Managerial

Environments
Text: Chapter 4

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4. Managerial environments
 To review: The global management work environment

Situational contingencies
(personalities, location,
historical sensitivities,
timelines, crises)

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4. Managerial environments
 Think about it . . .

You get very different thinking if you sit in

Shanghai or São Paulo or Dubai than if you sit in
New York.

Michael Cannon-Brooks
IBM

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4. Managerial environments
Learning objectives
• Explore managerial role expectations across cultures
• Examine patterns of managerial thinking
• Recognize situational contingencies affecting managerial
behavior
• Explore work values and global patterns of work
motivation
• Examine the role of gender in the global workplace

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4. Managerial environments
 CULTURES AND STYLES OF MANAGEMENT

• Management tasks and cultural values

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4. Managerial environments
 MANAGEMENT TASKS

1. Planning
- goals and objectives of a company or department
2. Organizing
- organizing actions needed to achieve the goals
3. Staffing
- allocating employees to particular positions
4. Directing
- leading the organization and its employees towards its goals
5. Controlling
- Monitoring performance of the company or department

Slide 6.6 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 EFFECT OF CULTURAL VALUES ON
MANAGEMENT
 The way tasks and responsibilities are performed will be examined in the
light of key number of cultural values. (Model of culture).
 These cultural values emerged from cultural dimensions found by
scholars.
 Eight cultural value orientations have a considerable influence on the
way managers perform their activities.
 These cultural value orientations will be examined together with their
impact on the management activities.

Slide 6.7 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 MODEL OF
CULTURE

Figure 6.1 A model of culture

Source: adapted from Doing Business Internationally, Participant Workbook: 2.3

Slide 6.8 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 TIME FOCUS
 Different cultures have different perceptions of time according to their
environment, history, traditions and general practices.
 Hall and Hall (1990) distinguish two prominent time systems which
are of particular relevance to management :
 Monochronic
- time is used in a linear way: one activity at a time
 Polychronic
- people tend to focus on multiple tasks

Slide 6.9 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
Slide 6.10 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 TIME FOCUS AND
MANAGEMENT TASKS
 Polychronic cultures
 Monochonic cultures

1. Relationship in planning
1. Making schedules
2. More holistic and people-focused
2. Linear and task-focused
3. Focus on longer term
3. Concerns focused on shorter
term 4. Sharing of implicit
knowledge/information
4. Distribution of detailed
information 5. Flexible control systems involving
people
5. Use control systems and strict
deadlines
Slide 6.11 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 TIME ORIENTATION

 Past, present, future

 Cultures focused on the:

Past: upholding tradition in line with the history of the
company.
Present: quick results and short-term gain.
Future: plans are assessed in the light of expected future
benefit.

Slide 6.12 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 TIME ORIENTATION AND
MANAGEMENT TASKS
 Past-oriented cultures
1. Building in long-term time frames
2. Past goals guide the process
3. Slower in adapting criteria by
selection
4. Continuation of the company’s
values
5. Develop performance in keeping
customary goals
Slide 6.13
 Future-oriented cultures
1. Long-term plans and results
2. Co-ordinated to meet longer-range
goals
3. Selection to meet long-term
business goals
4. Achieving long-term benefits
5. Develop objectives in the long-term
context
Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 POWER

Power value orientation: the extent to which a society

expect or accept that power is distributed unequally.

 Hierarchy

- Level of power and authority are strictly marked

 Equality

- Status and formal position have less influence

Slide 6.14 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 POWER AND MANAGEMENT
TASKS
 Equality
 Hierarchy
1. More participative planning
1. More autocratic or paternalistic
2. Organizational structure
planning
encourages individual autonomy
2. Organizational structure is tightly
3. Work relations should not be
controlled
strictly prescribed
3. Subordinates expect bosses to take
4. Managers exhibit consultative
initiatives
style
4. Employees like being closely
5. Subordinates develop performance
supervised
objectives with their bosses
5. Employees prefer the personal
control of superiors
Slide 6.15 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 COMPETITIVENESS
(COMPETITION)
 Competitive
When competitiveness is valued, the culture is focused on:
Acquiring wealth
Performing well
Achieving ambitions
 Co-operative
Competition is not considered to be the main purpose of
business
Stress is on the quality of life, relationships and consensus

