CROSS CULTURAL MANAGEMENT CHAPTER-4 BY RAJA.

MAZHAR HAMEED

THE MEANINGS AND DIMENSIONS OF CULTURE

THE NATURE OF CULTURE
CULTURE
ACQUIRED KNOWLEDGE THAT PEOPLE USE TO INTREPRET EXPERIENCE AND GENERATE SOCIAL BEHAVIOUR. THIS KNOWLEDGE FORMS VALUES, CREATES ATTITUDES, AND INFLUENCES BEHAVIOUR.

CULTURAL DIVERSITY
There are many ways of examining cultural differences and their management. Culture can affect technology transfer, managerial attitudes, managerial ideology, and even businessgovernment relations.

THE MEANINGS AND DIMENSIONS OF CULTURE

CULTURAL DIVERSITY
In overall terms, the cultural impact on international management is reflected by these basic beliefs and behaviours. Here are some specific examples where the culture of a society can directly affect management approaches: CENTRALIZED VS DECENTRALIZED DECISION MAKING
In some societies, top managers make all important organizational decisions. In others, these decisions are diffused throughout the enterprise, and middle and lowerlevel managers actively participate in, and make, key deciscions.

THE MEANINGS AND DIMENSIONS OF CULTURE

SAFETY VS RISK
In some societies, organizational decision makers are risk-averse and have great difficulty with conditions of uncertainty. In others, risk taking is encouraged, and decision making under uncertainty is common.

INDIVIDUAL VS GROUP REWARD

In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses and commissions. In others, cultural norms require group rewards, and individual rewards are frowned on.

THE MEANINGS AND DIMENSIONS OF CULTURE

INFORMAL VS FORMAL PROCEDURES.
In some societies, much is accomplished through informal means. In others, formal procedures are set forth and followed rigidly.

HIGH VS LOW ORGANIZATIONAL LOYALTY

In some societies, people identify very strongly with their organization or employer. In others, people identify with their occupational group, such as engineer or mechanic.

THE MEANINGS AND DIMENSIONS OF CULTURE

COOPERATION VS COMPETITION:
Some societies encourage cooperation between their people. Others encourage competition between their people.

SHORT TERM VS LONG TERM HORIZONS

Some cultures focus most heavily on short term horizons, such as short range goals of profit and efficiency. Others are more interested in long range goals, such as market share and technologies development.

STABILITY VS INNOVATION:
The culture of some countries encourage stability and resistance to change. The culture of others puts high value on innovations and change.

THE MEANINGS AND DIMENSIONS OF CULTURE

VALUES IN CULTURE
Basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant.

POWER DISTANCE:
The extent to which less powerful members of institutions and organizations accept that power is distributed unequally.

THE MEANINGS AND DIMENSIONS OF CULTURE

UNCERTAINTY AVOIDANCE:
The extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these.

INDIVIDUALISM:
The tendency of people to look after themselves and their immediate family only.

COLLECTIVISM:
The tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty.

THE MEANINGS AND DIMENSIONS OF CULTURE

MASCULINITY:
A culture in which the dominant values in society are success. Money, and things.

FEMININITY:
A culture in which the dominant values in society are caring for others and the quality of life.

UNIVERSALISM:
The belief that ideas and practices can be applied everywhere in the world without modification.

PARTICULARISM:
The belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere.

THE MEANINGS AND DIMENSIONS OF CULTURE

COMMUNITARIANISM:
Refers to people regarding themselves as part of a group.

NEUTRAL CULTURE:
A culture in which emotions are held in check.

EMOTIONAL CULTURE
A culture in which emotions are expressed openly and naturally.

SPECIFIC CULTURE:
A culture in which individuals have a large public space they readily share with others and a small private space they guard closely and share with only close friends and associates.

THE MEANINGS AND DIMENSIONS OF CULTURE

DIFFUSE CULTURE:
A culture in which public space and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well.

ACHIEVEMENT CULTURE:
A culture in which people are accorded status based on how well they perform their functions.

