2. Definition of Culture in Organizational Context Types of Culture The Impact of Personality and Language on Culture Transmitting Information, Listening, and Displaying Patience Workable Strategies for Dealing with Culture Tips on Managing Culture C ONTENT

3. W HAT IS THE D EFINITION OF C ULTURE ? T HE A NSWER IS T OO B ROAD !!

4. W HAT IS THE D EFINITION OF C ULTURE ? According to the two anthropologists, Kroeber and Kluckorn, there are 300 different definitions and sometimes conflicting definitions S O … I T DEPENDS ON THE C ONTEXT

5. W HAT IS C ULTURE IN AN O RGANIZATIONAL C ONTEXT ? Culture is “shared knowledge embodied in the values, beliefs, and norms used by members of the organization to carry out their day-to-day tasks”.

6. W HY IS C ULTURE IMPORTANT ? It can explain the behavior of people. Example: Krispy Kreme (In Thailand)

7. W HY IS C ULTURE IMPORTANT ? For alliance, people’s behavior is extremely important. Because people’s behavior can somewhat indicate the culture of that organization. When we ally with the new organization, we have to observe… 1) What do the offices look like? 2) How are people dressed? 3) What are the jokes and taboos?

8. H OW CAN MANAGERS DEAL WITH C ULTURAL D IFFERENCES WHILE MAINTAINING THEIR FOCUS ON ACCOMPLISHING THE GOALS OF THE A LLIANCE ? There are two extreme approaches Ignoring culture and hope for the best Characterizing the partner firms’ culture and evaluate those characteristics for compatibility then manage it H OWEVER, MOST FIRMS USE AD HOC A PPROACH

9. T YPES OF C ULTURE Three Types of Culture National Culture Culture of a Nation Corporate Culture Culture of an Organization Subunit Culture Culture of a department within the organization

10. T YPES OF C ULTURE (E XAMPLE ) Alliance # 1Alliance # 2 Type of CultureCollaborative R&D between U.S. firms Product development, manufacturing, and marketing between a U.S. and Japanese firm NationalSameDifferent CorporateDifferent SubunitSameDifferent

11. T HE I MPACT OF P ERSONALITY AND L ANGUAGE ON C ULTURE

12. P ERSONALITY AND S TEREOTYPE T RAPS A CCORDING TO I NDUSTRIAL R ESEARCH I NSTITUTE (IRI) The behaviors of each national are different. U.S.A. managers are directly to the points. Japanese are consensus driven. Germans are well organized.

13. T HE P ERSONALITY AND S TEREOTYPE Can mislead when dealing with individuals

14. L ANGUAGE T RAPS

15. The first trap is that the use of a foreign language shapes a person’s behavior. The second trap is subtle meanings.

16. T RANSMITTING INFORMATION, LISTENING, AND DISPLAYING PATIENCE Common communication errors Poor speaking, writing, and listening skills Other communication errors Language gaps Cultural differences

17. C OMMUNICATION IN THE N EGOTIATION People who know each other well, they communicate and convey message through their… Tone of voice Body language Facial expression But, people who never know each other before, they may have trouble in communication, and the solution of this problem is the patience and the familiarity

18. F ACE TO F ACE VS. E- MAIL Using e-mail and other technology Technology makes communication easier by sending an e-mail or having a meeting videoconference Face to Face Generally, meeting for the first few times, face to face meeting helps establish trust

19. W ORKABLE S TRATEGIES FOR D EALING WITH C ULTURE Knowledge To identify the dominant behaviors people are likely to observe in their counterparts Well-planned training program

20. W ORKABLE S TRATEGIES FOR D EALING WITH C ULTURE Pen-and-paper cultural inventory By: Members of both Implementation Teams Parameters: “attitude toward competitors” or “willingness to accept ideas from outside the firm” Purpose: To predict what alliance activities might cause inter partners conflict To identify the role of cultural differences in the dispute

21. W ORKABLE S TRATEGIES FOR D EALING WITH C ULTURE Trust and Respect Both firms must be conscious of the positive effects of bridging cultural gaps using activities design to encourage people to develop a closer personal understanding of each other Technical visits Joint presentations Cooperative research, manufacturing and distribution “Cultural differences cannot stand up under a relentless assault of trust and respect”

22. W ORKABLE S TRATEGIES FOR D EALING WITH C ULTURE Team Building in Alliances Elaborate ways to break down barriers that are fun, inexpensive, and achieve the critical results of allowing people to build interpersonal relationships Example: Bowling “Communication in alliances is a dialogue of actions”

23. W ORKABLE S TRATEGIES FOR D EALING WITH C ULTURE The Culturally Correct Dinner Secret Weapon People

24. T IPS ON M ANAGING CULTURE Understand the dominant behaviors in each firm’s culture Develop trust an respect between counterparts Have fun together

25. C ONCLUSION

26. T HANK Y OU FOR YOUR C OLLABORATION