copyright © houghton mifflin company. all rights reserved. 4-1 chapter 4 international management...

Copyright © Houghton Mifflin Company. All rights reserved.

4-1

Chapter 4

International Management and Cross-Cultural

Competence


4-2

Chapter Outline

Global Organizations for a Global Economy

The Internationalization Process From Global Companies to Transnational

Companies


4-3

Chapter Outline (continued)

Toward Greater Global Awareness and Cross-Cultural Competence

Travelers versus Settlers Contrasting Attitudes Toward International

Operations The Cultural Imperative


4-4

Chapter Outline(continued)

Comparative Management Insights Applying American Management Theories

Abroad Ouchi’s Theory Z: The Marriage of American

and Japanese Management A Cross-Cultural Study of Work Goals An International Contingency Model of

Leadership


4-5

Chapter Outline(continued)

Staffing Foreign Positions Why Is the U.S. Expatriate Failure Rate So

High? Cross-Cultural Training What about North American Women on

Foreign Assignments? Relying on Local Managerial Talent


4-6

GLOBAL ORGANIZATIONS FOR A GLOBAL ECONOMY

The Six-Stage Internationalization Process

Stage 1: Licensing

Stage 2: Exporting

Stage 3: Local warehousing and selling

Stage 4: Local assembly and packaging

Stage 5: Joint ventures

Stage 6: Direct foreign investments


4-7

GLOBAL ORGANIZATIONS FOR A GLOBAL ECONOMY

(continued)

Global company: a multinational venture centrally managed from a specific country.

Transnational company: a global network of productive units with a decentralized authority structure and no distinct national identity.

For Discussion: Why are some people alarmed at the development of transnational companies? What is your opinion?


4-8

CONTRASTING ATTITUDES TOWARD INTERNATIONAL OPERATIONS

Ethnocentric attitude: home-country oriented (“My culture and ways are superior.”)

Polycentric attitude: host-country oriented (“When in Rome, do as the Romans Do.”)

Geocentric attitude: world-oriented (“Search the globe for the best talent.”)


4-9

CONTRASTING ATTITUDES TOWARD INTERNATIONAL OPERATIONS

(continued)

For Discussion:1. What evidence of an ethnocentric attitude

have you observed lately?

2. What problems will ethnocentric managers have in the new global economy?


4-10

THE CULTURAL IMPERATIVE

Culture: the pattern of taken-for granted assumptions about how a given collection of people should think, act, and feel as they go about their daily affairs.

For Discussion: What are the largely unspoken “cultural rules” for student behavior in the typical classroom in your native country?


4-11

THE CULTURAL IMPERATIVE(continued)

High-context cultures: people rely heavily on nonverbal and subtle situational messages when communicating with others.

Low-context cultures: spoken and written words are used to convey primary meaning.

For Discussion: How much emphasis do you put on precise wording, formal contracts, and legal obligations in your business affairs? How is this an expression of your culture?


4-12

OTHER SOURCES OF CULTURAL DIVERSITY

Time

monochronic time: perception of time as a straight line broken into standard units. (“Time is money. It is spent, saved, or wasted.”)

polychronic time: perception of time as flexible, elastic, and multidimensional.


4-13


(continued)

Interpersonal space Language Religion


4-14


(continued)

For Discussion:1. Do you tend to be monochronic or

polychronic? Explain. How well do you deal with people who have the opposite orientation toward time?


4-15

For Discussion:2. How close is “too close” when you are

carrying on a business conversation with a stranger?


(continued)


4-16


(continued)

For Discussion:3. How important is it to have a mastery of the

local language when doing business in a foreign country?


4-17

SURVEY OF HOFSTEDE’S CULTURAL DIMENSIONS

Instructions: Rate yourself on each of the four dimensions by circling a response. Next, rate your native culture by drawing an X through the appropriate response.

Power distance: How readily do individuals accept the unequal distribution of power in organizations and institutions?Low power distance (equality)High Power distance (rank)

1----2----3----4----5----6----7----8----9----10


4-18


(continued)

Uncertainty avoidance: How threatening are uncertain and ambiguous situations, and how important are rules, conformity, and absolute truths?

Avoid uncertainty (rules) Accept uncertainty (chance)

1----2----3----4----5----6----7----8----9----10


4-19


(continued)

Individualism-collectivism: Are people responsible for their own welfare within a loosely knit social framework, or does the group look out for individuals in exchange for loyalty?

Personal responsibility Collective responsibility

1----2----3----4----5----6----7----8----9----10


4-20


(continued)

Masculinity-femininity: How important are masculine attitudes (assertiveness, money and possessions, and performance) versus feminine attitudes (concern for people, the quality of life, and the environment)?Masculine attitudes Feminine attitudes

1----2----3----4----5----6----7----8----9----10


4-21


(continued)

For Discussion:1. How well does your personal profile match

your native culture profile?

2. How will your personal profile help (or hinder) your career as a manager?


4-22

WORK GOALS SURVEY

Instructions: Rank the following eleven work-related goals from 1 = most important to you to 11 = least important to you.

Rank

Interesting work ____

Pay ____

Job Security ____

Match between person and the job ____


4-23

WORK GOALS SURVEY (continued)

Rank

Opportunity to learn ____

Variety ____

Interpersonal relations ____

Autonomy ____

Convenient work hours ____

Opportunity for promotion ____

Working conditions ____


4-24

WORK GOALS SURVEY (continued)

For Discussion:1. Which national profile in Table 4.5 most

closely matches your rankings? Is there a cultural connection?

2. What sort of career does your work goals profile suggest would be best for you? Explain.


4-25

CROSS-CULTURAL TRAINING TECHNIQUES

Documentary programs Culture assimilator Language instruction Sensitivity training Field experience


4-26


(continued)

For Discussion:1. If you were going on an 18-month

assignment in a country where something other than your native language is spoken, which of these training programs would you want? Why?


4-27


(continued)

For Discussion:2. Could you transact a complex business

negotiation in two or more languages? How much of an advantage are your foreign-language skills in the job market today?


4-28

RECENT RESEARCH INSIGHTS ABOUT NORTH AMERICAN WOMEN

ON FOREIGN ASSIGNMENTS

Enjoyed above average success Greatest barriers are self-disqualification and

prejudice among home-country managers Culture is a bigger hurdle than gender

(foreigner first, woman second)

For Discussion (Women): Does this evidence increase your desire to pursue a foreign assignment? Explain.

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