Slide 6.16 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 COMPETITION AND
MANAGEMENT TASKS
 Co-operative
 Competitive
1. Maintaining relationships in plan
1. Task performance when
implementation.
implementing plans.
2. Managers have more of a
2. Managers have more of a leadership
facilitating role.
role.
3. Employees elected on ability to
3. Selection of employees on ability to
work well in groups.
act independently.
4. The leader’s role is to facilitate
4. The leader’s role is to track and
relationships.
reward achievement.
5. Task performance is recognized as
5. Preferred control systems are
a standard for success
performance-based
Slide 6.17 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 ACTIVITY
Human expression as resulting in some form of activity
 Doing
The stress in doing cultures is placed on:
Action
Achieving personal goals.
 Being
The stress is placed on:
Working for the moment
Living the experience

Slide 6.18 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 ACTIVITY AND MANAGEMENT
TASKS
 Doing cultures
 Being cultures
1. Developing time-framed 1. Strong focus on the vision
action steps. 2. Based on common vision and
2. Action-oriented personal trust.
documentation 3. Career development based on
3. Ability to fulfill personal or social criteria.
organizational tasks. 4. Personal philosophy, values and
4. Expertise and competence
style
5. Management of performance
5. The ways the tasks are done. measurement less systematic.
Slide 6.19 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 SPACE
 Private / Public

 One aspect of space orientation is related to private

or public space
 Another aspect related to invisible boundary
around every person
 The concept of space can be seen in terms of
personality
Slide 6.20 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 SPACE AND MANAGEMENT
TASKS
 Public
 Private
1. Group-oriented or authoritative
1. Forms of planning: individualistic
forms
or systematic
2. Relationship-centred approaches
2. More task-centred.
3. Implicit information
3. Explicit information about how
staff are to be employed 4. Size of the place where an
employee works does not reflect the
4. Managers and employees do not
person’s rank
share the same office
5. Informal checks on performance.
5. Explicit measures of performance

Slide 6.21 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 COMMUNICATION

 Role of the context in the communication process. (Hall & Hall, 1990)
 Context related to framework, background and surrounding
circumstances
 High-context

- Information is ‘hidden’in the text

- Situation carries most of the information
 Low-context

- The message are clear and explicit

Slide 6.22 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 MESSAGES AND CONTEXT

Figure 6.2 Messages and context (adapted from Hall)

Source: Usunier (1993: 103)

Slide 6.23 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 STRUCTURE

 Term ‘structure’ refers in business to an organizational structure.

 Value orientation concerns the relation between individual and a
group.

 Individualism
- ‘I’ predominates over the ‘We’
 Collectivism
- interests of the group prevails over individuals

Slide 6.24 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 CONCLUSION

 A model of culture has been developed

 Link between theory and practice
 Underlying assumption:

- Individual’s framework of cultural preferences influences

the management tasks
 Application of cultural values to management behaviour
 Other views on values (read pp.106–108)

Slide 6.25 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009
 To review: The global management work environment

Situational contingencies
(personalities, location,
historical sensitivities,
timelines, crises)

26
4. Managerial environments
Learning objectives
• Explore managerial role expectations across cultures
• Examine patterns of managerial thinking
• Recognize situational contingencies affecting managerial
behavior
• Explore work values and global patterns of work
motivation
• Examine the role of gender in the global workplace

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4. Managerial environments
 What are managerial roles? (Exhibit 4.2)
Interpersonal roles  
Figurehead Figureheads have considerable symbolic value in some cultures; in others, being
described as a figurehead is not seen as a compliment.
Leader Individualistic cultures prefer highly visible “take charge” leaders; collectivistic cultures
prefer more consultative leaders.
Liaison Some cultures prefer informal contacts based on long-standing personal relationships;
others prefer to use official representatives.
Informational roles  
Monitor Culture often influences both the extent of information monitoring and which specific
information sources receive greatest attention.
Disseminator In some cultures, the context surrounding a message is more important than the message
itself; in others, the reverse is true.
Spokesperson Culture often influences who is respected and seen as a legitimate spokesperson for an
organization.
Decisional roles  
Entrepreneur Some cultures are highly supportive of innovation and change; others prefer the status quo
and resist change.
Disturbance handler Some cultures resolve conflict quietly; others accept and at times encourage a more public
approach.
Resource allocator Hierarchical cultures support differential resource allocations; egalitarian cultures prefer
greater equality or equity in distributions.
Negotiator Some cultures negotiate all items in a proposed contract simultaneously; others negotiate
each item sequentially.
 
