Chapter Three
Developing Global
Managers
McGraw-Hill/Irwin
Copyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved.
After reading the material in this chapter,
you should be able to:
• Define ethnocentrism and explain what
Hofstede concluded about applying
American management theories in other
countries.
• Identify and describe the nine cultural
dimensions from the GLOBE project.
• Draw a distinction between individualistic
cultures and collectivist cultures.
3-2
After reading the material in this chapter,
you should be able to:
• Demonstrate your knowledge of these two
distinctions: high-context versus lowcontext cultures and monochronic versus
polychronic cultures.
• Explain what the GLOBE project has
taught us about leadership.
• Identify an OB trouble spot for each stage
of the foreign assignment cycle
3-3
A Model of Societal and
Organizational Cultures
• Societal culture
- Beliefs and values about what is desirable and
undesirable in a community of people, and a
set of formal or informal practices to support
the values
3-4
Cultural Influences on Organizational
Behavior
Figure 3-1
3-5
Managing Societal and Organizational
Culture
• Employees bring their societal culture to
work with them in the form of customs and
language
• Organizational culture affects an
individual’s values, ethics, attitudes,
assumptions, and expectations
3-6
Ethnocentrism
• Ethnocentrism
- belief that one’s native country, culture,
language, and behavior are superior to all
others.
3-7
Dealing with Ethnocentrism
• Managers can effectively deal with
ethnocentrism through:
- education
- greater cross-cultural awareness
- international experience
- a conscious effort
to value cultural
diversity
3-8
Question?
Patricia has lived in the US her entire life.
She believes that the US is the greatest
country in the world. Her belief is an
example of _____.
A. Societal norm
B. Cultural paradox
C. Ethnocentrism
D. Collectivism
3-9
The Hofstede Study: How Well Do US
Management Theories Apply in Other Countries
• Power distance – How much inequality
does someone expect in social situations?
• Individual-collectivism – How loosely or
closely is the person socially bonded?
3-10
The Hofstede Study: How Well Do US
Management Theories Apply in Other Countries
• Masculinity-femininity – Does the person
embrace competitive, performanceoriented traits or nurturing, relation-oriented
feminine traits?
• Uncertainty-avoidance – How strongly
does the person desire highly structured
situations?
3-11
The Hofstede Study: How Well Do US
Management Theories Apply in Other Countries
1. Management theories and practices
need to be adapted to local cultures
2. Cultural arrogance is a luxury individuals,
companies, and nations can no longer
afford in a global economy
See excerpt of
Hofstede article
3-12
Five Cultural Perspectives
• Basic cultural dimensions
• Individualism versus collectivism
• High-context and low-context cultures
• Monochronic and polychronic time
orientation
• Cross-cultural leadership
3-13
Becoming Cross-Culturally Competent
• Cultural intelligence
- ability to interpret ambiguous cross-cultural
situations correctly
3-14
Project GLOBE
• GLOBE (Global Leadership and
Organizational Behavior Effectiveness)
- attempt to develop an empirically based
theory to describe, understand, and predict
the impact of specific cultural variables on
leadership and organizational processes and
the effectiveness of these processes
3-15
Cultural Dimensions from
the GLOBE Project
• Power distance – How much unequal
distribution of power should there be in
organizations and society?
• Uncertainty avoidance – How much should
people rely on social norms and rules to
avoid uncertainty and limit unpredictability?
3-16
Cultural Dimensions from
the GLOBE Project (cont.)
• Institutional collectivism – How much
should leaders encourage and reward
loyalty to the social unit?
• In-group collectivism – How much pride
and loyalty should individuals have for their
family or organization?
3-17
Cultural Dimensions from
the GLOBE Project (cont.)
• Gender egalitarianism – How much effort
should be put into minimizing gender
discrimination and role inequalities?
• Assertiveness – How confrontational and
dominant should individuals be in social
relationships?
3-18
Cultural Dimensions from
the GLOBE Project (cont.)
• Future orientation – How much should
people delay gratification by planning and
saving for the future?
• Performance orientation – How much
should individuals be rewarded for
improvement and excellence?
3-19
Cultural Dimensions from
the GLOBE Project (cont.)
• Humane orientation – How much should
society encourage and reward people for
being kind, fair, friendly, and generous
3-20
Countries Ranking Highest and Lowest
on the GLOBE Cultural Dimensions
3-21
Question?
Rebecca has always focused on delaying
gratification and saving money for the well-being
and education of her children and her own
retirement. According to dimensions from the
GLOBE project, Rebecca's behavior reflects:
A. Future orientation
B. In-group collectivism
C. Masculinity-femininity
D. Assertiveness
3-22
Individualism versus Collectivism
• Individualistic culture – primary emphasis
on personal freedom and choice
• Collectivist culture – personal goals less
important than community goals and
interests
3-23
High-context cultures and
Low-context cultures
• High-context cultures – primary meaning
derived from nonverbal situational cues
• Low-context cultures – primary meaning
derived from written
and spoken words
3-24
Question?
