ghrm ppt

Cross-Cultural ManagementCross-Cultural Management1

Chapter 2Managing Across Cultures

Chapter 2(1) _ Global Culture…2Chapter 2(2) _ Multicultural Teams…11Chapter 2(3) _ Motivation in a Global

Context…36Chapter 2(4) _ Decision Making…51Chapter 2(5) _ Leadership…68Chapter 2(6) _ Global HRM…92


Chapter 2(1) _Global Culture


CULTURAL MESSAGES COME FROM MULTIPLE SOURCES– Domestic– International– Global

although most common challenges are addressed by nations, a global civil society is emerging


PEOPLE LOOK AT ALTERNATIVE ENTITIES FOR CULTURAL DIRECTION

• Affiliative groups e.g., ethnic groups• Nongovernmental organizations, e.g., the

Women’s League for Peace and Freedom• Religious groups• Regional associations, e.g., Economic Union• Business organizations


Multiple messages and sources create CONFUSION AND

UNCERTAINTY• Leading to new questions national cultures are

less well able to answer– but

• In a global society, we don’t have a sense of the appropriate rules by which all can live


TRANSITION TIME?

• Are we at a point where nationality is less important to culture than in the past? All of

Us


WE SEE THAT SOME VALUES ARE COVERGING, OTHERS ARE

NOT

• The Planet Project• The Roper Poll of Values• The World Values Survey• The GLOBE Project


GLOBE RESPONSES ON GENDER EGALITARIANISM SHOWS

COVERGENCE ON “SHOULD BE”

1

2

3

4

5

6

7

Latin America

Anglo

Nordic

Germanic

Latin Europe

East Europe

Confucian

S Asia

Arab

Indigenous AfricaAs Is

Shd Be


GLOBE RESPONSES ON HUMANEORIENTATION ALSO SHOWS

COVERGENCE ON “SHOULD BE”

1

2

3

4

5

6

7

Latin America

Anglo

Nordic

Germanic

Latin Europe

East Europe

Confucian

S Asia

Arab

Indigenous Africa

As Is

Shd Be


QUESTIONS OF GLOBAL AND LOCAL CULTURES

• Will global culture replace or exist with local cultures?

• Will global culture bring positive or negative outcomes?


Chapter 2(2)- Multicultural Teams


Two or more interacting individuals who come together to achieve some objectives.

Groups can be either formal or informal, and further subclassified into command, task, interest, or friendship categories.

GroupGroup


A specific type of group where an emphasis is put on some level of member interdependence and on achievement of common goals

TeamTeam

•All teams are groups •Some groups are just people assembled together•Teams have task interdependence whereas some groups do not (e.g., group of employees enjoying lunch together)


Reasons for Team PopularityReasons for Team Popularity

• OutperformOutperform individuals on tasks requiring multiple skills, judgment, and experience

• Better utilizationutilization of employee talents

• More flexibleflexible and responsiveresponsive to changing events

• Facilitate employee participationparticipation in operating decisions

• Effective in democratizingdemocratizing the organization and increasing employee involvement and motivationmotivation


Basic Group ConceptsBasic Group Concepts

Acceptable Standards Acceptable Standards

of Behavior Sharedof Behavior Shared

by the Members by the Members

of a Groupof a Group

Expected Patterns ofExpected Patterns of

Behavior Based on aBehavior Based on a

Given Position in aGiven Position in a

Social UnitSocial Unit

Group RolesGroup Roles Group NormsGroup Norms


CohesivenessCohesiveness

Social-Oriented Cohesiveness: The degree to which members of the group are attracted to each other and motivated to stay in the group

Task-Oriented Cohesiveness: The degree to which group members work together, cooperate and coordinate their activity in order to achieve group goals


Team Effectiveness ModelTeam Effectiveness Model

•Task characteristics

•Team size

•Team composition

Team DesignTeam Design

• AchieveAchieve organizational organizational goals goals

• Satisfy memberSatisfy member needs needs

• Maintain teamMaintain team survival survival

TeamTeamEffectivenessEffectiveness

•Team developmentTeam development•Team normsTeam norms•Team rolesTeam roles•Team cohesivenessTeam cohesiveness

Team ProcessesTeam Processes

Organizational andOrganizational andTeam EnvironmentTeam Environment

• Reward systemsReward systems

• CommunicationCommunication systems systems

• Physical spacePhysical space

• OrganizationalOrganizational environment environment

• OrganizationalOrganizational structure structure

• OrganizationalOrganizational leadership leadership


Groups Across CulturesGroups Across Cultures

Two cultural dimensions are especially relevant:

