Management styles around the world

1. Culture, Management Styles and
Business Systems
INTERNATIONAL MARKETING

2. “They are just like us”
Knowledge of management styles
Be flexible by accepting differences in
basic patterns of thinking, religion,
politic and economic structures
Recognize the differences of the
counterpart
• Lack of empathy
• Frustration
• Miscommunication
• Failed business opportunities

3. Required adaptation
Adaptation or accommodation
Tolerance
Affirmative acceptance/
Open tolerance
Empathy

4. Basic criteria for adaptation
1. Open tolerance
2. Flexibility
3. Humility
4. Justice
5. Adjust to tempo
6. Curiosity
7. Knowledge of the country
8. Liking for others
9. Ability to command respect
10. Ability to integrate oneself

5. Degree of adaptation
It’s not about changing executives’
ways to local customs
Being aware of local customs and
accommodate them.
SRC
Not to evaluate counterparts’
behavior but to understand it
Business
customs
• Imperatives
• Electives
• Exclusives

6. Cultural imperatives
Business customs and
expectations that must be
met and conformed to or
avoided if relationships are to
be successful.
Guanxi
Compadre!
Level of trust

7. Cultural electives
Customs that cultural aliens
may wish to conform to or
participate in but that are not
required.
Not important but permissible

8. Cultural exclusives
They are those customs or
behavior patterns reserved
exclusively for the locals and
from which the foreigner is
barred.

9. Business is conducted in different
ways due to diverse structure,
management values, and behaviors
that vary among countries.
Management styles around the world
http://www.kwintessential.co.uk/intercultural/management/guide.html

10. Authority and decision making
Top level management
decisions
• Close ownership
• Absolute control
• Centralized and small
Decentralized
decisions
• Authority at different
levels
Committee decisions
• By group or
consensus.
• Centralized/Decentrali
zed
High PDI
Low PDI

11. Management objectives and aspirations
Human
motivation
Security &
Mobility
Priorities
Personal
life Work for (firm)
Work as
(Position)
Social
acceptance Money or
power?
Political
leaders
Power &
Achievement

12. Communication styles
Face to face communication
Not about translate.
Internet communication
Can be read everywhere at
any time
Silent language
Much more than words
Symbolic meanings of time,
space, things, friendships.

13. Formality and tempo

14. M-Time versus P-Time
Monochronic Time
• One thing at a time.
• Almost tangible.
• Time is money.
Polychronic Time
• Many things at the same
time.
• Great involvement with
people.
• Time is not to be spent.

15. Gender bias in international business
Against female managers in some countries.
Inability for women to succeed abroad.
Be careful with male-dominated societies
where women are not in managerial positions.
Women need a title that give them credibility.

16. Business ethics
Complex process even
within a country
What is corruption?
Definition that varies around the world

17. Bribery
Bribery
Voluntary payment for
seeking unlawful
advantage.
Extortion
Payment demanded by an
authority.
Lubrication
Small sum of cash, gift or
service given to a low
ranking official to speed up
the process.
Subornation
Large sums of money
designed to entice an
official to commit an illegal
act.
Agent’s fees
Payment to a person hired
for representing the
company.

18. Ethical and socially responsible decision
Law

19. Ethical principles
Utilitarian Ethics
• Does the action optimize the
“common good” or benefits
of all constituencies?
Rights of the Parties
• Does the action respect the
rights of the individuals
involved?
Justice or Fairness
• Does the action respect the
canons of justice or fairness
to all parties involved?
Sources: http://www.cpj.ca/content/promoting-common-good, http://www.feasta.org/wp-content/uploads/2014/01/, https://www.humanitarian.com/site-human-rights.html

20. Relationship – Oriented vs. Information –
Oriented Cultures
Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.