13. There is a strong relationship between management values and success; more successful managers tend to favor pragmatic, dynamic, achievement orientated values, while less successful managers tend to have more static and passive values
34. Universalism – More emphasis on formal rules than on relationships and trust
35. Particularism – The belief that circumstances dictate how ideas and practices should be applied
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37. Similar to the Individualism/Collectivism comparison of Hofstede
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41. Time Perception of time = major cultural difference Sequential one task at a time, strictly abide by deadlines and show preference for following rules Synchronous multitasking, appointments are approximate (likely to change) and schedules are subordinate to relationships
42. Strategic Predispositions Ethnocentric values and interests of parent co guide strategic decisions Polycentric decisions tailored to suit culture of country MNC is operating from Regiocentric tries to blend own interests w/ those of its subsidiaries on regional basis Geocentric tries to integrate global systems approach to decision making
43. Globalization Imperative belief one worldwide approach to doing business is the key to both effectiveness and efficiency Study: most MNCs use same business strategy abroad as at home; effective MNCs take step further to address local needs as well
44. Adjusting Global Strategies for Regional Markets Challenges MNCs must be aware of local market conditions & not assume all markets the same MNCs must know strengths & weaknesses of its subsidiaries MNCs must give subsidiaries more independence
46. Simplification Process of exhibiting the same orientation toward different cultural groups Reflects one’s basic culture Due to misunderstanding/not knowing the culture
47. Similarities How is it useful for businesses to know about cultural similarities? Think about: individual employees; customers; business partners
48. Differences Why is it important for businesses to know about cultural differences? Think about: individual employees; customers; business partners
49. Name that Country Labor laws in this country requires that employees receive full pay 365 days a year. Some parts of this country have legislated pay equity (comparable worth). In this country, compensation levels are determined by using age, length of service, and educational background (rather than skill, ability, and performance).
50. Name that Country (cont.) In this country, employees are allowed up to 40 weeks of maternity leave and employers must provide a government-mandated amount of pay for 18 of those weeks. In about 87% of large companies in this country, the head of human resources is on the board of directors.
Notas do Editor
As the beginning (different companies/countries have different viewpoints on taking work home with them, where/when work can be done, etc) example makes clear, different countries have different business practices and styles. Even as new technology allows us to reap the benefits of increased connectivity, some countries are having problems adjusting to the changes.Learned – Learned through learning and experienceShared – Society shares culture, it is not individualisticTransgenerational – Culture is cumulative through generationsSymbolic – Culture uses symbols to represent thingsPatterned – Has structure and is integrated, a change in one part will lead to changes in othersAdaptive – Based on human capacity to change or adapt
US – FirmAsian – GentleBritish – SoftFrench – Light and quick, not offered to superiorsGerman – Brusk and firmLatin American – ModerateMiddle Eastern – GentleSouth African – Light/soft
US – FirmAsian – GentleBritish – SoftFrench – Light and quick, not offered to superiorsGerman – Brusk and firmLatin American – ModerateMiddle Eastern – GentleSouth African – Light/soft
Low – Denmark and Great BritainHigh – Germany, Japan, Spain
Former communist countries like Czech and Soviet Union are found to be quite individualistic (surprising)Thailand is very high on individualism, low a few years before
Example: University Prof in US = Doctor Smith at work; Bob while shopping; just one of the guys while golfingBob has private space that is off limits to classroom students, but his conduct is different based on his public roleUniversity Prof in Germany = Herr Professor Doktor Smith all the time, even his wife might say that in public
What kind of group would an achievement culture business send to work with an ascription culture business?When achievement cultures do business in ascription cultures, need to make sure group doing the interaction is older, more experienced and holds a senior position. However, when ascription cultures do business in achievement cultures, need to make sure group is knowledgeable, can produce efficient data and are capable of convincing the achievement group that they are proficient in doing business.
Compare US to South American countriesAmericans like to follow a time schedule. Things will be done when the deadline is set. In South American countries, time is a suggestion. Not prompt. Schedules subordinate = ppl plan for there to be interruptions in their day to talk with friends/coworkers
MNCs have cultural strategic inclination toward doing business in a particular way. There are four distinct ways that companies will be inclined to doing business.Successful MNCs use a mixture of these techniques.
Do all products need to change business tactics to sell their products? What products don’t need to?Products that emit a certain lifestyle (high fashion [Burberry, Louis Vuitton] and Porsche) as well as impulse purchase items (Coca-Cola, candy products) tend to not need a different sells approach when entering another country
Bullet 2: so that it can provide assistance w/ local demandsBullet 3: so it can respond to changes in local demands
What kind of problems does this create?People with this tendency think they are more knowledgeable and experienced and that their views are more superior than those they are doing business with (especially when dealing with less developed countries). Comes across as rude and arrogant and can disrupt the whole process of doing business abroad.
Managers often misinterpret what is happening when they are unfamiliar with local customs. Looking chinese businessman in the eyes = disrespectKorea – must present a present to begin business (not considered bribery)
-Individual:people who share cultural similarities can be managed in similar styles/techniques-Customers: helps market products; if target audiences share cultural similarities then the company can market the product to fit the similarities-Partners: (ex from book) techniques can be shared -Organizational Behavior MODification: Russian supervisors trained to administer social rewards (attention/recognition) & positive feedback when employees were engaging in appropriate behavior and taught to give corrective feedback when behavior wasn’t fit -Results: O. B. Mod. produced positive results in the Russian factory
-Individual: businesses must understand the differences to manage employees in ways that are conducive to the business; not all techniques work with all employees-Customers: helps market products; if target audiences have cultural differences then the company needs to change their marketing style-Partners: if companies want to do business with international companies, then they need to change/understand the differences to create better partnerships