4
International Chapter Management and Cross-Cultural Competence
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4-1
Chapter Outline
Global Organizations for a Global Economy
The Internationalization Process From Global Companies to Transnational Companies
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Chapter Outline
(continued)
Toward Greater Global Awareness and Cross-Cultural Competence
Travelers versus Settlers Contrasting Attitudes Toward International Operations The Cultural Imperative
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4-3
Chapter Outline
(continued)
Comparative Management Insights
Applying American Management Theories Abroad Ouchis Theory Z: The Marriage of American and Japanese Management A Cross-Cultural Study of Work Goals An International Contingency Model of Leadership
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4-4
Chapter Outline
(continued)
Staffing Foreign Positions
Why Is the U.S. Expatriate Failure Rate So High? Cross-Cultural Training What about North American Women on Foreign Assignments? Relying on Local Managerial Talent
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GLOBAL ORGANIZATIONS FOR A GLOBAL ECONOMY The Six-Stage
Stage 1: Stage 2: Stage 3: Stage 4: Stage 5: Stage 6:
Internationalization Process
Licensing Exporting Local warehousing and selling Local assembly and packaging Joint ventures Direct foreign investments
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GLOBAL ORGANIZATIONS FOR A GLOBAL ECONOMY
(continued)
Global company: a multinational venture centrally managed from a specific country. Transnational company: a global network of productive units with a decentralized authority structure and no distinct national identity. For Discussion: Why are some people alarmed at the development of transnational companies? What is your opinion?
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CONTRASTING ATTITUDES TOWARD INTERNATIONAL OPERATIONS Ethnocentric attitude: home-country oriented
(My culture and ways are superior.)
Polycentric attitude: host-country oriented
(When in Rome, do as the Romans Do.)
Geocentric attitude: world-oriented (Search the
globe for the best talent.)
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CONTRASTING ATTITUDES TOWARD INTERNATIONAL OPERATIONS
(continued)
For Discussion:
1. What evidence of an ethnocentric attitude have you observed lately? 2. What problems will ethnocentric managers have in the new global economy?
4-9
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Figure 4.1 The Evolution of Theory Z Organizations (a)
Source: From Theory Z: How American Business Can Meet the Japanese Challenge by William Ouchi. Copyright 1981. Reprinted by permission of Perseus Books Publishers, a member of Perseus Books, L.L.C. Copyright Houghton Mifflin Company. All rights reserved.
4-10
Figure 4.1 The Evolution of Theory Z Organizations (b)
Source: From Theory Z: How American Business Can Meet the Japanese Challenge by William Ouchi. Copyright 1981. Reprinted by permission of Perseus Books Publishers, a member of Perseus Books, L.L.C. Copyright Houghton Mifflin Company. All rights reserved.
4-11
THE CULTURAL IMPERATIVE Culture: the pattern of taken-for granted
assumptions about how a given collection of people should think, act, and feel as they go about their daily affairs. For Discussion: What are the largely unspoken cultural rules for student behavior in the typical classroom in your native country?
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4-12
THE CULTURAL IMPERATIVE
(continued)
High-context cultures: people rely heavily on
nonverbal and subtle situational messages when communicating with others. used to convey primary meaning.
Low-context cultures: spoken and written words are For Discussion: How much emphasis do you put on
precise wording, formal contracts, and legal obligations in your business affairs? How is this an expression of your culture?
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OTHER SOURCES OF CULTURAL DIVERSITY
Time monochronic time: perception of time as a straight line broken into standard units. (Time is money. It is spent, saved, or wasted.) polychronic time: perception of time as flexible, elastic, and multidimensional.
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OTHER SOURCES OF CULTURAL DIVERSITY
(continued)
Interpersonal space Language Religion
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4-15
OTHER SOURCES OF CULTURAL DIVERSITY
(continued)
For Discussion:
1. Do you tend to be monochronic polychronic? or Explain. How well do you deal with people who have the opposite orientation toward time?
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4-16
OTHER SOURCES OF CULTURAL DIVERSITY
(continued)
For Discussion:
2. How close is too close when you are carrying on a business conversation with a stranger?
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4-17
OTHER SOURCES OF CULTURAL DIVERSITY
(continued)
For Discussion:
3. How important is it to have a mastery of the local language when doing business in a foreign country?
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4-18
SURVEY OF HOFSTEDES CULTURAL DIMENSIONS
Instructions: Rate yourself on each of the four dimensions by
circling a response. Next, rate your native culture by drawing an X through the appropriate response.
Power distance: How readily do individuals accept the
unequal distribution of power in organizations and institutions?
Low power distance (equality)High Power distance (rank)
1----2----3----4----5----6----7----8----9----10
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4-19
SURVEY OF HOFSTEDES CULTURAL DIMENSIONS
(continued)
Uncertainty avoidance: How threatening are uncertain and ambiguous situations, and how important are rules, conformity, and absolute truths?
Avoid uncertainty (rules) Accept uncertainty (chance)
1----2----3----4----5----6----7----8----9----10
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4-20
SURVEY OF HOFSTEDES CULTURAL DIMENSIONS
(continued)
Individualism-collectivism: Are people responsible for their own welfare within a loosely knit social framework, or does the group look out for individuals in exchange for loyalty?
Personal responsibility Collective responsibility
1----2----3----4----5----6----7----8----9----10
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SURVEY OF HOFSTEDES CULTURAL DIMENSIONS
(continued)
Masculinity-femininity: How important are masculine attitudes (assertiveness, money and possessions, and performance) versus feminine attitudes (concern for people, the quality of life, and the environment)?
Masculine attitudes Feminine attitudes
1----2----3----4----5----6----7----8----9----10
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SURVEY OF HOFSTEDES CULTURAL DIMENSIONS
(continued)
For Discussion:
1. How well does your personal profile match your native culture profile? 2. How will your personal profile help (or hinder) your career as a manager?
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WORK GOALS SURVEY
Instructions: Rank the following eleven workrelated goals from 1 = most important to you to 11 = least important to you. Rank Interesting work ____ Pay ____ Job Security ____ Match between person and the jo...