study guide for the final
study guide for the final MGMT301
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This 19 page Study Guide was uploaded by Julia Staltari on Monday May 4, 2015. The Study Guide belongs to MGMT301 at Pennsylvania State University taught by Ron Johnson in Fall. Since its upload, it has received 249 views. For similar materials see Management in Business, management at Pennsylvania State University.
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Date Created: 05/04/15
OO 00 0 00 GOOD 0 GOOD 0 0000 Chapter 9 tolerance for ambiguity ability to deal with uncertainty even when events are beyond personal control Managers must develop culture intentional encourage innovation manage change gt innovation change culture system of shared beliefsvalues guiding behavior internal the way we do things around here set of signals of what is considered appropriate vs inappropriate external organizational culture a system of shared beliefs and values guiding behavior ex Jcrew and anthro have store climates that match their brands way we do things get culture right and other stuff will just happen zappos fun environment culture is corporate corps and culture shape attitudes reinforce beliefs direct behavior set expectations onboarding process is about this KPMG study analysis of 700 deals over 2 years 83 failed to produce benefit bc of a lack of attention to culture ex microsoft forced ranking of employees creates a tough culture performance svstems are a part of culture strong culture clear well defined and widely shared among org members fits the business and employees clear vision to rally around discourages dysfunctional behavior and encourages helpful ones socialization the process through which new members learn the culture of an org reinforce strong cultures ex disney employees attending the traditions program alternative org cultures hierarchical cultures emphasize authority tradition and clear roles rational cultures emphasize process efficiency and slow change entrepreneurial cultures emphasize change growth creativity and competition team cultures emphasize teamwork collaboration and trust observable culture vs core culture think iceberg IO 0 O OO OIIO O OO 0 culture is observational stuff you can see ex penn state campus dress classes THON observable culture what you see and hear when walking around an organization carry culture over time keep it clear to everyone above water iceberg ex zappos core values are the foundation of culture how they run it stuff you can see stories heroes symbols ritesrituals intentional culture heroes tell stories about leaders that drive culture people who display core values cultural benefits shared knowledge of everything establish or rep core values employees customer and leaders rites and rituals celebration of heroes and events displaying core values cultural benefits creates connections w people and org builds morale and engagement shared hands on experiences does not serve in place of other benefits ex pixar creates a community and brings them together gt dress games etc symbols to drive culture logos that convey core values cultural benefits common understanding of culture easy to recognize you and others ex nike swoosh tony the tiger stories BIG stories tales about events conveying core values cultural benefits easily remember and passed on instills deeper cultural understanding where performance and culture intersect CEO s Disney Packer Walton Meg Whitman lndra Nooyi Ursula burns xerox core culture center of everything found in the underlying values of the org consists of core values what we say about ourselves different to write up values vs living up to them ex Penn State academics code of conduct core values beliefs and values shared by org members culture is personal ex taylor swift vs snoop dog music culture cultural fit 1 thing that drives people away from jobs if they don t fit value based management actively develops communicates and enacts shared values when managers model them for others and communicate reinforce values IIO IIO OO 00 O IIO O CO symbolic leader uses language and symbols and actions to establish and maintain a desired organizational culture talk the language of the org te key stores over and over workplace spirituality involves practices that create meaning and shared community among org members strong ethical foundations value individuals innovation the process of taking a new idea and putting it into practice process of translating an idea or invention into a good or service that creates value of which customers will pay benefits and side effects ex iPad kindle shark tank is a show about innovation ex 3D printing invent what s gonna come next problem guns process innovations mest category every company does it result in better ways of doing things lean principlesreduction of waste reduction in cost increased turnaround increase in output better customer satisfaction exvendino machines going into the electronic credit card world changing payment system with process innovation product innovations result in new or improved goods or services come up with something new ex apple introduces the iPod zero waste drones new product development create a brand new market Ginni Rometty CEO of IBM should she become a member of Agusta golf club business model innovations result in ways for firms to make money have something that is existing and change it in some move your approach to making money netflix turned movie rental into subscription instagram changed the business model of using photos green innovation sustainable innovation reduces the carbon footprint of an org or its products how do I use resources well today and for future generations ahead upcycle keep it in its form and into something else recycle repurpose ex terracycle look at waste differently social innovation business innovation driven by social conscience applies to the world s social problems like famine and poverty social entrepreneurship pursues innovative ways to solve pressing social problems 00000 0000 O OO 00 00 CO