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CROSS CULTURAL MANAGEMENT
CHAPTER-4
BYRAJA. MAZHAR HAMEED
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THE MEANINGS AND DIMENSIONS OF
CULTURE
THE NATURE OF CULTURE
CULTURE
ACQUIRED KNOWLEDGE THAT PEOPLE USE TO
INTREPRET EXPERIENCE AND GENERATE SOCIALBEHAVIOUR. THIS KNOWLEDGE FORMS VALUES,CREATES ATTITUDES, AND INFLUENCES BEHAVIOUR.
CULTURAL DIVERSITY
There are many ways of examining cultural differencesand their management. Culture can affect technologytransfer, managerial attitudes, managerial ideology, andeven businessgovernment relations.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
CULTURAL DIVERSITY
In overall terms, the cultural impact on internationalmanagement is reflected by these basic beliefs andbehaviours. Here are some specific examples wherethe culture of a society can directly affectmanagement approaches:
CENTRALIZED VS DECENTRALIZED DECISION MAKING
In some societies, top managers make all important
organizational decisions. In others, these decisions arediffused throughout the enterprise, and middle and lower-level managers actively participate in, and make, keydeciscions.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
SAFETY VS RISK
In some societies, organizational decision makers arerisk-averse and have great difficulty with conditions ofuncertainty. In others, risk taking is encouraged, anddecision making under uncertainty is common.
INDIVIDUAL VS GROUP REWARD
In some countries, personnel who do outstanding
work are given individual rewards in the form ofbonuses and commissions. In others, cultural normsrequire group rewards, and individual rewards arefrowned on.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
INFORMAL VS FORMAL PROCEDURES.
In some societies, much is accomplished through
informal means. In others, formal procedures are
set forth and followed rigidly.
HIGH VS LOW ORGANIZATIONAL LOYALTY
In some societies, people identify very strongly
with their organization or employer. In others,people identify with their occupational group,
such as engineer or mechanic.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
COOPERATION VS COMPETITION:
Some societies encourage cooperation between theirpeople. Others encourage competition between theirpeople.
SHORT TERM VS LONG TERM HORIZONS Some cultures focus most heavily on short term horizons,
such as short range goals of profit and efficiency. Othersare more interested in long range goals, such as marketshare and technologies development.
STABILITY VS INNOVATION: The culture of some countries encourage stability and
resistance to change. The culture of others puts high valueon innovations and change.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
VALUES IN CULTURE
Basic convictions that people have regarding what
is right and wrong, good and bad, important and
unimportant.
POWER DISTANCE:
The extent to which less powerful members of
institutions and organizations accept that power isdistributed unequally.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
UNCERTAINTY AVOIDANCE: The extent to which people feel threatened by
ambiguous situations and have created beliefs andinstitutions that try to avoid these.
INDIVIDUALISM: The tendency of people to look after themselves and
their immediate family only.
COLLECTIVISM: The tendency of people to belong to groups or
collectives and to look after each other in exchangefor loyalty.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
MASCULINITY: A culture in which the dominant values in society are success.
Money, and things.
FEMININITY:
A culture in which the dominant values in society are caring forothers and the quality of life.
UNIVERSALISM: The belief that ideas and practices can be applied everywhere in
the world without modification.
PARTICULARISM: The belief that circumstances dictate how ideas and practices
should be applied and something cannot be done the sameeverywhere.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
COMMUNITARIANISM:
Refers to people regarding themselves as part of a group.
NEUTRAL CULTURE:
A culture in which emotions are held in check.
EMOTIONAL CULTURE A culture in which emotions are expressed openly and
naturally.
SPECIFIC CULTURE:
A culture in which individuals have a large public spacethey readily share with others and a small private spacethey guard closely and share with only close friends andassociates.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
DIFFUSE CULTURE: A culture in which public space and private space are
similar in size and individuals guard their public spacecarefully, because entry into public space affords entry
into private space as well. ACHIEVEMENT CULTURE:
A culture in which people are accorded status basedon how well they perform their functions.
ASCRIPTION CULTURE: A culture in which status is attributed based on who
or what a person is.
