Leadership and Management in A Global Environment… · US, UK, Australia mostly democratic countries, individual initiative, and achievement are highly valued •LOW INDIVIDUALISM

Product Lifecycle Management Center of Excellence

Magdalena Lech

Jim Tanoos

Dr. CynthiaTomovicOrganizational Leadership and Supervision

Module 3: Culture and Its Implications to

the Global Management

1

Leadership and Management in A Global

Environment


Culture and business – module content

Unit 1 – Culture and business

Culture – its impact on business

Culture – variables affecting the culture

Unit 2 - Cultural Value Dimensions

Project GLOBE Cultural Dimensions 1991-1998

GLOBE’s 62 Societal Cultures and 10 Societal Clusters

Hofstede’s Value Dimensions

Critical Operation Value Differences

Individual Identification vs. Group Identification

Unit 3 - Cultural Profiles and Management Styles

The Internet and Its Effect on Culture

Developing Cultural Profiles

Culture and Management Styles

2


Culture and business

Unit 1

3


4



PRE-ACTIVITY

What do you think

happened here?

5


Religious police in Saudi Arabia arrested American

businesswoman for sitting at Starbucks with a man

Article: http://www.timesonline.co.uk/tol/news/world/middle_east/article3321637.ece

Image source: http://pixdaus.com/pics/CV5PN29Saxht.jpg


STATISTICS AND FACTS…

6


40% of expatriate managers leave

their assignments abroad early

50% of the ones who stay are not

effective

$2 billion are lost by US companies annually because

of failed negotiation


7


Image source: http://pixdaus.com/single.php?id=31555



(click image to play a clip)

Video clip: http://www.youtube.com/watch?v=28ZSMAtzBSY

http://www.youtube.com/watch?v=28ZSMAtzBSY


9

Members of a society have unique cultures, which affect their

business practices.


Indian Menu American Menu



SWITCH TO THE CULTURAL SAVVY MODE…



1. How can a manager develop an understanding of the specific nature of a given culture?

2. How can a teams containing members from different cultures be managed in a productive manner?

GENERALIZATIONS

STEREOTYPING

UNDERSTANDING CULTURES

(SUBCULTURES)



VARIABLES THAT DETERMINE THE CULTURE OF A COUNTRY

Kinship – adopted by a society which guides family relationships

Education – formal or informal education of workers affects workplace expectations

Economy – means of production and distribution in a society influences all aspects of the resource allocation

Politics – system of government imposes varying constraints on an organization


13


VARIABLES THAT DETERMINE THE CULTURE OF A COUNTRY

Religion – spiritual beliefs of a society are so powerful that they overpower all other cultural aspects

Associations – the formal and informal groups that make up a society

Health – system of health care affects employee productivity

Recreation – the use, attitude, and choice of how to use leisure time

Language – both spoken and unspoken, is one of the defining characteristics of culture.


14

POST-ACTIVITY

What do you think

happened here?

Do you think American and

Arab cultures are different?

Why?







Cultural Value Dimensions

Unit 2

15


16



17


PRE-ACTIVITY

What do you think happened

here?

Did you notice any cultural

differences here?







Being global is not just about where you do business.

Robert J. House, The Wharton School

GLOBE Principal Investigator

Project GLOBE Cultural Dimensions 1991-1998 (62 Societal Cultures and 10 Societal Clusters)

Hofstede’s Value Dimensions

Critical Operation Value Differences



Cultural Value Dimensions – Project GLOBE

GLOBE Cultural Clusters

Image source: House, R.J., Hanges, P.J., Javidan, M., Dorfman, P., & Gupta, V. (Eds.). (2004). Culture, Leadership, and Organizations: The GLOBE

Study of 62 Societies. Sage Publications, Inc


Cultural Value Dimensions – Project GLOBE

VALUE DIMENSIONS

Assertiveness

Future Orientation

Performance Orientation

Humane Orientation

In-group Collectivism Gender

Egalitarianism

Institutional Collectivism

Power Distance

Uncertainty Avoidance

Image source: http://www.thunderbird.edu/wwwfiles/ms/globe/Images/globe2.jpg


Cultural Value Dimensions – Geert Hofstede

Image source: www.geert-hofstede.com

http://www.itim.org/img/foto_groen_geert.jpg


Cultural Value Dimensions – Geert HofstedeP

ow

er

dis

tan

ce •HIGH POWER

DISTANCE Malaysia,

Philippines, Mexico;

employees respect the

boss’s formal position in the

hierarchy, autocratic leadership

•LOW POWER DISTANCE

Austria, Denmark, Israel superiors less national and

subordinates are apt to regard one another as equal

Un

cert

ain

ty a

vo

idan

ce •HIGH

UNCERTAINTY AVOIDANCE

Greece, Japan strict laws and

procedures which people adhere

closely; in business - formal

rules which provide more

security and job stability

•LOW UNCERTAINTY

AVOIDANCE Denmark, US more apt for

protests, companies are less structured , there are more

managerial risks, and more job

mobility

Ind

ivid

ualism •HIGH

INDIVIDUALISM US, UK, Australia

mostly democratic countries, individual

initiative, and achievement are

highly valued

•LOW INDIVIDUALISM

Pakistan, Panama collective

belonging to a company

(Japan), the will of the group is strong; society

values harmony and saving face (China); social

pressure and fear of humiliation

Mascu

lin

ity •HIGH

MASCULINITY Japan, Austria mostly men in high-powered

positions, assertiveness, materialism,

considerable job stress;

