Download MGMT 371: Week 4

MGMT 371:
Global Management
I.
Managing Across Cultures
A. Cultural Influences
B. Cultural Dimensions
C. Expatriates/foreign assignments
Cultural Influences on
Organizational Behavior
Organizational
culture
 Economic/technological
setting
 Political/legal
setting
 Ethnic
background
 Religion
Societal Culture
 Customs
 Language
 Personal
values/ethics
 Attitudes
 Assumptions
 Expectations
Organizational
behavior
I. Managing Across Cultures
 Ethnocentrism
 Cultural
Intelligence
 Project GLOBE: Nine Dimensions
 Individualistic vs. Collectivist
 Monochronic vs. Polychronic
 High Context vs. Low Context
 Interpersonal Space
Ethnocentrism
Who’s
guilty?
What are the effects?
What can managers do?
Cultural Intelligence (CQ)
“An
outsider’s seemingly natural
ability to interpret someone’s
unfamiliar and ambiguous gestures
the way that person’s compatriots
would.”
Innate or learned?
Cultural Intelligence (CQ)
Dimensions:
– Cognitive
– Physical
– Emotional/motivational
Cultural Dimensions from the
GLOBE Project
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Power Distance
Uncertainty Avoidance
Societal Collectivism
In-group Collectivism
Gender Egalitarianism
Assertiveness
Future Orientation
Performance Orientation
Humane Orientation
.
Individualism vs. Collectivism
Collectivist
Individualistic


“I” and “Me” cultures
Priority given to individual
freedom and choice
–
–
–
–
–
Israel
Romania
Nigeria
Canada
United States
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“We” and “Us” cultures
Rank shared goals higher
than individual desires
and goals
Subordinate their own
wishes and goals to those
of the relevant social unit
–
–
–
–
–
Egypt
Nepal
Mexico
India
Japan
.
High vs. Low Context Cultures
Low-Context
High-Context

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Establish social trust first
Value personal relations and
goodwill
Negotiations slow and
ritualistic
– Chinese
– Korean
– Japanese
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
Get down to business
first
Value expertise and
performance
Agreement by specific,
legalistic contract
Negotiations as efficient
as possible
– Germany
– Scandinavia
– US
.
Cultural Dimensions:
Hofstede-Bond Studies
Power Distance
Extent people expect inequality
(hierarchy) in social institutions
IndividualismCollectivism
How loose or tight the bond
between individuals and societal
groups
MasculinityFemininity
Extent people embrace competitive
masculine traits, or nurturing
feminine traits
Cultural Dimensions:
Hofstede-Bond Studies
Uncertainty Avoidance Extent people prefer structured vs.
unstructured situations?
Long-Term vs. ShortTerm Orientation
Extent are people oriented toward
the future by saving and being
persistent vs. being oriented
toward the present and past by
respecting tradition and social
obligations
Expatriates / Foreign Assignments
4
STAGE CYCLE:
1. Selection and Training
2. Arrival and adjustment
3. Settling in / Acculturating
4. Returning / Adjusting
Why U.S. Expatriates Fail on
Foreign Assignments
1)
Spouse/family cannot adjust
2)
Manager cannot adapt to new
physical or cultural
surroundings
Lack of preparation/training
Manager not culturally
intelligent
Manager not technically
competent
Manager not motivated for
assignment
3)
4)
5)
6)