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THE MEANINGS AND DIMENSIONS OF
CULTURE
GLOBE (GLOBAL LEADERSHIP AND
ORGANIZATIONAL BEHAVIOUR
EFFECTIVENESS)
A multi country study and evaluation of cultural
attributes and leadership behaviours.
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CHAPTER-5
MANAGING ACROSS CULTURES
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MANAGING ACROSS CULTURES
THE STRATEGY FOR MANAGING ACROSS CULTURES As MNCs become more transnational, their strategies must
address the cultural similarities and differences in their variedmarkets. A good example is provided by RENAULT, theFRENCH auto giant. For years Renault manufactured a narrow
product line that it sold primarily in France. Because of thislimited geographic market and the fact that its cars continued tohave quality-related problems, the companys performance wasat best mediocre. Several years ago, Renault made a number ofstrategic decisions that dramatically changed the way it didbusiness. Among other things, it brought controlling stakes in
Nissan Motor of Japan, Samsung of South Korea etc. At thesame the firm is working to improve its effectiveness in dealingwith governments, unions, and employees, as well as tounderstand the cultural differences in customers preferences inEUROPE, ASIA, AND THE AMERICAS.
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MANAGING ACROSS CULTURES
ETHNOCENTRIC PREDISPOSITION
A NATIONALISTIC PHILOSOPHY OF MANAGEMENTWHEREBY THE VALUES AND INTERESTS OF THE PARENTCOMPANY GUIDE STRATEGIC DECISIONS.
POLYCENTRIC PREDISPOSITION A PHILOSOPHY OF MANAGEMENT WHEREBY
STRATRATEGIC DECISIONS ARE TAILORED TO SUIT THECULTURES OF THE COUNTRIES WHERE THE MNCOPERATES.
REGIOCENTRIC PREDISPOSITION A PHILOSOPHY OF MANAGEMENT WHEREBY THE FIRM
TRIES TO BLEND ITS OWN INTERESTS WITH THOSE OF ITSSUBSIDIARIES ON A REGIONAL BASIS.
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MANAGING ACROSS CULTURES
GEOCENTRIC PREDISPOSITION
A PHILOSOPHY OF MANAGEMENT WHEREBY THE
COMPANY TRIES TO INTEGRATE A GLOBAL
SYSTEMS APPROACH TO DECISION MAKING.
GLOBALIZATION IMPERATIVES
A BELIEF THAT ONE WORLDWIDE APPROACH TO
DOING BUSINESS IS THE KEY TO BOTH EFFICIENCYAND EFFECTIVENESS.
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MANAGING ACROSS CULTURES
CROSS CULTURAL DIFFERENCES AND
SIMILARITIES
PAROCHIALISM
THE TENDENCY TO VIEW THE WORLD THROUGH ONES
OWN EYES AND PERSPECTIVES.
SIMPLIFICATION
THE PROCESS OF EXHIBITING THE SAME ORIENTATIONTOWARD DIFFERENT CULTURE FROUPS.
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MANAGING ACROSS CULTURES
CULTURAL DIFFERENCES IN VARIOUS COUNTRIES ANDREGIONS.
DOING BUSINESS IN VARIOUS PARTS OF THE WORLDREQUIRES THE RECOGNITION AND UNDERSTANDING OFCULTURAL DIFFERENCES. SOME OF THESE DIFFERENCESREVOLVE AROUND THE IMPORTANCE THE SOCIETYASSIGNS TO TIME, STATUS, CONTROL OF DECISIONMAKING, PERSONAL ACCOMPLISHMENT, AND WORKITSELF. THESE TYPES OF CULTURAL DIFFERENCES HELP TOEXPLAIN WHY EFFECTIVE MANAGERS IN CHINA OR
PAKISTAN OFTEN ARE QUITE DIFFERENT FROM THOSE INFRANCE, AND WHY A SUCCESSFUL STYLE IN THE JAPANWILL NOT BE IDEAL IN UNDER DEVELOPED COUNTRIES.