• Individualism-Collectivism

• Power Distance

• Also Uncertainty Avoidance; e.g., potential for Role Conflict (esp. in multi-functional teams)


The Challenge in The Challenge in Shaping Team PlayersShaping Team Players

Greatest where...Greatest where...–The national culture

is highly individualisticindividualistic

–Introduced into organizations that historicallyhistorically value individual achievement

Less demanding...Less demanding...–Where employees have strong collectivistcollectivist values, such as Japan or Mexico

–In new organizations that use teams as their initial forminitial form for structuring work


Cross-Cultural DifferencesCross-Cultural Differences

Cross–cultural differences in intergroup processes– Collectivistic cultures

• Expect little expression of conflict; favor suppressing conflict

• Prefer to personalize interaction; focus on people, despite what group they represent

• Group membership is an important part of identity and interaction


Power Distance and SDWTsPower Distance and SDWTs

Nicholls et al. (1999) study of SDWT in Mexico:• Why are teams failing in a highly collectivist culture

such as Mexico?• Major challenges in implementing SDWTs• Workers expect to exercise little control over work

and not to be involved in decision making• Expect clear instructions from the top and are not

highly motivated by opportunity to initiate and take larger responsibility

• Can SDWT work in high-PD cultures? How?


Interpersonal RelationshipsInterpersonal Relationships

• Individualists tend to have more friends, but with lesser intensity level;

• Collectivists tend to have less friends, but with higher intensity level.

• Individualists are less suspicious towards out-group members and easier to make initial contact;

• Collectivists have stronger bonds with in-group members


Differential Group ProcessesDifferential Group Processes

• Conformity: who is more conforming?

• Formal/regulated participation vs. spontaneous

• Social loafing versus social striving

• Preferences for group vs. individual rewards

• Equality (‘you deserve what you get’) vs. Equity (‘you get what you deserve’) vs. Need based decisions (‘to all according to their needs’)


ConformityConformity

• Cross–cultural variations in tendency to accept group pressure for conformity to group norms– Japanese encourage high conformity to

norms of a group that has the person's primary loyalty

– German students (in some experimental research) showed a lower tendency to conform

– Moderate conformity among people in Hong Kong, Brazil, Lebanon, and the United States


Teams’ Cultural CompositionTeams’ Cultural Composition

•Cultural Diversity: the number of different cultures represented in the group;

•Cultural Norms: the orientations of the specific cultures represented in the group toward group dynamics and processes; and

•Relative Cultural Distance: the extent to which group members are culturally different from each other


Surface and Deep DiversitySurface and Deep Diversity

In multicultural teams, diversity can be in the form of:

• Surface-level (black-American; Caucasian-American; French and Vietnamese) and/or

• Deep-level (Irish and English; Singaporean and Chinese; N. and S. Africans)


Dynamics of Team DiversityDynamics of Team Diversity

Diversity•Surface•Deep

Affective Reactions•Cohesion•Satisfaction•Commitment

Team Behaviours•Communication•Conflict•Cooperation

Long-termConseq.•Performance•Promotion•Turnover

GroupDynamics

Social Context

Org. Context


Jackson, Joshi & Erhardt (2003)Jackson, Joshi & Erhardt (2003)

• Surface-level diversity has more immediate impact and is influential in early-stage/newly formed teams while deep-level becomes more important over time and its effects last longer.

• Diversity, in general, and cultural/ethnic diversity in particular, have mixed effects on team processes and performance;

• Less effect on simpler, motor-based tasks; more effect on complex, interdependent teamwork


Earley & Mosakowski (2000)Earley & Mosakowski (2000)

• Studied effects of heterogeneity in transnational teams using experimental and field settings

• Reasoned that the effects of national heterogeneity on team performance is non-linear;

• Found that in the early stages, homogenous teams (those with only one major national group identity) outperformed both moderately heterogeneous (groups with two different sub-group identities) and highly heterogeneous (no clear sub-group identities exist) teams.


Earley & Mosakowski (2000)Earley & Mosakowski (2000)• In the longer term, high-heterogeneous teams’

performance increased as they managed to create a hybrid-culture;

• Such hybrid culture was not created in moderately heterogeneous teams, whose performance was lower than both high and low heterogeneity teams.

Team processes mediated the effects of heterogeneity on team performance, such that:

• In homogenous groups, members perceived many similarities between themselves (remember SIT?); trust, shared mental models and open communication developed early on in the team’s life


Earley & Mosakowski (2000)Earley & Mosakowski (2000)

• In moderately heterogeneous teams, a dynamic of ‘us vs. them’ prevailed, with the two sub-groups sticking to themselves in times of conflict, resulting in little cross sub-group cooperation;

• In highly heterogeneous teams, as time passed, members go to know each other better and since there were no dominant sub-groups, they were free to form a ‘hybrid culture’-unique to their team and overarching each members’ national identity.