Michelle is torn between her desire to go on
vacation and her organization's desire to have
her at work. She decides to take her vacation.
Michelle is probably from a(n) _____ culture.
A. Organizational
B. Low-context
C. High-context
D. Individualistic
3-25
Cultural Perceptions of Time
• Monochronic time
- preference for doing one thing at a time
because time is limited, precisely segmented,
and schedule driven
• Polychronic time
- preference for doing more than one thing at a
time because time is flexible and
multidimensional
3-26
Leadership Attributes Universally
Liked and Disliked
3-27
Question?
Manuel is manager of a work crew. He
keeps to himself and prefers not to interact
with his employees. This is an example of
which negative leader attribute.
A. Asocial
B. Ruthless
C. Eccentric
D. Loner
3-28
Preparing for a Foreign Assignment
• Expatriate
- anyone living or
working in a foreign
country
3-29
Preparing for a Foreign Assignment
• Major stumbling blocks for American
managers working in foreign countries
- Personal and family adjustment problems
- Homesickness
3-30
Preparing for a Foreign Assignment
• Important success factors in a foreign
assignment
- Cultural adaptability
- Patience and flexibility
- Tolerance for other’s beliefs
3-31
Avoiding Unrealistic Expectations
• Realistic job preview is a must
• Cross-cultural training
- any type of structured experience designed to
help departing employees adjust to a foreign
culture
3-32
The Foreign Assignment Cycle
Figure 3-2
3-33
Avoiding Culture Shock
• Culture shock
- anxiety and doubt caused by an overload of
new expectations and cues
• Best defense is comprehensive crosscultural training, including intensive
language study
3-34
Question?
Danielle is struggling with the anxiety of
driving on the left-hand side of the road at
her new job assignment in the U.K. This is
called ___________.
A. Mentoring
B. Collective culture
C. Culture shock
D. Societal adjustment
3-35
Support during the Foreign
Assignment
• Host-country sponsors – assigned to
individual managers or families
- Serve as “cultural seeing-eye dogs”
• Maintain an active dialog with established
mentors back home
3-36
Avoiding Reentry Shock
• Three areas for potential reentry shock are
work, social activities, and general
environment
• Key to a successful foreign assignment is
making it a well-integrated link in a career
chain rather than an isolated adventure
3-37
Supplemental Slides
• Slides 39-44 contain extra non-text
examples to integrate and enhance
instructor lectures
-
Slides 39: Management in the Movies: Gung Ho
Slide 40-41: Tips for Business Travelers
Slide 42: Role of Expatriates
Slide 43-44: Video discussion slides
3-38
Management in the Movies
Gung Ho – “Assan Motors”
• In this scene, Stevenson has finally found his
meeting with the Assan Motors executives. He
sets up and begins his proposal to bring Assan
Motors to Hadleyville.
• What would you have done differently than
Stevenson?
• What decisions should the executives consider
before opening a plant in the U.S.?
3-39
Tips for Business Traveler’s
• Make Packing a Reflex Action
- Pack the same items in the same way for
every trip
• Get Briefed
- Research latest economic and business
information on the country you’re visiting
• Stick to top Business Hotels
- They have excellent business centers; health
clubs; and prestige that has influence with
locals
Source: McGovern, P. (2007, April) How to be a Local, Anywhere, Inc. Magazine
3-40
Tips for Business Traveler’s
• Arrive Early
- Take a day or two to walk around and get “in tune”
with the people, pace, and culture
• Bear Gifts
- In Asia, Latin America, and Africa present your host
with a simple gift
• Practice Humility
- Don’t boast about your company or
accomplishments
- Talk about your children and theirs and your
participation in philanthropic activities
3-41
Role of Expatriates
• See article excerpt
on expatriates from
the Journal of
International
Business Studies
3-42
Video Case: Cirque du Soleil
• Why is Cirque du Soleil successful throughout the
world? Why does the product transcend culture
differences between countries?
• How do the cultural influences discussed in Figure
4-1 influence organizational behavior at Cirque du
Soleil?
• Why is it important for Cirque du Soleil to be a good
corporate citizen? How does ethnocentrism relate
to fulfilling this role?
3-43
Video Case: Disney Imagineering
• In what ways does Disney Imagineering truly live
up to the title of a global company? Why are their
parks and stories so universally accepted across
cultures?
• For its remote locations, does Disney consider
local cultural tastes too much? Should they “stick
to their guns” more?
• What benefit does paying attention to local culture
provide?
3-44
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