Cross Cultural Management-4,5,6

7/31/2019 Cross Cultural Management-4,5,6

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CROSS CULTURAL MANAGEMENT

CHAPTER-4

BYRAJA. MAZHAR HAMEED


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THE MEANINGS AND DIMENSIONS OF

CULTURE

THE NATURE OF CULTURE

CULTURE

ACQUIRED KNOWLEDGE THAT PEOPLE USE TO

INTREPRET EXPERIENCE AND GENERATE SOCIALBEHAVIOUR. THIS KNOWLEDGE FORMS VALUES,CREATES ATTITUDES, AND INFLUENCES BEHAVIOUR.

CULTURAL DIVERSITY

There are many ways of examining cultural differencesand their management. Culture can affect technologytransfer, managerial attitudes, managerial ideology, andeven businessgovernment relations.


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CULTURE

CULTURAL DIVERSITY

In overall terms, the cultural impact on internationalmanagement is reflected by these basic beliefs andbehaviours. Here are some specific examples wherethe culture of a society can directly affectmanagement approaches:

CENTRALIZED VS DECENTRALIZED DECISION MAKING

In some societies, top managers make all important

organizational decisions. In others, these decisions arediffused throughout the enterprise, and middle and lower-level managers actively participate in, and make, keydeciscions.


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CULTURE

SAFETY VS RISK

In some societies, organizational decision makers arerisk-averse and have great difficulty with conditions ofuncertainty. In others, risk taking is encouraged, anddecision making under uncertainty is common.

INDIVIDUAL VS GROUP REWARD

In some countries, personnel who do outstanding

work are given individual rewards in the form ofbonuses and commissions. In others, cultural normsrequire group rewards, and individual rewards arefrowned on.


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CULTURE

INFORMAL VS FORMAL PROCEDURES.

In some societies, much is accomplished through

informal means. In others, formal procedures are

set forth and followed rigidly.

HIGH VS LOW ORGANIZATIONAL LOYALTY

In some societies, people identify very strongly

with their organization or employer. In others,people identify with their occupational group,

such as engineer or mechanic.


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CULTURE

COOPERATION VS COMPETITION:

Some societies encourage cooperation between theirpeople. Others encourage competition between theirpeople.

SHORT TERM VS LONG TERM HORIZONS Some cultures focus most heavily on short term horizons,

such as short range goals of profit and efficiency. Othersare more interested in long range goals, such as marketshare and technologies development.

STABILITY VS INNOVATION: The culture of some countries encourage stability and

resistance to change. The culture of others puts high valueon innovations and change.


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CULTURE

VALUES IN CULTURE

Basic convictions that people have regarding what

is right and wrong, good and bad, important and

unimportant.

POWER DISTANCE:

The extent to which less powerful members of

institutions and organizations accept that power isdistributed unequally.


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CULTURE

UNCERTAINTY AVOIDANCE: The extent to which people feel threatened by

ambiguous situations and have created beliefs andinstitutions that try to avoid these.

INDIVIDUALISM: The tendency of people to look after themselves and

their immediate family only.

COLLECTIVISM: The tendency of people to belong to groups or

collectives and to look after each other in exchangefor loyalty.


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CULTURE

MASCULINITY: A culture in which the dominant values in society are success.

Money, and things.

FEMININITY:

A culture in which the dominant values in society are caring forothers and the quality of life.

UNIVERSALISM: The belief that ideas and practices can be applied everywhere in

the world without modification.

PARTICULARISM: The belief that circumstances dictate how ideas and practices

should be applied and something cannot be done the sameeverywhere.


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CULTURE

COMMUNITARIANISM:

Refers to people regarding themselves as part of a group.

NEUTRAL CULTURE:

A culture in which emotions are held in check.

EMOTIONAL CULTURE A culture in which emotions are expressed openly and

naturally.

SPECIFIC CULTURE:

A culture in which individuals have a large public spacethey readily share with others and a small private spacethey guard closely and share with only close friends andassociates.


