Professional Documents
Culture Documents
Attachment 1:
Expatriates and cultural differences
Expatriate
A citizen of one country living and working in another country.
Advantages and Disadvantages of Using Local and Expatriate Employees to Staff International Subsidiaries
Locals
Advantages Lower labor costs Demonstrates trust in local citizenry Increases acceptance of the company by the local community Leads to recognition of the company as a legitimate participant in the local economy Effectively represents local considerations and constraints in the decision-making process Disadvantages Makes it difficult to balance local demands and global priorities Leads to postponement of difficult local decisions (such as layoffs) until they are unavoidable, when they are more difficult, costly, and painful than they would have been if implemented earlier May make it difficult to recruit qualified personnel May reduce the amount of control exercised by headquarters
Advantages and Disadvantages of Using Local and Expatriate Employees to Staff International Subsidiaries (cont.)
Expatriates
Advantages Cultural similarity with parent company ensures transfer of business/management practices Permits closer control and coordination of international subsidiaries Gives employees a multinational orientation through experience at parent company Establishes a pool of internationally experienced executives Local talent may not yet be able to deliver as much value as expatriates can Disadvantages Creates problems of adaptability to foreign environment and culture Increases the foreignness of the subsidiary May involve high transfer, salary, and other costs May result in personal and family problems Has disincentive effect on localmanagement morale and motivation May be subject to local government restrictions
Culture Shock
Many people who take international assignments cannot adjust to a different cultural environment
Family Problems
The inability or unwillingness of the expatriates spouse and children to adapt to life in another country is one of the most important reasons for failure
Difficulties on Return
Lack of Respect for Acquired Skills
International experience is not highly valued
Loss of Status
Returning expatriates often experience a substantial loss of prestige, poser, independence, and authority
Attachment 2:
The Hofstede framework (1980)
Power Distance
...the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.
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Uncertainty Avoidance
the extent to which the members of a culture feel threatened by uncertain or unknown situations. NOT the same as risk avoidance Presence of rules
100
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Confucian Dynamism
Short-term orientation Social pressure to keep up with the Joneses small savings expect quick results concern with possessing Truth Long-term orientation Thrift: being sparing with resources large savings perseverance toward slow results concern with respecting the demands of Virtue
120
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P.R.C
40
20
PD
ID
MA
UA
LT