1. MANAGING ACROSS CULTURES
Mgt 485 CHAPTER 6
MANAGING ACROSS CULTURES
Irwin/McGraw-Hill [Modified by EvS]

2. Fundamental factors in designing Organizations
‚Underlying values
T Objectives
‚Structure
T Number of jobs
T Methods of communication
T Relationships
‚Planning and control(s)
T Planning, measurement, evaluation schemes
‚Compensation / reward system
T Pay philosophy, promotions, raises, bonuses, etc.
‚Workforce selection
T Criteria for selection at different levels
‚Training, technological adaptation
‚Utilization of external “expertise”
Irwin/McGraw-Hill [Modified by EvS]

3. Strategies for Managing Across Cultures
3 Central Management issues when considering going global:
Organizational Structure
Authority / Autonomy
Reporting relationships
Planning, Measurement, Control schemes
Standardization / Adaptation
Irwin/McGraw-Hill [Modified by EvS]

4. Strategies for Managing Across Cultures
Globalization - the production and distribution of products and services of a homogeneous type and quality on a worldwide basis
National responsiveness - the need to understand the different consumer tastes in segmented regional markets
Irwin/McGraw-Hill [Modified by EvS]

5. Strategies for Managing Across Cultures
Globalization - National responsiveness
Why is this an issue?
Irwin/McGraw-Hill [Modified by EvS]

6. Strategies for Managing Across Cultures
Cultural differences making a difference
6 Basic cultural variations
People’s Nature
Relationship to nature
Relationship to other people
Modality of human activity
Temporal focus on human activity
Conception of space
Irwin/McGraw-Hill [Modified by EvS]

7. Strategies for Managing Across Cultures
Cultural differences making a difference
How they view time
The collectivist / individualistic dimension
Power Distance (also shows in language)
Attitude towards affection
Nature of business conversations
Negotiating styles
Protocol for meetings (whether business or personal)
Eating behaviors
Dress / appearance
Irwin/McGraw-Hill [Modified by EvS]

8. Strategies for Managing Across Cultures
Why are MNCs committed to a “globalization imperative?”
Irwin/McGraw-Hill [Modified by EvS]

9. Strategies for Managing Across Cultures
Why develop unique strategies?
Diversity of worldwide standards
Cell phones, Televisions, Household appliances
Continued demand by customers for differentiated products
Importance of being perceived to be an "insider”
US Toyota
Difficulty of managing global operations
Issues of decentralization
Allow subsidiaries to use talants & abilities
Prevent "headquarters" from being a constraint
Irwin/McGraw-Hill [Modified by EvS]

10. Globalization Vs. National Responsiveness Matrix
High Low
High globalization Mixed
Low Mixed National
Responsiveness
Globalization
Irwin/McGraw-Hill [Modified by EvS]

11. Strategies for Managing Across Cultures
Globalization paradox
Impossibility of conducting business “one-way”
“Secret Hope”
Transportability of successful strategies & procedures
There are more cultural differences than similarities
Irwin/McGraw-Hill [Modified by EvS]

12. Barriers to Effective Cross-Cultural Management
Parochialism- the tendency to view the world through one’s eyes and perspectives
Simplification- the process of exhibiting the same orientation toward different cultural
groups
Irwin/McGraw-Hill [Modified by EvS]

13. High Vs. Low Context Cultures
High Context
long lasting relationships
implicit communication
loyalty to people of authority
spoken agreements
outsiders do not gain entry easily
JAPAN
Low Context
relationships are short in duration
explicit communication
authority is diffused
written agreements
ousiders are encouraged to join inner circle
U.S.
Irwin/McGraw-Hill [Modified by EvS]

14. General Similarities Across Cultures
Managerial behaviors in Russia
communication
HRM
traditional management
networking
Application of O.B. Mod. in Russia
Organizational commitment in Korea
Irwin/McGraw-Hill [Modified by EvS]

15. General Differences Across Cultures
HRM activities
labor laws
wages
vacation time
maternity leave
compensation
group Vs. individual incentives
Irwin/McGraw-Hill [Modified by EvS]

16. Doing Business in China
Emphasis on trust and mutual connections
Meetings start with small talk
Host indicates when meetings begin and end
Slow in forming a an action plan, but stick with decisions once made
Reciprocity is important
Negotiations are often carried out through intermediaries to reduce the risk of losing face
Irwin/McGraw-Hill [Modified by EvS]

17. Doing Business in India
Punctuality is important
No personal questions
Titles are important
No public displays of affection
Beckoning done with the palm turned down
When eating or accepting things, use the right hand- the left is considered unclean
The namaste gesture can be used to greet people
Bargaining for goods and services is common
Irwin/McGraw-Hill [Modified by EvS]

18. Doing Business in Russia
Build personal relationships with partners
Use local consultants
Consider business ethics
Be patient
Stress exclusivity
Face to face communication is expected
Keep financial information personal
Research the company
Stress mutual gain
Clarify terminology
Irwin/McGraw-Hill [Modified by EvS]

19. Doing Business in France
Use a quick hand shake with some pressure in the grip
Punctuality is extremely important
During a meal, small talk is acceptable, but personal questions and the subject of money are never brought up
Great importance is placed on neatness and taste
Irwin/McGraw-Hill [Modified by EvS]

20. Doing Business in Arab Countries {Http://arab.net/}
Never display feelings of superiority
Do not take credit for joint efforts
Efforts to sidestep red tape can be regarded as disrespect for legal and government institutions
Connections are extremely important
Patience is critical to business transactions
Irwin/McGraw-Hill [Modified by EvS]

21. Globalizing e-Go
What is at least ONE reason that Emeric-ian Enterprises would be interested in pursuing marketing the e-Go in {your researched country}
Cost of Materials?
Quality of Materials?
Cost of Labor?
Quality of Labor?
Access to Natural Resources
Access to other resources?
Access to an available market?
Irwin/McGraw-Hill [Modified by EvS]