Chapter © 2008The McGraw-Hill Companies, Inc. All rights reserved. International OB: Managing...

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pter

© 2008The McGraw-Hill Companies, Inc. All rights reserved.

International OB: Managing Across

Cultures

4

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

© 2008 The McGraw-Hill Companies, Inc. All rights reserved.

4-2

Ch. 4 Learning Objectives

1. Define the term culture, and explain how societal culture and organizational culture combine to influence on-the-job behavior.

2. Define ethnocentrism, and distinguish between high-context and low-context cultures.

3. Identify and describe the nine cultural dimensions from Project GLOBE.

4. Distinguish between individualistic and collectivist cultures, and explain the difference between monochronic and polychronic cultures.


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Ch. 4 Learning Objectives

5. Specify the practical lesson from the Hofstede cross- cultural study.

6. Explain what Project GLOBE researchers discovered about leadership.

7. Explain why US managers have a comparatively high failure rate on foreign assignments.

8. Summarize the research findings about Northern American women on foreign assignments, and tell how to land a foreign assignment.

9. Identify four stages of the foreign assignment cycle and the OB trouble spot associated with each.


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CultureCulture is: a set of beliefs and values about how people should and do actIt involves “taken for granted assumptions”•We do not

understand that we do not understand


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Cultural Influences on OB

Economic/technological

setting

Political/legal setting

Ethnic background

Religion

Societal Culture

Customs

Language

Personal values/ethics

Attitudes

Assumptions

Expectations

Organizational culture

Organizational behavior

Figure 1


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Your Experience

I have worked with people of other cultures at work or school.•A=Yes, B=No

I have experienced a conflict or been frustrated when working with people of other cultures.•A = Yes, B=No


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Your Experience

The conflict I experienced was due to cultural differences.•A=Yes, B=No, C= I don’t know

Learning about different cultures is interesting to me.•1=Strongly Disagree, 3=

Neutral, 5= Strongly Agree


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Ethnocentrism: A Cultural Roadblock

Ethnocentrism is the belief that one’s native country, culture, language, and modes of behavior are superior to all othersHow do you overcome this?


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Cultural IntelligenceCultural intelligence The ability to interpret ambiguous cross-cultural situations accurately. Involves:Recognizing different values and practicesUnderstanding the meaning of others’ actionsPerspective on one’s own ways


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Test Your Knowledge

A high performing manager was chosen for a foreign assignment. She tells a colleague “I plan on just doing business the way I always do. Why change what works?” People in the new culture may perceive her to be….a.Ethnocentricb.Culturally intelligent


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High vs. Low Context Cultures

High-ContextRely heavily on situational cues for meaningWhat characterizes high-context cultures?What countries have high-context cultures?

Low-ContextMeaning is derived from the written and spoken wordWhat characterizes low-context cultures?What countries have low-context cultures?


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Contrasting High-Context & Low-Context Cultures


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Cultural Dimensions from the GLOBE Project

Power DistanceUncertainty AvoidanceInstitutional CollectivismIn-group CollectivismGender EgalitarianismAssertivenessFuture OrientationPerformance OrientationHumane Orientation


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Countries Ranking in GLOBE Dimensions


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Individualism vs. Collectivism

Individualistic“I” and “Me” culturesPriority given to individual freedom and choiceExample countries?

Collectivist“We” and “Us” culturesRank shared goals higher than individual desires and goalsSubordinate their own wishes and goals to those of the relevant social unitExample countries?


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Cultural Perceptions of Time

MonochronicPreference for doing one thing at a time because time is limited, precisely segmented, and schedule driven.What characterizes monochronic cultures?What countries have monochronic cultures?

PolychronicPreferences for doing more than one thing at a time because time is flexible and multidimensional.What characterizes polychronic cultures?What countries have polychronic cultures?


