1. International OB: Managing across Cultures
CHAPTER FOUR

2. The U.S. Has Diverse Cultural Roots
Cross-cultural dealings are particularly common in countries such as the
United States, Canada, and Brazil—culturally diverse nations populated
by both indigenous people and generations of immigrants

3. Societal Culture Is Complex and Multilayered
a set of beliefs and values about what is desirable and undesirable in a community of people, and a set of formal or informal practices to support the values
So culture has both prescriptive (what people should do) and descriptive (what they actually do) elements. Culture is passed from one generation to the next by family, friends, teachers, and relevant others. Most cultural lessons are learned by observing and imitating role models as they go about their daily affairs or as observed in the media

4. Cultural Influences on Organizational Behavior
As illustrated in Figure 4–1 , both organizational and societal cultures influence organizational behavior. Employees
bring their societal culture to work with them in the form of customs and language.
Organizational culture, a by-product of societal culture, in turn affects individual differences,
such as values, ethics, attitudes, assumptions, and expectations.

5. A Model of Societal and Organizational Cultures
Employees bring their societal culture to work with them in the form of customs and language
Organizational culture affects an individual’s values, ethics, attitudes, assumptions, and expectations
Employees bring their societal culture to work with them in the form of customs and language
Organizational culture affects an individual’s values, ethics, attitudes, assumptions, and expectations

6. Ethnocentrism Ethnocentrism
belief that one’s native country, culture, language, and behavior are superior to all others.
Ethnocentrism —the belief that one’s native country, culture, language, and modes
of behavior are superior to all others—has its roots in the dawn of civilization.

7. Research Insight and Dealing with Ethnocentrism
A survey of companies in Europe, Japan and the U.S. found ethnocentric staffing and human resource policies to be associated with increased personnel problems.
Those problems included recruiting difficulties, high turnover rates, and lawsuits over personnel policies.
Research suggests ethnocentrism is bad for business. A survey of 918 companies with home offices in the
United States (272 companies), Japan (309), and Europe (337) found ethnocentric
staffing and human resource policies to be associated with increased personnel problems.
Those problems included recruiting difficulties, high turnover rates, and lawsuits
over personnel policies. Among the three regional samples, Japanese companies had
the most ethnocentric human resource practices and the most international human
resource problems.

8. Question?
Patricia has lived in the US her entire life. She believes that the US is the greatest country in the world. Her belief is an example of _____. 
Societal norm
Cultural paradox
Ethnocentrism
Collectivism
The correct answer is “C” – ethnocentrism. See slide 4-8.
AACSB: Reflective thinking, Analytical skills Difficulty: Hard Learning Objective: 1 Type: Knowledge, Understanding, Application

9. Cultural Paradoxes Require Cultural Intelligence
ability to interpret ambiguous cross-cultural situations correctly
Cultural intelligence
ability to interpret ambiguous cross-cultural situations correctly

10. Cultural Intelligence
Knowledge
Mindfulness
Cross-cultural skills
David C. Thomas and Kerr Inkson, authors of the book Cultural Intelligence: Living and
Working Globally , say cultural intelligence has three parts:
1. First, the culturally intelligent person requires knowledge of culture and of
the fundamental principles of cross-cultural interactions. This means knowing
what culture is, how cultures vary, and how culture affects behavior.
2. Second, the culturally intelligent person needs to practice mindfulness , the
ability to pay attention in a reflective and creative way to cues in the cross-cultural
situations encountered and to one’s own knowledge and feelings.
3. Third, based on knowledge and mindfulness, the culturally intelligent person
develops cross-cultural skills and becomes competent across a wide range
of situations. These skills involve choosing the appropriate behavior from a
well-developed repertoire of behaviors that are correct for different intercultural
situations .

11. High-context cultures and Low-context cultures
High-context cultures – rely heavily on situational cues for meaning when perceiving and communicating with others
Low-context cultures – written and spoken words carry the burden of shared meanings
High-context cultures – rely heavily on situational cues for meaning when perceiving and communicating with others
Low-context cultures – written and spoken words carry the burden of shared meanings

12. Contrasting High-Context and Low-Context Cultures
This is a broadly applicable and very useful cultural distinction 37 (see Figure 4–2 ).
People from high-context cultures —including China, Korea, Japan, Vietnam,
Mexico, and Arab cultures—rely heavily on situational cues for meaning when
perceiving and communicating with others.
In low-context cultures , written and spoken words carry the burden of shared meanings. Low-context
cultures include those found in Germany, Switzerland, Scandinavia, North America, and Great Britain.

