Expectations of Manager’s Across Cultures “It is important for managers to have at hand precise answers to most of the questions their subordinates may raise about their work.” Percentage agreeing with the above: –Sweden: 10% –Germany: 46% –Spain & Japan: 78% –USA: 18%

Average vacation days for employees with one year of service USA: 10 days Spain: 22 days Germany: 18 Sweden: 30 Finland: 20 Japan:10

Parental Leave Sweden: 90% pay for 12 months Denmark, 90% pay for 28 weeks Germany, 14 weeks, 100% pay Ireland, 14 weeks, 70% pay Italy, 20 weeks, 80% pay USA, 12 weeks, unpaid (FMLA)

Culture defined “The collective programming of the mind which distinguishes the members of one human group from another…the interactive aggregate of common characteristics that influence a human group’s response to its environment.” – Hofstede Socially derived, taken-for-granted assumptions that shape behavior, or structure one’s perception of the world

What are Americans like? Direct, don’t talk around things. Competitive Independent and individualistic Questioners: Ask a lot of questions Dislike silence –Would rather talk about the weather than deal with silence Punctual

“For managers who have to operate in an unfamiliar culture, training based on home- country theories is of very limited use and may even do more harm than good” –An American was sent to manage a bank in Venezuela. He asked the employees for their input and recommendations to solve a problem. How did the employees react? Why Study International Management?

Expatriates People from one national culture working in another for a fixed period of time –U.S. expatriates (3 years is the average assignment) –Average 3 year assignment can cost firms up to $1 million per expat Moving expenses, education, expat premiums, cost of living differences, inflation, etc.

Why U.S. managers would accept an international assignment Cross-cultural experience (52%) –Gain a greater understanding of another way of life Money (40%) –Higher salary, more fringe benefits Career Advancement (21%) –Increased opportunities & exposure

Why U.S. managers would NOT accept an international assignment Location –Political unrest, dangerous Career –High risk of job failure, isolation from home company, forgotten Family –Dual-careers, spouse unwilling to move

Repatriation Issues Will I have a job at the same company when I return? –46% of U.S. firms do not guarantee a position at home upon completion of the assignment Mergers, downsizing, layoffs –An international assignment may be a high-risk career strategy –Why type of job will I have upon return? Less challenging, lower status, and less responsibility High rate of turnover for “expats” upon return (25% within a year) –Consider the cost of an expatriate assignment (about $1 million) and the potential loss of part of this “investment”

Reasons for Expatriate Failure U.S. “Expats” (up to 45% failure rate) 1) Inability of spouse to adjust Career disruption Social needs Personal & career identity 2) Manager’s inability to adjust 3) Other family reasons Children at school & related adjustments Issues with family in the U.S. (elder care)

Expatriate Selection Issues Personality issues –High tolerance for ambiguity –High self-monitor –Emotional stability –Nonjudgmental, nonevaluative –Flexibility & willingness to try new ways –Initiative

Expatriate Selection Issues (cont.) Family Issues –“Would your spouse be interrupting a career to accompany you? If yes, how might this affect your spouse and your relationship with each other? –“Are you prepared to have less contact with your extended family?” AT&T’s self-assessment of “cultural-adaptability”

Hofstede’s Study Study of IBM employees across the world –National culture explained more of the differences in work-related values and attitudes than did: Position within the organization Profession Age Gender Found four core dimensions of national culture

Hofstede’s Dimensions of National Culture Individualism versus collectivism –Individualism: (USA, Australia) Emphasis on the individual: make primary contributions to oneself –Collectivism: (Japan) Emphasis on the group: make primary contributions to group goals and objectives Members are expected to look after other members –Implications Organizational loyalty, teamwork, social loafing

Hofstede’s Dimension’s (cont.) Power distance: measures the extent to which the less powerful members of an organization accept/expect an unequal distribution of power –Large “PD” (Venezuela, Philippines) Wide differences in power are accepted and often preferred –Titles & hierarchy are very important –Small “PD” (Denmark, Ireland) Power differences are played down –Boss is not someone to fear Implications –Organizational structure (pyramid vs. flat) –Decision-making issues: Participative vs. authoritarian, decentralized vs. centralized

Hofstede’s Dimensions (cont.) Uncertainty Avoidance –The extent to which people feel threatened by ambiguity & uncertainty (risk) and therefore try to avoid such situations Implications –Career stability (job security), formal rules –High in uncertainty avoidance (Portugal, Greece) Concept of “lifetime employment” Formal rules help to reduce uncertainty Working hard is a way of reducing uncertainty (“karoshi”) –Low in uncertainty avoidance (Denmark, Singapore) Risk taking is more accepted & encouraged

Hofstede’s Dimensions (cont.) Quantity vs. quality of life –Quantity: emphasizes acquisition of money and things (materialism) – (USA) –Quality: emphasizes relationships and overall quality of life (time for activities outside of work is important) – (Sweden) Implications for work hours, vacation time, pay issues

Gender roles:The extent to which career and family roles for men and women are distinct –Similar: Both men and women work outside the home and take care of family obligations (Sweden) –Unique: Men work outside of the home, women take care of the family (Japan, Austria, Mexico) Implications for paternity & maternity leave, on-site day care, flex-time