SlideShare a Scribd company logo
1 of 23
Download to read offline
Developing Cultural Savvy for Success in
Global Business:
Case of China, USA and Russia
Global Business Model Innovation: An International Conference
Shanghai Dianji University 60th Anniversary, October 2013
by Dmitry Shtykhno, Ph.D.
Dean of the School of Business,
Plekhanov Russian University of Economics
Contents
• Introduction: most popular questions regarding
managerial issued of cross-cultural decision-
making
• Studies of the impact of culture on managerial
work values
• Studies of the cultural determinants of learning
styles
• Conclusion: convergence, crossvergence and
divergence of cultural valuesenhance the cultural
compatibility between learner and the learning
environment
2 of 23Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
Introduction (1)
• With the growth of globalization, cultural
sensitivity and understanding in dealing with
global complexities involved in conducting
business in host countries have been
expanding
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia 3 of 23
Introduction (2)
• Culture…
– way of organizing life, of thinking, and of conceiving the
underlying assumption about the family, the state, the
economic system, and even Man himself (Hall, 1959)
– every aspect of life: know-how, technical knowledge,
customs of food and dress, mentality, values, language,
symbols, socio-political and economic behavior,
indigenous methods of making decisions and exercising
power, methods of production and economic relations,
and so on (Verhelst, 1990)
– "software of mind“ which povides a guide for humans
on how to think and behave; it is a problem solving tool
(Hofstede , 2001)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia 4 of 23
Introduction (3)
• An essential skill for managing people and processes
in other nations is "cultural savvy" which is mangers
having a working knowledge of the cultural variables
affecting management decisions (Risks, 1983)
• Cultural sensitivity or cultural empathy is the
recognition and sincerely caring about other people's
cultures (Joinson, 1998)
• Cultural awareness enables managers to develop
appropriate policies and determine how to plan,
organize, and control in a specific international
organization (Khairullah, 2013 )
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia 5 of 23
Introduction (4)
• Two major issues of developing cultural savvy for
success in global business:
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
the impact of
culture on
managerial work
values (what to
teach);
cultural
determinants of
learning styles (how
to teach).
6 of 23
Impact of culture on managerial work values (1)
• As many international companies consider
trying to become global organizations in
the sense of having a seamless or
borderless approach to organization, the
issues of convergent/divergent values
becomes more relevant. Those
organizations that strive to become global
enterprises envision a unified approach to
business that transcends cultural
differences (Porter, 1986).
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• With a global approach to organization, not only must the
organization understand the diverse values systems of its multi-local
operation, but, if it is to create a seamless/borderless organization,
it must now try to integrate these diverse value systems into a
common corporate culture (Yip, 1992).
7 of 23
Impact of culture on managerial work values (2)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
Business environment ideology and country
culture have been identified as the primary
forces that shape one's values
Convergence theory: the
ideology of the workplace
drives values
Divergence theory: country
culture, not workplace
ideology, drives values
Crossvergence theory: work ideology and country culture
interact to create a new and unique value system that is
based on the melding of both cultural and ideological
influences
8 of 23
Impact of culture on managerial work values (3)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
The Hofstede (1980) typology is often
used as a starting point in developing a
framework for contrasting the work
values of the countries.
Country Power
Distance
Individualism Masculinity Uncertainty
Avoidance
Long Term
Orientation
USA
Russia
China
40 L
95* H
80* H
91 H
50* M
20* L
62 H
40* L
50* M
46 L
90* H
60* M
29 L
10* L
118 H
H(igh) = top third, M(edium) = medium third, L(ow) = bottom third
* - estimated
9 of 23
Impact of culture on managerial work values (4)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
Extreme collectivist
orientation with some
shift away from
collectivist values
towards individualist
values,a change in
emphasis away from
political/social goals
towards economic
goals.
Individualism with
preferences for
equity in which
distributions are
proportionate to
individual
contributions
More "collectivist"
than the USA,
although to a much
lesser degree than
China, a less
deeply-rooted
collectivist
orientation than in
China
Individualism,
capitalism, and income
differentiation
The combination of
collectivism, socialism
and egalitarian pay
practices
Egalitarianism traced to
Confucian principles
10 of 23
Impact of culture on managerial work values (5)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
Study of the impact of
culture and ideology on
managerial work values
conducted by David A.
Ralston, David H. Holt,
Robert H. Terpstra and
Yu Kai-cheng (1997)
used well-developed set
of 10 subdimensions
and three higher-order
dimensional continua
that are comparable to
SVS - The Schwartz
Value Survey (Schwartz,
1992)
individualism
collectivism
11 of 23
Impact of culture on managerial work values (6)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
The individualism/collectivism continuum clearly follows the
crossvergence with culture-dominant hypothesis.
The openness-to-change/conservation dimension also
suggests a crossvergence effect while neither culture nor
ideology appears dominant for the openness dimension.
The self-enhancement/self-transcendence dimension is
interesting because in part it supports crossvergence, while in
part supporting convergence.
Russia is more likely to adopt the current Western capitalism
ideology than China.
Nonetheless, that is not to suggest that China will not develop
its own form of capitalism, but more likely one that is uniquely
compatible with the Chinese value system.
12 of 23
Impact of culture on managerial work values (7)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• Study conducted by Jane K. Giacobbe-Miller, Daniel J. Miller,
and Vladimir I. Victorov (1999) examines pay values (meaning
the perceived fairness and appropriateness of pay allocations
within an organization) and allocative behaviors by organizational
type in China, Russia and the United States.
• Researchers assume that the introduction of Western managerial
systems (particularly pay systems) in both Russia and China
create the conditions in which convergence, crossvergence or
divergence might occur.
