Chapter 5 Managing Across Cultures
Car Culture: Who’s the leader? Chart p. 140 /china-slowing-auto- sales-still-eclipse-u-s-japan- germany-cars.html /china-slowing-auto- sales-still-eclipse-u-s-japan- germany-cars.html
“Empower and invest in local communities” 4 Strategic Dispositions 1) Ethnocentric- WHS is seeking to do this strategic method by sending EE’s to other countries with their values & interest, to set up the plant 2) Polycentric- WHS may eventually implement this method by hiring & promoting citizens that are in the host country, costs are lower, EE’s know culture
“Localize manufacturing with enough demand” 4 Strategic Dispositions 3) Regiocentric- WHS could hire those from a specific region of a country for key positions, could be from host or 3 rd country, may face cultural differences 4) Geocentric- WHS probably won’t venture this disposition, collective of best in the field around the world for key positions
Meeting the Challenge Why do MNC’s stay committed to Globalization Imperative? Trompenaars’s Approach for Cultural Dimensions & Advertising Figure 5-1 p. 144
5 of the 10 Key Factors for MNC Success p. 145 Visioning themselves as a MNC Develop strategies=$$ for other firms Operate as 1 large org vs many small Allow outside directors in active role Develops a system, keeps all informed about political changes worldwide, act quickly
Cross-Cultural Differences and Similarities Parochialism- Viewing the world through one’s own eyes & perspectives Simplification- Exhibiting the same orientation/ways toward different cultural groups Table 5-2 p. 147
Are there similarities across cultures? Studies showed yes, but these are controlled studies Russian and Korean Differences across Cultures? HAIRL system of appraisal & Shell Oil
Figure 5-2 p. 151 HRM and Managers need to know the difference between countries Must understand the local environment, cultural differences to be addressed, no stereotyping or assumptions
Doing Business In China Aka- (PRC)- People’s Republic of China Primary Criterion= Technical competence Punctual, patience, numerous meeting w/high cancellations, Guanxi (pronounced guangshe), good listener, collective society, less animated, reserved, no boisterous behavior, maintain greater physical distance
Doing Business in China 8 Cultural Highlights p. 155 Family First, but financial and material well-being is rising, workplace harmony, personal well- being services
Doing Business in Russia- 12 Opportunities Build personal relationships Local consultants Consider their business ethics Be patient Stress exclusively Personal relations Financial info personal Research the company Stress mutual gain Clear terminology Don’t be too quick Show benefits of if the deal is adhered to
Doing Business in India- Their customs Be on time No personal questions Titles are important No public display of affection Ok to bargain for goods/services Don’t use finger to point but the chin and palm down is beckoning Use right hand to accept things & eat Namaste to greet Be polite/ courteous
Beijing, here we come! p. 165 3 Questions Teams will be chosen to answer