© 2008The McGraw-Hill Companies, Inc. All rights reserved.

ChapterChapter 4 4

International OB: Managing

Across Cultures

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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Ch. 4 Learning Objectives

1. Define the term culture, and explain how societal culture and organizational culture combine to influence on-the-job behavior.

2. Define ethnocentrism, and explain how to develop cultural intelligence.

3. Identify and describe the nine cultural dimensions from Project GLOBE.

4. Distinguish between individualistic and collectivist cultures, and explain the difference between monochronic and polychronic cultures.

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Ch. 4 Learning Objectives

5. Specify the practical lesson from the Hofstede cross- cultural study.

6. Explain what Project GLOBE researchers discovered about leadership.

7. Explain why US managers have a comparatively high failure rate on foreign assignments.

8. Summarize the research findings about Northern American women on foreign assignments, and tell how to land a foreign assignment.

9. Identify four stages of the foreign assignment cycle and the OB trouble spot associated with each.

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CultureCulture is: a set of beliefs and values about how people should and do actIt involves “taken for granted assumptions”•We do not

understand that we do not understand

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Cultural Influences on OB

Economic/technological

setting

Political/legal setting

Ethnic background

Religion

Societal Culture

Customs

Language

Personal values/ethics

Attitudes

Assumptions

Expectations

Organizational culture

Organizational behavior

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Your Experience

I have worked with people of other cultures at work or school.•A=Yes, B=No

I have experienced a conflict or been frustrated when working with people of other cultures.•A = Yes, B=No

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Your Experience

The conflict I experienced was due to cultural differences.•A=Yes, B=No, C= I don’t know

Learning about different cultures is interesting to me.•1=Strongly Disagree, 3=

Neutral, 5= Strongly Agree

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Cultural IntelligenceCultural intelligence The ability to interpret ambiguous cross-cultural situations accurately. Involves:Recognizing different values and practicesUnderstanding the meaning of others’ actionsPerspective on one’s own ways

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Ethnocentrism: A Cultural Roadblock

Ethnocentrism is the belief that one’s native country, culture, language, and modes of behavior are superior to all othersHow do you overcome this?

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Test Your Knowledge

A high performing manager was chosen for a foreign assignment. She tells a colleague “I plan on just doing business the way I always do. Why change what works?” People in the new culture may perceive her to be….a.Ethnocentricb.Culturally intelligent

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High vs. Low Context Cultures

High-ContextRely heavily on situational cues for meaningWhat characterizes high-context cultures?What countries have high-context cultures?

Low-ContextMeaning is derived from the written and spoken wordWhat characterizes low-context cultures?What countries have low-context cultures?

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Contrasting High-Context & Low-Context Cultures

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Cultural Dimensions from the GLOBE Project

Power DistanceUncertainty AvoidanceInstitutional CollectivismIn-group CollectivismGender EgalitarianismAssertivenessFuture OrientationPerformance OrientationHumane Orientation

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Countries Ranking in GLOBE Dimensions

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Individualism vs. Collectivism

Individualistic“I” and “Me” culturesPriority given to individual freedom and choiceExample countries?

Collectivist“We” and “Us” culturesRank shared goals higher than individual desires and goalsSubordinate their own wishes and goals to those of the relevant social unitExample countries?

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Cultural Perceptions of Time

MonochronicPreference for doing one thing at a time because time is limited, precisely segmented, and schedule driven.What characterizes monochronic cultures?What countries have monochronic cultures?

PolychronicPreferences for doing more than one thing at a time because time is flexible and multidimensional.What characterizes polychronic cultures?What countries have polychronic cultures?

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Interpersonal Distance Zones

12.0

4.0

1.5

0US

In

terp

ers

on

al Z

on

es

(dis

tan

ce in f

eet)

Public

Social

Personal

Intimate

Arab Asian + Latin

American Cultures

North American

+ Northern European

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Test Your Knowledge

Cultures in which people tend to get right to the point would be considered:a.Polychronicb.Proxemicsc. High contextd.Low context

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Cultural Dimensions: Hofstede Study

Does the person embrace stereotypically competitive, masculine traits or nurturing, feminine traits?

Masculinity-Femininity

How loosely or closely is the person socially bonded?

Individualism-Collectivism

How much do people expect inequality in social institutions?

Power Distance

How strongly does the person desire highly structured situations?

Uncertainty Avoidance

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Test Your Knowledge: How did the US score?

A= True, B= False1.The US scored relatively high

in individualism.2.The US scored high in

femininity.3.The US scored low on

uncertainty avoidance.

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Leadership Attributes - GLOBE

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Foreign Assignments

Would you consider taking a foreign assignment for a 6 months to 1 year duration?•A=Yes, B=No

Expatriates – Anyone living or working in a foreign country

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Why U.S. Expatriates Fail on Foreign Assignments

Personal and family adjustment problems HomesicknessLack of:

• Cultural adaptability• Patience • Flexibility and • Tolerance for other’s

beliefs

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North American Women on Foreign Assignments

Proportion of female expatriates has grownBarriers: Self-disqualification and assumption that women would not be welcomedViewed as foreigners first, then as women

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Tips for Landing a Foreign Assignment

While in school, pursue foreign study opportunities and become fluent in one or more foreign languagesFrom first interview, clearly state your desire for a foreign assignmentBecome very knowledgeable about foreign countries where you would like to workNetwork with expatriates in your companyBe visibleStay informed about company’s international strategies and programsPolish your cross-cultural communication skills

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The Foreign Assignment Cycle (with OB Trouble Spots)

1. Selection & training

“unrealistic expectations”

2. Arrival & adjustment

“culture shock”

3. Settling in & acculturating

“lack of support”

4. Returning home &

adjusting “reentry

shock”

Home Country Experiences

Foreign Country

Experiences

Reassignment

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Key Cross-Cultural Competencies

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Test Your Knowledge

When Peter becomes aware of practices different than his own, he tries to perceive things in a different cultural context. He also reminds himself to look at his own practices from the perspective of those from different cultures.Based on this vignette, is Peter demonstrating cross-cultural competence?•A. Yes•B. No