• Results relating to expressed values supported crossvergence
theory, whereas results relating to allocative behaviors
supported convergence theory for the Chinese managers and
crossvergence theory for the Russian managers.
13 of 23
Impact of culture on managerial work values (8)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• Evidence of divergence and crossvergence seems most
apparent in allocative behaviors as opposed to expressed
values. While both Russian and Chinese managers (regardless of
organization type) appear "quite capitalist" in their expressed
rejection of equality and need-based rules, Russian managers in
state-owned enterprises and Chinese managers in both state-
owned enterprises and joint ventures/foreign-owned
enterprises allocated the bonus in a collectivist manner.
• In contrast, managers in Russian joint ventures/foreign-owned
enterprises and in the United States were significantly more
individualistic in their allocations.
• It is also necessary to note that expressed values are different
from allocative behaviors.
14 of 23
Impact of culture on managerial work values (9)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• Study of Peter Smith, Mark Peterson, and Zhong Ming Wang
(1996) tested assumptions that managers from Asian and
Western cultures would differ in the extent to which they relied
on specific sources of guidance and support when responding to
uncertain work events.
• Managers in the US were found to rely most heavily on their
own experience and skills, especially when improving team work
or dealing with subordinates. In contrast, Chinese managers
were more likely to rely on rules and procedures.
• While US managers reported a low reliance upon peers, the
Chinese managers appear to be least likely to rely on their peers.
• All managers also reported a low reliance upon their
subordinates, with managers in the US reporting the least
amount of reliance upon subordinates.
15 of 23
Impact of culture on managerial work values (10)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• Smith and his colleagues also found differences among the
managers in their reactions to the different types of work events.
• The US managers favored their own experiences in the most of
event types, but were also likely to rely on their subordinates,
particularly in improving teamwork. The US managers indicated a
reluctance to involve their superiors in improving work quality or
their peers in deciding how to use raw materials more effectively.
• The Chinese managers' reliance on their own experience was
generally less consistent and appeared to be viewed negatively in
events involving the changing of work procedures or rewarding
subordinates for good work. Chinese managers were also not
likely to rely on their subordinates when improving teamwork or
communicating with senior management, or their peers when
changing work procedures.
16 of 23
Cultural determinants of learning styles (1)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
Kolb’s (1984)
classification of
learning styles is
based on the
assumption that
individual learning
can be
conceptualized as
a circular process
consisting of four
activity stages.
17 of 23
Cultural determinants of learning styles (2)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• Dirk Holtbrügge and Alexander T. Mohr (2010) in their research
of the cultural determinants of learning styles develop
hypotheses that relate dimensions of culture to the likelihood
that individuals prefer one learning style over another.
• The study reveals a positive influence of individualism on the
odds that learners prefer a learning style characterized by active
experimentation and abstract conceptualization, that is,
Convergence.
• Masculinity was found to have a positive effect on the likelihood
that learners prefer a learning style characterized by abstract
conceptualization and reflective observation, that is,
Assimilation.
• The study provides no clear-cut evidence for an influence of
Power Distance, Long-Term Orientation, or Uncertainty
Avoidance.
18 of 23
Cultural determinants of learning styles (3)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• It could be argued that individuals with a strong desire to
avoid uncertainty prefer abstract conceptualization, as this
allows for a reduction in uncertainty.
• At the same time, however, individuals with a very weak
desire to avoid uncertainty might also prefer this learning
style because abstract concepts may be adapted in a very
flexible way to new and unknown situations.
• Thus, individuals on the extreme poles of this cultural
dimension may be guided by two different ideals that both
favor abstract conceptualization: "The members of cultures
that fall in between may be relying on concrete experiences
as well to learn since they are not overburdened with ideals"
19 of 23
Conclusion (1)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• Joint venture partners may rely upon different sources of
guidance when handling uncertain work events. Those
differences in managerial style may be viewed negatively by
joint venture partners, and potentially lead to conflict.
• Whether cultural differences soften as management
practices become internationalized or management
practices change to adapt to deeply-rooted cultural
differences remains to be seen.
• The phenomena of convergence, crossvergence and
divergence of cultural values may depend on
 how deeply held the values are initially;
 the degree to which the values differ from the "foreign"
ideology being introduced in the workplace.
20 of 23
Conclusion (2)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• Educators may develop "toolboxes" of approaches to
teaching in order to enhance the cultural compatibility
between learner and the learning environment.
• Large universities might consider splitting student cohorts
and employing different pedagogical methods reflect
different learning styles of subgroups. It is necessary to
caution against such an approach on the grounds that
although individuals may show a preference for a specific
learning style, most research shows that students are often
multimodal.
21 of 23
Conclusion (3)
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
• There is a need to increase learners’ and teachers’
awareness of the influence of cultural values on learning
style preference in order to improve their own learning in
the sense of metacognition.
• This awareness of the effects of cultural values on one’s
own and other’s learning styles may be enhanced through
discussion about learning styles, and might improve
learning in group work situations in which students are
made aware of existing differences in learning styles and are
enabled to build on these differences in a synergistic way in
order to enhance the overall learning experience of the
group.
22 of 23
Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia 23 of 23
Plekhanov Russian University of Economics
sincerely congratulates
Shanghai Dianji University
with the 60th Anniversary!

