cross culture ppt
TRANSCRIPT
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CHAPTER 5MANAGING ACROSS
CULTURES
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Strategic Predispositionso Ethnocentric Predisposition
A nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions.
Philosophies of Management
Ethnocentric predisposition
o Polycentric predisposition
A philosophy of management whereby strategic decisions are tailoredto suit the cultures of the countries where the MNC operates.
Polycentric predisposition
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Strategic Predispositionso Regiocentric Predisposition
A philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis.
Philosophies of Management
Ethnocentric predisposition
o Geocentric predisposition
A philosophy of managementwhereby the company tries to integrate a global systemsapproach to decision making.
Polycentric predisposition
Regiocentric predisposition
Geocentric predisposition
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Strategies for Managing Across Cultures
Globalization – The production and distribution of products and services of a
homogeneous type and quality on a worldwide basis
National responsiveness- The need to understand the different consumer tastes in
segmented regional markets and respond to different national standards and regulations imposed by autonomous governments and agencies
� Need to adapt tools and techniques for managing the local workforce
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Advertising– Germans
Want advertising that is factual and rational Typical German spot features the standard family of two
parents, two children, and grandmother
– French Avoid reasoning or logic Advertising is predominantly emotional, dramatic, and
symbolic Spots are viewed as cultural events—art for the sake of
money—and are reviewed as if they were literature or films
– British Value laughter above all else Typical broad, self-deprecating British commercial amuses
by mocking both the advertiser and consumer
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Cultural Differences and Similarities
Parochialism- The tendency to view the world through one’s eyes and
perspectives
Problem for managers from advanced economies who believe that their knowledge is sufficient for doing business in less developed countries
Simplification- The process of exhibiting the same orientation toward different
cultural groups
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Cultural Similarities and DifferencesWhat is the nature of people? Good(changeable/unchangeable)
A mixture of good and evil*Evil (changeable/unchangeable)
What is person’s relationship to nature? Dominant*In harmony with natureSubjugation
What is person’s relationship to others? Lineal (hierarchic)Collateral (collectivist)Individualist*
What is the modality of human activity? Doing*Being and becomingBeing
What is the temporal focus of activity? Future*PresentPast
What is the conception of space? Private*Mixed
* Indicates dominant U.S. orientation Public
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Similarities of US firms with foreign companies:
�As size of company increases, commitment decreases
�As structure of company becomes more employee focused, commitment increases
�A positive organizational climate increases employee commitment
Behavior Management NOT Culturally Bound!
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Human Resource Management Activities� Wages
� Compensation� Vacations
� Maternity Leave� Evaluative criteria
Differences of US Firms with Foreign Companies
Netherlands France Germany BritainRealityAnalysisLeadershipImagination
ImaginationAnalysisLeadershipReality
LeadershipAnalysisRealityImagination
ImaginationRealityAnalysisLeadership
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Cultural Clusters
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International Human Resource Management
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Doing Business in China Values and Principles above
money and expediency Emphasis on trust and mutual
connections Meetings start with small talk
and tea Host indicates when meetings
begin and end Slow in forming decisions, but
stick with decisions once made Reciprocity is important Negotiations are often carried
out through intermediaries to reduce the risk of losing face
Guanxi - Good connections that result in lower costs, increased business, greater prospecting opportunities, and facilitation of future transactions
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Doing Business in Russia Build personal relationships with partners Use local consultants Consider business ethics Be patient
Stress exclusivity Use face to face communication Keep financial information personal Research the company Stress mutual gain, focus on a win-win relationship Clarify terminology
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Doing Business in India Punctuality is important No personal questions Titles are important No public displays of affection When eating or accepting things,
use the right hand The namaste gesture can be
used to greet people Bargaining is common Tolerant of outsiders Wife and children eat at separate
table
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Doing Business in France Use a quick hand shake with some pressure in the
grip Punctuality is extremely important Precise and logical Great importance is placed on neatness
and taste; social class and status important In negotiations, the French try to out what all of the
other side’s aims and demands are but they reveal their own hand only late in the negotiations
Quality of work life and enjoyment of life important; less motivated by compensation
Suspicion of early friendliness, dislike first names, taking off jackets or personal questions
Work in small independent businesses, pride on craftsmanship
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Doing Business in Arab Countries Status and rank important
Fatalistic - all occurs according to Allah’s will
Do not take credit for joint efforts Decisions based on emotion Efforts to sidestep red tape can be regarded
as disrespect for legal and government institutions
Important decisions made in person No feelings of superiority Patience and connections critical to
business transactions