cm - managerial implications

8/7/2019 CM - Managerial Implications

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CROSS CULTURAL MANAGEMENT Managerial

Implications


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Mai penMai pen rai = Letrai = Let it go, take it easyit go, take it easy

Thai ValueThai Value


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Filipino ValuesFilipino Values

Pakikisama = smooth relationshipPakikisama = smooth relationship Hiya = shameHiya = shame


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AustralianAustralian ValuesValues

MateshipMateship = friendship= friendship, loyalty, loyalty Fair goFair go


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FrenchFrench ValuesValues

Quality of LifeQuality of Life AuthoritarianismAuthoritarianism PrivacyPrivacy


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Understand the impact of culture on management style

Describe national cultural values and provide examples

of how they affect management practice

Compare and contrast management practices on the

basis of national cultural values

AgendaAgenda


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Its R ll A Gl b l W rlIts R ll A Gl b l W rl

You can do business almost anywhere in the world.

Innovative ideas are creating a global economy.

Airplanes close the geographic gap.

Need to close the cultural gap in doing business.

IT closes the information gap in real-time .


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Cultur s r i r t b us :Cultur s r i r t b us :

- Activity: Doing or being

- Time: Past, present or future

- Space: Public or private

- Personal relationships

- Peoples relationship to the orl

- Ho people see themselves


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Strategic PredispositionsStrategic Predispositions

Ethnocentric predisposition

A nationalistic philosophy of management

whereby the values and interests of theparent company guide strategic decisions.

Philosophies of

Management

Ethnocentric

predisposition

E.g. Harley Davidson, Mickey & Snoopy, etc.


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Polycentric predisposition

A philosophy of management wherebystrategic decisions are tailored to suit thecultures of the countries where the MNCoperates.

Polycentric

predisposition


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Regiocentric predisposition

A philosophy of management whereby the

firm tries to blend its own interests withthose of its subsidiaries on a regional basis.

Regiocentric

predisposition


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Geocentric predisposition

A philosophy of management whereby thecompany tries to integrate a global systemsapproach to decision making.

Geocentric

predisposition


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PostPost--Merger IntegrationMerger Integration

Reasons for Merger & Alliances Failures

Inability to manage target business....25%Inability to manage target business....25%

Clash of management styles/ego....42%Clash of management styles/ego....42%

Inability to implement change in new organization...49%Inability to implement change in new organization...49%

Synergies were overestimated....53%Synergies were overestimated....53%

Incompatible cultures.58%Incompatible cultures.58%

Post Merger Integration Process

Develop plan for organizational change.Develop plan for organizational change. Design one vision and one set of core values.Design one vision and one set of core values.

Lead and educate the leaders and managers.Lead and educate the leaders and managers.

Create atmosphere of openness and transparency.Create atmosphere of openness and transparency.

Communicate, communicate, and communicate.Communicate, communicate, and communicate.


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Culture DimensionsCulture Dimensions

Individualism vs.Collectivism

Time Orientation

Power Distance(India High,Germany Low)

Religion

Masculinity-

Feminity

Relationshipto Nature

Uncertainty

Avoidance (India Low, Germany High)


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Universalistic vs. Particularistic:what is more important - rules or

relationships?

Individualism vs. Collectivism:do we function in a group or as an

individual?

Collectivism - In China, India, etc. the group is very important: family,

colleagues

Individualism - The United States & France are individualistic

countries.

Achievement vs. Ascription: do we have to prove ourselves to

receive status or is it given to us? Sending a young manager to run a

subsidiary in a traditional culture such as India will involve difficulty.


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Specific vs. Diffuse: How far do we get involved?In Denmark, people are much more prone to criticize subordinates

directly and openly without regarding their criticism as a personal

matter. In Russia, this may constitute an unacceptable loss of face.

Neutral vs. Emotional: Do we display our emotions?Multinational teams consisting of individuals from highly neutral and

highly affective. Cultures need careful management and considerable

inter-cultural understanding. Otherwise, the affective persons will view

the neutral persons as ice-cold, and the affective persons will be viewed

as out of control by the neutrals.

Sequential vs. Synchronic: Do we do things one at a time or several

things at once?


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Concrete Cultural Differences InConcrete Cultural Differences In TThehe BBusinessusiness orldorld

China

technical competence

time : punctuality

strong relationships

belong to a group

less animated : avoid displaysof affection

Russia

personal relationships

key rule : patience

different conceptions of

written contracts

exclusivity (exclusive

arrangements and negotiations)

France

social class & consequences

on the social interactions

accustomed to conflict highly centralized and rigid

structures

work / personal life balance

(the quality of life)

Arab countries

Time issue

Tomorrow if God wills

the strong vs. the weak

perceptions

public space

status and rank


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Tip on how to deal with the western cultureTip on how to deal with the western culture

The kinds of people who succeed in business in the United

States are goal-oriented, concerned with individual

achievement, and interested in the development of their own

careers.

They also tend to be pragmatic, assertive and relatively

egalitarian.

At the same time, they need constant feedback, evaluation,

praise and rewards.


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International AssignmentsInternational Assignments

Expatriate manager

A manager from the firms home nation, who is

on an overseas assignment


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Culture ShockCulture Shock

A three-phase cycle that most people experience

when sent to another culture


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MantraMantra To Solve The Jigsaw PuzzleTo Solve The Jigsaw Puzzle

Awareness of ones

own values and

culture

The ability to anticipate and

manage differences

Awareness of ones

own and other

languages

International skills,

behaviours and

attributes

Theoretical and

practical

understanding of

ethics

Key issues in

governance,

sustainability


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What Makes An Effective International ManagerWhat Makes An Effective International Manager

A bility to see the big picture

C ultural sensitivity

C uriosity

E thical management

L anguage ability - English and foreign languages

E mpathy and respect for others

R ecognition of knowledge and educational gaps

A daptability and flexibility

T olerance of ambiguity, uncertainty and complexity E xperience of having lived and worked abroad


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cm - managerial implications

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