Chapter 2

Chapter 2 Managing Across Cultures
Chapter 2(1) _ Global Culture2

Chapter 2(2) _ Multicultural Teams11 Chapter 2(3) _ Motivation in a Global Context36 Chapter 2(4) _ Decision Making51 Chapter 2(5) _ Leadership68
Chapter 2(6) _ Global HRM92
Cross-Cultural Management
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.g., the Womens League for Peace and Freedom Religious groups Regional associations, e.g., Economic Union Business organizations
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 dont have a sense of the appropriate rules by which all can live
TRANSITION TIME?
Are we at a point where nationality is less important to culture than in the past?
All of Us
WE SEE THAT SOME VALUES ARE COVERGING, OTHERS ARE NOT

The Planet Project The Roper Poll of Values The World Values Survey The GLOBE Project
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
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
QUESTIONS OF GLOBAL AND LOCAL CULTURES

Will global culture replace or exist with local cultures? Will global culture bring positive or negative outcomes?
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Chapter 2(2)- Multicultural Teams
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Group
Two or more interacting individuals who come together to achieve some objectives.
Groups can be either formal or informal, and further subclassified into command, task, interest, or friendship categories.
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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.g., group of employees enjoying lunch together)
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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
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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
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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
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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
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organizational goals Satisfy member needs Maintain team survival
Team Processes
Team development Team norms Team roles Team cohesiveness
Groups Across Cultures

Two cultural dimensions are especially relevant:
Individualism-Collectivism
Power Distance Also Uncertainty Avoidance; e.g., potential for Role Conflict (esp. in multi-functional teams)
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The Challenge in Shaping Team Players

Greatest where... 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
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Cross-Cultural Differences
Crosscultural differences in intergroup processes Collectivistic cultures Expect little expression of conflict; favor suppressing conflict Prefer to personalize interaction; focus on people, despite what group they represent Group membership is an important part of identity and interaction
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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?
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Interpersonal Relationships
Individualists tend to have more friends, but with lesser intensity level; Collectivists tend to have less friends, but with higher intensity level. Individualists are less suspicious towards outgroup members and easier to make initial contact; Collectivists have stronger bonds with in-group members
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Differential Group Processes

Conformity: who is more conforming? Formal/regulated participation vs. spontaneous Social loafing versus social striving Preferences for group vs. individual rewards
Equality (you deserve what you get) vs. Equity (you get what you deserve) vs. Need based decisions (to all according to their needs)
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Conformity
Crosscultural 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, and the United States
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Teams Cultural Composition

Cultural Diversity: the number of different cultures represented in the group;
Cultural Norms: the orientations of the specific cultures represented in the group toward group dynamics and processes; and Relative Cultural Distance: the extent to which group members are culturally different from each other
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Surface and Deep Diversity

In multicultural teams, diversity can be in the form of: Surface-level (black-American; CaucasianAmerican; French and Vietnamese) and/or
Deep-level (Irish and English; Singaporean and Chinese; N. and S. Africans)
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Dynamics of Team Diversity

Social Context Org. Context Group Dynamics
Diversity Surface Deep Affective Reactions Cohesion Satisfaction Commitment Team Behaviours Communication Conflict Cooperation Long-term Conseq. Performance Promotion Turnover
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Jackson, 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. Diversity, in general, and cultural/ethnic diversity in particular, have mixed effects on team processes and performance; Less effect on simpler, motor-based tasks; more effect on complex, interdependent teamwork
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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; 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.
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In the longer term, high-heterogeneous teams performance increased as they managed to create a hybrid-culture; Such hybrid culture was not created in moderately heterogeneous teams, whose performance was lower than both high and low heterogeneity teams. Team processes mediated the effects of heterogeneity on team performance, such that: In homogenous groups, members perceived many similarities between themselves (remember SIT?); trust, shared mental models and open communication developed early on in the teams life
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In moderately heterogeneous teams, a dynamic of us vs. them prevailed, with the two sub-groups sticking to themselves in times of conflict, resulting in little cross sub-group cooperation; In highly heterogeneous teams, as time passed, members go to know each other better and since there were no dominant sub-groups, they were free to form a hybrid culture-unique to their team and overarching each members national identity. Implications for joint ventures and projects where two cultures (national or organizational) get together to try to create a cooperative structure
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Diversity and Teams

