Developing Global Managers

Chapter Three

Copyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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After reading the material in this chapter, you should be able to:

• Define ethnocentrism and explain what Hofstede concluded about applying American management theories in other countries.

• Identify and describe the nine cultural dimensions from the GLOBE project.

• Draw a distinction between individualistic cultures and collectivist cultures.

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After reading the material in this chapter, you should be able to:

• Demonstrate your knowledge of these two distinctions: high-context versus low-context cultures and monochronic versus polychronic cultures.

• Explain what the GLOBE project has taught us about leadership.

• Identify an OB trouble spot for each stage of the foreign assignment cycle

A Model of Societal and Organizational Cultures

• Societal culture- Beliefs and values about what is desirable and

undesirable in a community of people, and a set of formal or informal practices to support the values

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Cultural Influences on Organizational Behavior

Figure 3-1

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Managing Societal and Organizational Culture

• Employees bring their societal culture to work with them in the form of customs and language

• Organizational culture affects an individual’s values, ethics, attitudes, assumptions, and expectations

Ethnocentrism

• Ethnocentrism - belief that one’s native country, culture,

language, and behavior are superior to all others.

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Dealing with Ethnocentrism

• Managers can effectively deal with ethnocentrism through:

- education- greater cross-cultural awareness - international experience- a conscious effort

to value cultural diversity

Question?

Patricia has lived in the US her entire life. She believes that the US is the greatest country in the world. Her belief is an example of _____. 

A.Societal normB.Cultural paradoxC.EthnocentrismD.Collectivism

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The Hofstede Study: How Well Do US Management Theories Apply in Other Countries

• Power distance – How much inequality does someone expect in social situations?

• Individual-collectivism – How loosely or closely is the person socially bonded?

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The Hofstede Study: How Well Do US Management Theories Apply in Other Countries

• Masculinity-femininity – Does the person embrace competitive, performance-oriented traits or nurturing, relation-oriented feminine traits?

• Uncertainty-avoidance – How strongly does the person desire highly structured situations?

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The Hofstede Study: How Well Do US Management Theories Apply in Other Countries

1. Management theories and practices need to be adapted to local cultures

2. Cultural arrogance is a luxury individuals, companies, and nations can no longer afford in a global economy

See excerpt of Hofstede article

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Five Cultural Perspectives

• Basic cultural dimensions• Individualism versus collectivism• High-context and low-context cultures• Monochronic and polychronic time orientation

• Cross-cultural leadership

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Becoming Cross-Culturally Competent

• Cultural intelligence - ability to interpret ambiguous cross-cultural

situations correctly

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Project GLOBE

• GLOBE (Global Leadership and Organizational Behavior Effectiveness)

- attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes

Cultural Dimensions fromthe GLOBE Project

• Power distance – How much unequal distribution of power should there be in organizations and society?

• Uncertainty avoidance – How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability?

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Cultural Dimensions fromthe GLOBE Project (cont.)

• Institutional collectivism – How much should leaders encourage and reward loyalty to the social unit?

• In-group collectivism – How much pride and loyalty should individuals have for their family or organization?

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Cultural Dimensions fromthe GLOBE Project (cont.)

• Gender egalitarianism – How much effort should be put into minimizing gender discrimination and role inequalities?

• Assertiveness – How confrontational and dominant should individuals be in social relationships?

Cultural Dimensions fromthe GLOBE Project (cont.)

• Future orientation – How much should people delay gratification by planning and saving for the future?

• Performance orientation – How much should individuals be rewarded for improvement and excellence?

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Cultural Dimensions fromthe GLOBE Project (cont.)

• Humane orientation – How much should society encourage and reward people for being kind, fair, friendly, and generous

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Countries Ranking Highest and Loweston the GLOBE Cultural Dimensions

Question?

Rebecca has always focused on delaying gratification and saving money for the well-being and education of her children and her own retirement. According to dimensions from the GLOBE project, Rebecca's behavior reflects:

A.Future orientationB.In-group collectivismC.Masculinity-femininityD.Assertiveness

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Individualism versus Collectivism

• Individualistic culture – primary emphasis on personal freedom and choice

• Collectivist culture – personal goals less important than community goals and interests

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High-context cultures and Low-context cultures

• High-context cultures – primary meaning derived from nonverbal situational cues

• Low-context cultures – primary meaning derived from written and spoken words

Question?

