Developing Global Managers Chapter Three Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Organizational Behavior: Key Concepts, Skills & Best Practices, 3/e

3-3 After reading the material in this chapter, you should be able to: 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.

3-4 After reading the material in this chapter, you should be able to: 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. Identify an OB trouble spot for each stage of the foreign assignment cycle

3-5 A Model of Societal and Organizational Culture Societal culture – socially derived, taken-for-granted assumptions about how to think and act

3-6 Cultural Influences on Organizational Behavior Figure 3-1

3-7 Managing Societal and Organizational Culture Employees bring their societal culture to work with them in the form of customs and language Organizational culture affects an individual’s values, ethics, attitudes, assumptions, and expectations

3-8 Ethnocentrism Ethnocentrism belief that one’s native country, culture, language, and behavior are superior.

3-9 Dealing with Ethnocentrism Managers can effectively deal with ethnocentrism through: - education -greater cross-cultural awareness -international experience -a conscious effort to value cultural diversity

3-10 The Hofstede Study How well do US management theories apply in other countries? Power distance – How much inequality does someone expect in social situations? Individual-collectivism – How loosely or closely is the person socially bonded?

3-11 The Hofstede Study Masculinity-femininity – Does the person embrace competitive, performance- oriented traits or nurturing, relation-oriented feminine traits? Uncertainty-avoidance – How strongly does the person desire highly structured situations?

3-12 The Hofstede Study 1.Management theories and practices need to be adapted to local cultures 2.Cultural arrogance is a luxury individuals, companies, and nations can no longer afford in a global economy See excerpt of Hofstede article

3-13 Five Cultural Perspectives Basic cultural dimensions Individualism versus collectivism High-context and low-context cultures Monochronic and polychronic time orientation Cross-cultural leadership

3-14 Becoming Cross-Culturally Competent Cultural intelligence – ability to interpret ambiguous cross-cultural situations correctly

3-15 Project GLOBE GLOBE (Global Leadership and Organizational Behavior Effectiveness) – attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes

3-16 Cultural Dimensions from the GLOBE Project Power distance – How much unequal distribution of power should there be in organizations and society? Uncertainty avoidance – How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability? Institutional collectivism – How much should leaders encourage and reward loyalty to the social unit?

3-17 Cultural Dimensions from the GLOBE Project In-group collectivism – How much pride and loyalty should individuals have for their family or organization? Gender egalitarianism – How much effort should be put into minimizing gender discrimination and role inequalities? Assertiveness – How confrontational and dominant should individuals be in social relationships?

3-18 Cultural Dimensions from the GLOBE Project Future orientation – How much should people delay gratification by planning and saving for the future? Performance orientation – How much should individuals be rewarded for improvement and excellence? Humane orientation – How much should society encourage and reward people for being kind, fair, friendly, and generous

3-19 Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions

3-20 Individualism versus Collectivism Individualistic culture – primary emphasis on personal freedom and choice Collectivist culture – personal goals less important than community goals and interests

3-21 High-context cultures and Low-context cultures High-context cultures – primary meaning derived from nonverbal situational cues Low-context cultures – primary meaning derived from written and spoken words

3-22 Cultural Perceptions of Time 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

3-23 Leadership Attributes Universally Liked and Disliked

3-24 Preparing for a Foreign Assignment Expatriate – anyone living or working in a foreign country

3-25 Preparing for a Foreign Assignment Major stumbling blocks for American managers working in foreign countries -Personal and family adjustment problems -Homesickness Important success factors in a foreign assignment -Cultural adaptability -Patience and flexibility -Tolerance for other’s beliefs

3-26 Role of Expatriates See article on expatriates from Personnel Psychology

3-27 Avoiding Unrealistic Expectations Realistic job preview is a must Cross-cultural training – any type of structured experience designed to help departing employees adjust to a foreign culture

3-28 The Foreign Assignment Cycle Figure 3-2

3-29 Avoiding Culture Shock Culture shock – anxiety and doubt caused by an overload of new expectations and cues Best defense is comprehensive cross- cultural training, including intensive language study

3-30 Support during the Foreign Assignment Host-country sponsors – assigned to individual managers or families -Serve as “cultural seeing-eye dogs” Maintain an active dialog with established mentors back home

3-31 Avoiding Reentry Shock Three areas for potential reentry shock are work, social activities, and general environment Key to a successful foreign assignment is making it a well-integrated link in a career chain rather than an isolated adventure

3-32 Video: Johnson & Johnson See how Johnson & Johnson use their eUniversity to develop global managers. (12:00)