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Chapter 2
    Managing Across Cultures


Chapter 2(1) _ Global Culture…2
Chapter 2(2) _ Multicultural Teams…11
Chapter 2(3) _ Motivation in a Global Context…36
Chapter 2(4) _ Decision Making…51
Chapter 2(5) _ Leadership…68
Chapter 2(6) _ Global HRM…92



1               Cross-Cultural Management
Chapter 2(1) _Global Culture




2           Cross-Cultural Management
CULTURAL MESSAGES COME
     FROM MULTIPLE SOURCES
     – Domestic
     – International
     – Global
     although most common challenges are
       addressed by nations, a global civil society is
       emerging




3                  Cross-Cultural Management
PEOPLE LOOK AT ALTERNATIVE
ENTITIES FOR CULTURAL DIRECTION


 • Affiliative groups e.g., ethnic groups
 • Nongovernmental organizations, e.g., the
   Women’s League for Peace and Freedom
 • Religious groups
 • Regional associations, e.g., Economic Union
 • Business organizations




 4              Cross-Cultural Management
Multiple messages and sources
       create CONFUSION AND
             UNCERTAINTY
• Leading to new questions national cultures are
  less well able to answer
   – but
• In a global society, we don’t have a sense of the
  appropriate rules by which all can live




5               Cross-Cultural Management
TRANSITION TIME?

• Are we at a point
  where nationality is
  less important to
  culture than in the
  past?                                 All of
                                        Us




6                Cross-Cultural Management
WE SEE THAT SOME VALUES
ARE COVERGING, OTHERS ARE
           NOT
•   The Planet Project
•   The Roper Poll of Values
•   The World Values Survey
•   The GLOBE Project




7                Cross-Cultural Management
GLOBE RESPONSES ON GENDER
   EGALITARIANISM SHOWS
COVERGENCE ON “SHOULD BE”
                        Latin America
                            7

    Indigenous Africa       6           Anglo
                            5                              As Is
                            4

          Arab              3                   Nordic
                            2
                                                           Shd Be
                            1


        S Asia                                  Germanic



           Confucian                    Latin Europe

                        East Europe

8                       Cross-Cultural Management
GLOBE RESPONSES ON HUMANE
      ORIENTATION ALSO SHOWS
    COVERGENCE ON “SHOULD BE”
                         Latin America
                             7

    Indigenous Africa        6           Anglo
                             5

                             4                              As Is

          Arab               3                   Nordic
                             2

                             1
                                                            Shd Be

        S Asia                                   Germanic



           Confucian                     Latin Europe

                         East Europe
9                       Cross-Cultural Management
QUESTIONS OF GLOBAL AND
         LOCAL CULTURES

 • Will global culture replace or exist with local
   cultures?
 • Will global culture bring positive or negative
   outcomes?




10                Cross-Cultural Management
Chapter 2(2)- Multicultural Teams




11           Cross-Cultural Management
Group

     Two or more interacting individuals who
     come together to achieve some
     objectives.
     Groups can be either formal or informal,
     and further subclassified into command,
     task, interest, or friendship categories.




12              Cross-Cultural Management
Team

      A specific type of group where an
      emphasis is put on some level of
      member interdependence and on
      achievement of common goals
     •All teams are groups
     •Some groups are just people assembled together
     •Teams have task interdependence whereas some
     groups do not (e.g., group of employees enjoying
     lunch together)


13                 Cross-Cultural Management
Reasons for Team Popularity

• Outperform individuals on tasks requiring
  multiple skills, judgment, and experience
• Better utilization of employee talents
• More flexible and responsive to changing events
• Facilitate employee participation in operating
  decisions
• Effective in democratizing the organization and
  increasing employee involvement and motivation


14               Cross-Cultural Management
Basic Group Concepts

       Group Roles                 Group Norms

     Expected Patterns of Acceptable Standards
     Behavior Based on a   of Behavior Shared
      Given Position in a   by the Members
          Social Unit          of a Group

15                Cross-Cultural Management
Cohesiveness
     Social-Oriented Cohesiveness: The degree to
       which members of the group are attracted to
       each other and motivated to stay in the group


     Task-Oriented Cohesiveness: The degree to
       which group members work together,
       cooperate and coordinate their activity in
       order to achieve group goals




16                 Cross-Cultural Management
Team Effectiveness Model
     Organizational and                                     Team
                                Team Design
     Team Environment                                   Effectiveness

     • Reward systems        •Task characteristics
                             •Team size               • Achieve
     • Communication
                                                       organizational
       systems               •Team composition
                                                       goals
     • Physical space
                                                      • Satisfy member
     • Organizational                                   needs
                              Team Processes
       environment
                                                      • Maintain team
     • Organizational        •Team development          survival
       structure             •Team norms
     • Organizational        •Team roles
       leadership            •Team cohesiveness


17                        Cross-Cultural Management
Groups Across Cultures

     Two cultural dimensions are especially relevant:
     • Individualism-Collectivism
     • Power Distance
     • Also Uncertainty Avoidance; e.g., potential for
       Role Conflict (esp. in multi-functional teams)




18                  Cross-Cultural Management
The Challenge in
          Shaping Team Players

Greatest where...      Less demanding...
– The national culture –Where employees have
  is highly              strong collectivist values,
  individualistic        such as Japan or
– Introduced into        Mexico
  organizations that    –In new organizations
  historically value     that use teams as their
  individual             initial form for structuring
  achievement            work

19               Cross-Cultural Management
Cross-Cultural Differences

 Cross–cultural differences in intergroup processes
   – Collectivistic cultures
      • Expect little expression of conflict; favor
        suppressing conflict
      • Prefer to personalize interaction; focus
        on people, despite what group they
        represent
      • Group membership is an important part
        of identity and interaction


20               Cross-Cultural Management
Power Distance and SDWTs

 Nicholls et al. (1999) study of SDWT in Mexico:
 • Why are teams failing in a highly collectivist culture
   such as Mexico?
 • Major challenges in implementing SDWTs
 • Workers expect to exercise little control over work
   and not to be involved in decision making
 • Expect clear instructions from the top and are not
   highly motivated by opportunity to initiate and take
   larger responsibility
 • Can SDWT work in high-PD cultures? How?


21                Cross-Cultural Management
Interpersonal Relationships

• Individualists tend to have more friends, but with
  lesser intensity level;
• Collectivists tend to have less friends, but with
  higher intensity level.
• Individualists are less suspicious towards out-
  group members and easier to make initial contact;
• Collectivists have stronger bonds with in-group
  members


22               Cross-Cultural Management
Differential Group Processes


• Conformity: who is more conforming?
• Formal/regulated participation vs. spontaneous
• Social loafing versus social striving
• Preferences for group vs. individual rewards
• Equality (‘you deserve what you get’) vs. Equity
  (‘you get what you deserve’) vs. Need based
  decisions (‘to all according to their needs’)



23               Cross-Cultural Management
Conformity

 • Cross–cultural variations in tendency to accept
   group pressure for conformity to group norms
    – Japanese encourage high conformity to
      norms of a group that has the person's
      primary loyalty
    – German students (in some experimental
      research) showed a lower tendency to
      conform
    – Moderate conformity among people in
      Hong Kong, Brazil, Lebanon, and the
      United States
24               Cross-Cultural Management
Teams’ Cultural Composition

 •Cultural Diversity: the number of different cultures
 represented in the group;
 •Cultural Norms: the orientations of the specific
 cultures represented in the group toward group
 dynamics and processes; and
 •Relative Cultural Distance: the extent to which
 group members are culturally different from each
 other



25                Cross-Cultural Management
Surface and Deep Diversity

     In multicultural teams, diversity can be in the
       form of:
     • Surface-level (black-American; Caucasian-
       American; French and Vietnamese) and/or
     • Deep-level (Irish and English; Singaporean
       and Chinese; N. and S. Africans)




26                  Cross-Cultural Management
Dynamics of Team Diversity
                     Social Context

                       Org. Context
                        Group
                       Dynamics

            Affective           Team             Long-term
Diversity
            Reactions           Behaviours       Conseq.
•Surface
            •Cohesion           •Communication   •Performance
•Deep
            •Satisfaction       •Conflict        •Promotion
            •Commitment         •Cooperation     •Turnover


 27                Cross-Cultural Management
Jackson, Joshi & Erhardt (2003)

 • Surface-level diversity has more immediate
   impact and is influential in early-stage/newly
   formed teams while deep-level becomes more
   important over time and its effects last longer.
 • Diversity, in general, and cultural/ethnic diversity
   in particular, have mixed effects on team
   processes and performance;
 • Less effect on simpler, motor-based tasks; more
   effect on complex, interdependent teamwork


28                Cross-Cultural Management
Earley & Mosakowski (2000)

• Studied effects of heterogeneity in transnational
  teams using experimental and field settings
• Reasoned that the effects of national
  heterogeneity on team performance is non-linear;
• Found that in the early stages, homogenous
  teams (those with only one major national group
  identity) outperformed both moderately
  heterogeneous (groups with two different sub-
  group identities) and highly heterogeneous (no
  clear sub-group identities exist) teams.

29               Cross-Cultural Management
Earley & Mosakowski (2000)
• In the longer term, high-heterogeneous teams’
  performance increased as they managed to create a
  hybrid-culture;
• Such hybrid culture was not created in moderately
  heterogeneous teams, whose performance was
  lower than both high and low heterogeneity teams.
Team processes mediated the effects of heterogeneity
  on team performance, such that:
• In homogenous groups, members perceived many
  similarities between themselves (remember SIT?);
  trust, shared mental models and open
  communication developed early on in the team’s life

30               Cross-Cultural Management
Earley & Mosakowski (2000)

• In moderately heterogeneous teams, a dynamic of
  ‘us vs. them’ prevailed, with the two sub-groups
  sticking to themselves in times of conflict, resulting
  in little cross sub-group cooperation;
• In highly heterogeneous teams, as time passed,
  members go to know each other better and since
  there were no dominant sub-groups, they were free
  to form a ‘hybrid culture’-unique to their team and
  overarching each members’ national identity.
• Implications for joint ventures and projects where
  two cultures (national or organizational) get together
  to try to create a cooperative structure

 31                Cross-Cultural Management
Diversity and Teams

 • Overall, diversity causes process losses
 • Can be beneficial if team overcomes these
   losses over time
 • Depends on organizational culture and top-
   management support
 • Highly heterogeneous and highly homogenous
   teams work better than mid-range ones
 • Fault lines in teams lead to rivalry coalitions =>
   decrease effectiveness


32                Cross-Cultural Management
Conditions for Effectiveness
              More Effective             Less Effective

 Task         Innovative                 Routine

 Stage        Divergence (earlier)       Convergence (later)

 Conditions   Differences Recognized     Differences Ignore

              Task-based member          Culture-base members
              selection                  selection
              Pluralism                  Ethnocentrism

              Equal Power                Cultural Dominance

              Superordinate goals        Individual goals


              External feedback          No feedback/autonomy


33                 Cross-Cultural Management
Some Implications

 • Investment in diverse teams is more sensible for
   the longer-term, for complex tasks and when
   team members are (relatively) pluralistic
 • More careful task design is needed
 • Positive feedback, early on
 • Preparation and training, through conceptual and
   experiential approaches is recommended
 • Strive to create a third culture through
   superordinate goals and neutralization of
   differences
34               Cross-Cultural Management
Diversity: Beyond the Obvious

 • Seemingly culturally similar team members may
   have the hardest time to get along: need to take
   into account other variables besides culture
   (history, class)
 • Idiosyncratic cultural variables, e.g., intellectual
   style (Russians vs. N. Americans)
 • Prior experience with different cultures plays
   important role (usually for the better)
 • Virtual Teams: added complexity


