BUS/IB 203

International Business Culture

Dr. Balbir B. Bhasin

How can we change the Business
& Cultural Environment in
Pakistan to encourage Foreign
Investment
Individual Project Title
Submission date: 01/01/2011
 What is Management?

“Management
“Management is is aa form
form of
of work
work
that
that involves
involves
coordinating
coordinating an
an organization’s
organization’s
resources
resources -- human
human and and capital
capital ––
to
to accomplish
accomplish organizational
organizational
goals.”
goals.”
 Levels of Management

1.
1. Top
Top management
management

2.
2. Middle
Middle management
management

3.
3. Supervisory
Supervisory management
management
 Functions of Management

•• Planning
Planning
•• Organizing
Organizing
•• Staffing
Staffing
•• Leading
Leading
•• Controlling
Controlling
 Roles of a Manager

Interpersonal
Interpersonal -- leader,
leader, figurehead,
figurehead,
liaison
liaison
Informational
Informational -- monitor,
monitor, disseminate,
disseminate,
represent
represent
Decisional
Decisional -- allocate
allocate resources,
resources,
negotiate,
negotiate,
problem
problem solving
solving
 Management Skills

Conceptual
Conceptual skills
skills -- decision
decision making,
making,
planning,
planning, organizing
organizing
Human
Human relations
relations skills
skills -- understand
understand people,
people,
motivating,
motivating, collaborating
collaborating
Technical
Technical skills
skills -- able
able to
to get
get aa particular
particular
job
job done
done
 What is International Management?

“Process
“Process of
of developing
developing strategies,
strategies,
designing
designing and
and operating
operating
systems,
systems, and
and working
working with
with
people
people around
around the
the world
world
to
to ensure
ensure sustained
sustained
competitive
competitive advantage”
advantage”
 What is International Business?

“Profit
“Profit related
related activities
activities
conducted
conducted around
around national
national
boundaries,
boundaries, ever
ever changing”.
changing”.
 What are the variables affecting the
management function?

National
National variables
variables -- economic
economic system,
system,
legal
legal system,
system, political
political system
system
Socio-cultural
Socio-cultural variables
variables -- religion,
religion, education,
education,
language
language
Cultural
Cultural variables
variables -- values,
values, norms,
norms, beliefs
beliefs
Attitudes
Attitudes -- work,
work, time,
time, individualism,
individualism,
materialism
materialism
Response
Response -- motivation,
motivation, productivity,
productivity, ethics,
ethics,
commitment
commitment
End
 Chapter 2

Culture
Culture &
& International
International Business
Business
 What is Culture?

•• Set
Set of
of commonly
commonly held held values
values
•• A
A way
way ofof life
life of
of aa group
group ofof people
people
Includes
Includes knowledge,
knowledge, belief,
belief, art,
art, morals,
morals,
law,
law, customs
customs andand habits
habits
•• Everything
Everything thatthat people
people have,
have, think
think and
and do
do
as
as members
members of of their
their society
society
•• An
An integrated
integrated system
system ofof learned
learned
behavior
behavior patterns
patterns that
that are
are characteristic
characteristic
of
of the
the members
members of of any
any given
given society
society
 Cross Cultural Myths

Myth
Myth One:
One: We
We really
really are
are all
all the
the same
same

Myth
Myth Two:
Two: II just
just need
need to
to be
be myself
myself and
and
everything
everything will
will be
be okay
okay

Myth
Myth Three:
Three: II have
have to
to adopt
adopt the
the practices
practices
Of
Of the
the other
other culture
culture to
to succeed
succeed
(Adapt
(Adapt rather
rather than
than adopt)
adopt)
 Culture is Learned

“Culture
“Culture is
is transmitted
transmitted through
through
the
the process
process of
of learning
learning and
and
interacting
interacting with
with one’s
one’s environment
environment
rather
rather than
than through
through the
the generic
generic
process”
process”

•• Primary
Primary Socialization
Socialization
•• Cultures
Cultures and
and Subcultures
Subcultures
•• Secondary
Secondary Socialization
Socialization
 Culture Universals