the innovation process begins with invention the act of discovery ends with application the act of use commercializing innovation selling innovation the process of turning new ideas into salable products gt get it to market like Lonnie Johnson and bostit creating something new to people who don t understand idea creation discover a potential product or way to modify an existing one gt initial experimentation sharing the idea w others and testing in prototype gt feasibility determination test the practicality nancial viability of the product gt nal application commercializing the product for sale to customers organizing protocols supporting innovation 3M example strategy includes innovation culture values innovation structure supports innovation mgmt supports innovation staffing for creativity innovation reverse innovation recognizes the potential for valuable innovations to be launched from lower org levels and diverse location including emerging markets finds ways to use them elsewhere disruptive innovationcreates products or services that become so widely used that they largely replace prior practices and competitors ex Steve jobs and apple bureaucracy is the enemy of innovation skunkworks special creative unites set free from the normal structure for the purpose of innova on change to make the form nature content future course of something different from what it is or from what it would be if left alone its personal and organizational impact fear of the unknown and loss of control fundamental change drivers change will always be driven by opportunity or threat confident of ability willing to take risks seize opportunities expect surprise make things happen ex facebook and instagram status quo holders threatened by change bothered by uncertainty prefer predictability supports status quo wait for things to happen O OO IIO O O 0 IO IOIIO COIIIO H ex who moved mv cheese when you change what you believe you change what you do KublerRoss model change or grief gt studies people who got terminal disease U shaped curve denial gt anger gt bargaining gt depression gt acceptance gt move on not in death model transformational change when opportunity or threat exists results in a major redirection of the org and T change should be put together and they re both important incremental process improvement find little things to improve all the time bends and adjusts existing ways to improve performance burning platform people orgs who need to change gt die or change IBM transformational change lou was brought into end their life but changed it instead and survived bc of strategy one team hostess decided to go into bankruptcy bc they kept all the old contracts change leader tries to change the behavior of another person or social system confident of ability takes risks seize opportunities expect surprise make things happen status quo managers creates lots of difficulties threatened by change bothered by uncertainty wait for things to happen Lewin three phases of planned change phase 1 unfreezing the phase during which a situation is prepared for change view change as a way to solve problems done by good relationships rid of uneffective minimize resistance phase 2 changing the phase where a planned change actually takes place foundation before the framework done by identify new ways of behaving chose changes take action to put changes into place phase 3 refreezing stabilize change done by creating acceptance for new behaviors provide resource support use rewards for positive reinforcement change process 1 unfreeze create a need for change 2 change implement and manage the process of change 3 refreezing stabilize the change and scan for the future monster issues timing and communication moneyball change process ex O 0 IO 0 0 00 buy wins not players reinvented a system that worked for years issue getting leadership to change improvisational change makes continual adjustments as changes are being implemented force coercion strategy pursues change through formal authority andor the use of rewards or punishments power bases legit rewards punishment rational persuasion strategy change through empirical data and rational argument power base expertise behavior informational efforts credible shared power strategy pursues change by participation in assessing change needs power base reference behavior participative efforts share power and involve how people resist change fear of the unknown disrupted habits loss of confidence loss of control poor timing work overload loss of face lack of purpose how managers try to deal with resist educationcommunication participationinvolvement negotiationagreement manipulation coercion Ch 17 global economy resources markets and competition are worldwide in scope population issues we do things around population and the years until another billion gets added on is getting shorter global business bottom line developing and selling products and services to all 7 billion people currently on the planet figure out how to provide for the 9 billion by 2043 globalization book the process of growing interdependence among elements of the global economy globalization notes both personal and corporate to go global is to increase earnings the increased mobility of goods services labor capital and technology throughout the world or process of growing interdependence among elements of the global economy number 1 benefit global capital reasons to 00 global new markets customers profits sourcing suppliers of goods and services adam smith wealth of nations do what they re good at and trade III OIIIOIIII OIIIOIOIO 0000 I I 0 financing capital and expand operations labor low cost and skilled need skilled to make things more efficient don t have all the best minds in one country risk business naturadisasters and country technology communication and data integration responsiveness grid xaxis pressure for local responsiveness response change my product yaxispressure for global integration from low to high global strong need to be there global high global and low response invested and presented