Overall, 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
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Conditions for Effectiveness

More Effective Task Stage Conditions Innovative Divergence (earlier) Differences Recognized Task-based member selection Pluralism Equal Power Superordinate goals External feedback Less Effective Routine Convergence (later) Differences Ignore Culture-base members selection Ethnocentrism Cultural Dominance Individual goals No feedback/autonomy
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Some Implications
Investment in diverse teams is more sensible for the longer-term, for complex tasks and when team members are (relatively) pluralistic More careful task design is needed Positive feedback, early on Preparation and training, through conceptual and experiential approaches is recommended
Strive to create a third culture through superordinate goals and neutralization of differences
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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, class) Idiosyncratic cultural variables, e.g., intellectual style (Russians vs. N. Americans) Prior experience with different cultures plays important role (usually for the better) Virtual Teams: added complexity
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Chapter 2(3)-Motivation Global Context
in a
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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)
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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
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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
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Motivation Theories Are Culture Bound

Hierarchy of Needs Need for Achievement
Goal-Setting Theory
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Attitudes and Personality

Personality characteristics People in individualistic cultures (United States) have stronger need for autonomy than people in grouporiented 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)
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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: selfactualization Latin America: security, affiliation France and Germany: need for security New Zealand: belongingness and love McClelland: needs for affiliation, power and achievement
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International Aspects of Job Design

Herzberg: Two Factor Theory Individual and groupbased job design U.S. managers have mostly used individual approaches to job design Recent shifts to groupbased approaches Managers in other industrialized countries have mainly emphasized groupbased job design
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Job Design (Cont.)

Changing specific job characteristics Belgium, Mexico, Greece, Thailand: not likely to accept efforts to increase autonomy and task identity French managers particularly dislike recommendations to decentralize decision authority. Subordinates do not expect them to do so Quality circles: big success in Japan, but only partial in the US
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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
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Cognitive and Behavioral Theories of Motivation

Both assumptions reflect U.S. values of free will, individualism, 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
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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
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Cognitive and Behavioral Theories (Cont.)

Equity theory: complex crosscultural effects Reward allocation decisions followed equity theory premises in U.S., Russian, and Chinese samples Other studies Chinese emphasized seniority in their reward decisions more than Americans. Eastern European transition economies: endorsed positive inequity more than American students
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Culture & Motivation

Research on goal setting theory in several countries Results consistent with U.S. work that formulated the theory Some cultural differences U.S. students not affected by how goals were set Israeli students performed better when goals were set participatively; consistent with culture of cooperation
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Idiosyncratic Factors
Beyond cultures variance along the major cultural value dimensions, there are specific aspects anchored in nations history and expressed through its symbols and language.
Ignoring such factors may render motivational techniques ineffective or even result in de-motivation; e.g.:
Slay the Dragon!!

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Chap 2(4)- Decision Making across Cultures
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Decision Making
Process of choosing a course of action among alternatives
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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. Consensus based decisions * Process: Participative vs. Autocratic
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Value of Rationality
Strong preference for rational D.M. vs. Occasional or low value on rationality; In some cultures more emphasis on: Emotions Religion Ideology
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Rational Decision Making

The Rational Approach assumes that Managers follow a systematic, step-by-step process. Organization is economically based and is managed by decision makers who are entirely objective and have complete information. It assumes that rational choices are: Consistent Value-maximizing Within specified constraints
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The Six-Step Rational Decision-Making Model

1. Define the problem 2. Identify decision criteria 3. Weight the criteria 4. Generate alternatives 5. Rate each alternative on each criterion 6. Compute the optimal decision
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Cultural Contingencies in Decision Making

Step 1. Problem Recognition Problem solving; change Situation acceptance
2. Information Search
Gathering facts
Gathering ideas and possibilities Past/present/future based on stability

Group level; by senior management; slowly Fast; broad participation
3. Construction of Alternatives
4. Choice
New, future oriented based on change

Individual level; delegation of responsibility; fast Slow; top-down
5. Implementation
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Case Study: The Road to Hell (p. 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?
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Stages of Moral Development