35                Cross-Cultural Management
Chapter 2(3)-Motivation            in a
           Global Context




36          Cross-Cultural Management
Introduction to Motivation

          Motivation
       Psychological process through which
       unsatisfied wants or needs lead to drives
       that are aimed at goals or incentives

                   The Basic Motivation Process

     Unsatisfied         Drive toward goal to      Attainment of goal
       need                  satisfy need          (need satisfaction)



37                     Cross-Cultural Management
Introduction to Motivation

• Need Theories
• Cognitive theories
  – Expectancy theory: describes internal processes
    of choice among different behaviors
  – Equity theory: describes how and why people
    react when they feel unfairly treated
  – Goal setting theory: focuses on how to set goals
    for people to reach
• Behavioral theory
  – Behavior modification: focuses on observable
    behavior, not internal psychological processes


38              Cross-Cultural Management
Basic Assumptions

• The Universalist Assumption
   – All people are motivated to pursue goals they
     value
   – Specific content of the goals that are pursued
     will be influenced by culture
   – Movement toward market economies may make
     motivation more similar in different countries




39               Cross-Cultural Management
Motivation Theories
     Are Culture Bound
     Hierarchy                Need for
     of Needs               Achievement

            Goal-Setting
              Theory
40          Cross-Cultural Management
Attitudes and Personality
• Personality characteristics
  – People in individualistic cultures (United
    States) have stronger need for autonomy than
    people in group–oriented cultures (Japan)
  – People in cultures that emphasize avoiding
    uncertainty (Belgium, Peru) have stronger
    need for security than people in cultures that
    are less concerned about avoiding uncertainty
    (Singapore, Ireland)


41              Cross-Cultural Management
Need Theories of Motivation

• Concept of needs holds across cultures
• People from different cultures may express and
  satisfy needs differently
• Importance of needs in Maslow's need hierarchy
   – United States: self–actualization
   – Latin America: security, affiliation
   – France and Germany: need for security
   – New Zealand: belongingness and love
• McClelland: needs for affiliation, power and
  achievement
42              Cross-Cultural Management
International Aspects of
            Job Design
• Herzberg: Two Factor Theory
• Individual and group–based job design
   – U.S. managers have mostly used individual
     approaches to job design
   – Recent shifts to group–based approaches
   – Managers in other industrialized countries have
     mainly emphasized group–based job design




43               Cross-Cultural Management
Job Design (Cont.)

 • Changing specific job characteristics
   – Belgium, Mexico, Greece, Thailand: not
     likely to accept efforts to increase
     autonomy and task identity
   – French managers particularly dislike
     recommendations to decentralize decision
     authority. Subordinates do not expect
     them to do so
   – Quality circles: big success in Japan, but
     only partial in the US
44              Cross-Cultural Management
Cognitive and Behavioral Theories
           of Motivation
     • Two assumptions that could restrict use of
       these theories outside the U.S.
        – Individual controls decisions about future
          actions
        – Manager can deliberately shape the
          behavior of people




45                  Cross-Cultural Management
Cognitive and Behavioral Theories
           of Motivation
• Both assumptions reflect U.S. values of free will,
  individualism, individual control
• Cultural contrasts
   – Muslim managers believe something happens
     mainly because God wills it to happen
   – Hong Kong Chinese believe luck plays a role
     in all events




46               Cross-Cultural Management
Cognitive and Behavioral Theories

 • Expectancy theory's validity in other cultures
    – Japanese female life insurance sales
      representatives responded to commission
      system as expected
    – Russian textile workers
       • Linked valued extrinsic rewards to worker
         performance
       • Productivity increased as the theory predicts
 • Generally, expectancy theory best explains
   motivation of people in cultures that emphasize
   internal attribution
47                Cross-Cultural Management
Cognitive and Behavioral Theories (Cont.)
 • Equity theory: complex cross–cultural effects
   – Reward allocation decisions followed equity
     theory premises in U.S., Russian, and
     Chinese samples
   – Other studies
      • Chinese emphasized seniority in their
        reward decisions more than Americans.
      • Eastern European transition economies:
        endorsed positive inequity more than
        American students

48                 Cross-Cultural Management
Culture & Motivation
     • Research on goal setting theory in several
       countries
     • Results consistent with U.S. work that
       formulated the theory
     • Some cultural differences
        – U.S. students not affected by how goals were
          set
        – Israeli students performed better when goals
          were set participatively; consistent with
          culture of cooperation

49                 Cross-Cultural Management
Idiosyncratic Factors

Beyond cultures’ variance along the major cultural
  value dimensions, there are specific aspects
  anchored in nation’s history and expressed
  through its symbols and language.

 Ignoring such factors may
 render motivational
 techniques ineffective or
 even result in de-motivation;
 e.g.:
       Slay the Dragon!!
50                Cross-Cultural Management
Chap 2(4)- Decision Making
                  across Cultures




51         Cross-Cultural Management
Decision Making
     Process of choosing a course of action among
      alternatives




52               Cross-Cultural Management
Various Factors

     * Time Orientation
     • Deciding for the short/long term?
     • How long to make a decision?
     • Polichronic or monochronic style?
     * Who decides: Groups vs. Individuals
     * Voting vs. Consensus based decisions
     * Process: Participative vs. Autocratic



53                  Cross-Cultural Management
Value of Rationality

     Strong preference for rational D.M. vs.
     Occasional or low value on rationality;
     In some cultures more emphasis on:
     • Emotions
     • Religion
     • Ideology




54                   Cross-Cultural Management
Rational Decision Making
 The Rational Approach assumes that
     – Managers follow a systematic, step-by-step
       process.
     – Organization is economically based and is
       managed by decision makers who are entirely
       objective and have complete information.
 It assumes that rational choices are:
 • Consistent
 • Value-maximizing
 • Within specified constraints

55               Cross-Cultural Management
The Six-Step Rational
        Decision-Making Model
     1. Define the problem
     2. Identify decision criteria
     3. Weight the criteria
     4. Generate alternatives
     5. Rate each alternative on each criterion
     6. Compute the optimal decision




56                 Cross-Cultural Management
Cultural Contingencies in Decision Making

          Step
 1. Problem               Problem solving; change Situation acceptance
 Recognition

 2. Information Search    Gathering facts            Gathering ideas and
                                                     possibilities

 3. Construction of       New, future oriented       Past/present/future
 Alternatives             based on change            based on stability

 4. Choice                Individual level;          Group level; by senior
                          delegation of              management; slowly
                          responsibility; fast
 5. Implementation        Slow; top-down             Fast; broad participation



57                       Cross-Cultural Management
Case Study: The Road to Hell (p. 512)


     • What mistakes did John Baker Made? Why did
       he not realize his mistake when it occurred?
     • What would you recommend that Baker do
       now?
     • What do you learn from this case about human
       resource management across different
       nations?




58                  Cross-Cultural Management
Stages of Moral Development
                                                                            Stage
                   Level                                                  Description
                                                                   6. Following self-chosen ethical
                                                                      principles, even if they
                 Principled                                           violate the law
                                                                   5. Valuing rights of others;
                                                                      upholding non-relative
                                                                      values and rights regardless
                                                                      of the majority’s opinion
                                                       4. Maintaining conventional order by
                Conventional                              fulfilling obligations to which
                                                          you have agreed
                                                       3. Living up to what is expected by
                                                          people close to you
                                           2. Following rules only when it’s in your
                                              immediate interest
             Pre-conventional
                                          1. Sticking to rules to avoid physical
                                             punishment

Adapted from L. Kohlberg, “Moral Stages and Moralization: The Cognitive-Developmental approach,” pages 34-55 in
Moral Develop and Behavior: Theory, Research, and Social Issues, ed. T. Lickona (New York: Holt, Rinehart & Winston, 1976).
  59                                   Cross-Cultural Management
Three Different Criteria in Making
         Ethical Choices
 • Utilitarian Criterion - made solely on basis of
   outcomes or consequences
 • Focus on Rights - made consistently with
   fundamental liberties and privileges
 • Focus on Justice - requires imposing and
   enforcing rules fairly and impartially for equitable
   distribution of benefits and costs




60                Cross-Cultural Management
Ethical Aspects of Decisions
     • Multinational firms face many ethical questions
       and issues
     • Operate in many countries; subject to the laws of
       those countries
     • Legal and social context of globally oriented
       organizations can present their managers with
       ethical dilemmas




61                   Cross-Cultural Management
Ethical Aspects of Decisions

                  Two ethical views




      Cultural                                  Ethical
     relativism          Multinational
                                                realism
                         organization




62                  Cross-Cultural Management
Ethical Aspects of Decisions
     Ethical views:
     • Cultural relativism
          • Cultural relativism refers to differences in
            ethical values among different cultures
          • Premise: right and wrong should be
            decided by each society's predominant
            ethical values
          • Cultural relativists base their argument on
            three points


63                   Cross-Cultural Management
Ethical Aspects of Decisions

     - Cultural relativism (cont.)
        • Three points
           – Moral judgments are statements of
             feelings and opinions; neither wrong nor
             right
           – Moral judgments are based on local
             ethical systems; cannot judge right or
             wrong across cultures
           – Prudent approach: do not claim an action
             is either right or wrong

64                  Cross-Cultural Management
Ethical Aspects of Decisions

     - Cultural relativism (cont.)
        • Managers should behave according to local
          ethical systems, even if behavior violates
          home country ethical system
        • Many philosophers reject cultural relativism's
          argument that codes of ethics cannot cross
          national boundaries
        • Agree that countries vary in defining right
          and wrong


65                 Cross-Cultural Management
Ethical Aspects of Decisions

     – Ethical realism
        • Morality does not apply to international
          transactions
        • Because no power rules over international
          events, people will not behave morally
        • Because others will not behave morally,
          one is not morally required to behave
          ethically



66                Cross-Cultural Management
Ethical Aspects of Decisions
 • International ethical dilemmas
    – Goods made in a country with no child labor
      laws
    – Goods made in a country with child labor laws
      that are not enforced
    – Changing the behavior of local people
    – Making small payments that are allowed under
      the company’s national law



67               Cross-Cultural Management
Chapter 2(5)-Leadership




68         Cross-Cultural Management
Definitions
 There are almost as many definitions of
   leadership as there are theories…some of the
   more common ones are:
 • Ability to influence a group toward the
   achievement of goals.
 • The process whereby one individual influences
   other group members towards the attainment of
   defined group or organisational goals.
 • The process of creating vision for others and
   having the power to translate it into a reality and
   sustain it.
69                Cross-Cultural Management
Foundation for Leadership

 Leadership Behaviors and Styles

                            The use of work-centered behavior
     Authoritarian          designed to ensure task
      Leadership            accomplishment.

                            The use of work-centered behavior
     Paternalistic
                            coupled with a protective employee
     Leadership             centered concern.
                            The use of both work- or task-
     Participative          centered and people centered
     Leadership             approaches to leading subordinates.

70               Cross-Cultural Management
Leader–Subordinate Interactions

                    Authoritarian Leader



      Subordinate          Subordinate          Subordinate




            One-way downward flow of information
            and influence from authoritarian leader
            to subordinates.

71                  Cross-Cultural Management
Leader–Subordinate Interactions

                   Paternalistic Leader



     Subordinate          Subordinate          Subordinate




           Continual interaction and exchange of
           information and influence between
           leader and subordinates.

72                 Cross-Cultural Management
Leader–Subordinate Interactions

                   Participative Leader



     Subordinate          Subordinate          Subordinate




           Continual interaction and exchange of
           information and influence between
           leader and subordinates.

