The Context of IHRM & Intercultural Issuesvoynnetf.free.fr/mi/contextihrm.pdfThe Context of IHRM &...

Catherine Voynnet Fourboul

The Context of IHRM &Intercultural Issues


1


Reference Hodgetts R.M., Luthans F., Doh J.P., International Management:

Culture, Strategy and Behaviour (Mc Graw Hill: 2006), Chapter 6,“Organizational Cultures and Diversity”.

Adler N.J., Gundersen A., International Dimensions ofOrganizational Behaviour, 5th edition (South-Western College Pub:2007), Chapter 5, “Managing Multicultural Teams”.

Tompenaars F., Hampden-Turner C., Riding the Waves of Culture:Understanding Diversity in Global Business, 2nd edition (New York:McGraw-Hill), p. 183

Schein, E.H., Organizational Culture and Leadership, 3rd edition(Jossey-Bass: 2004).

Schein E.H., “Culture: The Missing Concept in OrganizationalStudies”, Administrative Science Quarterly, 41 (1996): 229-240.

C. Voynnet Fourboul & Frank Bournois (1999). StrategicCommunication with Employees in Large European Companies: ATypology. European Management Journal, 03-04, pp. 204-217.

» Edward T. Hall – The Hidden Dimension, p. 159


Part I – interculturalissues

A- National Cultures


HighContext

LowContext

Information

Context

Contracts Population

Short Stable

Long Mobile

1- Context in communication

5


High context

Less verbally explicit communication, lesswritten/formal information

More internalized understandings of what iscommunicated

Multiple cross-cutting ties and intersectionswith others

Long term relationships

Strong boundaries- who is accepted asbelonging vs who is considered an "outsider"

Knowledge is situational, relational.

Decisions and activities focus aroundpersonal face-to-face relationships, oftenaround a central person who has authority.

High

Context

•Examples:

• Small religious congregations, a partywith friends, family gatherings, expensivegourmet restaurants and neighborhoodrestaurants with a regular clientele,undergraduate on-campus friendships,regular pick-up games, hosting a friend inyour home overnight.


High context

messages are implicit and indirect. Onereason is that those who arecommunicating—family, friends, co-workers, clients— tend to have bothclose personal relationships and largeinformation networks.

As a result, each knows a lot aboutothers in the communication network;

they do not have to rely on languagealone to communicate.

Voice intonation, timing, and facialexpressions can all play roles inconveying information.

High

Context


Low context

Rule oriented, people play byexternal rules

More knowledge is codified, public,external, and accessible.

Sequencing, separation--of time, ofspace, of activities, of relationships

More interpersonal connections ofshorter duration

Knowledge is more often transferable

Task-centered. Decisions andactivities focus around what needs tobe done, division of responsibilities.

Low

Context

•Examples:

• large US airports, a chainsupermarket, a cafeteria, aconvenience store, sportswhere rules are clearly laid out,a motel.


Low context

people often meet only toaccomplish objectives.

Since they do not know eachother very well, they tend to bedirect and focused in theircommunications.

Low

Context


Types of questions that aretypically asked

the types of questions that are typically asked when someone iscontacted and told to attend a meeting.

In a high-context culture it is common for the person to ask, “Whowill be at this meeting?” The individual wants to be prepared tointeract correctly.

In contrast, in a low-context culture the individual is likely to ask,“What is the meeting going to be about?”

In the high-context society, the person focuses on the environmentin which the meeting will take place. In the low-context society, theindividual is most interested in the objectives that are to beaccomplished at the meeting.


Entering High and LowContext Situations

High contexts can be difficult to enter if you arean outsider

because you don't carry the context informationinternally, and because you can't instantly createclose relationships

Low contexts are relatively easy to enter if youare an outsider

because the environment contains much of theinformation you need to participate, and becausecan you form relationships fairly soon, and becausethe important thing is accomplishing a task ratherthan feeling your way into a relationship


Contracts French contracts tend to be short (in physical length, not

time duration) as much of the information is availablewithin the high-context French culture.

American content, on the other hand, is low-context andso contracts tend to be longer in order to explain thedetail.

Highly mobile environments where people come and goneed lower-context culture.

With a stable population, however, a higher contextculture may develop.

Trompenaars’ Universalism (low context) andParticularism (high context).


Communication and contextsHigh Context

Implicit communication culture Japanese

Arabs

Latin Americans

Italians

English

French

North Americans

Scandinavians

Germans Low context

Swiss Germans Explicit communicationculture

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Martin Rosch1987 MIR


Monochronic time

• doing one thing at a time• careful planning and scheduling• a familiar Western approach 'time

management'.

