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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
Chapter 2(1) _Global Culture
CULTURAL MESSAGES COME FROM MULTIPLE SOURCES
– Domestic – International – Global although most common challenges are addressed by nations, a global civil society is emerging
PEOPLE LOOK AT ALTERNATIVE ENTITIES FOR CULTURAL DIRECTION • Affiliative groups e.g.. ethnic groups • Nongovernmental organizations. e. Economic Union • Business organizations 4 Cross-Cultural Management .g. the Women’s League for Peace and Freedom • Religious groups • Regional associations..g.. e.
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 .
OTHERS ARE NOT • • • • The Planet Project The Roper Poll of Values The World Values Survey The GLOBE Project 7 Cross-Cultural Management .WE SEE THAT SOME VALUES ARE COVERGING.
GLOBE RESPONSES ON GENDER EGALITARIANISM SHOWS COVERGENCE ON ―SHOULD BE‖ Latin America 7 Indigenous Africa 6 5 4 Anglo As Is Arab 3 2 1 Nordic Shd Be S Asia Germanic Confucian East Europe 8 Latin Europe Cross-Cultural Management .
GLOBE RESPONSES ON HUMANE ORIENTATION ALSO SHOWS COVERGENCE ON ―SHOULD BE‖ Latin America 7 Indigenous Africa 6 5 4 Anglo As Is Arab 3 2 1 Nordic Shd Be S Asia Germanic Confucian East Europe 9 Latin Europe 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 .
interest. 12 Cross-Cultural Management . Groups can be either formal or informal. and further subclassified into command. task.Group Two or more interacting individuals who come together to achieve some objectives. or friendship categories.
g. group of employees enjoying lunch together) 13 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..
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 Environment • Reward systems Team Design •Task characteristics •Team size Team Effectiveness • Communication systems • Achieve •Team composition • Physical space • Organizational environment • Organizational structure • Organizational leadership 17 organizational goals • Satisfy member needs • Maintain team survival Team Processes •Team development •Team norms •Team roles •Team cohesiveness Cross-Cultural Management .
g. in multi-functional teams) 18 Cross-Cultural Management . potential for Role Conflict (esp.Groups Across Cultures Two cultural dimensions are especially relevant: • Individualism-Collectivism • Power Distance • Also Uncertainty Avoidance. e..
Less demanding. – The national culture –Where employees have is highly strong collectivist values. individualistic such as Japan or Mexico – Introduced into organizations that –In new organizations historically value that use teams as their individual initial form for structuring achievement work 19 Cross-Cultural Management .....The Challenge in Shaping Team Players Greatest where.
favor suppressing conflict • Prefer to personalize interaction. despite what group they represent • Group membership is an important part of identity and interaction 20 Cross-Cultural Management .Cross-Cultural Differences Cross–cultural differences in intergroup processes – Collectivistic cultures • Expect little expression of conflict. focus on people.
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 .
but with higher intensity level.Interpersonal Relationships • Individualists tend to have more friends. • Individualists are less suspicious towards outgroup members and easier to make initial contact. • Collectivists tend to have less friends. but with lesser intensity level. • Collectivists have stronger bonds with in-group members 22 Cross-Cultural Management .
Equity (‘you get what you deserve’) vs. individual rewards • Equality (‘you deserve what you get’) vs.Differential Group Processes • Conformity: who is more conforming? • Formal/regulated participation vs. spontaneous • Social loafing versus social striving • Preferences for group vs. Need based decisions (‘to all according to their needs’) 23 Cross-Cultural Management .
and the United States 24 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.
Teams’ Cultural Composition •Cultural Diversity: the number of different cultures represented in the group. and •Relative Cultural Distance: the extent to which group members are culturally different from each other 25 Cross-Cultural Management . •Cultural Norms: the orientations of the specific cultures represented in the group toward group dynamics and processes.
diversity can be in the form of: • Surface-level (black-American. and S. N. CaucasianAmerican.Surface and Deep Diversity In multicultural teams. Africans) 26 Cross-Cultural Management . Singaporean and Chinese. French and Vietnamese) and/or • Deep-level (Irish and English.
