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Ryla leadership. rotary.june28,2005

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Presented to RYLA Rotary Leadership Program in Rochester, New York. June 28, 2005

Presented to RYLA Rotary Leadership Program in Rochester, New York. June 28, 2005

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  • 1. Managing Cultural Diversity in Global BusinessRYLA Program at RIT Presented by Nat Yogachandra June 28, 2005
  • 2. AMECO Petroleum
  • 3. Partial list ofcompanies/ brands owned by foreigncompanies
  • 4. What is the Nationality
  • 5. What is the Nationality Headquartered in Japan Controlled by Renault (partly owned by the French government In Mississippi, it’s a domestic car
  • 6. What is the Nationality
  • 7. What is the Nationality  Symbol of British Empire  Built by Germans - BMW
  • 8. What is the Nationality
  • 9. What is the Nationality  Swedish brand  Owned by Americans
  • 10. What is the Nationality  Swedish brand  Subsidiary of General motors  Symbol of British Empire  Owned by Americans
  • 11. PT Cruiser – More German or Mexican than AmericanManufacturedin MexicoOwned by theGermans
  • 12. A WORLDLY PLANE One- half of McDonnell Douglas Corp,’s MD-95 was built overseas Allied Signal Halla Heavy Fischer (Austria) Industries Alenia (Italy) (U.S.) Interior Environmental (Korea) Fuselage Controls WingHoneywell (U.S.)Avionics Israel Aircraft ShinMaywaKorean (Israel) IndustriesAerospace Landing gear (Japan)(Korea) Horizontal Tail Allied Signal (U.S.) BMW/RollsroyceNose APIC (France) (Britain) Customer Avionics Engines Auxiliary power 1997 – McDonnell merged with Boeing and renamed to 717
  • 13. Foreign Companies Have Control of Nearly all the U.S. electronics industry Nearly all of the photo imaging industry Majority of the U.S. book/magazine publishing Almost half of the U.S. major motion picture studios One of the Big 3 auto manufacturers Majority of the U.S. tire manufacturers Large segment s of the U.S. food distribution
  • 14. Toy Industry in the U.S.American IconsOne after another …. Labeled American-Made in China made, but racks, tiles and letter bags are made in China Timer – Made in Taiwan Playing pieces and Dice – made in Britain Rest made in America Bath tub finger paints are made in China But, bath tub tints – fizzy water color tablets are made in the U.S.A. Swan Lake Barbie and Happy Birthday Barbie are made in Indonesia The plastic Volvo that carries her and friends are made in China
  • 15. Customer Services moving overseas Customer services are moving to India, Philippines, China, Mexico, and Ireland. GE customer services calls - answered by Indians from a small village closer to Mumbai in India (also Nike, AMEX, BA) GE Capital saves up to $340 million a year by moving tasks to India Toshiba – call center is in IstanbulAverage software engineer salary in U.S. = $75,000India = $10,000 …. China = $15,000 - $20,000
  • 16. India Woos Medical Tourists A clinic recently opened in Mumbai Private heart surgery in England is $50,000 The same cost applies to joint replacement,neurosurgery and cancer treatment The Maharashtra State government is nowworking with British Medical Services
  • 17. Salary Structure India versus the World IT Employee Cost per YearCountry Cost per YearIndia $8,000Canada $36,000Ireland $28,000China $ 9,600Israel $25,000Philippines $ 7,000Eastern Europe $ 7,000Russia $ 7,000Mexico $ 7,000South Africa $18,000
  • 18. Global Business Capital raised in London in the Eurodollar market by a New York- based corporation may finance the acquisition of heavy machinery plant located in China
  • 19. Global Business A management team from a local firm in Rochester may take over a French-built automotive machinery plant in Indonesia
  • 20. Global Business A German is appointed President of a major American Corporation in Rochester, while an American is appointed head of a Swiss bank
  • 21. Business Today Business are operated across cultures today Definition of success now travel beyond national boundaries
  • 22. Business Today Growing importance of business creates a demand for managers, who are:  Sophisticated in international management  Skilled at working with people from other countries  Emphasize on cross cultural management
  • 23. Culture Culture is a complex concept with many different definitions. o Cultured is the learned and shared values, beliefs and behaviors of a group of interacting people o It is NOT innate – we are not born with a culture
  • 24. Culture has an influence on… Communications styles (Yes or No) Resolving conflicts How supervisors and subordinates are perceived After work socialization Negotiation style Decision making Managing our business…..
