Script Intercultural Management SS2006

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Information about Script Intercultural Management SS2006
Education

Published on January 22, 2008

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Intercultural Management:  Intercultural Management Fachhochschule Stuttgart Hochschule der Medien University of Applied Sciences Department Print Electronic Media Jaruwan Krengvittaya-Greilich Sommer Semester 2006 Slide2:  Contents: • The Asian Pacific Area in western statistics • Hofstede's 5-D-Model • Germany, China, Japan and Thailand in the 5-D-Comparison • Value development in Germany 1950 to 2000 • Consequences in the Behaviour towards Thais • Thai Culture in Management • Roots of the Japanese Tradition • Features of Japanese Culture for Management • Western and Japanese Steering Features • Key values of Chinese Culture • Features of Chinese Culture for Management • Media and Communication in Comparison • Rules for Business Success in South East Asia • Cases • Appendix Intercultural Management Jaruwan Krengvittaya-Greilich Slide3:  Chart No. 1a Bibliography (part a) Jaruwan Krengvittaya-Greilich • Andres, Susanne, International corperate communication in the process of globalisation, Gabler, Wiesbaden 2004 • Chan, John, China Strreetsmart, What you must know to be effective and profitable in China, Prentice Hall 2003 • Dambmann, Gerhard, Instructions for Japan, Piper, Munich 1996 • Ederer, Günter, Das leise Lächeln des Siegers, C.H. Beck, Munich 1998 • Fussinger, R.-D.; Reincke, Intercultural Management, Gabler, Wiesbaden 2001 • Hofstede, Geert, Cultures and organizations-Software of the mind, Mc Graw Hill, New York 2005 • Hofstede, Geert, Cultural Constrains in Personnel Management, in Management International Review, Gabler, Munich 1998 • Hofstede, Geert & M.H. Bond, The Confucius Connection: From Cultural Roots to Economic Growth, in Organization Dynamics, 1998 • Jandt, Fred, Intercultural Communication, Sage Publications, Thousand Oaks 2004 Slide4:  Chart No. 1b Bibliography (part b) Jaruwan Krengvittaya-Greilich • Klausner, W.J., Reflections on Thai Culture, The Siam Society, Bangkok 1987 • Kuhnert, Stephan, Management in Thailand, Compendium for successful conduct in the Thai business world, Bangkok 2002 • Kutschker, Michael; Schmid, Stefan, International Management, 4th edition Oldenbourg, Munich 2005 • Lang, Nicolaus-Sebastian, Interculturales Management in China, Deutscher Universität –Verlag, Wiesbaden 1998. • Lewis, Richard D., When cultures collide, Nicholes Brealey, London 2000 • Liu, Y., Kulturelle Besonderheiten bei deutsch-chinesischen Verhandlung von Unter-nehmen, Leipzig 2000 • Perlitz, Manfred, International Management, Lucius & Lucius, Stuttgart 1997 • Phongpachit; Pasuk; Baker, Chris, Thailand-Economy and Politics, Oxford University press, New York 2002. • Reincke R.-D.; Fussinger, Intercultural Management, Gabler, Wiesbaden 2001 Slide5:  Chart No. 1c Bibliography (part c) Jaruwan Krengvittaya-Greilich • Reisach U.; Tauber Th.; Xueli Yuan, China - Business partner between wish and reality, Ueberreuther, Vienna and Frankfurt 1997 • Schneidewind, Dieter, Market and Marketing in Japan, C.H. Beck, Munich 1998 • Seligman; Scott, D., Business Etiquette: A Guide to protocol Manners and Cultures in the People´s republic of China, Warner Books 1999 • Thiele, Ulrike; Meid, K.H., Successful in the Japanese Business, Savings Bank Publisher, Stuttgart 1994 • Ting-Toomy, S., Communicating Across Culture, The Guildford Press, New York 1999 • Trompenaars; Fon; Hampden-Turner, Riding the waves of culture, Charles 1998 • Warthum, Nicole, Intercultural Communication in the Business, University Publisher Dr. N. Brodemeyer, Bochum 1997 • Weggel, Oskar, The Asians, dtv, Munich 1994 • Weggel, Oskar, China, C. H. Beck, Munich 2002 Slide6:  Chart No. 2 Definition of Globalisation Jaruwan Krengvittaya-Greilich Globalisation is a process of interaction and integration among people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. Globalisation is not new. For thousands of years, people – and, later corporations – have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. The current wave of globalisation has been driven by policies that have opened economies domestically and internationally. Technology has been the other principal driver of globalisation. Advances in information technology, in particular, have dramatically transformed economic life. Globalisation is deeply controversial, however. Proponents of globalisation argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalisation claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world. Slide7:  Nokia/Finland Chart No. 3 The Asian Pacific Area in western statistics ? Motorola/USA Mitsubishi/Japan Ericson/Sweden Sony/Japan Siemens/Germany Toshiba/Japan Co-operations in the year 2001 Western- Europe/USA South-East-Asia (Japan) 2 % * 14.6 % * 30.6 % * Jaruwan Krengvittaya-Greilich = market share world wide  1 % * 10.0 % * 6.5 % *  1 % * Slide8:  Chart No. 4 The Asian Pacific Area in western statistics Jaruwan Krengvittaya-Greilich 1992 1994 1996 1998 2000 2002 • • • • • 8 % 6 % 4 % 2 % • • • • • •            Asia worldwide List of References: ADB, Asian Development Bank, Manila, 2001 Changes to the previous year Slide9:  Inhabitants Mainly: Catholics and Protestants Mainly: Taoists (with Confucian philosophy) Mainly: Shintoists and Buddhists Mainly: Buddhists Jaruwan Krengvittaya-Greilich The East-Asian Area in German statistics Germany: 83 Million Inhabitants Thailand: 63 Million Inhabitants Chart No. 5 China: 1,300 Million Inhabitants Japan: 128 Million Inhabitants Slide10:  The Asian Pacific Area in western statistics Jaruwan Krengvittaya-Greilich Thailand Jan 1 New Year´s Day Jan 3 Substitttion for New Year´s Day Feb 23 Makha Bucha Day Apr 6 Chakri Day Apr 13-15 Songkran Days May 1 National Labour Day May 2 Substitttion for National Labour Day May 5 Coronation Day May 7 Ploughing Day May 22 Visakha Boucha Day May 23 Substitttion for Visakha Boucha Day Jul 20 Asarnha Bucha Day Jul 21 Buddhist Lent Day Aug 12 H.M. The Queen´s Birthday Oct 23 Chulalorngkorn Day Oct 24 Substitttion for Chulalorngkorn Day Dec 5 H.M. The King´s Birthday Dec 10 Constitution Day Dec 10 Substitution for Constitution Day Dec 31 New Year´s Eve Indonesia Jan 1 New Year´s Day Feb 21 Id-Al-Adha Feb 9 Chinese New Year´s Days Feb 10 Islamic New Year Mar 25 Good Friday - Easter (Christian) Apr 9 Hari Raya Nyepi (Hindu) Apr 21 Mouloud, Prophet’s Birthday May 5 Ascention Day (christian) May 22 Waisak Day (Buddhist) Aug 17 Indonesian Interpendence Sep 1 Ascention of the Prophet Nov 3 Id-Al-Fitr Dec 25 Christmas Day Singapore Jan 1 New Year´s Day Feb 9-10 Chinese New Year´s Days Mar 25 Good Friday May 1 Labour Day Aug 9 National Day Dec 25 Christmas Day Taiwan Jan 1 New Year´s Days Jan 2-3 New Year’s Holiday Feb 8 Chinese New Year’s Eve Feb 9-11 Chinese New Year´s Days Mar 29 Youth Day Apr 5 Ching Ming Festival May 1 Labour Day Jun 11 Tuen Ng Festival Jul 1 Bank Holiday Sep 18 Mid-Autumn Festival Sep 28 Teacher´s Day (Birthday of Confucius) Oct 10 