73                 Cross-Cultural Management
Contingency Theories
     • Leaders use various leadership
       styles/behaviours;
     • Quality of leadership experience depends on
       several situational factors, including followers
       and task type.
     • Path-Goal Model - Leader assists followers in
       attaining goals and ensures goals are
       compatible with overall objectives



74                  Cross-Cultural Management
Path-Goal Theory

A theory of leadership suggesting that subordinates
  will be motivated by a leader only to the extent they
  perceive this individual as helping them to attain
  valued goals.




75               Cross-Cultural Management
Path-Goal Theory
  Four basic leadership styles:
 • Instrumental (directive): An approach focused
   on providing specific guidance and establishing
   work schedules and rules.
 • Supportive: A style focused on establishing
   good relations with subordinates and satisfying
   their needs.
 • Participative: A pattern in which the leader
   consults with subordinates, permitting them to
   participate in decisions.
 • Achievement Oriented: An approach in which
   the leader sets challenging goals and seeks
   improvements in performance.
76               Cross-Cultural Management
Path-Goal Theory
                          Environmental contingency factors
                          • Task structure
                          • Formal authority system
                          • Work group


Leader behavior
• Directive                                                   Outcomes
• Supportive                                                  • Performance
• Participative                                               • Satisfaction
• Achievement oriented


                          Subordinate contingency factors
                          • Locus of control
                          • Experience
                          • Perceived ability
77                       Cross-Cultural Management
Leadership
Core values of country’s culture often define type of
 leadership behavior that is acceptable
     – In high PD, an emphasis on hierarchical
       relationships—directive approaches accepted;
       Hong Kong, Latin American countries; Russia
     – In low PD, hierarchical relationships are not
       valued —supportive (or participative)
       approaches accepted; Austria, Scandinavia,
       Israel



78                 Cross-Cultural Management
Leadership
Individualism-Collectivism
• Leader as a paternal figure vs. leader as an expert
• Degree to which intervention of leader in follower’s
  private lives is expected and accepted
Masculine/Feminine
• Acceptance of women as leaders
• Accepted style for leaders
Long-Term-Orientation
• Elect leaders for four years…or forty?
Leader’s style: first among equals (China) or class of
  its own (Arab Countries)
79               Cross-Cultural Management
GLOBE Project
     • Multi-country study and evaluation of cultural
       attributes and leadership behavior
     • Are transformational characteristics of
       leadership universally endorsed?
     • 170 country co-investigators
     • 65 different cultures
     • 17,500 middle managers
     • 800 organizations




80                   Cross-Cultural Management
GLOBE Project
     • Which traits are universally viewed as
       impediments to leadership effectiveness?
     • Based on beliefs that
       – Certain attributes that distinguish one culture from
         others can be used to predict the most suitable,
         effective and acceptable organizational and leader
         practices within that culture
       – Societal culture has direct impact on organizational
         culture
       – Leader acceptance stems from tying leader
         attributes and behaviors to subordinate norms

81                   Cross-Cultural Management
GLOBE Cultural Variable Results
Variable                Highest           Medium            Lowest
                        Ranking           Ranking           Ranking
Assertiveness           Spain, U.S.      Egypt, IrelandSweden, New
                                                       Zealand
Future orientation      Denmark, CanadaSlovenia, Egypt Russia, Argentina
Gender differentiation South Korea,      Italy, Brazil    Sweden Denmark
                       Egypt
Uncertainty avoidance Austria, Denmark Israel, U.S.       Russia, Hungary
Power distance          Russia, Spain    England, France Demark, Netherlands
Collectivism/Societal   Denmark,         Hong Kong, U.S. Greece, Hungary
                        Singapore
In-group collectivism   Egypt, China     England, France Denmark,
                                                         Netherlands
Performance orientation U.S., Taiwan     Sweden, Israel Russia, Argentina

 Humane orientation      Indonesia, Egypt Hong Kong,       Germany, Spain
                                          Sweden
 82                        Cross-Cultural Management
Universal Leadership Attributes
            Positive                               Negative
•    Trustworthy                      •   Loner
•    Just                             •   Non-Cooperative
•    Honest                           •   Ruthless
•    Charisma                         •   Non-explicit
•    Inspiration & Vision             •   Irritable
•    Team-Orientation                 •   Dictatorial
•    Excellence-Oriented
•    Decisive
•    Intelligent


83                     Cross-Cultural Management
Leadership and Management
Need to bear in mind that leadership style is very
 much situation dependent: for example, in some
 situations (e.g., emergency) and in some
 organizational cultures, directive style will be
 accepted even in a country like the US;
Participation is more likely if the basis of power is
  more achievement based (instrumental) than if it
  is ascribed (personal) and
Degree of participation in decision making and
  leadership by subordinates vary cross-nationally


84               Cross-Cultural Management
Leadership in the
         International Context
     Attitudes of European        European managers tend to use a
                                  participative approach.
     Managers Toward              Researchers investigated four
     Leadership Practices         areas relevant to leadership.
                                 Does the leader believe that employees
     Capacity for Leadership
                                    prefer to be directed and have little
         and Initiative          ambition? (Theory X)                  OR
                               Does the leader believe that
                               characteristics such as initiative can be
                               acquired by most people regardless of
                               their inborn traits and abilities? (Theory Y)




85                   Cross-Cultural Management
Leadership in the
         International Context

     Attitudes of European        Most evidence indicates European
                                  managers tend to use a participative
     Managers Toward              approach. Researchers investigated
     Leadership Practices         four areas relevant to leadership.

     Capacity for Leadership   Does the leader believe that detailed,
                               complete instructions should be given to
         and Initiative        subordinates and that subordinates need
                               only this information to do their jobs?
       Sharing Information                           OR
                               Does the leader believe that general
         and Objectives        directions are sufficient and that
                               subordinates can use their initiative in
                               working out the details?




86                   Cross-Cultural Management
Leadership in the
         International Context
     Attitudes of European          Most evidence indicates European
                                    managers tend to use a participative
     Managers Toward                approach. Researchers investigated
     Leadership Practices           four areas relevant to leadership.
                                 Does the leader support participative
     Capacity for Leadership     leadership practices?
         and Initiative
       Sharing Information
         and Objectives

          Participation



87                    Cross-Cultural Management
Leadership in the
       International Context
     Attitudes of European         Most evidence indicates European
                                   managers tend to use a participative
     Managers Toward               approach. Researchers investigated
     Leadership Practices          four areas relevant to leadership.

     Capacity for Leadership     Does the leader believe that the
         and Initiative          most effective way to control
                                 employees is through rewards
       Sharing Information
                                 and punishment?
         and Objectives                         OR
                                 Does the leader believe that
          Participation          employees respond best to
                                 internally generated control?
         Internal Control
88                    Cross-Cultural Management
Japanese vs. U.S.
         Leadership Styles
Dimension        Japan                      US
Employment       Often for life             Often short-term
Evaluation       Slow, takes many years     Fast: those not promoted
                                            often leave
Career Paths     Very general; based on     v. specialised; people stay
                 rotations                  in one area
Dec. Making      Group based                By individual managers

Control Mech.    Implicit & informal;       Explicit; based on
                 reliance on trust and      knowing the control
                 goodwill                   mechanisms
Responsibility   Shared collectively        Assigned individually
Concern for      Broad and covers the       limited to work-life
employees        whole life

89                  Cross-Cultural Management
Differences in Middle Eastern

      and Western Management




90              Cross-Cultural Management
Differences in Middle Eastern

      and Western Management




91              Cross-Cultural Management
Leadership-Other Issues
     • Emphasis on Emotional Intelligence is
       especially important for leading cross-
       culturally
     • Idiosyncratic effects & paradoxes:
       – Moderately masculine Muslim and Hindu
         nations with traditional views on women…
         but,
       – Israel, India, Pakistan and other exceptions
     • Charismatic leadership is not universally
       accepted
92                  Cross-Cultural Management
Chapter 2(6)-GLOBAL HUMAN
             RESOURCES




93         Cross-Cultural Management
HR Challenges of International
              Business
Researchers asked “What are the key global pressures
affecting human resource management practices in your
firm currently and for the projected future?” Responses
were:


      • Deployment
      • Knowledge and innovation
        dissemination
      • Identifying and developing talent
        globally


94                 Cross-Cultural Management
Global Staffing
                                  Pressures



     – Candidate selections
     – Assignment terms
     – Relocation
     – Immigration
     – Culture and language
     – Compensation
     – Tax administration
     – Handling spouse and dependent matters
95             Cross-Cultural Management
Economic Differences

     Translate into differences in HR practices:
     • Espousing ideals of free enterprise
     • Wage costs vary
     • Other labor costs vary: severance pay; holidays




96                      Cross-Cultural Management
International Labor Relations

     Union membership varies widely worldwide




         29%
                              80%
                                                      24%
                                               39%
                 44%


                                 14%
          39%                                        23%
97                 Cross-Cultural Management
International Staffing

     Multinational corporations (MNC’s) use
     several types of international managers:
      – Locals
      – Expatriates
         • Home-country nationals
         • Third-country nationals




98              Cross-Cultural Management
Sources of Human
            Resources
 Home Country Nationals
     – Expatriate managers who are citizens of the
       country where the MNC is headquartered
        • Expatriates
           – Those who live and work away from their home country
           – Citizens of the country where the MNC is headquartered
       • Expatriates are useful for:
           – starting up operations
           – providing technical expertise
           – helping the MNC maintain financial control over the operation
       • Expatriates almost always were men
           – Situation is changing
       • Expatriates typically used in top management
         positions

99                     Cross-Cultural Management
Sources of Human Resources

      • Host-Country Nationals
        – Local managers who are hired by the MNC
        – Used in middle- and lower-level
          management positions
        – Nativization
           • Requirement of host-country
             government that mandates employment
             of host-country nationals


100               Cross-Cultural Management
Sources of Human
              Resources
      • Third-Country Nationals (TCNs)
         – Citizens of countries other than the one in
           which the MNC is headquartered or the
           one in which the managers are assigned to
           work by the MNC
         – Found in MNCs that have progressed
           through the initial and middle stages of
           internationalization




101                 Cross-Cultural Management
Sources of Human Resources
      – Advantages of using TCNs
         • Require less compensation
         • Good working knowledge of the region
         • Given home office experience, often can
           achieve objectives better than other types
           of managers
         • Offer different perspectives




102                Cross-Cultural Management
Failure Rates of International Assignments


      International assignment failure can cost
      hundreds of thousands of euros




        Europe
                                                 % Failure
         Japan

           US

                 0      20        40        60

103                  Cross-Cultural Management
Why International
                 Assignments Fail



      •   Personality
      •   Person’s intentions
      •   Family pressures
      •   Lack of cultural skills
      •   Other non-work conditions like living and
          housing conditions, and health care


104                  Cross-Cultural Management
Improving Failure Rates/Solutions

      •   Provide realistic previews
      •   Have a careful screening process
      •   Improve orientation
      •   Provide good benefits
      •   Test employees fairly
      •   Shorten assignment length




105                   Cross-Cultural Management
Important Predictors
                                      of Success




      • Family situation tops the list
      • Flexibility/adaptability screening was high on
        results
      • Use paper and pencil tests like the Overseas
        Assignment Inventory
      • Previewing what changes an international
        assignee can expect


106                Cross-Cultural Management
Selecting
                     International Managers


 • Test for traits that predict success
   in adapting to new environments
                                              Predictive trait
 • Job knowledge and motivation                breakdown
 • Relational skills
 • Flexibility and adaptability
 • Extra-cultural openness
 • Family situation


