Chap006_cultural Dimensions From Hodgets and Luthans
Transcript of Chap006_cultural Dimensions From Hodgets and Luthans
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Part Two:
The Role of Culture
I nternational Management,
5th ed.
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InternationalManagement,
5th ed.
Hodgetts and Luthans
Chapter Six
Managing Across Cultures
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EXAMINE the impact of globalization and
national responsiveness on international
strategic management
DISCUSS cross-cultural differences andsimilarities
REVIEW cultural differences in select
countries and regions, and note some of theimportant strategic guidelines for doing
business in each
Objectives of the Chapter
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Strategy for Managing
across Cultures
MNC strategies must address the culturalsimilarities and differences in their varied markets
Globalization
Production and distribution of products and services of
a homogeneous type and quality on a worldwide basis National responsiveness
Need to understand the different consumer tastes insegmented regional markets and respond to different
national standards and regulations imposed byautonomous governments and agencies
Need to adapt tools and techniques for managing thelocal workforce
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Figure 6-1
Globalization vs. National Responsiveness
National responsiveness (differentiation)Low High
High
LowGlob
alization(integration)
Nationalresponsiveness
(Multi-domestic
strategy)
Globalization
strategy
Mixed strategy
(International
strategy)
Mixed strategy
(Transnational
strategy)
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Managing across Cultures (cont.)
Meeting the Challenge Globalization imperative
Belief that one worldwide approach to doing business is thekey to both efficiency and effectiveness
Factors that help develop strategies for different cultures
Diversity of worldwide industry standards
Continual demand by local customers for differentiated products
Importance of being an insider
Difficulty of managing global organizations
Need to allow subsidiaries to use their own abilities and talents
and not be restrained by headquarters Challenges of adjusting global strategies to regional markets
MNC must stay abreast of local market conditions
MNC must know the strengths and weaknesses of its subsidiaries
MNC must give subsidiary autonomy to address local demands
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Cross-Cultural Differences and
Similarities (cont.)
Similarities across Cultures Some similarities across cultures have been
uncovered by researchers
Russian and U.S. managers both:
Carry out traditional management, communication, humanresources, and networking activities
Use organizational behavior modification successfully
Korean and U.S. employees both:
Are more committed to the organization when they occupyhigher level positions, have more tenure in their position, andare older
Are more committed to the organization when the structure ismore employee-focused and the organizational culture is
perceived in a more positive light
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Cross-Cultural Differences and
Similarities (cont.)
Many Differences across Cultures MNCs have discovered that they must understand the
cultures where they plan to do business and modify
their approaches appropriately
Foreign subsidiaries differ in the standards used to: evaluate personnel
provide wages and benefits
Based on Hofstedes work, can link cultural clusters to
compensation strategies
Useful to develop a contingency model to analyze HRMpractices on a country-by-country basis
Conventional wisdom and common assumptions about HRM
practices in certain countries often are incorrect
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Table 6-2
Cultural ClustersPower Uncertainty
Distance Individualism Masculinity AvoidancePacific Rim
Hong Kong, Malaysia,
Philippines, Singapore + - + -
Japan + - + +
South Korea, Taiwan + - - +
EU and United States
France, Spain + + - +
Italy, Belgium + + + +
Portugal + - - +Greece + - + +
Denmark, Holland - + + -
Germany - + + +
Great Britain, Ireland,
United States - + + -
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Cultural Differences in Selected
Countries and Regions (cont.)
Doing Business in China (cont.) When dealing with the Chinese, one must:
Be a good listener
Realize that China is a collective society
Understand that the Chinese are less animated than Westerners Understand that the Chinese place values and principles above
money and expediency
Allow Chinese host to signal the beginning of a meeting
Understand that Chinese are slow to decide on a course of
action, but stick to the decision once made
Understand that reciprocity is important in negotiations
Not display emotions during negotiations
Rely on a long-term perspective to view negotiations
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Cultural Differences in Selected
Countries and Regions (cont.)
Doing Business in Russia When dealing with the Russians, one must:
Build personal relationships with partners
Use local consultants
Consider business ethics Be patient
Stress exclusivity
Deal with just one firm at a time
Keep financial information personal
Research the company
Stress mutual gain
Clarify terminology
Be careful about compromising or settling things quickly
C l l iff i S l d
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Cultural Differences in Selected
Countries and Regions (cont.)
Doing Business in India Growing number of MNCs have been attracted to India
Government has helped attract foreign investment bylifting bureaucratic restrictions
Most Indian businesspeople speak English Indians are tolerant of outsiders
When dealing with Indians, one must:
Be on time for meetings
Avoid asking personal questions Use formal titles when addressing others
Avoid public displays of affection
Use the namastegesture to greet people
C l l Diff i S l d
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Cultural Differences in Selected
Countries and Regions (cont.)
Doing Business in France French culture is markedly different from U.S. culture
Social class and status are very important in France
In contrast to Americans, the French are:
More sardonic More tolerant of different points of view
More inclined to determine a persons trustworthiness on thebasis of personal characteristics rather than accomplishments
Less motivated by competition
More inclined to have highly centralized organizations withrigid structures
Less moved to industriousness and more concerned with thequality of life
C l l Diff i S l d
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Cultural Differences in Selected
Countries and Regions (cont.)
Doing Business in Arab Countries Arab cultures are distinctly different from Anglo
cultures
Arabs have a different understanding of time
Less commitment to punctuality
Arabs are fatalistic
Destiny is in the hands of God, not under the control of anindividual
Status in Arabian society determined by family, and notnecessarily by personal achievements
Arabs often act on the basis of emotion rather than logic Arabs rely on elaborate and ritualized greetings
Arabs avoid displays of superiority
Arabs dont take credit for joint efforts
Arabs rely on administrative channels to get most work done