National Day Oct 25 Taiwan Retrocession Day Oct 31 Birthday of Chiang Kai Shek Nov 12 Birthday of Dr. Sun Yan Sen Dec 25 Constituttion Day Australia Jan 1 New Year´s Day Jan 3 New Year‘s Holiday Jan 26 Australia Day Mar 25-28 Good Friday-Easter Apr 25 Anzac Day Chart No. 15 Chart No. 6 Slide11:  The Asian Pacific Area in western statistics Jaruwan Krengvittaya-Greilich Jun 13 Queen´s Birthday Dec 25 Christmas Day Dec 26 Boxing Day Japan Jan 1 New Year´s Day (Gantan) Jan 2-3 New Year‘s Holiday Jan 10 Coming of Age Day Feb 11 National Foundation Day Mar 21 Vernal Equinox Day Apr 29 Greenery Day May 1 May Day May 3 Constitution Memorial Day May 4 National Holiday May 5 Children´s Day Jul 18 Marine Day Sep 19 Respect for the Aged Day Sep 23 Autumnal Equinox Day Oct 10 Health and Sports Day Nov 3 National Culture Day Nov 23 Labour Thanksgiving Day Dec 23 Emperor´s Birthday Dec 31 New Year‘s Eve Holiday China Jan 1 New Year´s Day Jan 29-31 Spring Festival Feb 9-11 Chinese New Year May 1-3 International Labor Day Oct 1-3 National Day Hong Kong Jan 1 New Year´s Day Feb 9-11 Chinese New Year´s Days Mar 26 Good Friday – Easter Mar 28 Easter Monday Apr 5 Ching Ming Festival May 1 Labour Day May 16 Buddha‘s Birthday Jun 11 Tuen Ng Festival Jul 1 SAR Establishment Day Sep 19 Day after Mid-Autumn Festival Oct 1 National Day Oct 11 Chung Yeung Festival Dec 22 Chinese Winter Solstice Dec 25 Christmas Day Dec 26-27 Christmas Holidays Philippines Jan 1 New Year´s Day Feb 22 EDSA Revolution Day Mar 24-27 Holy Thursday-Easter Apr 9 Bataan Day May 1 Labour Day Jun 12 Interpendence Day Jun 24 Manila Day Aug 28 National Heroes Day Nov 1 All Saints´Day Nov 3 Eid‘l Fitre Nov 30 Bonifacio´s Day Dec 25 Christmas Day Dec 30 Rizzal Day Dec 31 New Year‘s Eve Chart No. 7 Slide12:  The Asian Pacific Area in western statistics Chart No. 15 Jaruwan Krengvittaya-Greilich Japan 19 18 1 Taiwan 18 12 6 Hong Kong 18 10 8 Thailand *) 17 12 5 Philippines 16 9 7 Indonesia 13 2 11 China 13 13 - Australia 9 4 5 Singapore 7 3 4 Germany **) 12 4 8 *) Thailand: 5 public holidays regarding the monarchy **) Bavaria and Baden-Wuerttemberg country holidays public holidays clerical holidays Chart No. 8 Slide13:  Chart No. 9 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich The database was unusually extensive, covering employees in 38 occupations in 74 countries and regions: 67 countries, Belgium and Switzerland each with two language-regions, and three regions in Africa. Altogether more than 116,000 questionnaires with over 100 standardized questions each.  Answers from employees from subsidiaries of IBM corporation in different countries, were based on the same “paper-and-pencil” questions. Only the scores of the fifth dimension were based on the student samples in the the Chinese Value Servey study in thirty-eight countries and one region. For the questionnaire, an interval-scale with five answer alternatives was used. In his cross-national study, Geert Hofstede showed results for international distinctions using a large empirical market research survey: Hofstede´s comment: To the amazement of some people as to how employees of a specific corporation like IBM can serve as a sample for discovering about the culture of their countries as a whole, his answer: Samples for cross-national comparison need not be representative, as long as they are functionally equivalent. Slide14:  Chart No. 10 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Power distance gives an indication of the extent to which the less powerful members of institutions and organisations expect and accept that power is distributed unequally. Uncertainty avoidance gives an indication of the extent to which people feel threatened by ambiguous or uncertain situations and have created beliefs and instructions which try avoid these. Slide15:  Chart No. 11 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich In individualistic societies people are supposed to look after themselves and their immediate family only. In collectivistic societies people belong to cohesive in-groups or collectivities which are supposed to look after them in exchange for unquestioning loyalty. In masculine societies important values in society are public and material success, fast and decisiveness. In feminine societies important values are to be modest and tender and concerned with caring for others and quality of life. Slide16:  Chart No. 12 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich This dimension shows to what extent different nationalities attach relative importance to certain values associated with Confucius’s teachings. His teachings are lessons in practical ethics without any religious content. The principles of Confucian teaching: • The "wu lun": The stability of society is based on unequal relationships between people. • The family is the prototype of all social organizations. • Virtuous behaviour towards others consists of not treating others as one would not like to be treated oneself. • Virtue with regard to one´s tasks in life consists of trying to acquire skills and education, working hard, not spending more than necessary, being patient, and persevering. Slide17:  Chart No. 13 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Inequalities among people are expected and desired. Parents teach children obedience. Children are a source of old-age security to parents. Respect for parents and older relatives is a basic and lifelong virtue. Teachers should take all initiatives in class. Teachers are gurus who transfer personal wisdom. Inequalities among people should be minimized. Parents treat children as equals. Children play no role in old-age security of parents. Children treat parents and older relatives as equals. Teachers expect initiatives from students in class. Teachers are experts who transfer impersonal truths. Slide18:  Chart No. 14 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Mostly poorer countries with a small middle class. The powerful should have privileges. Managers rely on superiors and on formal rules. Subordinates expect to be told what to do. The ideal boss is a benevolent autocrat. The way to change a political system is by changing the people at the top: revolution Mostly wealthier countries with a large middle class. All should have equal rights. Managers rely on their own experience and on subordinates. Subordinates expect to be consulted. The ideal boss is a resourceful democrat. The way to change a political system is by changing the rules: evolution Slide19:  Chart No. 15 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Aggression and emotions should not be shown. Low stress and low anxiety. What is different is curious. Family life is relaxed. People have fewer worries about health and money. If commandments cannot be respected, they should be changed. Aggression and emotions may be ventilated. High stress and high anxiety. What is different is dangerous. Family life is stressful. People have more worries about health and money. If commandments cannot be respected, we are sinners and should repent. Slide20:  Chart No. 16 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Time