Polychronic cultures,

• human interaction is valued overtime

• a lesser concern for 'gettingthings done'

• Aboriginal and Native Americanshave typical polychronic cultures

2- Monochronic time vsPolychronic time


Time as past, present andfuture: exercise

Think of the past, present, and future as being theshape of circles.

Please draw three circles on a sheet of paperrepresenting the past, the present, and the future.

Arrange these three circles in any way that best showhow you feel about the relationship of the past, present,and future. You may use different size circles.

When you have finished, label each circle to showwhich is the past, which one the present, and which onethe future.

Cottle, T. (1967). The circles test: an investigation of perception of temporal relatedness anddominance. Journal of Projective Technique and Personality Assessments, 31, 58-71.

(Cottle,1967)


Connections between the past,present and future across cultures

Riding the Waves ofCultures, FonsTrompenaars, 1993


3- Stereotyping fromthe Cultural Extremes


U.S. managersplaced highvalue on the

tactfulacquisition ofinfluence andon regard for

others.

4- Value systems across nationalboundaries often are different

Numerous interculturalstudies

Similar personalvalues relate to

success.

U.S. Cultural Values Alternative Values Exemples of Management FunctionAffected

Individuals can influence the future (whenthere is a will there is a way).

Life follows a preordained course, andhuman action is determined bythe will of God.

Planning and scheduling

Individuals should be realistic in theiraspirations.

ldeals are to be pursued regardlessof whatis "reasonable."

Goal setting and career development.

We must work hard to accomplish ourobjectives (Puritan ethic).

Hard work is not the only prerequisite forsuccess. Wisdom, luck, and timealso are required.

Motivation and reward system.

A primary obligation of an employee is tothe organization.

Individuel employees have a primaryobligation to their family and friends.

Loyalty, commitment, and motivation

Employees can be removed if they do notperform well.

The removal of an employee from aposition involves a great loss of prestige andwill rarely be done.

Promotion.

Company information should be available toanyone who needs it within theorganization.

Withholding information to gain or maintainpower is acceptable.

Organization, communication andmanagerial style.

Competition stimulates high performance. Competition leads to imbalances anddisharmony.

Career development and marketing.

What works is important. Symbols and the process are mor importantthan the end point.

Communication, planning, and qualitycontrol.


5- Cultural difference:HOFSTEDE

Dutch researcher Geert Hofstede found there are four dimensions of culturethat help to explain how and why people from various cultures behave as theydo.

His initial data were gathered from two questionnaire surveys with over116,000 respondents from over 70 different countries around the the largest organizationally based study ever conducted.

The individuals in these studies all worked in the local subsidiaries of IBM.

As a result, Hofstede's research has been criticized because of its focus on just one company

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5-a Power distance "The extent to which less powerful

members of institutions andorganizations accept that power isdistributed unequally. »

Countries in which people blindly obeythe orders of their superiors have highpower distance.

In societies with high power distance,strict obedience is found even at theupper levels; examples include Mexico,South Korea, and India.

Consequences in companies

Organizations in low-power-distance countries :

Decentralized, flatter organization structures.

a smaller proportion of supervisory personnel,

Organizations in high-power-distance countries

centralized and have tall organizationstructures.

a large proportion of supervisory personnel,

It encourages and promotes inequality betweenpeople at different levels

22


5-b Uncertainty Avoidance Attitudes toward risk

the extent to which people feel threatened byambiguous situations, and have created beliefsand institutions that try to avoid these

people who do not like uncertainty tend to have ahigh need for security and a strong belief inexperts and their knowledge; examples includeGermany, Japan, and Spain. Cultures with lowuncertainty avoidance have people who are morewilling to accept that risks are associated with theunknown, that life must go on in spite of this.Examples here include Denmark and GreatBritain.

23

High-uncertainty-avoidance societies Low-uncertainty-avoidance societies

a great deal of structuring of organizational activities,

more written rules,

less risk taking by managers,

lower labor turnover

less ambitions employees.

Latin countries - Japan.

organization settings with less structuring of activities,fewer written rules, more risk taking by managers,

higher labor turnover,

more ambitious employees.

The organization encourages personnel to use theirown initiative and assume responsibility for theiractions.

