1. International Management and Cross-Cultural Competence
Chapter 4
International Management and Cross-Cultural Competence 1

2. Chapter Outline Global Organizations for a Global Economy
The Internationalization Process
From Global Companies to Transnational Companies 2

3. Chapter Outline (continued)
Toward Greater Global Awareness and Cross-Cultural Competence
Travelers versus Settlers
Contrasting Attitudes Toward International Operations
The Cultural Imperative 3

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 5

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 7

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? 7

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.”) 8

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? 9

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? 10

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? 11

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. 12

13. OTHER SOURCES OF CULTURAL DIVERSITY (continued)
Interpersonal space
Language
Religion 13

14. OTHER SOURCES OF CULTURAL DIVERSITY (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? 14

15. OTHER SOURCES OF CULTURAL DIVERSITY (continued)
For Discussion:
2. How close is “too close” when you are carrying on a business conversation with a stranger? 15

16. OTHER SOURCES OF CULTURAL DIVERSITY (continued)
For Discussion:
3. How important is it to have a mastery of the local language when doing business in a foreign country? 16

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) 17

18. SURVEY OF HOFSTEDE’S CULTURAL DIMENSIONS (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) 18

19. SURVEY OF HOFSTEDE’S CULTURAL DIMENSIONS (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 19

20. SURVEY OF HOFSTEDE’S CULTURAL DIMENSIONS (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 20

21. SURVEY OF HOFSTEDE’S CULTURAL DIMENSIONS (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? 21

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 ____ 22

23. WORK GOALS SURVEY (continued)
Rank
Opportunity to learn ____
Variety ____
Interpersonal relations ____
Autonomy ____
Convenient work hours ____
Opportunity for promotion ____
Working conditions ____ 23

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. 24

25. CROSS-CULTURAL TRAINING TECHNIQUES
Documentary programs
Culture assimilator
Language instruction
Sensitivity training
Field experience 25

26. CROSS-CULTURAL TRAINING TECHNIQUES (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? 26

27. CROSS-CULTURAL TRAINING TECHNIQUES (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? 27

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. 25