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Interpersonal Distance Zones

12.0

4.0

1.5

0US

In

terp

ers

on

al Z

on

es

(dis

tan

ce in f

eet)

Public

Social

Personal

Intimate

Arab Asian + Latin

American Cultures

North American

+ Northern European

Figure 4-3


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Test Your Knowledge

Cultures in which people tend to get right to the point would be considered:a.Polychronicb.Proxemicsc. High contextd.Low context


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Cultural Dimensions: Hofstede Study

Does the person embrace stereotypically competitive, masculine traits or nurturing, feminine traits?

Masculinity-Femininity

How loosely or closely is the person socially bonded?

Individualism-Collectivism

How much do people expect inequality in social institutions?

Power Distance

How strongly does the person desire highly structured situations?

Uncertainty Avoidance


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Test Your Knowledge: How did the US score?

A= True, B= False1.The US scored relatively high

in individualism.2.The US scored high in

femininity.3.The US scored low on

uncertainty avoidance.


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Leadership Attributes - GLOBE


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Foreign Assignments

Would you consider taking a foreign assignment for a 6 months to 1 year duration?•A=Yes, B=No

Expatriates – Anyone living or working in a foreign country


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Why U.S. Expatriates Fail on Foreign Assignments

Personal and family adjustment problems HomesicknessLack of:

• Cultural adaptability• Patience • Flexibility and • Tolerance for other’s

beliefs


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North American Women on Foreign Assignments

Proportion of female expatriates has grownBarriers: Self-disqualification and assumption that women would not be welcomedViewed as foreigners first, then as women


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Tips for Landing a Foreign Assignment

While in school, pursue foreign study opportunities and become fluent in one or more foreign languagesFrom first interview, clearly state your desire for a foreign assignmentBecome very knowledgeable about foreign countries where you would like to workNetwork with expatriates in your companyBe visibleStay informed about company’s international strategies and programsPolish your cross-cultural communication skills


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The Foreign Assignment Cycle (with OB Trouble Spots)

1. Selection & training

“unrealistic expectations”

2. Arrival & adjustment

“culture shock”

3. Settling in & acculturating

“lack of support”

4. Returning home &

adjusting “reentry

shock”

Home Country Experiences

Foreign Country

Experiences

Reassignment

Figure 4-4


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Key Cross-Cultural Competencies


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Test Your Knowledge

When Peter becomes aware of practices different than his own, he tries to perceive things in a different cultural context. He also reminds himself to look at his own practices from the perspective of those from different cultures.Based on this vignette, is Peter demonstrating cross-cultural competence?•A. Yes•B. No

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© 2008The McGraw-Hill Companies, Inc. All rights reserved.

Supplemental Slides

4

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Video Cases

Cirque du SoleilDisney Imagineering


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Management in the MoviesGung Ho – “Assan Motors”

In this scene, Stevenson has finally found his meeting with the Assan Motors executives. He sets up and begins his proposal to bring Assan Motors to Hadleyville.What would you have done differently than Stevenson?What decisions should the executives consider before opening a plant in the U.S.?


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Managers Hot Seat: Let’s Break a Deal

Characters:• Michael Sokolow - Mustang Jeans - US• Norio Tokunaka - Popwear - Japan

Which cultural differences played a major role in this interaction?Both individuals acted according to their cultural norms. Who should have the responsibility for changing their style to work most effectively?


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Tips for Business Traveler’s

Make Packing a Reflex Action• Pack the same items in the same way for every

trip

Get Briefed• Research latest economic and business

information on the country you’re visiting

Stick to top Business Hotels• They have excellent business centers; health

clubs; and prestige that has influence with locals

Source: McGovern, P. (2007, April) How to be a Local, Anywhere, Inc. Magazine


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Tips for Business Traveler’s

Arrive Early• Take a day or two to walk around and get “in

tune” with the people, pace, and culture

Bear Gifts• In Asia, Latin America, and Africa present your

host with a simple gift

Practice Humility• Don’t boast about your company or

accomplishments• Talk about your children and their’s and your

participation in philanthropic activities


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Ethical Dilemma: China

China has an immense patient population with a variety of health problems (cancer, diabetes, infectious diseases)• 160 million Chinese people have the hepatitis

virus• China has 44% of the world’s total number of

cancer cases

Testing new drugs is less expensive and easier to recruit patients than in the US