13. Avoiding Cultural Collisions
People on both sides of the context barrier must be trained to make adjustments.
Background information is essential when explaining anything.
Do not assume the newcomer is self-reliant.
High-context workers from abroad need to learn to ask questions outside their department and function.
Foreign workers must make an effort to become more self-reliant.
People on both sides of the context barrier must be trained to make adjustments.
Background information is essential when explaining anything.
Do not assume the newcomer is self-reliant.
High-context workers from abroad need to learn to ask questions outside their department and function.
Foreign workers must make an effort to become more self-reliant.

14. Project GLOBE
GLOBE (Global Leadership and Organizational Behavior Effectiveness)
attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes
GLOBE (Global Leadership and Organizational Behavior Effectiveness)
attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes

15. Nine Cultural Dimensions from the GLOBE Project
Power distance
How much unequal distribution of power should there be in organizations and society?
Uncertainty-avoidance
How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability?
Power distance
How much unequal distribution of power should there be in organizations and society?
Uncertainty-avoidance
How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability?

16. Nine Cultural Dimensions from the GLOBE Project
Institutional collectivism
How much should leaders encourage and reward loyalty to the social unit, as opposed to the pursuit of individual goals?
In-group collectivism
How much pride and loyalty should individuals have for their family or organization?
Institutional collectivism
How much should leaders encourage and reward loyalty to the social unit, as opposed to the pursuit of individual goals?
In-group collectivism
How much pride and loyalty should individuals have for their family or organization?

17. Nine Cultural Dimensions from the GLOBE Project
Gender egalitarianism
How much effort should be put into minimizing gender discrimination and role inequalities?
Assertiveness
How confrontational and dominant should individuals be in social relationships?
Future orientation
How much should people delay gratification by planning and saving for the future?
Gender egalitarianism
How much effort should be put into minimizing gender discrimination and role inequalities?
Assertiveness
How confrontational and dominant should individuals be in social relationships?
Future orientation
How much should people delay gratification by planning and saving for the future?

18. Nine Cultural Dimensions from the GLOBE Project
Performance orientation
How much should individuals be rewarded for improvement and excellence?
Humane orientation
How much should society encourage and reward people for being kind, fair, friendly, and generous?
Performance orientation
How much should individuals be rewarded for improvement and excellence?
Humane orientation
How much should society encourage and reward people for being kind, fair, friendly, and generous?

19. Question?
Rebecca has always focused on delaying gratification and saving money for the well-being and education of her children and her own retirement. According to dimensions from the GLOBE project, Rebecca's behavior reflects:
Future orientation
In-group collectivism
Masculinity-femininity
Assertiveness
The correct answer is “A”
AACSB:  Multicultural-diversity Bloom's Taxonomy:  Application
Difficulty:  Hard Page:  99

20. Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions
How do different countries score on the GLOBE cultural dimensions? Data from 18,000 managers yielded the
profiles in Table A quick overview shows a great deal of cultural diversity around the world

21. Individualism versus Collectivism
Individualistic culture
characterized as “I” and “me” cultures, give priority to individual freedom and choice
Collectivist culture
oppositely called “we” and “us” cultures, rank shared goals higher than individual desires and goals
Individualistic culture - characterized as “I” and “me” cultures, give priority to individual freedom and choice
Collectivist culture – oppositely called “we” and “us” cultures, rank shared goals higher than individual desires and goals

22. Question?
Michelle is torn between her desire to go on vacation and her organization's desire to have her at work. She decides to take her vacation. Michelle is probably from a(n) _____ culture. 
Organizational
Low-context
High-context
Individualistic
The correct answer is “D” – Individualistic. See previous slide.
AACSB: Reflective thinking, Analytical skills, Multicultural and diversity understanding Difficulty: Hard Learning Objective: 3 Type: Knowledge, Understanding, Application

23. Cultural Perceptions of Time
Monochronic time
revealed in the ordered, precise, schedule-driven use of public time that typifies and even caricatures efficient Northern Europeans and North Americans
Monochronic time
revealed in the ordered, precise, schedule-driven use of public time that typifies and even caricatures efficient Northern Europeans and North Americans

24. Cultural Perceptions of Time
Polychronic time
seen in the multiple and cyclical activities and concurrent involvement with different people in Mediterranean, Latin American, and especially Arab cultures.
Polychronic time
seen in the multiple and cyclical activities and concurrent involvement with different people in Mediterranean, Latin American, and especially Arab cultures.