in many countries coordinating brand image globally single corporate strategy direction ex McD s need to be there change food only slightly international low response and low global don t need to be there and mostly operate from home country focus on importing and exporting strategic direction from home country low to moderate investment outside of home country ex xerox translate handbook multinational high response low global substantial investment in other countries focus on adapting products for local needs strategy more home host country direction local content rule you can be here but you need to source labor and supplies transnational high response high global we need to be everywhere and adapting where we are going company thinks of itself as a country substantial investment globally decision making RampD and marketing distributed locally competitors compete globally ex kitkat and nestle adapted taste in different countries Global Business from HOME country global sourcing an import play the coursing of materials or services from around the world for ocause ex boeino dreamliner they re international want to get back on top so they sourced from everywhere for low cost and best skilled advantages lower cost global learning access to skills and resources increased supply and expand your capacity disadvantages hidden costs supplier quality risk lost intellectual property transportational costs exporting selling local home country products outside of the home country creates local job so gov supports them 0 O I 0 II 0 advantages increase sales stabilize business gain market share expansion disadvantages logistics and service issues cultural knowledge gov tariffs and regulation increased cost w tax on imported goods licensing a form of business by which the owner licensor gives rights to a buyer licensee for specific uses of intangible or tandible property about anything can be licensed ors sellers ee buyer who pay royalty book one firm pays a fee for right to makesell another co s product licensing expo branding and licensing together ex the avengers can license any character advantages low to no cost royalty stream extend profit potential expand the brand attracts new customers disadvantages potential loss of control damage to the brand getting paid lower margins franchising a form of business by which the owner franchisor of a product service or method obtains distribution through affiliated dealers franchisees booka firm pays a fee for rights to use another company s name and operating methods franchise expo safest way to get into business for yourself but not by yourself advantages capital expansion continuing revenue stream global brand building economies of scale buying chicken for 1 store vs 50 and managerial talent development capital 1 reason for franchising in money disadvantages quality control understanding local culture legalregulation potential loss of control supply chain complexity Global business in HOST country joint venture operating in a foreign country through coownership w local partners gt regulated and help you not make mistakes advantages access to new markets leverage local talent understand culture shared risks may be only option potential cost advantage disadvantages loss of tech sharing profits imbalanced contributions conflict political risk GM and SAIC video sell cars in china w a 5050 joint venture GM goes under in 2008 and SAIC saved them and changed it to 4951 control which puts them on top join to attack india xerox and UAE successful partnership was an inspiration for long term growth used joint venture to set up services to colocate for subsidiary company A known as the parent fully or partially owns a local enterprise book local operation completely owned by a foreign firm decision are often made after foreign firms gain experience in the local sphere foreign direct investment co s coming in and buying US co advantages profit market expansion control protects technology disadvantages cultural issues legal risk political risk 0 OO insourcing the creation of domestic jobs by foreign employers outsourcing shifts local jobs to foreign locations to take advantage of lowerwage labor in other countries global supply chain a network of a firm s outsourcing suppliers and contractors can get complex and tricky ex when automakers suffered after the Japanese tsunami reshoring moves foreign production and jobs back to domestic locations importing the process of acquiring products abroad and selling them in domestic markets global strategic alliances each partner hopes to achieve through cooperation things they couldn t do alone local partner alliance may bring access to technology and skills outside partner alliance may bring new markets and customers greenfield venture establishes a foreign subsidiary by building an entirely new operation in a foreign country world trade organization WTO a global institution established to promote free trade and open markets around the world give each other most favored nation status gives a trading partner the most favorable treatment for imports and exports non tariff barriers non tax policies that governments enact to discourage imports such as quotas and import restrictions protectionism a call for tariffs and favorable treatments to protect domestic firms from foreign competition save jobs for local workers seen a lot in political campaigns NAFTA the north american free trade agreement linking canada the US and mexico in an economic alliance EU is a political and economic alliance of 28 european countries APEC asiapacific economic cooperation links 21 nations to promote free trade and investment in the pacific region SADC southern Africa development community links 14 southern african countries in trade and economic development efforts regions economies are growing and middle class is expanding I IO 0 000 O OO 00 1O globalization gap where large global firms gain disproportionately from the goal economy versus smaller firms MNC host country relationships what should ClO rioht mutual benefits shared