107               Cross-Cultural Management
Traits Distinguishing Successful
           International Executives
SCALE                             SAMPLE ITEM
Sensitive to Cultural Differences When working with people from other cultures, works
                                  hard to understand their perspectives.
Business Knowledge                Has a solid understanding of our products and services.
Courage to Take a Stand           Is willing to take a stand on issues.
Brings Out the Best in People     Has a special talent for dealing with people.
Acts with Integrity               Can be depended on to tell the truth regardless of
Is Insightful                     circumstances.
                                  Is good at identifying the most important part of a
Is Committed to Success           complex problem or issue.
                                  Clearly demonstrates commitment to seeing the
Takes Risks                       organization succeed.
Uses Feedback                     Takes personal as well as business risks.
Is Culturally Adventurous         Has changed as a result of feedback.
                                  Enjoys the challenge of working in countries other than
Seeks Opportunities to Learn      his/her own.
Is Open to Criticism              Takes advantage of opportunities to do new things.
Seeks Feedback                    Appears brittle—as if criticism might cause him/her to
Is Flexible                       break.*
                                  Pursues feedback even when others are reluctant to give in.
*Reverse scored                   Doesn’t get so invested in things that she/he cannot
                                  change when something doesn’t work.
108                          Cross-Cultural Management
Performance Appraisal of
        International Mangers
  Five suggestions for improving the expatriate appraisal process:
1. Stipulate the assignment’s difficulty level. For example,
being an expatriate
   manager in China is generally considered more difficult
than working in
   England, and the appraisal should take such difficulty-
level differences into
   account.
2. Weight the evaluation more toward the on-site manager’s
appraisal than
   toward the home-site manager’s distant perceptions of
the employee’s
   performance.


109                    Cross-Cultural Management
Performance Appraisal of
          International Mangers
  • 3. If however (as is usually the case), the home-site
    manager does the actual
  •    written appraisal, have him or her use a former
    expatriate from the same
  •    overseas location to provide background advice
    during the appraisal process.
  • 4. Modify the normal performance criteria used for
    that particular position to
  •    fit the overseas position and characteristics of
    that particular locale.
  • 5. Attempt to give the expatriate manager credit for
    his or her insights into
  •    the functioning of the operation and specifically
    the interdependencies
  •    of the domestic and foreign operations.

110                 Cross-Cultural Management
The New Workplace:
           Sending Women Abroad

      • In the US, only 6% filled overseas positions
        compared to 49% domestic
      • One survey found inaccurate stereotypes:
         – Not as internationally mobile
         – Might have a tougher time building teams




111                   Cross-Cultural Management
Performance Appraisal of
         International Mangers
  Five suggestions for improving the expatriate appraisal process:

1. Stipulate the assignment’s difficulty level. For example,
being an expatriate
   manager in China is generally considered more difficult
than working in
   England, and the appraisal should take such difficulty-
level differences into
   account.
2. Weight the evaluation more toward the on-site manager’s
appraisal than
   toward the home-site manager’s distant perceptions of
the employee’s
   performance.
112                    Cross-Cultural Management
Performance Appraisal of
          International Mangers
  • 3. If however (as is usually the case), the home-site
    manager does the actual
  •    written appraisal, have him or her use a former
    expatriate from the same
  •    overseas location to provide background advice
    during the appraisal process.
  • 4. Modify the normal performance criteria used for
    that particular position to
  •    fit the overseas position and characteristics of
    that particular locale.
  • 5. Attempt to give the expatriate manager credit for
    his or her insights into
  •    the functioning of the operation and specifically
    the interdependencies
  •    of the domestic and foreign operations.

113                 Cross-Cultural Management
Culture Shock!
                        Shock!M
      • Disorientation upon entering a new cultural
        environment
      • Normal use of own cultural filter fails
         – interpretation of perceptions
         – communication of intentions
      • All people experience culture shock... Past
        experience and training can shorten its
        length



114                  Cross-Cultural Management
Culture Shock:
 Responses
   – Gone native (assimilation):
     accepts the new... rejects
     own
   – Participator (integration):
     adapts to the new ... but
     retains own
   – Tourist (separation): avoids
     the new...
   – Outcast (marginalization):
     won’t/can’t adapt... rejects
     own...
115              Cross-Cultural Management
Phases

      • Honeymoon
         – euphoria, unrealistically positive attitudes
           towards host country, stay in hotel shields
           from mundane difficulties, house
           hunting/school hunting exciting, sightseeing!!
      • Irritation and Hostility (the crisis stage)
         – problems adjusting at work, local clocks don't
           fit yours, difficulties getting the routine daily
           tasks done, everything stinks; some never
           recover
116                   Cross-Cultural Management
Symptoms

      – homesickness
      – boredom
      – withdrawal (reading is an obsession, focus
        on home nationals, avoid host nationals)
      – excessive sleep need, compulsive eating
        and drinking
      – irritability
      – exaggerated cleanliness



117              Cross-Cultural Management
Symptoms (cont.)

      – marital stress, family tension, conflict
      – stereotyping host nationals
      – hostility towards host nationals
      – loss of ability to work effectively
      – fits of weeping
      – psychosomatic illnesses




118                  Cross-Cultural Management
Phases

      • Gradual Adjustment
        – can manage, cope with situation now
      • Biculturalism/Coping
        – ability to function in both cultures,
          acceptance of local customs and values for
          what they are (not going native), possible to
          get by, positive and growth gaining
          experience



119                 Cross-Cultural Management
Nature of Culture Shock

      • Not a jolt, rather a series of cumulative
        experiences
      • Cultural differences become focus of
        attention
      • Foreign ways are quaint no more... they
        seem inferior to your own




120                 Cross-Cultural Management
What Special Training Do Overseas
             Candidates Need?


      • Impact of cultural differences

      • Understanding attitude formation

      • Factual knowledge about target country

      • Language and adjustment/adaptability
        skills


121             Cross-Cultural Management
Four Step Approach to Training Overseas
                    Candidates


     Level 1 training focuses on the impact of cultural
      v

  differences, and on raising trainees’ awareness of such
  differences and their impact on business outcomes.
    vLevel 2 training aims at getting participants to

  understand how attitudes (both negative and positive)
  are formed and how they influence behavior.
    vLevel 3 training provides factual knowledge about the

  target country.
    vLevel 4 training provides skill building in areas like

  language and adjustment and adaptation skills.


122                Cross-Cultural Management
Cross-Cultural Training

   Training                                                  Training
Month Time                                                     Rigor Hig
                                                       Immersion
      s                                                Approach              h
                                                       Assessment
                                                       Field experience
                                                       Simulations
                                  Affective            Sensitivity
                                  Approach             training
Week                            Culture assimilator    Language:
                                training               “intensive”
 s          Informatio          Role-playing
                                Cases
             n Giving           Stress reduction
          Geographic            training
          briefings             Cultural Briefings
          Cultural Briefings    Language: “Moderate”
Day(s)    Films/Books
          Interpreters
                                                                            Low
          Language:                      Length of
          “Survival”
                                        Assignment
              Weeks                 Months                          Years
123                        Cross-Cultural Management
Repatriation of Expatriates
 • Repatriation
   – Return to one’s home country from an overseas
     management assignment
 • Reasons for returning
   – Formally agreed-on tour of duty is over
   – Expats want their children educated in the home
     country
   – Unhappiness with foreign assignment
   – Failure to perform well
 • Readjustment problems
   – Permanent position upon return constitutes a
     demotion
   – Lack opportunity to use skills learned abroad upon
     return
   – Salary and benefits may decrease upon return
124               Cross-Cultural Management
Repatriation Problems

      • Leaving the firm prematurely
      • Mediocre or makeshift jobs
      • Finding former colleagues
        promoted
      • Reverse culture shock




125                  Cross-Cultural Management
Repatriation

Several steps can be taken to avoid repatriation problems:
      vWrite repatriation agreements
      vShorten Assignment periods

