[PPT]PowerPoint Presentation - Welcome to BOYD...
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Transcript of [PPT]PowerPoint Presentation - Welcome to BOYD...
Cover Slide
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 5
Managing across Cultures
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Learning Objectives
• Examine the strategic dispositions that characterize responses to different cultures
• Discuss cross-cultural differences and similarities
• Review cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Strategic Predispositions
• Firm allows values and interests of the parent company to guide strategic decisions
Ethnocentric
• Company makes strategic decisions tailored to suit the cultures of the countries where the MNC operates
Polycentric
• Firm blends its own interests with those of its subsidiaries on a regional basis
Regiocentric
• Company integrates a global systems approach to decision making
Geocentric
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Table 5.1 - Orientation of an MNC under Different Profiles
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Globalization Imperative
• Belief that one worldwide approach to doing business is key to efficiency and effectiveness
• Effective multinational companies (MNCs) should make efforts to address local needs– Regional strategies can be used effectively to
capture and maintain worldwide market niches
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Need for Unique Strategies for Different Cultures
• Diversity of worldwide industry standards• Continual demand by local customers for
differentiated and locally-sourced products• Difficulty of managing global organizations• Local units should be allowed to use their own
abilities and talents unconstrained by headquarters
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Delivery of Marketing Message
Nationality Nature of advertising
Germans • Factual and rational • Spots feature a standard family of two parents, two children, and
grandmother
French • Avoidance of reasoning or logic• Emotional, dramatic, and symbolic• Spots are viewed as cultural events and reviewed as if they were
literature or films
British • Laughter is valued• Typical broad, self-deprecating commercial mocks both the
advertiser and consumer
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Challenges Faced by MNCs
• Staying abreast of local market conditions and not assuming that all markets are same
• Knowing the strengths and weaknesses of its subsidiaries and assisting them in addressing local demands
• Giving more autonomy to the subsidiary
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Barriers to Cross-Cultural Management
• Tendency to view the world through one’s own eyes and perspectives
Parochialism
• Process of exhibiting the same orientation toward different cultural groups
Simplification
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Table 5.2 - Six Basic Cultural Variations
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Cross-Cultural Similarities
• Russia and U.S.– Traditional management, communication, human
resources, and networking activities– Organizational behavior modification interventions
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Cross-Cultural Similarities (continued)
• Korea and U.S.– Organizational commitment relates to employees'
position in the hierarchy, tenure in their current position, and age
– Commitment increases with positive perceptions of organizational climate
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Cross-Cultural DifferencesExamples Human resource management differences
Mexico • Concept of an hourly wage plays a minor role
Austria and Brazil • Employees with one year of service are automatically given 30 days of paid vacation
Some jurisdictions in Canada
• Legislated pay equity between male- and female-intensive jobs
Japan • Compensation levels are determined by age, length of service, and educational background
United Kingdom • Employees are allowed up to 40 weeks of maternity leave, and employers must provide a government-mandated amount of pay for 18 of those weeks
Majority of large Swedish companies
• Head of human resources is on the board of directors
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Approaches for Formulating Effective Compensation Strategies in Different Clusters
Examples Strategies
Pacific Rim countries • Incentive plans should be group-based
Japan, Hong Kong, Malaysia, the Philippines, and Singapore
• High salaries should be paid to senior-level managers
Italy and Belgium • Higher salaries should be paid to local senior-level managers
Portugal and Greece • Profit-sharing plans are effective
Denmark, the Netherlands, and Germany
• Personal-incentive plans are useful
Great Britain, Ireland, and the United States
• Compensation plans should provide opportunity for earnings, recognition, advancement, and challenge
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
GLOBE Project
• Provides an extensive breakdown of:– How managers behave– How different cultures can affect the perspectives
of managers
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Business in China
• Primary criterion - Technical competence • Value is placed on punctuality, patience,
guanxi networking, and reciprocity– Guanxi: Good connections
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Business in Russia
• Building personal relationships with partners is important
• Working with local consultants can be valuable• Gift-giving is considered ethical when
engaging in business transactions
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Business in India
• India has become a desirable market because of unsaturated consumer markets with cheap labor and production locations
• Bureaucratic restrictions have been lifted to attract foreign investment and raise economic growth rate
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Business in France
• Social interactions are affected by class stereotypes
• French organizations tend to be highly centralized and have rigid structures
• Management is autocratic in nature
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Business in Brazil
• Brazilian businesspeople tend to have a relaxed work ethic
• Face-to-face interaction is preferred• Patience is key when managing business
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Business in Arab Countries
• Arab businesspeople:– Follow a fatalistic approach to time– Tend to attach a great deal of importance to status
and rank• Business-related discussions may not occur
until the third or fourth meeting
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Review and Discuss
1. Define the four basic predispositions MNCs have toward their international operations
2. If a locally based manufacturing firm with sales of $350 million decided to enter the EU market by setting up operations in France, which orientation would be the most effective: ethnocentric, polycentric, regiocentric, or geocentric? Why?
– Explain your choice
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Review and Discuss (continued 1)
3. In what ways are parochialism and simplification barriers to effective cross-cultural management?
– Give an example for each case
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Review and Discuss (continued 2)
4. Many MNCs would like to do business overseas in the same way that they do business domestically– Do research findings show that any approaches
that work well in the U.S. also work well in other cultures?
• If so, identify and describe two