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Cross-Cultural ManagementCross-Cultural Management1
Chapter 2Managing Across Cultures
Chapter 2(1) _ Global Culture…2Chapter 2(2) _ Multicultural Teams…11Chapter 2(3) _ Motivation in a Global
Context…36Chapter 2(4) _ Decision Making…51Chapter 2(5) _ Leadership…68Chapter 2(6) _ Global HRM…92
Cross-Cultural ManagementCross-Cultural Management2
Chapter 2(1) _Global Culture
Cross-Cultural ManagementCross-Cultural Management3
CULTURAL MESSAGES COME FROM MULTIPLE SOURCES– Domestic– International– Global
although most common challenges are addressed by nations, a global civil society is emerging
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PEOPLE LOOK AT ALTERNATIVE ENTITIES FOR CULTURAL DIRECTION
• Affiliative groups e.g., ethnic groups• Nongovernmental organizations, e.g., the
Women’s League for Peace and Freedom• Religious groups• Regional associations, e.g., Economic Union• Business organizations
Cross-Cultural ManagementCross-Cultural Management5
Multiple messages and sources create CONFUSION AND
UNCERTAINTY• Leading to new questions national cultures are
less well able to answer– but
• In a global society, we don’t have a sense of the appropriate rules by which all can live
Cross-Cultural ManagementCross-Cultural Management6
TRANSITION TIME?
• Are we at a point where nationality is less important to culture than in the past? All of
Us
Cross-Cultural ManagementCross-Cultural Management7
WE SEE THAT SOME VALUES ARE COVERGING, OTHERS ARE
NOT
• The Planet Project• The Roper Poll of Values• The World Values Survey• The GLOBE Project
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GLOBE RESPONSES ON GENDER EGALITARIANISM SHOWS
COVERGENCE ON “SHOULD BE”
1
2
3
4
5
6
7
Latin America
Anglo
Nordic
Germanic
Latin Europe
East Europe
Confucian
S Asia
Arab
Indigenous AfricaAs Is
Shd Be
Cross-Cultural ManagementCross-Cultural Management9
GLOBE RESPONSES ON HUMANEORIENTATION ALSO SHOWS
COVERGENCE ON “SHOULD BE”
1
2
3
4
5
6
7
Latin America
Anglo
Nordic
Germanic
Latin Europe
East Europe
Confucian
S Asia
Arab
Indigenous Africa
As Is
Shd Be
Cross-Cultural ManagementCross-Cultural Management10
QUESTIONS OF GLOBAL AND LOCAL CULTURES
• Will global culture replace or exist with local cultures?
• Will global culture bring positive or negative outcomes?
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Chapter 2(2)- Multicultural Teams
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Two or more interacting individuals who come together to achieve some objectives.
Groups can be either formal or informal, and further subclassified into command, task, interest, or friendship categories.
GroupGroup
Cross-Cultural ManagementCross-Cultural Management13
A specific type of group where an emphasis is put on some level of member interdependence and on achievement of common goals
TeamTeam
•All teams are groups •Some groups are just people assembled together•Teams have task interdependence whereas some groups do not (e.g., group of employees enjoying lunch together)
Cross-Cultural ManagementCross-Cultural Management14
Reasons for Team PopularityReasons for Team Popularity
• OutperformOutperform individuals on tasks requiring multiple skills, judgment, and experience
• Better utilizationutilization of employee talents
• More flexibleflexible and responsiveresponsive to changing events
• Facilitate employee participationparticipation in operating decisions
• Effective in democratizingdemocratizing the organization and increasing employee involvement and motivationmotivation
Cross-Cultural ManagementCross-Cultural Management15
Basic Group ConceptsBasic Group Concepts
Acceptable Standards Acceptable Standards
of Behavior Sharedof Behavior Shared
by the Members by the Members
of a Groupof a Group
Expected Patterns ofExpected Patterns of
Behavior Based on aBehavior Based on a
Given Position in aGiven Position in a
Social UnitSocial Unit
Group RolesGroup Roles Group NormsGroup Norms
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CohesivenessCohesiveness
Social-Oriented Cohesiveness: The degree to which members of the group are attracted to each other and motivated to stay in the group
Task-Oriented Cohesiveness: The degree to which group members work together, cooperate and coordinate their activity in order to achieve group goals
Cross-Cultural ManagementCross-Cultural Management17
Team Effectiveness ModelTeam Effectiveness Model
•Task characteristics
•Team size
•Team composition
Team DesignTeam Design
• AchieveAchieve organizational organizational goals goals
• Satisfy memberSatisfy member needs needs
• Maintain teamMaintain team survival survival
TeamTeamEffectivenessEffectiveness
•Team developmentTeam development•Team normsTeam norms•Team rolesTeam roles•Team cohesivenessTeam cohesiveness
Team ProcessesTeam Processes
Organizational andOrganizational andTeam EnvironmentTeam Environment
• Reward systemsReward systems
• CommunicationCommunication systems systems
• Physical spacePhysical space
• OrganizationalOrganizational environment environment
• OrganizationalOrganizational structure structure
• OrganizationalOrganizational leadership leadership
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Groups Across CulturesGroups Across Cultures
Two cultural dimensions are especially relevant:
• Individualism-Collectivism
• Power Distance
• Also Uncertainty Avoidance; e.g., potential for Role Conflict (esp. in multi-functional teams)
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The Challenge in The Challenge in Shaping Team PlayersShaping Team Players
Greatest where...Greatest where...–The national culture
is highly individualisticindividualistic
–Introduced into organizations that historicallyhistorically value individual achievement