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4. Managerial environments
What are expectations of managers? (Exhibit 4.3)
Managers must have The main reason for a It is OK to bypass
the answers to most chain of command is chain of command to
questions asked by so people know who get something done
Country subordinates has authority efficiently
China 74 70 59
France 53 43 43
Germany 46 26 45
Indonesia 73 83 51
Italy 66 – 56
Japan 78 50 –
Netherlands 17 31 44
Spain – 34 74
Sweden 10 30 26
United Kingdom 27 34 35
United States 18 17 32
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4. Managerial environments
What are managerial characteristics? Examples
(Exhibit 4.4)
Manager’s sense of drive and Manager’s willingness to delegate
initiative (percentage of authority (percentage of agreement by
Country agreement by managers) Country managers)
United States 74 Sweden 76

Sweden 72 Japan 69
Japan 72 Norway 69
Finland 70 USA 66

South Korea 68 Singapore 65

Netherlands 67 Denmark 65
Singapore 66 Canada 64
Switzerland 66 Finland 63
Belgium 65 Switzerland 62

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4. Managerial environments
Patterns of managerial thinking
• Cognitions (thought processes) and subsequent behaviors
(e.g., working hard) are heavily influenced by what are called
our cognitive schemas.
• Cognitive schemas are mental repositories of knowledge that
store representations about what things are, their
characteristics, and what they might be related to.
• Cognitive schema include people’s knowledge base,
expectations, experiences, and biases—that is, how people
make sense out of their world

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4. Managerial environments
Example of cognitive schema: What is a
supervisor? (Exhibit 4.5)

Germany UK, US
Supervisor as overseer and Supervisor as motivator and
expert; technical authority controller; formal authority
(meister) (boss)
Supervisory roles
across cultures
Japan Mexico
Supervisor as organizer, role Supervisor as protector;
model, and "parent"; social personal authority (patrón)
authority (kacho)

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4. Managerial environments
Situational contingencies and managerial behavior

Consider: The debate over whether or how much

culture influences action obscures a crucial insight:
culture’s influences vary by context.

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4. Managerial environments
 Why do people work? What motivates people to go to work

• Work values reflect individual beliefs about desirable end

states or modes of conduct for pursuing desirable end
states

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4. Managerial environments
 work values at Tesla
Headquartered in Palo Alto, California, Tesla builds both electric cars and solar batteries for a wildly enthusiastic
market. It recently announced plans to build a sister plant in China. What drives people who work at Tesla? One
factor is an unrelenting pressure to perform, where the example is set from the top.17 When a technical problem
slowed the production line, Elon Musk, company CEO, moved a cot onto the factory floor so he could work on the
problem 24/7. Employees who don’t share this passion quickly leave, but there are plenty of applicants to replace
them. Each year, almost half a million people apply for jobs at Tesla, the most applicants of any company in the US.
Tesla’s stated mission of accelerating the world’s transition to sustainable energy and its strong leadership from the
top appeals to many of its 45,000 employees, who are sometimes willing to work 100-hour shifts and eschew many
of the common perks of technology companies, such as free food. Instead, many employees report that they run on
adrenaline, stock options, and a shared passion with company leaders to change the world. Kiran Karunakaran, at
twenty-nine, passed up higher- paying offers from Apple and Alphabet to join Tesla. “What really attracts young
people to Tesla is instant gratification,” he said. “You see incredible things you’ve worked on come to fruition, on
the road, in months.” Meanwhile Anusha Atluri, a second-year MBA student working on a summer internship,
spotted a way to tweak a step on the manufacturing line that she thought might speed up production. She
suggested to her supervisors that they consider her suggestion during the next week. “They were like, why not just
try it tomorrow?” One manager left Tesla to have a baby but was soon back on the job. “Life isn’t about working
less,” she observed. “Everybody should have more work than they can possibly finish at all times.”18
As Tesla moves to build its new Chinese factory, questions emerge about whether the company will attempt to
replicate its value system overseas or seek to accom- modate local work values.

