1. © 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Developing Global Managers Chapter Three

2. 3-2 After reading the material in this chapter, you should be able to: LO3.1 Describe a global mind-set, and explain how to build its three-component forms of capital. LO3.2 Identify and describe the nine cultural dimensions from the GLOBE project. LO3.3 Describe the differences between individualistic cultures and collectivist cultures.

3. 3-3 After reading the material in this chapter, you should be able to: LO3.4 Demonstrate your knowledge of the distinctions between high-context versus low-context cultures and monochronic versus polychronic cultures. LO3.5 Explain what the GLOBE project has taught us about leadership. LO3.6 Identify an OB trouble spot for each stage of the foreign assignment cycle.

4. 3-4 Developing a Global Mindset Intellectual capital Psychological capital Social capital

5. 3-5 A Model of Societal and Organizational Cultures Societal culture  involves shared values, norms, identities, and interpretations that result from common experiences of members of collectives that are transmitted over time.

6. 3-6 Cultural Influences on Organizational Behavior

7. 3-7 Merging Societal and Organizational Culture 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

8. 3-8 Ethnocentrism  belief that one’s native country, culture, language, and behavior are superior to all others.

9. 3-9 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.

10. 3-10 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 _____. A. Societal norm B. Cultural paradox C. Ethnocentrism D. Collectivism

11. 3-11 Becoming Cross-Culturally Competent Cultural intelligence  ability to interpret ambiguous cross-cultural situations correctly

12. 3-12 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

13. 3-13 Nine Basic 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?

14. 3-14 Nine Basic 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?

15. 3-15 Nine Basic 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?

16. 3-16 Nine Basic 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?

17. 3-17 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?

18. 3-18 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?

19. 3-19 Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions

20. 3-20 Country Profiles and Practical Implications Knowing the cultural tendencies of foreign business partners and competitors can give you a strategic competitive advantage.

21. 3-21 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: A.Future orientation B.In-group collectivism C.Masculinity-femininity D.Assertiveness

22. 3-22 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

23. 3-23 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

24. 3-24 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. A.Organizational B.Low-context C.High-context D.Individualistic

25. 3-25 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 Polychronic time  seen in the multiple and cyclical activities and concurrent involvement with different people in Mediterranean, Latin American, and especially Arab cultures.

26. 3-26 Leadership Attributes Universally Liked and Disliked Table 3-2

27. 3-27 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. A.Asocial B.Ruthless C.Eccentric D.Loner

28. 3-28 Preparing for a Foreign Assignment Expatriate  refers to anyone living and/or working outside their home country

29. 3-29 Common Types of Expatriate Performance Failures 1.Early return from assignment 2.Delayed productivity or project start time 3.Disruption of relationship between expatriate and host nationals 4.Damage to employer’s image 5.Lost opportunities 6.Problematic repatriation

30. 3-30 The Foreign Assignment Cycle Figure 3-2

31. 3-31 Avoiding Unrealistic Expectations Realistic job previews are a must for future expatriates. Cross-cultural training  any activities aimed at enhancing the cultural awareness of employees to enable them to work more effectively with people from different cultural backgrounds.

32. 3-32 Key Cross-Cultural Competencies

33. 3-33 Avoiding Culture Shock 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

34. 3-34 Question? Danielle is struggling with the anxiety of driving on the left-hand side of the road at her new job assignment in the U.K. This is called ___________. A.Mentoring B.Collective culture C.Culture shock D.Societal adjustment

35. 3-35 Support during the Foreign Assignment Host-country sponsors  assigned to individual managers or families  Serve as “cultural seeing-eye dogs”

36. 3-36 Building a Support Network During a Foreign Assignment Informational support  includes knowledge to assist expatriates’ functioning and problem solving in the host country Emotional support  helps expatriates feel better about themselves and their situation when adjustment is difficult or overwhelming

37. 3-37 Building a Support Network During a Foreign Assignment Stage 1: First, if not also foremost, expatriates need to be motivated to seek support. Stage 2: Next, potential sources of support need to be identified and approached. Stage 3: And once identified, the support provider’s willingness and ability to support needs to be determined and support needs to be utilized. Stage 4: Support needs to be utilized. Stage 5: Include support provider in the expatriate’s network—if the support was helpful.

38. 3-38 Successful International Assignments 1.Be sure that repatriation is an explicit part of your international assignment plan. 2.Identify, establish, and maintain communications with sources of ongoing support in your home country. 3.Confirm that senior management openly and genuinely values international expertise.

39. 3-39 Video Case: Cirque du Soleil Why is Cirque du Soleil successful throughout the world? Why does the product transcend culture differences between countries? How do the cultural influences influence organizational behavior at Cirque du Soleil? Why is it important for Cirque du Soleil to be a good corporate citizen? How does ethnocentrism relate to fulfilling this role?

40. 3-40 Video Case: Disney Imagineering In what ways does Disney Imagineering truly live up to the title of a global company? Why are their parks and stories so universally accepted across cultures? For its remote locations, does Disney consider local cultural tastes too much? Should they “stick to their guns” more? What benefit does paying attention to local culture provide?