International OB: Managing Across Cultures Chapter 4 International OB: Managing Across Cultures

4-2 Culture Culture is “a set of beliefs and values about what is desirable and undesirable in a community of people and a set of formal or informal practices to support the values.” McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Cultural Influences on Organizational Behavior 4-3 Figure 4-1 Cultural Influences on Organizational Behavior Organizational culture Economic/technological setting Political/legal Ethnic background Religion Personal values/ethics Attitudes Assumptions Expectations Societal Culture Customs Language Organizational behavior McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Ehtnocentrism: A Cultural Roadblock 4-4 Ehtnocentrism: A Cultural Roadblock Ethnocentrism is the belief that one’s native country, culture, language,and modes of behavior are superior to all others McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

High vs. Low Context Cultures 4-5 Figure 4-3 High vs. Low Context Cultures High-Context Establish social trust first Value personal relations and goodwill Negotiations slow and ritualistic Chinese Korean Japanese Vietnamese Low-Context Get down to business first Value expertise and performance Agreement by specific, legalistic contract Negotiations as efficient as possible German Swiss Scandinavian North American McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Cultural Dimensions from the GLOBE Project 4-6 Cultural Dimensions from the GLOBE Project Power Distance Uncertainty Avoidance Societal Collectivism In-group Collectivism Gender Egalitarianism Assertiveness Future Orientation Performance Orientation Humane Orientation McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Rankings on the GLOBE Cultural Dimensions 4-7 Table 4-1 Rankings on the GLOBE Cultural 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, Austria Uncertainty Avoidance Greece, Hungary, Germany-former East, Argentina, Italy Sweden, South Korea, Japan, Singapore, Denmark Societal Collectivism McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Rankings on the GLOBE Cultural Dimensions 4-8 Table 4-1 cont. 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, U.S., Spain Assertiveness McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Rankings on the GLOBE Cultural Dimensions 4-9 Table 4-1 cont. Rankings on the GLOBE Cultural 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, U.S. Performance Orientation Germany-former West, Spain, France, Singapore, Brazil Philippines, Ireland, Malaysia, Egypt, Indonesia Humane Orientation McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Individualism vs. Collectivism 4-10 Individualism vs. Collectivism Individualistic “I” and “Me” cultures Priority given to individual freedom and choice Israel Romania Nigeria Canada United States Collectivist “We” and “Us” cultures Rank shared goals higher than individual desires and goals Subordinate their own wishes and goals to those of the relevant social unit Egypt Nepal Mexico India Japan McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Interpersonal Distance Zones for Business Conversations 4-11 Figure 4-4 Interpersonal Distance Zones for Business Conversations Proxemics – study of cultural expectations about personal space Public Social Personal Intimate 12.0 4.0 1.5 US Interpersonal Zones (distance in feet) Arab Asian + Latin American Cultures North American + Northern European McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Cultural Dimensions: Hofstede-Bond Studies 4-12 Table 4-2 Cultural Dimensions: Hofstede-Bond Studies How much do people expect inequality in social institutions? Power Distance How loose or tight is the bond between individuals and societal groups? Individualism-Collectivism To what extent do people embrace competitive masculine traits, or nurturing feminine traits? Masculinity-Femininity McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Cultural Dimensions: Hofstede-Bond Studies 4-13 Table 4-2 cont. Cultural Dimensions: Hofstede-Bond Studies To what extent do people prefer structured vs. unstructured situations? Uncertainty Avoidance To what extent are people oriented toward the future by saving and being persistent vs. being oriented toward the present and past by respecting tradition and meeting social obligations? Long-Term vs. Short-Term Orientation McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Highest Scoring Countries: Hofstede-Bond Studies 4-14 Table 4-3 Highest Scoring Countries: Hofstede-Bond Studies Hong-Kong Brazil Singapore India Philippines High Power Distance Germany Sweden New Zealand Canada Netherlands Great Britain Australia United States High Individualism Japan High Masculinity Pakistan Brazil Korea Japan High Uncertainty Avoidance Korea Japan Taiwan Hong-Kong High Long-Term Orientation McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Leadership Attributes Across 60 Countries 4-15 Table 4-4 Leadership Attributes Across 60 Countries Encouraging Team builder Excellence oriented Plans ahead Dependent Intelligent Decisive Motive arouser Dynamic Trustworthy Leader Attributes Universally Liked Loner/Self-centered Dictatorial Ruthless Egocentric Irritable Noncooperative Leader Attributes Universally disliked Willful Self-effacing Provocateur Sensitive Cunning Intra-group conflict avoider Subdued Most Disputed Leader Attributes McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Why U.S. Expatriates Fail on Foreign Assignments 4-16 Why U.S. Expatriates Fail on Foreign Assignments The manager’s spouse cannot adjust to new physical or cultural surroundings The manager cannot adapt to new physical or cultural surroundings Family problems The manager is emotionally immature The manager cannot cope with foreign duties The manager is not technically competent The manager lacks the proper motivation for foreign assignments McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

North American Women on Foreign Assignments 4-17 North American Women on Foreign Assignments The proportion of corporate women from North America on foreign assignments grew from 3% to between 11 and 15% Self-disqualification and management’s assumption that women would not be welcomed are primary barriers to potential female expatriates Expatriate N.A. women are viewed first as being foreigners and only secondly as being women by their hosts N.A. women have a very high success rate on foreign assignments McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.