      vAssign a sponsor

      vProvide career counseling

      vKeep communications open

      vOffer financial support

      vDevelop reorientation programs

      vBuild in return trips

126                 Cross-Cultural Management

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Chapter2

  • 1. Chapter 2 Managing Across Cultures Chapter 2(1) _ Global Culture…2 Chapter 2(2) _ Multicultural Teams…11 Chapter 2(3) _ Motivation in a Global Context…36 Chapter 2(4) _ Decision Making…51 Chapter 2(5) _ Leadership…68 Chapter 2(6) _ Global HRM…92 1 Cross-Cultural Management
  • 2. Chapter 2(1) _Global Culture 2 Cross-Cultural Management
  • 3. CULTURAL MESSAGES COME FROM MULTIPLE SOURCES – Domestic – International – Global although most common challenges are addressed by nations, a global civil society is emerging 3 Cross-Cultural Management
  • 4. PEOPLE LOOK AT ALTERNATIVE ENTITIES FOR CULTURAL DIRECTION • Affiliative groups e.g., ethnic groups • Nongovernmental organizations, e.g., the Women’s League for Peace and Freedom • Religious groups • Regional associations, e.g., Economic Union • Business organizations 4 Cross-Cultural Management
  • 5. Multiple messages and sources create CONFUSION AND UNCERTAINTY • Leading to new questions national cultures are less well able to answer – but • In a global society, we don’t have a sense of the appropriate rules by which all can live 5 Cross-Cultural Management
  • 6. TRANSITION TIME? • Are we at a point where nationality is less important to culture than in the past? All of Us 6 Cross-Cultural Management
  • 7. WE SEE THAT SOME VALUES ARE COVERGING, OTHERS ARE NOT • The Planet Project • The Roper Poll of Values • The World Values Survey • The GLOBE Project 7 Cross-Cultural Management
  • 8. GLOBE RESPONSES ON GENDER EGALITARIANISM SHOWS COVERGENCE ON “SHOULD BE” Latin America 7 Indigenous Africa 6 Anglo 5 As Is 4 Arab 3 Nordic 2 Shd Be 1 S Asia Germanic Confucian Latin Europe East Europe 8 Cross-Cultural Management
  • 9. GLOBE RESPONSES ON HUMANE ORIENTATION ALSO SHOWS COVERGENCE ON “SHOULD BE” Latin America 7 Indigenous Africa 6 Anglo 5 4 As Is Arab 3 Nordic 2 1 Shd Be S Asia Germanic Confucian Latin Europe East Europe 9 Cross-Cultural Management
  • 10. QUESTIONS OF GLOBAL AND LOCAL CULTURES • Will global culture replace or exist with local cultures? • Will global culture bring positive or negative outcomes? 10 Cross-Cultural Management
  • 11. Chapter 2(2)- Multicultural Teams 11 Cross-Cultural Management
  • 12. Group Two or more interacting individuals who come together to achieve some objectives. Groups can be either formal or informal, and further subclassified into command, task, interest, or friendship categories. 12 Cross-Cultural Management
  • 13. Team A specific type of group where an emphasis is put on some level of member interdependence and on achievement of common goals •All teams are groups •Some groups are just people assembled together •Teams have task interdependence whereas some groups do not (e.g., group of employees enjoying lunch together) 13 Cross-Cultural Management
  • 14. Reasons for Team Popularity • Outperform individuals on tasks requiring multiple skills, judgment, and experience • Better utilization of employee talents • More flexible and responsive to changing events • Facilitate employee participation in operating decisions • Effective in democratizing the organization and increasing employee involvement and motivation 14 Cross-Cultural Management
  • 15. Basic Group Concepts Group Roles Group Norms Expected Patterns of Acceptable Standards Behavior Based on a of Behavior Shared Given Position in a by the Members Social Unit of a Group 15 Cross-Cultural Management
  • 16. Cohesiveness Social-Oriented Cohesiveness: The degree to which members of the group are attracted to each other and motivated to stay in the group Task-Oriented Cohesiveness: The degree to which group members work together, cooperate and coordinate their activity in order to achieve group goals 16 Cross-Cultural Management
  • 17. Team Effectiveness Model Organizational and Team Team Design Team Environment Effectiveness • Reward systems •Task characteristics •Team size • Achieve • Communication organizational systems •Team composition goals • Physical space • Satisfy member • Organizational needs Team Processes environment • Maintain team • Organizational •Team development survival structure •Team norms • Organizational •Team roles leadership •Team cohesiveness 17 Cross-Cultural Management
  • 18. Groups Across Cultures Two cultural dimensions are especially relevant: • Individualism-Collectivism • Power Distance • Also Uncertainty Avoidance; e.g., potential for Role Conflict (esp. in multi-functional teams) 18 Cross-Cultural Management
  • 19. The Challenge in Shaping Team Players Greatest where... Less demanding... – The national culture –Where employees have is highly strong collectivist values, individualistic such as Japan or – Introduced into Mexico organizations that –In new organizations historically value that use teams as their individual initial form for structuring achievement work 19 Cross-Cultural Management
  • 20. Cross-Cultural Differences Cross–cultural differences in intergroup processes – Collectivistic cultures • Expect little expression of conflict; favor suppressing conflict • Prefer to personalize interaction; focus on people, despite what group they represent • Group membership is an important part of identity and interaction 20 Cross-Cultural Management
  • 21. Power Distance and SDWTs Nicholls et al. (1999) study of SDWT in Mexico: • Why are teams failing in a highly collectivist culture such as Mexico? • Major challenges in implementing SDWTs • Workers expect to exercise little control over work and not to be involved in decision making • Expect clear instructions from the top and are not highly motivated by opportunity to initiate and take larger responsibility • Can SDWT work in high-PD cultures? How? 21 Cross-Cultural Management
  • 22. Interpersonal Relationships • Individualists tend to have more friends, but with lesser intensity level; • Collectivists tend to have less friends, but with higher intensity level. • Individualists are less suspicious towards out- group members and easier to make initial contact; • Collectivists have stronger bonds with in-group members 22 Cross-Cultural Management
  • 23. Differential Group Processes • Conformity: who is more conforming? • Formal/regulated participation vs. spontaneous • Social loafing versus social striving • Preferences for group vs. individual rewards • Equality (‘you deserve what you get’) vs. Equity (‘you get what you deserve’) vs. Need based decisions (‘to all according to their needs’) 23 Cross-Cultural Management
  • 24. Conformity • Cross–cultural variations in tendency to accept group pressure for conformity to group norms – Japanese encourage high conformity to norms of a group that has the person's primary loyalty – German students (in some experimental research) showed a lower tendency to conform – Moderate conformity among people in Hong Kong, Brazil, Lebanon, and the United States 24 Cross-Cultural Management
  • 25. Teams’ Cultural Composition •Cultural Diversity: the number of different cultures represented in the group; •Cultural Norms: the orientations of the specific cultures represented in the group toward group dynamics and processes; and •Relative Cultural Distance: the extent to which group members are culturally different from each other 25 Cross-Cultural Management
  • 26. Surface and Deep Diversity In multicultural teams, diversity can be in the form of: • Surface-level (black-American; Caucasian- American; French and Vietnamese) and/or • Deep-level (Irish and English; Singaporean and Chinese; N. and S. Africans) 26 Cross-Cultural Management
  • 27. Dynamics of Team Diversity Social Context Org. Context Group Dynamics Affective Team Long-term Diversity Reactions Behaviours Conseq. •Surface •Cohesion •Communication •Performance •Deep •Satisfaction •Conflict •Promotion •Commitment •Cooperation •Turnover 27 Cross-Cultural Management
  • 28. Jackson, Joshi & Erhardt (2003) • Surface-level diversity has more immediate impact and is influential in early-stage/newly formed teams while deep-level becomes more important over time and its effects last longer. • Diversity, in general, and cultural/ethnic diversity in particular, have mixed effects on team processes and performance; • Less effect on simpler, motor-based tasks; more effect on complex, interdependent teamwork 28 Cross-Cultural Management
  • 29. Earley & Mosakowski (2000) • Studied effects of heterogeneity in transnational teams using experimental and field settings • Reasoned that the effects of national heterogeneity on team performance is non-linear; • Found that in the early stages, homogenous teams (those with only one major national group identity) outperformed both moderately heterogeneous (groups with two different sub- group identities) and highly heterogeneous (no clear sub-group identities exist) teams. 29 Cross-Cultural Management
  • 30. Earley & Mosakowski (2000) • In the longer term, high-heterogeneous teams’ performance increased as they managed to create a hybrid-culture; • Such hybrid culture was not created in moderately heterogeneous teams, whose performance was lower than both high and low heterogeneity teams. Team processes mediated the effects of heterogeneity on team performance, such that: • In homogenous groups, members perceived many similarities between themselves (remember SIT?); trust, shared mental models and open communication developed early on in the team’s life 30 Cross-Cultural Management
  • 31. Earley & Mosakowski (2000) • In moderately heterogeneous teams, a dynamic of ‘us vs. them’ prevailed, with the two sub-groups sticking to themselves in times of conflict, resulting in little cross sub-group cooperation; • In highly heterogeneous teams, as time passed, members go to know each other better and since there were no dominant sub-groups, they were free to form a ‘hybrid culture’-unique to their team and overarching each members’ national identity. • Implications for joint ventures and projects where two cultures (national or organizational) get together to try to create a cooperative structure 31 Cross-Cultural Management
  • 32. Diversity and Teams • Overall, diversity causes process losses • Can be beneficial if team overcomes these losses over time • Depends on organizational culture and top- management support • Highly heterogeneous and highly homogenous teams work better than mid-range ones • Fault lines in teams lead to rivalry coalitions => decrease effectiveness 32 Cross-Cultural Management
  • 33. Conditions for Effectiveness More Effective Less Effective Task Innovative Routine Stage Divergence (earlier) Convergence (later) Conditions Differences Recognized Differences Ignore Task-based member Culture-base members selection selection Pluralism Ethnocentrism Equal Power Cultural Dominance Superordinate goals Individual goals External feedback No feedback/autonomy 33 Cross-Cultural Management
  • 34. Some Implications • Investment in diverse teams is more sensible for the longer-term, for complex tasks and when team members are (relatively) pluralistic • More careful task design is needed • Positive feedback, early on • Preparation and training, through conceptual and experiential approaches is recommended • Strive to create a third culture through superordinate goals and neutralization of differences 34 Cross-Cultural Management
  • 35. Diversity: Beyond the Obvious • Seemingly culturally similar team members may have the hardest time to get along: need to take into account other variables besides culture (history, class) • Idiosyncratic cultural variables, e.g., intellectual style (Russians vs. N. Americans) • Prior experience with different cultures plays important role (usually for the better) • Virtual Teams: added complexity 35 Cross-Cultural Management
  • 36. Chapter 2(3)-Motivation in a Global Context 36 Cross-Cultural Management
  • 37. Introduction to Motivation Motivation Psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives The Basic Motivation Process Unsatisfied Drive toward goal to Attainment of goal need satisfy need (need satisfaction) 37 Cross-Cultural Management
  • 38. Introduction to Motivation • Need Theories • Cognitive theories – Expectancy theory: describes internal processes of choice among different behaviors – Equity theory: describes how and why people react when they feel unfairly treated – Goal setting theory: focuses on how to set goals for people to reach • Behavioral theory – Behavior modification: focuses on observable behavior, not internal psychological processes 38 Cross-Cultural Management
  • 39. Basic Assumptions • The Universalist Assumption – All people are motivated to pursue goals they value – Specific content of the goals that are pursued will be influenced by culture – Movement toward market economies may make motivation more similar in different countries 39 Cross-Cultural Management
  • 40. Motivation Theories Are Culture Bound Hierarchy Need for of Needs Achievement Goal-Setting Theory 40 Cross-Cultural Management
  • 41. Attitudes and Personality • Personality characteristics – People in individualistic cultures (United States) have stronger need for autonomy than people in group–oriented cultures (Japan) – People in cultures that emphasize avoiding uncertainty (Belgium, Peru) have stronger need for security than people in cultures that are less concerned about avoiding uncertainty (Singapore, Ireland) 41 Cross-Cultural Management
  • 42. Need Theories of Motivation • Concept of needs holds across cultures • People from different cultures may express and satisfy needs differently • Importance of needs in Maslow's need hierarchy – United States: self–actualization – Latin America: security, affiliation – France and Germany: need for security – New Zealand: belongingness and love • McClelland: needs for affiliation, power and achievement 42 Cross-Cultural Management
  • 43. International Aspects of Job Design • Herzberg: Two Factor Theory • Individual and group–based job design – U.S. managers have mostly used individual approaches to job design – Recent shifts to group–based approaches – Managers in other industrialized countries have mainly emphasized group–based job design 43 Cross-Cultural Management
  • 44. Job Design (Cont.) • Changing specific job characteristics – Belgium, Mexico, Greece, Thailand: not likely to accept efforts to increase autonomy and task identity – French managers particularly dislike recommendations to decentralize decision authority. Subordinates do not expect them to do so – Quality circles: big success in Japan, but only partial in the US 44 Cross-Cultural Management