is a framework for orientation. Liberalism. Few and general laws and rules. Citizen protest is acceptable. Positive attitudes towards young people. Belief in generalists and common sense. Focus on decission process. Hard-working only when needed. Time is money. Conservatism, law and order. Many and precise laws and rules. Citizen protest should be repressed. Negative attitudes towards young people. Belief in experts and technical solutions. Focus on decission content. Need to be busy; inner urge to work hard. Slide21:  Chart No. 17 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich ‘We’ conscious. Use of the word ‘I’ is avoided. Purpose of education is learning how to do. High-context communication. Trespassing leads to shame and loss of face for self and group. Social network is the primary source of information. Harmony should always be maintained and direct confrontations avoided. ‘I’ conscious. Use of the word ‘I’ is encouraged. Purpose of education is learning how to learn. Low-context communication. Trespassing leads to guilt and loss of self- respect. Media is the primary source of information. Speaking one’s mind is a characteristic of an honest person. Slide22:  Chart No. 18 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Collective interests prevail over individual interests. Private life is invaded by group(s). Opinions are predetermined by group membership. Relationship prevails over task. Management is management of groups. Per capita GNP tends to be lower. Harmony and consensus in society are ultimate goal. Individual interests prevail over collective interests. Everyone has a right to privacy. Everyone is expected to have a private opinion. Task prevails over relationship. Management is management of individuals. Per capita GNP tends to be higher. Self-actualization by every individual is an ultimate goal. Slide23:  Chart No. 19 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Dominant values in society are caring for others and preservation. Jealousy of those who try to excel. Both men and women should be modest. Women and men shop for food and cars. Relationship and quality of life are important. Sympathy for the weak. Failing in school is a minor incident. Dominant values in society are material success and progress. Competition in class; trying to excel. Men should be assertive, ambitious, and tough. Women shop for food, men for cars. Challenge, earnings, recognition, and advancement are important. Sympathy for the strong. Failing in school is a disaster. Slide24:  Chart No. 20 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich People work in order to live. Welfare society ideal; help for the needy. Permissive society. Careers are optional for both genders. More leisure time is prefer over more money. International conflicts should be resolved by negotiation and compromise. People live in order to work. Corrective society. Performance society ideal; support for the strong. Careers are compulsory for men, optional for women. More money is prefer over more leisure time. International conflicts should be resolved by a show of strength or by fighting. • • • Slide25:  Chart No. 21 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Small savings quote, little money for investment. Investment in mutual funds. Large savings quote, funds available for investment. Investment in real estate. Concern with personal adaptivness. Having a sense of shame. Perseverance, sustained efforts toward slow Children get gifts for education and Concern with personal stability. Concern with "face". Efforts should produce quick results. Children get gifts for fun and love. results. development. Slide26:  Chart No. 22 Hofstede’s 5-D-Model Jaruwan Krengvittaya-Greilich Main work values include freedom, rights, achievement, and thinking for oneself. Leisure time is important. Personal loyalties vary with business needs. Matter and spirit are separeted. If A is true, its opposite B must be false. Synthetic thinking. Main work values include learning, honesty, adaptiveness, accountability, and self-discipline. Leisure time is not important. Investment in lifelong personal networks, guanxi. Matter and spirit are integrated. If A is true, its opposite B can also be true. Analytical thinking. Slide27:  Chart No. 23 Germany, Thailand and Japan in the 5-D-Comparison Jaruwan Krengvittaya-Greilich  35 Scores  80 Scores  54 Scores  64 Scores On power distance Ger-many scores 35, i.e. below average, implying that a hierarchical order in which everybody has a place which needs no further justification is not accept-able to most Germans. Instead one strives for a certain degree of power equalisation one demands justification for power in-equalities. On power distance Thailand scores 64, i.e. above average, implying that a hierarchical order in which everybody has a place needs no further justification to most Thais as long as the power holders are being perceived as “good” fathers, who are not overtly emphasizing their power. On power distance Japan scores 54, i.e. just on the power distance side. Japanese subordinates expect be told what to do by their superiors but on the basis of mutual commitments in the group and consideration for others. On power distance China scores 80, i.e. above average, implying that a hierarchical order in which everybody has a place needs no further justi-fication to most Chinese. In the Chinese society of closed relationships deve-lopped the concept of „guanxi“, that is a network of contacts and personal relationships. Slide28:  Chart No. 24 Germany, Thailand and Japan in the 5-D-Comparison Jaruwan Krengvittaya-Greilich  65 Scores  30 Scores  92 Scores  64 Scores Germany scores 65, i.e. above average on uncertainty avoidance, implying that many German feel uncomfortable with uncertainty and ambiguity. This feeling leads them to belief promising certainty and to maintaining institutions protecting conformity. Thus those who can give certainty in life, such as philosophers, me-dical doctors and technical experts will receive deference. Thailand scores 64, i.e. above average on uncertainty avoidance, implying that Thai feel uncomfortable with unstructured situations. Uncertainty avoiding cultures try to minimise the possibility of such situations by e.g. adhering to strict laws and rules and on the philosophical and religious level and belief in absolute truth. Japan scores 92, i.e. extremely high on uncertain-ty avoidance. Japanese citizens are not only more dependent on the expertise of the government, but they also seem to feel that this is how things should be. Japan is a strong case for an implementing culture, who let the first supplying ideas other cultures and develop them further to put new products on the world market. China scores 30, i.e. below average on uncertainty avoidance, implying that in this country anxiety levels are relatively low. Aggressions and emotions are not supposed to be shown: people who behave emotionally or noisily are socialy disapproved of. This is also one of reasons for the high assessment in long-term orientation of every business. Slide29:  