  • 25. CultureSub-cultures:Based on race, class or geographiclocationUnited StatesJapanese youthAristocrats in BritainIndiaChinaSub culture is NOT inferiorRegard all equally
  • 26. Culture is like an Iceberg Language, food ,First Impressions Stereotypes dress, manners and10% above surface ext. appearance Visible Aspects Thoughts Pattern of work Religious Beliefs Decision making pace Traditions Social role and status90 % below surface Fundamental Values Body language Confidence – Building Individual and group roles Invisible Aspects Views of Life and Prejudices Dealing with conflicts Journey of Self/Discovery
  • 27. Four Dimensions of Cultural Distance  Individualism and Collectivism  Power Distance  High and Low Context  Universalistic and Particularistic
  • 28. Individualism vs. Collectivism Individualism  More self-centered/emphasize on individual goals  Prefer clarity in their communications- effectively as opposed to a group  Individual responsible for own actions  Name a few countries
  • 29. Individualism vs. Collectivism Individualism  More self-centered/emphasize on individual goals  Prefer clarity in their communications- effectively as opposed to a group  Individual responsible for own actions  USA, Western Europe cultures
  • 30. Individualism vs. Collectivism Collectivism Have great emphasis on groups and think more in terms of “WE,” against “I” Harmony and loyalty within the team  Japan - The nail that sticks up gets hammered down Employee loyalty is more important than efficiency Name a few countries
  • 31. Individualism vs. Collectivism Collectivism Have great emphasis on groups and think more in terms of “WE,” against “I” Harmony and loyalty within the team  Japan - The nail that sticks up gets hammered down Employee loyalty is more important than efficiency – Arabs E.g.: Japan, China, ASEAN, Greece, Italy, Mexico, Brazil, Middle Eastern
  • 32. Power DistanceHigh Power DistanceLow Power Distance
  • 33. Power High Power Distance  Hierarchy is important for success  “Expert Role’”- the boss is always correct and clearly has authority over subordinates  Subordinates rarely consider by passing the boss China, Russia, Mexico, Hong Kong, India, Korea, Indonesia
  • 34. Power Distance Low Power Distance  Hierarchy is less important  Employees expect to bypass the boss frequently in order to get their work done  Belief in flat, less hierarchical organizations with clear roles USA, Germany, Netherlands, Denmark, Norway, Australia, New Zealand
  • 35. Hierarchy in KoreaExtremely hierarchical and status-orientedEach class has a set of prescribed rules thatdictate behavior and protocol.Follow the rules pertaining to their class Parent to child Male to female Elder to youngster Teacher to student Boss to subordinate Customer to vendor
  • 36.  Chairman: hwoichang  President: sachangHierarchy  Vice president: busachangin Korea  Executive director: jornmu  Managing director: sangmu Businessmen  Director: eesah are sensitive to  Department manager: puchang titles  Deputy department manager: chachang  Section chief: kwachang  Deputy section chief: daerhee  Chief clerk/supervisor: kaychang
  • 37. Korea: Goodbye to ConfuciusA woman must obey herfather before marriageObey her husband during hermarried lifeObey her eldest son after thedeath of her husband - Confucius
  • 38. High Context Culture Emphasize non-verbal communications Verbal message will be less direct (also emphasize on social relationships) Arab countries, Southern Europe (Italy, Greece) and South America, Japan
  • 39. Low Context Culture Place more emphasis/more direct on the message What you say is more important than how you say it. Britain, America and Western
  • 40. Universalistic Society Rules and relationships Laws are written for everyone and must be upheld by all• Legal or illegal takes precedence over personalities involved in the situation.• Rely on extensive contracts to conduct business USA, Canada, Western Europe,
  • 41. Particularistic Society Rules and relationships• It makes a big difference if someone is a friend or relative• Use much looser agreement and rely on the strength of their personal relationship to maintain the commitment• View detail contracts (e.g.) penalty clauses as a sign that they are not trusted and therefore no relationship South Korea, China, Mexico, Russia, Indonesia
  • 42. Cross-Cultural Judgment Cross-culturally we use our own culture as a standard of measurement: A Swiss executive waits more than an hour past the appointment time for his Spanish colleague to arrive and to sign a supply contract In his impatience he concludes that Spaniards must be lazy and totally unconcerned about business The Swiss executive has misevaluated his colleague by negatively comparing him to his own cultural standards for business punctuality Implicitly, he has labeled his own culture’s behavior as good and the Spanish do not arrive on time and that is bad”)
  • 43. Japanese as seen by others Appearance Vs Reality They deafen you with silence  Reality. True. Silence show respect for the speaker. They often look glum  Reality. Happiness hides behind a straight face They say YES when they mean NO  Reality. They do not like to offend you by showing open disagreement or refusal They never look you right in the eye  Reality. They are taught that it is rude to stare When they smile, they do not look sincere  Reality. They often smile to make you feel comfortable – one should be thankful