Scandinavian et anglo-saxons, Asia, India Afrika


Hofstede's Cultural Dimensions


Cultural Clusters

Power Individualism Masculinity UncertaintyDistance Avoidance

France, Spain + + - +Italy, Belgium + + + +Portugal + - - +Denmark - + + -Germany - + + +UK, US, Ireland - + + -Japan + - + +South Korea + - - +Philippines + - + -

+ indicates high or strong- Indicates low or weak


5-c Individualism / collectivism

Individualism scores Collectivism scores

Wealthy countries Poorer countries

Greater support for the Protestantwork ethic, greater individualinitiative, and promotions based onmarket value

Less support for the Protestant workethic, less individual initiative, andpromotions based on seniority.

The United States, Canada,Australia, Denmark, and Sweden

Indonesia, Pakistan, and a numberof South American countries

Conflict is open and factor ofprogess

Conflict makes people loose theirface, their dignity. Preference forharmony

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Collectivism is thetendency of peopleto belong to groupsor collectives and tolook after each otherin exchange forloyalty.

Individualism is thetendency of people tolook after themselvesand their immediatefamily only.


Masculinity :"a situation in which the dominant values in society are success, money, andthings." femininity : "a situation in which the dominant values in society are caring for others andthe quality of life

5-d femininity / Masculinity

27

low masculinity index high masculinity index

Scandinavia Norway,France, Spain

the Germanic countries, Japan

tend to place great importance on cooperation, afriendly atmosphere, and employment security.Individuals are encouraged to be group decisionmakers, and achievement is defined in terms oflayman contacts and the living environment. Theworkplace tends to be characterized by low stress,and managers give their employees more credit forbeing responsible and allow them more freedom.

place great importance on earnings, recognition,advancement, and challenge. Individuals areencouraged to be independent decision makers,and achievement is defined in terms of recognitionand wealth. The workplace is often characterizedby high job stress, and many managers believe thattheir employees dislike work and must be keptunder some degree of control.

tend to favor small-scale enterprises, and theyplace great importance on conservation of theenvironment. The school system is designed toteach social adaptation. Some young men andwomen want careers; others do not. Many womenhold higher-level jobs, and they do not find itnecessary to be assertive. Less job stress is foundin the workplace, and there is not much industrialconflict.

tend to favor largescale enterprises, and economicgrowth is seen as more important than conservationof the environment. The school system is gearedtoward encouraging high performance. Young menexpect to have careers, and those who do not oftenview themselves as failures. Fewer women holdhigher-level jobs, and these individuals often find itnecessary to be assertive. There is high job stressin the workplace, and industrial conflict is common.


6- Trompenaars’ culturaldimensions

(Trompenaars, 1993)

FGUK

FUK G

UKFG

G FUK

GFUK

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Universalism (ideasand practices can be appliedeverywhere )

Particularism(circumstances influence)

Individualism(people regarding themselvesas individuals)

Communitarianism(people regarding asthemselves

part of a group)

Neutral culture(emotions are held in check.)

Emotional Culture(emotions are expressed openlyand naturaily.)

Diffuse culturepublic space and privatespace are similar in size

Specific culturelarge public space &small privatespace

AscriptionStatus based on position,age, schooling

AchievementStatus based on competency


Concrete cultural differencesin the business world

Arab countries

•Time issue – “Inchallah”•the strong vs. the weakperceptions

•public space•status and rank

Russia

•personal relationships•key rule : patience•different conceptions ofwritten contracts

•exclusivity (exclusivearrangements andnegotiations)

France

•social class &consequences on thesocial interactions

•accustomed to conflict•highly centralized andrigid structures

•work / personal lifebalance (the quality oflife)

China

•technical competence•time : punctuality•strong relationships•belong to a group•less animated : avoiddisplays of affection


GLOBE (Global Leadership andOrganizational Behavior Effectiveness)A multi-country study and evaluation ofcultural attributes and leadership behaviorsamong more than 17,000 managers from825 Organizations in 62 countries.

7- Culture and Management

GLOBE

Basic assumptions: Certain attributes that distinguish one culture from others can be used to predict the

most suitable, effective, and acceptable organizational and leader practices withinthat culture.