Chart No. 25 Germany, Thailand and Japan in the 5-D-Comparison Jaruwan Krengvittaya-Greilich  67 Scores  20 Scores  46 Scores  20 Scores The score for Germany on this dimension is 67. That is an individualistic score, but compared to other Western countries the score is not very high. Thus there is a preference for a loosely knitted social framework in society wherein individuals are supposed to take care to themselves and their immediate families only, and where self-interest is an important motivator. The score for Thailand on this dimension is 20. That is a highly collectivistic score. Thus, in Thailand there is a preference for a tightly knitted social frame-work in which individuals can expect their relatives or other in-group members to look after them in exchange for un-questioning loyalty. “Collec-tivism” is not used here to describe any particular political system. The score for Japan on this dimension is 46. That is a score just on the collectivism side. Employees will act in Japan according to the interest of the ingroup; self-effacement in the ingroup belongs to the normal expectations. If a Japanese belonging to a group from which he has infringed upon the rules of society will feel ashamed. The score for China on this dimension is 20. That is a highly collectivistic score. Thus, in China there is a preference for a rather tightly knitted social frame-work in which individuals can expect their relatives or other in-group members to look after them in exchange for unquestioning loyalty. China shows a relationship-based culture. China Slide30:  Chart No. 26 Germany, Thailand and Japan in the 5-D-Comparison Jaruwan Krengvittaya-Greilich  66 Scores  66 Scores  95 Scores  34 Scores Germany scores fairly high on masculinity 66, implying that there is a strong preference in the German society for achievement, heroism and material success. Thailand scores on the feminine side with a score of 34. In feminine societies, such as Thailand, social differentiation between the sexes is not being em-phasized. This means that some women can take assertive roles if they want to do, which in Thailand is true for the more well-to-do women, but especially that some women can assume relationship-oriented, mo-dest and caring roles. Japan scores extremely high on masculinity 95, implying that Japan shows the maximum on this dimen-sion. Challenging works, advancement and high earnings of money are characteristic attributes for the Japanese men. The most higher jobs are reserved for men, although women have often the same high education and qualification in Japan. China scores above average on masculinity 66, implying that there is a certain preference in the Chinese society for achievement and often for material success. There is a priority to have an opportunity for high earnings and for advancement to higher level jobs. Slide31:  Chart No. 27 Germany, Thailand and Japan in the 5-D-Comparison Jaruwan Krengvittaya-Greilich  31 Scores  118 Scores  80 Scores  56 Scores Germany scores 31 which is low compared to countries with dominant Chinese population and/or with a strong Chinese influence. Among the western coun-tries Germany occupies a middle position. This can be explained by the relative importance which Germany is attached to thrift and perseverance. Thailand scores 56 on the dimension Confucian Dyna-mism, implying that Thailand scores just on the dynamic side (Hong Kong with 96, Taiwan with 87 and South Korea with 75 scores.) The score of Thailand is not so high because in relative terms little importance is attri-buted to perseverance and very much importance is being attributed to protec-ting one’s face. Japan scores 80 on the dimension Confucian Dynamism, implying that Japan scores rather high on the dynamic side. The Japanese were known to value thrift and perse-verance and to believe in tradition. The correlation between certain Confucian values and economic growth over the past decades is also be right for Japan. China scores 118 (which exceeds 100, was added after the scale has been fixed.) on this dimension with extremely high on the dynamic side. The correlation between certain Confucian values and economic growth over the past decades is a sur-prising, even a sensational finding. May be that this explains the huge eco-nomic growth during the last 20 years in China. Slide32:  Chart No. 28 Value Development in Germany 1950 to 2000 Jaruwan Krengvittaya-Greilich Law and order Achievement and discipline Live in order to work Sense of duty The fifties The sixties *) Prosperity Financial wealth Social welfare Consumption Status thinking   Build up and maintain Possess and display List of references: Marketingjournal, Munich, January 2002 *) 1968: Students protests with consequences in the society Slide33:  Chart No. 29 Value Development in Germany 1950 to 2000 Jaruwan Krengvittaya-Greilich Alternative ways of life Self-realization Independence Criticism of consumption Social movements: peace, ecology, feminism The seventies The eighties “I”-orientation Event-orientation Superficiality Showmanship Hedonism   Exist and self-determination Possess and display Exist, possess, revel List of references: Marketingjournal, Munich, January 2002 The nineties Individualism Relationship/communication Authenticity Prosperity/achievement Flexibility Realism  Slide34:  Social Environments in Western Germany according to „SINUS“ Jaruwan Krengvittaya-Greilich Conservative, elevated Environment 10 % Modern bourgeois Environment 8 % List of references: Soll & Haben, Spiegel-Verlag, Hamburg 2000 Liberal-intellectual Environment 10 % Upper Class Middle Class Lower Class Posterior modern Environment 5 % Hedonistic Environment 11 % Ascent- orientated Environment 18 % Modern Worker Environment 7 % Untraditional Labourer Environment 11 % Traditional Labourer Environment 5 % Petty- bourgeois Environment 15 % Chart No. 30 Social Classes  Slide35:  Chart No. 31 Consequences in the Behaviour towards Thais Jaruwan Krengvittaya-Greilich religion of Theravada Buddhism: Calmness in every situation of life, i.e. neither overjoyed nor unfortunately Richness of agriculture: Until three rice harvests per year by fertile soil and monsoon climate Diplomacy instead of force of arms: The feminin society preserved its freedom by diplomacy, so that Thailand never became a colony religion of Theravada Buddhism richness of agriculture diplomacy instead of force of arms Slide36:  Chart No. 32 Consequences in the Behaviour towards Thais Jaruwan Krengvittaya-Greilich Thais prefer a more flexible approach to life which enables them to avoid confrontations. They have a preference for people with a “cool heart”, those who keep emotions under control. Avoiding loss of face and appeasing threatening outsiders is more important than the preoccupation with the ultimate “truth”. Thais are more strongly aware than Germans that the following happens to every body: • to be born, • to be ill, • to be old and • to die. Slide37:  Chart No. 33 Consequences in the Behaviour towards Thais Jaruwan Krengvittaya-Greilich Thus for Thais there is only one truth and that is that nothing is