Source: The Rush to Test Drugs in China, Bruce Einhorn, BusinessWeek, May 28, 2007


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Ethical Dilemma: ChinaChina US

1-day in hospital $40-$100 $750-$1,000

MRI $150-$300 $1500-$3000

Yearly Oncologist Salary

$40,000 & up $225,000 and up

Cost of new drug development

$120 million $1 billion



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Ethical Dilemma: China

But…..• People recruited into drug trials aren’t always

well-informed• Ethical questions regarding stem cell injections

and treatments that alter patient’s genes and trafficking human organs make China a less attractive option



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MTV International Strategy

“Mix youth sensibilities with local tastes”Don’t come across as a “cultural imperialist”Buy local businesses


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MTV: World TourCountries Subscribers 1st Qtr

2005 in Millions

MTV Asia 140.1

MTV Europe 125.1

MTV United States 87.6

MTV Russia 27.1

MTV Brazil 18.0

MTV Latin America 13.7

MTV Canada 0.8

MTV Japan 5.4

MTV Australia 1.0


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Test Your Knowledge: Culture Quiz

Which of the following is true?a. Chinese managers find U.S. workplaces

comfortable and natural.b. Chinese managers find interpersonal

communications to be more blunt than in China.c. Chinese CEO’s usually delegate more

responsibility to their subordinates than Americans expect.

d. Chinese managers are keenly aware of laws on sexual harassment and equal opportunity and are experienced at handling them.


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Test Your Knowledge: Culture Quiz - India

"So, does this agreement meet with your approval?" you finally ask your Indian business colleague across the table, after having spent several hours negotiating an important deal. You believe you are very close to an understanding but are disappointed that your Indian colleague begins shaking his head, indicating he does not agree with you. "What else can we do for you?" you ask, feeling let down and disappointed. "Nothing," he replies. How could this have gone so wrong?Taken from http://tools.monster.com/archives/culturequizzes/


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Test Your Knowledge: Culture Quiz – India (cont.)

A) Your problem comes from spending so much time at the table with your Indian colleague. In India, business meetings should last no more than one hour per session.

B) In business negotiations in India, agreements must be approved by all people affected by the agreement, which typically means many others who may not have been present at the preceding negotiations. Therefore, asking whether the agreement 'meets with your approval' at the end of the negotiations reflects your naiveté and caused your Indian colleague to lose respect for you.Taken from http://tools.monster.com/archives/culturequizzes/


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Test Your Knowledge: Culture Quiz – India (cont.)

c. Indian businesspeople usually never sign paper agreements at the end of a negotiation. This is typically left for the solicitor, or attorney, and occurs over a period of several months after the negotiations are over. You simply should not have asked the question.

d. You have an agreement; don’t worry! Your Indian colleague was not indicating disagreement to your question. You were misreading your Indian colleague’s nonverbal behavior. When Indians wobble their heads from side to side, in what sometimes looks like the 'no' sign to westerners, they are merely indicating they are listening thoughtfully to your statement. More often than not, it means they acknowledge and agree with what you are sayingTaken from http://tools.monster.com/archives/culturequizzes/


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Test Your Knowledge: Culture Quiz - Germany

You have made a trip to Frankfurt and you have been eager to see one particular client who has been difficult to meet, and you finally get an appointment for 9 a.m. the next day. However, on your way to the meeting, you hit terrible traffic, and arrive at your appointment 20 minutes late. The door is closed, and the meeting room is filled with a certain chilliness that surprises you. "After all," you think to yourself, "what is 20 minutes when I’ve come across the ocean? I guess they are just looking for a way out of doing business with me." The meeting never seems to get going after that.

Taken from http://tools.monster.com/archives/culturequizzes/


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Test Your Knowledge: Culture Quiz – Germany (cont.)