• Implications for joint ventures and projects where two cultures (national or organizational) get together to try to create a cooperative structure


Diversity and TeamsDiversity and Teams

• Overall, diversity causes process losses• Can be beneficial if team overcomes these

losses over time• Depends on organizational culture and top-

management support• Highly heterogeneous and highly homogenous

teams work better than mid-range ones• Fault lines in teams lead to rivalry coalitions =>

decrease effectiveness


Conditions for EffectivenessConditions for Effectiveness

More Effective Less Effective

Task Innovative Routine

Stage Divergence (earlier) Convergence (later)

Conditions Differences Recognized Differences Ignore

Task-based member selection

Culture-base members selection

Pluralism Ethnocentrism

Equal Power Cultural Dominance

Superordinate goals Individual goals

External feedback No feedback/autonomy


Some ImplicationsSome Implications

• Investment in diverse teams is more sensible for the longer-term, for complex tasks and when team members are (relatively) pluralistic

• More careful task design is needed

• Positive feedback, early on

• Preparation and training, through conceptual and experiential approaches is recommended

• Strive to create a third culture through superordinate goals and neutralization of differences


Diversity: Beyond the ObviousDiversity: Beyond the Obvious

• Seemingly culturally similar team members may have the hardest time to get along: need to take into account other variables besides culture (history, class)

• Idiosyncratic cultural variables, e.g., intellectual style (Russians vs. N. Americans)

• Prior experience with different cultures plays important role (usually for the better)

• Virtual Teams: added complexity


Chapter 2(3)-Motivation in a Global Context


The Basic Motivation Process

Unsatisfiedneed

Drive toward goal tosatisfy need

Attainment of goal(need satisfaction)

Introduction to MotivationIntroduction to Motivation

Motivation

Psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives


Introduction to MotivationIntroduction to Motivation

• Need Theories• Cognitive theories

– Expectancy theory: describes internal processes of choice among different behaviors

– Equity theory: describes how and why people react when they feel unfairly treated

– Goal setting theory: focuses on how to set goals for people to reach

• Behavioral theory– Behavior modification: focuses on observable

behavior, not internal psychological processes


Basic AssumptionsBasic Assumptions

• The Universalist Assumption– All people are motivated to pursue goals they

value– Specific content of the goals that are pursued

will be influenced by culture– Movement toward market economies may make

motivation more similar in different countries


Motivation TheoriesMotivation TheoriesAre Culture BoundAre Culture Bound

Need forNeed forAchievementAchievement

Hierarchy Hierarchy of Needsof Needs

Goal-SettingGoal-SettingTheoryTheory


Attitudes and PersonalityAttitudes and Personality

• Personality characteristics

– People in individualistic cultures (United States) have stronger need for autonomy than people in group–oriented cultures (Japan)

– People in cultures that emphasize avoiding uncertainty (Belgium, Peru) have stronger need for security than people in cultures that are less concerned about avoiding uncertainty (Singapore, Ireland)


Need Theories of MotivationNeed Theories of Motivation

• Concept of needs holds across cultures

• People from different cultures may express and satisfy needs differently

• Importance of needs in Maslow's need hierarchy

– United States: self–actualization

– Latin America: security, affiliation

– France and Germany: need for security

– New Zealand: belongingness and love

• McClelland: needs for affiliation, power and achievement


International Aspects ofInternational Aspects ofJob DesignJob Design

• Herzberg: Two Factor Theory• Individual and group–based job design

– U.S. managers have mostly used individual approaches to job design

– Recent shifts to group–based approaches– Managers in other industrialized countries have

mainly emphasized group–based job design


Job Design (Cont.)Job Design (Cont.)

• Changing specific job characteristics

– Belgium, Mexico, Greece, Thailand: not likely to accept efforts to increase autonomy and task identity

– French managers particularly dislike recommendations to decentralize decision authority. Subordinates do not expect them to do so

– Quality circles: big success in Japan, but only partial in the US


Cognitive and Behavioral Theories Cognitive and Behavioral Theories of Motivationof Motivation

• Two assumptions that could restrict use of these theories outside the U.S.– Individual controls decisions about future

actions– Manager can deliberately shape the

behavior of people


Cognitive and Behavioral Theories Cognitive and Behavioral Theories of Motivationof Motivation

• Both assumptions reflect U.S. values of free will, individualism, individual control

• Cultural contrasts– Muslim managers believe something happens

mainly because God wills it to happen

– Hong Kong Chinese believe luck plays a role in all events


Cognitive and Behavioral TheoriesCognitive and Behavioral Theories

• Expectancy theory's validity in other cultures– Japanese female life insurance sales

representatives responded to commission system as expected

– Russian textile workers• Linked valued extrinsic rewards to worker

performance• Productivity increased as the theory predicts

• Generally, expectancy theory best explains motivation of people in cultures that emphasize internal attribution


Cognitive and Behavioral Theories (Cont.)Cognitive and Behavioral Theories (Cont.)