Context Group Dynamics Diversity •Surface •Deep Affective Reactions •Cohesion •Satisfaction •Commitment Team Behaviours •Communication •Conflict •Cooperation Long-term Conseq.Dynamics of Team Diversity Social Context Org. •Performance •Promotion •Turnover 27 Cross-Cultural Management .
more effect on complex. • Diversity. have mixed effects on team processes and performance.Jackson. interdependent teamwork 28 Cross-Cultural Management . 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. • Less effect on simpler. motor-based tasks. in general. and cultural/ethnic diversity in particular.
29 Cross-Cultural Management . • Found that in the early stages. homogenous teams (those with only one major national group identity) outperformed both moderately heterogeneous (groups with two different subgroup identities) and highly heterogeneous (no clear sub-group identities exist) teams.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.
Team processes mediated the effects of heterogeneity on team performance.Earley & Mosakowski (2000) • In the longer term. high-heterogeneous teams’ performance increased as they managed to create a hybrid-culture. shared mental models and open communication developed early on in the team’s life 30 Cross-Cultural Management . whose performance was lower than both high and low heterogeneity teams. such that: • In homogenous groups. members perceived many similarities between themselves (remember SIT?). trust. • Such hybrid culture was not created in moderately heterogeneous teams.
Earley & Mosakowski (2000) • In moderately heterogeneous teams. • 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 . them’ prevailed. a dynamic of ‘us vs. they were free to form a ‘hybrid culture’-unique to their team and overarching each members’ national identity. with the two sub-groups sticking to themselves in times of conflict. • In highly heterogeneous teams. members go to know each other better and since there were no dominant sub-groups. as time passed. resulting in little cross sub-group cooperation.
diversity causes process losses • Can be beneficial if team overcomes these losses over time • Depends on organizational culture and topmanagement 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 .Diversity and Teams • Overall.
Conditions for Effectiveness More Effective Task Innovative Less Effective Routine Stage Conditions Divergence (earlier) Differences Recognized Convergence (later) Differences Ignore Task-based member selection Pluralism Equal Power Superordinate goals External feedback Culture-base members selection Ethnocentrism Cultural Dominance Individual goals No feedback/autonomy 33 Cross-Cultural Management .
for complex tasks and when team members are (relatively) pluralistic • More careful task design is needed • Positive feedback. early on • Preparation and training.Some Implications • Investment in diverse teams is more sensible for the longer-term. through conceptual and experiential approaches is recommended • Strive to create a third culture through superordinate goals and neutralization of differences 34 Cross-Cultural Management .
class) • Idiosyncratic cultural variables. Americans) • Prior experience with different cultures plays important role (usually for the better) • Virtual Teams: added complexity 35 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. e. N. intellectual style (Russians vs..g.
Chapter 2(3)-Motivation Global Context in a 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 need Drive toward goal to satisfy need Attainment of goal (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 of Needs Need for 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 .
affiliation – France and Germany: need for security – New Zealand: belongingness and love • McClelland: needs for affiliation.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. power and achievement 42 Cross-Cultural Management .
S.International Aspects of Job Design • Herzberg: Two Factor Theory • Individual and group–based job design – U. 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. Greece. Mexico. but only partial in the US 44 Cross-Cultural Management . Subordinates do not expect them to do so – Quality circles: big success in Japan. Thailand: not likely to accept efforts to increase autonomy and task identity – French managers particularly dislike recommendations to decentralize decision authority.) • Changing specific job characteristics – Belgium.
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 .
values of free will.Cognitive and Behavioral Theories of Motivation • Both assumptions reflect U. individualism.S. 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 .
Russian.Cognitive and Behavioral Theories (Cont. • Eastern European transition economies: endorsed positive inequity more than American students 48 Cross-Cultural Management .) • Equity theory: complex cross–cultural effects – Reward allocation decisions followed equity theory premises in U.S. and Chinese samples – Other studies • Chinese emphasized seniority in their reward decisions more than Americans..