  • 44. Differences : American - Mexican Aspect Mexico United States Work/Leisure Works to live. Leisure considered Lives to work. Leisure seen as reward essential for full life for hard work Loyalty Mostly loyal to superior (person than Mainly self-loyalty. Performance organization) motivated by ambition Staffing Family and friends are preferred due to Relatives usually barred. No nepotism trustworthiness. Promotions based on here. Promotions based on performance loyalty to superiorCompetition Avoids personal competition. Favors Enjoys proving self in competitive harmony at work situationsTime Relative concept. Deadlines flexible Literal imperative. Deadlines and commitments are firmFamily Family is the first priority. Children are Family is usually second to work. Children celebrated and sheltered. Wife fulfills often minimally parented; are independent. domestic role Wife often fulfills dual rolesPersonal Appearance Dress and grooming are status symbols Appearance is secondary to performanceStatus Title and position more important than Money is main status measure and is money in eyes of society reward for achievementEthics Truth is tempered by need for diplomacy. Direct Yes/No answers given and Truth is a relative concept expected. Truth seen as absolute value
  • 45. Differences: Germany - Asia Germany Asia The highest ranking or eldest person  True in most Asian countries (Japan, usually enters the room first. Korea, Thailand) It’s always the senior person begin and lead the conversation  True in some NE Asian countries Generally, prefers 3rd party intro.  Some physical space More physical space between each person Versus Asians, Americans or  Have tea, share jokes, talk about Europeans family and favorite sports before and after meetings Expect to plunge straight into matters  Spend lots of time getting to know without any jokes, humor, small talk or each other and build trust during sharing photo of the kids meetings and after meetings Tend to separate their private and professional lives (unlike Americans)  Friendship First, Tasks Later Nonconfrontational. Good strategy is not to “trash” the competition  Hard negotiators. Have lots of patience Tasks First, Friendship later  Sending advanced presentation Hard negotiators. Discussion is likely to be materials help the Asians to the point  Not deadly serious
  • 46. Other Cultural Aspects Importance of Face  Direct criticism  Use a third party to convey your message Avoiding Eye Contact Touching the head of a Thai secretary Yes and No Language of time  Delay means – not interested or low priority (West)  Low-level officials elevate the prestige of their work by taking long time to complete a work (East)
  • 47. Eye Contact In cultures, where power distance is high, the speakers will maintain close eye contact when delivering messages. Implies dominance and one’s personal position ( Spain, Greece and Arab countries) Latino culture- staring means dissatisfaction and anger or romantic interest
  • 48. Japanese non-verbal message Smile does not necessarily indicate agreement. It may reflect sorrow or embarrassment for you or for them If a foreigner insists on request a yes or no answer, they will usually smile Sighing means relief in Japanese culture Removing glasses or stretching ears indicates confusion Crossed arms means possible refusal, disagreement or wonder If a Japanese sucks air through his teeth, it is a non verbal sign that he has a problem Direct eye contact is impolite When a Japanese pat their head they are disappointed or don’t understand Remaining silent means they are thinking or simply have nothing to discuss. BUT, DO NOT put your cards on the table right away
  • 49. Distance Between People According to a study of space in communications across cultures Conversation distances  U.S. and European 18” to 30”  Latin American/Caribbean 8” to 18”  Saudi 9” to 10” Leads to stereotypes….
  • 50. TOUCHING Greeting:  European American men: shake hands with little touching there-after  Jamaican, Latino men, Caribbean: Hugging, slapping backs, body contact. Sometimes grabbing the arm for a few seconds  European Americans feel that Latinos touch to a degree that is uncomfortable, threatening and oftentimes insulting to European Americans . May be perceived flirting or sexual harassment
  • 51. TOUCHED BY an AlienCrown Prince Abdullah and Canadian PM, Jean ChretianPresident Bush and President Mubarak
  • 52. May be YES or NO - Philippines Filipino “yes” puzzles most foreigners. A YES could mean  Just that or it could also mean  May be” or  I do not know or  If it will please you Filipinos generally say what other person wants to hear
  • 53. May be YES or NO - Indonesia Impolite to say NO in Indonesia YES means sometimes “I mean NO”
  • 54. May be YES or NO - Mexico  Mexicans avoid saying “NO”  “May be” or “We will see” may actually mean ‘NO”
  • 55. May be YES or NOWhen a Saudi says “yes’ itusually means “possibly”
  • 56. May be YES or NO - India The word “NO” has harsh implications Evasive refusals are more common, and are considered more polite
  • 57. May be YES or NO - China The closest a traditional Chinese businessperson ever gets to saying “NO” would be “It would be difficult.”