• Equity theory: complex cross–cultural effects

– Reward allocation decisions followed equity theory premises in U.S., Russian, and Chinese samples

– Other studies

• Chinese emphasized seniority in their reward decisions more than Americans.

• Eastern European transition economies: endorsed positive inequity more than American students


Culture & MotivationCulture & Motivation

• Research on goal setting theory in several countries

• Results consistent with U.S. work that formulated the theory

• Some cultural differences– U.S. students not affected by how goals were

set– Israeli students performed better when goals

were set participatively; consistent with culture of cooperation


Idiosyncratic FactorsIdiosyncratic Factors

Beyond cultures’ variance along the major cultural value dimensions, there are specific aspects anchored in nation’s history and expressed through its symbols and language.

Ignoring such factors may render motivational techniques ineffective or even result in de-motivation; e.g.:

Slay the Dragon!!


Chap 2(4)- Decision Making across Cultures


Decision MakingDecision Making

Process of choosing a course of action among alternatives


Various FactorsVarious Factors

* Time Orientation• Deciding for the short/long term?• How long to make a decision?• Polichronic or monochronic style?

* Who decides: Groups vs. Individuals

* Voting vs. Consensus based decisions

* Process: Participative vs. Autocratic


Value of RationalityValue of Rationality

Strong preference for rational D.M. vs.

Occasional or low value on rationality;

In some cultures more emphasis on:• Emotions• Religion• Ideology


Rational Decision MakingRational Decision Making

The Rational Approach assumes that

– Managers follow a systematic, step-by-step process.

– Organization is economically based and is managed by decision makers who are entirely objective and have complete information.

It assumes that rational choices are:

• Consistent

• Value-maximizing

• Within specified constraints


The Six-Step Rational The Six-Step Rational Decision-Making ModelDecision-Making Model

1. Define the problem2. Identify decision criteria3. Weight the criteria4. Generate alternatives5. Rate each alternative on each criterion6. Compute the optimal decision


Cultural Contingencies in Decision MakingCultural Contingencies in Decision Making

Step

1. Problem Recognition

Problem solving; change Situation acceptance

2. Information Search Gathering facts Gathering ideas and possibilities

3. Construction of Alternatives

New, future oriented based on change

Past/present/future based on stability

4. Choice Individual level; delegation of responsibility; fast

Group level; by senior management; slowly

5. Implementation Slow; top-down Fast; broad participation


Case Study: The Road to Hell (p. 512)Case Study: The Road to Hell (p. 512)

• What mistakes did John Baker Made? Why did he not realize his mistake when it occurred?

• What would you recommend that Baker do now?

• What do you learn from this case about human resource management across different nations?


Stages of Moral DevelopmentStages of Moral Development

LevelLevelStage Stage

DescriptionDescription

PrincipledPrincipled

ConventionalConventional

Pre-conventionalPre-conventional1. Sticking to rules to avoid physical punishment

2. Following rules only when it’s in your immediate interest

3. Living up to what is expected by people close to you

4. Maintaining conventional order by fulfilling obligations to which you have agreed

6. Following self-chosen ethical principles, even if they violate the law

5. Valuing rights of others; upholding non-relative values and rights regardless of the majority’s opinion

Adapted from L. Kohlberg, “Moral Stages and Moralization: The Cognitive-Developmental approach,” pages 34-55 inMoral Develop and Behavior: Theory, Research, and Social Issues, ed. T. Lickona (New York: Holt, Rinehart & Winston, 1976).


Three Different Criteria in Making Three Different Criteria in Making Ethical ChoicesEthical Choices

• Utilitarian CriterionUtilitarian Criterion - made solely on basis of outcomes or consequences

• Focus on RightsFocus on Rights - made consistently with fundamental liberties and privileges

• Focus on JusticeFocus on Justice - requires imposing and enforcing rules fairly and impartially for equitable distribution of benefits and costs


Ethical Aspects of DecisionsEthical Aspects of Decisions

• Multinational firms face many ethical questions and issues

• Operate in many countries; subject to the laws of those countries

• Legal and social context of globally oriented organizations can present their managers with ethical dilemmas



Culturalrelativism

Ethicalrealism

Multinationalorganization

Two ethical views



Ethical views:• Cultural relativism

• Cultural relativism refers to differences in ethical values among different cultures

• Premise: right and wrong should be decided by each society's predominant ethical values

• Cultural relativists base their argument on three points



Cultural relativism (cont.)• Three points

–Moral judgments are statements of feelings and opinions; neither wrong nor right

–Moral judgments are based on local ethical systems; cannot judge right or wrong across cultures

–Prudent approach: do not claim an action is either right or wrong



Cultural relativism (cont.)

