Developing Global Manners Chapter Three

3-1a Chapter Three Outline Developing a Global Mind-Set A model of Societal and Organizational Cultures Cultural relativism versus Cultural Imperialism: Balancing Ethical Extremes Becoming a Global Manager How Well Do U.S. Management Theories Apply in Other Countries? Becoming Cross-Culturally Competent Individualism versus Collectivism High-Context and Low-Context Cultures A Contingency Model for Cross-Cultural Leadership

3-1b Preparing for a Foreign Assignment Preparing for a Foreign Assignment A Poor Track record for American Expatriate Some Good News: North American Women on Foreign Assignments Avoiding OB Trouble Spots in the Foreign Assignment Cycle Chapter Three Outline (continued)

Exercise Discuss GE’s Day Begins in India –What is your opinion of this sort of “offshoring” of jobs in today’s global economy? –What would be the demands of working in such a company?

Cultural Influences on Organizational Behavior 3-3 Figure 3-1 Organizational Behavior Organizational Culture Personal values/ethics Attitudes Assumptions Expectations Societal culture Customs Language Economic/ technological setting Political/ legal setting Ethnic background Religion Source: Adapted in part from BJ Punnett and S Withane, “Hofstede’s Value Survey Module: To Embrace or Abandon?” in Advances in International Comparative Management, vol 5, ed SB Prasad (Greenwich, CT: JAI Press, 1990), pp

Ethnocentrism The belief that one’s native country, culture, language, and modes of behavior are superior to all others Worldwide evidence plentiful Implications on managerial practices

3-4 Table 3-1 Guidelines for Behavior and Ethics in Foreign Cultures: A Balancing Act Source: Three guidelines in center column quoted from (and other contents of table adapted from discussion in Thomas Donaldson, “Values in Tension: Ethics Away from Home.” Harvard Business Review, September- October 1996, pp Cultural Relativism “ When in Rome, do as the Romans do.” Guiding Principles for a Middle Ground Cultural Imperialism “The sun never set on the British Empire” Assumption: Assumption: Each culture is right in its own way; there are no international or universal standards.Problems: Morally inconsistent Fosters “anything is okay” attitude. Respect for core human values, which determine the absolute moral threshold for all business activities. Respect for local traditions The belief that context matters when deciding what is right and what is wrong. Assumption: Assumption: People in all cultures should follow one set of behavioral and ethical standards.Problems: Morally arrogant Insensitivity to local cultural traditions and tastes.

3-7a Key Cultural Dimensions Individualistic Cultures: Individualistic Cultures: “I” and “me” cultures where individual freedom and choice are given priority Collectivist Cultures: Collectivist Cultures: “We” and “us” cultures where shared goals and interests rank higher than individual desires and goals High-Context Cultures: High-Context Cultures: situational and nonverbal cues convey primary meaning Low-Context Cultures: Low-Context Cultures: meaning conveyed primarily through written and spoken words

3-7b Monochronic Time: Monochronic Time: precise, schedule-driven, and public (do one thing at a time) Polychronic Time: Polychronic Time: multi-dimensional and personal (engage in multi-tasking) For class discussion: For class discussion: How would you characterize yourself in terms of these key dimensions? How will these cultural tendencies help or hinder you as a manager in your home country? Key Cultural Dimensions (continued)

GLOBE Project dimensions Power distance – unequal distribution of power Uncertainty avoidance – reliance on social norms and rules to reduce uncertainty Societal collectivism - loyalty to social unit vs individual goals In-group collectivism – pride and loyalty for their family or organization

GLOBE Project continued Gender egalitarianism Assertiveness – confrontational and dominance in social relationship Future orientation – delay gratification Performance orientation – reward for individual improvement and excellence Humane orientation – reward for being kind, fair, friendly, generous

Skills and Best Practices: Steps You Can Take Now to Become a Global Manager 1. Global Perspective: 1. Global Perspective: Focus on global business 2. Cultural Responsiveness: 2. Cultural Responsiveness: Become familiar with many cultures 3. Appreciate Cultural Synergies: 3. Appreciate Cultural Synergies: Learn multicultural dynamics 4. Cultural Adaptability: 4. Cultural Adaptability: Live and work effectively in different cultures 5. Cross-Cultural Communication: 5. Cross-Cultural Communication: Daily cross-cultural interaction 6. Cross-Cultural Collaboration: 6. Cross-Cultural Collaboration: Multicultural teamwork 7. Acquire Broad Foreign Experience: Series of foreign career assignments

Reasons Why US Expatriate Managers Fail in Foreign Assignments  Manager’s spouse cannot adjust to new physical or cultural surroundings  Manager cannot adapt to new physical or cultural surroundings  Family problems  Manager is emotionally immature  Manager cannot cope with foreign duties  Manager is not technically competent  Manager lacks proper motivation for foreign assignment

1. Selection and training “Unrealistic expectations” 2. Arrival and adjustment “Culture shock” 3. Settling in and acculturating “Lack of support” 4. Returning home and adjusting “Reentry shock” Home Country Experiences Foreign Country Experiences Reassignment Foreign Assignment Cycle