  • 45. Cognitive and Behavioral Theories of Motivation • Two assumptions that could restrict use of these theories outside the U.S. – Individual controls decisions about future actions – Manager can deliberately shape the behavior of people 45 Cross-Cultural Management
  • 46. Cognitive and Behavioral Theories of Motivation • Both assumptions reflect U.S. values of free will, individualism, individual control • Cultural contrasts – Muslim managers believe something happens mainly because God wills it to happen – Hong Kong Chinese believe luck plays a role in all events 46 Cross-Cultural Management
  • 47. Cognitive and Behavioral Theories • Expectancy theory's validity in other cultures – Japanese female life insurance sales representatives responded to commission system as expected – Russian textile workers • Linked valued extrinsic rewards to worker performance • Productivity increased as the theory predicts • Generally, expectancy theory best explains motivation of people in cultures that emphasize internal attribution 47 Cross-Cultural Management
  • 48. Cognitive and Behavioral Theories (Cont.) • Equity theory: complex cross–cultural effects – Reward allocation decisions followed equity theory premises in U.S., Russian, and Chinese samples – Other studies • Chinese emphasized seniority in their reward decisions more than Americans. • Eastern European transition economies: endorsed positive inequity more than American students 48 Cross-Cultural Management
  • 49. Culture & Motivation • Research on goal setting theory in several countries • Results consistent with U.S. work that formulated the theory • Some cultural differences – U.S. students not affected by how goals were set – Israeli students performed better when goals were set participatively; consistent with culture of cooperation 49 Cross-Cultural Management
  • 50. Idiosyncratic Factors Beyond cultures’ variance along the major cultural value dimensions, there are specific aspects anchored in nation’s history and expressed through its symbols and language. Ignoring such factors may render motivational techniques ineffective or even result in de-motivation; e.g.: Slay the Dragon!! 50 Cross-Cultural Management
  • 51. Chap 2(4)- Decision Making across Cultures 51 Cross-Cultural Management
  • 52. Decision Making Process of choosing a course of action among alternatives 52 Cross-Cultural Management
  • 53. Various Factors * Time Orientation • Deciding for the short/long term? • How long to make a decision? • Polichronic or monochronic style? * Who decides: Groups vs. Individuals * Voting vs. Consensus based decisions * Process: Participative vs. Autocratic 53 Cross-Cultural Management
  • 54. Value of Rationality Strong preference for rational D.M. vs. Occasional or low value on rationality; In some cultures more emphasis on: • Emotions • Religion • Ideology 54 Cross-Cultural Management
  • 55. Rational Decision Making The Rational Approach assumes that – Managers follow a systematic, step-by-step process. – Organization is economically based and is managed by decision makers who are entirely objective and have complete information. It assumes that rational choices are: • Consistent • Value-maximizing • Within specified constraints 55 Cross-Cultural Management
  • 56. The Six-Step Rational Decision-Making Model 1. Define the problem 2. Identify decision criteria 3. Weight the criteria 4. Generate alternatives 5. Rate each alternative on each criterion 6. Compute the optimal decision 56 Cross-Cultural Management
  • 57. Cultural Contingencies in Decision Making Step 1. Problem Problem solving; change Situation acceptance Recognition 2. Information Search Gathering facts Gathering ideas and possibilities 3. Construction of New, future oriented Past/present/future Alternatives based on change based on stability 4. Choice Individual level; Group level; by senior delegation of management; slowly responsibility; fast 5. Implementation Slow; top-down Fast; broad participation 57 Cross-Cultural Management
  • 58. Case Study: The Road to Hell (p. 512) • What mistakes did John Baker Made? Why did he not realize his mistake when it occurred? • What would you recommend that Baker do now? • What do you learn from this case about human resource management across different nations? 58 Cross-Cultural Management
  • 59. Stages of Moral Development Stage Level Description 6. Following self-chosen ethical principles, even if they Principled violate the law 5. Valuing rights of others; upholding non-relative values and rights regardless of the majority’s opinion 4. Maintaining conventional order by Conventional fulfilling obligations to which you have agreed 3. Living up to what is expected by people close to you 2. Following rules only when it’s in your immediate interest Pre-conventional 1. Sticking to rules to avoid physical punishment Adapted from L. Kohlberg, “Moral Stages and Moralization: The Cognitive-Developmental approach,” pages 34-55 in Moral Develop and Behavior: Theory, Research, and Social Issues, ed. T. Lickona (New York: Holt, Rinehart & Winston, 1976). 59 Cross-Cultural Management
  • 60. Three Different Criteria in Making Ethical Choices • Utilitarian Criterion - made solely on basis of outcomes or consequences • Focus on Rights - made consistently with fundamental liberties and privileges • Focus on Justice - requires imposing and enforcing rules fairly and impartially for equitable distribution of benefits and costs 60 Cross-Cultural Management
  • 61. Ethical Aspects of Decisions • Multinational firms face many ethical questions and issues • Operate in many countries; subject to the laws of those countries • Legal and social context of globally oriented organizations can present their managers with ethical dilemmas 61 Cross-Cultural Management
  • 62. Ethical Aspects of Decisions Two ethical views Cultural Ethical relativism Multinational realism organization 62 Cross-Cultural Management
  • 63. Ethical Aspects of Decisions Ethical views: • Cultural relativism • Cultural relativism refers to differences in ethical values among different cultures • Premise: right and wrong should be decided by each society's predominant ethical values • Cultural relativists base their argument on three points 63 Cross-Cultural Management
  • 64. Ethical Aspects of Decisions - Cultural relativism (cont.) • Three points – Moral judgments are statements of feelings and opinions; neither wrong nor right – Moral judgments are based on local ethical systems; cannot judge right or wrong across cultures – Prudent approach: do not claim an action is either right or wrong 64 Cross-Cultural Management
  • 65. Ethical Aspects of Decisions - Cultural relativism (cont.) • Managers should behave according to local ethical systems, even if behavior violates home country ethical system • Many philosophers reject cultural relativism's argument that codes of ethics cannot cross national boundaries • Agree that countries vary in defining right and wrong 65 Cross-Cultural Management
  • 66. Ethical Aspects of Decisions – Ethical realism • Morality does not apply to international transactions • Because no power rules over international events, people will not behave morally • Because others will not behave morally, one is not morally required to behave ethically 66 Cross-Cultural Management
  • 67. Ethical Aspects of Decisions • International ethical dilemmas – Goods made in a country with no child labor laws – Goods made in a country with child labor laws that are not enforced – Changing the behavior of local people – Making small payments that are allowed under the company’s national law 67 Cross-Cultural Management
  • 68. Chapter 2(5)-Leadership 68 Cross-Cultural Management
  • 69. Definitions There are almost as many definitions of leadership as there are theories…some of the more common ones are: • Ability to influence a group toward the achievement of goals. • The process whereby one individual influences other group members towards the attainment of defined group or organisational goals. • The process of creating vision for others and having the power to translate it into a reality and sustain it. 69 Cross-Cultural Management
  • 70. Foundation for Leadership Leadership Behaviors and Styles The use of work-centered behavior Authoritarian designed to ensure task Leadership accomplishment. The use of work-centered behavior Paternalistic coupled with a protective employee Leadership centered concern. The use of both work- or task- Participative centered and people centered Leadership approaches to leading subordinates. 70 Cross-Cultural Management
  • 71. Leader–Subordinate Interactions Authoritarian Leader Subordinate Subordinate Subordinate One-way downward flow of information and influence from authoritarian leader to subordinates. 71 Cross-Cultural Management
  • 72. Leader–Subordinate Interactions Paternalistic Leader Subordinate Subordinate Subordinate Continual interaction and exchange of information and influence between leader and subordinates. 72 Cross-Cultural Management
  • 73. Leader–Subordinate Interactions Participative Leader Subordinate Subordinate Subordinate Continual interaction and exchange of information and influence between leader and subordinates. 73 Cross-Cultural Management
  • 74. Contingency Theories • Leaders use various leadership styles/behaviours; • Quality of leadership experience depends on several situational factors, including followers and task type. • Path-Goal Model - Leader assists followers in attaining goals and ensures goals are compatible with overall objectives 74 Cross-Cultural Management
  • 75. Path-Goal Theory A theory of leadership suggesting that subordinates will be motivated by a leader only to the extent they perceive this individual as helping them to attain valued goals. 75 Cross-Cultural Management
  • 76. Path-Goal Theory  Four basic leadership styles: • Instrumental (directive): An approach focused on providing specific guidance and establishing work schedules and rules. • Supportive: A style focused on establishing good relations with subordinates and satisfying their needs. • Participative: A pattern in which the leader consults with subordinates, permitting them to participate in decisions. • Achievement Oriented: An approach in which the leader sets challenging goals and seeks improvements in performance. 76 Cross-Cultural Management
  • 77. Path-Goal Theory Environmental contingency factors • Task structure • Formal authority system • Work group Leader behavior • Directive Outcomes • Supportive • Performance • Participative • Satisfaction • Achievement oriented Subordinate contingency factors • Locus of control • Experience • Perceived ability 77 Cross-Cultural Management
  • 78. Leadership Core values of country’s culture often define type of leadership behavior that is acceptable – In high PD, an emphasis on hierarchical relationships—directive approaches accepted; Hong Kong, Latin American countries; Russia – In low PD, hierarchical relationships are not valued —supportive (or participative) approaches accepted; Austria, Scandinavia, Israel 78 Cross-Cultural Management
  • 79. Leadership Individualism-Collectivism • Leader as a paternal figure vs. leader as an expert • Degree to which intervention of leader in follower’s private lives is expected and accepted Masculine/Feminine • Acceptance of women as leaders • Accepted style for leaders Long-Term-Orientation • Elect leaders for four years…or forty? Leader’s style: first among equals (China) or class of its own (Arab Countries) 79 Cross-Cultural Management
  • 80. GLOBE Project • Multi-country study and evaluation of cultural attributes and leadership behavior • Are transformational characteristics of leadership universally endorsed? • 170 country co-investigators • 65 different cultures • 17,500 middle managers • 800 organizations 80 Cross-Cultural Management
  • 81. GLOBE Project • Which traits are universally viewed as impediments to leadership effectiveness? • Based on beliefs that – Certain attributes that distinguish one culture from others can be used to predict the most suitable, effective and acceptable organizational and leader practices within that culture – Societal culture has direct impact on organizational culture – Leader acceptance stems from tying leader attributes and behaviors to subordinate norms 81 Cross-Cultural Management
  • 82. GLOBE Cultural Variable Results Variable Highest Medium Lowest Ranking Ranking Ranking Assertiveness Spain, U.S. Egypt, IrelandSweden, New Zealand Future orientation Denmark, CanadaSlovenia, Egypt Russia, Argentina Gender differentiation South Korea, Italy, Brazil Sweden Denmark Egypt Uncertainty avoidance Austria, Denmark Israel, U.S. Russia, Hungary Power distance Russia, Spain England, France Demark, Netherlands Collectivism/Societal Denmark, Hong Kong, U.S. Greece, Hungary Singapore In-group collectivism Egypt, China England, France Denmark, Netherlands Performance orientation U.S., Taiwan Sweden, Israel Russia, Argentina Humane orientation Indonesia, Egypt Hong Kong, Germany, Spain Sweden 82 Cross-Cultural Management
  • 83. Universal Leadership Attributes Positive Negative • Trustworthy • Loner • Just • Non-Cooperative • Honest • Ruthless • Charisma • Non-explicit • Inspiration & Vision • Irritable • Team-Orientation • Dictatorial • Excellence-Oriented • Decisive • Intelligent 83 Cross-Cultural Management
  • 84. Leadership and Management Need to bear in mind that leadership style is very much situation dependent: for example, in some situations (e.g., emergency) and in some organizational cultures, directive style will be accepted even in a country like the US; Participation is more likely if the basis of power is more achievement based (instrumental) than if it is ascribed (personal) and Degree of participation in decision making and leadership by subordinates vary cross-nationally 84 Cross-Cultural Management
  • 85. Leadership in the International Context Attitudes of European European managers tend to use a participative approach. Managers Toward Researchers investigated four Leadership Practices areas relevant to leadership. Does the leader believe that employees Capacity for Leadership prefer to be directed and have little and Initiative ambition? (Theory X) OR Does the leader believe that characteristics such as initiative can be acquired by most people regardless of their inborn traits and abilities? (Theory Y) 85 Cross-Cultural Management