• Managers should behave according to local ethical systems, even if behavior violates home country ethical system

• Many philosophers reject cultural relativism's argument that codes of ethics cannot cross national boundaries

• Agree that countries vary in defining right and wrong



– Ethical realism• Morality does not apply to international

transactions• Because no power rules over international

events, people will not behave morally• Because others will not behave morally,

one is not morally required to behave ethically



• International ethical dilemmas– Goods made in a country with no child labor

laws– Goods made in a country with child labor laws

that are not enforced– Changing the behavior of local people– Making small payments that are allowed under

the company’s national law


Chapter 2(5)-Leadership


DefinitionsDefinitions

There are almost as many definitions of leadership as there are theories…some of the more common ones are:

• Ability to influence a group toward the achievement of goals.

• The process whereby one individual influences other group members towards the attainment of defined group or organisational goals.

• The process of creating vision for others and having the power to translate it into a reality and sustain it.


Foundation for LeadershipFoundation for Leadership

Leadership Behaviors and Styles

Participative Leadership

Participative Leadership

Authoritarian Leadership

Authoritarian Leadership

Paternalistic Leadership

Paternalistic Leadership

The use of work-centered behavior designed to ensure task accomplishment.

The use of work-centered behavior coupled with a protective employee centered concern.The use of both work- or task-centered and people centered approaches to leading subordinates.


Leader–Subordinate InteractionsLeader–Subordinate Interactions

Authoritarian Leader

Subordinate Subordinate Subordinate

One-way downward flow of information and influence from authoritarian leader to subordinates.



Paternalistic Leader


Continual interaction and exchange of information and influence between leader and subordinates.



Participative Leader


Continual interaction and exchange of information and influence between leader and subordinates.


Contingency TheoriesContingency Theories

• Leaders use various leadership Leaders use various leadership styles/behaviours;styles/behaviours;

• Quality of leadership experience depends on Quality of leadership experience depends on several situational factors, including followers several situational factors, including followers and task type.and task type.

• Path-Goal ModelPath-Goal Model - Leader assists followers in attaining goals and ensures goals are compatible with overall objectives


Path-Goal TheoryPath-Goal Theory

A theory of leadership suggesting that subordinates will be motivated by a leader only to the extent they perceive this individual as helping them to attain valued goals.



Four basic leadership styles:• InstrumentalInstrumental (directive): An approach focused on

providing specific guidance and establishing work schedules and rules.

• Supportive:Supportive: A style focused on establishing good relations with subordinates and satisfying their needs.

• Participative:Participative: A pattern in which the leader consults with subordinates, permitting them to participate in decisions.

• Achievement Oriented:Achievement Oriented: An approach in which the leader sets challenging goals and seeks improvements in performance.



Environmental contingency factors• Task structure• Formal authority system• Work group

Leader behavior• Directive• Supportive• Participative• Achievement oriented

Outcomes• Performance• Satisfaction

Subordinate contingency factors• Locus of control• Experience• Perceived ability


LeadershipLeadership

Core values of country’s culture often define type of leadership behavior that is acceptable

– In high PD, an emphasis on hierarchical relationships—directive approaches accepted; Hong Kong, Latin American countries; Russia

– In low PD, hierarchical relationships are not valued —supportive (or participative) approaches accepted; Austria, Scandinavia, Israel


LeadershipLeadershipIndividualism-Collectivism

• Leader as a paternal figure vs. leader as an expert

• Degree to which intervention of leader in follower’s private lives is expected and accepted

Masculine/Feminine

• Acceptance of women as leaders

• Accepted style for leaders

Long-Term-Orientation

• Elect leaders for four years…or forty?

