Developing Global Managers Learning Objectives Define ethnocentrism and explain what Hofstede concluded about applying American management theories in other countries. Identify and describe the nine cultural dimensions from the GLOBE project. Draw a distinction between individualistic cultures and collectivist cultures. Demonstrate your knowledge of these two distinctions: high-context versus low-context cultures and monochronic versus polychronic cultures. Explain what the GLOBE project has taught us about leadership. Explain why US managers have a comparatively high failure rate in foreign assignments, and identify an OB trouble spot for each stage of the foreign assignment cycle Chapter Three

Organizational Culture Organizational Behavior Cultural Influences on Organizational Behavior 3-1 Figure 3-1 Organizational Culture Economic/ technological setting Political/ legal setting Ethnic background Religion Societal culture Customs Language Personal values/ethics Attitudes Assumptions Expectations Organizational Behavior McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Ethnocentrism 3-2 Ethnocentrism belief that one’s native country, culture, language, and behavior are superior. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Becoming Global Manager Material 3-3 Global Perspective: Focus on global business Cultural Responsiveness: Become familiar with many cultures Appreciate Cultural Synergies: Learn multicultural dynamics Cultural Adaptability: Live and work effectively in different cultures Cross-Cultural Communication: Daily cross-cultural interaction Cross-Cultural Collaboration: Multicultural teamwork Acquire Broad Foreign Experience: Series of foreign career assignments McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Key Cultural Dimensions 3-4 Individualistic Cultures: “I” and “me” cultures where individual freedom and choice are given priority. Collectivist Cultures: “We” and “us” cultures where shared goals and interests rank higher than individual desires and goals. High-Context Cultures: primary meaning derived from nonverbal cues. Low-Context Cultures: primary meaning derived from written and spoken words. Monochronic time: preference for doing one thing at a time because time is limited, precisely segmented, and schedule driven. Polychronic time: preference for doing more than one thing at a time because time is flexible and multidimensional. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Nine Basic Cultural Dimensions from the GLOBE Project 3-5 Power distance Uncertainty avoidance Societal collectivism In-group collectivism Gender egalitarianism Assertiveness Future orientation Performance orientation Humane orientation McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions 3-6 Table 3-1 Dimensions Highest Lowest Denmark, Netherlands, South Africa—black sample, Israel, Costa Rica Morocco, Argentina, Thailand, Spain, Russia Power distance Russia, Hungary, Bolivia, Greece, Venezuela Switzerland, Sweden, German—former West, Denmark, Australia Uncertainty Avoidance Greece, Hungary, Germany—former East, Argentina, Italy Sweden, Korea, Japan, Singapore, Denmark Societal Collectivism McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions (Cont.) 3-7 Table 3-1 Dimensions Highest Lowest Denmark, Sweden, New Zealand, Netherlands, Finland Iran, India, Morocco, China, Egypt In-group collectivism South Korea, Egypt, Morocco, India, China Hungary, Poland, Slovenia, Denmark, Sweden Gender egalitarianism Sweden, New Zealand, Switzerland, Japan, Kuwait Germany—former East, Austria, Greece, US, Spain Assertiveness McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions (Cont.) 3-8 Table 3-1 Dimensions Highest Lowest Russia, Argentina, Poland, Italy, Kuwait Singapore, Switzerland, Netherlands, Canada—English speaking, Denmark Future orientation Russia, Argentina, Greece, Venezuela, Italy Singapore, Hong Kong, New Zealand, Taiwan, US Performance orientation Germany—former West, Spain, France, Singapore, Brazil Philippines, Ireland, Malaysia, Egypt, Indonesia Humane orientation McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Leadership Attributes Universally Liked, Disliked, and Most Strongly Disputed 3-9 Table 3-2 Leader attributes universally liked Leader attributes universally disliked Most disputed leader attributes Trustworthy Noncooperative Subdued Dynamic Irritable Intragroup conflict avoider Motive arouser Egocentric Cunning Decisive Ruthless Sensitive Intelligent Dictatorial Provacateaur Dependable Loner/self-centered Self-effacing Plans ahead Willful Excellence oriented Team builder Encouraging McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Reasons why US Expatriates Fail in Foreign Assignments 3-10 Manager’s spouse cannot adjust to new physical or cultural surroundings Manager cannot adapt to new physical or cultural surroundings Family problems Manager is emotionally immature Manager cannot cope with foreign duties Manager is not technically competent Manager lacks proper motivation for foreign assignment McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Tips for Women (and Men) for Landing Foreign Assignment 3-11 While still in school, pursue foreign study opportunities and become fluent in one or more foreign languages Starting with the very first job interview, clearly state your desire for a foreign assignment Become very knowledgeable about foreign countries where you would like to work Network with expatriates (both men and women) in your company to uncover foreign assignment opportunities McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Tips for Women (and Men) for Landing Foreign Assignment (Cont.) 3-12 Make sure your family fully supports a foreign assignment Get your boss’s support by building trust and a strong working relationship Be visible: make sure upper management knows about your relevant accomplishments and unique strengths Stay informed about your company’s international strategies and programs Polish your cross-cultural communication skills daily with foreign-born co-workers McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Foreign Assignment Cycle 3-13 Figure 3-2 Home Country Experiences Foreign Country Experiences Selection and training Arrival and adjustment Reassignment Returning Home and adjusting Settling in and acculturating McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.