3. Organizational environments 35
Management application 4.3
Extreme work values at Tesla
1. In your view, could Tesla’s high individualism/high performance work environment
succeed in other countries? What countries and why?
2. Tesla has what one might describe as an “extreme” work environment where
performance trumps everything else, including a work-life balance. What are the
potential short and long-term consequences of such an environment for both the
company and its employees?
3. Would you like to work at Tesla? Why or why not?
4. As Tesla prepares to open a new factory in China, would it be wise to attempt to
replicate its work culture in this new setting? What are the potential benefits and
pitfalls of such an attempt?
5. How difficult would it be to establish Tesla factories in other parts of the world
(e.g., Europe, Latin America) without changing the corporate culture? And if Tesla
changed its corporate culture, what would happen to the company? Would it still
be Tesla? Explain.
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4. Managerial environments
Situational contingencies and managerial behavior (Exhibit 4.6)
• Personality; gender;
cultural patterns; power • Clarity of purpose;
distribution; tolerance for knowledge of topic
ambiguity; assertiveness under discussion;
understanding of
Individual Goals limits and timelines
difference and
s
tasks

Roles and
Location responsibi
lities
• Geographic location; meeting
location (e.g., office or • Buyer or seller; rank and
restaurant); language-in-use seniority; decision
autonomy; company
policies
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4. Managerial environments
Work values across cultures (Exhibit 4.7)
Cultural background
Social, religious, and
family environment
governing general beliefs
and values

Cultural reinforcement
Work values
Appropriate behaviors
Personal beliefs about
elicit social and self-
appropriate work-related
approval that reinforces
attitudes and behaviors
cultural values

Behavioral
consequences
On-the-job behaviors
(e.g., work effort,
commitment to firm)
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4. Managerial environments
 Work and leisure: Working hours (Exhibit 4.8)
Country Hours Country Hours Country Hours

Australia 1669 Greece 2035 Russia 1974

Belgium 1551 Hungary 1761 South Korea 2069

Canada 1703 Ireland 1878 Spain 1695

Czech Republic 1770 Japan 1713 Sweden 1621

Denmark 1410 Mexico 2255 Switzerland 1590

Finland 1621 New Zealand 1752 UK 1676

France 1472 Poland 1928 USA 1783

Germany 1363 Portugal 1842 OECD average 1763

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4. Managerial environments
Management application 4.3
Extreme work values at Tesla
1. In your view, could Tesla’s high individualism/high performance work environment
succeed in other countries? What countries and why?
2. Tesla has what one might describe as an “extreme” work environment where
performance trumps everything else, including a work-life balance. What are the
potential short and long-term consequences of such an environment for both the
company and its employees?
3. Would you like to work at Tesla? Why or why not?
4. As Tesla prepares to open a new factory in China, would it be wise to attempt to
replicate its work culture in this new setting? What are the potential benefits and
pitfalls of such an attempt?
5. How difficult would it be to establish Tesla factories in other parts of the world
(e.g., Europe, Latin America) without changing the corporate culture? And if Tesla
changed its corporate culture, what would happen to the company? Would it still
be Tesla? Explain.
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4. Managerial environments
 How can cultural differences influence employee
motivation? (Exhibit 4.9)
Individualistic cultures tend to emphasize: extrinsic rewards tied to personal achievement; individually based
incentives; personal responsibility for accomplishment; viewing employees as performers; and providing employees
with autonomy and opportunities for advancement.
Collectivistic cultures tend to emphasize intrinsic rewards (e.g., meaningful work) tied to commitment and loyalty;
group-based incentives; group norms and moral persuasion; viewing employees as family members; and building
teams and networks focused on task performance.

Hierarchical cultures tend to emphasize: extrinsic rewards; large salary differentials; clear directives to subordinates;
decisive and powerful leaders; and rewards for complying with managerial directives.
Egalitarian cultures tend to emphasize intrinsic rewards; minimal salary differentials; participative or consultative
decision-making; flexible or collaborative leaders; and rewards for creativity and constructive feedback.

