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International Business and Culture 4
- 1. Managing across cultures and contexts MN20598 René Ceipek SESSION 4
- 2. Wrap up • We have extensively discussed the role of national culture in IB • Talked a lot about how Geert Hofstede got knighted and developed very useful dimensions • Also looked at alternative approaches (GLOBE) • And talked about how managers and sales persons can do wrong if they do not adapt their practices to new cultural environment • We made more Tweets, kept our Facebook group updated, made our second quiz (have you checked the results?) 26/02/2018 René Ceipek - University of Bath 2
- 3. Quiz results last week Need to review the following question: 26/02/2018 René Ceipek - University of Bath 3
- 4. Questions Do you have any question regarding last week? Do you have any questions regarding the content discussed last week? Let’s check our Twitter-wall https://twitter.com/hashtag/culturebath?src=hash 26/02/2018 René Ceipek - University of Bath 4
- 5. Where are we? 26/02/2018 René Ceipek - University of Bath 5
- 6. Content session 4 1. Introduction 2. The Individual – The Expat and the International Manager 3. Multi-cultural teams – Why and how? 4. Communications and negotiations across cultural boarders 5. How to manage and strategize in the global organization? BREAK 6. Group-work on two TED talks 26/02/2018 René Ceipek - University of Bath 6
- 7. National Culture in IB • Culture is of particular importance in the international business management context. Why? • Expatriates (Expats), employees, teams in MNEs 26/02/2018 7René Ceipek - University of Bath USA Europ e Asia Africa USA USA USA USA Asia Asia Asia Asia Intern al Exter nal
- 8. Managing across cultures • Last week we have learned about how we can assess and compare national culture, mainly with the help of Geert Hofstede’s six dimensions • This week we will look at how at least three different levels within an international organization are affected by the identified differences: • Individuals • Teams • Communications and Negotiations • Organizations 26/02/2018 René Ceipek - University of Bath 8 Individ ual Team Organiz ation Comm & Neg
- 9. International Managers in General • “... new type of cosmopolitan, multilingual, multifaceted executive who is operational across borders (somewhat like James Bond).” • “... living out of airplanes, and recognizable by their jetlag.” • “... questionable whether English-speaking, Hilton-based executives, with little local interactions, event warrant an international tag.” • However, in general all global and domestic manager and company representatives work with different cultures • Which limits intercultural skills not only to the global expat26/02/2018 René Ceipek - University of Bath 9 Individ ual Team Organiz ation Comm & Neg
- 10. The Expat • “... the missionaries sent out by companies.” • They manage subsidiaries or projects in international countries • For many the most memorable time of their live • Very often career tracks in firms demand you to work in an international subsidiary for a certain time to get promoted • However, very often such expat missions end in failure and personal disappointment • Constantly faced by unexpected challenges (private and work life) • The techniques applied at home don’t work abroad (see Suisse and NYC managers in HBR articles)26/02/2018 René Ceipek - University of Bath 10 Individ ual Team Organiz ation Comm & Neg
- 11. The Expat • Cultural adaptation as key to survive! • The U-curve dependent on: • motivation • prior experience • home/host country distance • degree of uncertainty in job 26/02/2018 René Ceipek - University of Bath 11 Individ ual Team Organiz ation Comm & Neg elation and optimism honeymoon gradual adjustment happily ever after frustration and confusion the morning after culture shock
- 12. The Expat skillset • How to manage differences abroad: • Interpersonal skills (e.g. building relationships) • Linguistic ability (e.g. interpreting language, but also other aspects) • Motivation to live abroad • Being tolerant and cope with uncertainty • Patience and respect • Cultural empathy • Strong self (e.g. healthy narcissism) • Sense of humor (to cope with complexity and build relationships) 26/02/2018 René Ceipek - University of Bath 12 Individ ual Team Organiz ation Comm & Neg
- 13. The home-based international manager • International managers do not only work abroad, but many of them are found also at home these days • Manage international projects • International customers • Global supply chains • etc. • Although at home, they are constantly exposed to an international work environment 26/02/2018 René Ceipek - University of Bath 13 Individ ual Team Organiz ation Comm & Neg