Less demanding...Less demanding...–Where employees have strong collectivistcollectivist values, such as Japan or Mexico
–In new organizations that use teams as their initial forminitial form for structuring work
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Cross-Cultural DifferencesCross-Cultural Differences
Cross–cultural differences in intergroup processes– Collectivistic cultures
• Expect little expression of conflict; favor suppressing conflict
• Prefer to personalize interaction; focus on people, despite what group they represent
• Group membership is an important part of identity and interaction
Cross-Cultural ManagementCross-Cultural Management21
Power Distance and SDWTsPower Distance and SDWTs
Nicholls et al. (1999) study of SDWT in Mexico:• Why are teams failing in a highly collectivist culture
such as Mexico?• Major challenges in implementing SDWTs• Workers expect to exercise little control over work
and not to be involved in decision making• Expect clear instructions from the top and are not
highly motivated by opportunity to initiate and take larger responsibility
• Can SDWT work in high-PD cultures? How?
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Interpersonal RelationshipsInterpersonal Relationships
• Individualists tend to have more friends, but with lesser intensity level;
• Collectivists tend to have less friends, but with higher intensity level.
• Individualists are less suspicious towards out-group members and easier to make initial contact;
• Collectivists have stronger bonds with in-group members
Cross-Cultural ManagementCross-Cultural Management23
Differential Group ProcessesDifferential Group Processes
• Conformity: who is more conforming?
• Formal/regulated participation vs. spontaneous
• Social loafing versus social striving
• Preferences for group vs. individual rewards
• Equality (‘you deserve what you get’) vs. Equity (‘you get what you deserve’) vs. Need based decisions (‘to all according to their needs’)
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ConformityConformity
• Cross–cultural variations in tendency to accept group pressure for conformity to group norms– Japanese encourage high conformity to
norms of a group that has the person's primary loyalty
– German students (in some experimental research) showed a lower tendency to conform
– Moderate conformity among people in Hong Kong, Brazil, Lebanon, and the United States
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Teams’ Cultural CompositionTeams’ Cultural Composition
•Cultural Diversity: the number of different cultures represented in the group;
•Cultural Norms: the orientations of the specific cultures represented in the group toward group dynamics and processes; and
•Relative Cultural Distance: the extent to which group members are culturally different from each other
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Surface and Deep DiversitySurface and Deep Diversity
In multicultural teams, diversity can be in the form of:
• Surface-level (black-American; Caucasian-American; French and Vietnamese) and/or
• Deep-level (Irish and English; Singaporean and Chinese; N. and S. Africans)
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Dynamics of Team DiversityDynamics of Team Diversity
Diversity•Surface•Deep
Affective Reactions•Cohesion•Satisfaction•Commitment
Team Behaviours•Communication•Conflict•Cooperation
Long-termConseq.•Performance•Promotion•Turnover
GroupDynamics
Social Context
Org. Context
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Jackson, Joshi & Erhardt (2003)Jackson, Joshi & Erhardt (2003)
• Surface-level diversity has more immediate impact and is influential in early-stage/newly formed teams while deep-level becomes more important over time and its effects last longer.
• Diversity, in general, and cultural/ethnic diversity in particular, have mixed effects on team processes and performance;
• Less effect on simpler, motor-based tasks; more effect on complex, interdependent teamwork
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Earley & Mosakowski (2000)Earley & Mosakowski (2000)
• Studied effects of heterogeneity in transnational teams using experimental and field settings
• Reasoned that the effects of national heterogeneity on team performance is non-linear;
• Found that in the early stages, homogenous teams (those with only one major national group identity) outperformed both moderately heterogeneous (groups with two different sub-group identities) and highly heterogeneous (no clear sub-group identities exist) teams.
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Earley & Mosakowski (2000)Earley & Mosakowski (2000)• In the longer term, high-heterogeneous teams’
performance increased as they managed to create a hybrid-culture;
• Such hybrid culture was not created in moderately heterogeneous teams, whose performance was lower than both high and low heterogeneity teams.
Team processes mediated the effects of heterogeneity on team performance, such that:
• In homogenous groups, members perceived many similarities between themselves (remember SIT?); trust, shared mental models and open communication developed early on in the team’s life
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Earley & Mosakowski (2000)Earley & Mosakowski (2000)
• In moderately heterogeneous teams, a dynamic of ‘us vs. them’ prevailed, with the two sub-groups sticking to themselves in times of conflict, resulting in little cross sub-group cooperation;
• In highly heterogeneous teams, as time passed, members go to know each other better and since there were no dominant sub-groups, they were free to form a ‘hybrid culture’-unique to their team and overarching each members’ national identity.