Societal culture has a direct impact on organizational culture

Variable

•Assertiveness•Future Orientation•Gender Differentiation•Uncertainty avoidance•Power distance•Collectivism/Societal•In-group collectivism•Performance orientation•Humane orientation

Highest Ranking

•Spain, U.S.•Denmark, Canada•South Korea, Egypt•Austria, Denmark•Russia, Spain•Denmark, Singapore•Egypt, China•U.S., Taiwan•Indonesia, Egypt

Medium Ranking

•Egypt, Ireland•Slovenia, Egypt•Italy, Brazil•Israel, U.S.•England, France•Hong Kong, U.S.•England, France•Sweden, Israel•Hong Kong, Sweden

Lowest Ranking

•Sweden, New Zeeland•Russia, Argentine•Sweden, Denmark•Russia, Hungary•Denmark, Netherlands•Greece, Hungary•Denmark, Netherlands•Russia, Argentina•Germany, Spain


B- OrganizationalCultures


Edgar Schein’s definition:

shared basic assumptions

learned by the group

considered as valid

taught to new members

the correct way

3 cognitive levels =>

1- What is OrganizationalCulture?


Important characteristics ofOrganizational Culture


Unbalanced interaction

Prevalence of national culture

impact on employees’ performance (Hofstede)

cultural values are not easily changed.

=> Nancy Adler: “Far from reducing national differences,organizational culture maintains and enhances them”

DOCSA database provided by Hofstede for MNCs

(Diagnosing Organizational Culture for Strategic Application)

Regional clusters also host different organizational cultures

Europe Management Characteristics (Lessem and Neubauer)

=> Difficult to do business, even with your neighbour

Interaction between nationaland organizational cultures


2- Seizing Culture

35

SYMBOLS

MYTHSRITES

HEROES

SHAREDVALUES

NETWORKS

NETWORKS


Mechanistic structures Organic structures

Tall, centralized hierarchy ofauthority

Flat, decentralized hierarchy ofauthority

Top-down communication anddecision making

Lateral communication and decisionmaking between people in differentdepartments

Great use of standardization : manydetailed rules and standardoperating procedures

Great use of mutual adjustment :much face-to-face communicationin task forces and teams

Clearly specified tasks and rolesand a defined division of labor

Deliberately ill-defined tasks androles and a loose division of labor

EADS Schlumberger Schneider L’Oréal

What is my Organization’stype?


2-a Determining OrganizationalCulture (Trompenaars way)

3 aspects (Trompenaars)

General relationship between the employees and theirorganization

The hierarchical system of authority that defines the roles ofmanagers and subordinates

How employees perceive the MNC’s purpose, destiny and goal,how they see themselves in the company.

Examined in relation to 2 variables:

Equity / hierarchy

Person/task


Trompenaars’ typology of organizational cultures:nationality and organizational culture


Patterns of Cultures acrossNations

39

Relationships

InformalFormal

Hierarchy

Centralised

DecentralisedEgalitarian

Tasks

SINSIN

USUS

NOR

UKUK

GERGERJAPJAP

FRAFRA

INCUBATORINCUBATOR GUIDED MISSILEGUIDED MISSILE

FAMILYFAMILY BUILDING A TOWERBUILDING A TOWER

Power orientedPower oriented Role orientedRole oriented

Fulfilment orientedFulfilment oriented Project orientedProject oriented

SWE

SPA

CAN

HOLDEN

KOR

BEL

SWI

AUS

ITAITA

BRA


Dk CHS Fin Ir

Gr SPTur I Ind

N USACan UK

Aus CorF

Trompenaars’ typlogy ofcultures

Trompenaars 1994

CORPORATE CULTURE

Characteristic FamilyPerson/Hierarchy

Eiffel TowerTask/Hierarchy

Guided MissileTask/Equity

IncubatorPerson/Equity

Relationshipsbetween

employees

Diffuserelationships to

organic whole towhich one is

bound

Specific role inmechanicalsystem ofrequired

interaction

Specific tasks incybernetic

system targetedon sharedobjectives

Diffuse,spontaneousrelationships

growing out ofshared creative

processAttitude toward

hierarchyStatus is ascribedto parent figures

who are close andpowerful

Status ascribed tosuperior rolesthat are distantyet powerful

Status achievedby project groupmembers whocontribute totargeted goal

Status achievedby individualsexemplifyingcreativity and

growth

Ways ofthinking and

learning

Intuitive, holistic,lateral and error-

correcting

Logical,analytical,

vertical andrationallyefficient

Problem centred,professional,

practical, cross-disciplinary

Process-oriented,creative, ad-hoc,

inspirational

Attitudestoward people

Family members Human resources Specialists andexperts

Co-creators

Ways ofchanging

“Father” changescourse

Change rules andprocedures

Shift aim astarget moves

Improvise andattune

(adaptation)

Ways ofmotivating and

rewarding

Intrinsicsatisfaction on

being loved andrespected

Promotion togreater position,

larger role

Pay or credit forperformance andproblems solved

Participation inthe process ofcreating new

realitiesManagement By subjectives By job

descriptionBy objectives By enthusiasm

Criticism andconflict

resolution

Turn other cheek,save other’s face,do not lose power

games

Criticism isaccusation ofirrationalism

unless there areprocedures to

arbitrate conflicts

Constructivetask-related only,then admit errorsand correct fast

Improve creativeidea, not negate

it.