- 14. The home-based international manager • The skillset of the home-based international manager: • Understand interdependencies (e.g. complex HQ-subsidiary relationships internationally) • Handling different cultures simultaneously (e.g. general awareness of cultural differences) • Recognize cultural differences at home (e.g. expats in home country) • Willing to share power with subsidiary countries • Demonstrate cognitive ability to cope with complexity • Learn and unlearn fast • Having a Global Mindset 26/02/2018 René Ceipek - University of Bath 14 Individ ual Team Organiz ation Comm & Neg
- 15. Developing the skill set • How do international managers and expats develop their skill set? • Individual background • Family (e.g. expat parents) • Nationality (e.g. Switzerland – 3 languages) • Education (e.g. Erasmus, exchange, international schools etc.) • Work experience • Mobility! (but barriers: Family etc.) • Work in mixed nationality teams • etc. • Becoming a cultural chameleon, without losing ones own identity – EASY?! 26/02/2018 René Ceipek - University of Bath 15 Individ ual Team Organiz ation Comm & Neg
- 16. The Multicultural Team • Teams have always been important in problem solving in in e.g. Japanese culture • Less so in individualist cultures (USA) and overly present in more communist cultures (Russia) • However, the team is a common workplace feature globally in 21st century • Project teams, task forces, steering committees, boards etc. • Given strong globalization in business, teams become more multicultural • They can be the glue for a MNE, as culture is exchanged and understanding created26/02/2018 René Ceipek - University of Bath 16 Individ ual Team Organiz ation Comm & Neg
- 17. Types of Multicultural Teams Transnational teams have different forms: • Business/product development team working on a global product for multiple countries • Corporate headquarter teams with locals as well as expats • Regional headquarter teams with locals as well as expats • Functional teams working in the same function (e.g. R&D, marketing etc.) • International joint ventures, with companies from different nationalities 26/02/2018 René Ceipek - University of Bath 17 Individ ual Team Organiz ation Comm & Neg
- 18. Managing Multicultural Team • Task strategies • Create a sense of purpose • Structure the task • Assigning roles and responsibilities • Reaching decisions • Process strategies • Team building • Choosing how to communicate • Eliciting participation • Resolving conflict • Evaluating performance 26/02/2018 René Ceipek - University of Bath 18 Individ ual Team Organiz ation Comm & Neg Power distance Uncertainty Collectivism Masculinity Task vs. relationship Long term orientation Indulgence
- 19. Virtual teams • Modern digital communication technology increases the presence of transnational teams • It facilitates exchange among peoples from different culture • Telecommunication hardware • Software • Internet • Web 2.0 (Platforms, Social Media, Forums etc.) • Virtual reality (https://www.youtube.com/watch?v=KNMahhoytzU) 26/02/2018 René Ceipek - University of Bath 19 Individ ual Team Organiz ation Comm & Neg
- 20. Communications and Negotiations • Managing cross-cultural teams and also cross-cultural sales requires a lot of negotiations • These negotiations are usually much more complex and difficult than negotiations within the national boundaries • For instance, the way you build and use trust in negotiations mainly differs across national cultures (Elahee et al., 2002) • Also, language barriers make things harder • Perception of negotiation environment and the negotiation process • Response to potential conflicts (Tse et al, 1994) 26/02/2018 René Ceipek - University of Bath 20 Individ ual Team Organiz ation Comm & Neg
- 21. The Global Organization • What is the right strategy to manage a MNE with regards to big cultural differences? • How do you respond to the complexities of operating across cultures in terms of managing the organization, customers, and products? • Two important areas to consider: • The HQ-subsidiary relation • The general strategic approach 26/02/2018 René Ceipek - University of Bath 21 Individ ual Team Organiz ation Comm & Neg
- 22. The Global Organization The HQ-subsidiary relation • The ethnocentric approach • The HQ decides everything • The polycentric approach • The HQ decides what, the local subsidiary decides how • The regiocentric approach • Regional HQs are buffers between overall HQ and particular regional subsidiaries • The geocentric approach • All the what and how is developed together with HQ and subsidiaries 26/02/2018 René Ceipek - University of Bath 22 Individ ual Team Organiz ation Comm & Neg