• Implications for joint ventures and projects where two cultures (national or organizational) get together to try to create a cooperative structure
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Diversity and TeamsDiversity and Teams
• Overall, diversity causes process losses• Can be beneficial if team overcomes these
losses over time• Depends on organizational culture and top-
management support• Highly heterogeneous and highly homogenous
teams work better than mid-range ones• Fault lines in teams lead to rivalry coalitions =>
decrease effectiveness
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Conditions for EffectivenessConditions for Effectiveness
More Effective Less Effective
Task Innovative Routine
Stage Divergence (earlier) Convergence (later)
Conditions Differences Recognized Differences Ignore
Task-based member selection
Culture-base members selection
Pluralism Ethnocentrism
Equal Power Cultural Dominance
Superordinate goals Individual goals
External feedback No feedback/autonomy
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Some ImplicationsSome Implications
• Investment in diverse teams is more sensible for the longer-term, for complex tasks and when team members are (relatively) pluralistic
• More careful task design is needed
• Positive feedback, early on
• Preparation and training, through conceptual and experiential approaches is recommended
• Strive to create a third culture through superordinate goals and neutralization of differences
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Diversity: Beyond the ObviousDiversity: Beyond the Obvious
• Seemingly culturally similar team members may have the hardest time to get along: need to take into account other variables besides culture (history, class)
• Idiosyncratic cultural variables, e.g., intellectual style (Russians vs. N. Americans)
• Prior experience with different cultures plays important role (usually for the better)
• Virtual Teams: added complexity
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Chapter 2(3)-Motivation in a Global Context
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The Basic Motivation Process
Unsatisfiedneed
Drive toward goal tosatisfy need
Attainment of goal(need satisfaction)
Introduction to MotivationIntroduction to Motivation
Motivation
Psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives
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Introduction to MotivationIntroduction to Motivation
• Need Theories• Cognitive theories
– Expectancy theory: describes internal processes of choice among different behaviors
– Equity theory: describes how and why people react when they feel unfairly treated
– Goal setting theory: focuses on how to set goals for people to reach
• Behavioral theory– Behavior modification: focuses on observable
behavior, not internal psychological processes
Cross-Cultural ManagementCross-Cultural Management39
Basic AssumptionsBasic Assumptions
• The Universalist Assumption– All people are motivated to pursue goals they
value– Specific content of the goals that are pursued
will be influenced by culture– Movement toward market economies may make
motivation more similar in different countries
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Motivation TheoriesMotivation TheoriesAre Culture BoundAre Culture Bound
Need forNeed forAchievementAchievement
Hierarchy Hierarchy of Needsof Needs
Goal-SettingGoal-SettingTheoryTheory
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Attitudes and PersonalityAttitudes and Personality
• Personality characteristics
– People in individualistic cultures (United States) have stronger need for autonomy than people in group–oriented cultures (Japan)
– People in cultures that emphasize avoiding uncertainty (Belgium, Peru) have stronger need for security than people in cultures that are less concerned about avoiding uncertainty (Singapore, Ireland)
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Need Theories of MotivationNeed Theories of Motivation
• Concept of needs holds across cultures
• People from different cultures may express and satisfy needs differently
• Importance of needs in Maslow's need hierarchy
– United States: self–actualization
– Latin America: security, affiliation
– France and Germany: need for security
– New Zealand: belongingness and love
• McClelland: needs for affiliation, power and achievement
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International Aspects ofInternational Aspects ofJob DesignJob Design
• Herzberg: Two Factor Theory• Individual and group–based job design
– U.S. managers have mostly used individual approaches to job design
– Recent shifts to group–based approaches– Managers in other industrialized countries have
mainly emphasized group–based job design
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Job Design (Cont.)Job Design (Cont.)
• Changing specific job characteristics
– Belgium, Mexico, Greece, Thailand: not likely to accept efforts to increase autonomy and task identity
– French managers particularly dislike recommendations to decentralize decision authority. Subordinates do not expect them to do so
– Quality circles: big success in Japan, but only partial in the US
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Cognitive and Behavioral Theories Cognitive and Behavioral Theories of Motivationof Motivation
• Two assumptions that could restrict use of these theories outside the U.S.– Individual controls decisions about future
actions– Manager can deliberately shape the
behavior of people
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Cognitive and Behavioral Theories Cognitive and Behavioral Theories of Motivationof Motivation
• Both assumptions reflect U.S. values of free will, individualism, individual control
• Cultural contrasts– Muslim managers believe something happens
mainly because God wills it to happen
– Hong Kong Chinese believe luck plays a role in all events
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Cognitive and Behavioral TheoriesCognitive and Behavioral Theories
• Expectancy theory's validity in other cultures– Japanese female life insurance sales
representatives responded to commission system as expected
– Russian textile workers• Linked valued extrinsic rewards to worker
performance• Productivity increased as the theory predicts
• Generally, expectancy theory best explains motivation of people in cultures that emphasize internal attribution
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Cognitive and Behavioral Theories (Cont.)Cognitive and Behavioral Theories (Cont.)
