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Organizational Behavior: An Introduction to Your Life in Organizations Chapter 8 Cross-Cultural Relationships ©2007 Prentice Hall Preview • What characterizes Americans--what characterizes you—culturally? • Since Western business customs are accepted world wide, why should you study other cultures? • What cultural differences interest managers? • What do you need to know about developing business relationships with America’s most important trading partners? • What characterizes the successful individual working overseas? • How can you develop cross-cultural skills? • What should companies do to support their expatriates? • How should you prepare for a short-term international assignment? ©2007 Prentice Hall Culture • Culture is a set of shared beliefs and values about what is desirable in a community, and the set of behaviors and practices that support these values • National culture includes the thoughts, emotions and behaviors rooted in common values and societal conventions of a particular society ©2007 Prentice Hall What characterizes Americans--what characterizes you—culturally? • Open discussion is encouraged and valued • Decision are made in meetings • Everyone in the group has input • Conflict is positive • Friendly and open but impersonal work relationships • Want to achieve high efficiency at work ©2007 Prentice Hall Since Western business customs are accepted world wide, why should you study other cultures? • The Western business customs that count the most are not accepted world wide • Typically it is only the superficial customs that have been adopted • Rarely do they think about these behaviors the same way you do ©2007 Prentice Hall What cultural differences interest managers? • • • • • Perceptual differences Non-verbal differences Differences in attitudes and values Personality differences Differences in psychological contracts ©2007 Prentice Hall Perceptual differences High context cultures rely extensively on situational cues; low context cultures rely extensively on explicit codes ©2007 Prentice Hall Monochronic and polychronic cultures • Polychronicity: the preference for having multiple activities occurring at the same time • Monochronicity: the preference for scheduling tasks separately and for focusing on just one task at a time ©2007 Prentice Hall Non-verbal differences • Each non-verbal behavior sends a message that can mean something different in the other culture than it does in yours nothing in your culture, but something in theirs the same thing in their culture as in yours ©2007 Prentice Hall Differences in attitudes and values • Economic development is associated with shifts away from rigid values towards values that are increasingly rational, tolerant, trusting and participatory • The broad cultural heritage of a society remains • Consider differences in: The value of work in a person’s life Values in the workplace Incidence of corruption ©2007 Prentice Hall Personality differences • The relationship of self-esteem to life satisfaction is stronger in individualistic countries than in collectivist countries • The Big Five personality trait of openness/adventurousness predicts success in cross-cultural training performance ©2007 Prentice Hall Differences in psychological contracts • Main societal influences on work behavior are: the laws governing the employer-employee relationship the existence of legal protections for employees the existence of a market economy the power of the government relative to business the right to engage in collective bargaining ©2007 Prentice Hall Canada • Multicultural society in which the two dominant subcultures are the English Canadians and the French Canadians • Similar in many ways to the U.S. ©2007 Prentice Hall The People’s Republic of China • Highly export-oriented • Companies are likely to be strongly paternalistic • Employees appear to be more compliant than committed • One of the most in-group collective countries • The concepts of face and guanxi are important ©2007 Prentice Hall Mexico • Invisible caste system exists • Management decision making is more paternalistic, authoritarian, and hierarchical • Encouraging participation is seen as a weakness • Business is based highly on personal relationships ©2007 Prentice Hall Japan • Ranks number one in being aggressive, competitive, and interested in acquiring money and things • Long-term oriented, strongly prefer to avoid uncertainty, respect propriety and order, relatively collectivist • Base interpersonal relationships on the concept of amae • In groups and organizations, Japanese deemphasize the individual ©2007 Prentice Hall The Federal Republic of Germany • Highly structured society • Business and government work closely together • A vast welfare state • Individuals tend to be organized, disciplined and unspontaneous • Germans are formal and conservative when doing business ©2007 Prentice Hall What characterizes the successful individual working overseas? • • • • • General professional qualifications Interpersonal skills Individual traits Realistic pre-departure expectations If married, has a spouse who has similar qualifications • Language ability ©2007 Prentice Hall How can you develop cross-cultural skills? • • • • • • • Use the Big Five personality theory Understand your tolerance for ambiguity Evaluate differences in values Gain experience Attend cross-cultural training Develop cultural intelligence Understand culture shock ©2007 Prentice Hall Use the Big Five personality theory • Consider the fit of your predispositions to a particular culture • In general, a score on the Big Five personality traits that suggests a person is adventurous and agreeable works best ©2007 Prentice Hall Understand your tolerance for ambiguity • Will likely do better if: Like complicated problems Enjoy lack of schedule or routine Deal well with incomplete information Like to show initiative and originality ©2007 Prentice Hall Evaluate differences in values • People whose identity rests on values like equality and social justice risk harming their self-image in cultures that do not hold similar values • Foreign nationals who must adjust to the U.S. culture must also pay attention to the different values they find here ©2007 Prentice Hall Develop cultural intelligence • The ability to “think about thinking,” and to develop and expand your behavioral repertoire, often on the spot • Observe cues to the other person’s behavior and assemble them to make sense of what the other person is actually experiencing • Have the motivation to persist in their attempts to understand the other person • Choose and execute the right actions to respond appropriately ©2007 Prentice Hall Understand culture shock A sense of disorientation in interpreting the myriad unfamiliar environmental, business, and social cues they encounter ©2007 Prentice Hall Gain experience • Travel to other countries and having international contacts count, but living there for extended periods is even better • Use a cultural interpreter, a person who can explain to you the psychological and social basis of local behaviors and attitudes ©2007 Prentice Hall Attend cross-cultural training • A cultural assimilator teaches you about elements in the culture that are likely to be challenging • Role-plays • Simulations • Field visits ©2007 Prentice Hall What should companies do to support their expatriates? • Put in place human relations policies and practices that will help their expatriates achieve job satisfaction • Go out of their way to encourage their expatriates to develop strong work-related interpersonal relationships and networks ©2007 Prentice Hall How should you prepare for a shortterm international assignment? • • • • Learn key phrases in the host language. Learn the essential faux pas to avoid. Learn the friendly gestures that are expected. Learn the key business customs, especially those related to decision making, negotiation, and entertaining. • Identify a cultural interpreter here at home and pick his or her brain. • Learn as much as you can about the country • Rest up beforehand, anticipate jet lag, relax and enjoy the trip ©2007 Prentice Hall Apply what you have learned • World Class Company: Lincoln Electric’s Cultural Lessons from International Expansion • Advice from the Pro’s • Gain Experience • Can you solve this manager’s problem? ©2007 Prentice Hall Summary – What characterizes Americans--what characterizes you—culturally? • Culture is a set of shared beliefs, values and practices • It is important to understand the differences and similarities between how Americans and others do business ©2007 Prentice Hall Summary – Since Western business customs are accepted world wide, why should you study other cultures? • Western business customs are not accepted worldwide, and cultural differences can get in the way of effective communication ©2007 Prentice Hall Summary – What cultural differences interest managers? • • • • • Differences in perceptions Non-verbal behaviors Attitudes and values Personalities Psychological contracts ©2007 Prentice Hall Summary – What do you need to know about developing business relationships with America’s most important trading partners? • Study any culture you are likely to do business with • The countries with which the U.S. trades the most are Canada, Mexico, China, Japan and Germany ©2007 Prentice Hall Summary – What characterizes the successful individual working overseas? • Professional credentials appropriate to the job • Interpersonal skills • Individual flexibility and other personality traits • Realistic expectations • Language capability • If married, a spouse with similar traits ©2007 Prentice Hall Summary – How can you develop cross-cultural skills? • • • • • Gain international experience Identify a cultural interpreter Understand your tolerance for ambiguity Get cross-cultural training Understand culture shock ©2007 Prentice Hall Summary – What should companies do to support their expatriates? • Everything they can to ensure that their expatriate employees: develop job satisfaction supportive colleagues and networks ©2007 Prentice Hall Summary – How should you prepare for a short-term international assignment? • Learn some key phrases in the host language • know faux pas to avoid • Master essential business customs ©2007 Prentice Hall