Cross-Cultural Management (CCM) Definition: CCM is an approach for analyzing, understanding, and managing the behavior of people from different cultures in the workplace. Adler, Nancy J. International Dimensions of Organizational Behavior, 4 th Ed.: Canada: South-Western, 2002.
Building Blocks and Skills
- Active Listening - Employee Requests - Drama Triangle
Building Blocks and Skills- continued
Cultural Diversity Exercise
Step 1: Identify your Home Culture
Step 3: You will be assigned a Foreign Culture
Step 4: Note observations of the Foreign Culture
Step 5: Get into groups, share insights, arrive at
consensus of Foreign Culture
Step 2: Note observations of your Home Culture
Step 6: Each group will report and discuss similarities
and differences between Foreign Cultures
Reims Management School International Management Program “ Cross-cultural Communications and Human Relations Training Model ”
Effective Communications Pie What is said How it is said Nonverbal Communication
Dangers of Cross-cultural Communications
Body Motion (gestures)
Personal Physical Characteristics
Use of Space
Role Play Exercise
A Printing Press Operation
Listen for Meaning
Feel for Feelings
Look for Non-verbal Cues
View from Sender’s Perspective
Other-directed rather than self-projecting.
Non-defensive rather than self-protecting.
Imagines role, perspectives, and experiences of the other, rather than assuming same as one’s own.
Listens as receiver, not as a critic, and desires to understand the other person rather than getting something from the other person.
Doing Global Business Needed today for doing business, cultural sensitivity and relationship skills.
In France, relationships come first, then the deal.
In Germany, the deal comes first, then relationships.
In India, relationships come first, then the deal.
In Poland, relationships come first, then the deal.
In Hungary, relationships come first, then the deal.
In Korea, relationships come first, then the deal.
In China, relationships come first, then the deal.
In Taiwan, relationships come first, then the deal.
In Thailand, relationships come first, then the deal.
Cultural Values Cycle Culture Behavior Attitude Values
Levels of Culture
Level 1: Universal or Global Culture, e.g. Life and Death
Level 4: Business Culture, e.g., Profitability
Level 6: Personal Culture, e.g., Loyalty and Dedication
Level 2: Societal Culture, e.g., Private Property Rights
Level 3: National Culture, e.g., Individualism
Level 5: Corporate Culture, e.g., Quality Service
Your Tree of Values
Attitude and skills (trunk)
Core values (roots)
Cultures are different because of:
- Activity: Doing or being - Time: Past, present, or future - Space: Public or private - Personal relationships: Individualism or collectivism - People’s relationship to the world - How people see themselves
Examples of differences among cultures:
Saying Culture Meaning Ayorama: Inuit-Canada Subjugation “ It can’t be helped” En Shah Allah: Moslem-Arab Harmony “ If God is willing” with nature Can Do: American Dominance “ I will do it”
Etiquette and Protocol
Japanese seating arrangement
Japan in the China market
Japan Seating Order - dinner Door Host Hostess 1 2 3 4 5 6
Start of relationship
Promotion of company/country
Compensation for mistake
Another form of payment
Deep-seated Japanese Values
Four major “fears” of the Japanese
> Jishin > Oyaji
Yarikata (Right Form)
Amae no kozo (Mother-child dependency)
> Kaji > Kaminari
Deference to Authority
Japan in the China Market
Dobun doshu (same culture, same race)
Tung zhuang imeng (Sleeping in the same bed with
Japanese vs. Americans as partners
A seething volcano
The Organizational Iceberg
A Framework for Analyzing And Understanding Work Behavior
Conflict and Negotiations
Personality and Attitude
Traits and Abilities
Perception and Attribution
Learning and Reinforcement
Career Planning and
ORGANIZATIONAL BEHAVIOR GOALS
Performance, e.g., Productivity
Performance, e.g., Professional
and Personal Development
Participant Satisfaction, e.g.,
Job Satisfaction and Morale
Employee Attachment and
Organizational Design and
Hofstede’s Work Behavior Factors
Factors that explain differences
- Individualism and Collectivism - Power Distance - Career Success and Quality of Life - Uncertainty Avoidance
Behavior varies across cultures
France based on Individualism – primary commitment to oneself. Self-identity.
India based on Collectivism – primary commitment to family. National identity.
Individualism vs. Collectivism
India has high power distance - titles, status, and formality important.
Germany has low power distance - titles, status, and formality not as important as treating each person as an individual.
Power Distance (Relationship between Boss and Employee)
Germany has high need for structure and security - value authority, procedures, and chain of command.
India has low need for structure and security – low key, trusting, and value multiculturalism.
Uncertainty Avoidance (Need for Structure and Security)
Both U.S. and Korea focus upon Career Success as life goal - emphasizes work, material things, and attention to profits.
Contrast with Taiwan that focuses upon Quality of Life as life goal - emphasizes relationships among people, concern for others, and the overall quality of living.
Differences in Career Life Goal
Hofstede’s Work Behavior Factors Country Ind./Coll Power Distance Uncertain. Avoidance Career S/ Qual. Life China C large strong CS France I large strong QL Poland C large strong CS India C large weak CS Germany I small strong CS Hungary C large strong CS Taiwan C large strong QL Thailand C large strong QL
Inability to manage target business…….25%
Clash of management styles/ego……….42%
Inability to implement change in new organization……………………………… 49%
Synergies were overestimated………….53%
Reasons for Mergers & Alliances Failures
Post-Merger Integration Process
Develop plan for organizational change.
Design one vision and one set of core values.
Lead and educate the leaders and managers.
Create atmosphere of openness and transparency.
