Chap006_cultural Dimensions From Hodgets and Luthans

8/12/2019 Chap006_cultural Dimensions From Hodgets and Luthans

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McGraw-Hill/Irwin 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.


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Part Two:

The Role of Culture

I nternational Management,

5th ed.


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InternationalManagement,

5th ed.

Hodgetts and Luthans

Chapter Six

Managing Across Cultures


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EXAMINE the impact of globalization and

national responsiveness on international

strategic management

DISCUSS cross-cultural differences andsimilarities

REVIEW cultural differences in select

countries and regions, and note some of theimportant strategic guidelines for doing

business in each

Objectives of the Chapter


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Strategy for Managing

across Cultures

MNC strategies must address the culturalsimilarities and differences in their varied markets

Globalization

Production and distribution of products and services of

a homogeneous type and quality on a worldwide basis National responsiveness

Need to understand the different consumer tastes insegmented regional markets and respond to different

national standards and regulations imposed byautonomous governments and agencies

Need to adapt tools and techniques for managing thelocal workforce


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Figure 6-1

Globalization vs. National Responsiveness

National responsiveness (differentiation)Low High

High

LowGlob

alization(integration)

Nationalresponsiveness

(Multi-domestic

strategy)

Globalization

strategy

Mixed strategy

(International

strategy)

Mixed strategy

(Transnational

strategy)


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Managing across Cultures (cont.)

Meeting the Challenge Globalization imperative

Belief that one worldwide approach to doing business is thekey to both efficiency and effectiveness

Factors that help develop strategies for different cultures

Diversity of worldwide industry standards

Continual demand by local customers for differentiated products

Importance of being an insider

Difficulty of managing global organizations

Need to allow subsidiaries to use their own abilities and talents

and not be restrained by headquarters Challenges of adjusting global strategies to regional markets

MNC must stay abreast of local market conditions

MNC must know the strengths and weaknesses of its subsidiaries

MNC must give subsidiary autonomy to address local demands


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Cross-Cultural Differences and

Similarities (cont.)

Similarities across Cultures Some similarities across cultures have been

uncovered by researchers

Russian and U.S. managers both:

Carry out traditional management, communication, humanresources, and networking activities

Use organizational behavior modification successfully

Korean and U.S. employees both:

Are more committed to the organization when they occupyhigher level positions, have more tenure in their position, andare older

Are more committed to the organization when the structure ismore employee-focused and the organizational culture is

perceived in a more positive light


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Cross-Cultural Differences and

Similarities (cont.)

Many Differences across Cultures MNCs have discovered that they must understand the

cultures where they plan to do business and modify

their approaches appropriately

Foreign subsidiaries differ in the standards used to: evaluate personnel

provide wages and benefits

Based on Hofstedes work, can link cultural clusters to

compensation strategies

Useful to develop a contingency model to analyze HRMpractices on a country-by-country basis

Conventional wisdom and common assumptions about HRM

practices in certain countries often are incorrect


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Table 6-2

Cultural ClustersPower Uncertainty

Distance Individualism Masculinity AvoidancePacific Rim

Hong Kong, Malaysia,

Philippines, Singapore + - + -

Japan + - + +

South Korea, Taiwan + - - +

EU and United States

France, Spain + + - +

Italy, Belgium + + + +

Portugal + - - +Greece + - + +

Denmark, Holland - + + -

Germany - + + +

Great Britain, Ireland,

United States - + + -


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Cultural Differences in Selected

Countries and Regions (cont.)

Doing Business in China (cont.) When dealing with the Chinese, one must:

Be a good listener

Realize that China is a collective society

Understand that the Chinese are less animated than Westerners Understand that the Chinese place values and principles above

money and expediency

Allow Chinese host to signal the beginning of a meeting

Understand that Chinese are slow to decide on a course of

action, but stick to the decision once made

Understand that reciprocity is important in negotiations

Not display emotions during negotiations

Rely on a long-term perspective to view negotiations

l l iff i l d


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Doing Business in Russia When dealing with the Russians, one must:

Build personal relationships with partners

Use local consultants

Consider business ethics Be patient

Stress exclusivity

Deal with just one firm at a time

Keep financial information personal

Research the company

Stress mutual gain

Clarify terminology

Be careful about compromising or settling things quickly

C l l iff i S l d


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Doing Business in India Growing number of MNCs have been attracted to India

Government has helped attract foreign investment bylifting bureaucratic restrictions

Most Indian businesspeople speak English Indians are tolerant of outsiders

When dealing with Indians, one must:

Be on time for meetings

Avoid asking personal questions Use formal titles when addressing others

Avoid public displays of affection

Use the namastegesture to greet people

C l l Diff i S l d


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Doing Business in France French culture is markedly different from U.S. culture

Social class and status are very important in France

In contrast to Americans, the French are:

More sardonic More tolerant of different points of view

More inclined to determine a persons trustworthiness on thebasis of personal characteristics rather than accomplishments

Less motivated by competition

More inclined to have highly centralized organizations withrigid structures

Less moved to industriousness and more concerned with thequality of life

C l l Diff i S l d


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McGraw Hill/Irwin 2003 The McGraw Hill Companies Inc All Rights Reserved



Doing Business in Arab Countries Arab cultures are distinctly different from Anglo

cultures

Arabs have a different understanding of time

Less commitment to punctuality

Arabs are fatalistic

Destiny is in the hands of God, not under the control of anindividual

Status in Arabian society determined by family, and notnecessarily by personal achievements

Arabs often act on the basis of emotion rather than logic Arabs rely on elaborate and ritualized greetings

Arabs avoid displays of superiority

Arabs dont take credit for joint efforts

Arabs rely on administrative channels to get most work done

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Chap006_cultural Dimensions From Hodgets and Luthans