Leader’s style: first among equals (China) or class of its own (Arab Countries)


GLOBE ProjectGLOBE Project• Multi-country study and evaluation of cultural

attributes and leadership behavior• Are transformational characteristics of

leadership universally endorsed?• 170 country co-investigators• 65 different cultures• 17,500 middle managers

• 800 organizations


GLOBE ProjectGLOBE Project• Which traits are universally viewed as

impediments to leadership effectiveness?• Based on beliefs that

–Certain attributes that distinguish one culture from others can be used to predict the most suitable, effective and acceptable organizational and leader practices within that culture

–Societal culture has direct impact on organizational culture

–Leader acceptance stems from tying leader attributes and behaviors to subordinate norms


Variable Highest Medium LowestRanking Ranking Ranking

GLOBE Cultural Variable Results

Assertiveness Spain, U.S. Egypt, Ireland Sweden, New Zealand

Future orientation Denmark, CanadaSlovenia, Egypt Russia, Argentina

Gender differentiation South Korea, Italy, Brazil Sweden Denmark Egypt

Uncertainty avoidance Austria, Denmark Israel, U.S. Russia, Hungary

Power distance Russia, Spain England, France Demark, Netherlands

Collectivism/Societal Denmark, Hong Kong, U.S. Greece, HungarySingapore

In-group collectivism Egypt, China England, France Denmark, Netherlands

Performance orientation U.S., Taiwan Sweden, Israel Russia, Argentina

Humane orientation Indonesia, Egypt Hong Kong, Germany, Spain Sweden


Universal Leadership AttributesUniversal Leadership Attributes

Positive• Trustworthy• Just• Honest• Charisma • Inspiration & Vision• Team-Orientation• Excellence-Oriented• Decisive• Intelligent

Negative• Loner• Non-Cooperative• Ruthless• Non-explicit• Irritable• Dictatorial


Leadership and ManagementLeadership and Management

Need to bear in mind that leadership style is very much situation dependent: for example, in some situations (e.g., emergency) and in some organizational cultures, directive style will be accepted even in a country like the US;

Participation is more likely if the basis of power is more achievement based (instrumental) than if it is ascribed (personal) and

Degree of participation in decision making and leadership by subordinates vary cross-nationally


Leadership in theLeadership in theInternational ContextInternational Context

Attitudes of European Managers Toward Leadership Practices

Capacity for Leadership and Initiative


European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.

Does the leader believe that employees prefer to be directed and have little

ambition? (Theory X) OR Does the leader believe that characteristics such as initiative can be acquired by most people regardless of their inborn traits and abilities? (Theory Y)


Leadership in the Leadership in the International ContextInternational Context




Sharing Informationand Objectives


Does the leader believe that detailed, complete instructions should be given to subordinates and that subordinates need only this information to do their jobs?

ORDoes the leader believe that general directions are sufficient and that subordinates can use their initiative in working out the details?

Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.








ParticipationParticipation

Does the leader support participative leadership practices?









ParticipationParticipation

Internal ControlInternal Control

Does the leader believe that the most effective way to control employees is through rewards and punishment?

ORDoes the leader believe that employees respond best to internally generated control?



Japanese vs. U.S. Japanese vs. U.S. Leadership StylesLeadership Styles

Dimension Japan US

Employment Often for life Often short-term

Evaluation Slow, takes many years Fast: those not promoted often leave

Career Paths Very general; based on rotations

v. specialised; people stay in one area

Dec. Making Group based By individual managers

Control Mech. Implicit & informal; reliance on trust and goodwill

Explicit; based on knowing the control mechanisms

Responsibility Shared collectively Assigned individually

Concern for employees

Broad and covers the whole life

limited to work-life


Differences in Middle Eastern Differences in Middle Eastern

and Western Managementand Western Management


Leadership-Other IssuesLeadership-Other Issues

• Emphasis on Emotional Intelligence is especially important for leading cross-culturally

• Idiosyncratic effects & paradoxes:

– Moderately masculine Muslim and Hindu nations with traditional views on women…but,

– Israel, India, Pakistan and other exceptions

• Charismatic leadership is not universally accepted


Chapter 2(6)-GLOBAL HUMAN RESOURCES


HR Challenges of International HR Challenges of International BusinessBusiness

• Deployment

• Knowledge and innovation dissemination

• Identifying and developing talent globally

Researchers asked “What are the key global pressures affecting human resource management practices in your firm currently and for the projected future?” Responses were:


Global StaffingGlobal Staffing

Pressures Pressures

– Candidate selections– Assignment terms– Relocation– Immigration – Culture and language– Compensation– Tax administration– Handling spouse and dependent matters


Economic DifferencesEconomic Differences

Translate into differences in HR practices:• Espousing ideals of free enterprise • Wage costs vary • Other labor costs vary: severance pay; holidays


International Labor RelationsInternational Labor Relations

Union membership varies widely worldwide

14%

29%

44%39%

80%24%

23%39%


International StaffingInternational Staffing

Multinational corporations (MNC’s) use several types of international managers:– Locals– Expatriates