Common
Common problems
problems and
and common
common features
features

•• Economic
Economic systems
systems
•• Marriage
Marriage and
and family
family systems
systems
•• Educational
Educational systems
systems
•• Social
Social control
control systems
systems
 Cultural Change

All
All cultures
cultures experience
experience continued
continued change
change

•• Cultural
Cultural change
change is
is aa selective
selective process
process
•• Cultural
Cultural change
change through
through borrowing
borrowing
•• Cultural
Cultural change
change through
through innovations
innovations
•• Cultural
Cultural diffusion
diffusion
 Ethnocentrism
Ethnocentrism

Tendency
Tendency for
for people
people to
to judge
judge
behavior
behavior by
by their
their own
own standards
standards

•• The
The belief
belief that
that own
own culture
culture is
is superior
superior
•• All
All people
people inin all
all societies
societies are
are ethnocentric
ethnocentric
to
to some
some degree
degree
•• Ethnocentrism
Ethnocentrism can can contribute
contribute to
to prejudice
prejudice
End
 Chapter 3

Communicating
Communicating across
across Cultures
Cultures
Languages
Languages
 What is Communication?

Process
Process of
of sharing
sharing meaning
meaning by
by transmitting
transmitting
messages
messages -- words
words and
and behavior”
behavior”

•• Critical
Critical factor
factor in
in cross
cross cultural
cultural management
management

•• Need
Need for
for effective
effective communication
communication to:to: give
give
information,
information, share
share ideas,
ideas, give
give orders,
orders, and
and to
to
motivate
motivate

•• Interpersonal
Interpersonal issues:
issues: leadership,
leadership, motivation,
motivation,
group
group interaction,
interaction, negotiation
negotiation
 Barriers to Effective Communications

•• Semantics
Semantics -- different
different words
words have
have different
different
meaning
meaning toto different
different people:
people: fix,
fix, fag,
fag,
•• Jargon
Jargon -- technical
technical terms
terms
•• Acronyms
Acronyms and and Abbreviations
Abbreviations -- culture,
culture,
military
military
•• Perception
Perception -- interpreting
interpreting information,
information,
distortion
distortion
•• Emotions
Emotions -- breakdown
breakdown inin communication
communication
 The Need to Understand Language

1.
1. There
There is
is aa close
close relationship
relationship between
between
language
language and
and culture
culture
2.
2. Language
Language is is aa precondition
precondition to to success
success
in
in international
international business
business
3.
3. Languages
Languages helps
helps inin understanding
understanding
culture
culture
4.
4. Second
Second language
language is is first
first step
step to
to learning
learning
third
third and
and fourth
fourth language
language
5.
5. Learning
Learning other
other languages
languages helps
helps usus
appreciate
appreciate our
our own
own language
language (and(and culture)
culture)
 What is Language?

•• Language
Language is is “a
“a symbolic
symbolic code
code of
of
Communications
Communications
•• Meanings
Meanings attached
attached to
to any
any word
word are
are
totally
totally arbitrary
arbitrary
•• Major
Major languages
languages ofof the
the world
world are:
are:
Mandarin,
Mandarin, Spanish,
Spanish, English,
English, Bengali,
Bengali,
Hindi,
Hindi, Portuguese,
Portuguese, Russian,
Russian, Japanese,
Japanese,
German,
German, WuWu
 The Influence of Culture on Language

•• The
The vocabulary
vocabulary ofof aa language
language depicts
depicts
what
what is
is considered
considered important
important in
in that
that
culture
culture
•• Industrialized
Industrialized societies
societies have
have more
more
Technological
Technological terms
terms
•• Example:
Example: 77 words
words for
for bamboo
bamboo inin South
South
India
India but
but none
none for
for snow
snow
 The Influence of Language on Culture

•• Language
Language influences
influences perception,
perception,
categorization
categorization and
and worldview
worldview
•• Language
Language reflects
reflects values
values of
of the
the group
group
•• Example
Example “individualism”
“individualism” in in the
the US
US –– so
so
many
many words
words pertaining
pertaining to
to “self”
“self”
•• In
In Japan.
Japan. “we”
“we” always
always comes
comes before
before the
the
“I”
“I” indicating
indicating the
the “collectivist”
“collectivist” approach
approach
 Language Key Points for Business