More Related Content

What's hot

Model for Merger Management - This is a work in progress!!
Model for Merger Management - This is a work in progress!!Model for Merger Management - This is a work in progress!!
Model for Merger Management - This is a work in progress!!dmdk12
 
HRM Cultural presentation
HRM Cultural presentationHRM Cultural presentation
HRM Cultural presentationsalmanfarooq786
 
Cultural consequences of IHRM on company’s values, behavior, institutions, or...
Cultural consequences of IHRM on company’s values, behavior, institutions, or...Cultural consequences of IHRM on company’s values, behavior, institutions, or...
Cultural consequences of IHRM on company’s values, behavior, institutions, or...Masum Hussain
 
Essential skills for leadership effectiveness
Essential skills for leadership effectivenessEssential skills for leadership effectiveness
Essential skills for leadership effectivenessFernando Sorto
 
Business mangement 1.3
Business mangement   1.3Business mangement   1.3
Business mangement 1.3LeenaKP
 
Cross Cultural Business Environment
Cross Cultural Business EnvironmentCross Cultural Business Environment
Cross Cultural Business EnvironmentDharmender Gill
 
Cross cultural issues in global hrm
Cross cultural issues in global hrmCross cultural issues in global hrm
Cross cultural issues in global hrmAmit Mittal
 
The Meanings and Dimensions of Culture
The Meanings and Dimensions of Culture The Meanings and Dimensions of Culture
The Meanings and Dimensions of Culture Ujjwal 'Shanu'
 
Mindset of indian managers after TQM
Mindset of indian managers after TQMMindset of indian managers after TQM
Mindset of indian managers after TQMkarikalan murugasen
 
Organisational culture
Organisational cultureOrganisational culture
Organisational cultureRashijain154
 
Week1 cross cultural management (3)
Week1 cross cultural management (3)Week1 cross cultural management (3)
Week1 cross cultural management (3)Natt Jarat
 
Organizational Culture & Global Leadership Competencies - Sietar Intercultura...
Organizational Culture & Global Leadership Competencies - Sietar Intercultura...Organizational Culture & Global Leadership Competencies - Sietar Intercultura...
Organizational Culture & Global Leadership Competencies - Sietar Intercultura...David Sharpley CPsychol.
 
Hofstede model
Hofstede modelHofstede model
Hofstede modelsmanish92
 
Cross Cultural Impact on Performance Management the case of United Arab Emirates
Cross Cultural Impact on Performance Management the case of United Arab EmiratesCross Cultural Impact on Performance Management the case of United Arab Emirates
Cross Cultural Impact on Performance Management the case of United Arab EmiratesDaniel Getachew
 
Hofstede - Cultural differences in international management
Hofstede - Cultural differences in international managementHofstede - Cultural differences in international management
Hofstede - Cultural differences in international managementCarmen Neghina
 
Organizational culture
Organizational cultureOrganizational culture
Organizational cultureNeha Rathi
 

What's hot (20)

Hofstede model
Hofstede model Hofstede model
Hofstede model
 
Model for Merger Management - This is a work in progress!!
Model for Merger Management - This is a work in progress!!Model for Merger Management - This is a work in progress!!
Model for Merger Management - This is a work in progress!!
 