cooperation - a sign of weakness

•LOW MASCULINITY

Switzerland, New Zealand

feminine values, concern for others, for

relationships, and for the quality of

life is valued, less job stress, more women in high-level positions

Lo

ng

-Term

Ori

en

tati

on

•LONG-TERM ORIENTATION Japan, Saudi

Arabia, S. Korea thrift and

perseverance, future ambitions,

and fulfilling one’s life goals

• SHORT-TERM ORIENTATION

Canada, Germany respect

for tradition, fulfilling social

obligations, and protecting one's

'face'


GERMANY VS. HONG KONG

23

Cultural Value Dimensions – Geert Hofstede

Images source: www.geert-hofstede.com


Critical Operational Value Differences

CULTURES WITH CONFLICTING ORIENTATIONS


DOING BUSINESS IN SAUDI ARABIA

25

Critical Operational Value Differences

Ap

peara

nc

e •Never show bare calves shoulders,

stomach, •Jacket and tie are required for men at business

meetings•Local standards of modesty for

women and menB

eh

avio

r • Alcohol and pork are illegal

• Friday is the day of rest

• Men shake hands with other

men

• Women are to wait for a man to offer hand

• Left hand considered

unclean

• “Thumbs up" gesture is offensive

Co

mm

un

icati

on • “Assalamo

Alaikum”

• Do not discuss the subject of

women

• Talking at a slow pace

• The person who asks the most questions is

likely to be the least important

Images source: http://www.ameinfo.com/gallery/images/saudi-1.jpg



IDENTIFICATION

INDIVIDUAL

Western civilizations

POSITIVE: focus on the

individual

NEGATIVE: competition

between individuals

GROUP

Asian societies

POSITIVE: cooperation in

solving business problems

NEGATIVE: suppress individual

creativity and initiative


27


POST-ACTIVITY

Do you think American and

Arab cultures are different?

Describe American and Arab

culture based on Hofstede’s

dimensions and operational

value differences.






Cultural Profiles and Management

Styles

Unit 3

28


29



The Internet and Its Effect on Culture

PRE-ACTIVITY

In South Korea, information technology is an

important part of business and everyday life.

What do you think is the

percent of households in

Korea that are connected

to the Internet as

compared to the US?

How would you describe

South Korea’s profile?

Image source: http://www.textually.org/tv/archives/images/set3/samsung_schb500_1.jpg

Movie clip: http://www.youtube.com/watch?v=XZ7cdAJwwek



(click image to play a clip)

• norms of behavior

• overall attitudes toward work

• loyalty

• business ethics

• group productivity

MANAGERS CAN DEVELOP CULTURAL PROFILES OF VARIOUS SOCIETIES BASED ON:

Movie clip: http://www.youtube.com/watch?v=002AY4cb5uw&NR=1

http://www.youtube.com/watch?v=002AY4cb5uw&NR=1


CENTRAL AND EASTERN EUROPE VS. THE WEST

General business environment

32


Long term development of the managerial discipline

Established track record (finances, R&D, marketing,

corporate performance)

Public predictability (public relations and public

knowledge , stock market, and investment options)

Public ownership of corporate assets

WEST

Western Europe, North America, Australia,

Japan

Relatively short managerial track record (older managers

educated under the old system)

Operating under the concept of engineering management or business administration

Public knows little about publicly owned enterprises

Low public ownerships of corporate assets

CENTRAL EUROPE

Poland, Czech Republic, Slovakia, Hungary, Romania, Bulgaria, The Baltic Republics

Virtually no track record in management (benevolent

dictatorships)

Relatively new “private” enterprises (mostly spoils of

the old system)

No public predictability Relatively none-existence of public ownership of corporate

assets

EASTERN EUROPE

Ukraine, Moldova, Russia, Byelorussia, Georgia


33


ENVIRONMENTAL FORCES ACTING ON

FORMATION OF ENTERPRISES

TECHNOLOGICAL CLIMATE

• West – appropriate technology for market and end consumer applications

• Central Europe – the lack of appropriate technology is beginning to impact financial efficiency

• Eastern Europe – appropriate technology is still the responsibility of government bureaucrats

ECONOMIC CLIMATE

• West – relative stability with strong international economy linkages

• Central Europe – stabilizing economic and financial transactions

• Eastern Europe – very unstable privatization issues and financially unstable transactions


34


ENVIRONMENTAL FORCES ACTING ON

FORMATION OF ENTERPRISES

SOCIAL CLIMATE (INCL. ETHICAL, POLITICAL & LEGAL CLIMATES)

• West – stabilized over time with high degree of predictability

• Central Europe – unstable ethically, politically, and legally with low degree of predictability

• Eastern Europe – unstable ethically, politically, and legally with no degree of predictability