•• The
The US US is
is the
the only
only country
country where
where business
business
people
people don’t
don’t think
think its
its necessary
necessary to
to learn
learn aa
foreign
foreign language
language
•• Is
Is itit easier
easier to
to speak
speak oror understand
understand aa foreign
foreign
language?
language?
•• Comprehension
Comprehension is is aa function
function of
of speed
speed
•• Is
Is itit easier
easier to
to speak
speak oror write
write aa foreign
foreign
language?
language?
•• Is
Is there
there an an international
international language
language of of
business?
business?
 Avoiding Misunderstandings Across
Language Barriers

•• Recognizing
Recognizing the
the symptoms:
symptoms: blank
blank stares,
stares,
unnatural
unnatural stopping
stopping points
points in
in conversation,
conversation,
feeling
feeling of
of “not
“not connecting”
connecting”

•• What
What toto do:
do: explain
explain the
the message
message in
in several
several
different
different ways,
ways, use
use visual
visual aids,
aids, slow
slow down,
down,
avoid
avoid slang
slang and
and idiomatic
idiomatic expressions,
expressions, listen
listen
to
to the
the other
other person’s
person’s entire
entire message…don’t
message…don’t
assume
assume anything,
anything, keep
keep good
good notes,
notes, follow
follow upup
 High Context vs. Low Context Cultures

Low
Low context
context cultures:
cultures: task
task oriented,
oriented,
communication
communication isis specific,
specific, elaborate,
elaborate, direct
direct
and
and unambiguous.
unambiguous. Swiss,
Swiss, German,
German, American,
American,
French,
French, British
British

High
High context
context cultures:
cultures: based
based onon relationships,
relationships,
rely
rely on
on communication
communication that
that is:
is: indirect,
indirect,
ambiguous,
ambiguous, nonverbal,
nonverbal, and
and the
the context.
context.
Japanese,
Japanese, Chinese,
Chinese, Arab
Arab

In
In between:
between: Italian,
Italian, Spanish,
Spanish, Greek
Greek
End
 Chapter 4

Communicating
Communicating across
across Cultures
Cultures
The
The Nonverbal
Nonverbal Dimension
Dimension
 Function of Nonverbal Communication

1.
1. Helps
Helps convey
convey feelings
feelings and
and emotional
emotional states
states
2.
2. Elaborates
Elaborates on
on verbal
verbal messages
messages
3.
3. Governs
Governs the
the timing
timing and
and turn
turn taking
taking
between
between communicators
communicators

Concerns:
Concerns:
1,
1, Same
Same nonverbal
nonverbal cue
cue carries
carries different
different
meanings
meanings inin different
different cultures
cultures
2.
2. Different
Different nonverbal
nonverbal cues
cues carry
carry the
the same
same
meaning
meaning inin different
different cultures
cultures
 Nonverbal Cues

1.
1. Facial
Facial expressions
expressions (smiles,
(smiles, frowns)
frowns)
2.
2. Hand
Hand gestures
gestures
3.
3. Posture
Posture
4.
4. Touching
Touching
5.
5. Scents
Scents or
or smells
smells (perfume)
(perfume)
6.
6. Color
Color symbolism
symbolism
7.
7. Clothing,
Clothing, hairstyles,
hairstyles, cosmetics
cosmetics
8.
8. Artifacts
Artifacts (jewelry,
(jewelry, fly
fly whisks)
whisks)
9.
9. Graphic
Graphic symbols
symbols
10.
10. Silence
Silence
 Non- verbal Language

•• Touching
Touching –– U.S.
U.S. vs.vs. Latin
Latin America
America
•• Space
Space –– U.S.
U.S. vs.
vs. Japan
Japan
•• Queues:
Queues: U.S.
U.S. vs.
vs. China
China vs.
vs. Britain
Britain vs.
vs. Japan
Japan
•• Dress
Dress –– U.S.
U.S. vs.
vs. Europe
Europe vs.vs. Japan
Japan
•• Silence
Silence –– U.S.:
U.S.: aa gap
gap that
that must
must be be filled
filled
-- Japan
Japan –– preferable
preferable toto conversation
conversation
 Nonverbal Language