Michelle is torn between her desire to go on vacation and her organization's desire to have her at work. She decides to take her vacation. Michelle is probably from a(n) _____ culture. 

A.OrganizationalB.Low-contextC.High-contextD.Individualistic

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Cultural Perceptions of Time

• Monochronic time - preference for doing one thing at a time

because time is limited, precisely segmented, and schedule driven

• Polychronic time - preference for doing more than one thing at a

time because time is flexible and multidimensional

Leadership Attributes Universally Liked and Disliked

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Question?

Manuel is manager of a work crew. He keeps to himself and prefers not to interact with his employees. This is an example of which negative leader attribute.

A.AsocialB.RuthlessC.EccentricD.Loner

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Preparing for a Foreign Assignment

• Expatriate - anyone living or

working in a foreign country

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Preparing for a Foreign Assignment

• Major stumbling blocks for American managers working in foreign countries

- Personal and family adjustment problems- Homesickness

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Preparing for a Foreign Assignment

• Important success factors in a foreign assignment

- Cultural adaptability- Patience and flexibility- Tolerance for other’s beliefs

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Avoiding Unrealistic Expectations

• Realistic job preview is a must

• Cross-cultural training - any type of structured experience designed to

help departing employees adjust to a foreign culture

The Foreign Assignment Cycle

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Figure 3-2

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Avoiding Culture Shock

• Culture shock - anxiety and doubt caused by an overload of

new expectations and cues

• Best defense is comprehensive cross-cultural training, including intensive language study

Question?

Danielle is struggling with the anxiety of driving on the left-hand side of the road at her new job assignment in the U.K. This is called ___________.

A.MentoringB.Collective cultureC.Culture shockD.Societal adjustment

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Support during the Foreign Assignment

• Host-country sponsors – assigned to individual managers or families

- Serve as “cultural seeing-eye dogs”

• Maintain an active dialog with established mentors back home

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Avoiding Reentry Shock

• Three areas for potential reentry shock are work, social activities, and general environment

• Key to a successful foreign assignment is making it a well-integrated link in a career chain rather than an isolated adventure

Supplemental Slides

• Slides 39-44 contain extra non-text examples to integrate and enhance instructor lectures

- Slides 39: Management in the Movies: Gung Ho- Slide 40-41: Tips for Business Travelers- Slide 42: Role of Expatriates- Slide 43-44: Video discussion slides

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Management in the MoviesGung Ho – “Assan Motors”

• In this scene, Stevenson has finally found his meeting with the Assan Motors executives. He sets up and begins his proposal to bring Assan Motors to Hadleyville.

• What would you have done differently than Stevenson?

• What decisions should the executives consider before opening a plant in the U.S.?

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Tips for Business Traveler’s

• Make Packing a Reflex Action- Pack the same items in the same way for

every trip• Get Briefed

- Research latest economic and business information on the country you’re visiting

• Stick to top Business Hotels- They have excellent business centers; health

clubs; and prestige that has influence with locals

3-40Source: McGovern, P. (2007, April) How to be a Local, Anywhere, Inc. Magazine

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Tips for Business Traveler’s

• Arrive Early- Take a day or two to walk around and get “in tune”

with the people, pace, and culture

• Bear Gifts- In Asia, Latin America, and Africa present your host

with a simple gift

• Practice Humility- Don’t boast about your company or accomplishments- Talk about your children and theirs and your

participation in philanthropic activities

Role of Expatriates

• See article excerpt on expatriates from the Journal of International Business Studies

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Video Case: Cirque du Soleil

• Why is Cirque du Soleil successful throughout the world? Why does the product transcend culture differences between countries?

• How do the cultural influences discussed in Figure 4-1 influence organizational behavior at Cirque du Soleil?

• Why is it important for Cirque du Soleil to be a good corporate citizen? How does ethnocentrism relate to fulfilling this role?

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Video Case: Disney Imagineering

• In what ways does Disney Imagineering truly live up to the title of a global company? Why are their parks and stories so universally accepted across cultures?

• For its remote locations, does Disney consider local cultural tastes too much? Should they “stick to their guns” more?

• What benefit does paying attention to local culture provide?

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