permanent. I.e. : • different times, • different places and • different situations require different solutions. Therefore according to Germans Thais change their mind all the time. Despite Thailand’s social mobility, people live and work in hierarchical structures in which loss the face is threatening. Assignments should be commensurate with age, schooling, experience and connections. Thais like the preference in groups, the avoidance of open competition among colleagues and the togetherness in a relaxed atmosphere called “sanuk”. Slide38:  Chart No. 34 Consequences in the Behaviour towards Thais Jaruwan Krengvittaya-Greilich Thais like to learn and to gain new experiences. If work becomes not enjoyment and if there is not enough “sanuk”, those who can afford it will move on. Thais expect that counterparts are willing to invest in a relationship with them. Building up relationships takes time, which in Germany might be considered as a waste of time, but which in Thailand represents an essential investment. Building up relations in Thailand implies establishing contacts not only with the person concerned but also with the group to which he or she belongs. Therefore ventilating individual opinions is less important and can even be counterproductive when those opinions are not shared by the group. One old proverb runs as follows: • “It is easier to find a friend to eat with than a friend to die with.” Slide39:  Chart No. 35 Consequences in the Behaviour towards Thais Jaruwan Krengvittaya-Greilich In Thailand one should under all circumstances avoid loss of face. Thus appraisal and correction of the activities of a subordinate should be done in a following way: • from person to person only in an indirect way, while making sure that nobody can see or overhear the conversation or indirect message, • by acting cool and aloof, • through the withdrawal of a favour and • through a third person as a go-between. Feelings of personal pride and honour are more important in Germany than in Thailand. When a Thai returns from a business trip he might well be asked: “Was it fun?” instead of “Was it successful?” Slide40:  Chart No. 36 Consequences in the Behaviour towards Thais Jaruwan Krengvittaya-Greilich The Western system of “hire and fire” does not at all fit Thai culture. Poor performance is normally no reason for the assignment of a different task. The relative high turnover of employees in Thailand is not so much caused by dismissal, but by the fact that employees leave their job for reasons of: • not enough respect being paid them, • not fitting into the work group, • not enough enjoyment and fun (“sanuk”) in the work situation, • not enough money. But most of these reasons boil down to • “loss of face”. Slide41:  Chart No. 37 Consequences in the Behaviour towards Thais Jaruwan Krengvittaya-Greilich Thais work and live together. Germans work together, but they do not live together. In Germany normally a strict division is maintained between work and private life, whereas the distinction in Thailand between working and private life is blurred. Thai culture claims: • respect for powerholders, • respect for parents, • respect for elders, • trust in wisdom, • harmony preferences and • Buddhism religion taboos. Slide42:  Chart No. 38 Consequences in the Behaviour towards Thais Jaruwan Krengvittaya-Greilich The Buddhism religion can be found anywhere in Thailand. For example, one comfortable hotel wishes its guests good night and pleasant dreams every night with small cards printed with sayings taken from the script of Buddhism: ”Happy we are indeed when we live without hate among the hateful.” “Blessed are they who earn their living without hurting others.” “The gift of truth excels all other gifts.” “Better is it truly to conquer oneself than to conquer others.” “Health is the greatest wealth; contentment is the greatest happiness.” “Tolerance, patience and understanding are the highest virtues one can develop.” Slide43:  Chart No. 39 Thai Culture in Management Jaruwan Krengvittaya-Greilich During meetings the Senior Officer is to recognize that:  he speaks first  he opens the meeting  he speaks most of all           he hands over his visiting-card by himself  he is the first person to go upstairs  he is the first person to go downstairs          he is seated at the head of the table  the next most important person is seated on the right side (e.g. the deputy or an important guest)  the second most important person is seated on the left side etc. (e.g. head of department in the seniority principle)  he makes the conclusion at the end of the meeting Slide44:  Chart No. 40 Thai Culture in Management Jaruwan Krengvittaya-Greilich How to make out the Senior Officer during the appointment? 1 Door Door 1 1 3 5 2 4 7 9 11 6 8 10 5 6 2 4 3 8 7 Slide45:  Chart No. 41 Thai Culture in Management Jaruwan Krengvittaya-Greilich Basically, the workers, not impelled by the Calvinist work ethic of western industrial society, felt their responsibilities lay with their family and friends. Their family, social and religious obligations were paramount. Within this framework it was understandable that the workers would take their allowed “sick time”, whether they were sick or not, to take care of “personal business”. This might involve helping a friend prepare food for a wedding or merit ceremony; a visit to a sick relative; or a shopping expedition with a cousin just arrived from up-country. Allegiance, obligation and responsibility lay elsewhere than to the boss, job, factory. Social controls, which might operate effectively in a family or village context to assure conformity and obedience to traditionals norms of behaviour, were not transferred to the alien environment of a stop-gap cash job. More often than not, the employer will be told that the emergency trip back home will only be for a few days, and the employer waits patiently for the return. However, the intention is not to return, but, by this means, the employee avoids the embarrassment and conflict attendant on a direct, face to face avowal of a complete break. Slide46:  Chart No. 42 Thai Culture in Management Jaruwan Krengvittaya-Greilich E.g. the employee wants to avoid any uncomfortable emotional confrontation or actions that might hurt another person´s feelings. Sometimes, he or she will return many months or a year later, smiling and with deference, quite ready to continue employment as if nothing had happened. Given the Thai and farang (= foreigner), cultural road signs, it is understandable that the farang employer is hurt and puzzled because he or she cannot understand the indirect actions of their employees. The employees, on their part, feel they are being kind considerate and deferential in not overtly and directly breaking the relationship. For farangs, who are often somewhat uncomfortable in a master-employee relationship, the shock of perceived betrayal or ingratitude is often traumatic. The employee is treated often as a friend. He or she may be perplexed at being treated as a friend but will not feel the obligations, responsibilities or duties as a friend. Separation is easy. The