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CHAPTER-6
ORGANIZATIONAL CULTURES AND DIVERSITY
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ORGANIZATIONAL CULTURES AND
DIVERSITY
THE NATURE OF ORGANIZATIONAL CULTURE
ORGANIZATIONAL CULTURE SHARED VALUES AND BELIEFSTHAT ENABLES MEMBERS TO UNDERSTAND THEIR ROLESAND THE NORMS OF THE ORGANIZATION.
FAMILY CULTURE A CULTURE THAT IS CHARACTERIZED BY A STRONG
EMPHASIS ON HIERARCHY AND ORIENTATION TO THEPERSON.
EIFFEL TOWER CULTURE A CULTURE THAT IS CHARACTERIZED BY STRONG EMPHSIS
ON HIERARCHY AND ORIENTATION TO THE TASK.
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ORGANIZATIONAL CULTURES AND
DIVERSITY
GUIDED MISSILE CULTURE
A CULTURE THAT IS CHARACTERIZED BY STRONG
EMPHSIS ON EQUALITY IN THE WORKPLACE AND
ORIENTATION TO THE TASK.
INCUBATOR CULTURE
A CULTURE THAT IS CHRACTERIZED BY STRONG
EMPHASIS ON EQUALITY AND ORIENTATION TOTHE PERSON.
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ORGANIZATIONAL CULTURES AND
DIVERSITY
HOMOGENEOUS GROUP
A GROUP IN WHICH MEMBERS HAVE SIMILAR
BACKGROUNDS AND GENERALLY PERCEIVE,
INTERPRET, AND EVALUATE EVENTS IN SIMILARWAYS.
TOKEN GROUPS
A GROUP IN WHICH ALL MEMBERS BUT ONE HAVETHE SAME BACKGROUND, SUCH AS A GROUP OF
JAPANESE RETAILERS AND BRITISH ATTRONEY
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ORGANIZATIONAL CULTURES AND
DIVERSITY
BICULTURAL GROUP
A GROUP IN WHICH TWO OR MORE MEMBERS REPRESENTEACH OF TWO DISTINCT CULTURES, SUCH AS FOURMEXICANS AND FOUR TAIWANESE WHO HAVE FORMED A
TEAM TO INVESTIGATE THE POSSIBILITY OF INVESTING IN AVENTURE.
MULTICULTURAL
A GROUP IN WHICH THERE ARE INDIVIDUALS FROM THREE
OR MORE DIFFERENT ETHNIC BACKGROUNDS, SUCH ASTHREE PAKISTAN, THREE GERMAN, THREE CHINESE, ANDTHREE SRI-LANKANS MANAGERS WHO ARE LOOKING INTOMINING OPERATIONS IN SOUTH AFRICA.
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ORGANIZATIONAL CULTURES AND
DIVERSITY
GROUPTHINK SOCIAL CONFORMITY AND PRESSURES ON
INDIVIDUAL MEMBERS OF A GROUP TO CONFORMAND REACH CONSENSUS.
SUCCESS IN THE INTERNATIONAL ARENA Often is heavily determined by a companys ability to
manage multiculturalism and diversity. Firms progressthrough four phases in their international evolution: DOMESTIC CORPORATION
INTERNATIONAL CORPORATION
MULTINATIONAL CORPORATION
GLOBAL CORPORATION
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ORGANIZATIONAL CULTURES AND
DIVERSITY
MULTICULTURALISM AND DIVERSITY
There are a number of ways to examinemulticulturalism and diversity. One is by looking at
the domestic multiculturalism and diverseworkforce that operates in the MNCs homecountry. Another is by examining the variety ofdiverse groups that exist in MNCs, including
homogeneous groups, token groups, biculturalgroups, and multicultural groups. Several potentialproblems as well as advantages are associatedwith multicultural, diverse teams.
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ORGANIZATIONAL CULTURES AND
DIVERSITY
MANAGING CULTURALLY DIVERSE GROUPS
A number of guidelines have proved to be
particularly effective in managing culturally
diverse groups. These include careful selection ofthe members, identification of the groups goals,
establishment of equal power and mutual respect
among the participants, and delivering positive
feedback on performance.