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The Meanings and Dimensions of Culture and Managing Across Culture Mike, Roy, and Tianfan

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Page 1: Meeting 4 team a

The Meanings and Dimensions of Culture and Managing Across

Culture

Mike, Roy, and Tianfan

Page 2: Meeting 4 team a

What is Culture?• An acquired knowledge that people use to

interpret experiences and generate social behavior– Forms Values– Creates attitudes– Influences behaviors

• 6 Characteristics of Culture– Learned– Shared– Transgenerational– Symbolic– Patterned– Adaptive

Page 3: Meeting 4 team a

Hofstede’s Model of Culture

The explicit artifacts and products of the society

The norms and values that guide the society

The implicit, basic

assumptions that guide people’s

behavior

Page 4: Meeting 4 team a

How do you Shake Hands?• American Style

• Asian Style

• European Style

Page 5: Meeting 4 team a

Discussion QuestionIn what ways can measuring attitudes

about the following help differentiate between cultures such as the U.S.,

Germany, and Japan?

– Centralized vs. Decentralized Decision Making

– Safety vs. Risk– Individual vs. Group rewards

– High vs. Low Organizational Loyalty– Cooperation vs. Competition

Page 6: Meeting 4 team a

Dimensions of Culture• Hofstede

– Power Distance– Uncertainty Avoidance– Individualism– Masculinity– Time

• Trompenaar – Universialism vs. Particularism– Individualism vs. Communitarianism – Neutral vs. Emotional– Specific vs. Diffuse– Achievement vs. Ascription– Time

Page 7: Meeting 4 team a

Time and Environment

Page 8: Meeting 4 team a

Discussion Question

In what way is time a cultural factor? In what way is the need to control the

environment a cultural factor?

Page 9: Meeting 4 team a

Priorities of Cultural Values

United States Japan Arab Countries

Table 4-1Priorities of Cultural Values: United States, Japan, and Arab Countries

1. Freedom2. Independence3. Self-reliance4. Equality5. Individualism6. Competition7. Efficiency8. Time9. Directness10. Openness

1. Belonging2. Group harmony3. Collectiveness4. Age/seniority5. Group consensus6. Cooperation7. Quality8. Patience9. Indirectness10. Go-between

1. Family security2. Family harmony3. Parental guidance4. Age5. Authority6. Compromise7. Devotion8. Patience9. Indirectness10. Hospitality

Note: “1” represents the most important cultural value, “10” the least.

Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries

Page 10: Meeting 4 team a

Discussion Question

Looking at the lists of these values for their respective countries what

kind of managing styles would managers from these countries have

and why?

Page 11: Meeting 4 team a

Priorities of Cultural Values

United States Japan Arab Countries

Table 4-1Priorities of Cultural Values: United States, Japan, and Arab Countries

1. Freedom2. Independence3. Self-reliance4. Equality5. Individualism6. Competition7. Efficiency8. Time9. Directness10. Openness

1. Belonging2. Group harmony3. Collectiveness4. Age/seniority5. Group consensus6. Cooperation7. Quality8. Patience9. Indirectness10. Go-between

1. Family security2. Family harmony3. Parental guidance4. Age5. Authority6. Compromise7. Devotion8. Patience9. Indirectness10. Hospitality

Note: “1” represents the most important cultural value, “10” the least.

Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries

Page 12: Meeting 4 team a

Parochialism

The tendency to view the world through one’s own eyes and

perspective.

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Page 14: Meeting 4 team a

Simplification

The process of exhibiting the same orientation toward different cultural

groups.

Page 16: Meeting 4 team a

Discussion Question

In what way are parochialism and simplification barriers to effective

cross-cultural management?

Page 17: Meeting 4 team a

Case Study

Beijing, here we come!

Page 18: Meeting 4 team a

Doing Business in China• Technical competence

• Time concept and reluctance

• GUANXI! “who you know>what you know”! Very Important!

• #1 Priority=Personal well-being: think of Chinese negotiators as humans first

Page 20: Meeting 4 team a

About the Case • A Canadian toy company wants to

invest in the PRC– 5 year contract and the PRC will take

control of the plant after 5 years– This would allow for maximized profit

• They were formerly contracted to a Taiwanese company which is becoming more expensive– They must renew before the end of 60

days– The contract there will be extended

another 24 months if renewed

Page 21: Meeting 4 team a

DiscussionWhat is the likelihood that the Canadians will be able

to reach an agreement with the mainland Chinese and not have to go back to their Taiwanese

supplier?

Are the Canadians making a strategically wise decision in letting the Chinese from the PRC

handle the manufacturing, or should they insist on getting more actively involved in the

production process?

What specific cultural suggestions would you make to the Canadians regarding how to do business

with the mainland Chinese?

Page 22: Meeting 4 team a

So what about this…As people engage in more international travel and become

more familiar with other countries, will cultural differences decline as a roadblock to international understanding, or

will they continue to be a major barrier?

What are potential benefits of cultural differences within the globalized business world?