  • 58. May be YES or NO – Hong Kong“YES” does not necessarily mean“I agree with you.” A closer meaning would be “I heard you”
  • 59. Working with Numbers Si (four) Sounds like “death” in Chinese4   Avoid using 4 in contracts- brings bad luck in China, Japan, Korea and Asia6  Lin (Six) Represents luck. It also stands for six spirits of7 nature- wind, mountain, river, lightning, moon and sun  Seven is lucky number in Japan and Western World8  Ba (eight) – Sound like fa- wealthy- and is accepted for all occasions – Hong Kong, Japan and other Pacific countries9  Ju (nine)- stands for longevity. In ancient times, only Chinese emperors were allowed to use number 9. The forbidden city in China was designed with 9,999 rooms9
  • 60. What color (or is it colour)
  • 61. Gift Giving- Business Gift giving is an art in Japan. Integral part of the culture  Observe proper etiquette. Do not open directly upon receiving  Use the most auspicious colors for wrapping Germans do not give or expect expensive gifts  Not a major part of German business etiquette. Anything with your company logo is safe. Perfume and other clothing considered too personal French likes good taste in business gifts  Avoid gifts with your company logo. Do not include your business card with your gift. Bring flowers or fine chocolates or liqueur to the host and present them before, not after the party Gift giving in China is a sensitive issue
  • 62. Importance of Gift-Giving High Priority  Japan Medium Priority  Pacific Rim countries  South Korea, Taiwan, Hong Kong, China, Thailand, Malaysia, The Philippines, Indonesia, and Singapore Low Priority  United States  Canada  Australia  Europe
  • 63. Managers Working for Multi-national Companies Should An ability to get along well with people An awareness of cultural differences Open-mindedness Tolerance of foreign culture Adaptability to new cultures, ideas and challenges An ability to adjust quickly to new conditions An interest in facts and not blind assumptions An ability to learn foreign language
  • 64. Test your cultural knowledge In some South American countries, it is considered normal and acceptable to show up for a social appointment: ten to fifteen minutes early ten to fifteen minutes late fifteen minutes to an hour late one to two hours late
  • 65. Test your cultural knowledge In some South American countries, it is considered normal and acceptable to show up for a social appointment: ten to fifteen minutes early ten to fifteen minutes late fifteen minutes to an hour late one to two hours late
  • 66. Test your cultural knowledge When eating in India, it is appropriate to: take food with your right hand and eat with your left take food with your left hand and eat with your right take food and eat it with your left hand take food and eat it with your right hand
  • 67. Test your cultural knowledge When eating in India, it is appropriate to: take food with your right hand and eat with your left take food with your left hand and eat with your right take food and eat it with your left hand take food and eat it with your right hand
  • 68. Test your cultural knowledge One wedding gift that should not be given to a Chinese couple would be:  a jade bowl  a clock  a basket of oranges  shifts embroidered with dragon patterns4
  • 69. Test your cultural knowledge One wedding gift that should not be given to a Chinese couple would be: a jade bowl a clock a basket of oranges shifts embroidered with dragon patterns4
  • 70. Test your cultural knowledgeIf you wanted to give a necktieor scarf to a Latin American, it isbest to avoid the color: red purple green black
  • 71. Test your cultural knowledgeIf you wanted to give a necktieor scarf to a Latin American, it isbest to avoid the color: red purple green black
  • 72. Test your cultural knowledge When doing business in Japan, never: $ a. touch someone $ b. leave your chopsticks in the rice $ c. take people to pricier restaurants than they took you $ d. all of the above Source: Hoggard International
  • 73. Test your cultural knowledge When doing business in Japan, never: $ a. touch someone $ b. leave your chopsticks in the rice $ c. take people to pricier restaurants than they took you $ d. all of the above Source: Hoggard International
  • 74. Test your cultural knowledge In Japan, loudly slurping your soup is considered to be: $ a. rude and obnoxious $ b. a sign that you like the soup $ c. okay at home but not in public $ d. something that only foreigners do Source: Hoggard International
  • 75. Test your cultural knowledge In Japan, loudly slurping your soup is considered to be: $ a. rude and obnoxious $ b. a sign that you like the soup $ c. okay at home but not in public $ d. something that only foreigners do Source: Hoggard International
  • 76. Test your cultural knowledge As an American teacher you have the opportunity to study for a year at one of the better Japanese universities. Today one of the professors has treated a subject which you had already studied. You are sure that he was wrong in some crucial part of the matter. You feel the obligation to do something about your point of view. How do you approach this matter? You try to gather signatures from those fellow students who agree with your opinion on the problem. You go to the dean and talk to him about the low performance of the professor. You go to the professor to apologize for your interference and show your interest in the subject.