• Home-country nationals• Third-country nationals


Sources of Human Sources of Human ResourcesResources

Home Country Nationals

– Expatriate managers who are citizens of the country where the MNC is headquartered• Expatriates

– Those who live and work away from their home country– Citizens of the country where the MNC is headquartered

• Expatriates are useful for:– starting up operations– providing technical expertise– helping the MNC maintain financial control over the operation

• Expatriates almost always were men– Situation is changing

• Expatriates typically used in top management positions


Sources of Human ResourcesSources of Human Resources

• Host-Country Nationals– Local managers who are hired by the MNC– Used in middle- and lower-level

management positions– Nativization

• Requirement of host-country government that mandates employment of host-country nationals


Sources of Human Sources of Human ResourcesResources

• Third-Country Nationals (TCNs)– Citizens of countries other than the one in

which the MNC is headquartered or the one in which the managers are assigned to work by the MNC

– Found in MNCs that have progressed through the initial and middle stages of internationalization


– Advantages of using TCNs• Require less compensation• Good working knowledge of the region• Given home office experience, often can

achieve objectives better than other types of managers

• Offer different perspectives

Sources of Human ResourcesSources of Human Resources


Failure Rates of International AssignmentsFailure Rates of International Assignments

International assignment failure can cost hundreds of thousands of euros

0 20 40 60

US

Japan

Europe

% Failure


Why InternationalWhy InternationalAssignments FailAssignments Fail

• Personality• Person’s intentions• Family pressures• Lack of cultural skills• Other non-work conditions like living and

housing conditions, and health care


Improving Failure Rates/SolutionsImproving Failure Rates/Solutions

• Provide realistic previews• Have a careful screening process• Improve orientation• Provide good benefits• Test employees fairly• Shorten assignment length


Important Predictors Important Predictors of Successof Success

• Family situation tops the list• Flexibility/adaptability screening was high on

results• Use paper and pencil tests like the Overseas

Assignment Inventory• Previewing what changes an international

assignee can expect


SelectingSelectingInternational ManagersInternational Managers

• Test for traits that predict success in adapting to new environments

• Job knowledge and motivation• Relational skills• Flexibility and adaptability• Extra-cultural openness• Family situation

Predictive trait breakdown


Traits Distinguishing Successful Traits Distinguishing Successful International ExecutivesInternational Executives

SCALESensitive to Cultural Differences

Business KnowledgeCourage to Take a StandBrings Out the Best in PeopleActs with IntegrityIs Insightful

Is Committed to Success

Takes RisksUses FeedbackIs Culturally Adventurous

Seeks Opportunities to LearnIs Open to CriticismSeeks FeedbackIs Flexible

*Reverse scored

SAMPLE ITEMWhen working with people from other cultures, workshard to understand their perspectives.Has a solid understanding of our products and services.Is willing to take a stand on issues.Has a special talent for dealing with people.Can be depended on to tell the truth regardless of circumstances.Is good at identifying the most important part of a complex problem or issue.Clearly demonstrates commitment to seeing theorganization succeed.Takes personal as well as business risks.Has changed as a result of feedback.Enjoys the challenge of working in countries other thanhis/her own.Takes advantage of opportunities to do new things.Appears brittle—as if criticism might cause him/her to break.*Pursues feedback even when others are reluctant to give in.Doesn’t get so invested in things that she/he cannot change when something doesn’t work.


Performance Appraisal of Performance Appraisal of International MangersInternational Mangers

Five suggestions for improving the expatriate appraisal process:

1. Stipulate the assignment’s difficulty level. For example, being an expatriate manager in China is generally considered more difficult than working in

England, and the appraisal should take such difficulty level differences into account.

2. Weight the evaluation more toward the on-site manager’s appraisal than toward the home-site manager’s.



• 3. If however (as is usually the case), the home-site manager does the actual

• written appraisal, have him or her use a former expatriate from the same

• overseas location to provide background advice during the appraisal process.

• 4. Modify the normal performance criteria used for that particular position to

• fit the overseas position and characteristics of that particular locale.

• 5. Attempt to give the expatriate manager credit for his or her insights into

• the functioning of the operation and specifically the interdependencies

• of the domestic and foreign operations.


The New Workplace:The New Workplace:Sending Women AbroadSending Women Abroad

• In the US, only 6% filled overseas positions compared to 49% domestic

• One survey found inaccurate stereotypes:– Not as internationally mobile – Might have a tougher time building teams



Five suggestions for improving the expatriate appraisal process:

1. Stipulate the assignment’s difficulty level. For example, being an expatriate manager in China is generally considered more difficult than working in England, and the appraisal should take such difficulty-level differences into account.

