Team 4 Chp 4 & 5


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  • As the beginning (different companies/countries have different viewpoints on taking work home with them, where/when work can be done, etc) example makes clear, different countries have different business practices and styles. Even as new technology allows us to reap the benefits of increased connectivity, some countries are having problems adjusting to the changes.Learned – Learned through learning and experienceShared – Society shares culture, it is not individualisticTransgenerational – Culture is cumulative through generationsSymbolic – Culture uses symbols to represent thingsPatterned – Has structure and is integrated, a change in one part will lead to changes in othersAdaptive – Based on human capacity to change or adapt
  • US – FirmAsian – GentleBritish – SoftFrench – Light and quick, not offered to superiorsGerman – Brusk and firmLatin American – ModerateMiddle Eastern – GentleSouth African – Light/soft
  • US – FirmAsian – GentleBritish – SoftFrench – Light and quick, not offered to superiorsGerman – Brusk and firmLatin American – ModerateMiddle Eastern – GentleSouth African – Light/soft
  • Low – Denmark and Great BritainHigh – Germany, Japan, Spain
  • Former communist countries like Czech and Soviet Union are found to be quite individualistic (surprising)Thailand is very high on individualism, low a few years before
  • Example: University Prof in US = Doctor Smith at work; Bob while shopping; just one of the guys while golfingBob has private space that is off limits to classroom students, but his conduct is different based on his public roleUniversity Prof in Germany = Herr Professor Doktor Smith all the time, even his wife might say that in public
  • What kind of group would an achievement culture business send to work with an ascription culture business?When achievement cultures do business in ascription cultures, need to make sure group doing the interaction is older, more experienced and holds a senior position. However, when ascription cultures do business in achievement cultures, need to make sure group is knowledgeable, can produce efficient data and are capable of convincing the achievement group that they are proficient in doing business.
  • Compare US to South American countriesAmericans like to follow a time schedule. Things will be done when the deadline is set. In South American countries, time is a suggestion. Not prompt. Schedules subordinate = ppl plan for there to be interruptions in their day to talk with friends/coworkers
  • MNCs have cultural strategic inclination toward doing business in a particular way. There are four distinct ways that companies will be inclined to doing business.Successful MNCs use a mixture of these techniques.
  • Do all products need to change business tactics to sell their products? What products don’t need to?Products that emit a certain lifestyle (high fashion [Burberry, Louis Vuitton] and Porsche) as well as impulse purchase items (Coca-Cola, candy products) tend to not need a different sells approach when entering another country
  • Bullet 2: so that it can provide assistance w/ local demandsBullet 3: so it can respond to changes in local demands
  • What kind of problems does this create?People with this tendency think they are more knowledgeable and experienced and that their views are more superior than those they are doing business with (especially when dealing with less developed countries). Comes across as rude and arrogant and can disrupt the whole process of doing business abroad.
  • Managers often misinterpret what is happening when they are unfamiliar with local customs. Looking chinese businessman in the eyes = disrespectKorea – must present a present to begin business (not considered bribery)
  • -Individual:people who share cultural similarities can be managed in similar styles/techniques-Customers: helps market products; if target audiences share cultural similarities then the company can market the product to fit the similarities-Partners: (ex from book) techniques can be shared -Organizational Behavior MODification: Russian supervisors trained to administer social rewards (attention/recognition) & positive feedback when employees were engaging in appropriate behavior and taught to give corrective feedback when behavior wasn’t fit -Results: O. B. Mod. produced positive results in the Russian factory
  • -Individual: businesses must understand the differences to manage employees in ways that are conducive to the business; not all techniques work with all employees-Customers: helps market products; if target audiences have cultural differences then the company needs to change their marketing style-Partners: if companies want to do business with international companies, then they need to change/understand the differences to create better partnerships
  • MexicoCanadaJapan
  • 4. United Kingdom5.Sweden
  • Team 4 Chp 4 & 5

    1. 1. The Meanings and Dimensions of Culture and Managing Across Cultures<br />Chapter 4 & 5<br />Dylan Parks,<br />Tara Kern,<br />Ashley Sanders<br />
    2. 2. Culture<br /><ul><li>Culture has a large impact on business</li></ul>Learned<br />Shared<br />Transgenerational<br />Symbolic<br />Patterned<br />Adaptive<br />
    3. 3. Culture cont.<br /><ul><li>Common practices in one culture may not be the same in others
    4. 4. The practice of handshaking is a good example</li></li></ul><li>Different Cultural Values<br /><ul><li>Centralized vs. Decentralized Decision Making
    5. 5. Safety vs. Risk
    6. 6. Individual vs. Group Reward
    7. 7. Informal vs. Formal Procedures
    8. 8. High vs. Low Organizational Loyalty
    9. 9. Cooperation vs. Competition
    10. 10. Short-term vs. Long-term horizons
    11. 11. Stability vs. Innovation</li></li></ul><li>Values<br /><ul><li>Value – Basic conviction people have regarding right and wrong, good and bad, etc
    12. 12. Different cultures have different values
    13. 13. There is a strong relationship between management values and success; more successful managers tend to favor pragmatic, dynamic, achievement orientated values, while less successful managers tend to have more static and passive values
    14. 14. Values are changing over time</li></li></ul><li>Hofstede’s Cultural Dimensions<br /><ul><li>Power Distance
    15. 15. Uncertainty Avoidance