benefits, other than cash, are received as the noblesse oblige duty of a wealthy superior. Slide47:  Chart No. 43 Thai Culture in Management Jaruwan Krengvittaya-Greilich Given the psychological imperative to avoid social confrontation, the employee will not bring grievances openly to the employer. The employee may smile, sulk, have an upset stomach, all to cover annoyance, anger, hurt. The sudden announcement that an employee is leaving within a few hours because of the ubiquitous grandmother´s imminent death may hide months of displeasure with the employer and job that had never been articulated. The farang may also been puzzled when approached for a loan just a few days after the employee has received his or her monthly salary. The employee, in all likelihood, has sent the major portion of the salary to the parents back in the village. It is back in the village where the obligations lie. While Thai employers will not treat their employees as friends, they will often say they have treated them as one of the family, as a child, a cousin. Whether this is a rationalisation or not, the employee does not view the relationship in this context and does not feel the obligations. Such non-cash benefits are received and viewed as one´s due. Thus, the Thai employer may also feel that ingratitude and irresponsibility have been shown. However, the Thai employer will in most cases “act out the play” and understand and accept the methods use. Slide48:  Chart No. 44 Thai Culture in Management Jaruwan Krengvittaya-Greilich A non-verbal communication, through symbolic gestures, has been principally described in terms of the signals used to differentiate respective positions on the socio-cultural ladder of status, prestige, seniority, and power. The wai, the prayer-like raising of the palms pressed together, which the Thai use not only to greet but to clarify the relative status and respect accorded to the parties concerned. Whether the hands are raised to the forehead, chin, chest, or even vaguely fluttered below that line, while the head and shoulders are similarly lowered or held erect, tells us volumes in well understood mime. How the Thai stand, sit, walk past someone, all have the clarity of semaphore flag language in terms of ‘social definition’. When, in the presence of a superior or one to whom respect should be accorded because of his status, the Thai keep a respectful distance and tend to hunch over slightly to allow the one revered to be relegated both symbolically and physically, to a higher plane.If officials are involved in such pantomime, subordinates will crouch slightly with hands cupped just below their waistline. Slide49:  Chart No. 45 Thai Culture in Management Jaruwan Krengvittaya-Greilich When one passes a superior on a stairway or sometimes even on the street one should, depending on the social distance involved, stop, stand at attention, and even make a slight bow with the head. This is to indicate respect. Farang will often cringe more than their servants when the ladder crawl on their knees as they serve food or work in the presence of their employers. It only causes psychological confusion and discomfort to the Thai servant, as well as diminution of respect. Ritual forms are maintained in Thailand intact. Even sitting can be complicated. One of the first cultural warnings are given when arrive in Thailand is not to point with their feet and, thus, abstain from sitting cross-legged. While this habitual western form of sitting is often impossible forego, one should try to avoid one’s slightly raised foot pointing directly to a Thai or group of Thais. While sitting on the floor, the culturally appropriate posture of women, and sometimes men, depending on the status of those present, is to sit with both legs folded back to one side. Slide50:  Chart No. 46 Thai Culture in Management Jaruwan Krengvittaya-Greilich Even how one sleeps has symbolic significance. For Thai, during sleep, the head should not face the west, with its obvious negative life force connotations. Generally, one should preserve a proper distance during conversation, varying to a degree depending on one’s status and position. Even among friends it is not deemed suitable to stare directly into another’s eyes for more than a brief moment or to touch or hold on to one’s friend’s arm or place a hand around his shoulders. Whether in elevators, buses, cocktail parties or conference rooms, the tendency is to avoid too close contact, to keep ‘one’s distance’. Body languages gestures are not the only sources of non-verbal communication. Ceremonial clothing and body decoration function to indicate rank, status, religious, tribal, clan affiliation and identification. Slide51:  Chart No. 47 Thai Culture in Management Jaruwan Krengvittaya-Greilich Cross cultural studies show not only market differences as to the institutional responses to resolving conflicts but in the positive and negative values given to avoidance of conflict and social confrontation. To the farang (= foreigner), confrontation and conflict are the norm. In Thai society, on the other hand, a positive value is given to avoiding confrontation and even the overt expression of anti-social emotions such as anger, hatred and annoyance. One of the most effective methods dealing with conflicts is to assure they do not occur at all. However, despite the Thai penchant for avoidance of confrontation, conflicts do arise which demand a response. In such cases, the Thai will seek to compromise the issue, e.g. if an accident occur on the crowed streets of Bangkok, the two parties may compromise on the spot, or, if agreement is not reached, a compromise will be encouraged by the police. The court will be the last resort. Many cases, even after the court procedure has begun, will be settled in the judge´s chambers on the basis of a compromise solution. Slide52:  Chart No. 48 Thai Culture in Management Jaruwan Krengvittaya-Greilich The spirit world may also be used to cool "hot hearts" and to apportion blame. Family quarrels may be muted since, if they become too acerbic, they may offend the family spirit and, thus, bring ill fortune to one and all. Generally, Thai patterns of resolving conflicts result in minimal grievance tension, a term used by anthropologists to denote the sense of grievance harboured by the party at fault in a dispute. If grievance tension is not kept to an acceptable level, future conflicts will arise. A means of resolving conflicts that implies more direct confrontation involves a swearing by oath ceremony, called "saban" in Thai. In urban Thailand, adversaries may be challenged as to whether they will "saban", or swear, whether they committed this or that wrong. If he refuses, guilt is established in the eyes of the community. If he agrees and falsely swears, then the wrath of the angels and spirits will cause him grave injury and even death. Slide53:  Chart No. 49 Thai Culture in Management Jaruwan Krengvittaya-Greilich Of course, the indirect methods of solving conflicts may sometimes be unproductive and grievance tension unreasonable high. At this point, the Thai may reap vengeance, either