•• Eye
Eye Contact:
Contact: intermittent
intermittent in
in U.S.,
U.S., Intense,
Intense,
Unbroken
Unbroken in
in Arab
Arab countries,
countries, Very
Very little
little in
in
Japan
Japan
•• Para
Para Language:
Language: um,
um, er,
er, ah,
ah, hai
hai
•• Smiling,
Smiling,
•• Head
Head movements:
movements: Bulgaria,
Bulgaria, India
India
•• Arm
Arm Movements:
Movements: Italy
Italy vs.
vs. Japan
Japan
•• Posture:
Posture: U.S.
U.S. vs.
vs. China
China
•• Handshakes
Handshakes
 Cultural Variables

•• Stereotyping
Stereotyping -- assuming
assuming thatthat all
all have
have same
same
attributes
attributes
•• Language
Language -- literal
literal or
or poor
poor understanding
understanding
•• Kinesic
Kinesic behavior
behavior -- posture,
posture, gesture,
gesture, facial
facial
expression,
expression, eye
eye contact
contact
•• Oculesics
Oculesics -- behavior
behavior of of the
the eye
eye during
during
communication
communication
•• Proxemics
Proxemics -- effect
effect of
of proximity
proximity and and space
space
•• Paralanguage
Paralanguage -- howhow something
something is is said
said
•• Time
Time –– mono-chronic
mono-chronic or or poly-chronic
poly-chronic
•• Context
Context -- in
in which
which the
the communication
communication
takes
takes place
place
 Proxemics

Distance
Distance preferred
preferred by
by middle
middle class
class US:
US:

•• Intimate
Intimate distance
distance -- body
body contact
contact to to 18”
18”
•• Personal
Personal distance
distance -18”
-18” toto 44 feet
feet
•• Social
Social distance
distance -- 44 feet
feet to
to 12
12 feet
feet
•• Public
Public distance-
distance- 1212 to
to 20
20 feet
feet
 How to Manage Communication Effectively

•• Develop
Develop cultural
cultural sensitivity
sensitivity -- be
be aware
aware of
of self
self
and
and the
the other!
other!
•• Careful
Careful encoding
encoding -- use
use proper
proper words,
words, gestures
gestures
•• Selective
Selective transmission
transmission -- use
use proper
proper medium
medium
•• Careful
Careful decoding
decoding ofof feedback
feedback -- careful
careful
interpretation
interpretation of
of message
message
•• Seek
Seek feedback
feedback -- ask,
ask, verify,
verify, follow-up
follow-up
 Greetings

•• “When
“When youyou shake
shake hands,
hands, look
look them
them straight
straight
•• In
In the
the eye
eye and
and give
give ‘em
‘em aa good
good firm
firm grip”
grip”
•• Asia
Asia Mid
Mid East:
East: gentle
gentle handshake
handshake
•• Mexico/Latin
Mexico/Latin America:
America: palm
palm slip/grasp
slip/grasp thumb
thumb
•• Never
Never shake
shake hands
hands with
with aa woman
woman in in the
the
Middle
Middle East
East and
and parts
parts of
of India
India
•• Staring
Staring at
at someone
someone is is intimidating
intimidating and
and
disrespectful
disrespectful inin many
many areas
areas of
of the
the world,
world,
especially
especially Japan
Japan
•• Slight
Slight bows
bows areare appreciated
appreciated inin Asia
Asia
•• Presenting
Presenting business
business cards?
cards?
 Touching

•• Touch:
Touch: Middle
Middle East,
East, Latin
Latin America,
America, Italy,
Italy,
Greece,
Greece, Spain/Portugal,
Spain/Portugal, Russia
Russia

•• Don’t
Don’t Touch:
Touch: Japan,
Japan, U.S.,
U.S., England,
England,
Scandinavia,
Scandinavia, Northern
Northern Europe,
Europe, Australia
Australia

•• Middle
Middle Ground:
Ground: France,
France, China,
China, India
India
 Hands/Eyes/Arms/Feet

