Theme3(attach)-090417.ppt

8/14/2019 Theme3(attach)-090417.ppt

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International cultures and project

work

Lecture slide attachments


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Attachment 1:

Expatriates and cultural differences


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Expatriate

A citizen of one country living and

working in another country.


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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 ifimplemented earlier

May make it difficult to recruit

qualified personnel

May reduce the amount of control

exercised by headquarters


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Advantages and Disadvantages of Using Local and Expatriate

Employees to Staff International Subsidiaries (cont.)

Expatriates

Advantages

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


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Figure 20.3 Phases in acculturation


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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 culturalenvironment

Lack of Predeparture Cross-Cultural Training Only about one-third of MNCs provideanycross-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 expatriates spouse and children to adapt to life inanother country is one of the most important reasons for failure


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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 ofprestige, poser, independence, and authority

Poor Planning for Return Position

Often management repatriates an employee with no idea of whatposition this person should hold in the home office

Reverse Culture Shock

Expatriates are usually unaware of how much psychologicalchange they have undergone until they return home


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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 afuture date

Screen candidates spouses and families


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Attachment 2:

The Hofstede framework (1980)


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Hofstede Cultural Framework

1. Power Distance

2. Individualism vs.

Collectivism3. Masculinity vs.

Femininity

4. UncertaintyAvoidance

5. Long Term

Orientation


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Power Distance

...the extent to which

the less powerful

members ofinstitutions and

organizations within a

country expect and

accept that power isdistributed unequally.


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0

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100

U.S.A.

Canada

Germany

Japan

France

Netherlands

HongKong

Indonesia

WestAfrica

Russia

P.R.C


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Power Distance at Work

Hierarchy

Centralization

Salary range

Participation

Ideal Boss

Privilege & statussymbols


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Individualism vs. Collectivism

Individualist societies:

ties are loose and

everyone looks out forhimself or herself

Collectivist societies:

people integrated into

strong, cohesivegroups; protection is

exchanged for loyalty


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80

90

100

U.S.A

.

Canada

Germany

Japan

France

Netherlands

HongKong

Indonesia

WestAfrica

Russia

P.R.C


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Individualism / Collectivism

at Work Employee-employer

relationship

Hiring and promotiondecisions

Managerial focus

Task vs. relationship

priority


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Masculinity vs. Femininity

Masculine societies:

social gender roles are

distinct (men focus onmaterial success;

women on quality of

life)

Feminine societies:social gender roles

overlap (both quality

of life)


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0

10

20

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40

50

60

70

80

90

100

U.S.A.

Canada

Germany

Japan

France

Netherlands

HongKong

Indonesia

WestAfrica

Russia

P.R.C


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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


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Uncertainty Avoidance

the extent to which

the members of a

culture feel threatenedby uncertain or

unknown situations.

NOT the same as risk

avoidance

Presence of rules


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0

10

20

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40

50

60

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80

90

100

U.S.A.

Canada

Germany

Japan

France

Netherlands

HongKong

Indonesia

WestAfrica

Russia

P.R.C


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Uncertainty Avoidance at Work

Necessity of rules

Time orientation

Precision &punctuality

Interpretation of

What is different

Appropriateness of

emotional displays


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Long term orientation

Confucian Dynamism The newest

dimension

three universaldimensions and two

fourth dimensions

Truth vs. Virtue: What

one believesvs. What

one does


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0

20

40

60

80

100

120

U.S.A.

Canada

Germany

Japan

France

Netherlands

HongKong

Indonesia

WestAfrica

Russia

P.R.C


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Confucian Dynamism

Short-term orientation

Social pressure to

keep up with theJoneses

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


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Hofstede Framework Comparisons

0

20

40

60

80

100

120

140

PD ID MA UA LT

U.S.A.

CanadaJapan

Netherlands

P.R.C


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Idiosyncrasies of North American

Management Theory Stress on Market

Processes

Stress on theIndividual

Stress on Managers

rather than Workers

Documents

Theme3(attach)-090417.ppt