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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 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 “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 Establish social trust first Value personal relations and goodwill Negotiations slow and ritualistic – Chinese – Korean – Japanese 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)