•• Where
Where toto place
place hands
hands when
when eating?
eating?
US:
US: Beneath
Beneath table
table
Europe:
Europe: OnOn top
top of
of table
table
•• Eyes:
Eyes: “Closed”
“Closed” in in Japan
Japan indicates
indicates concentration
concentration
Eyelid
Eyelid pull
pull in
in France
France andand England
England
•• Arms:
Arms: Folded
Folded arms
arms –– universal
universal defensive
defensive
posture
posture
Hands
Hands onon hip
hip –– aggressiveness
aggressiveness in in Asia,
Asia,
along
along with
with finger
finger pointing
pointing
•• Feet:
Feet: Remove
Remove shoesshoes inin Japan,
Japan, India,
India, Asia
Asia
Do
Do not
not show
show thethe soles
soles of
of shoes
shoes in
in the
the
Middle
Middle East
East
End
 Chapter 5

Contrasting
Contrasting Cultural
Cultural Values
Values
 Hofstede’s Value Dimensions
(IBM data collected on 100,000 individuals in 40 countries)

Power
Power distance
distance -- extent
extent to
to which
which subordinates
subordinates
accept
accept authority
authority
Uncertainty
Uncertainty avoidance
avoidance -- threatened
threatened by
by
ambiguous
ambiguous situations,
situations, prefer
prefer formal
formal structure,
structure,
feel
feel safe
safe and
and secure
secure
Individualism
Individualism vsvs collectivism
collectivism
Masculinity
Masculinity -- assertiveness,
assertiveness, materialism
materialism
Femininity
Femininity -- concern
concern for
for society,
society, others
others
 Trompenaar’s Findings

Obligation
Obligation -- universalism,
universalism, pluralism
pluralism

Emotional
Emotional in
in relationship
relationship -- neutral,
neutral, affective
affective

Involvement
Involvement in
in relationship
relationship -- specific,
specific, diffuse
diffuse

Legitimization
Legitimization of
of power
power and
and status
status ––
based
based on
on achievement
achievement and
and competency
competency
or
or based
based on
on position,
position, age
age or
or education
education
 Five Universal Problems

1.
1. Human
Human nature
nature orientation:
orientation: innately
innately good
good
or
or bad?
bad?
2.
2. Man-nature
Man-nature orientations:
orientations: mastery
mastery oror
harmony?
harmony?
3.
3. Time
Time orientation:
orientation: past,
past, present
present or
or future>
future>
4.
4. Activity
Activity orientation:
orientation: individual’s
individual’s
accomplishment
accomplishment or or personal
personal traits?
traits?
5.
5. Relational
Relational orientation:
orientation: individualism
individualism oror
collectivism?
collectivism?
 Cultural Dimensions

1.
1. Individual-Collective
Individual-Collective dimension:
dimension: the
the self
self
first
first or
or the
the community?
community?
2.
2. Equality-Hierarchy
Equality-Hierarchy dimension:
dimension: differences
differences
in
in power
power oror status
status or
or equality?
equality?
3.
3. Tough-Tender
Tough-Tender dimension:
dimension: what what is
is success-
success-
material
material comforts
comforts or or relationships?
relationships?
4.
4. Uncertainty-Avoidance
Uncertainty-Avoidance dimension:
dimension: thethe
need
need for
for un-ambiguity
un-ambiguity and and predictability
predictability
of
of the
the future?
future?
5.
5. Time
Time dimension:
dimension: tight
tight or
or loose?
loose?
 Time Dimension

Single
Single Focus
Focus (American
(American Western
Western Europe,
Europe,
Industrialized
Industrialized Asia):
Asia): one
one task
task at
at aa time;
time; meet
meet
deadlines,
deadlines, “Let’s
“Let’s get
get to
to work”,
work”, “Time
“Time isis
money”
money”

Multi
Multi Focus
Focus (Southern
(Southern Europe,
Europe, Latin
Latin America,
America,
Middle
Middle East):
East): Simultaneous
Simultaneous tasks,
tasks, completion
completion \\
of
of task
task based
based on
on strength
strength of
of relationship,
relationship,
delays
delays are
are expected,
expected, commitments
commitments areare not
not
Written
Written inin stone
stone
 Environment Dimension