S.Culture & Motivation • Research on goal setting theory in several countries • Results consistent with U. consistent with culture of cooperation 49 Cross-Cultural Management .S. work that formulated the theory • Some cultural differences – U. students not affected by how goals were set – Israeli students performed better when goals were set participatively.
g.Idiosyncratic Factors Beyond cultures’ variance along the major cultural value dimensions.: Slay the Dragon!! 50 Cross-Cultural Management . there are specific aspects anchored in nation’s history and expressed through its symbols and language. e. Ignoring such factors may render motivational techniques ineffective or even result in de-motivation.
Decision Making across Cultures 51 Cross-Cultural Management .Chap 2(4).
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. Autocratic 53 Cross-Cultural Management . Consensus based decisions * Process: Participative vs.
Value of Rationality Strong preference for rational D. vs.M. Occasional or low value on rationality. In some cultures more emphasis on: • Emotions • Religion • Ideology 54 Cross-Cultural Management .
– Organization is economically based and is managed by decision makers who are entirely objective and have complete information.Rational Decision Making The Rational Approach assumes that – Managers follow a systematic. It assumes that rational choices are: • Consistent • Value-maximizing • Within specified constraints 55 Cross-Cultural Management . step-by-step process.
The Six-Step Rational Decision-Making Model 1. Define the problem 2. Identify decision criteria 3. Generate alternatives 5. Compute the optimal decision 56 Cross-Cultural Management . Weight the criteria 4. Rate each alternative on each criterion 6.
delegation of responsibility. Information Search Gathering facts Gathering ideas and possibilities Past/present/future based on stability Group level. broad participation 3. top-down 5. change Situation acceptance 2. Choice New. Construction of Alternatives 4. slowly Fast.Cultural Contingencies in Decision Making Step 1. Implementation 57 Cross-Cultural Management . future oriented based on change Individual level. fast Slow. Problem Recognition Problem solving. by senior management.
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 .Case Study: The Road to Hell (p.
Maintaining conventional order by fulfilling obligations to which you have agreed 3. 59 Cross-Cultural Management . Following self-chosen ethical principles. upholding non-relative values and rights regardless of the majority’s opinion Conventional 4. ―Moral Stages and Moralization: The Cognitive-Developmental approach.Stages of Moral Development Level Principled Stage Description 6. T. Valuing rights of others. Research. Sticking to rules to avoid physical punishment Pre-conventional Adapted from L. Lickona (New York: Holt. ed. Kohlberg.‖ pages 34-55 in Moral Develop and Behavior: Theory. Rinehart & Winston. Living up to what is expected by people close to you 2. and Social Issues. Following rules only when it’s in your immediate interest 1. 1976). even if they violate the law 5.
made solely on basis of outcomes or consequences • Focus on Rights .Three Different Criteria in Making Ethical Choices • Utilitarian Criterion .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 relativism Multinational organization Ethical realism 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 .
) • Three points – Moral judgments are statements of feelings and opinions.Cultural relativism (cont.Ethical Aspects of Decisions . 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 .
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 .
people will not behave morally • Because others will not behave morally.Ethical Aspects of Decisions – Ethical realism • Morality does not apply to international transactions • Because no power rules over international events. 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 .
• The process whereby one individual influences other group members towards the attainment of defined group or organisational goals.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 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 Authoritarian Leadership Paternalistic Leadership Participative Leadership 70 The use of work-centered behavior designed to ensure task accomplishment.or taskcentered and people centered approaches to leading subordinates. Cross-Cultural Management . The use of both work. The use of work-centered behavior coupled with a protective employee centered concern.
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 .
73 Cross-Cultural Management .Leader–Subordinate Interactions Participative Leader Subordinate Subordinate Subordinate Continual interaction and exchange of information and influence between leader and subordinates.
• Path-Goal Model .Leader assists followers in attaining goals and ensures goals are compatible with overall objectives 74 Cross-Cultural Management . • Quality of leadership experience depends on several situational factors. including followers and task type.Contingency Theories • Leaders use various leadership styles/behaviours.
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 .