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CULTURE

DIFFUSE CULTURE: A culture in which public space and private space are

similar in size and individuals guard their public spacecarefully, because entry into public space affords entry

into private space as well. ACHIEVEMENT CULTURE:

A culture in which people are accorded status basedon how well they perform their functions.

ASCRIPTION CULTURE: A culture in which status is attributed based on who

or what a person is.


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CULTURE

GLOBE (GLOBAL LEADERSHIP AND

ORGANIZATIONAL BEHAVIOUR

EFFECTIVENESS)

A multi country study and evaluation of cultural

attributes and leadership behaviours.


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CHAPTER-5

MANAGING ACROSS CULTURES


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THE STRATEGY FOR MANAGING ACROSS CULTURES As MNCs become more transnational, their strategies must

address the cultural similarities and differences in their variedmarkets. A good example is provided by RENAULT, theFRENCH auto giant. For years Renault manufactured a narrow

product line that it sold primarily in France. Because of thislimited geographic market and the fact that its cars continued tohave quality-related problems, the companys performance wasat best mediocre. Several years ago, Renault made a number ofstrategic decisions that dramatically changed the way it didbusiness. Among other things, it brought controlling stakes in

Nissan Motor of Japan, Samsung of South Korea etc. At thesame the firm is working to improve its effectiveness in dealingwith governments, unions, and employees, as well as tounderstand the cultural differences in customers preferences inEUROPE, ASIA, AND THE AMERICAS.


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ETHNOCENTRIC PREDISPOSITION

A NATIONALISTIC PHILOSOPHY OF MANAGEMENTWHEREBY THE VALUES AND INTERESTS OF THE PARENTCOMPANY GUIDE STRATEGIC DECISIONS.

POLYCENTRIC PREDISPOSITION A PHILOSOPHY OF MANAGEMENT WHEREBY

STRATRATEGIC DECISIONS ARE TAILORED TO SUIT THECULTURES OF THE COUNTRIES WHERE THE MNCOPERATES.

REGIOCENTRIC PREDISPOSITION A PHILOSOPHY OF MANAGEMENT WHEREBY THE FIRM

TRIES TO BLEND ITS OWN INTERESTS WITH THOSE OF ITSSUBSIDIARIES ON A REGIONAL BASIS.


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GEOCENTRIC PREDISPOSITION

A PHILOSOPHY OF MANAGEMENT WHEREBY THE

COMPANY TRIES TO INTEGRATE A GLOBAL

SYSTEMS APPROACH TO DECISION MAKING.

GLOBALIZATION IMPERATIVES

A BELIEF THAT ONE WORLDWIDE APPROACH TO

DOING BUSINESS IS THE KEY TO BOTH EFFICIENCYAND EFFECTIVENESS.


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CROSS CULTURAL DIFFERENCES AND

SIMILARITIES

PAROCHIALISM

THE TENDENCY TO VIEW THE WORLD THROUGH ONES

OWN EYES AND PERSPECTIVES.

SIMPLIFICATION

THE PROCESS OF EXHIBITING THE SAME ORIENTATIONTOWARD DIFFERENT CULTURE FROUPS.


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CULTURAL DIFFERENCES IN VARIOUS COUNTRIES ANDREGIONS.

DOING BUSINESS IN VARIOUS PARTS OF THE WORLDREQUIRES THE RECOGNITION AND UNDERSTANDING OFCULTURAL DIFFERENCES. SOME OF THESE DIFFERENCESREVOLVE AROUND THE IMPORTANCE THE SOCIETYASSIGNS TO TIME, STATUS, CONTROL OF DECISIONMAKING, PERSONAL ACCOMPLISHMENT, AND WORKITSELF. THESE TYPES OF CULTURAL DIFFERENCES HELP TOEXPLAIN WHY EFFECTIVE MANAGERS IN CHINA OR

PAKISTAN OFTEN ARE QUITE DIFFERENT FROM THOSE INFRANCE, AND WHY A SUCCESSFUL STYLE IN THE JAPANWILL NOT BE IDEAL IN UNDER DEVELOPED COUNTRIES.