Communicate, communicate, and communicate.
Case example of Japanese company in the Philippines
Case Study of Integrating Cultures
Japanese company comes to Philippines and
establishes its business here.
Top management mostly Japanese and lower
ranks mostly Filipinos.
Gradually, Filipinos are hired for management
Lots of problems during the first several years,
mostly culture clashes, leading to mediocre financial
Problem solved through cross-cultural understanding.
What Filipino Employees Would Like to See
An opportunity to take over positions held
Equal treatment with Japanese.
More leeway in spending time with family.
What Japanese Employees Would Like to See
Keep time; avoid time-wasting activities.
Proactive thinking: volunteer proposals for
More concern for group interest than
Corporate perspective instead of rank and
file mentality; work as an organization.
Managers and supervisors exercising their
Always create an atmosphere of transparency.
Share vital information.
Accept each other’s culture positively and learn from it.
Avoid descriptions such as “In Japan, we do this…”, “In the Philippines, we do this…”
Treat each other as partners toward company progress and success.
Be open to changes.
Happy result: Morale improved, productivity increased, and company has won several awards for their achievements the past five years.
Influence of company vs. national culture
Ethnocentrism and stereotyping
Work Behavior Issues
Reims Management School International Management Program “ Multicultural Teams ”
Desert Survival Exercise
Comparison of outcomes
Multicultural Teams ( Actual Productivity = ( ) Potential Productivity - ( ) Losses due to Faulty Process or )
Advantages and Disadvantages of Diversity Advantages Disadvantages Increased Creativity Increased Understanding of Others Better decisions More effective teams Lack of Cohesion Inability for Consensus Less Efficient Less Effective Less Productive
Stages of Team Development Forming Storming Norming Performing Adjourning Stages Mature Immature Failure Failure Failure Reference: Hellriegel & Slocum, Organizational Behavior, 10 th edition, 2004, Thomson Learning.
Reims Management School International Management Program “ 21 st Century Leadership Model”
Philosophy about Leadership Theory X Leader Theory Y Leader
Many employees dislike work and will try to avoid it if possible.
Many employees want and need me to provide direction.
I am responsible for getting my employees to do as much work as possible.
I can count on my employees to be self-directed and work toward the company’s objectives.
My employees are eager to take on responsibilities at work.
Most employees like to work and achieve something.
Bases of Power
Traditional Leadership Models
Trait Model of Leadership
Intelligence: higher than subordinates.
Maturity and breadth: emotionally mature and
broad range of interests.
Achievement drive: results oriented.
Honesty: has integrity and trustworthy.
Behavioral Model of Leadership
Consideration: one of the main dimensions that describe relationships between the leader and subordinates characterized by mutual trust, two-way communication, respect for employees’ ideas, and empathy for their feelings.
Initiating Structure: the other main dimension where leaders concern themselves with accomplishing tasks by setting performance goals, giving directions, and expecting them to be done.
Both are not mutual exclusive and a person could be high on both dimensions….the effective leader.
Micro-managing Aligning with broad vision and goal-setting and strategy Being a manager Being a leader Being a boss Being a coach and facilitator Controlling people Empowering people A New Model for 21st Century Leadership Directing with rules Guiding with corporate culture and regulations and shared values Centralizing authority Distributing leadership
Establishing “position Building “relationship power” power” and hierarchy and network of teams Demanding compliance Gaining commitment Focusing on numbers Focusing on quality service and tasks and the customer Stressing independence Fostering interdependence A New Model - continued Encouraging “old boy” Respecting, honoring, and networks encouraging cultural diversity Confronting and Collaborating and unifying combative
Changing by necessity Changing through continuous and crisis learning and innovating Being internally Being globally competitive competitive Having a narrow focus; Having a broader focus; “ Me and my organi- “My community, my society, zation” my world” A New Model - continued
One Task: Strategy and Posturing
State of Industry
Strategy Pioneering a Business Expanding a Business, i.e. M&A Segmenting a Market Revolutionizing a Business
Three Fundamental Strategic Questions Who are we? Who do we want to be? How do we get there? Overall strategy, goals, business plans, operational plans, and budget resources Reaffirmed or revised vision, mission, core values Current vision, mission, core values
Leader’s Strategic Focus Environmental Threats & Opportunities KEY ISSUES Present Who are we? Desired Who do we want to be? Strategic Focus Client Needs & Preferences Competitive Advantages Mission, Values, Goals Internal Strengths & Weaknesses Leadership Priorities VISION Operational Plans Strategic Plan
Be the market leader in solar energy industry by designing and producing excellent products and services. Goal A: Leader in Health Care Energy Become a recognized global company by placing on the Fortune Global 500 ranking. Goal B: Leader in Water Resources Goal C: Leader in Energy for Recreation Goal D: Leader in Energy for Education Organizational Culture and Core Values Example of Company’s Strategic Focus 2007 2012 and beyond Strategic Goals Mission Vision
People don’t want to be managed, they want to be led.
World leader, yes; sports leader, yes; world manager, no; sports manager, no.
You can lead a horse to water, but you can’t make it drink.
You, as leaders of your organization, can make a difference. Just do it!
Reims Management School International Management Program “ Ethical Decision Making”
Situations Involving Ethical Decision Making
Sales Representative in the Middle East
Hazardous Materials in West Africa
The Southeast Asian Advertising Campaign
Philosophies for Ethical Decision Making
- Focus on consequences - Greatest good for greatest number - Focus on individual rights
Theories of Moral Rights
- Free consent, privacy, free speech, freedom of conscience, due process
Philosophies for Ethical Decision Making- continued