25. Interpersonal Space Proxemics
study of cultural expectations about interpersonal space
Proxemics
study of cultural expectations about interpersonal space

26. Interpersonal Distance Zones for Business Conversations Vary from Culture to Culture
Hall applied the term proxemics to the study of cultural expectations about interpersonal space. He specified four interpersonal distance zones. Some call them space bubbles. They are intimate distance, personal distance, social distance, and public distance. Ranges for the four interpersonal distance zones are illustrated in Figure 4–3 , along with selected cultural differences.

27. Practical Insights from Cross-Cultural Management Research
Understanding and teaching behavioral patterns in different cultures
Cross-cultural management
Understanding and teaching behavioral patterns in different cultures

28. GLOBE and the Hofstede Study
Power distance
How much inequality does someone expect in social situations?
Individualism-collectivism
How loosely or closely is the person socially bonded?
Power distance
How much inequality does someone expect in social situations?
Individualism-collectivism
How loosely or closely is the person socially bonded?

29. GLOBE and the Hofstede Study
Masculinity-femininity
Does the person embrace stereotypically competitive, performance-oriented masculine traits or nurturing, relationship- oriented feminine traits?
Uncertainty- avoidance
How strongly does the person desire highly structured situations?
Masculinity-femininity
Does the person embrace stereotypically competitive, performance-oriented masculine traits or nurturing, relationship-oriented feminine traits?
Uncertainty- avoidance
How strongly does the person desire highly structured situations?

30. Leadership Attributes Universally Liked and Disliked
In phase 2 of the GLOBE Project, researchers set out to discover which, if any, attributes
of leadership were universally liked or disliked. They surveyed 17,000 middle
managers working for 951 organizations across 62 countries. Their results, summarized
in Table 4–2 , have important implications for present and future global managers.

31. Question?
Manuel is manager of a work crew. He keeps to himself and prefers not to interact with his employees. This is an example of which negative leader attribute.
Asocial
Ruthless
Eccentric
Loner
The correct answer is “D” – loner. See previous slide.

32. Why Do US Expatriates Fail on Foreign Assignments?
refers to anyone living and/or working outside their home country
Expatriate
refers to anyone living and/or working outside their home country

33. Avoiding Unrealistic Expectations
Realistic job previews are a must for future expatriates.
Cross-cultural training
any type of structured experience designed to help departing employees (and their families) adjust to a foreign culture
Realistic job previews are a must for future expatriates.
Cross-cultural training
any type of structured experience designed to help
departing employees (and their families) adjust to a foreign culture

34. The Foreign Assignment Cycle
As illustrated in Figure 4-4 , the first and last stages of the cycle occur at
home. The middle two stages occur in the foreign or host country. Each stage hides an
OB-related trouble spot that needs to be anticipated and neutralized. Otherwise, the
bill for another failed foreign assignment will grow.

35. Key Cross-Cultural Competencies
SOURCE: Excerpted from Y Yamazaki and D C Kayes, “An Experiential Approach to
Cross-Cultural Learning: A Review and Integration of Competencies for Successful Expatriate
Adaptation,” Academy of Management Learning and Education, December 2004, Table 2, p 372.

36. Avoiding Culture Shock
anxiety and doubt caused by an overload of new expectations and cues
Best defense is comprehensive cross-cultural training, including intensive language study
Culture shock
anxiety and doubt caused by an overload of new expectations and cues
Best defense is comprehensive cross-cultural training, including intensive language study

37. Support during the Foreign Assignment
Host-country sponsors
assigned to individual managers or families
Serve as “cultural seeing-eye dogs”
Host-country sponsors
assigned to individual managers or families
Serve as “cultural seeing-eye dogs”