A. You are correct. They do not want to meet with you and are just using your lateness as an excuse to not do business with you.

B. They probably do want to meet with you but expect you to be able to stay for lunch: It is critical in Germany that all first meetings with new people include lunch.

C. It is an old-fashioned custom in some traditional businesses in Germany never to schedule meetings involving possible new ventures in the morning (as the morning is the time to get things done that are already needing attention, not new business deals, which might be risky). They probably do want to meet with you but are feeling a little put out that you did not call to let them know you were running late.

D. Germans organize their time carefully, so punctuality is an important character trait, and something they look for in judging potential business partners.


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Test Your Knowledge: Culture Quiz - Mexico

You are excited to finally be in Mexico City and meeting your colleague, Carlos Cantu. You extend your hand and say you are pleased to meet him. However, Cantu suddenly pulls you close to him and wraps you in a strong embrace. You are a bit shocked and withdraw. You are really put out when, after a wonderful dinner in a restaurant near the Zocalo later that evening, he takes your arm for a stroll down the street. You wonder what Cantu can be thinking.

Taken from http://tools.monster.com/archives/culturequizzes/


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Test Your Knowledge: Culture Quiz – Mexico (cont.)

A.Calm down. Cantu simply greeted you with a classic warm Mexican greeting: The abrazo, or embrace. It signals nothing more than genuine pleasure to know you. And, as a close associate with whom he feels he has developed trust, he is comfortable expressing his friendship by strolling after dinner with you, as friends might in Mexico, arm in arm. This is a very good sign.


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Test Your Knowledge: Culture Quiz – Mexico (cont.)

b. You did absolutely nothing wrong by quickly withdrawing from what was, perhaps for you, an uncomfortable and unusual indication of an unwanted advance.

c. Strolling arm in arm simply expresses his pleasure that you picked up the bill at the restaurant. In Mexico, if you did not pick up the bill, he would not have taken your arm. As for the embrace earlier in the day, think nothing of it. He was expressing happiness that you were taking him out to dinner later that night.


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What International Managers Like to Do

Variable U.S. Australia Italy

Leading employees

1 1 5

Controlling employees

10 9 9

Making decisions

6 6 6

Negotiating 7 7 3

Networking 2 2 1


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What International Managers Like to Do Cont.

Variable Japan Israel

Leading employees

1 3

Controlling employees

9 8

Making decisions

4 2

Negotiating

Networking

7

3

7

5


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Variable U.S. Australia Italy

Innovating 3 3 4

Monitoring 4 5 2

Informing others

5 4 7

Doing desk work

9 8 9

Handling time pressures

8 10 10


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Variable Japan Israel

Innovating 2 1

Monitoring 5 4

Informing others

6 6

Doing desk work

8 10

Handling time pressures

10 9


4-53

The Polychronic Attitude Index

Strongly

Disagree

Disagree

Neutral Agree

Strongly Agree

I do not like to juggle several activities at the same time.

5 4 3 2 1

People should not try to do many things at once.

5 4 3 2 1

When I sit down at my desk, I work on one project at a time.

5 4 3 2 1

I am comfortable doing several things at the same time.

1 2 3 4 5


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The Polychronic Attitude Index

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

Monochronic Polychronic


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Guidelines for Behavior & Ethics in Foreign Cultures:

Problems: Morally arrogantInsensitivity to local cultural traditions and tastes

Assumption: People in all cultures should follow one set of behavioral and ethical standards

Cultural Imperialism“The sun never set on the British Empire”

Respect for core human values, which determine the absolute moral threshold for all business activitiesRespect for local traditionsThe belief that context matters when deciding what is right and what is wrong

Guiding Principles for a Middle Ground

Problems: Morally inconsistentFosters “anything is okay” attitude

Assumption: Each culture is right in its own way; there are no international or universal standards

Cultural Relativism“When in Rome, do as the Romans do”


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Conclusion

Questions for discussion

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