1. Cross Cultural Management
Describes organizational behavior within countries and cultures
Compares organizational behavior across countries and cultures
Seeks to understand and improve the interaction of customers, suppliers, employees, executives, and others from countries and cultures around the world

2. 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

3. 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

4. Why Study International Organizational Behavior?
“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?

5. Expectations of Manger’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%

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

7. Maternity Leave Sweden: Either parent, 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)

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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.

14. Catskill Roads What should they do? Why?
In general, what factors should be considered in the decision to accept or reject an expatriate assignment?

15. 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

16. 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

17. 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”

18. 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)

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

20. 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”