HRM Cultural presentation
HRM Cultural presentationHRM Cultural presentation
HRM Cultural presentation
 
Cultural consequences of IHRM on company’s values, behavior, institutions, or...
Cultural consequences of IHRM on company’s values, behavior, institutions, or...Cultural consequences of IHRM on company’s values, behavior, institutions, or...
Cultural consequences of IHRM on company’s values, behavior, institutions, or...
 
Essential skills for leadership effectiveness
Essential skills for leadership effectivenessEssential skills for leadership effectiveness
Essential skills for leadership effectiveness
 
Business mangement 1.3
Business mangement   1.3Business mangement   1.3
Business mangement 1.3
 
Cross Cultural Business Environment
Cross Cultural Business EnvironmentCross Cultural Business Environment
Cross Cultural Business Environment
 
Cross cultural issues in global hrm
Cross cultural issues in global hrmCross cultural issues in global hrm
Cross cultural issues in global hrm
 
The Meanings and Dimensions of Culture
The Meanings and Dimensions of Culture The Meanings and Dimensions of Culture
The Meanings and Dimensions of Culture
 
Mindset of indian managers after TQM
Mindset of indian managers after TQMMindset of indian managers after TQM
Mindset of indian managers after TQM
 
Organisational culture
Organisational cultureOrganisational culture
Organisational culture
 
Week1 cross cultural management (3)
Week1 cross cultural management (3)Week1 cross cultural management (3)
Week1 cross cultural management (3)
 
Organizational Culture & Global Leadership Competencies - Sietar Intercultura...
Organizational Culture & Global Leadership Competencies - Sietar Intercultura...Organizational Culture & Global Leadership Competencies - Sietar Intercultura...
Organizational Culture & Global Leadership Competencies - Sietar Intercultura...
 
Hofstede model
Hofstede modelHofstede model
Hofstede model
 
Cross Cultural Impact on Performance Management the case of United Arab Emirates
Cross Cultural Impact on Performance Management the case of United Arab EmiratesCross Cultural Impact on Performance Management the case of United Arab Emirates
Cross Cultural Impact on Performance Management the case of United Arab Emirates
 
Global business
Global businessGlobal business
Global business
 
Canada vs India Hofstede
Canada vs India HofstedeCanada vs India Hofstede
Canada vs India Hofstede
 
Hofstede - Cultural differences in international management
Hofstede - Cultural differences in international managementHofstede - Cultural differences in international management
Hofstede - Cultural differences in international management
 
Organizational culture
Organizational cultureOrganizational culture
Organizational culture
 
Intercultural communication
Intercultural communicationIntercultural communication
Intercultural communication
 

Similar to Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia

International management context and challenges
International management  context and challengesInternational management  context and challenges
International management context and challengesNarendra Kumar
 
An explorative treatment of idiosyncratic supposition of management values in...
An explorative treatment of idiosyncratic supposition of management values in...An explorative treatment of idiosyncratic supposition of management values in...
An explorative treatment of idiosyncratic supposition of management values in...Alexander Decker
 
The cross cultural training for the global workforce and
The cross cultural training for the global workforce andThe cross cultural training for the global workforce and
The cross cultural training for the global workforce andsudeeppanicker
 
21 organization development in global settings
21   organization development in global settings21   organization development in global settings
21 organization development in global settingsArchith Nathan
 
Employee engagement in russia 09 2012 preview. what corporate culture is not
Employee engagement in russia 09 2012 preview. what corporate culture is notEmployee engagement in russia 09 2012 preview. what corporate culture is not
Employee engagement in russia 09 2012 preview. what corporate culture is notAwara Direct Search
 
The Impact Of Cultural Dimensions On The Emerging...
The Impact Of Cultural Dimensions On The Emerging...The Impact Of Cultural Dimensions On The Emerging...
The Impact Of Cultural Dimensions On The Emerging...Tracy Clark
 
Global LeadershipDevelopmentJ ^ a í Global Organization.docx
Global LeadershipDevelopmentJ ^ a í Global Organization.docxGlobal LeadershipDevelopmentJ ^ a í Global Organization.docx
Global LeadershipDevelopmentJ ^ a í Global Organization.docxshericehewat
 