ASCRIPTION CULTURE:
A culture in which status is attributed based on who or what a person is.

THE MEANINGS AND DIMENSIONS OF CULTURE

GLOBE (GLOBAL LEADERSHIP AND ORGANIZATIONAL BEHAVIOUR EFFECTIVENESS)
A multi country study and evaluation of cultural attributes and leadership behaviours.

CHAPTER-5

MANAGING ACROSS CULTURES

MANAGING ACROSS CULTURES

THE STRATEGY FOR MANAGING ACROSS CULTURES
As MNCs become more transnational, their strategies must address the cultural similarities and differences in their varied markets. A good example is provided by RENAULT, the FRENCH auto giant. For years Renault manufactured a narrow product line that it sold primarily in France. Because of this limited geographic market and the fact that its cars continued to have quality-related problems, the companys performance was at best mediocre. Several years ago, Renault made a number of strategic decisions that dramatically changed the way it did business. Among other things, it brought controlling stakes in Nissan Motor of Japan, Samsung of South Korea etc. At the same the firm is working to improve its effectiveness in dealing with governments, unions, and employees, as well as to understand the cultural differences in customers preferences in EUROPE, ASIA, AND THE AMERICAS.

MANAGING ACROSS CULTURES

ETHNOCENTRIC PREDISPOSITION
A NATIONALISTIC PHILOSOPHY OF MANAGEMENT WHEREBY THE VALUES AND INTERESTS OF THE PARENT COMPANY GUIDE STRATEGIC DECISIONS.

POLYCENTRIC PREDISPOSITION
A PHILOSOPHY OF MANAGEMENT WHEREBY STRATRATEGIC DECISIONS ARE TAILORED TO SUIT THE CULTURES OF THE COUNTRIES WHERE THE MNC OPERATES.

REGIOCENTRIC PREDISPOSITION
A PHILOSOPHY OF MANAGEMENT WHEREBY THE FIRM TRIES TO BLEND ITS OWN INTERESTS WITH THOSE OF ITS SUBSIDIARIES ON A REGIONAL BASIS.

MANAGING ACROSS CULTURES

GEOCENTRIC PREDISPOSITION
A PHILOSOPHY OF MANAGEMENT WHEREBY THE COMPANY TRIES TO INTEGRATE A GLOBAL SYSTEMS APPROACH TO DECISION MAKING.

GLOBALIZATION IMPERATIVES
A BELIEF THAT ONE WORLDWIDE APPROACH TO DOING BUSINESS IS THE KEY TO BOTH EFFICIENCY AND EFFECTIVENESS.

MANAGING ACROSS CULTURES

CROSS CULTURAL DIFFERENCES AND SIMILARITIES
PAROCHIALISM
THE TENDENCY TO VIEW THE WORLD THROUGH ONES OWN EYES AND PERSPECTIVES.

SIMPLIFICATION
THE PROCESS OF EXHIBITING THE SAME ORIENTATION TOWARD DIFFERENT CULTURE FROUPS.

MANAGING ACROSS CULTURES

CULTURAL DIFFERENCES IN VARIOUS COUNTRIES AND REGIONS.
DOING BUSINESS IN VARIOUS PARTS OF THE WORLD REQUIRES THE RECOGNITION AND UNDERSTANDING OF CULTURAL DIFFERENCES. SOME OF THESE DIFFERENCES REVOLVE AROUND THE IMPORTANCE THE SOCIETY ASSIGNS TO TIME, STATUS, CONTROL OF DECISION MAKING, PERSONAL ACCOMPLISHMENT, AND WORK ITSELF. THESE TYPES OF CULTURAL DIFFERENCES HELP TO EXPLAIN WHY EFFECTIVE MANAGERS IN CHINA OR PAKISTAN OFTEN ARE QUITE DIFFERENT FROM THOSE IN FRANCE, AND WHY A SUCCESSFUL STYLE IN THE JAPAN WILL NOT BE IDEAL IN UNDER DEVELOPED COUNTRIES.

