Chapter 6 MANAGING ACROSS CULTURES

Strategies for Managing Across Cultures Globalization - the production and distribution of products and services of a homogeneous type and quality on a worldwide basis National responsiveness- the need to understand the different consumer tastes in segmented regional markets

Globalization Vs. National Responsiveness Matrix High Low High globalization Mixed Low Mixed National Responsiveness Globalization

Parochialism and Simplification Parochialism- the tendency to view the world through one’s eyes and perspectives Simplification- the process of exhibiting the same orientation toward different cultural groups

High Vs. Low Context Cultures High Context long lasting relationships implicit communication loyalty to people of authority spoken agreements outsiders do not gain entry easily JAPAN Low Context relationships are short in duration explicit communication authority is diffused written agreements ousiders are encouraged to join inner circle U.S.

General Similarities Across Cultures Managerial behaviors in Russia communication HRM traditional management networking Application of O.B. Mod. in Russia Organizational commitment in Korea

General Differences Across Cultures HRM activities labor laws wages vacation time maternity leave compensation group Vs. individual incentives

Doing Business in China Emphasis on trust and mutual connections Meetings start with small talk Host indicates when meetings begin and end Slow in forming a an action plan, but stick with decisions once made Reciprocity is important Negotiations are often carried out through intermediaries to reduce the risk of losing face

Doing Business in India Punctuality is important No personal questions Titles are important No public displays of affection Beckoning done with the palm turned down When eating or accepting things, use the right hand- the left is considered unclean The namaste gesture can be used to greet people Bargaining for goods and services is common

Doing Business in Russia Build personal relationships with partners Use local consultants Consider business ethics Be patient Stress exclusivity Face to face communication is expected Keep financial information personal Research the company Stress mutual gain Clarify terminology

Doing Business in France Use a quick hand shake with some pressure in the grip Punctuality is extremely important During a meal, small talk is acceptable, but personal questions and the subject of money are never brought up Great importance is placed on neatness and taste

Doing Business in Arab Countries Never display feelings of superiority Do not take credit for joint efforts Efforts to sidestep red tape can be regarded as disrespect for legal and government institutions Connections are extremely important Patience is critical to business transactions