- 23. The Global Organization The HQ-subsidiary relation and the challenges of responsiveness • MNEs constantly face challenges related to local responsiveness versus global integration • local responsiveness requires good knowledge of local area, and tailored products to very specific local needs • global integration is about developing products that are standardized across all international markets • The overall level of responsiveness also influences the HQ- subsidiary relation 26/02/2018 René Ceipek - University of Bath 23 Individ ual Team Organiz ation Comm & Neg https://www.thesun.co .uk/news/3203260/hu man-waste-coca-cola- cans-northern-ireland- factory-drinks- recalled/ https://internationalmar ketingmix.wordpress.c om/2014/05/26/mcdon alds-and-cultural- adaptation/
- 24. The Global Organization • The general strategic approach when managing cross- cultural • You can respond in the following ways to cultural cross- national differences: • Ignore • Minimize • Utilize 26/02/2018 René Ceipek - University of Bath 24 Individ ual Team Organiz ation Comm & Neg
- 25. The Global Organization • The general strategic approach when managing cross-cultural IGNORE • Culture is irrelevant • Ethnocentric HQ-subsidiary relation • Benefits: Standardization, global integration • Performance criteria: Efficiency • Communication: Top-down • Major challenge: Gaining acceptance • Major concern: Inflexibility, missed opportunities 26/02/2018 René Ceipek - University of Bath 25 Individ ual Team Organiz ation Comm & Neg
- 26. The Global Organization • The general strategic approach when managing cross-cultural MINIMIZE • Culture is a problem/threat • Polycentric/Regiocentric HQ-subsidiary relation • Benefits: Localization, Responsiveness • Performance criteria: Adaptability • Communication: Top-down, bottom-up reporting • Major challenge: Achieving coherence • Major concern: Fragmentation, loss of synergy through duplication 26/02/2018 René Ceipek - University of Bath 26 Individ ual Team Organiz ation Comm & Neg
- 27. The Global Organization • The general strategic approach when managing cross-cultural UTILIZE • Culture is an opportunity for competitive advantage • Geocentric HQ-subsidiary relation • Benefits: Innovation and learning • Performance criteria: Synergy • Communication: All channels • Major challenge: Leveraging differences • Major concern: Confusion, friction 26/02/2018 René Ceipek - University of Bath 27 Individ ual Team Organiz ation Comm & Neg
- 28. The Global Organization • Strategic alliances and joint ventures as major vehicle to overcome challenges • Minimizing risk for entrance • Directly gain access to cultural knowledge • But, also danger of revealing crucial business insights etc. 26/02/2018 René Ceipek - University of Bath 28 Individ ual Team Organiz ation Comm & Neg
- 29. Break • 10 minutes 26/02/2018 René Ceipek - University of Bath 29
- 30. Group case work • Watch the following TED talks, delivering crucial insights into how people can manage cross-culturally more successful: • Pellegrino Riccardi: https://www.youtube.com/watch?v=YMyofREc5Jk • Julia Middleton: https://www.youtube.com/watch?v=izeiRjUMau4 26/02/2018 René Ceipek - University of Bath 30
- 31. Group case work 1. Get together in groups of 5-6 people 2. Briefly repeat the contents of the two TED talks in your groups (5min). Also listen to parts again if needed. 3. With reference to the words shown on the wall, prepare questions that bring together the content of the TED talks and the content we have covered during this lecture. 4. Get together with another group, and ask questions! Take note of the answers of the other group 5. Once finished, be prepared to share some of the most helpful questions/answers in the plenum 26/02/2018 René Ceipek - University of Bath 31
- 32. Group case work 26/02/2018 René Ceipek - University of Bath 32 Expats Internatio nal Teams Negotiati ons Global Strategy Local Responsi venessInternatio nal Managers IMPORTANT: One Team-Member tweet your key learning
- 33. Quizizz • Our third in-class live quiz is about to start 1. Enter the following URL on one of your devices (Laptop, Tablet, Smartphone etc.): https://quizizz.com/join/ 2. Enter the shown 6-digit code on the landing page 3. Enter your name 4. Wait until the game is started 5. The quicker you answer questions, the more points you will receive 26/02/2018 René Ceipek - University of Bath 33
- 34. End of today’s session Thank you for your attention! 26/02/2018 René Ceipek - University of Bath 34
- 35. References Schneider, S., Barsoux, J.L. (2003). Managing across cultures. Pearson Eductation. Mead, R., Andrews, T. (2009). International Management: Culture and Beyond (4th ed.). Wiley. Tse, D., Francis, J., Walls, J. (1994). Cultural Differences in Conducting Intra- and Inter-Cultural Negotiations: A Sino- Canadian Comparison. Journal of International Business Studies, 25(3), pp. 537-555. Elahee, M, Kirby, S., Ercan, N. (2002). National Culture, Trust, and Perceptions About Ethical Behavior in Intra- and Cross- Cultural Negotiations: An Analysis of NAFTA Countries. Thunderbird International Business Review, 44(6), pp. 799-818. 26/02/2018 René Ceipek - University of Bath 35
Editor's Notes
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