One dimension differentiates• flexibility/dynamism• stability/order and control

The second dimension differentiates• internal orientation/ integration and unity• external orientation/ differentiation and rivalry

2-a Determining OrganizationalCulture (Cameron & Quinn’s way)

42

What is an effective organization ?

Effectiveness drawn from 2 factors :


4 different workplaces

The clan The Adhocracy

The Hierarchy The Market

Extern

alfocu

san

dd

ifferentiation

Flexibility and discretion

Inte

rnal

focu

san

din

tegra

tion

Stability and control

10

10

20

30

40

50

20

30

40

50


Four Culture Profiles

The Clan Culture focuses on:*internal maintenance withflexibility*concern for people*sensitivity to customers

The Adhocracy Culture focuses on :*external positioning*a high degree of flexibility andindividuality

The Hierarchy Culture focuses on :*internal maintenance*need for stability and*control

The Market Culture focuses on :*external positioning*need for stability and control

44

Catherine Voynnet Fourboul45

Cultural Profiles and main managerial skills

Leaders You Are Likely to Meet…

46

Type Who They Are What THey Do Their influence isbased on

Whay theypursue

CLAN Facilitator People andprocess oriented

Manage conflict and Seekconsensus

Getting peopleinvolved in thedecision making

Participationand openness

CLAN Mentor is caring andempathetic

cares for the needs ofindividuals

mutual respect andtrust

morale andcommitment

HIERARCHY Expert is technicallyexpert and wellinformed

keeps track of all detailsand contributes expertise

information control Informationmanagement

HIERARCHY Coordinator Dependable andReliable

Maintains the structureand flow of the work

Situational mgt,managing schedulesand assignments

Stability andcontrol

ADHOCRACY Innovator creative Envisions change.Generates hope in others

Anticipation of a betterfuture

Innovation andadaptation

ADHOCRACY Visionary Future oriented inthinking

Emphasizes possibilitiesand probabilities

Knows where theorganization is going

Strategicdirection andongoingimprovement

MARKET Competitor Agressive anddecisive

Get energized bycompetitive situations

Understandingcompetitors

Goals andtargets

MARKET Producer Task oriented andfocused

Gets things done throughhard work

Intensity and rationalarguments around

doing things

Productivity


Managing Multiculturalism Challenge of leading diverse workforces, both

domestically and internationally:

Domestic multiculturalism

Group multiculturalism

Homogeneous groups

Token groups

Bicultural groups

Mutlicultural groups

N. Adler: specific cultural issues depending onthe evolution of the firm


Managing Multiculturalism (2)

Source: Nancy J. Adler, 5th edition (South-Western College Pub: 2007),Chapter 5, “Managing Multicultural Teams”.


Diversity: Advantages andDisadvantages

Pros

Increased creativity:more and better ideas

Limited groupthink

Cons

Mistrust

Miscommunication

Stereotyping

… which can cause stressand lead to decreasedeffectiveness


C- Cross culturalencounter


Perspectives on culture… Culture as a key concept

… but hard to conceptualize

Trap of stereotyping

Discrepancy between systematic approach and reality(individual, particular issues)

=> A call for personal experience.


Reflecting on Organisation Studies

Assessing concepts and methods of inquiryused in Organisation studies

Examining interactions between Organisationaland Occupational cultures

Recommendations:

More time on the field to observe and really getimmersed in culture

Expand the focus to different cultures

Develop a multidisciplinary approach to culture.

Edgar Schein’s article:Culture, The Missing Concept in OrganizationStudies


Cultural

Differences


Attribution in globalmanagement

Verbal Conversation Attribution

American: How long will it take you to finishthis report?

American: I asked him to participate.Greek: His behavior makes no sense.He is the boss. Why doesn't he tell me?

Greek: I do not know. How long should ittake?

American: He refuses to take responsibility.Greek: I asked him for an order.

American: You are in the best position toanalyze time requirements.

American: I press him to take responsibilityfor his own actions.Greek: What nonsense! I better give him ananswer.