    16. 16. Individualism/Collectivism
    17. 17. Masculinity/Femininity</li></li></ul><li>Power Distance<br /><ul><li>The extent to which less powerful members of institutions and organizations accept that power is distributed unequally
    18. 18. Higher power distance – strict obedience
    19. 19. Organizations in high power distance countries tend to centralized with tall organization structures
    20. 20. Lower power distance organizations tend to be decentralized and have flatter organizational structures</li></li></ul><li>Uncertainty Avoidance<br /><ul><li>The extent to which people feel threatened by ambiguous situations and have created institutions to try and avoid these
    21. 21. Low Uncertainty Avoidance – Less formal rules, more risks taken, more ambitious employees, less structure, more employee responsibility
    22. 22. High Uncertainty Avoidance – Very structured, more formal rules, less risks taken, less ambitious employees</li></li></ul><li>Individualism/Collectivism<br /><ul><li>Individualism - The tendency of people to look after themselves and their immediate family only
    23. 23. Collectivism – The tendency of people to belong to groups and look after each other in exchange for loyalty
    24. 24. Wealthy countries tend to be more individualistic, poorer countries tend to be more collectivistic
    25. 25. Individualistic countries value Protestant work ethic, more individual initiative, promotions based on market value
    26. 26. Collectivistic countries (opposite)… promotions based on seniority</li></li></ul><li>Masculinity/Femininity<br /><ul><li>Masculinity – Situation in which dominant values in society are success, money, and things
    27. 27. Great importance is placed on earnings, recognition, advancement, and challenge
    28. 28. Femininity – Situation in which the dominant values in society are caring for others and the quality of life
    29. 29. Importance is placed on cooperation, a friendly atmosphere, and employment security</li></li></ul><li>Trompenaar’s Dimensions<br /><ul><li>Universalism vs. Particularism
    30. 30. Individualism vs. Communitarianism
    31. 31. Neutral vs. Emotional
    32. 32. Specific vs. Diffuse
    33. 33. Achievement vs. Ascription</li></li></ul><li>Universalism vs. Particularism<br /><ul><li>Universalism – The belief that ideas and practices can be applied everywhere with no modification
    34. 34. Universalism – More emphasis on formal rules than on relationships and trust
    35. 35. Particularism – The belief that circumstances dictate how ideas and practices should be applied
    36. 36. Particularism – More emphasis on trust and relationships than formal rules; relationships affect how business deals are done</li></li></ul><li>Individualism vs. Communitarianism<br /><ul><li>Communitarianism – Refers to people regarding themselves as part of a group
    37. 37. Similar to the Individualism/Collectivism comparison of Hofstede
    38. 38. The two studies found different results; this could possibly be from changing cultural values</li></li></ul><li>Neutral vs. Emotional<br /><ul><li>Neutral Culture – Culture in which emotions should be kept in check and not shown
    39. 39. Emotional Culture – Culture in which emotions are shown freely</li></li></ul><li>Specific vs. Diffuse<br /><ul><li>Specific Culture – Large, shared public space and small private space shared only with close friends/associates
    40. 40. Diffuse culture – Public and private space are similar and both are guarded equally</li></li></ul><li>Achievement vs. Ascription<br />Achievement culture: status based on performance<br />Sales, promotions, experience<br />Ascription culture: status based on who/what person is<br />Age, gender, social connections<br />
    41. 41. Time<br />Perception of time = major cultural difference<br />Sequential <br />one task at a time, strictly abide by deadlines and show preference for following rules<br />Synchronous<br />multitasking, appointments are approximate (likely to change) and schedules are subordinate to relationships<br />
    42. 42. Strategic Predispositions<br />Ethnocentric<br />values and interests of parent co guide strategic decisions<br />Polycentric<br />decisions tailored to suit culture of country MNC is operating from<br />Regiocentric<br />tries to blend own interests w/ those of its subsidiaries on regional basis<br />Geocentric<br />tries to integrate global systems approach to decision making<br />
    43. 43. Globalization Imperative<br />belief one worldwide approach to doing business is the key to both effectiveness and efficiency<br />Study: most MNCs use same business strategy abroad as at home; effective MNCs take step further to address local needs as well<br />
    44. 44. Adjusting Global Strategies for Regional Markets<br />Challenges<br />MNCs must be aware of local market conditions & not assume all markets the same<br />MNCs must know strengths & weaknesses of its subsidiaries<br />MNCs must give subsidiaries more independence<br />
    45. 45. Parochialism<br />Tendency to view the world through one’s own eyes and perspectives<br />Problems?<br />
    46. 46. Simplification<br />Process of exhibiting the same orientation toward different cultural groups<br />Reflects one’s basic culture<br />Due to misunderstanding/not knowing the culture<br />
    47. 47. Similarities <br />How is it useful for businesses to know about cultural similarities?<br />Think about: individual employees; customers; business partners<br />
    48. 48. Differences<br />Why is it important for businesses to know about cultural differences?<br />Think about: individual employees; customers; business partners<br />
    49. 49. Name that Country<br />Labor laws in this country requires that employees receive full pay 365 days a year.<br />Some parts of this country have legislated pay equity (comparable worth).<br />In this country, compensation levels are determined by using age, length of service, and educational background (rather than skill, ability, and performance).<br />
    50. 50. Name that Country (cont.)<br />In this country, employees are allowed up to 40 weeks of maternity leave and employers must provide a government-mandated amount of pay for 18 of those weeks.<br />In about 87% of large companies in this country, the head of human resources is on the board of directors.<br />