In the Eye of the BeholderCross Cultural Lessons in Leaders.docx
In the Eye of the BeholderCross Cultural Lessons in Leaders.docxIn the Eye of the BeholderCross Cultural Lessons in Leaders.docx
In the Eye of the BeholderCross Cultural Lessons in Leaders.docxjaggernaoma
 
Sara Minard- Umass Social Entrepreneurship Day 2015
Sara Minard- Umass Social Entrepreneurship Day 2015Sara Minard- Umass Social Entrepreneurship Day 2015
Sara Minard- Umass Social Entrepreneurship Day 2015Erun Fernando
 
Introduction to management groups g-i - wed sep 10 2008- the environment an...
Introduction to management   groups g-i - wed sep 10 2008- the environment an...Introduction to management   groups g-i - wed sep 10 2008- the environment an...
Introduction to management groups g-i - wed sep 10 2008- the environment an...Diego Thomas
 
INTERNATIONAL DIMENSIONS OFORGANIZATIONAL BEHAVIOR.docx
INTERNATIONAL DIMENSIONS OFORGANIZATIONAL BEHAVIOR.docxINTERNATIONAL DIMENSIONS OFORGANIZATIONAL BEHAVIOR.docx
INTERNATIONAL DIMENSIONS OFORGANIZATIONAL BEHAVIOR.docxBHANU281672
 
An interest in other lands and people is part of the human experie
An interest in other lands and people is part of the human experieAn interest in other lands and people is part of the human experie
An interest in other lands and people is part of the human experieaman341480
 
Diversity progam
Diversity progamDiversity progam
Diversity progamUma Jain
 
Rmcgary__trendsinorganizationalculture_03122016
Rmcgary__trendsinorganizationalculture_03122016Rmcgary__trendsinorganizationalculture_03122016
Rmcgary__trendsinorganizationalculture_03122016Ron McGary
 
Rmcgary__trendsinorganizationalculture_03122016
Rmcgary__trendsinorganizationalculture_03122016Rmcgary__trendsinorganizationalculture_03122016
Rmcgary__trendsinorganizationalculture_03122016Ron McGary
 
The dimension of culture.docx
The dimension of culture.docxThe dimension of culture.docx
The dimension of culture.docx4934bk
 

Similar to Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia (20)

International management context and challenges
International management  context and challengesInternational management  context and challenges
International management context and challenges
 
Week 2
Week 2Week 2
Week 2
 
An explorative treatment of idiosyncratic supposition of management values in...
An explorative treatment of idiosyncratic supposition of management values in...An explorative treatment of idiosyncratic supposition of management values in...
An explorative treatment of idiosyncratic supposition of management values in...
 
The cross cultural training for the global workforce and
The cross cultural training for the global workforce andThe cross cultural training for the global workforce and
The cross cultural training for the global workforce and
 
21 organization development in global settings
21   organization development in global settings21   organization development in global settings
21 organization development in global settings
 
Employee engagement in russia 09 2012 preview. what corporate culture is not
Employee engagement in russia 09 2012 preview. what corporate culture is notEmployee engagement in russia 09 2012 preview. what corporate culture is not
Employee engagement in russia 09 2012 preview. what corporate culture is not
 
The Impact Of Cultural Dimensions On The Emerging...
The Impact Of Cultural Dimensions On The Emerging...The Impact Of Cultural Dimensions On The Emerging...
The Impact Of Cultural Dimensions On The Emerging...
 
Ccdm ppt 2011
Ccdm ppt 2011Ccdm ppt 2011
Ccdm ppt 2011
 
Global LeadershipDevelopmentJ ^ a í Global Organization.docx
Global LeadershipDevelopmentJ ^ a í Global Organization.docxGlobal LeadershipDevelopmentJ ^ a í Global Organization.docx
Global LeadershipDevelopmentJ ^ a í Global Organization.docx
 
In the Eye of the BeholderCross Cultural Lessons in Leaders.docx
In the Eye of the BeholderCross Cultural Lessons in Leaders.docxIn the Eye of the BeholderCross Cultural Lessons in Leaders.docx
In the Eye of the BeholderCross Cultural Lessons in Leaders.docx
 
Thesis outline
Thesis outlineThesis outline
Thesis outline
 
Sara Minard- Umass Social Entrepreneurship Day 2015
Sara Minard- Umass Social Entrepreneurship Day 2015Sara Minard- Umass Social Entrepreneurship Day 2015
Sara Minard- Umass Social Entrepreneurship Day 2015
 
Introduction to management groups g-i - wed sep 10 2008- the environment an...
Introduction to management   groups g-i - wed sep 10 2008- the environment an...Introduction to management   groups g-i - wed sep 10 2008- the environment an...
Introduction to management groups g-i - wed sep 10 2008- the environment an...
 