• Equity theory: complex cross–cultural effects
– Reward allocation decisions followed equity theory premises in U.S., Russian, and Chinese samples
– Other studies
• Chinese emphasized seniority in their reward decisions more than Americans.
• Eastern European transition economies: endorsed positive inequity more than American students
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Culture & MotivationCulture & Motivation
• Research on goal setting theory in several countries
• Results consistent with U.S. work that formulated the theory
• Some cultural differences– U.S. students not affected by how goals were
set– Israeli students performed better when goals
were set participatively; consistent with culture of cooperation
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Idiosyncratic FactorsIdiosyncratic Factors
Beyond cultures’ variance along the major cultural value dimensions, there are specific aspects anchored in nation’s history and expressed through its symbols and language.
Ignoring such factors may render motivational techniques ineffective or even result in de-motivation; e.g.:
Slay the Dragon!!
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Chap 2(4)- Decision Making across Cultures
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Decision MakingDecision Making
Process of choosing a course of action among alternatives
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Various FactorsVarious Factors
* Time Orientation• Deciding for the short/long term?• How long to make a decision?• Polichronic or monochronic style?
* Who decides: Groups vs. Individuals
* Voting vs. Consensus based decisions
* Process: Participative vs. Autocratic
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Value of RationalityValue of Rationality
Strong preference for rational D.M. vs.
Occasional or low value on rationality;
In some cultures more emphasis on:• Emotions• Religion• Ideology
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Rational Decision MakingRational Decision Making
The Rational Approach assumes that
– Managers follow a systematic, step-by-step process.
– Organization is economically based and is managed by decision makers who are entirely objective and have complete information.
It assumes that rational choices are:
• Consistent
• Value-maximizing
• Within specified constraints
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The Six-Step Rational The Six-Step Rational Decision-Making ModelDecision-Making Model
1. Define the problem2. Identify decision criteria3. Weight the criteria4. Generate alternatives5. Rate each alternative on each criterion6. Compute the optimal decision
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Cultural Contingencies in Decision MakingCultural Contingencies in Decision Making
Step
1. Problem Recognition
Problem solving; change Situation acceptance
2. Information Search Gathering facts Gathering ideas and possibilities
3. Construction of Alternatives
New, future oriented based on change
Past/present/future based on stability
4. Choice Individual level; delegation of responsibility; fast
Group level; by senior management; slowly
5. Implementation Slow; top-down Fast; broad participation
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Case Study: The Road to Hell (p. 512)Case Study: The Road to Hell (p. 512)
• What mistakes did John Baker Made? Why did he not realize his mistake when it occurred?
• What would you recommend that Baker do now?
• What do you learn from this case about human resource management across different nations?
Cross-Cultural ManagementCross-Cultural Management59
Stages of Moral DevelopmentStages of Moral Development
LevelLevelStage Stage
DescriptionDescription
PrincipledPrincipled
ConventionalConventional
Pre-conventionalPre-conventional1. Sticking to rules to avoid physical punishment
2. Following rules only when it’s in your immediate interest
3. Living up to what is expected by people close to you
4. Maintaining conventional order by fulfilling obligations to which you have agreed
6. Following self-chosen ethical principles, even if they violate the law
5. Valuing rights of others; upholding non-relative values and rights regardless of the majority’s opinion
Adapted from L. Kohlberg, “Moral Stages and Moralization: The Cognitive-Developmental approach,” pages 34-55 inMoral Develop and Behavior: Theory, Research, and Social Issues, ed. T. Lickona (New York: Holt, Rinehart & Winston, 1976).
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Three Different Criteria in Making Three Different Criteria in Making Ethical ChoicesEthical Choices
• Utilitarian CriterionUtilitarian Criterion - made solely on basis of outcomes or consequences
• Focus on RightsFocus on Rights - made consistently with fundamental liberties and privileges
• Focus on JusticeFocus on Justice - requires imposing and enforcing rules fairly and impartially for equitable distribution of benefits and costs
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Ethical Aspects of DecisionsEthical Aspects of Decisions
• Multinational firms face many ethical questions and issues
• Operate in many countries; subject to the laws of those countries
• Legal and social context of globally oriented organizations can present their managers with ethical dilemmas
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Ethical Aspects of DecisionsEthical Aspects of Decisions
Culturalrelativism
Ethicalrealism
Multinationalorganization
Two ethical views
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Ethical Aspects of DecisionsEthical Aspects of Decisions
Ethical views:• Cultural relativism
• Cultural relativism refers to differences in ethical values among different cultures
• Premise: right and wrong should be decided by each society's predominant ethical values
• Cultural relativists base their argument on three points
Cross-Cultural ManagementCross-Cultural Management64
Ethical Aspects of DecisionsEthical Aspects of Decisions
Cultural relativism (cont.)• Three points
–Moral judgments are statements of feelings and opinions; neither wrong nor right
–Moral judgments are based on local ethical systems; cannot judge right or wrong across cultures
–Prudent approach: do not claim an action is either right or wrong
Cross-Cultural ManagementCross-Cultural Management65
Ethical Aspects of DecisionsEthical Aspects of Decisions
Cultural relativism (cont.)
