Developing Global Managers

Chapter Three

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

McGraw-Hill/IrwinOrganizational Behavior: Key Concepts, Skills & Best Practices, 3/e

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After reading the material in this chapter, you should be able to:

• Define ethnocentrism and explain what Hofstede concluded about applying American management theories in other countries.

• Identify and describe the nine cultural dimensions from the GLOBE project.

• Draw a distinction between individualistic cultures and collectivist cultures.

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After reading the material in this chapter, you should be able to:

• Demonstrate your knowledge of these two distinctions: high-context versus low-context cultures and monochronic versus polychronic cultures.

• Explain what the GLOBE project has taught us about leadership.

• Identify an OB trouble spot for each stage of the foreign assignment cycle

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A Model of Societal and Organizational Culture

• Societal culture – socially derived, taken-for-granted assumptions about how to think and act

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Cultural Influences on Organizational Behavior

Figure 3-1

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Managing Societal and Organizational Culture

• Employees bring their societal culture to work with them in the form of customs and language

• Organizational culture affects an individual’s values, ethics, attitudes, assumptions, and expectations

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Ethnocentrism

• Ethnocentrism belief that one’s native country, culture, language, and behavior are superior.

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Dealing with Ethnocentrism

• Managers can effectively deal with ethnocentrism through:

- education- greater cross-cultural awareness - international experience- a conscious effort

to value cultural diversity

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The Hofstede Study

How well do US management theories apply in other countries?

• Power distance – How much inequality does someone expect in social situations?

• Individual-collectivism – How loosely or closely is the person socially bonded?

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The Hofstede Study

• Masculinity-femininity – Does the person embrace competitive, performance-oriented traits or nurturing, relation-oriented feminine traits?

• Uncertainty-avoidance – How strongly does the person desire highly structured situations?

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The Hofstede Study

1. Management theories and practices need to be adapted to local cultures

2. Cultural arrogance is a luxury individuals, companies, and nations can no longer afford in a global economy

See excerpt of Hofstede article

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Five Cultural Perspectives

• Basic cultural dimensions• Individualism versus collectivism• High-context and low-context cultures• Monochronic and polychronic time orientation

• Cross-cultural leadership

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Becoming Cross-Culturally Competent

• Cultural intelligence – ability to interpret ambiguous cross-cultural situations correctly

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Project GLOBE

• GLOBE (Global Leadership and Organizational Behavior Effectiveness) – attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes

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Cultural Dimensions fromthe GLOBE Project

• Power distance – How much unequal distribution of power should there be in organizations and society?

• Uncertainty avoidance – How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability?

• Institutional collectivism – How much should leaders encourage and reward loyalty to the social unit?

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Cultural Dimensions fromthe GLOBE Project

• In-group collectivism – How much pride and loyalty should individuals have for their family or organization?

• Gender egalitarianism – How much effort should be put into minimizing gender discrimination and role inequalities?

• Assertiveness – How confrontational and dominant should individuals be in social relationships?

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Cultural Dimensions fromthe GLOBE Project

• Future orientation – How much should people delay gratification by planning and saving for the future?

• Performance orientation – How much should individuals be rewarded for improvement and excellence?

• Humane orientation – How much should society encourage and reward people for being kind, fair, friendly, and generous

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Countries Ranking Highest and Loweston the GLOBE Cultural Dimensions

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Individualism versus Collectivism

• Individualistic culture – primary emphasis on personal freedom and choice

• Collectivist culture – personal goals less important than community goals and interests

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High-context cultures and Low-context cultures

• High-context cultures – primary meaning derived from nonverbal situational cues

• Low-context cultures – primary meaning derived from written and spoken words

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Cultural Perceptions of Time

• Monochronic time – preference for doing one thing at a time because time is limited, precisely segmented, and schedule driven

• Polychronic time – preference for doing more than one thing at a time because time is flexible and multidimensional

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Leadership Attributes Universally Liked and Disliked

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Preparing for a Foreign Assignment

• Expatriate – anyone living or working in a foreign country

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Preparing for a Foreign Assignment

• Major stumbling blocks for American managers working in foreign countries

- Personal and family adjustment problems- Homesickness

• Important success factors in a foreign assignment

- Cultural adaptability- Patience and flexibility- Tolerance for other’s beliefs

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Role of Expatriates

See article on expatriates from Personnel Psychology

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Avoiding Unrealistic Expectations

• Realistic job preview is a must• Cross-cultural training – any type of structured experience designed to help departing employees adjust to a foreign culture

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The Foreign Assignment Cycle

Figure 3-2

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Avoiding Culture Shock

• Culture shock – anxiety and doubt caused by an overload of new expectations and cues

• Best defense is comprehensive cross-cultural training, including intensive language study

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Support during the Foreign Assignment

• Host-country sponsors – assigned to individual managers or families

- Serve as “cultural seeing-eye dogs”

• Maintain an active dialog with established mentors back home

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Avoiding Reentry Shock

• Three areas for potential reentry shock are work, social activities, and general environment

• Key to a successful foreign assignment is making it a well-integrated link in a career chain rather than an isolated adventure

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Video: Johnson & Johnson

See how Johnson & Johnson use their eUniversity to develop global managers. (12:00)