MA GLOBAL BUSINESS CORE COURSE IN HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ENVIRONMENT Academic year 2007 - 2008

José Rivera © 2006

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Competencies IHRM
Competencies: learning, practising and assessing , in a global business negotiation and cross cultural environment, how to develop the required skills to:
Separate the people from the problem: Be “unconditionally constructive” on the relationship Focus on global, win-win interests, and not in particular positions Negotiation Skills Invent options for mutual gain: creating and distributing values between all parties Develop objectives criteria to sustained fruitful and long term agreements Recognize cultural diversity as the main Challenge of the Global IHRM Seek to understand and improve the interaction of employees, clients, suppliers, and alliance partners (stakeholders), from different countries and cultures Cross Cultural Skills Assume the compromise to learn from any cross cultural experience and adopt the vision of taking the cultural values into the global strategy

José Rivera © 2006

Build-up competitive advantages based on Global Values & Global Skills

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International Human Resources Management

Cross Cultural Management: Assessing Cross Cultural Skills

Prof. Asociado: José Javier Rivera - j.javier.rivera@uv.es Departamento de Comercialización e Investigación de Mercados Facultad de Economía - Universitat de València

Cross Cultural Management
Contents:
Introduction: Iceberg Model of Culture Cross Cultural Management Cross Cultural Skills The Cultural Model of Global Success Assessing and Practicing Cross Cultural Skills

Iceberg Model of Culture

Iceberg Model of Culture

Culture Below the Surface
Attitudes – “I can’t live without a cell phone” Assumptions – “Only boys can become engineers” Values – “My family is more important than my job” Beliefs – “My purpose in life is …”
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Culture Above the Surface - Examples
Greetings
– How should you greet someone? kiss, bow or shake hands – Does it depend on who they are?

Dress
– What is appropriate attire at work? at a funeral?

Punctuality
– What does it mean to be “on time”? – How quickly should you reply to an e-mail?

Gift giving
– Should you give gifts to business associates? – What should you give?

Corporate Logos
– What projects the “right” image?
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Cross Cultural Management
Technology and Globalisation are rapidly transforming: the way we work, the way we think about work & people the management of global human resources

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Cross Cultural Management Are you a Naïve Local Manager?
THEY behave as they do because it is in their character. WE behave as we do because it is perfectly valid and logical.

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Cross Cultural Management
Or do you plan to be a Global Cultural Manager?

WE & THEY behave as WE do BECAUSE ALL: ….. WE & THEY HAVE Cultural Values.

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What is Culture?
HUMAN NATURE universal to behave & to communicate

CULTURE
How is it appropriate to behave in different situations? How is it appropriate to communicate in different situations? group level construction Culture is: a way of life passed down from one generation to the next through education and experience – Concise Columbia Encyclopedia PERSONALITY individual each of us behave / communicate at different ways / times / places
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Cross Cultural Management
Definitions of culture
In management literature definitions of culture refer to:
– national or ethnic grouping, including summations of characteristics with reference to distinctive (culture-specific) management style or negotiating style – the special qualities of an organization (corporate culture) – mental attributes (as in Hofstede’s, 1980 definition): Culture is the collective programming of the mind which distinguishes the members of one human group from another

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Cross Cultural Management
Definitions of culture
Patterned ways of thinking, feeling and reacting
– – – – Behaviour styles Negotiating techniques Protocol Business practices

Cultural misunderstandings can threaten or even destroy your efforts in a foreign country

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Cross Cultural Management
Definitions of culture … is not just about observing. “the same Behaviour can have different meanings and different behaviours can have the same meaning” [Schneider & Barsoux, 1997] Why do people behave in this way? What are their values/beliefs?
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Cross Cultural Management What is cross-cultural management?
CCM studies the behavior of people in organizations around the world and trains people to work in organizations with employee and client populations
– It describes organizational behavior within countries and cultures – It compares organizational behavior across cultures and countries – Seeks to understand and improve the interaction of coworkers, clients, suppliers, and alliance partners from different countries and cultures (Adler, 1991)

José Rivera © 2006

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Cross Cultural Management What is cross-cultural management?
Accessible from several management disciplines
– International management and business
e.g. comparisons of managerial behavior in different countries, differences on doing business

– Organizational theory and behavior
e.g. impact of culture on different organizational functions (for example, HRM and organizational development)

– Culture theory
e.g. comparisons of work-related value orientations in different countries

– Management communication
e.g. impact of culture on verbal and non-verbal communication, comparisons of communication styles in different countries

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Cross Cultural Management What is cross-cultural management?
Fostering cross-cultural learning and participation (Holden, 2002; Schneider & Barsoux, 1997) – not to neutralize or contain cultural differences but to build on them – not so much about operating across cultures as through them, by means of them

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Cross Cultural Management
Global Management Competence
Global Knowledge
Facts and understanding of global issues and affairs Seeing issues positively, from another perspective Personal + Professional Competencies for the personal and business development in a Multicultural world
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Empathy Cultural Skills

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Cross Cultural Management
WHY and WHEN the understanding about different cultures is important ? Working in multicultural environment – Multicultural workplaces – Virtual teams – Leadership in multi-cultural environment Working abroad Having foreign suppliers and customers Doing business in multicultural environment

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Cross Cultural Skills Situations
Return Withdrawal or Escape Time Servers Beavers Adjusters Participators Learners

Rejection Partial Adaptation Integration Biculturality Multiculturality

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How to learn Cross Cultural Skills?
Less Interactive

Observing Listening Reading Watching Asking Participating

More Interactive

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5 Steps for Implementing Cross Cultural Skills?
Grasp the form, content and significance of the cultural differences Produce mutually cultural satisfactory outcomes

Understand Identify
Differences and similarities in the external cultural environment
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Manage Cope Integrate
Elements of difference in your own operating cultural paradigms
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React appropriately to the cultural differences

Cross Cultural Skills – My proposal
1. 2. 3. 4. 5. 6. 7. 8. 9.
Level 11 Flexibility and adaptability Level Tolerance and patience A sense of humor Intellectual and social curiosity Self-confidence and control Level 22 The ability to communicate Level The ability to identify and exploit diversity The ability to integrate cultural values in your organization The compromise to learn from any cross cultural experience 10. The vision of taking the cultural values into your global strategy

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What for Applying Cross Cultural Skills?

Producing Results Getting Along With People Helping People Get Along With Each Other Solving Problems Generating and Using Resources Efficiently Finding New or Better Ways To Do Things Being efficient Matching Global Success ……………….In
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our today 2006 business
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The Cultural Model of Global Success
The 4 Cultural laws for Global Success

Recognizing Diversity as the main Challenge of the Global IHRM Identifying Cultural Values under Diversity

Prepare You & Your People

Developing Cross Cultural Skills To Manage The Diversity of Cultural Values

Building-up Competitive Advantages Based On Global Values & Global Skills

Assessing and Practicing Cross Cultural Skills

The Brands Case
“Brands reflects Values Brands become global”

Analyze the Brands Evolution Map from a Global Business & Cultural Perspective

Global Success

Conduct Your Global Team

The Brands Case
Colours Values in Different Cultures
Colour Culture

Red Danger Aristocrat Happy; Success Anger; danger Death Life

Blue Strong; reliable Freedom; peace Heaven Villain Virtue ---

Green Success Safety Crime Ming dyn.; clouds Young; energetic Fertile; strong Wealth; fertile

Yellow Coward Lucky; temporary Wealthy; powerful Grace; nobility Happy; wealthy Success

White Purity Neutral Death; purity Death Joy Death

Anglo French Chinese Japanese Arab Indian

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The Brands Case: Corporate Brands

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