Managing across cultures mba


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Managing across cultures mba

  2. 2. DEFINITION “Culture is a set of beliefs and values about what is desirable and undesirable in a community of people, and a set of formal or informal practices to support the values” Culture is a subtle but pervasive force.
  3. 3. Source: “International Management – Culture, Strategy, and Beliefs” – Hodgetts and Luthans: 2003, pg. 109.
  4. 4. Redrawing the world map along cultural lines
  5. 5. Cultural Differences
  6. 6. Importance of cultural sensitivity for global business • To communicate effecively with customers, suppliers, foreign employees, business partners etc. • Conduct negotiations • Predict trends in social behaviour likely to affect foreign operations • Predict Impact of cultural differences on advertisements and promotion
  7. 7. Importance of cultural sensitivity for global business • Understand ethical standards and social responsibility • Conduct efficient meetings • Understand how people interpret market research and other information
  8. 8. Hofstede Studies • Studied impact of national culture on organisational culture • Covered 70 countries and 3 regions, East Africa, West Africa and Saudi Arabia
  9. 9. DIMENSIONS OF STUDY Power Distance Extent to which less powerful members of organization accept that power is distributed unequally. High power distance – Mexico, S.Korea, India Low Power Distance-Israel, Austria
  10. 10. Uncertainty Avoidance The extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. High Uncertainty Avoidance Nations (Germany, Spain, Japan) Low Uncertainty Avoidance Culture (Sweden, US, UK):
  11. 11. Individualism (Sweden, US, UK): Tendency of people to look for themselves and their immediate families only. High Individualism (USA, Canada, Denmark, Sweden) Low Individualism (Pakistan, Latin American countries)
  12. 12. Masculinity A situation in which the dominant values in society are success, money and things. High masculinity index (Japan, Germany, Spain) Femininity A situation in which the dominant values in society are caring for others and quality of life. Low masculinity index (Norway)
  13. 13. HALL’S THEORY OF CULTURAL CONTEXT High context culture (Arabic, Chinese, Japanese and other Asian countries) • Long lasting relationships, personal involvement • Loyalty of subordinates • Agreements are spoken • Distinction between outsiders and insiders • Cultural patterns too slow to change
  15. 15. Low context culture (US, Sweden, Britain) • Relationships of short duration • Messages explicit • Personal responsibility difficult to be pinned down • Agreements written • Insiders and outsiders distinguished • Cultural patterns faster to change
  16. 16. Contrasting High and Low-Context Cultures
  17. 17. Interpersonal distance zones for business conversations
  18. 18. • How we accord status • How we manage time: Sequential vs Synchronic • How we relate to nature: inner-directed vs outer directed
  19. 19. EXPATRIATE Anyone living and/or working outside their home country.
  20. 20. The foreign assignment cycle Home country Foreign country experience experience 1.Selecting and training “unrealistic expectation 4. Returning home and adjusting “recovery shock” 2. Arrival and adjustment “culture shock” 3. Settling in and acculturating
  21. 21. Culture shock Anxiety and doubt caused by an overload of new expectations and social cues Work related problems were found to be major problems for repatriated Finnish, Japanese, and American employees
  22. 22. Avoiding culture shock Cross-cultural training Support during foreign assignment Avoiding re-entry shock
  23. 23. Expatriate Success Factors  Willingness and motivation to go abroad  Technical ability  Adaptability  Good interpersonal skills  Good communication ability  Supportive family
  24. 24. BON VOYAGE!
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