  • 86. Leadership in the International Context Attitudes of European Most evidence indicates European managers tend to use a participative Managers Toward approach. Researchers investigated Leadership Practices four areas relevant to leadership. Capacity for Leadership Does the leader believe that detailed, complete instructions should be given to and Initiative subordinates and that subordinates need only this information to do their jobs? Sharing Information OR Does the leader believe that general and Objectives directions are sufficient and that subordinates can use their initiative in working out the details? 86 Cross-Cultural Management
  • 87. Leadership in the International Context Attitudes of European Most evidence indicates European managers tend to use a participative Managers Toward approach. Researchers investigated Leadership Practices four areas relevant to leadership. Does the leader support participative Capacity for Leadership leadership practices? and Initiative Sharing Information and Objectives Participation 87 Cross-Cultural Management
  • 88. Leadership in the International Context Attitudes of European Most evidence indicates European managers tend to use a participative Managers Toward approach. Researchers investigated Leadership Practices four areas relevant to leadership. Capacity for Leadership Does the leader believe that the and Initiative most effective way to control employees is through rewards Sharing Information and punishment? and Objectives OR Does the leader believe that Participation employees respond best to internally generated control? Internal Control 88 Cross-Cultural Management
  • 89. Japanese vs. U.S. Leadership Styles Dimension Japan US Employment Often for life Often short-term Evaluation Slow, takes many years Fast: those not promoted often leave Career Paths Very general; based on v. specialised; people stay rotations in one area Dec. Making Group based By individual managers Control Mech. Implicit & informal; Explicit; based on reliance on trust and knowing the control goodwill mechanisms Responsibility Shared collectively Assigned individually Concern for Broad and covers the limited to work-life employees whole life 89 Cross-Cultural Management
  • 90. Differences in Middle Eastern and Western Management 90 Cross-Cultural Management
  • 91. Differences in Middle Eastern and Western Management 91 Cross-Cultural Management
  • 92. Leadership-Other Issues • Emphasis on Emotional Intelligence is especially important for leading cross- culturally • Idiosyncratic effects & paradoxes: – Moderately masculine Muslim and Hindu nations with traditional views on women… but, – Israel, India, Pakistan and other exceptions • Charismatic leadership is not universally accepted 92 Cross-Cultural Management
  • 93. Chapter 2(6)-GLOBAL HUMAN RESOURCES 93 Cross-Cultural Management
  • 94. HR Challenges of International Business Researchers asked “What are the key global pressures affecting human resource management practices in your firm currently and for the projected future?” Responses were: • Deployment • Knowledge and innovation dissemination • Identifying and developing talent globally 94 Cross-Cultural Management
  • 95. Global Staffing Pressures – Candidate selections – Assignment terms – Relocation – Immigration – Culture and language – Compensation – Tax administration – Handling spouse and dependent matters 95 Cross-Cultural Management
  • 96. Economic Differences Translate into differences in HR practices: • Espousing ideals of free enterprise • Wage costs vary • Other labor costs vary: severance pay; holidays 96 Cross-Cultural Management
  • 97. International Labor Relations Union membership varies widely worldwide 29% 80% 24% 39% 44% 14% 39% 23% 97 Cross-Cultural Management
  • 98. International Staffing Multinational corporations (MNC’s) use several types of international managers: – Locals – Expatriates • Home-country nationals • Third-country nationals 98 Cross-Cultural Management
  • 99. Sources of Human Resources Home Country Nationals – Expatriate managers who are citizens of the country where the MNC is headquartered • Expatriates – Those who live and work away from their home country – Citizens of the country where the MNC is headquartered • Expatriates are useful for: – starting up operations – providing technical expertise – helping the MNC maintain financial control over the operation • Expatriates almost always were men – Situation is changing • Expatriates typically used in top management positions 99 Cross-Cultural Management
  • 100. Sources of Human Resources • Host-Country Nationals – Local managers who are hired by the MNC – Used in middle- and lower-level management positions – Nativization • Requirement of host-country government that mandates employment of host-country nationals 100 Cross-Cultural Management
  • 101. Sources of Human Resources • Third-Country Nationals (TCNs) – Citizens of countries other than the one in which the MNC is headquartered or the one in which the managers are assigned to work by the MNC – Found in MNCs that have progressed through the initial and middle stages of internationalization 101 Cross-Cultural Management
  • 102. Sources of Human Resources – Advantages of using TCNs • Require less compensation • Good working knowledge of the region • Given home office experience, often can achieve objectives better than other types of managers • Offer different perspectives 102 Cross-Cultural Management
  • 103. Failure Rates of International Assignments International assignment failure can cost hundreds of thousands of euros Europe % Failure Japan US 0 20 40 60 103 Cross-Cultural Management
  • 104. Why International Assignments Fail • Personality • Person’s intentions • Family pressures • Lack of cultural skills • Other non-work conditions like living and housing conditions, and health care 104 Cross-Cultural Management
  • 105. Improving Failure Rates/Solutions • Provide realistic previews • Have a careful screening process • Improve orientation • Provide good benefits • Test employees fairly • Shorten assignment length 105 Cross-Cultural Management
  • 106. Important Predictors of Success • Family situation tops the list • Flexibility/adaptability screening was high on results • Use paper and pencil tests like the Overseas Assignment Inventory • Previewing what changes an international assignee can expect 106 Cross-Cultural Management
  • 107. Selecting International Managers • Test for traits that predict success in adapting to new environments Predictive trait • Job knowledge and motivation breakdown • Relational skills • Flexibility and adaptability • Extra-cultural openness • Family situation 107 Cross-Cultural Management
  • 108. Traits Distinguishing Successful International Executives SCALE SAMPLE ITEM Sensitive to Cultural Differences When working with people from other cultures, works hard to understand their perspectives. Business Knowledge Has a solid understanding of our products and services. Courage to Take a Stand Is willing to take a stand on issues. Brings Out the Best in People Has a special talent for dealing with people. Acts with Integrity Can be depended on to tell the truth regardless of Is Insightful circumstances. Is good at identifying the most important part of a Is Committed to Success complex problem or issue. Clearly demonstrates commitment to seeing the Takes Risks organization succeed. Uses Feedback Takes personal as well as business risks. Is Culturally Adventurous Has changed as a result of feedback. Enjoys the challenge of working in countries other than Seeks Opportunities to Learn his/her own. Is Open to Criticism Takes advantage of opportunities to do new things. Seeks Feedback Appears brittle—as if criticism might cause him/her to Is Flexible break.* Pursues feedback even when others are reluctant to give in. *Reverse scored Doesn’t get so invested in things that she/he cannot change when something doesn’t work. 108 Cross-Cultural Management
  • 109. Performance Appraisal of International Mangers Five suggestions for improving the expatriate appraisal process: 1. Stipulate the assignment’s difficulty level. For example, being an expatriate manager in China is generally considered more difficult than working in England, and the appraisal should take such difficulty- level differences into account. 2. Weight the evaluation more toward the on-site manager’s appraisal than toward the home-site manager’s distant perceptions of the employee’s performance. 109 Cross-Cultural Management
  • 110. Performance Appraisal of International Mangers • 3. If however (as is usually the case), the home-site manager does the actual • written appraisal, have him or her use a former expatriate from the same • overseas location to provide background advice during the appraisal process. • 4. Modify the normal performance criteria used for that particular position to • fit the overseas position and characteristics of that particular locale. • 5. Attempt to give the expatriate manager credit for his or her insights into • the functioning of the operation and specifically the interdependencies • of the domestic and foreign operations. 110 Cross-Cultural Management
  • 111. The New Workplace: Sending Women Abroad • In the US, only 6% filled overseas positions compared to 49% domestic • One survey found inaccurate stereotypes: – Not as internationally mobile – Might have a tougher time building teams 111 Cross-Cultural Management
  • 112. Performance Appraisal of International Mangers Five suggestions for improving the expatriate appraisal process: 1. Stipulate the assignment’s difficulty level. For example, being an expatriate manager in China is generally considered more difficult than working in England, and the appraisal should take such difficulty- level differences into account. 2. Weight the evaluation more toward the on-site manager’s appraisal than toward the home-site manager’s distant perceptions of the employee’s performance. 112 Cross-Cultural Management
  • 113. Performance Appraisal of International Mangers • 3. If however (as is usually the case), the home-site manager does the actual • written appraisal, have him or her use a former expatriate from the same • overseas location to provide background advice during the appraisal process. • 4. Modify the normal performance criteria used for that particular position to • fit the overseas position and characteristics of that particular locale. • 5. Attempt to give the expatriate manager credit for his or her insights into • the functioning of the operation and specifically the interdependencies • of the domestic and foreign operations. 113 Cross-Cultural Management
  • 114. Culture Shock! Shock!M • Disorientation upon entering a new cultural environment • Normal use of own cultural filter fails – interpretation of perceptions – communication of intentions • All people experience culture shock... Past experience and training can shorten its length 114 Cross-Cultural Management
  • 115. Culture Shock: Responses – Gone native (assimilation): accepts the new... rejects own – Participator (integration): adapts to the new ... but retains own – Tourist (separation): avoids the new... – Outcast (marginalization): won’t/can’t adapt... rejects own... 115 Cross-Cultural Management
  • 116. Phases • Honeymoon – euphoria, unrealistically positive attitudes towards host country, stay in hotel shields from mundane difficulties, house hunting/school hunting exciting, sightseeing!! • Irritation and Hostility (the crisis stage) – problems adjusting at work, local clocks don't fit yours, difficulties getting the routine daily tasks done, everything stinks; some never recover 116 Cross-Cultural Management
  • 117. Symptoms – homesickness – boredom – withdrawal (reading is an obsession, focus on home nationals, avoid host nationals) – excessive sleep need, compulsive eating and drinking – irritability – exaggerated cleanliness 117 Cross-Cultural Management
  • 118. Symptoms (cont.) – marital stress, family tension, conflict – stereotyping host nationals – hostility towards host nationals – loss of ability to work effectively – fits of weeping – psychosomatic illnesses 118 Cross-Cultural Management
  • 119. Phases • Gradual Adjustment – can manage, cope with situation now • Biculturalism/Coping – ability to function in both cultures, acceptance of local customs and values for what they are (not going native), possible to get by, positive and growth gaining experience 119 Cross-Cultural Management
  • 120. Nature of Culture Shock • Not a jolt, rather a series of cumulative experiences • Cultural differences become focus of attention • Foreign ways are quaint no more... they seem inferior to your own 120 Cross-Cultural Management
  • 121. What Special Training Do Overseas Candidates Need? • Impact of cultural differences • Understanding attitude formation • Factual knowledge about target country • Language and adjustment/adaptability skills 121 Cross-Cultural Management
  • 122. Four Step Approach to Training Overseas Candidates Level 1 training focuses on the impact of cultural v differences, and on raising trainees’ awareness of such differences and their impact on business outcomes. vLevel 2 training aims at getting participants to understand how attitudes (both negative and positive) are formed and how they influence behavior. vLevel 3 training provides factual knowledge about the target country. vLevel 4 training provides skill building in areas like language and adjustment and adaptation skills. 122 Cross-Cultural Management
  • 123. Cross-Cultural Training Training Training Month Time Rigor Hig Immersion s Approach h Assessment Field experience Simulations Affective Sensitivity Approach training Week Culture assimilator Language: training “intensive” s Informatio Role-playing Cases n Giving Stress reduction Geographic training briefings Cultural Briefings Cultural Briefings Language: “Moderate” Day(s) Films/Books Interpreters Low Language: Length of “Survival” Assignment Weeks Months Years 123 Cross-Cultural Management
  • 124. Repatriation of Expatriates • Repatriation – Return to one’s home country from an overseas management assignment • Reasons for returning – Formally agreed-on tour of duty is over – Expats want their children educated in the home country – Unhappiness with foreign assignment – Failure to perform well • Readjustment problems – Permanent position upon return constitutes a demotion – Lack opportunity to use skills learned abroad upon return – Salary and benefits may decrease upon return 124 Cross-Cultural Management
  • 125. Repatriation Problems • Leaving the firm prematurely • Mediocre or makeshift jobs • Finding former colleagues promoted • Reverse culture shock 125 Cross-Cultural Management
  • 126. Repatriation Several steps can be taken to avoid repatriation problems: vWrite repatriation agreements vShorten Assignment periods vAssign a sponsor vProvide career counseling vKeep communications open vOffer financial support vDevelop reorientation programs vBuild in return trips 126 Cross-Cultural Management

