International cultures and project work

Lecture slide attachments

Attachment 1:

Expatriates and cultural differences

Expatriate

A citizen of one country living and working in another country.

Advantages and Disadvantages of Using Local and Expatriate Employees to Staff International Subsidiaries

Locals

Advantages• Lower labor costs• Demonstrates trust in local

citizenry• Increases acceptance of the

company by the local community• Leads to recognition of the

company as a legitimate participant in the local economy

• Effectively represents local considerations and constraints in the decision-making process

Disadvantages• Makes it difficult to balance local

demands and global priorities• Leads to postponement of

difficult local decisions (such as layoffs) until they are unavoidable, when they are more difficult, costly, and painful than they would have been if implemented earlier

• May make it difficult to recruit qualified personnel

• May reduce the amount of control exercised by headquarters

Advantages and Disadvantages of Using Local and Expatriate Employees to Staff International Subsidiaries (cont.)

ExpatriatesAdvantages• Cultural similarity with parent

company ensures transfer of business/management practices

• Permits closer control and coordination of international subsidiaries

• Gives employees a multinational orientation through experience at parent company

• Establishes a pool of internationally experienced executives

• Local talent may not yet be able to deliver as much value as expatriates can

Disadvantages• Creates problems of adaptability

to foreign environment and culture

• Increases the “foreignness” of the subsidiary

• May involve high transfer, salary, and other costs

• May result in personal and family problems

• Has disincentive effect on local-management morale and motivation

• May be subject to local government restrictions

Figure 20.3 Phases in acculturation

Why International Assignments end in Failure• Career Blockage

– Many feel that the home office has forgotten them and that their career has been sidetracked

• Culture Shock– Many people who take international assignments cannot adjust to a different cultural

environment

• Lack of Predeparture Cross-Cultural Training– Only about one-third of MNCs provide any cross-cultural training to expatriates

• Overemphasis on Technical Qualifications– The same traits that led to success at home can be disastrous in another country

• Getting Rid of a Troublesome Employee– International assignments may seem to be a convenient way of dealing with mangers who

are having problems in the home office

• Family Problems– The inability or unwillingness of the expatriate’s spouse and children to adapt to life in

another country is one of the most important reasons for failure

Difficulties on Return

• Lack of Respect for Acquired Skills– International experience is not highly valued

• Loss of Status– Returning expatriates often experience a substantial loss of

prestige, poser, independence, and authority

• Poor Planning for Return Position– Often management repatriates an employee with no idea of what

position this person should hold in the home office

• Reverse Culture Shock– Expatriates are usually unaware of how much psychological

change they have undergone until they return home

Selecting Employees for International Assignments

• Emphasize cultural sensitivity as a selection criteria

• Establish a selection board of expatriates• Require previous international experience• Explore the possibility of hiring foreign-born

employees who can serve as “expatriates” at a future date

• Screen candidates’ spouses and families

Attachment 2:

The Hofstede framework (1980)

Hofstede Cultural Framework

1. Power Distance

2. Individualism vs. Collectivism

3. Masculinity vs. Femininity

4. Uncertainty Avoidance

5. Long Term Orientation

Power Distance

• “...the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.”

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Power Distance at Work

• Hierarchy• Centralization• Salary range• Participation• Ideal Boss• Privilege & status

symbols

Individualism vs. Collectivism

• Individualist societies: ties are loose and everyone looks out for himself or herself

• Collectivist societies: people integrated into strong, cohesive groups; protection is exchanged for loyalty

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Individualism / Collectivism at Work

• Employee-employer relationship

• Hiring and promotion decisions

• Managerial focus• Task vs. relationship

priority

Masculinity vs. Femininity

• Masculine societies: social gender roles are distinct (men focus on material success; women on quality of life)

• Feminine societies: social gender roles overlap (both quality of life)

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Masculinity / Femininity at Work

• Centrality of work• Ways of managing &

decision making• Fem: equality,

solidarity, quality of work life

• Mas: equity, compete, performance

• Conflict resolution

Uncertainty Avoidance

• “…the extent to which the members of a culture feel threatened by uncertain or unknown situations.”

• NOT the same as risk avoidance

• Presence of rules

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Uncertainty Avoidance at Work

• Necessity of rules• Time orientation• Precision &

punctuality• Interpretation of

“What is different…”• Appropriateness of

emotional displays

Long term orientation Confucian Dynamism

• The ‘newest’ dimension

• three universal dimensions and two fourth dimensions

• Truth vs. Virtue: What one believes vs. What one does

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Confucian Dynamism

• Short-term orientation• Social pressure to

‘keep up with the Joneses’

• small savings• expect quick results• concern with

possessing Truth

• Long-term orientation• Thrift: being sparing

with resources• large savings• perseverance toward

slow results• concern with

respecting the demands of Virtue

Hofstede Framework Comparisons

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Idiosyncrasies of North American Management Theory

• Stress on Market Processes

• Stress on the Individual

• Stress on Managers rather than Workers