opportunities with potential for growth income learning development what can go wrong host country complaints about MNCs excessive profits economic domination hires best local talent limited tech transfer MNC complains about host countries profit limitations overpriced resources exploitative rules failure to uphold contracts corruption involves illegal practices to further one s business interests foreign corrupt practices act makes it illegal for US firms and their representatives to engage in corrupt practices overseas prohibits bribes or excessive commissions sweatshops employ workers at very low wages for long hours and in poor working conditions child labor the full time employment of children for work otherwise done by adults currency risk possible profit loss because of fluctuating exchange rates planning issue in international business ex McDonalds make lots of sales abroad that are in foreign currency political risk possible loss bc of instability and political changes in foreign countries political risk analysis forecasts how political events may have an impact on foreign investments global area structure arranges production and sales functions into separate geographical units and puts top managers in change allows business in major areas of the world to be run by executives w special local expertise ex president on top goes to area manager north america latin america etc global product structure worldwide responsibilities to product group managers who are assisted by area specialists who work as part of the corporate staff provide expert guidance on the cultures markets of various countries president on top goes to manager product group ABC etc global managers culturally aware and informed on international affairs competent working across cultures always inquisitive informed culturally sensitive aware highly skilled O O CO IIO O 0 IO 0 11 universal facilitators of leadership success trustworthy just honesty planning positive dynamic motivating inspiring informed communicative universal inhibitors of leadership success being a loner acting uncooperative being irritable acting autocratic Ch 10 notes when you look at people in the workplace what do you see 1 a cost to reduce or 2 an asset to develop gt see them as an asset if you re a good manager professionalism behaving with internalized commitments to special standards SHRM large governing body of human resources from a trading standpoint video we know next theme people drive the change Human resource management the building and maintaining of quality workforce attracting focus on employee recruitment and selection three steps 1 assess need and define job 2 recruiting strategy and implementation set of activities designed to attract a gualified pool of job applicants 1 way is attracting from the inside we hire people we know and like like to screen people for M and cultural org fit ex nike you need to be into sports 1 personal 2 technical factors gt for recruiting in hr candidate selection and offer process in depth interviewing screening first technical and personality testing gt must be reliable and m real time or stimulated actual work gt ex typing WPM background checks assessment centers gt hiring center bring ppl to do exercises U39lPUUNLOD developing focus on employee orientation training and development and performance mgmt 1 orientation socialization gt onboarding 2 training and experience gt RIGHT experience ASTD top training subject is managerial US training spending 1715 billion avgemployee 1228 3 coaching mentoring mentoring process of assigning an early career employee to a senior manager for career guidance IO 0 C 0 0 000 O OO 12 coaching working with a manager to develop personal and business competencies in a holistic manner both can be formal or informal 4 performance mgmt maintaininalkeepinal focus career development worklife balance compensation and benefits retention and turnover and labor mgmt relations 1 compensation and benefits in line w market gt health care is huge 2 clear career path identified career planning matching individual career goal capabilities to opportunity gt 1 goals 2opportunities career development managing how a person progresses in a career gt plan for people to move up succession career path providing structure flexibility and direction for a person to achieve greater work responsibility ask what the typical path is 3 worklife balance involves balancing career demands with personal and family needs are you showing that you re a great place to work google video bus system gym spa free food day care listen human capital the economic value of people with jobrelevant abilities knowledge ideas energies and commitments economic value of employees skills and knowledge health and age issues big HRM issue 1624 in training less now 2554 classic dropping now 55 increasing gt re ection of the baby boom strategic human resource mgmt aligns human capital w organizational strategy personjob fit the match of individual skills interests and personal characteristics with the job personorganization fit the match of individual values attitudes and behavior with the org culture independent contractors hired on temporary contracts and are not part of the orgs permanent workforce no job security labor union an org that deals with employers on the workers collective behalf voice managers make it hard for unions by lockout strikebreakers injunction unions make it hard for managers by strike boycott picket O OO 0 0 OO O OO 13 labor contract a formal agreement between a union and an employer about the terms of work for union members collective bargaining the process of negotiating administering and interpreting a labor contract ch 14 team are everywhere collection of people who regularly interact to pursue common goals many tasks are beyond the capabilities of individuals alone benefits of teams more resources improved creativity improved quality increased motivation better control buy in enjoyment and full skill development all better performance if you want to win you have to work together ex