Greek: 10 days. American: He lacks the ability to estimatetime; this time estimate istotally inadequate.

American: Take 15. Is it agreedyou will do it in 15 days?

American: I offer a contract.Greek: These are my orders: 15 days

ln fact the report needed 30 days of regular work. So the Greekworked day and night, but at the end of the 15th day, he still neededone more day's work.

54


Attribution in globalmanagement

Verbal Conversation Attribution

American: Where is the report? American: I am making sure he fulfillshis contract.Greek: He is asking for the report.

Greek: It will be ready tomorrow. Both attribute that it is not ready.

American: But we had agreedit would be ready today.

American: I must teach him to fulfill acontract.Greek: The stupid, incompetent boss!Not only did he give me wrong orders,but he does not even appreciate that1 did a 30-day job in 16 days.

The Greek hands in hisresignation.

The American is surprised.Greek: I can't work for such a man.

55


INTERCULTURALLYCOMPETENT LEADER

Sheridan E.,The intercultural Leadshipcompetencies for US leaders inthe Era of Globalization,PhDisssertation ,2005

56


Development of cross-culturalcompetence

Awareness• Increased

awareness of one’sown culturalperspective

Respect• Appreciate cultural

differences

Reconciliation• Resolve

differences,integration,adaptation

Education Experience Reflection Openness Feedback

Increasing crosscultural competence


Conditions for high-performingmulticultural teams?

Depends on

Task

Team’s stage of development

How the team managesdiversity

Guidelines to manageculturally diverse teams

Task-Related selection

Recognizing differences

Establishing a vision or asuperordinate goal

Equalizing Power

Creating mutual respect

Giving feedback


D - HQ Subsidiaryattitude


Intl HRM

Different HRM positions fordifferent Forms of Intl HRM

Operation ofparent countryfirms overseas

Operation offoreign firms inthe homecountry

Employment offoreign citizens

60


Globalintegration

Local responsiveness

High

Low

Global strategy/environment

Transnationalstrategy/environment

Internationalstrategy/environment

Multinationalstrategy/environment

Cameras

Electronics Aircraft

Telecommunications

Drugs-pharmaceuticals

Aerospace

Computers

Metals

Paper

Textiles

Machinery

Beverages

Food Tobacco

Clothing

MNCs environment and fittheory

[GHOSHAL & NOHRIA 1993][BARTLETT & GHOSHAL 1998]

61


The IHR manager role

Explicitly recognize howhome-country ways ofmanaging human resourcesare a function of culturalvalues and assumptions

Recognize that these waysare neither better nor worsethan others around the world

More creative and effectiveways of managing humanresources can be learned fromother cultures

Comparative awareness,comparison of the varioussystems

Push at the local orsubsidiary level topreserve uniqueness.

Push from headquarters toconform to a global culture

What needs to be done differently in thecontext of requirements for integration ?

SENSITIVITY

LOYALTY

62


HQ Subsidiary attitudes

Perlmutter (1985):

proposed certain orientations which help todevelop a company and the establishment of itsinternational subsidiaries

Four different dispositions:

Ethnocentric: values & interests of parentcompany guide strategic decisions

Polycentric: strategic decisions are tailored tosuit cultures of subsidiaries

Regiocentric: company blends its own interestswith those of regional subsidiaries

Geocentric: integration of global approach toinclude a little bit of everything


Graphical Overview ofApproaches

Source: C. Voynnet Fourboul & F. Bournois, Strategic Communication withEmployees in Large European Companies: A Typology in EuropeanManagement Journal, 03-04/ 1999, pp. 204-217


Ethnocentric Polycentric Regiocentric Geocentric

DominatingCulture

Home country Host country Regional Global culture

Strategy Global integration NationalResponsiveness

Regionalintegration andnationalresponsiveness

Global integrationand nationalresponsiveness

Governance Top down Bottom up (eachsubsidiary decideson local objectives)

Mutually negotiatedbetween regionand its subsidiaries

Mutually negotiatedat all levels of thecorperation

PersonnelDevelopment

People of homecountry aredeveloped tooccupy keypositionsanywhere in theworld

People of localnationality aredeveloped for keypositions in theirown country

Regional peopleare developed forkey positionsanywhere in theregion

Best people aroundthe world aredeveloped for anyposition around theworld

Distribution ofprofits

Repatriation ofprofits to homecountry

Retention of profitsin host country

Redistributionwithin region

Redistributionglobally

Different actions depending on company’sorientation

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