MGMT 371: Global Management I. Managing Across Cultures A.Cultural Influences B.Cultural Dimensions C.Expatriates/foreign assignments

Cultural Influences on Organizational Behavior  Economic/technological setting  Political/legal setting  Ethnic background  Religion Societal Culture  Customs  Language  Personal values/ethics  Attitudes  Assumptions  Expectations Organizational culture Organizational behavior

I. Managing Across Cultures F Ethnocentrism F Cultural Intelligence F Project GLOBE: Nine Dimensions F Individualistic vs. Collectivist F Monochronic vs. Polychronic F High Context vs. Low Context F Interpersonal Space

Ethnocentrism F Who’s guilty? F What are the effects? F What can managers do?

F “An outsider’s seemingly natural ability to interpret someone’s unfamiliar and ambiguous gestures the way that person’s compatriots would.” F Innate or learned? Cultural Intelligence (CQ)

F Dimensions: –Cognitive –Physical –Emotional/motivational

Cultural Dimensions from the GLOBE Project F Power Distance F Uncertainty Avoidance F Societal Collectivism F In-group Collectivism F Gender Egalitarianism F Assertiveness F Future Orientation F Performance Orientation F Humane Orientation.

Individualism vs. Collectivism Individualistic F “I” and “Me” cultures F Priority given to individual freedom and choice –Israel –Romania –Nigeria –Canada –United States Collectivist F “We” and “Us” cultures F Rank shared goals higher than individual desires and goals F Subordinate their own wishes and goals to those of the relevant social unit –Egypt –Nepal –Mexico –India –Japan.

High vs. Low Context Cultures High-Context F Establish social trust first F Value personal relations and goodwill F Negotiations slow and ritualistic –Chinese –Korean –Japanese Low-Context F Get down to business first F Value expertise and performance F Agreement by specific, legalistic contract F Negotiations as efficient as possible –Germany –Scandinavia –US.

Cultural Dimensions: Hofstede-Bond Studies Extent people embrace competitive masculine traits, or nurturing feminine traits Masculinity- Femininity How loose or tight the bond between individuals and societal groups Individualism- Collectivism Extent people expect inequality (hierarchy) in social institutions Power Distance

Cultural Dimensions: Hofstede-Bond Studies Extent are people oriented toward the future by saving and being persistent vs. being oriented toward the present and past by respecting tradition and social obligations Long-Term vs. Short- Term Orientation Extent people prefer structured vs. unstructured situations? Uncertainty Avoidance

Expatriates / Foreign Assignments F 4 STAGE CYCLE: 1.Selection and Training 2.Arrival and adjustment 3.Settling in / Acculturating 4.Returning / Adjusting

Why U.S. Expatriates Fail on Foreign Assignments 1) Spouse/family cannot adjust 2) Manager cannot adapt to new physical or cultural surroundings 3) Lack of preparation/training 4) Manager not culturally intelligent 5) Manager not technically competent 6) Manager not motivated for assignment