directly or indirectly. However, for the most part, the techniques of arbitration and compromise, of indirect accusation and voluntary restitution of wrongs, are successfully carried out. The farang must appreciate the bias of the Thai in using these techniques just as the Thai must appreciate the farang penchant for more direct confrontation, the use of the courts, and enforced punishment and restitution to the injured party. Slide54:  Chart No. 50 Thai Culture in Management Jaruwan Krengvittaya-Greilich During the past thirty years, Women´s Lib has tentatively tested the somewhat cool Thai political and cultural waters seeking equal rights and an end to legal discrimination. A law directed towards this end was officially promulgated to the dissolution of Parliament in October, 1976. Some injustices were righted and the legal rights, of men and women were placed on a more equal basis. However, despite the efforts of women Member of Parliaments and some gallant male supporters , the fight to have adultery of the husband listed as specific grounds for divorce was not successful. It is, however, clearly stated that the wife may seek a divorce on the grounds her husband ‘maintains, support or honours another women as though she were his wife’, legal terminology for the time-honoured “minor wife’ custom. As more Thai women become educated at the university level, both in Thailand and abroad, their expectations of a Thai husband´s behaviour will be bound to change. Such change in values on the part of Thai women will inevitably affect the cultural context in which judges render their decisions. Slide55:  Chart No. 51 Thai Culture in Management Jaruwan Krengvittaya-Greilich In 1993, the government, in reaction to pressure from women’s right groups, finally rescinded a regulation explicitly barring women from competing to become assistant district officers. After approval by the Civil Service Commission, it will be possible for women to become district officers. The opportunity for women to become provincial governors has also become official government policy. In the election in 2004 was a successful women in the Thai policy almost the winner for the most important position as a governor of Bangkok Metropolitan area. Women in Thailand have always been very active in business affairs, and as most foreigners know, it is the wife who usually handles house rental. Within the family, the wife will, more often than not, control the family purse strings and be responsible for the family budget. In some cases, she will actually dole out a daily allowance for her husband. One wonders if legal moonlighting activities and illegal corruption are not partly a means to obtain untraceable income for use by the husband. In terms of actually salary, Slide56:  Chart No. 52 Thai Culture in Management Jaruwan Krengvittaya-Greilich more and more families in Bangkok or in other big cities find the wife making a higher salary than the husband. Traditionally, the woman has deferred to the male in Thai society. It is said that men are comparable to the front legs of the elephant, women to the hind legs. The men think that they steer with the weak legs the life, however the women give the orders with the strong legs for the common life. But, as some people point out, the elephant seems to be walking backwards these days. One does not find Thai women today asking forgiveness for wrongs committed to their husbands in the traditional New Year`s forgiveness ceremony. Arranged marriages are a fast fading institution though girls will generally seek acceptance of their choice by their parents. If the parents refuse, there will be heartache and tantrums but usually acceptance of their parent´s decision. However, elopement is becoming more common. Slide57:  Chart No. 53 Thai Culture in Management Jaruwan Krengvittaya-Greilich Social scientists have pointed out the matriarchal bias of Thai society. Husbands, on marriage, must live for an initial period in the residence of the parents of the wife. Linguistically, there are the ubiquitous indications of matriarchal influence with mother compound words e.g.  mother of water = river,  mother of iron = magnet,  mother of cowries shell = head of a snake,  mother of strength = car jack and even  mother of force = military commander. Foreigners should appreciate both traditional patterns of male-female relationships as well as the changes in attitudes, values and customs that are affecting these relationships. Slide58:  Chart No. 54 Thai Culture in Management Jaruwan Krengvittaya-Greilich When Thai friends and their wives are invited by a farang-businessman to dinner, more often than not, only the husband would come. As for the wives, many have not been educated abroad and have little contact with foreigners. Thus, their English is wanting, and it is tiresome to spend an evening smiling sweetly and replying by set phrases to questions and views only vaguely comprehended. If a Thai wife is exceptionally at present, she does not take alcoholic drinks, and this would naturally take some of the social glow from a pre-dinner or after-dinner drink. Despite a number of invitations, the farang host was almost never invited to the house of his Thai guests. Sometimes, his Thai friends would invite him and his wife to a Chinese restaurant for a meal replete with good and never ending drink. Slide59:  Chart No. 55 Thai Culture in Management Jaruwan Krengvittaya-Greilich Many Thais live in far less grandiose homes than farang-businessmen their own. They are, therefore, somewhat embarrassed to invite such a distinguished guest to much humble surroundings. In many instances, the Thai home is more of a family compound, and a grandmother, uncle, a brother´s family may be hovering about. If one has a fair or passing command of the Thai language, a party with Thai friends can be even more of a delight. The Thais have an abiding curiosity abound and interest in language. Play on words, reversal of syllables, misunderstandings based on language or dialect peculiarities, all play a part in an evening´s entertainment. Slide60:  Chart No. 56 Thai Culture in Management Jaruwan Krengvittaya-Greilich A farang (= foreigner) should not be annoyed that Thais, who get a gift, e.g. on the occasion of an invitation to a wedding and dinner reception, had not had the courtesy to write a note of thanks for their gifts. If someone brought a gift, may be he would received with thanks or not but the gift would not opened. The puzzlement is understandable as in the West when one receives a gift one opens it with alacrity and expresses pleasure with the usual pomp and circumstances. The Thais, on the other hand, do not view it as proper to make such a public fuss of a gift. It is Thai culture, one should avoid showing too much emotion and should maintain an emotional equilibrium. Status and seniority can be both as a blessing and a burden where gift given is concerned. E.g. professors and specially a Faculty Dean receive many gifts from their disciples. Although they would try to discourage gifts being brought, e.g. on New Year´s day, it would be difficult to