Week 1, MGT 557 Chapter 3 Summary
Week 1, MGT 557 Chapter 3 Summary MGT 557
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This 5 page Class Notes was uploaded by Tori Notetaker on Friday June 10, 2016. The Class Notes belongs to MGT 557 at Murray State University taught by Huang Yungong in Summer 2016. Since its upload, it has received 20 views. For similar materials see International Management in International Business at Murray State University.
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Chapter 3 Summary, MGT 557 Chapter Introduction. Cultural Quotient (CQ) – a measure of how well a person can adapt and manage effectively in culturally diverse settings. (Brief way of explaining cultural intelligence). (International Management: Managing Across Borders and Cultures, 2014) Cultural Empathy/Sensitivity – the awareness of and an honest caring about another individual’s culture. Requires the ability to understand the perspective of those living in other societies and the willingness to put oneself in another’s shoes. (International Management: Managing Across Borders and Cultures, 2014) 1. Culture and Its Effects on Organizations Culture – the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations. (International Management: Managing Across Borders and Cultures, 2014) People are born into their culture, which they learn through socialization. Cultures also change and adapt as their societies evolve through globalization and creolization, for example. Societal Culture may change and adapt to its surroundings (i.e. other countries and regions) by means of globalization and creolization. Factors such as a cultures/ society’s economy, laws, and politics also plays into its development and evolution. Creolization – when immigrants adopt some aspects of the local culture while keeping aspects of their culture of origin. (International Management: Managing Across Borders and Cultures, 2014) Organizational Culture holds variables and values much like a societal culture, however, instead of a country or region, it changes based off of an organization or company. Internationally this can cause conflict because the ties people have to their societal culture are often stronger (shown in the DaimlerChrysler Alliance failure on page 75). “Cultural difference has little effect on management until the two cultures come into contact with each other.” (International Management: Managing Across Borders and Cultures, 2014) Unless the organization moving into the foreign culture learns the ways of said culture, the effect on the relationship would be much like the fish when it was pulled out of the water in the story of the flood on page 77. The ways in which a manager can avoid being the monkey who pulls the st fish out of the floods current is to 1 learn about and become aware of his own culture and to 2 develop cultural sensitivity for other parts of the world. This can be made easier by developing a country profile for each part of the world with whom the company does business. Convergence – phenomenon of the shifting of individual management styles to become more similar to one another. (International Management: Managing Across Borders and Cultures, 2014) Self – Reference Criterion – the reference point of one’s own cultural values in which they can relate to others. (International Management: Managing Across Borders and Cultures, 2014) Parochialism – When a local expects an immigrant to assimilate seamlessly into their own country. Ethnocentrism – the attitude of those who operate from the assumption that their ways of doing things are best, no matter what. (International Management: Managing Across Borders and Cultures, 2014) Contingency Management – requires managers to adapt to the local environment and people and to manage accordingly. (International Management: Managing Across Borders and Cultures, 2014) Influences on National Culture are made up of various subcultures through which Harris and Moran have identified in eight categories such as: Kinship system, education system, economic and political systems, associations that make formal and informal groups, health system, attitudes towards recreation and leisure, and religion. 2. Cultural Value Dimensions It is understood that values are communicated through the various factors of a cultures subsystems. Project GLOBE, or Project Global Leadership and Organizational Behavior Effectiveness, has determined that there are in fact nine cultural dimensions that distinguish one society from another, and they are: assertiveness, future orientation, performance orientation, humane orientation, gender differentiation, uncertainty avoidance, power distance, institutional collectivism versus individualism, and in-group collectivism. Assertiveness, how people are expected to be tough, confrontational, and competitive with a can-do attitude. Those who fall on the low end of this spectrum typically prefer harmonious and cooperative relationships. Future Orientation, level of importance a society puts on planning and investing in the future. Countries with a high ranking of this will save for the future and spend longer in the decision making process. Performance Orientation, measures the importance of performance improvement and excellence in society and refers to whether or not people are encouraged to strive for continued improvement. These individuals will take initiative to finish tasks. Humane Orientation, measures the extent to which a society encourages and rewards people for being fair, altruistic, generous, caring, and kind. People on the low end of this spectrum give favor to more materialistic ideas and objects. (International Management: Managing Across Borders and Cultures, 2014) There are ten Cultural Clusters (South Asia, Anglo, Arab, Germanic Europe, Latin Europe, Eastern Europe, Confucian Asia, Latin America, Sub-Sahara Africa, and Nordic Europe) who share similar economies, histories, and environments. Five of Hofstede’s Value Dimensions: Power Distance, level of acceptance by a society of the unequal distribution of power in institutions. In low power distance countries, employees and managers are seen as equals, which promotes harmony and the open flow of ideas. Uncertainty Avoidance, the extent to which people in a society feel threatened by ambiguous situations. Those who share a high level of this tend to have a high sense of nationalism and strict laws. Individualism, refers to those who look after themselves and family rather than the needs of their society. Collectivism, puts and emphasis on the group or society rather than the individual. Masculinity, refers to assertiveness, materialism, and a lack of concern for others – masculine values as opposed to feminine values such as: a concern for others, relationships, and quality of life. Both ends of this spectrum focus on how closely “gender roles” are followed in a culture. Long-Term/Short-Term Orientation, refers to the (non-)acceptance of delayed gratification in a culture in the forms of material, social, and emotional needs. Cultures in the long-term spectrum work towards and invest in future goals. (International Management: Managing Across Borders and Cultures, 2014) Trompenaars’s Value Dimensions: Universalism versus Particularism, how subjective or objective one is to individual circumstances. Neutral versus Affective, the focus is on the emotional orientations of relationships. Do you view being conservative or openly expressing emotion as professional? Specific or Diffuse, the compartmentalization (or lack thereof) of work and private life. Achievement versus Ascription, Status based on personal achievement or the casting system. According to Steel and Taras, cultural changes are likely to be a result of the change in the factors of a society, such as: wealth, freedom, age, gender, education, and socio-Economic status. (International Management: Managing Across Borders and Cultures, 2014) Critical Operational Value Differences are frequent problems faced by managers around the world that consist of: conflicts from Time, Societal Changes (religion, tradition, internal vs external control factors, etc.), Material factors (from a resource standpoint), and Individualism. 3. The Internet and Culture Information Privacy – The right to control information about oneself. (International Management: Managing Across Borders and Cultures, 2014) Internet has changed culture through economic boosts, changing privacy standards (how companies observe their consumers), and advances in IT. 4. Developing Cultural Profiles “Managers can gather considerable information on cultural variables from current research, personal observation, and discussions with people,” (International Management: Managing Across Borders and Cultures, 2014). Although several subcultures will exist, a cultural profile will create a map to navigate common grounds through a foreign culture with. 5. Culture and Management Styles Around the World Saudi Arabia is primarily an Arab culture that focuses on Islam traditions and behaviors that take place in their religion, politics, social lives, and laws. This culture puts emphasis on family life and personal relationships which are established on trust and respect. Saudi Arabians avoid the admission of error, showing weakness and failing to complete a favor, which they view as shameful. Communication is indirect and Time is seen as better spent on hospitality rant than business. Chinese Family Small Businesses are people who work based off of connections and relationships (a.k.a networking) in the form of an exchange of favors or gifts which are expected to be reciprocated. These small businesses have put and emphasis on friendship, loyalty, and trust over business. Due to globalization, Chinese Small Businesses have had to adapt to be more competitive and most are no longer managed by family members.