Control
Control Cultures
Cultures (Western
(Western Societies):
Societies): “Go
“Go for
for
it”,
it”, “Life
“Life is
is what
what you
you make
make it”,
it”, “The
“The future
future can
can
be
be planned
planned for”
for”

Harmony
Harmony Cultures
Cultures (Asian
(Asian Cultures):
Cultures): “Don’t
“Don’t
rock
rock the
the boat”,
boat”, “Go
“Go with
with the
the flow”
flow”

Constraint
Constraint Culture
Culture (Latin
(Latin America,
America, Middle
Middle
East):
East): “It’s
“It’s aa matter
matter of
of fate”,
fate”, “You
“You take
take what
what
life
life gives
gives you”
you”
 Action Dimension

Doing
Doing Cultures
Cultures (American):
(American):
“God
“God helps
helps those
those who
who help
help themselves”
themselves”
“If
“If at
at first
first you
you don’t
don’t succeed,
succeed, try
try again”
again”
“Who
“Who areare you?”
you?” Answer
Answer with
with job
job title
title

Being
Being Cultures
Cultures (Latin
(Latin America,
America, Africa,
Africa,
Middle
Middle East,
East, Southern
Southern Europe):
Europe):
“Who
“Who are
are you?”
you?” Answer
Answer with
with family
family
description
description or
or philosophical
philosophical outlook
outlook
 Competitive Dimension

Competitive
Competitive Cultures
Cultures (U.S.,
(U.S., Western
Western Europe,
Europe,
Hong
Hong Kong,
Kong, Mexico,
Mexico, Argentina,
Argentina, Japan):
Japan):
“Winner
“Winner takes
takes all”
all”
“Predominantly
“Predominantly materialistic”
materialistic”
“We
“We live
live to
to work”
work”

Cooperative
Cooperative Cultures
Cultures (Scandinavian
(Scandinavian
Countries,
Countries, Some
Some Latin
Latin Countries,
Countries, Some
Some
European
European Countries,
Countries, Parts
Parts of
of Asia):
Asia):
“We’re
“We’re in
in this
this together”
together”
“We
“We work
work to to live”
live”
 Individualistic and Collectivist Cultures

Individualist:
Individualist: USA,
USA, UK,
UK, Italy,
Italy, Scandinavia,
Scandinavia,
France,
France, Germany
Germany

Intermediate:
Intermediate: Israel,
Israel, Spain,
Spain, Japan,
Japan, Argentina
Argentina

Collectivist:
Collectivist: Brazil,
Brazil, Turkey,
Turkey, Mexico,
Mexico,
South
South America,
America, Much
Much ofof Asia.
Asia.
End
 Chapter 6

Negotiating
Negotiating Across
Across Cultures
Cultures
 Negotiations

“a
“a process
process between
between two
two or
or more
more parties
parties aimed
aimed
at
at reaching
reaching aa mutually
mutually acceptable
acceptable agreement”
agreement”

•• Goal
Goal -- to
to bring
bring about
about aa win-win
win-win situation
situation
where
where all
all parties
parties benefit
benefit

•• Process:
Process: preparation,
preparation, relationship
relationship building,
building,
exchange
exchange of
of task
task related
related information,
information,
persuasion,
persuasion, concession
concession and
and agreement.
agreement.
 Variables in the Negotiation Process

•• Competitive
Competitive process
process oror problem
problem solving
solving
approach?
approach?
•• How
How negotiators
negotiators areare selected
selected -- best
best qualified?
qualified?
•• How
How are
are persuasive
persuasive arguments
arguments presented?
presented?
Rational
Rational oror emotional?
emotional?
•• Motivations?
Motivations? Personal,
Personal, family,
family, company,
company,
country?
country?
•• Ability
Ability toto take
take risk?
risk?
•• Decision
Decision making
making process
process -- individual
individual or
or
collective?
collective?
•• Trust
Trust -- handshake
handshake or or legal
legal document?
document?
 Effective Strategies for International
Negotiators