• Participative: A pattern in which the leader consults with subordinates.Path-Goal Theory Four basic leadership styles: • Instrumental (directive): An approach focused on providing specific guidance and establishing work schedules and rules. permitting them to participate in decisions. 76 Cross-Cultural Management . • Supportive: A style focused on establishing good relations with subordinates and satisfying their needs. • Achievement Oriented: An approach in which the leader sets challenging goals and seeks improvements in performance.
Path-Goal Theory Environmental contingency factors • Task structure • Formal authority system • Work group Leader behavior • Directive • Supportive • Participative • Achievement oriented Outcomes • Performance • Satisfaction Subordinate contingency factors • Locus of control • Experience • Perceived ability 77 Cross-Cultural Management .
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
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)
• 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
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 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.
Ireland Lowest Ranking Sweden. U. Medium Ranking Egypt. Greece. Netherlands Hong Kong. Egypt Uncertainty avoidance Austria.GLOBE Cultural Variable Results Variable Assertiveness Future orientation Highest Ranking Spain.S. Brazil Sweden Denmark Russia. Singapore Egypt. France Denmark. Sweden Cross-Cultural Management . Spain Denmark.S.S. Argentina Germany. Israel Russia. France Demark. New Zealand Denmark. Netherlands Sweden. Egypt Hong Kong. Denmark Israel. U. Argentina Italy. Power distance Collectivism/Societal In-group collectivism Russia. Taiwan Humane orientation 82 Indonesia. China England.S. Spain Performance orientation U. U. CanadaSlovenia. Hungary England. Hungary Gender differentiation South Korea.. Egypt Russia.
Universal Leadership Attributes Positive • • • • • • • • • Trustworthy Just Honest Charisma Inspiration & Vision Team-Orientation Excellence-Oriented Decisive Intelligent • • • • • • Negative Loner Non-Cooperative Ruthless Non-explicit Irritable Dictatorial 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 Managers Toward Leadership Practices Capacity for Leadership and Initiative European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership. Does the leader believe that employees prefer to be directed and have little 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 .
Does the leader believe that detailed. complete instructions should be given to subordinates and that subordinates need only this information to do their jobs? OR Does the leader believe that general directions are sufficient and that subordinates can use their initiative in working out the details? 86 Cross-Cultural Management . Researchers investigated four areas relevant to leadership.Leadership in the International Context Attitudes of European Managers Toward Leadership Practices Capacity for Leadership and Initiative Sharing Information and Objectives Most evidence indicates European managers tend to use a participative approach.
Researchers investigated four areas relevant to leadership. Does the leader support participative leadership practices? 87 Cross-Cultural Management .Leadership in the International Context Attitudes of European Managers Toward Leadership Practices Capacity for Leadership and Initiative Sharing Information and Objectives Participation Most evidence indicates European managers tend to use a participative approach.
Researchers investigated four areas relevant to leadership. Does the leader believe that the most effective way to control employees is through rewards and punishment? OR Does the leader believe that employees respond best to internally generated control? Cross-Cultural Management .Leadership in the International Context Attitudes of European Managers Toward Leadership Practices Capacity for Leadership and Initiative Sharing Information and Objectives Participation Internal Control 88 Most evidence indicates European managers tend to use a participative approach.
based on rotations Group based Implicit & informal. Leadership Styles Dimension Employment Evaluation Japan Often for life Slow. U. Making Control Mech. reliance on trust and goodwill Shared collectively Broad and covers the whole life v. based on knowing the control mechanisms Assigned individually limited to work-life Responsibility Concern for employees 89 Cross-Cultural Management . people stay in one area By individual managers Explicit. specialised.S. takes many years US Often short-term Fast: those not promoted often leave Career Paths Dec. Very general.Japanese vs.
Differences in Middle Eastern and Western Management 90 Cross-Cultural Management .
Differences in Middle Eastern and Western Management 91 Cross-Cultural Management .
India. – Israel. Pakistan and other exceptions • Charismatic leadership is not universally accepted 92 Cross-Cultural Management .Leadership-Other Issues • Emphasis on Emotional Intelligence is especially important for leading crossculturally • Idiosyncratic effects & paradoxes: – Moderately masculine Muslim and Hindu nations with traditional views on women…but.
