MGMT 371: Global Management I. Managing Across Cultures A.Cultural Influences B.Cultural Dimensions...

MGMT 371:Global Management

I. Managing Across CulturesA. Cultural InfluencesB. Cultural DimensionsC. Expatriates/foreign

assignments

Cultural Influences on Organizational Behavior

Economic/technological setting Political/legal setting Ethnic background Religion

Societal Culture Customs Language

Personal values/ethics Attitudes Assumptions Expectations

Organizational culture

Organizational behavior

I. Managing Across Cultures

Ethnocentrism Cultural Intelligence Project GLOBE: Nine Dimensions Individualistic vs. Collectivist Monochronic vs. Polychronic High Context vs. Low Context Interpersonal Space

Ethnocentrism

Who’s guilty?What are the effects?What can managers do?

“An outsider’s seemingly natural ability to interpret someone’s unfamiliar and ambiguous gestures the way that person’s compatriots would.”

Innate or learned?

Cultural Intelligence (CQ)

Cultural Intelligence (CQ)

Dimensions:– Cognitive– Physical– Emotional/motivational

Cultural Dimensions from the GLOBE Project

Power Distance Uncertainty Avoidance Societal Collectivism In-group Collectivism Gender Egalitarianism Assertiveness Future Orientation Performance

Orientation Humane Orientation

.

Individualism vs. Collectivism

IndividualisticIndividualistic “I” and “Me” cultures Priority given to

individual freedom and choice– Israel– Romania– Nigeria– Canada– United States

CollectivistCollectivist “We” and “Us” cultures Rank shared goals higher

than individual desires and goals

Subordinate their own wishes and goals to those of the relevant social unit– Egypt– Nepal– Mexico– India– Japan

.

High vs. Low Context Cultures

High-ContextHigh-Context Establish social trust first Value personal relations

and goodwill Negotiations slow and

ritualistic– Chinese – Korean– Japanese

Low-ContextLow-Context Get down to business

first Value expertise and

performance Agreement by specific,

legalistic contract Negotiations as efficient

as possible– Germany– Scandinavia– US

.

Cultural Dimensions: Hofstede-Bond Studies

Extent people embrace competitive masculine traits, or nurturing feminine traits

Masculinity-Femininity

How loose or tight the bond between individuals and societal groups

Individualism-Collectivism

Extent people expect inequality (hierarchy) in social institutions

Power Distance

Cultural Dimensions: Hofstede-Bond Studies

Extent are people oriented toward the future by saving and being persistent vs. being oriented toward the present and past by respecting tradition and social obligations

Long-Term vs. Short-Term Orientation

Extent people prefer structured vs. unstructured situations?

Uncertainty Avoidance

Expatriates / Foreign Assignments

4 STAGE CYCLE:1. Selection and Training

2. Arrival and adjustment

3. Settling in / Acculturating

4. Returning / Adjusting

Why U.S. Expatriates Fail on Foreign Assignments

1) Spouse/family cannot adjust

2) Manager cannot adapt to new physical or cultural surroundings

3) Lack of preparation/training

4) Manager not culturally intelligent

5) Manager not technically competent

6) Manager not motivated for assignment