Level
Principled
Stage Description
6. Following self-chosen ethical principles, even if they violate the law 5. Valuing rights of others; upholding non-relative values and rights regardless of the majoritys opinion
Conventional
4. Maintaining conventional order by fulfilling obligations to which you have agreed 3. Living up to what is expected by people close to you 2. Following rules only when its in your immediate interest 1. Sticking to rules to avoid physical punishment
Pre-conventional
Adapted from L. Kohlberg, Moral Stages and Moralization: The Cognitive-Developmental approach, pages 34-55 in Moral Develop and Behavior: Theory, Research, and Social Issues, ed. T. Lickona (New York: Holt, Rinehart & Winston, 1976).
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Three Different Criteria in Making Ethical Choices

Utilitarian Criterion - made solely on basis of outcomes or consequences
Focus on Rights - 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
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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
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Two ethical views
Cultural relativism
Multinational organization
Ethical realism
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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
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- Cultural relativism (cont.) Three points Moral judgments are statements of feelings and opinions; 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
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- 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
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Ethical realism Morality does not apply to international transactions Because no power rules over international events, people will not behave morally Because others will not behave morally, one is not morally required to behave ethically
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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 companys national law
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Chapter 2(5)-Leadership
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Definitions
There are almost as many definitions of leadership as there are theoriessome of the more common ones are: Ability to influence a group toward the achievement of goals.
The process whereby one individual influences other group members towards the attainment of defined group or organisational goals.
The process of creating vision for others and having the power to translate it into a reality and sustain it.
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Foundation for Leadership

Leadership Behaviors and Styles
Authoritarian Leadership
Paternalistic Leadership Participative Leadership
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The use of work-centered behavior designed to ensure task accomplishment. The use of work-centered behavior coupled with a protective employee centered concern.
The use of both work- or taskcentered and people centered approaches to leading subordinates.
LeaderSubordinate Interactions
Authoritarian Leader
Subordinate
Subordinate
Subordinate
One-way downward flow of information and influence from authoritarian leader to subordinates.
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Paternalistic Leader
Subordinate
Subordinate
Subordinate
Continual interaction and exchange of information and influence between leader and subordinates.
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Participative Leader
Subordinate
Subordinate
Subordinate
Continual interaction and exchange of information and influence between leader and subordinates.
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Contingency Theories
Leaders use various leadership styles/behaviours; Quality of leadership experience depends on several situational factors, including followers and task type. Path-Goal Model - Leader assists followers in attaining goals and ensures goals are compatible with overall objectives
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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.
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Path-Goal Theory
Four basic leadership styles: Instrumental (directive): An approach focused on providing specific guidance and establishing work schedules and rules. Supportive: A style focused on establishing good relations with subordinates and satisfying their needs. Participative: A pattern in which the leader consults with subordinates, permitting them to participate in decisions. Achievement Oriented: An approach in which the leader sets challenging goals and seeks improvements in performance.
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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

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Leadership
Core values of countrys culture often define type of leadership behavior that is acceptable In high PD, an emphasis on hierarchical relationshipsdirective approaches accepted; Hong Kong, Latin American countries; Russia In low PD, hierarchical relationships are not valued supportive (or participative) approaches accepted; Austria, Scandinavia, Israel
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Leadership
Individualism-Collectivism Leader as a paternal figure vs. leader as an expert Degree to which intervention of leader in followers private lives is expected and accepted Masculine/Feminine Acceptance of women as leaders Accepted style for leaders Long-Term-Orientation Elect leaders for four yearsor forty? Leaders style: first among equals (China) or class of its own (Arab Countries)
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GLOBE Project
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
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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, 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
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GLOBE Cultural Variable Results

Variable
Assertiveness Future orientation
Highest Ranking
Spain, U.S.
Medium Ranking
Egypt, Ireland
Lowest Ranking
Sweden, New Zealand Denmark, CanadaSlovenia, Egypt Russia, Argentina Italy, Brazil Sweden Denmark Russia, Hungary
Gender differentiation South Korea, Egypt
Uncertainty avoidance Austria, Denmark Israel, U.S. Power distance Collectivism/Societal In-group collectivism Russia, Spain Denmark, Singapore Egypt, China
England, France Demark, Netherlands Hong Kong, U.S. Greece, Hungary England, France Denmark, Netherlands Sweden, Israel Russia, Argentina Germany, Spain
Performance orientation U.S., Taiwan Humane orientation