lollipop challenge common team problems cultural miscommunication personality conflicts power struggles lack of focus poor follow through definition of quality maturityfree riders work stylesJampP teamwork the process of people actively working together to accomplish common goals synergy creation of a whole greater than the sum of its individual parts pools many different talents to create extraordinary results ex NBA success win more w players who have been together longer social loafing the tendency of some people to avoid responsibility by free riding in groups let team members to all the work how to handle it reward individuals for contributions small teams peer pressure make tasks more interesting formal team officially recognized and supported by the org ex departments work units divisions managers serve more than one role in groups they are supervisors network facilitators helpful participants and external coaches supervisor directs gt quotdo work and come back to mequot big circle on top of little circles facilitator coordinates not directing anymore they sit in the middle and help everyone work better in a member big circle in the middle of small circles participant works part of the work being done big circle connected in a circle to all the small circles coach assists self directed team member who is there when help is needed big circle not connected to the little circles informal groups unofficial and emerges from relationships and shared interests OO 0 OOO IIIIO O O OO O O 14 ex interest groups friendship groups and support groups CISCO crossfunctional must come together as one and expectations are higher for everyone about how we win committee small group ongoing process ex ethics committees book designated to work on a specific task on a continuing basis chairperson typically leads and handles the task agenda deal with issues like diversity quality and compensation project team task force convened for a specific purpose and disbands after completing its task defined thing ex develop a new product or redesign work flows cross functional team many different departments and put them on the same team book operates with members who come from different functional units of an org work on a specific task to break down the functional chimneys self managing team have authority to make decisions about how they share and complete their work autonomous work groups advantages better performance decreased cost and higher morale responsibilities planning scheduling training members distributing tasks meeting performance goals solving day to day problems evaluation virtual teams work together and solve problems through computer based interactions teaming w people from all over the world benefits real time global experience feel like you re in the same room develops employees importance of relationship saving on travel bring product to market faster downsides social loafing difficulty establishing good working relationships building blocks 1 thing de ned by the selection of members gt whether you re successful or not lies in recruitment inputs members abilities values personalities diversity nature of task clarity in the goal and complexity challenge but not blow out org setting resources tech structure rewards information team size of members evenodd two pizza protocol feel you whole team 46 people ile we are working as a team OOO IIO 0 O O IIO 15 team process norms cohesion roles communication decision conflict outputs we get the task done team effectiveness task performance member satisfaction viability gt feedback 3 C s of a great team member 1 character do what they say show up 2 competence do you bring skills to the game or develop them 3 consistency same person to your team all the time ready to bring it show up and they re amazing then next week they plummet employee involvement team meets on a regular basis to help achieve continuous improvement quality circle team of employees who meet periodically to discuss ways of improving work quality effective team achieves high levels of task performance membership satisfaction and future viabilitycan the team be successful again teams turn inputs into outputs team effectiveness quality of inputs process gains process losses ex right players in the right seats on the same bus going the same direction group dynamics interactions among group members both positive and negative team diversity the mix of skills experiences backgrounds and personalities of team members can affect relationships when it is present it needs to be managed right homooeneous teams easier to manage relationships have members with similar personal characteristics risky when members are too similar heterooeneous teams harder to manage have members with diverse personal characteristics can come w performance opportunities team process the way team members work together to accomplish tasks team IQ ability of a team to perform well by using talent and emotional intelligence can handle the occasional disharmony Life cycle of teams forming stage of initial orientation and interpersonal testing begin to identify with others and the team itself date face everything is good I OIIOIIO OO O OO 00 O 16 storming a stage of conflict over tasks and working as a team high emotionality start understanding one another critical zone dating get to know them can t keep dating face on norming stage of consolidation around task and operating agendas start to have success sense of leadership critical zone shared expectations dating starting to adapt and get norms performing stage of teamwork and focused task performance relationship is working mh performance comes easily informed optimism mature and well functioning total integration complex tasks unformed Optimism dating face all wonderful and amazing informed Optimism storming they re not perfect strengths and weaknesses norms a behavior rule or standard expected to be followed by team members it guides behavior when it is violated they are pressured to conform performance norm defines the effort and performance contributions