Hinweis der Redaktion

  1. As I mentioned earlier, people look to different groups for direction when they are confused: it is important to recognize that they look to global businesses for direction — this is a new role of business.
  2. The Planet Project and the Roper Poll of Values Polls that report public opinion are not as rigorous as studies reported above. Nevertheless, they provide some insight about worldwide beliefs. In 2000, Minnesota Manufacturing and Mining (3M) initiated the Planet Project, an interactive Internet-based poll to which hundreds of thousands of people worldwide responded. Volunteers also conducted face-to-face interviews in 115 nations to include opinions from those who are not Internet connected. Findings thus far show that people around the world are very concerned about their self-image and with projecting a youthful appearance. A surprising finding is that the more educated a person is, the more likely a belief in God (Johnson, 2001). Roper Starch Worldwide also asked 30,000 people worldwide to rank 57 personal values in order of importance. Of the top five values overall, protecting the family was first, followed by honesty, health and fitness, self-esteem and self - reliance. Other values rated highly were freedom, stable relationships, and faith (World T rends, 2001). Faith was ranked most highly in nations that are predominately Muslim, e.g., Indonesia, Egypt, and Saudi Arabia. The World Values Survey Introduced in 1981 the World Values Survey examines the values of 65 societies (Ingelhart and Baker, 2000) or about 80 percent of the world's population. Results show that economic development has a powerful relationship with cultural values. That is, people from low-income societies differ significantly from those in high-income countries on two dimensions: traditional vs. secular-rational values and survival vs. self-expression values.
  3. Details on the GLOBE project are in Chapter 14 . 160 social scientists and management scholars from 62 cultures representing all major regions throughout the world are engaged in this long-term programmatic series of cross-cultural leadership studies. GLOBE is a multi-method multi-phase research program designed to test a cross-level integrated theory of the relationship between culture and leadership effectiveness. They looked at 62 cultures, grouping them by similarities, e.g., Anglo (this included white S. Africa), Latin Ameican, Latin Europe (French speaking Switzerland), Southern Asia, Germanic Europe, and the Middle East. Over 17 , 000 middle managers from over 900 corporations in food processing, finance, and telecommunications industries in 62 cultures participated in GLOBE surveys. GLOBE measures both cultural practices (as is) and cultural values (should be). Project GLOBE is a multi-method multi-phase research program to test relationships between culture and leadership effectiveness. Over 160 social scientists and management scholars participate in this series of studies. By 2004, researchers had gathered information from over 17,000 middle managers from more than 900 corporations in food processing, finance, and telecommunications industries in 62 cultures. These managers answered questions according to both cultural practices (as is) and cultural values (should be). Results published in the first comprehensive report on GLOBE (House et al., 2004) reflect variations in management practices worldwide. However, when asked to indicate what “ should be, ” respondents showed convergent views. For example, on gender egalitarianism — the degree to which a collective minimizes gender inequality — managers indicated that gender inequalities should be far less than now practiced. Similarly on humane orientation — the degree to which a collective encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others — the mean score on practices was a full point lower than the mean score on what “ should be ” practiced. These results suggest that current practices among managers are divergent cross-culturally, but values may be converging. A premise to be tested in later phases of the GLOBE project is the extent to which effectiveness is a function of the interaction between leader attributes and organizational contingencies (House et al., 2002).
  4. I believe that national cultures will endure, but that global cultures will emerge alongside them. In particular, I think there will some day be a global business culture — we see that developing now with global rules of conduct, global rules of trade (WTO), global approaches to environmental use, etc.
  5. Groups are not unorganized; rather, they have a structure that shapes the behavior of their members. When we play a role , we engage in a set of expected behavior patterns that are attributed to occupying a given position in a social unit. Based on role research, we can conclude the following: (1) People play multiple roles. (2) People learn roles from the stimuli around them. (3) People shift roles rapidly according to situational demands. (4) People experience conflict when one role contradicts another. Acceptable standards of group behavior that are shared by the group ’ s members are called norms . When accepted by the group, norms influence the group ’ s behavior with a minimum of external controls. Groups will exert pressure upon members to bring their behavior into conformity with the standards of the group. Since members desire acceptance by the group, they are susceptible to these conformity pressures. Solomon Asch ’ s classic study demonstrated the following: People desire to be one of the group and to avoid being different, so they feel pressure to conform.
  6. Most theories of motivation were developed in the United States by Americans and about Americans. Maslow ’ s hierarchy of needs argues that people start at the physiological level and move up the hierarchy in this order: physiological, safety, social, esteem, and self-actualization. This hierarchy aligns with American culture. In cultures where uncertainty avoidance characteristics are strong, security needs would be on top of the hierarchy. In cultures that score high on quality-of-life needs, social needs would be on top. The view that high achievement acts as an internal motivator presupposes two cultural characteristics: a willingness to accept a moderate degree of risk and a concern with performance. This combination is prevalent in Anglo American countries. Yet these characteristics are relatively absent in countries such as Chile or Portugal. Goal-setting theory is also culture bound. Its key components align reasonably well with U.S. culture. It assumes that subordinates will be reasonably independent, that managers and subordinates will seek challenging goals, and that performance is considered important by both. Goal-setting theory is not likely to increase motivation in countries in which the opposite conditions exist, such as Chile, France, and Portugal.
  7. Page 465 Deployment: Easily getting right skills where needed regardless of geographic location. Knowledge and innovation dissemination : Spreading state-of-the-art knowledge and practices throughout the organization regardless of where they originate. Identifying and developing talent on a global basis : Identifying who can function effectively in a global organization and developing his or her abilities .
  8. Page 466 Dealing with global staffing pressures like these is quite complex. For example, it involves addressing, on a global basis, activities including candidate selections, assignment terms and documentation; relocation processing and vendor management; immigration processing; cultural and language orientation and training; compensation administration and payroll processing; tax administration; career planning and development; and handling of spouse and dependent matters.
  9. Page 467 Shown are hourly wages for production workers (converted into US dollars). There are other labor costs to consider. For example, there are wide gaps in hours worked. Portuguese workers average about 1,980 hours of work annually, while German workers average 1,648 hours. Several European countries, including the United Kingdom and Germany, require substantial severance pay to departing employees, usually equal to at least two years’ service in the United Kingdom and one year’s in Germany.19 Compared to the usual two or three weeks of U.S. vacation, workers in France can expect two days of paid holiday per full month of service per year, Italians usually get between four and six weeks off per year, and Germans get 18 working days per year after six months of service.
  10. Page 477 Firms opening subsidiaries abroad will find substantial differences in labor relations practices among the world’s countries and regions. This is important; remember that while union membership as a percentage of wage and salary earners is dropping in the U.S., it is still relatively high in most countries compared with the United States’ 14%: for example, Brazil, 44%; Argentina, 39%; Germany, 29%; Denmark, 80%; Japan, 24%; Egypt, 39%; and Israel, 23%.
  11. Page 469 Locals are citizens of the countries in which they work. Expatriates are non-citizens of the countries in which they ’ re working. Home-country nationals are citizens of the country in which the multinational corporation has its headquarters. Third-country nationals are citizens of a country other than the parent or host country; e.g., a British executive in the Tokyo branch of a US multinational bank.
  12. Page 468 Shown are the maximum failures of a country or region for international assignments International assignments are the heart of international HR, and it ’ s therefore disconcerting to see how often such assignments fail. U.S. expatriates ’ assignments that end early (the failure rate) range from 16% to 50%, and the direct costs of each such failure can reach hundreds of thousands of dollars or more. European and Japanese multinationals reported lower failure rates, with only about one-sixth of Japanese multinationals and 3% of European multinationals reporting more than a 10% expatriate recall rate.
  13. Page 469 Discovering why such assignments fail is therefore an important research task, and experts have made considerable progress. Personality is one factor. For example, in a study of 143 expatriate employees, extroverted, agreeable, and emotionally stable individuals were less likely to want to leave early. And the person ’ s intentions are important: For example, people who want expatriate careers try harder to adjust to such a life. Non-work factors like family pressures usually loom large in expatriate failures: In one study, U.S. managers listed, in descending order of importance for leaving early: inability of spouse to adjust, managers ’ inability to adjust, other family problems, managers ’ personal or emotional immaturity, and inability to cope with larger overseas responsibility. Managers of European firms emphasized only the inability of the manager ’ s spouse to adjust as an explanation for the expatriate ’ s failed assignment. Other studies similarly emphasize dissatisfied spouses ’ effects on the international assignment. One expert said: The selection process is fundamentally flawed. . . . Expatriate assignments rarely fail because the person cannot accommodate to the technical demands of the job. The expatriate selections are made by line managers based on technical competence. They fail because of family and personal issues and lack of cultural skills that haven ’ t been part of the process.
  14. Page 469 Failure rates have dropped 9% over the last 10 years by stressing the items listed.
  15. Page 472 Many firms also use paper-and-pencil tests such as the Overseas Assignment Inventory. Based on 12 years of research with more than 7,000 candidates, the test reportedly identifies the characteristics and attitudes international assignment candidates should have. Realistic previews about the problems to expect in the new job (such as mandatory private schooling for the children) as well as about the cultural benefits, problems, and idiosyncrasies of the country are another important part of the screening process. The rule, say some experts, should always be to “spell it all out” ahead of time, as many multinationals do for their international transferees.
  16. Page 472 Selecting managers for these assignments therefore sometimes means testing them for traits that predict success in adapting to new environments. One study asked 338 international assignees from various countries and organizations to specify which traits were important for the success of managers on foreign assignment. The researchers identified five factors that contribute to success in such assignments: job knowledge and motivation, relational skills, flexibility/adaptability, extra-cultural openness, and family situation (spouse’s positive opinion, willingness of spouse to live a broad, and so on; the figure shows some of the specific items that make up each of the five factors).
  17. Page 473 While the number and proportion of women managers working domestically has climbed in the past few years, the same isn’t true of those assigned abroad. Women filled only about 6% of the overseas international management positions at major companies, according to one estimate, compared with about 49% of domestic U.S. management positions. Women comprise only about 13% of the total expatriate population, according to another survey. Inaccurate stereotypes may account for much of this discrepancy. For example, a new survey (“Passport to Opportunity: U.S. Women in Global Business”) found that respondents believed women aren’t as internationally mobile as men; yet 80% of female expatriates say they’ve never turned down a relocation assignment, compared with 71% of men. Another myth is that women might have a tougher time building relationships with businesspeople overseas; yet 77% of U.S. women in this survey said they were effective at building business relationships with men abroad. Sending Women Managers Abroad
  18. Page 474 Level 1 training focuses on the impact of cultural differences, and on raising trainees ’ awareness of such differences and their impact on business outcomes. Level 2 aims at getting participants to understand how attitudes (both negative and positive) are formed and how they influence behavior. (For example, unfavorable stereotypes may subconsciously influence how a new manager responds to and treats his or her new foreign subordinates.) Level 3 training provides factual knowledge about the target country, while Level 4 provides skill building in areas like language and adjustment and adaptation skills.
  19. Page 480 Effectively repatriating returning employees is important. Particularly after companies spend hundreds of thousands of dollars helping the person develop international expertise, it ’ s disconcerting to know that perhaps 50% of returnees leave their companies within two years of coming home. expatriates often fear they ’ re “ out of sight, out of mind ” during an extended foreign stay, and such fears are often well founded. Many firms hurriedly assign returning expatriates to mediocre or makeshift jobs. Perhaps more exasperating is discovering that the firm has promoted the expatriate ’ s former colleagues while he or she was overseas. Even the expatriate ’ s family may undergo a sort of reverse culture shock, as they face the task of picking up old friendships and starting new schools, and giving up the perks of the over overseas job, like a company car and driver. Consider one employee ’ s plight. After a 5-year work assignment overseas that entailed much responsibility and a dynamic environment, Scott Fedje returned home to a cubicle, an intellectually non stimulating project, and a whole month to make a single decision. He resigned a few months later.