• Managers should behave according to local ethical systems, even if behavior violates home country ethical system
• Many philosophers reject cultural relativism's argument that codes of ethics cannot cross national boundaries
• Agree that countries vary in defining right and wrong
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Ethical Aspects of DecisionsEthical Aspects of Decisions
– Ethical realism• Morality does not apply to international
transactions• Because no power rules over international
events, people will not behave morally• Because others will not behave morally,
one is not morally required to behave ethically
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Ethical Aspects of DecisionsEthical Aspects of Decisions
• International ethical dilemmas– Goods made in a country with no child labor
laws– Goods made in a country with child labor laws
that are not enforced– Changing the behavior of local people– Making small payments that are allowed under
the company’s national law
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Chapter 2(5)-Leadership
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DefinitionsDefinitions
There are almost as many definitions of leadership as there are theories…some of the more common ones are:
• Ability to influence a group toward the achievement of goals.
• The process whereby one individual influences other group members towards the attainment of defined group or organisational goals.
• The process of creating vision for others and having the power to translate it into a reality and sustain it.
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Foundation for LeadershipFoundation for Leadership
Leadership Behaviors and Styles
Participative Leadership
Participative Leadership
Authoritarian Leadership
Authoritarian Leadership
Paternalistic Leadership
Paternalistic Leadership
The use of work-centered behavior designed to ensure task accomplishment.
The use of work-centered behavior coupled with a protective employee centered concern.The use of both work- or task-centered and people centered approaches to leading subordinates.
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Leader–Subordinate InteractionsLeader–Subordinate Interactions
Authoritarian Leader
Subordinate Subordinate Subordinate
One-way downward flow of information and influence from authoritarian leader to subordinates.
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Leader–Subordinate InteractionsLeader–Subordinate Interactions
Paternalistic Leader
Subordinate Subordinate Subordinate
Continual interaction and exchange of information and influence between leader and subordinates.
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Leader–Subordinate InteractionsLeader–Subordinate Interactions
Participative Leader
Subordinate Subordinate Subordinate
Continual interaction and exchange of information and influence between leader and subordinates.
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Contingency TheoriesContingency Theories
• Leaders use various leadership Leaders use various leadership styles/behaviours;styles/behaviours;
• Quality of leadership experience depends on Quality of leadership experience depends on several situational factors, including followers several situational factors, including followers and task type.and task type.
• Path-Goal ModelPath-Goal Model - Leader assists followers in attaining goals and ensures goals are compatible with overall objectives
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Path-Goal TheoryPath-Goal Theory
A theory of leadership suggesting that subordinates will be motivated by a leader only to the extent they perceive this individual as helping them to attain valued goals.
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Path-Goal TheoryPath-Goal Theory
Four basic leadership styles:• InstrumentalInstrumental (directive): An approach focused on
providing specific guidance and establishing work schedules and rules.
• Supportive:Supportive: A style focused on establishing good relations with subordinates and satisfying their needs.
• Participative:Participative: A pattern in which the leader consults with subordinates, permitting them to participate in decisions.
• Achievement Oriented:Achievement Oriented: An approach in which the leader sets challenging goals and seeks improvements in performance.
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Path-Goal TheoryPath-Goal Theory
Environmental contingency factors• Task structure• Formal authority system• Work group
Leader behavior• Directive• Supportive• Participative• Achievement oriented
Outcomes• Performance• Satisfaction
Subordinate contingency factors• Locus of control• Experience• Perceived ability
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LeadershipLeadership
Core values of country’s culture often define type of leadership behavior that is acceptable
– In high PD, an emphasis on hierarchical relationships—directive approaches accepted; Hong Kong, Latin American countries; Russia
– In low PD, hierarchical relationships are not valued —supportive (or participative) approaches accepted; Austria, Scandinavia, Israel
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LeadershipLeadershipIndividualism-Collectivism
• Leader as a paternal figure vs. leader as an expert
• Degree to which intervention of leader in follower’s private lives is expected and accepted
Masculine/Feminine
• Acceptance of women as leaders
• Accepted style for leaders
Long-Term-Orientation
• Elect leaders for four years…or forty?