INTERNATIONAL DIMENSIONS OFORGANIZATIONAL BEHAVIOR.docx
INTERNATIONAL DIMENSIONS OFORGANIZATIONAL BEHAVIOR.docxINTERNATIONAL DIMENSIONS OFORGANIZATIONAL BEHAVIOR.docx
INTERNATIONAL DIMENSIONS OFORGANIZATIONAL BEHAVIOR.docx
 
An interest in other lands and people is part of the human experie
An interest in other lands and people is part of the human experieAn interest in other lands and people is part of the human experie
An interest in other lands and people is part of the human experie
 
Diversity progam
Diversity progamDiversity progam
Diversity progam
 
Rmcgary__trendsinorganizationalculture_03122016
Rmcgary__trendsinorganizationalculture_03122016Rmcgary__trendsinorganizationalculture_03122016
Rmcgary__trendsinorganizationalculture_03122016
 
Rmcgary__trendsinorganizationalculture_03122016
Rmcgary__trendsinorganizationalculture_03122016Rmcgary__trendsinorganizationalculture_03122016
Rmcgary__trendsinorganizationalculture_03122016
 
The dimension of culture.docx
The dimension of culture.docxThe dimension of culture.docx
The dimension of culture.docx
 
Being Chinese
Being ChineseBeing Chinese
Being Chinese
 

Recently uploaded

10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdfJayanti Pande
 
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINTARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINTDR. SNEHA NAIR
 
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfYu Kanazawa / Osaka University
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfMohonDas
 
Slides CapTechTalks Webinar March 2024 Joshua Sinai.pptx
Slides CapTechTalks Webinar March 2024 Joshua Sinai.pptxSlides CapTechTalks Webinar March 2024 Joshua Sinai.pptx
Slides CapTechTalks Webinar March 2024 Joshua Sinai.pptxCapitolTechU
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 
How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17Celine George
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17Celine George
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...Nguyen Thanh Tu Collection
 
Optical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxOptical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxPurva Nikam
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfMohonDas
 
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya
 
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSyedNadeemGillANi
 
Ultra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxUltra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxDr. Asif Anas
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17Celine George
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
A gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceA gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceApostolos Syropoulos
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxraviapr7
 

Recently uploaded (20)

10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf10 Topics For MBA Project Report [HR].pdf
10 Topics For MBA Project Report [HR].pdf
 
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINTARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
 
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdf
 
Slides CapTechTalks Webinar March 2024 Joshua Sinai.pptx
Slides CapTechTalks Webinar March 2024 Joshua Sinai.pptxSlides CapTechTalks Webinar March 2024 Joshua Sinai.pptx
Slides CapTechTalks Webinar March 2024 Joshua Sinai.pptx
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 
How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
Optical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxOptical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptx
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdf
 
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
 
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
 
Ultra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxUltra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptx
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
A gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceA gentle introduction to Artificial Intelligence
A gentle introduction to Artificial Intelligence
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptx
 

Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia

  • 1. Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia Global Business Model Innovation: An International Conference Shanghai Dianji University 60th Anniversary, October 2013 by Dmitry Shtykhno, Ph.D. Dean of the School of Business, Plekhanov Russian University of Economics
  • 2. Contents • Introduction: most popular questions regarding managerial issued of cross-cultural decision- making • Studies of the impact of culture on managerial work values • Studies of the cultural determinants of learning styles • Conclusion: convergence, crossvergence and divergence of cultural valuesenhance the cultural compatibility between learner and the learning environment 2 of 23Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia
  • 3. Introduction (1) • With the growth of globalization, cultural sensitivity and understanding in dealing with global complexities involved in conducting business in host countries have been expanding Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia 3 of 23
  • 4. Introduction (2) • Culture… – way of organizing life, of thinking, and of conceiving the underlying assumption about the family, the state, the economic system, and even Man himself (Hall, 1959) – every aspect of life: know-how, technical knowledge, customs of food and dress, mentality, values, language, symbols, socio-political and economic behavior, indigenous methods of making decisions and exercising power, methods of production and economic relations, and so on (Verhelst, 1990) – "software of mind“ which povides a guide for humans on how to think and behave; it is a problem solving tool (Hofstede , 2001) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia 4 of 23
  • 5. Introduction (3) • An essential skill for managing people and processes in other nations is "cultural savvy" which is mangers having a working knowledge of the cultural variables affecting management decisions (Risks, 1983) • Cultural sensitivity or cultural empathy is the recognition and sincerely caring about other people's cultures (Joinson, 1998) • Cultural awareness enables managers to develop appropriate policies and determine how to plan, organize, and control in a specific international organization (Khairullah, 2013 ) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia 5 of 23
  • 6. Introduction (4) • Two major issues of developing cultural savvy for success in global business: Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia the impact of culture on managerial work values (what to teach); cultural determinants of learning styles (how to teach). 6 of 23
  • 7. Impact of culture on managerial work values (1) • As many international companies consider trying to become global organizations in the sense of having a seamless or borderless approach to organization, the issues of convergent/divergent values becomes more relevant. Those organizations that strive to become global enterprises envision a unified approach to business that transcends cultural differences (Porter, 1986). Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • With a global approach to organization, not only must the organization understand the diverse values systems of its multi-local operation, but, if it is to create a seamless/borderless organization, it must now try to integrate these diverse value systems into a common corporate culture (Yip, 1992). 7 of 23
  • 8. Impact of culture on managerial work values (2) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia Business environment ideology and country culture have been identified as the primary forces that shape one's values Convergence theory: the ideology of the workplace drives values Divergence theory: country culture, not workplace ideology, drives values Crossvergence theory: work ideology and country culture interact to create a new and unique value system that is based on the melding of both cultural and ideological influences 8 of 23
  • 9. Impact of culture on managerial work values (3) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia The Hofstede (1980) typology is often used as a starting point in developing a framework for contrasting the work values of the countries. Country Power Distance Individualism Masculinity Uncertainty Avoidance Long Term Orientation USA Russia China 40 L 95* H 80* H 91 H 50* M 20* L 62 H 40* L 50* M 46 L 90* H 60* M 29 L 10* L 118 H H(igh) = top third, M(edium) = medium third, L(ow) = bottom third * - estimated 9 of 23
  • 10. Impact of culture on managerial work values (4) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia Extreme collectivist orientation with some shift away from collectivist values towards individualist values,a change in emphasis away from political/social goals towards economic goals. Individualism with preferences for equity in which distributions are proportionate to individual contributions More "collectivist" than the USA, although to a much lesser degree than China, a less deeply-rooted collectivist orientation than in China Individualism, capitalism, and income differentiation The combination of collectivism, socialism and egalitarian pay practices Egalitarianism traced to Confucian principles 10 of 23
  • 11. Impact of culture on managerial work values (5) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia Study of the impact of culture and ideology on managerial work values conducted by David A. Ralston, David H. Holt, Robert H. Terpstra and Yu Kai-cheng (1997) used well-developed set of 10 subdimensions and three higher-order dimensional continua that are comparable to SVS - The Schwartz Value Survey (Schwartz, 1992) individualism collectivism 11 of 23
  • 12. Impact of culture on managerial work values (6) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia The individualism/collectivism continuum clearly follows the crossvergence with culture-dominant hypothesis. The openness-to-change/conservation dimension also suggests a crossvergence effect while neither culture nor ideology appears dominant for the openness dimension. The self-enhancement/self-transcendence dimension is interesting because in part it supports crossvergence, while in part supporting convergence. Russia is more likely to adopt the current Western capitalism ideology than China. Nonetheless, that is not to suggest that China will not develop its own form of capitalism, but more likely one that is uniquely compatible with the Chinese value system. 12 of 23
  • 13. Impact of culture on managerial work values (7) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • Study conducted by Jane K. Giacobbe-Miller, Daniel J. Miller, and Vladimir I. Victorov (1999) examines pay values (meaning the perceived fairness and appropriateness of pay allocations within an organization) and allocative behaviors by organizational type in China, Russia and the United States. • Researchers assume that the introduction of Western managerial systems (particularly pay systems) in both Russia and China create the conditions in which convergence, crossvergence or divergence might occur. • Results relating to expressed values supported crossvergence theory, whereas results relating to allocative behaviors supported convergence theory for the Chinese managers and crossvergence theory for the Russian managers. 13 of 23