2. Weight the evaluation more toward the on-site manager’s

appraisal than toward the home-site manager’s distant perceptions of the employee’s performance.



• 3. If however (as is usually the case), the home-site manager does the actual

• written appraisal, have him or her use a former expatriate from the same

• overseas location to provide background advice during the appraisal process.

• 4. Modify the normal performance criteria used for that particular position to

• fit the overseas position and characteristics of that particular locale.

• 5. Attempt to give the expatriate manager credit for his or her insights into

• the functioning of the operation and specifically the interdependencies

• of the domestic and foreign operations.


Culture Shock!Culture Shock!

• Disorientation upon entering a new cultural environment

• Normal use of own cultural filter fails– interpretation of perceptions– communication of intentions

• All people experience culture shock... Past experience and training can shorten its length


Culture Shock:Culture Shock:

Responses– Gone native (assimilation):

accepts the new... rejects own

– Participator (integration): adapts to the new ... but retains own

– Tourist (separation): avoids the new...

– Outcast (marginalization): won’t/can’t adapt... rejects own...


PhasesPhases

• Honeymoon– euphoria, unrealistically positive attitudes

towards host country, stay in hotel shields from mundane difficulties, house hunting/school hunting exciting, sightseeing!!

• Irritation and Hostility (the crisis stage)– problems adjusting at work, local clocks don't

fit yours, difficulties getting the routine daily tasks done, everything stinks; some never recover


SymptomsSymptoms

– homesickness– boredom– withdrawal (reading is an obsession, focus

on home nationals, avoid host nationals)– excessive sleep need, compulsive eating

and drinking – irritability– exaggerated cleanliness


Symptoms (cont.)Symptoms (cont.)

– marital stress, family tension, conflict

– stereotyping host nationals

– hostility towards host nationals

– loss of ability to work effectively

– fits of weeping

– psychosomatic illnesses


PhasesPhases

• Gradual Adjustment

– can manage, cope with situation now

• Biculturalism/Coping

– ability to function in both cultures, acceptance of local customs and values for what they are (not going native), possible to get by, positive and growth gaining experience


Nature of Culture ShockNature of Culture Shock

• Not a jolt, rather a series of cumulative experiences

• Cultural differences become focus of attention

• Foreign ways are quaint no more... they seem inferior to your own


What Special Training Do Overseas What Special Training Do Overseas

Candidates Need?Candidates Need?

• Impact of cultural differences

• Understanding attitude formation

• Factual knowledge about target country

• Language and adjustment/adaptability skills


Four Step Approach to Training Overseas Four Step Approach to Training Overseas CandidatesCandidates

Level 1 training focuses on the impact of cultural differences, and on raising trainees’ awareness of such differences and their impact on business outcomes.

Level 2 training aims at getting participants to understand how attitudes (both negative and positive) are formed and how they influence behavior.

Level 3 training provides factual knowledge about the target country.

Level 4 training provides skill building in areas like language and adjustment and adaptation skills.


Cross-Cultural TrainingCross-Cultural Training

Information Giving

Affective Approach

Immersion Approach

Geographic briefingsCultural BriefingsFilms/BooksInterpretersLanguage: “Survival”

Culture assimilator trainingRole-playingCasesStress reduction trainingCultural BriefingsLanguage: “Moderate”

AssessmentField experienceSimulationsSensitivity trainingLanguage: “intensive”

Training Time Training Rigor

Length of Assignment

YearsMonthsWeeks

High

Low

Months

Weeks

Day(s)


Repatriation of ExpatriatesRepatriation of Expatriates• Repatriation

– Return to one’s home country from an overseas management assignment

• Reasons for returning– Formally agreed-on tour of duty is over– Expats want their children educated in the home

country– Unhappiness with foreign assignment– Failure to perform well

• Readjustment problems– Permanent position upon return constitutes a

demotion– Lack opportunity to use skills learned abroad upon

return– Salary and benefits may decrease upon return


Repatriation ProblemsRepatriation Problems

• Leaving the firm prematurely• Mediocre or makeshift jobs• Finding former colleagues

promoted• Reverse culture shock


RepatriationRepatriation

Several steps can be taken to avoid repatriation problems:

Write repatriation agreementsShorten Assignment periodsAssign a sponsorProvide career counselingKeep communications openOffer financial supportDevelop reorientation programsBuild in return trips

ghrm ppt

Documents

provide background advice

international mangersfive suggestions

actual written appraisal

assignments difficulty level

expatriate manager credit

moderately heterogeneous teams

local ethical systems

european managers tend