Cross Cultural Management Describes organizational behavior within countries and cultures Compares...
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Transcript of Cross Cultural Management Describes organizational behavior within countries and cultures Compares...
Cross CulturalManagement
• Describes organizational behavior within countries and cultures
• Compares organizational behavior across countries and cultures
• Seeks to understand and improve the interaction of customers, suppliers, employees, executives, and others from countries and cultures around the world
Culture defined
• “The collective programming of the mind which distinguishes the members of one human group from another…the interactive aggregate of common characteristics that influence a human group’s response to its environment.” – Hofstede
• Socially derived, taken-for-granted assumptions that shape behavior, or structure one’s perception of the world
What are Americans like?
• Direct, don’t talk around things.• Competitive• Independent and individualistic• Questioners: Ask a lot of questions• Dislike silence
– Would rather talk about the weather than deal with silence
• Punctual
• “For managers who have to operate in an unfamiliar culture, training based on home-country theories is of very limited use and may even do more harm than good”
– An American was sent to manage a bank in Venezuela. He asked the employees for their input and recommendations to solve a problem. How did the employees react?
Why Study International Organizational Behavior?
Expectations of Manger’s Across Cultures
• “It is important for managers to have at hand precise answers to most of the questions their subordinates may raise about their work.”
• Percentage agreeing with the above:– Sweden: 10%
– Germany: 46%
– Spain & Japan: 78%
– USA: 18%
Average vacation days for employees with one year of service
• USA: 10 days
• Spain: 22 days
• Germany: 18
• Sweden: 30
• Finland: 20
• Japan:10
Maternity Leave
• Sweden: Either parent, 90% pay for 12 months
• Denmark, 90% pay for 28 weeks
• Germany, 14 weeks, 100% pay
• Ireland, 14 weeks, 70% pay
• Italy, 20 weeks, 80% pay
• USA, 12 weeks, unpaid (FMLA)
Hofstede’s Study
• Study of IBM employees across the world– National culture explained more of the
differences in work-related values and attitudes than did:
• Position within the organization• Profession• Age• Gender
• Found four core dimensions of national culture
Hofstede’s Dimensions of National Culture
• Individualism versus collectivism– Individualism: (USA, Australia)
• Emphasis on the individual: make primary contributions to oneself
– Collectivism: (Japan)• Emphasis on the group: make primary contributions to group
goals and objectives
• Members are expected to look after other members
– Implications• Organizational loyalty, teamwork, social loafing
Hofstede’s Dimension’s (cont.)
• Power distance: • measures the extent to which the less powerful
members of an organization accept/expect an unequal distribution of power
– Large “PD” (Venezuela, Philippines)• Wide differences in power are accepted and often
preferred – Titles & hierarchy are very important
– Small “PD” (Denmark, Ireland)• Power differences are played down
– Boss is not someone to fear
• Implications– Organizational structure (pyramid vs. flat) – Decision-making issues: Participative vs. authoritarian,
decentralized vs. centralized
Hofstede’s Dimensions (cont.)
• Uncertainty Avoidance– The extent to which people feel threatened by
ambiguity & uncertainty (risk) and therefore try to avoid such situations
• Implications– Career stability (job security), formal rules
– High in uncertainty avoidance (Portugal, Greece)• Concept of “lifetime employment”• Formal rules help to reduce uncertainty• Working hard is a way of reducing uncertainty (“karoshi”)
– Low in uncertainty avoidance (Denmark, Singapore)• Risk taking is more accepted & encouraged
Hofstede’s Dimensions (cont.)• Quantity vs. quality of life
– Quantity: emphasizes acquisition of money and things (materialism) – (USA)
– Quality: emphasizes relationships and overall quality of life (time for activities outside of work is important) – (Sweden)
• Implications for work hours, vacation time, pay issues
• Gender roles:The extent to which career and family roles for men and women are distinct– Similar: Both men and women work outside the home and
take care of family obligations (Sweden)– Unique: Men work outside of the home, women take care of
the family (Japan, Austria, Mexico)• Implications for paternity & maternity leave, on-site day care, flex-
time
Expatriates
• People from one national culture working in another for a fixed period of time– U.S. expatriates (3 years is the average
assignment)– Average 3 year assignment can cost firms up to
$1 million per expat• Moving expenses, education, expat premiums, cost
of living differences, inflation, etc.
Catskill Roads
• What should they do? Why?
• In general, what factors should be considered in the decision to accept or reject an expatriate assignment?
Why U.S. managers would accept an international assignment
• Cross-cultural experience (52%)
– Gain a greater understanding of another way of life
• Money (40%)
– Higher salary, more fringe benefits
• Career Advancement (21%)
– Increased opportunities & exposure
Why U.S. managers would NOT accept an international assignment
• Location– Political unrest, dangerous
• Career– High risk of job failure, isolation from home
company, forgotten
• Family– Dual-careers, spouse unwilling to move
Repatriation Issues
• Will I have a job at the same company when I return?– 46% of U.S. firms do not guarantee a position at home
upon completion of the assignment• Mergers, downsizing, layoffs
– An international assignment may be a high-risk career strategy
– Why type of job will I have upon return?• Less challenging, lower status, and less responsibility• High rate of turnover for “expats” upon return (25% within a
year)– Consider the cost of an expatriate assignment (about $1 million)
and the potential loss of part of this “investment”
Reasons for Expatriate Failure
• U.S. “Expats” (up to 45% failure rate)1) Inability of spouse to adjust
• Career disruption• Social needs• Personal & career identity
2) Manager’s inability to adjust3) Other family reasons
• Children at school & related adjustments• Issues with family in the U.S. (elder care)
Expatriate Selection Issues
• Personality issues– High tolerance for ambiguity– High self-monitor – Emotional stability– Nonjudgmental, nonevaluative– Flexibility & willingness to try new ways– Initiative
Expatriate Selection Issues (cont.)
• Family Issues– “Would your spouse be interrupting a career to
accompany you? If yes, how might this affect your spouse and your relationship with each other?
– “Are you prepared to have less contact with your extended family?”
• AT&T’s self-assessment of “cultural-adaptability”