Leader’s style: first among equals (China) or class of its own (Arab Countries)
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GLOBE ProjectGLOBE Project• Multi-country study and evaluation of cultural
attributes and leadership behavior• Are transformational characteristics of
leadership universally endorsed?• 170 country co-investigators• 65 different cultures• 17,500 middle managers
• 800 organizations
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GLOBE ProjectGLOBE Project• Which traits are universally viewed as
impediments to leadership effectiveness?• Based on beliefs that
–Certain attributes that distinguish one culture from others can be used to predict the most suitable, effective and acceptable organizational and leader practices within that culture
–Societal culture has direct impact on organizational culture
–Leader acceptance stems from tying leader attributes and behaviors to subordinate norms
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Variable Highest Medium LowestRanking Ranking Ranking
GLOBE Cultural Variable Results
Assertiveness Spain, U.S. Egypt, Ireland Sweden, New Zealand
Future orientation Denmark, CanadaSlovenia, Egypt Russia, Argentina
Gender differentiation South Korea, Italy, Brazil Sweden Denmark Egypt
Uncertainty avoidance Austria, Denmark Israel, U.S. Russia, Hungary
Power distance Russia, Spain England, France Demark, Netherlands
Collectivism/Societal Denmark, Hong Kong, U.S. Greece, HungarySingapore
In-group collectivism Egypt, China England, France Denmark, Netherlands
Performance orientation U.S., Taiwan Sweden, Israel Russia, Argentina
Humane orientation Indonesia, Egypt Hong Kong, Germany, Spain Sweden
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Universal Leadership AttributesUniversal Leadership Attributes
Positive• Trustworthy• Just• Honest• Charisma • Inspiration & Vision• Team-Orientation• Excellence-Oriented• Decisive• Intelligent
Negative• Loner• Non-Cooperative• Ruthless• Non-explicit• Irritable• Dictatorial
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Leadership and ManagementLeadership and Management
Need to bear in mind that leadership style is very much situation dependent: for example, in some situations (e.g., emergency) and in some organizational cultures, directive style will be accepted even in a country like the US;
Participation is more likely if the basis of power is more achievement based (instrumental) than if it is ascribed (personal) and
Degree of participation in decision making and leadership by subordinates vary cross-nationally
Cross-Cultural ManagementCross-Cultural Management85
Leadership in theLeadership in theInternational ContextInternational Context
Attitudes of European Managers Toward Leadership Practices
Capacity for Leadership and Initiative
Capacity for Leadership and Initiative
European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.
Does the leader believe that employees prefer to be directed and have little
ambition? (Theory X) OR Does the leader believe that characteristics such as initiative can be acquired by most people regardless of their inborn traits and abilities? (Theory Y)
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Leadership in the Leadership in the International ContextInternational Context
Attitudes of European Managers Toward Leadership Practices
Capacity for Leadership and Initiative
Capacity for Leadership and Initiative
Sharing Informationand Objectives
Sharing Informationand Objectives
Does the leader believe that detailed, complete instructions should be given to subordinates and that subordinates need only this information to do their jobs?
ORDoes the leader believe that general directions are sufficient and that subordinates can use their initiative in working out the details?
Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.
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Leadership in the Leadership in the International ContextInternational Context
Attitudes of European Managers Toward Leadership Practices
Capacity for Leadership and Initiative
Capacity for Leadership and Initiative
Sharing Informationand Objectives
Sharing Informationand Objectives
ParticipationParticipation
Does the leader support participative leadership practices?
Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.
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Leadership in the Leadership in the International ContextInternational Context
Attitudes of European Managers Toward Leadership Practices
Capacity for Leadership and Initiative
Capacity for Leadership and Initiative
Sharing Informationand Objectives
Sharing Informationand Objectives
ParticipationParticipation
Internal ControlInternal Control
Does the leader believe that the most effective way to control employees is through rewards and punishment?
ORDoes the leader believe that employees respond best to internally generated control?
Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.