1.
1. Concentrate
Concentrate on on long
long term
term relationships
relationships
2.
2. Focus
Focus on
on interest
interest behind
behind the
the positions
positions
3.
3. Avoid
Avoid reliance
reliance onon cultural
cultural generalizations
generalizations
4.
4. Be
Be sensitive
sensitive toto timing
timing
5.
5. Remain
Remain flexible
flexible
6.
6. Prepare
Prepare carefully
carefully
7.
7. Learn
Learn to
to listen
listen
8.
8. Be
Be patient!
patient!
 Eight Recommendations for Success
In Global Negotiations

1.
1. Do
Do pre-work
pre-work with
with the
the other
other side
side ifif possible,
possible,
possibly
possibly using
using cultural
cultural go-betweens
go-betweens
3.
3. Develop
Develop aa strategy
strategy to
to deal
deal with
with the
the language
language
barrier
barrier
4.
4. Use
Use visual
visual aids
aids extensively,
extensively, but
but check
check with
with
cultural
cultural expert
expert
5.
5. Be
Be prepared
prepared for
for long
long negotiations
negotiations
6.
6. Decide
Decide onon strategy
strategy for
for obtaining
obtaining aa written
written
agreement,
agreement, where
where acceptable
acceptable
7.
7. Know
Know your
your walk
walk away
away point
point
8.
8. Avoid
Avoid ethnocentrism
ethnocentrism
 Confrontation

•• Expect
Expect less
less confrontation
confrontation in in high
high context,
context,
collectivist
collectivist cultural
cultural settings
settings
•• But,
But, face
face is
is more
more important
important within
within the
the
culture
culture than
than outside
outside itit
•• “Disrespectful”
“Disrespectful” out-of-group
out-of-group behavior
behavior
does
does not
not carry
carry as
as many
many social
social issues
issues
as
as the
the same
same behavior
behavior within
within the
the
cultural
cultural group
group
•• Agents
Agents oror third
third parties
parties can
can be
be helpful
helpful when
when
confrontation
confrontation maymay be
be expected
expected
End
 Chapter 7

Coping
Coping with
with Culture
Culture Shock
Shock
 What is Culture Shock?

ItIt is
is the
the “unpleasant
“unpleasant consequences
consequences
of
of experiencing
experiencing aa foreign
foreign culture”
culture”

Results
Results in:
in:
confusion,
confusion, surprise,
surprise, disgust,
disgust,
panic,
panic, rejection,
rejection, loss
loss of
of self-esteem,
self-esteem,
and
and inability
inability to
to function
function effectively
effectively
 Manifestations of Culture Shock

1.
1. Homesickness
Homesickness
2.
2. Boredom
Boredom
3.
3. Withdrawal
Withdrawal
4.
4. Irritability
Irritability
5.
5. Marital
Marital stress
stress
6.
6. Stereotyping
Stereotyping
7.
7. Hostility
Hostility
8.
8. Inefficiency
Inefficiency
9.
9. Physical
Physical un-wellness
un-wellness
10.
10. Depression
Depression
 Process of Adjustment: 4 Stages

1.
1. Honeymoon
Honeymoon stage:
stage: unrealistically
unrealistically positive
positive
feelings
feelings and
and approach
approach
2.
2. Irritation
Irritation and
and hostility:
hostility: problems
problems arise
arise and
and
become
become insurmountable
insurmountable
3.
3. Gradual
Gradual adjustment:
adjustment: Passing
Passing of of crisis
crisis
and
and gradual
gradual recovery
recovery
4.
4. Biculturalism:
Biculturalism: Full
Full recovery
recovery andand ability
ability
to
to function
function effectively
effectively inin both
both cultures
cultures
 Minimizing Culture Shock

1.
1. Choose
Choose to to stay
stay at
at home
home and
and not
not enter
enter IB
IB
2.
2. Select
Select the
the IB
IB arena
arena where
where adjustment
adjustment
can
can be
be made
made more
more easily
easily
3.
3. Have
Have aa realistic
realistic understanding
understanding ofof issues
issues
and
and likely
likely problems
problems
4.
4. Learn
Learn cross
cross cultural
cultural coping
coping skills
skills ––
language,
language, religion,
religion, history,
history, social
social
environment
environment
5.
5. Approach
Approach issues
issues as
as opportunities
opportunities toto
learn
learn and
and grow
grow
 Monochronic People