  • 14. Impact of culture on managerial work values (8) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • Evidence of divergence and crossvergence seems most apparent in allocative behaviors as opposed to expressed values. While both Russian and Chinese managers (regardless of organization type) appear "quite capitalist" in their expressed rejection of equality and need-based rules, Russian managers in state-owned enterprises and Chinese managers in both state- owned enterprises and joint ventures/foreign-owned enterprises allocated the bonus in a collectivist manner. • In contrast, managers in Russian joint ventures/foreign-owned enterprises and in the United States were significantly more individualistic in their allocations. • It is also necessary to note that expressed values are different from allocative behaviors. 14 of 23
  • 15. Impact of culture on managerial work values (9) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • Study of Peter Smith, Mark Peterson, and Zhong Ming Wang (1996) tested assumptions that managers from Asian and Western cultures would differ in the extent to which they relied on specific sources of guidance and support when responding to uncertain work events. • Managers in the US were found to rely most heavily on their own experience and skills, especially when improving team work or dealing with subordinates. In contrast, Chinese managers were more likely to rely on rules and procedures. • While US managers reported a low reliance upon peers, the Chinese managers appear to be least likely to rely on their peers. • All managers also reported a low reliance upon their subordinates, with managers in the US reporting the least amount of reliance upon subordinates. 15 of 23
  • 16. Impact of culture on managerial work values (10) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • Smith and his colleagues also found differences among the managers in their reactions to the different types of work events. • The US managers favored their own experiences in the most of event types, but were also likely to rely on their subordinates, particularly in improving teamwork. The US managers indicated a reluctance to involve their superiors in improving work quality or their peers in deciding how to use raw materials more effectively. • The Chinese managers' reliance on their own experience was generally less consistent and appeared to be viewed negatively in events involving the changing of work procedures or rewarding subordinates for good work. Chinese managers were also not likely to rely on their subordinates when improving teamwork or communicating with senior management, or their peers when changing work procedures. 16 of 23
  • 17. Cultural determinants of learning styles (1) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia Kolb’s (1984) classification of learning styles is based on the assumption that individual learning can be conceptualized as a circular process consisting of four activity stages. 17 of 23
  • 18. Cultural determinants of learning styles (2) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • Dirk Holtbrügge and Alexander T. Mohr (2010) in their research of the cultural determinants of learning styles develop hypotheses that relate dimensions of culture to the likelihood that individuals prefer one learning style over another. • The study reveals a positive influence of individualism on the odds that learners prefer a learning style characterized by active experimentation and abstract conceptualization, that is, Convergence. • Masculinity was found to have a positive effect on the likelihood that learners prefer a learning style characterized by abstract conceptualization and reflective observation, that is, Assimilation. • The study provides no clear-cut evidence for an influence of Power Distance, Long-Term Orientation, or Uncertainty Avoidance. 18 of 23
  • 19. Cultural determinants of learning styles (3) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • It could be argued that individuals with a strong desire to avoid uncertainty prefer abstract conceptualization, as this allows for a reduction in uncertainty. • At the same time, however, individuals with a very weak desire to avoid uncertainty might also prefer this learning style because abstract concepts may be adapted in a very flexible way to new and unknown situations. • Thus, individuals on the extreme poles of this cultural dimension may be guided by two different ideals that both favor abstract conceptualization: "The members of cultures that fall in between may be relying on concrete experiences as well to learn since they are not overburdened with ideals" 19 of 23
  • 20. Conclusion (1) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • Joint venture partners may rely upon different sources of guidance when handling uncertain work events. Those differences in managerial style may be viewed negatively by joint venture partners, and potentially lead to conflict. • Whether cultural differences soften as management practices become internationalized or management practices change to adapt to deeply-rooted cultural differences remains to be seen. • The phenomena of convergence, crossvergence and divergence of cultural values may depend on  how deeply held the values are initially;  the degree to which the values differ from the "foreign" ideology being introduced in the workplace. 20 of 23
  • 21. Conclusion (2) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • Educators may develop "toolboxes" of approaches to teaching in order to enhance the cultural compatibility between learner and the learning environment. • Large universities might consider splitting student cohorts and employing different pedagogical methods reflect different learning styles of subgroups. It is necessary to caution against such an approach on the grounds that although individuals may show a preference for a specific learning style, most research shows that students are often multimodal. 21 of 23
  • 22. Conclusion (3) Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia • There is a need to increase learners’ and teachers’ awareness of the influence of cultural values on learning style preference in order to improve their own learning in the sense of metacognition. • This awareness of the effects of cultural values on one’s own and other’s learning styles may be enhanced through discussion about learning styles, and might improve learning in group work situations in which students are made aware of existing differences in learning styles and are enabled to build on these differences in a synergistic way in order to enhance the overall learning experience of the group. 22 of 23
  • 23. Developing Cultural Savvy for Success in Global Business: Case of China, USA and Russia 23 of 23 Plekhanov Russian University of Economics sincerely congratulates Shanghai Dianji University with the 60th Anniversary!