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Indonesia, Egypt Hong Kong, Sweden
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
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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
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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)
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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 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?
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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 support participative leadership practices?
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Capacity for Leadership and Initiative Sharing Information and Objectives Participation Internal Control
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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?
Japanese vs. U.S. Leadership Styles

Dimension Employment Evaluation Career Paths Dec. Making Control Mech. Japan Often for life Slow, takes many years Very general; based on rotations Group based Implicit & informal; reliance on trust and goodwill Shared collectively Broad and covers the whole life US Often short-term Fast: those not promoted often leave v. specialised; people stay in one area By individual managers Explicit; based on knowing the control mechanisms Assigned individually limited to work-life
Responsibility Concern for employees

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Differences in Middle Eastern and Western Management
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Differences in Middle Eastern and Western Management
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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 womenbut, Israel, India, Pakistan and other exceptions Charismatic leadership is not universally accepted
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Chapter 2(6)-GLOBAL HUMAN RESOURCES
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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
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Global Staffing Pressures
Candidate selections Assignment terms Relocation Immigration Culture and language Compensation Tax administration Handling spouse and dependent matters
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Economic Differences
Translate into differences in HR practices:
Espousing ideals of free enterprise Wage costs vary Other labor costs vary: severance pay; holidays
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International Labor Relations

Union membership varies widely worldwide
29%
80% 39%
24%
44%
14%
39%
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23%
International Staffing
Multinational corporations (MNCs) use several types of international managers: Locals Expatriates Home-country nationals Third-country nationals
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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

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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
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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
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Advantages of using TCNs Require less compensation Good working knowledge of the region Given home office experience, often can achieve objectives better than other types of managers Offer different perspectives
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Failure Rates of International Assignments International assignment failure can cost hundreds of thousands of euros
Europe Japan US 0
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% Failure
20
40
60
Why International Assignments Fail
Personality Persons intentions Family pressures Lack of cultural skills Other non-work conditions like living and housing conditions, and health care
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Improving Failure Rates/Solutions

Provide realistic previews Have a careful screening process Improve orientation Provide good benefits Test employees fairly Shorten assignment length
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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
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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
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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 brittleas if criticism might cause him/her to Is Flexible break.* Pursues feedback even when others are reluctant to give in. *Reverse scored Doesnt get so invested in things that she/he cannot change when something doesnt work.
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Performance Appraisal of International Mangers

Five suggestions for improving the expatriate appraisal process:
1. Stipulate the assignments difficulty level. For example, being an expatriate manager in China is generally considered more difficult than working in England, and the appraisal should take such difficultylevel differences into account. 2. Weight the evaluation more toward the on-site managers appraisal than toward the home-site managers distant perceptions of the employees performance.
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3. If however (as is usually the case), the home-site manager does the actual written appraisal, have him or her use a former expatriate from the same overseas location to provide background advice during the appraisal process. 4. Modify the normal performance criteria used for that particular position to fit the overseas position and characteristics of that particular locale. 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.
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The New Workplace: Sending Women Abroad

In the US, 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
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Five suggestions for improving the expatriate appraisal process:
1. Stipulate the assignments difficulty level. For example, being an expatriate manager in China is generally considered more difficult than working in England, and the appraisal should take such difficultylevel differences into account. 2. Weight the evaluation more toward the on-site managers appraisal than toward the home-site managers distant perceptions of the employees performance.
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3. If however (as is usually the case), the home-site manager does the actual written appraisal, have him or her use a former expatriate from the same overseas location to provide background advice during the appraisal process. 4. Modify the normal performance criteria used for that particular position to fit the overseas position and characteristics of that particular locale. 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.
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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
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Culture Shock:
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): wont/cant adapt... rejects own...
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Phases
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
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Symptoms
homesickness boredom withdrawal (reading is an obsession, focus on home nationals, avoid host nationals) excessive sleep need, compulsive eating and drinking irritability exaggerated cleanliness
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Symptoms (cont.)
marital stress, family tension, conflict stereotyping host nationals hostility towards host nationals loss of ability to work effectively fits of weeping
psychosomatic illnesses
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Phases
Gradual Adjustment
can manage, cope with situation now