  • 77. Test your cultural knowledge As an American teacher you have the opportunity to study for a year at one of the better Japanese universities. Today one of the professors has treated a subject which you had already studied. You are sure that he was wrong in some crucial part of the matter. You feel the obligation to do something about your point of view. How do you approach this matter? You try to gather signatures from those fellow students who agree with your opinion on the problem. You go to the dean and talk to him about the low performance of the professor. You go to the professor to apologize for your interference and show your interest in the subject.
  • 78. Test your cultural knowledge The statement "In order to have efficient work relationships, it is often necessary to bypass the hierarchical line" would be agreeable to managers in which country? A) Sweden B) Oman C) Japan D) Venezuela
  • 79. Test your cultural knowledge The statement "In order to have efficient work relationships, it is often necessary to bypass the hierarchical line" would be agreeable to managers in which country? A) Sweden B) Oman C) Japan D) Venezuela
  • 80. Test your cultural knowledge In which country is meaning communicatedmore by clear, direct words than by bodylanguage?A) EnglandB) MexicoC) ChinaD) France
  • 81. Test your cultural knowledge In which country is meaning communicatedmore by clear, direct words than by bodylanguage?A) EnglandB) MexicoC) ChinaD) France
  • 82. Test your cultural knowledge “My company has had an excellent relationship with a supplier from Japan for two years. I have been assigned to replace John who was the suppliers contact with our company. The suppliers representative now says that his boss wants to re-negotiate our contract although it has five years to run. What do you advise me?” A) Your company broke the contract. B) By changing the person whom the Japanese had a trusting relationship, they believe that the contract itself has to be looked at as if it were new. C) The Japanese dont keep their promises. D) The contract is in English and the Japanese do not understand it.
  • 83. Test your cultural knowledge “My company has had an excellent relationship with a supplier from Japan for two years. I have been assigned to replace John who was the suppliers contact with our company. The suppliers representative now says that his boss wants to re-negotiate our contract although it has five years to run. What do you advise me?” A) Your company broke the contract. B) By changing the person whom the Japanese had a trusting relationship, they believe that the contract itself has to be looked at as if it were new. C) The Japanese dont keep their promises. D) The contract is in English and the Japanese do not understand it.
  • 84. Summary….. Take time to understand and appreciate other cultures Cultivate a culture of respect and value human dignity Take time to understand and appreciate your own culture Doing homework is critical to selling your services in a market Recognize the importance of dealing with cultural differences and the possible consequences of taking no action – understand the music behind the words Establishing credibility Respect
  • 85. Thank You
  • 86. Tokyo10Is forbidden to steal hotel towels please. If you are not person to do such thing is please not to read this note
  • 87. Istanbul9To call room service, please open the door and call room service
  • 88. Mexico City 8 Broken English spoken perfectly
  • 89. Belgrade 7To move the elevator cabin, push buttonfor wishing floor. If the cabin should entermore persons, each one should press anumber of wishing floor. Driving is thengoing alphabetically by national order
  • 90. Israeli 6 If you wish breakfast, lift the telephone and our waitress will arrive. This will be enough to bring up your food
  • 91. Athens 5 Visitors are expected to complain at the officebetween the hours of 9 am and 11am daily
  • 92. Acapulco 4 We are pleased to announce thatthe manager has personally passedall the water served here
  • 93. Vienna3 In case of fire, do your utmost to alarm the porter
  • 94. Tokyo2Cools and heats. If you want the condition of cool in your room, please control yourself
  • 95. a city in Japan1You are invited to take advantage of the chambermaid
  • 96. Thank You