Mastery-based cultures tend to emphasize: competitive environments within the organization to stimulate best efforts;
using performance-based incentives with monetary rewards; showcasing high performers; encouraging thinking big
and conquering the environment; and assertiveness training programs.
Harmony-based cultures tend to emphasize: group harmony and team efforts for collective results; seniority or
membership-based incentives; showcasing team efforts and organization-wide accomplishments; encouraging respect
for traditions and the environment; and encouraging continued membership for the entire work force.

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4. Managerial environments
How can cultural differences influence employee
motivation?
Sequential (monochronic) cultures tend to emphasize: providing people with simple sequential directions;
providing strict time limits for each project with intermittent updates; focusing on the job; and keeping personal
relations to a minimum.
Synchronic (polychronic) cultures tend to emphasize: greater flexibility in how tasks are approached; flexible
time limits for various tasks; progress checks through personal discussions; and greater focus on personal
relations as a means of succeeding on the job.

Universalistic (rule-based) cultures tend to emphasize: clearly acknowledged rules, regulations; universal
enforcement; providing people with certainty and security; rewards tied to compliance; and decisions based on
objective criteria.
Particularistic (relationship-based) cultures tend to emphasize: building interpersonal trust as a basis for
relationships; investing time meeting with employees; building informal networks; using influential people to help
motivate others; recognizing extenuating circumstances in rule enforcement; and decisions often based on
personal ties.

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4. Managerial environments
 How can cultural differences influence CEO pay?
(Exhibit 4.10)
Country Average annual Average annual Average ratio of CEO to
CEO employee employee
compensation compensation compensation

Australia $4.2 million 45,000 93:1

Austria 1.6 million 44,000 36:1
Czech Republic 2.2 million 20,000 110:1
Denmark 2.2 million 46,000 48:1
France 4.0 million 38,000 104:1
Germany 6.0 million 40,000 147:1
Israel 2.2 million 29,000 76:1
Japan 2.4 million 35,000 67:1
Norway 2.6 million 44,000 58:1
Poland 0.6 million 20,000 28:1
Portugal 1.2 million 23,000 53:1
Spain 4.4 million 34,000 127:1
Sweden 3.4 million 38,000 89:1
Switzerland 7.4 million 50,000 148:1
UK 3.8 million 45,000 84:1
USA 12.3 million 35,000 354:1
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4. Managerial environments
Women at work: Gender wage gaps (Exhibit 4.11)
Country % wage Country % wage Country % wage
gap gap gap

Australia 15 Greece 12 Russia 37

Belgium 9 Hungary 12 South Korea 40

Canada 22 Ireland 20 Spain 17

Czech Republic 19 Japan 32 Sweden 15

Denmark 14 Mexico 16 Switzerland 22

Finland 20 New Zealand 6 UK 20

France 12 Poland 11 USA 21

Germany 24 Portugal 19 OECD average 18

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4. Managerial environments
Closing thought . . .
Will we manage and motivate the next generation
of employees the same way we have in the past?
If not, what will be different?

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4. Managerial environments
Strategies for managing across cultures (Exhibit 4.12)
1. Learn about managerial
role expectations and
cognitions
• Take a serious look at
components of, and forces
within, various managerial
work eenvironments.
• Understand how culture and
organizations help shape
managerial roles and
responsibilities.
• Understand variations in
managerial thinking and why
these differences occur.
4. Managerial environments
2. Explore situational
contingencies
• Consider how cultural,
organizational, and managerial
work environments fit together
to create unique challenges
and opportunities for
managers.
• Look for situational variations
and how these factors might
influence behavior, success, or
failure.
3. Develop culture-based
motivational strategies
• Study variations in work values
as they affect attitudes and
behaviors.
• Explore how culture and
orgnizational processes
influence employee motivation
and performance.
• Understand the concepts of
fairness and distributive
justice--as seen by employees.
• Recognize diversity in
developing incentive
programs.
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Key concepts
cognitions managerial environment
cognitive schemas psychological contract
distributive justice situational contingencies
dual management hierarchy work values
free overtime
karoshi

4. Managerial environments 47