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Japanese vs. U.S. Japanese vs. U.S. Leadership StylesLeadership Styles
Dimension Japan US
Employment Often for life Often short-term
Evaluation Slow, takes many years Fast: those not promoted often leave
Career Paths Very general; based on rotations
v. specialised; people stay in one area
Dec. Making Group based By individual managers
Control Mech. Implicit & informal; reliance on trust and goodwill
Explicit; based on knowing the control mechanisms
Responsibility Shared collectively Assigned individually
Concern for employees
Broad and covers the whole life
limited to work-life
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Differences in Middle Eastern Differences in Middle Eastern
and Western Managementand Western Management
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Differences in Middle Eastern Differences in Middle Eastern
and Western Managementand Western Management
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Leadership-Other IssuesLeadership-Other Issues
• Emphasis on Emotional Intelligence is especially important for leading cross-culturally
• Idiosyncratic effects & paradoxes:
– Moderately masculine Muslim and Hindu nations with traditional views on women…but,
– Israel, India, Pakistan and other exceptions
• Charismatic leadership is not universally accepted
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Chapter 2(6)-GLOBAL HUMAN RESOURCES
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HR Challenges of International HR Challenges of International BusinessBusiness
• Deployment
• Knowledge and innovation dissemination
• Identifying and developing talent globally
Researchers asked “What are the key global pressures affecting human resource management practices in your firm currently and for the projected future?” Responses were:
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Global StaffingGlobal Staffing
Pressures Pressures
– Candidate selections– Assignment terms– Relocation– Immigration – Culture and language– Compensation– Tax administration– Handling spouse and dependent matters
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Economic DifferencesEconomic Differences
Translate into differences in HR practices:• Espousing ideals of free enterprise • Wage costs vary • Other labor costs vary: severance pay; holidays
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International Labor RelationsInternational Labor Relations
Union membership varies widely worldwide
14%
29%
44%39%
80%24%
23%39%
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International StaffingInternational Staffing
Multinational corporations (MNC’s) use several types of international managers:– Locals– Expatriates
• Home-country nationals• Third-country nationals
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Sources of Human Sources of Human ResourcesResources
Home Country Nationals
– Expatriate managers who are citizens of the country where the MNC is headquartered• Expatriates
– Those who live and work away from their home country– Citizens of the country where the MNC is headquartered
• Expatriates are useful for:– starting up operations– providing technical expertise– helping the MNC maintain financial control over the operation
• Expatriates almost always were men– Situation is changing
• Expatriates typically used in top management positions
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Sources of Human ResourcesSources of Human Resources
• Host-Country Nationals– Local managers who are hired by the MNC– Used in middle- and lower-level
management positions– Nativization
• Requirement of host-country government that mandates employment of host-country nationals
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Sources of Human Sources of Human ResourcesResources
• Third-Country Nationals (TCNs)– Citizens of countries other than the one in
which the MNC is headquartered or the one in which the managers are assigned to work by the MNC
– Found in MNCs that have progressed through the initial and middle stages of internationalization
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– Advantages of using TCNs• Require less compensation• Good working knowledge of the region• Given home office experience, often can
achieve objectives better than other types of managers
• Offer different perspectives
Sources of Human ResourcesSources of Human Resources
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Failure Rates of International AssignmentsFailure Rates of International Assignments
International assignment failure can cost hundreds of thousands of euros
0 20 40 60
US
Japan
Europe
% Failure
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Why InternationalWhy InternationalAssignments FailAssignments Fail
• Personality• Person’s intentions• Family pressures• Lack of cultural skills• Other non-work conditions like living and
housing conditions, and health care
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Improving Failure Rates/SolutionsImproving Failure Rates/Solutions
• Provide realistic previews• Have a careful screening process• Improve orientation• Provide good benefits• Test employees fairly• Shorten assignment length
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Important Predictors Important Predictors of Successof Success
• Family situation tops the list• Flexibility/adaptability screening was high on
results• Use paper and pencil tests like the Overseas
Assignment Inventory• Previewing what changes an international
assignee can expect
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SelectingSelectingInternational ManagersInternational Managers
• Test for traits that predict success in adapting to new environments
• Job knowledge and motivation• Relational skills• Flexibility and adaptability• Extra-cultural openness• Family situation
Predictive trait breakdown
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Traits Distinguishing Successful Traits Distinguishing Successful International ExecutivesInternational Executives
SCALESensitive to Cultural Differences
Business KnowledgeCourage to Take a StandBrings Out the Best in PeopleActs with IntegrityIs Insightful
Is Committed to Success
Takes RisksUses FeedbackIs Culturally Adventurous
Seeks Opportunities to LearnIs Open to CriticismSeeks FeedbackIs Flexible
*Reverse scored
SAMPLE ITEMWhen working with people from other cultures, workshard to understand their perspectives.Has a solid understanding of our products and services.Is willing to take a stand on issues.Has a special talent for dealing with people.Can be depended on to tell the truth regardless of circumstances.Is good at identifying the most important part of a complex problem or issue.Clearly demonstrates commitment to seeing theorganization succeed.Takes personal as well as business risks.Has changed as a result of feedback.Enjoys the challenge of working in countries other thanhis/her own.Takes advantage of opportunities to do new things.Appears brittle—as if criticism might cause him/her to break.*Pursues feedback even when others are reluctant to give in.Doesn’t get so invested in things that she/he cannot change when something doesn’t work.
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Performance Appraisal of Performance Appraisal of International MangersInternational Mangers
Five suggestions for improving the expatriate appraisal process:
1. Stipulate the assignment’s difficulty level. For example, being an expatriate manager in China is generally considered more difficult than working in England, and the appraisal should take such difficulty-level differences into account.2. Weight the evaluation more toward the on-site manager’s appraisal than toward the home-site manager’s distant perceptions of the employee’s performance.
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Performance Appraisal of Performance Appraisal of International MangersInternational Mangers
• 3. If however (as is usually the case), the home-site manager does the actual
• written appraisal, have him or her use a former expatriate from the same
• overseas location to provide background advice during the appraisal process.
• 4. Modify the normal performance criteria used for that particular position to
• fit the overseas position and characteristics of that particular locale.
• 5. Attempt to give the expatriate manager credit for his or her insights into
• the functioning of the operation and specifically the interdependencies
• of the domestic and foreign operations.