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% 39% 24% 44% 14% Cross-Cultural Management 39% 97 23% .
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 .
often can achieve objectives better than other types of managers • Offer different perspectives 102 Cross-Cultural Management .Sources of Human Resources – Advantages of using TCNs • Require less compensation • Good working knowledge of the region • Given home office experience.
Failure Rates of International Assignments International assignment failure can cost hundreds of thousands of euros Europe Japan US 0 103 % Failure 20 40 60 Cross-Cultural Management .
and health care 104 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.
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
Selecting International Managers • Test for traits that predict success in adapting to new environments • Job knowledge and motivation • Relational skills • Flexibility and adaptability • Extra-cultural openness • Family situation
Predictive trait breakdown
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.
For example. and the appraisal should take such difficulty level differences into account. being an expatriate manager in China is generally considered more difficult than working in England. Weight the evaluation more toward the on-site manager’s appraisal than toward the home-site manager’s.Performance Appraisal of International Mangers Five suggestions for improving the expatriate appraisal process: 1. 109 Cross-Cultural Management . Stipulate the assignment’s difficulty level. 2.
Modify the normal performance criteria used for that particular position to • fit the overseas position and characteristics of that particular locale. have him or her use a former expatriate from the same • overseas location to provide background advice during the appraisal process. • 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.Performance Appraisal of International Mangers • 3. If however (as is usually the case). 110 Cross-Cultural Management . • 4. the home-site manager does the actual • written appraisal.
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 .The New Workplace: Sending Women Abroad • In the US.
Performance Appraisal of International Mangers Five suggestions for improving the expatriate appraisal process: 1. and the appraisal should take such difficultylevel differences into account. 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. Stipulate the assignment’s difficulty level. 2. For example. being an expatriate manager in China is generally considered more difficult than working in England. 112 Cross-Cultural Management .
113 Cross-Cultural Management . have him or her use a former expatriate from the same • overseas location to provide background advice during the appraisal process. 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. the home-site manager does the actual • written appraisal. Modify the normal performance criteria used for that particular position to • fit the overseas position and characteristics of that particular locale. • 4.Performance Appraisal of International Mangers • 3. If however (as is usually the case). • 5.
Culture Shock! • 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 .
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...
• 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
– homesickness – boredom – withdrawal (reading is an obsession, focus on home nationals, avoid host nationals) – excessive sleep need, compulsive eating and drinking – irritability – exaggerated cleanliness
conflict – stereotyping host nationals – hostility towards host nationals – loss of ability to work effectively – fits of weeping – psychosomatic illnesses 118 Cross-Cultural Management . family tension.) – marital stress.Symptoms (cont.
possible to get by. acceptance of local customs and values for what they are (not going native).Phases • Gradual Adjustment – can manage. positive and growth gaining experience 119 Cross-Cultural Management . cope with situation now • Biculturalism/Coping – ability to function in both cultures.
.Nature of Culture Shock • Not a jolt. they seem inferior to your own 120 Cross-Cultural Management .. rather a series of cumulative experiences • Cultural differences become focus of attention • Foreign ways are quaint no more.
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 differences. Level 3 training provides factual knowledge about the target country. and on raising trainees’ awareness of such differences and their impact on business outcomes. Level 4 training provides skill building in areas like language and adjustment and adaptation skills. 122 Cross-Cultural Management . Level 2 training aims at getting participants to understand how attitudes (both negative and positive) are formed and how they influence behavior.
Cross-Cultural Training Training Time Months Training Rigor Immersion Approach Assessment Field experience Simulations Sensitivity training Language: “intensive” High Affective Approach Weeks Information Giving Day(s) Geographic briefings Cultural Briefings Films/Books Interpreters Language: “Survival” Culture assimilator training Role-playing Cases Stress reduction training Cultural Briefings Language: “Moderate” Length of Assignment Weeks 123 Low Months Cross-Cultural Management Years .
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: 126 Write repatriation agreements Shorten Assignment periods Assign a sponsor Provide career counseling Keep communications open Offer financial support Develop reorientation programs Build in return trips Cross-Cultural Management .
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