break this custom. Slide61:  Chart No. 57 Thai Culture in Management Jaruwan Krengvittaya-Greilich One of the most difficult Thai concepts for foreigners to comprehend is the behaviour pattern defined as krengjai. Often is to hear for translation of this word: „There is no English word because the foreigners do not krengjai“. Linguistically, the word is a compound composed of two separate words, kreng meaning to be in awe of, to fear and jai, meaning heart. When made into the compound krengjai, the word has the meaning of being reluctant to impose upon, to have consideration for. It is important to realise that krengjai must refer to an attitude toward someone else. In Thai society, with its emphasis on ‚social place‘ as expressed in elder-younger, subordinate-superior, patron-client-relationships, krengjai is, most often, an attitude displayed towards one higher in the rank, social status or age scale. It is difference, deference and consideration merged with respect. It is also proper and appropriate behaviour. To the foreigner with his emphasis on equality, frankness, and directness, the tendency to show deference and avoid imposing upon someone often appears to indicate a lack of initiative, weakness and subservience. Slide62:  Chart No. 58 Thai Culture in Management Jaruwan Krengvittaya-Greilich These qualities are ones which will hardly recommend one for advancement in the foreigner business world. Often, one will hesitate to visit someone at his house or invite him to a social function due to a reticence to impose on the elder or superior. This would not apply where the presence of the superior or elder is required for status purposes and is recognised as appropriate and acceptable to both parties as at a marriage ceremony. Krengjai is also observed in one‘s reticence to seek help or ask for something desired from a superior unless it is absolutely necessary. One may display similar reticence towards a friend or those of equal status if that person has already been especially generous or helpful. Such patterns of traditional Thai behaviour may be seen to be in transition as students argue with their teachers, labourers strike against management, civil servants protest against discrimination by their superiors. Traditional patterns of behaviour also break down in the modernised, technological world of business, however, the emotional strain and stress attendant on the change cannot be discounted. Slide63:  Chart No. 59 Thai Culture in Management Jaruwan Krengvittaya-Greilich Sanuk may be visualized as one of the closely interwoven threads, although a brightly coloured one, that gives shape to the intricate design of the Thai cultural fabric. Sanuk provides other signposts in the complicated maze of Thai culture. In a society where individualism constantly has to sublimate itself to the demands of social place, sanuk provides a respite, a release from the socially enforced constraints and demands imposed by the acceptance of one´s place in the social hierarchy. Sanuk – like fun and games – provides welcome relief from the tensions, pressures, and frustration attendant on this never-ending accommodation to power and hierarchy. Sanuk provides a highly valued mechanism for maintaining harmonious non-threatening social relations. In a pervasive atmosphere of jollity confrontation is easily avoidable. Thais become psychologically uncomfortable in face of overt expressions of hatred, annoyance, displeasure. Sanuk, on the other hand, provides the necessary social atmosphere for the heart to beat to a serene tempo and remain cool. Slide64:  Chart No. 60 Thai Culture in Management Jaruwan Krengvittaya-Greilich The Thai intelligentsia, on their part, have developed an amusing variation to the serious debate (to wathi), i.e. competition in damning with faint praise; a challenge as to who can be the most critical through the medium of excessive flattery and praise. Such irony is viewed to be less threatening than direct criticism. In rural Thailand, there is usually no sharp distinction between work and fun. Heavy agricultural tasks are often accompanied by music, songs, flirting, amusing repartee. The burden is somehow lightened as the mind, if not the body, escapes the arduous physical activity at hand. The Thais, as good Buddhists, appreciate that suffering is inevitable. One can ultimately overcome such suffering only by eliminating craving for that which is transitory. Thus, one must avoid attachment, emotional or material. In this context, the Thai tend to fun provides a necessary comic relief to the tragedy of life´s suffering while, at the same time, providing a most effective means to maintain one´s emotional distance and detachment. Slide65:  Chart No. 61 Thai Culture in Management Jaruwan Krengvittaya-Greilich To have fun is emotionally undemanding. One shuns being serious. Today, Thais must face the issue of the social viability of such an escape and safety-valve mechanism as sanuk in an increasingly competitive, impersonal, urbanized society. Population pressure, unemployment, pollution, widespread use of drugs, and violent crime become facts of everyday life. In such an environment, sanuk can quickly degenerate into violence, gang welfare, drunken brawls and student riots at sports events. Nevertheless, sanuk still plays a crucial role in keeping confrontation at bay and fostering social harmony. The safety-valve and relief sanuk provides in the Thai cultural context must be maintained , at present, if society is not to disintegrate. Viable, culturally acceptable alternative mechanism have yet to be devised. Slide66:  Chart No. 62 Thai Culture in Management Jaruwan Krengvittaya-Greilich “The face is lost when the individual, either through his action or that of other people closely related to him, fails to meet essential requirements placed upon him by virtue of the social position he occupies.” Definition: David Yau-Fai Ho, Hong Kong Basically, “face” describes the proper relationship with one´s social environment, which is as essential to a person and that person´s family as the front part of his/her head. The importance of face is the consequence of living in a society that is very conscious of social context. Collectivist cultures make more-or-less similar statements, like in Greece, for example, the word “philotimos” exists. Triandis writes: “A person is “philotimos” to the extent to which he conforms to the norms and values of his in-group. These include a variety of sacrifices that are appropriate for members of one´s family, friends, and others who are concerned with one´s welfare.” Slide67:  Chart No. 63 Thai Culture in Management Jaruwan Krengvittaya-Greilich Collectivist societies are shame cultures, individualist societies, on the contrary have been described as guilt cultures. In Asia applies the regular: “Give face, never take face, save face by yourselves.” The anxiety of “lost face” is widespread in Asia: • in China as “diào niân” or “shimian” (lost face), • in Korea as “shemion oll il ta” (lost face), • in Japan as “mentsuwo uschinau” (lost fac

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