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CHAPTER-6

ORGANIZATIONAL CULTURES AND DIVERSITY


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ORGANIZATIONAL CULTURES AND

DIVERSITY

THE NATURE OF ORGANIZATIONAL CULTURE

ORGANIZATIONAL CULTURE SHARED VALUES AND BELIEFSTHAT ENABLES MEMBERS TO UNDERSTAND THEIR ROLESAND THE NORMS OF THE ORGANIZATION.

FAMILY CULTURE A CULTURE THAT IS CHARACTERIZED BY A STRONG

EMPHASIS ON HIERARCHY AND ORIENTATION TO THEPERSON.

EIFFEL TOWER CULTURE A CULTURE THAT IS CHARACTERIZED BY STRONG EMPHSIS

ON HIERARCHY AND ORIENTATION TO THE TASK.


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DIVERSITY

GUIDED MISSILE CULTURE

A CULTURE THAT IS CHARACTERIZED BY STRONG

EMPHSIS ON EQUALITY IN THE WORKPLACE AND

ORIENTATION TO THE TASK.

INCUBATOR CULTURE

A CULTURE THAT IS CHRACTERIZED BY STRONG

EMPHASIS ON EQUALITY AND ORIENTATION TOTHE PERSON.


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DIVERSITY

HOMOGENEOUS GROUP

A GROUP IN WHICH MEMBERS HAVE SIMILAR

BACKGROUNDS AND GENERALLY PERCEIVE,

INTERPRET, AND EVALUATE EVENTS IN SIMILARWAYS.

TOKEN GROUPS

A GROUP IN WHICH ALL MEMBERS BUT ONE HAVETHE SAME BACKGROUND, SUCH AS A GROUP OF

JAPANESE RETAILERS AND BRITISH ATTRONEY


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DIVERSITY

BICULTURAL GROUP

A GROUP IN WHICH TWO OR MORE MEMBERS REPRESENTEACH OF TWO DISTINCT CULTURES, SUCH AS FOURMEXICANS AND FOUR TAIWANESE WHO HAVE FORMED A

TEAM TO INVESTIGATE THE POSSIBILITY OF INVESTING IN AVENTURE.

MULTICULTURAL

A GROUP IN WHICH THERE ARE INDIVIDUALS FROM THREE

OR MORE DIFFERENT ETHNIC BACKGROUNDS, SUCH ASTHREE PAKISTAN, THREE GERMAN, THREE CHINESE, ANDTHREE SRI-LANKANS MANAGERS WHO ARE LOOKING INTOMINING OPERATIONS IN SOUTH AFRICA.


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DIVERSITY

GROUPTHINK SOCIAL CONFORMITY AND PRESSURES ON

INDIVIDUAL MEMBERS OF A GROUP TO CONFORMAND REACH CONSENSUS.

SUCCESS IN THE INTERNATIONAL ARENA Often is heavily determined by a companys ability to

manage multiculturalism and diversity. Firms progressthrough four phases in their international evolution: DOMESTIC CORPORATION

INTERNATIONAL CORPORATION

MULTINATIONAL CORPORATION

GLOBAL CORPORATION


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DIVERSITY

MULTICULTURALISM AND DIVERSITY

There are a number of ways to examinemulticulturalism and diversity. One is by looking at

the domestic multiculturalism and diverseworkforce that operates in the MNCs homecountry. Another is by examining the variety ofdiverse groups that exist in MNCs, including

homogeneous groups, token groups, biculturalgroups, and multicultural groups. Several potentialproblems as well as advantages are associatedwith multicultural, diverse teams.


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DIVERSITY

MANAGING CULTURALLY DIVERSE GROUPS

A number of guidelines have proved to be

particularly effective in managing culturally

diverse groups. These include careful selection ofthe members, identification of the groups goals,

establishment of equal power and mutual respect

among the participants, and delivering positive

feedback on performance.

Cross Cultural Management-4,5,6

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