LIFE STYLES

• West – “relatively” stable managerial behavior with separation between personal and managerial life style

• Central Europe – somewhat consistent managerial behavior is emerging and life styles reflect business culture

• Eastern Europe – negative perceptions of management as a profession and little differentiation between personal and business consumption


35


MANAGERIAL PERSPECTIVES AND GLOBAL

DEVELOPMENT

•Educational implications

•On the job training (internships)

•Progressive on the job career advancements

WEST

improved managerial efficiency and effectiveness in managing enterprises in a rational and objective manner (rational decision

making)

•Use of “head hunters”

•Expectations of on the job performance

•Relatively low benefits

CENTRAL EUROPE

incremental employment of trained professional managers with education and experience

•The role a an extended family

• Issue of control

•Concerns over competitors

EASTERN EUROPE

family or “relative” operated enterprises


36


POST-ACTIVITY

Based on cultural profiles presented before choose a

culture that in your opinion is different from your own

and compare their business practices.

What is their general business

profile?

What are their technological,

economic and social climates?

What are their managerial

perspectives?


Books:

Deresky, H. (2005). International Management: Management

Across Borders and Cultures. Pearson/Prentice Hall

Hill, C. W. L. (2005). International Business: Competing in

the Global Marketplace. University of Washington

House, R.J., Hanges, P.J., Javidan, M., Dorfman, P., &

Gupta, V. (Eds.). (2004). Culture, Leadership, and

Organizations: The GLOBE Study of 62 Societies.

Sage Publications, Inc

Articles:

The future is South Korea. Tech firms try out latest in world's

most wired society.

http://www.sfgate.com/cgi-

bin/article.cgi?f=/c/a/2005/03/13/BROADBAND.TMP

In Korea, a Boot Camp Cure for Web Obsession, The New

York Times,

http://www.nytimes.com/2007/11/18/technology/18reha

b.html?_r=2&ref=business&oref=slogin&oref=slogin

Religious police in Saudi Arabia arrest mother for sitting with

a man

http://www.timesonline.co.uk/tol/news/world/middle_ea

st/article3321637.ece

Saudi Arabia

http://www.cyborlink.com/besite/saudi-arabia.htm

Introduction to the GLOBE Research Project on Leadership

Worldwide

http://www.grovewell.com/pub-GLOBE-intro.html

37

References

Websites:

www.geert-hofstede.com

http://en.wikipedia.org/wiki/Keema

https://www.business.aau.dk/ivo/present/Management/5th_s

emester/2007/Management%20GT_slides.pdf

http://www.internetworldstats.com

http://governanca.cgi.br/noticias/u-s-in-the-broadband-slow-

lane/

Image source:

http://pixdaus.com/pics/CV5PN29Saxht.jpg

http://pixdaus.com/single.php?id=31555

http://www.ameinfo.com/gallery/images/saudi-1.jpg


http://www.thunderbird.edu/wwwfiles/ms/globe/Images/globe

2.jpg

http://www.dominos.co.in

http://www.dominos.com/

Movie clips:


http://www.youtube.com/watch?v=XZ7cdAJwwek


http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/03/13/BROADBAND.TMP



http://www.nytimes.com/2007/11/18/technology/18rehab.html?_r=2&ref=business&oref=slogin&oref=slogin

http://www.nytimes.com/2007/11/18/technology/18rehab.html?_r=2&ref=business&oref=slogin&oref=slogin

http://www.timesonline.co.uk/tol/news/world/middle_east/article3321637.ece

http://www.timesonline.co.uk/tol/news/world/middle_east/article3321637.ece









http://www.geert-hofstede.com/



http://en.wikipedia.org/wiki/Keema

https://www.business.aau.dk/ivo/present/Management/5th_semester/2007/Management GT_slides.pdf

https://www.business.aau.dk/ivo/present/Management/5th_semester/2007/Management GT_slides.pdf

http://www.internetworldstats.com/

http://governanca.cgi.br/noticias/u-s-in-the-broadband-slow-lane/













http://pixdaus.com/pics/CV5PN29Saxht.jpg

http://pixdaus.com/single.php?id=31555





http://www.thunderbird.edu/wwwfiles/ms/globe/Images/globe2.jpg

http://www.thunderbird.edu/wwwfiles/ms/globe/Images/globe2.jpg

http://www.dominos.co.in/

http://www.dominos.com/


http://www.youtube.com/watch?v=XZ7cdAJwwek



38

Acknowledgments

The author wishes to acknowledge the support from the

Workforce Innovation in Regional Economic Development

(WIRED) Opportunity Fund for North Central Indiana DOL Grant

Agreement #: HG-15848-07-60 for “Development of Integrated

Digital Manufacturing Curriculum.”

The author wishes to acknowledge the support from the National

Science Foundation – Advanced Technology Education Program,

NSF Grant # 0603362 for “Midwest Coalition for Comprehensive

Design Education.”

Documents

Leadership and Management in A Global Environment… · US, UK, Australia mostly democratic countries, individual initiative, and achievement are highly valued •LOW INDIVIDUALISM