Biculturalism/Coping ability to function in both cultures, acceptance of local customs and values for what they are (not going native), possible to get by, positive and growth gaining experience
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Nature of Culture Shock

Not a jolt, rather a series of cumulative experiences
Cultural differences become focus of attention

Foreign ways are quaint no more... they seem inferior to your own
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What Special Training Do Overseas Candidates Need? Impact of cultural differences Understanding attitude formation Factual knowledge about target country Language and adjustment/adaptability skills
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Four Step Approach to Training Overseas Candidates

Level 1 training focuses on the impact of cultural differences, and on raising trainees awareness of such differences and their impact on business outcomes. Level 2 training aims at getting participants to understand how attitudes (both negative and positive) are formed and how they influence behavior. Level 3 training provides factual knowledge about the target country. Level 4 training provides skill building in areas like language and adjustment and adaptation skills.
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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
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Low
Months
Years
Repatriation of Expatriates
Repatriation Return to ones 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
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Repatriation Problems
Leaving the firm prematurely Mediocre or makeshift jobs Finding former colleagues promoted Reverse culture shock
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Repatriation
Several steps can be taken to avoid repatriation problems:
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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

Chapter 2

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Chapter 2

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Chapter 2 Managing Across Cultures

Chapter 2(1) _ Global Culture2

Chapter 2(6) _ Global HRM92

Chapter 2(1) _Global Culture

CULTURAL MESSAGES COME FROM MULTIPLE SOURCES

PEOPLE LOOK AT ALTERNATIVE ENTITIES FOR CULTURAL DIRECTION

Multiple messages and sources create CONFUSION AND UNCERTAINTY

WE SEE THAT SOME VALUES ARE COVERGING, OTHERS ARE NOT

GLOBE RESPONSES ON GENDER EGALITARIANISM SHOWS COVERGENCE ON SHOULD BE

Confucian East Europe

GLOBE RESPONSES ON HUMANE ORIENTATION ALSO SHOWS COVERGENCE ON SHOULD BE

Confucian East Europe

QUESTIONS OF GLOBAL AND LOCAL CULTURES

Chapter 2(2)- Multicultural Teams

Reasons for Team Popularity

Facilitate employee participation in operating decisions

Basic Group Concepts

Team Effectiveness Model

organizational goals Satisfy member needs Maintain team survival

Groups Across Cultures

The Challenge in Shaping Team Players

Power Distance and SDWTs

Differential Group Processes

Teams Cultural Composition

Surface and Deep Diversity

Deep-level (Irish and English; Singaporean and Chinese; N. and S. Africans)

Dynamics of Team Diversity

Jackson, Joshi & Erhardt (2003)

Earley & Mosakowski (2000)

Earley & Mosakowski (2000)

Earley & Mosakowski (2000)

Diversity and Teams

Conditions for Effectiveness

Diversity: Beyond the Obvious

Chapter 2(3)-Motivation Global Context

Drive toward goal to satisfy need

Attainment of goal (need satisfaction)

Motivation Theories Are Culture Bound

Attitudes and Personality

Need Theories of Motivation

International Aspects of Job Design

Job Design (Cont.)

Cognitive and Behavioral Theories of Motivation

Cognitive and Behavioral Theories of Motivation

Cognitive and Behavioral Theories

Cognitive and Behavioral Theories (Cont.)

Culture & Motivation

Slay the Dragon!!

Chap 2(4)- Decision Making across Cultures

Rational Decision Making

The Six-Step Rational Decision-Making Model

Cultural Contingencies in Decision Making

Gathering ideas and possibilities Past/present/future based on stability

New, future oriented based on change

Case Study: The Road to Hell (p. 512)

Stages of Moral Development

Three Different Criteria in Making Ethical Choices

Focus on Rights - made consistently with fundamental liberties and privileges

Ethical Aspects of Decisions

Operate in many countries; subject to the laws of those countries

Ethical Aspects of Decisions

Ethical Aspects of Decisions

Ethical Aspects of Decisions