite startling:

In this first, the left axis measures people’s preference for traditional, what you might call “village” values (bottom) versus bureaucratic values like the rule of law (top).

The bottom axis measures preference for survival values (group cohesion, saving money) versus self-expressive, individualistic values such as entrepreneurialism and pluralism.

Of course the results are an average and there would be huge diversity of answers within national borders.

Nonetheless, countries with similar cultural histories average out to have similar scores. So the notion of ’Asian Values’ has some empirical weight.

Sociologist Max Weber first identified this a century ago in his book The Protestant Ethic and the Spirit of Capitalism. He observed that the predominantly Protestant Northern European countries industrialised faster than the predominantly Catholic Southern European countries. If the Values Survey is to be believed, one might expect that Catholic countries inculcate more non-mercantile values such as:

  • traditional roles for women / large families / extended family ties
  • hierarchy
  • abstract learning (e.g. theology)

whereas Protestant countries inculcate values such as:

  • female suffragism
  • shared authority / egalitarianism
  • practical learning that can be used in building God’s Kingdom on earth

The latter values naturally lend themselves to economic advancement. What strikes me, though, is that the Catholic-Protestant divide is 500 years old. Happily relations between denominations have been more congenial in the last half-century, yet the differences in cultural values persist.

So it’s well and good to talk about ‘universal’ values set down in International law, but if a human rights agenda runs afoul of prevailing cultural values, it will go nowhere fast.

OK one more:

This one a little less subtle! Citizens who enjoy the most freedoms also report the greatest sense of ‘happiness and satisfaction with life as a whole’ (Someone should mention this to Egypt’s President Mubarak!)

China doesn’t follow the pattern though, and if the dots were displayed in proportion to population it would completely spoil the intended message of the chart. China’s score of zero on the freedom scale seems perhaps exaggerated … I think citizens of North Korea would have something to say about that, if they were able to see it … but is still striking that the Chinese report greater satisfaction with life than the Portugese and are even creeping up on the French.

I really like this animated graph with commentary by Hans Rosling, showing 200 years of world economic development. More power to him for making economics interesting!

He consistently likes to show that the nations of the Global South are not so far behind as some in the North might think (although it must be said, Africa is trending the slowest). This is going to be a great century as poverty declines and living standards improve in the world’s largest nations.

The London-based International Centre for Trade Union Rights (ICTUR) has recently published new editions of its freedom of association map. This map illustrates ratification of relevant ILO standards and highlights compliance shortfalls worldwide. A second map, on child labour, is also available.

In each case ICTUR has sought objective views on compliance. The assessment for freedom of association relies on clearly reported murders and arrests identified in their annual Violations Survey or other trade union rights monitoring programmes.

The notes are drawn from International Labour Organization (ILO) and International Trade Union Confederation (ITUC) documentation.

The picture is not rosy: last year trade unionists were arrested, imprisoned or subject to criminal prosecution in 50 countries and killed or assassinated in 15 countries.

A 3MB PDF of the map can be downloaded here and hard copies can be ordered here.