1. International cultures and project work Lecture slide attachments

2. Attachment 1: Expatriates and cultural differences

3. Expatriate A citizen of one country living and working in another country.

4. Advantages and Disadvantages of Using Local and Expatriate Employees to Staff International Subsidiaries Locals Advantages Lower labor costs Demonstrates trust in local citizenry Increases acceptance of the company by the local community Leads to recognition of the company as a legitimate participant in the local economy Effectively represents local considerations and constraints in the decision-making process Disadvantages Makes it difficult to balance local demands and global priorities Leads to postponement of difficult local decisions (such as layoffs) until they are unavoidable, when they are more difficult, costly, and painful than they would have been if implemented earlier May make it difficult to recruit qualified personnel May reduce the amount of control exercised by headquarters

5. Advantages and Disadvantages of Using Local and Expatriate Employees to Staff International Subsidiaries (cont.) Expatriates Advantages Cultural similarity with parent company ensures transfer of business/management practices Permits closer control and coordination of international subsidiaries Gives employees a multinational orientation through experience at parent company Establishes a pool of internationally experienced executives Local talent may not yet be able to deliver as much value as expatriates can Disadvantages Creates problems of adaptability to foreign environment and culture Increases the “foreignness” of the subsidiary May involve high transfer, salary, and other costs May result in personal and family problems Has disincentive effect on local- management morale and motivation May be subject to local government restrictions

6. Figure 20.3 Phases in acculturation

7. Why International Assignments end in Failure Career Blockage –Many feel that the home office has forgotten them and that their career has been sidetracked Culture Shock –Many people who take international assignments cannot adjust to a different cultural environment Lack of Predeparture Cross-Cultural Training –Only about one-third of MNCs provide any cross-cultural training to expatriates Overemphasis on Technical Qualifications –The same traits that led to success at home can be disastrous in another country Getting Rid of a Troublesome Employee –International assignments may seem to be a convenient way of dealing with mangers who are having problems in the home office Family Problems –The inability or unwillingness of the expatriate’s spouse and children to adapt to life in another country is one of the most important reasons for failure

8. Difficulties on Return Lack of Respect for Acquired Skills –International experience is not highly valued Loss of Status –Returning expatriates often experience a substantial loss of prestige, poser, independence, and authority Poor Planning for Return Position –Often management repatriates an employee with no idea of what position this person should hold in the home office Reverse Culture Shock –Expatriates are usually unaware of how much psychological change they have undergone until they return home

9. Selecting Employees for International Assignments Emphasize cultural sensitivity as a selection criteria Establish a selection board of expatriates Require previous international experience Explore the possibility of hiring foreign-born employees who can serve as “expatriates” at a future date Screen candidates’ spouses and families

10. Attachment 2: The Hofstede framework (1980)

11. Hofstede Cultural Framework 1.Power Distance 2.Individualism vs. Collectivism 3.Masculinity vs. Femininity 4.Uncertainty Avoidance 5.Long Term Orientation

12. Power Distance “...the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.”

14. Power Distance at Work Hierarchy Centralization Salary range Participation Ideal Boss Privilege & status symbols

15. Individualism vs. Collectivism Individualist societies: ties are loose and everyone looks out for himself or herself Collectivist societies: people integrated into strong, cohesive groups; protection is exchanged for loyalty

17. Individualism / Collectivism at Work Employee-employer relationship Hiring and promotion decisions Managerial focus Task vs. relationship priority

18. Masculinity vs. Femininity Masculine societies: social gender roles are distinct (men focus on material success; women on quality of life) Feminine societies: social gender roles overlap (both quality of life)

20. Masculinity / Femininity at Work Centrality of work Ways of managing & decision making Fem: equality, solidarity, quality of work life Mas: equity, compete, performance Conflict resolution

21. Uncertainty Avoidance “…the extent to which the members of a culture feel threatened by uncertain or unknown situations.” NOT the same as risk avoidance Presence of rules

23. Uncertainty Avoidance at Work Necessity of rules Time orientation Precision & punctuality Interpretation of “What is different…” Appropriateness of emotional displays

24. Long term orientation Confucian Dynamism The ‘newest’ dimension three universal dimensions and two fourth dimensions Truth vs. Virtue: What one believes vs. What one does

26. Confucian Dynamism Short-term orientation Social pressure to ‘keep up with the Joneses’ small savings expect quick results concern with possessing Truth Long-term orientation Thrift: being sparing with resources large savings perseverance toward slow results concern with respecting the demands of Virtue

28. Idiosyncrasies of North American Management Theory Stress on Market Processes Stress on the Individual Stress on Managers rather than Workers