CHAPTER-6

ORGANIZATIONAL CULTURES AND DIVERSITY

ORGANIZATIONAL CULTURES AND DIVERSITY

THE NATURE OF ORGANIZATIONAL CULTURE
ORGANIZATIONAL CULTURE SHARED VALUES AND BELIEFS THAT ENABLES MEMBERS TO UNDERSTAND THEIR ROLES AND THE NORMS OF THE ORGANIZATION.

FAMILY CULTURE
A CULTURE THAT IS CHARACTERIZED BY A STRONG EMPHASIS ON HIERARCHY AND ORIENTATION TO THE PERSON.

EIFFEL TOWER CULTURE

A CULTURE THAT IS CHARACTERIZED BY STRONG EMPHSIS ON HIERARCHY AND ORIENTATION TO THE TASK.

ORGANIZATIONAL CULTURES AND DIVERSITY

GUIDED MISSILE CULTURE
A CULTURE THAT IS CHARACTERIZED BY STRONG EMPHSIS ON EQUALITY IN THE WORKPLACE AND ORIENTATION TO THE TASK.

INCUBATOR CULTURE
A CULTURE THAT IS CHRACTERIZED BY STRONG EMPHASIS ON EQUALITY AND ORIENTATION TO THE PERSON.

ORGANIZATIONAL CULTURES AND DIVERSITY

HOMOGENEOUS GROUP
A GROUP IN WHICH MEMBERS HAVE SIMILAR BACKGROUNDS AND GENERALLY PERCEIVE, INTERPRET, AND EVALUATE EVENTS IN SIMILAR WAYS.

TOKEN GROUPS
A GROUP IN WHICH ALL MEMBERS BUT ONE HAVE THE SAME BACKGROUND, SUCH AS A GROUP OF JAPANESE RETAILERS AND BRITISH ATTRONEY

ORGANIZATIONAL CULTURES AND DIVERSITY

BICULTURAL GROUP
A GROUP IN WHICH TWO OR MORE MEMBERS REPRESENT EACH OF TWO DISTINCT CULTURES, SUCH AS FOUR MEXICANS AND FOUR TAIWANESE WHO HAVE FORMED A TEAM TO INVESTIGATE THE POSSIBILITY OF INVESTING IN A VENTURE.

MULTICULTURAL
A GROUP IN WHICH THERE ARE INDIVIDUALS FROM THREE OR MORE DIFFERENT ETHNIC BACKGROUNDS, SUCH AS THREE PAKISTAN, THREE GERMAN, THREE CHINESE, AND THREE SRI-LANKANS MANAGERS WHO ARE LOOKING INTO MINING OPERATIONS IN SOUTH AFRICA.

ORGANIZATIONAL CULTURES AND DIVERSITY

GROUPTHINK
SOCIAL CONFORMITY AND PRESSURES ON INDIVIDUAL MEMBERS OF A GROUP TO CONFORM AND REACH CONSENSUS.

SUCCESS IN THE INTERNATIONAL ARENA

Often is heavily determined by a companys ability to manage multiculturalism and diversity. Firms progress through four phases in their international evolution:
DOMESTIC CORPORATION INTERNATIONAL CORPORATION MULTINATIONAL CORPORATION GLOBAL CORPORATION

ORGANIZATIONAL CULTURES AND DIVERSITY

MULTICULTURALISM AND DIVERSITY
There are a number of ways to examine multiculturalism and diversity. One is by looking at the domestic multiculturalism and diverse workforce that operates in the MNCs home country. Another is by examining the variety of diverse groups that exist in MNCs, including homogeneous groups, token groups, bicultural groups, and multicultural groups. Several potential problems as well as advantages are associated with multicultural, diverse teams.

ORGANIZATIONAL CULTURES AND DIVERSITY

MANAGING CULTURALLY DIVERSE GROUPS
A number of guidelines have proved to be particularly effective in managing culturally diverse groups. These include careful selection of the members, identification of the groups goals, establishment of equal power and mutual respect among the participants, and delivering positive feedback on performance.