•• Do
Do one
one thing
thing at
at aa time
time
•• Concentrate
Concentrate onon the
the job
job
•• Take
Take time
time commitments
commitments seriously
seriously
•• Are
Are low
low context
context and
and need
need information
information
•• Show
Show great
great respect
respect forfor private
private property,
property,
seldom
seldom borrow
borrow or or lend
lend
•• Are
Are accustomed
accustomed to to short
short term
term relationships
relationships
 Polychronic People

•• Do
Do many
many things
things at
at once
once
•• Are
Are highly
highly distractible
distractible and
and subject
subject to
to
interruptions
interruptions
•• Consider
Consider time
time commitments
commitments an an objective
objective
to
to be
be achieved,
achieved, ifif possible
possible
•• Are
Are high-context
high-context and
and already
already have
have info
info
•• Borrow
Borrow andand lend
lend things
things often
often and
and easily
easily
•• Have
Have tendency
tendency toto build
build lifetime
lifetime
relationships
relationships
End
 Chapter 8

Developing
Developing Global
Global Managers
Managers
 Global Management Goals

1.
1. Maximize
Maximize long
long term
term retention
retention ofof
international
international managers
managers soso that
that company
company
can
can develop
develop aa top
top management
management teamteam with
with
global
global experience
experience
2.
2. Understand,
Understand, value
value and
and promote
promote role
role of
of
women
women andand minorities
minorities in
in order
order to
to maximize
maximize
underutilized
underutilized resources,
resources, and
and
3.
3. Work
Work effectively
effectively within
within local
local labor
labor laws
laws
 The Need to Develop Global Managers

1.
1. Difficult
Difficult to
to control
control geographically
geographically
dispersed
dispersed operations
operations
2.
2. Need
Need for
for local
local decision
decision making
making independent
independent
of
of home
home office
office
3.
3. Suitability
Suitability of
of managers
managers from
from alternative
alternative
sources
sources
 Staffing Alternatives

1.
1. Ethnocentric
Ethnocentric staffing
staffing -- fill
fill staff
staff position
position
from
from HQ
HQ
2.
2. Polycentric
Polycentric staffing
staffing -- local
local managers,
managers,
host
host country
country nationals
nationals
3.
3. Global
Global staffing
staffing -- recruiting
recruiting the
the best
best
within
within and
and outside
outside the
the country
country
(transpatriates)
(transpatriates)
4.
4. Regio-centric
Regio-centric staffing
staffing -- from
from the
the region
region
 Training Global Managers

1.
1. Area
Area studies
studies -- history,
history, geography,
geography, politics,
politics,
economy
economy
2.
2. Language
Language training
training
3.
3. Sensitivity
Sensitivity training
training
4.
4. Field
Field experiences
experiences )host
)host family,
family, immersion)
immersion)
5.
5. In-country
In-country training
training
 Developing Skills for Global Managers

1.
1. Communications
Communications skills
skills
2.
2. Personality
Personality traits
traits
3.
3. Motivation
Motivation
4.
4. Family
Family circumstances
circumstances
5.
5. Cross
Cross cultural
cultural training
training
 Managing Process for Global Managers

1.
1. Preparation
Preparation
2.
2. Adaptation
Adaptation
3.
3. Repatriation
Repatriation -- reverse
reverse cultural
cultural
shock
shock
4.
4. Transition
Transition -- mentor
mentor program
program
 Developing Global Management Teams

Objective
Objective -- “how
“how to
to develop
develop and
and empower
empower
intercultural
intercultural groups
groups and
and task
task forces
forces at
at all
all
levels
levels of
of an
an organization
organization to
to achieve
achieve set
set goals.
goals.

Synergy
Synergy advantages:
advantages: different
different perspectives,
perspectives,
share
share experiences,
experiences, share
share technology
technology

Disadvantages:
Disadvantages: language
language problems,
problems,
different
different management
management styles,
styles, complex
complex decision
decision
making
making process
process