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The New Workplace:The New Workplace:Sending Women AbroadSending Women Abroad
• In the US, only 6% filled overseas positions compared to 49% domestic
• One survey found inaccurate stereotypes:– Not as internationally mobile – Might have a tougher time building teams
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Performance Appraisal of Performance Appraisal of International MangersInternational Mangers
Five suggestions for improving the expatriate appraisal process:
1. Stipulate the assignment’s difficulty level. For example, being an expatriate manager in China is generally considered more difficult than working in England, and the appraisal should take such difficulty-level differences into account.
2. Weight the evaluation more toward the on-site manager’s
appraisal than toward the home-site manager’s distant perceptions of the employee’s performance.
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Performance Appraisal of Performance Appraisal of International MangersInternational Mangers
• 3. If however (as is usually the case), the home-site manager does the actual
• written appraisal, have him or her use a former expatriate from the same
• overseas location to provide background advice during the appraisal process.
• 4. Modify the normal performance criteria used for that particular position to
• fit the overseas position and characteristics of that particular locale.
• 5. Attempt to give the expatriate manager credit for his or her insights into
• the functioning of the operation and specifically the interdependencies
• of the domestic and foreign operations.
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Culture Shock!Culture Shock!
• Disorientation upon entering a new cultural environment
• Normal use of own cultural filter fails– interpretation of perceptions– communication of intentions
• All people experience culture shock... Past experience and training can shorten its length
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Culture Shock:Culture Shock:
Responses– Gone native (assimilation):
accepts the new... rejects own
– Participator (integration): adapts to the new ... but retains own
– Tourist (separation): avoids the new...
– Outcast (marginalization): won’t/can’t adapt... rejects own...
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PhasesPhases
• Honeymoon– euphoria, unrealistically positive attitudes
towards host country, stay in hotel shields from mundane difficulties, house hunting/school hunting exciting, sightseeing!!
• Irritation and Hostility (the crisis stage)– problems adjusting at work, local clocks don't
fit yours, difficulties getting the routine daily tasks done, everything stinks; some never recover
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SymptomsSymptoms
– homesickness– boredom– withdrawal (reading is an obsession, focus
on home nationals, avoid host nationals)– excessive sleep need, compulsive eating
and drinking – irritability– exaggerated cleanliness
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Symptoms (cont.)Symptoms (cont.)
– marital stress, family tension, conflict
– stereotyping host nationals
– hostility towards host nationals
– loss of ability to work effectively
– fits of weeping
– psychosomatic illnesses
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PhasesPhases
• Gradual Adjustment
– can manage, cope with situation now
• Biculturalism/Coping
– ability to function in both cultures, acceptance of local customs and values for what they are (not going native), possible to get by, positive and growth gaining experience
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Nature of Culture ShockNature of Culture Shock
• Not a jolt, rather a series of cumulative experiences
• Cultural differences become focus of attention
• Foreign ways are quaint no more... they seem inferior to your own
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What Special Training Do Overseas What Special Training Do Overseas
Candidates Need?Candidates Need?
• Impact of cultural differences
• Understanding attitude formation
• Factual knowledge about target country
• Language and adjustment/adaptability skills
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Four Step Approach to Training Overseas Four Step Approach to Training Overseas CandidatesCandidates
Level 1 training focuses on the impact of cultural differences, and on raising trainees’ awareness of such differences and their impact on business outcomes.
Level 2 training aims at getting participants to understand how attitudes (both negative and positive) are formed and how they influence behavior.
Level 3 training provides factual knowledge about the target country.
Level 4 training provides skill building in areas like language and adjustment and adaptation skills.
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Cross-Cultural TrainingCross-Cultural Training
Information Giving
Affective Approach
Immersion Approach
Geographic briefingsCultural BriefingsFilms/BooksInterpretersLanguage: “Survival”
Culture assimilator trainingRole-playingCasesStress reduction trainingCultural BriefingsLanguage: “Moderate”
AssessmentField experienceSimulationsSensitivity trainingLanguage: “intensive”
Training Time Training Rigor
Length of Assignment
YearsMonthsWeeks
High
Low
Months
Weeks
Day(s)
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Repatriation of ExpatriatesRepatriation of Expatriates• Repatriation
– Return to one’s home country from an overseas management assignment
• Reasons for returning– Formally agreed-on tour of duty is over– Expats want their children educated in the home
country– Unhappiness with foreign assignment– Failure to perform well
• Readjustment problems– Permanent position upon return constitutes a
demotion– Lack opportunity to use skills learned abroad upon
return– Salary and benefits may decrease upon return
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Repatriation ProblemsRepatriation Problems
• Leaving the firm prematurely• Mediocre or makeshift jobs• Finding former colleagues
promoted• Reverse culture shock
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RepatriationRepatriation
Several steps can be taken to avoid repatriation problems:
Write repatriation agreementsShorten Assignment periodsAssign a sponsorProvide career counselingKeep communications openOffer financial supportDevelop reorientation programsBuild in return trips