expected of team members how leaders build positive team norms positive role model reinforce desired behaviors control results train and orient recruit discuss progress etc cohesiveness the degree to which members are attracted to and motivated to remain part of a team keep teams small reward introduce competition highly cohesive value their membership and try to conform to norms teams perform best the performance norm is positive and cohesiveness is high team building involves activities to gather and analyze data on a team and make changes to increase its effectiveness notes any group activity objectivegoal driven and focused on team process ex games adventure social simulation work projects alternative team training developing team members skills ie facilitation productivity tools task activities an action taken by a team member that directly contributes to the group39s performance purpose maintenance activity an action taken by a team member that supports the emotional life of the group all member shoulds share the responsibilities of this distributed leadership when any and all members contribute helpful task and maintenance activities to the team disruptive behaviors selfserving and cause problems for team effectiveness ex not participating or excessive joking OO O OO O 000 O O I 000 17 decentralized communication network channelstar structure allows all members to communicate directly with one another works well for tasks with creativity info processing and problem solving creates and interacting team all work together and share information centralized communication network communication flows only between individual members and a hub or center point wheel or chain structure routine tasks that are less demanding simply coordinate subqrouos in restricted communication network contest one another s positions and restrict their interactions with others could be set up to avoid a conflict team building involves activities to gather and analyze data on a team and make changes to increase its effectiveness notes any group activity objectivegoal driven and focused on team process decision making the process of making choices among alternative courses of action best teams don t limit themselves to just one six ways teams make decisions decision by lack of response authority rule minority rule majority rule consensus unanimity consensus reached when all parties believe they have had their say and been listened to and they agree to support the groups final decision groupthink tendency for highly cohesive teams to lose their evaluative capabilities want to avoid conflict so they just agree end up making bad decisions want to avoid conflict so they just agree symptoms of groupthink illusions of vulnerability and unanimity belief in morality stereotyping competitors as weakevil apply pressure to conform mind guarding conflict a disagreement over issues of substance andor an emotional antagonism substantive conflict involves disagreements over goals resources rewards policies procedures and job assignments emotional conflict results from feelings of anger disgust dislike fear and resentment as well as from personality clashes 5 conflict mgmt styles xaxis assertiveness ow gt high yaxis cooperation ow gt high avoidance pretends that a conflict doesn t really exist not assertive and never want to engage but they disagree low degree of assertiveness and low degree of cooperativeness I O O 0 0 00000 O 18 accommodation smoothing plays down differences and highlights similarities to reduce conflict I don t care afraid low degree of assertiveness and high degree of cooperativeness competition authoritative command uses force superior skill or domination to win a con ict gt everything is a battle and I m the best high degree of assertiveness and low degree of cooperativeness compromise occurs when each party to the conflict gives up something of value to the other work it out in the middle collaboration or problem solving involves working through conflict differences and solving problems so everyone wins clear and cooperative high degree of assertiveness and high degree of cooperativeness 5 dysfunctions of a team 1 absence of trust 2 fear of conflict 3 lack of communication 4 accountability unwillingness inattention to results ch 162 culture shock the confusion and discomfort that a person experiences when in an unfamiliar culture stages confusion small victories honeymoon irritationanger reality cultural intelligence the ability to adapt to new cultures and work well in situations of cultural diversity 00 act w sensitivity toward another culture s ways highcontext cultures rely on nonverbal and situational cues as well as spoken or written words or communication ex body language and setting low context cultures emphasize communication via the spoken or written word I say what I mean and I mean what I say monochronic cultures people tend to do one thing at a time polychronic cultures people accomplish many different things at once proxemics study of how people use interpersonal space ex we like personal space tight cultures social norms are rigid and clear and members try to conform loose cultures social norms are mixed and ambiguous and conformity varies deviations are tolerated GOO 000 19 Hofstede s cultural dimensions power distance the degree to which a society accepts unequal distribution of power uncertainty avoidance the degree to which a society tolerates risk uncertainty individualismcollectivism the degree to which a society emphasizes individuals and their self interests masculinityfemininity the degree to which a society values assertiveness and materialism time orientation the degree to which a society emphasizes shortterm or longterm goals ecological fallacy assumes that a generalized cultural value applies equally well to all members of the culture intercultural competencies skills and personal characteristics that help us be successful in crosscultural situations three pillars perception relationship and self management
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