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Chapter 04 - International OB: Managing across Cultures
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5. See “Cultural Constraints in the Workplace: An Experiential Exercise
Utilizing Hofstede’s Dimensions” by K. Kniep Blanton and J. Barbuto, Jr. in
Journal of Managerial Education, 2005, 29(4), pp. 654-666.
6. Multi-cultural team teaching is discussed in “Bicultural Team Teaching:
Experiences From an Emerging Business School” by N. Napier, N. Hang,
N. Mai, N. Thang, and V. Tuan in Journal of Management Education,
2002, Vol. 26(4), pp. 429-448.
TOPICAL RESOURCES
1. For some context on the possible effects of ethnocentrism in the business
world see “Cosmopolitanism, Consumer Ethnocentrism, and Materialism:
An Eight-Country Study of Antecedents and Outcomes” by M. Cleveland
et al. in Journal of International Marketing, 2009, Vol. 17, pp. 116-146.
2. Measuring job satisfaction across cultural groups is discussed in
“Measurement Equivalence of the German Job Satisfaction Survey Used
in a Multinational Organization: Implications of Schwartz’s Culture Model”
by C. Liu, I. Borg, and P. Spector in Journal of Applied Psychology, 2004,
Vol. 89, pp. 1070-1082.
3. An excellent example of the effects of culture and temporality on
negotiation can be found in “The Role of Temporality in Dyadic
Negotiations: Evidence from Portugal, Turkey, and the United States” by
S. Armagan et al. in Research on Managing in Groups and Teams, 2006,
Vol. 9, pp. 115-146.
4. The ways in which collectivist and individualistic cultures interpret shame
and the impact on job performance is examined in “Culture Moderates the
Self-Regulation of Shame and Its Effects on Performance: The Case of
Salespersons in the Netherlands and the Philippines” by R. Bagozzi, W.
Verbeke, and J. Gavino, Jr. in Journal of Applied Psychology, 2003, Vol.
88, pp. 219-233.
VIDEO RESOURCES
1. The importance of understanding cultural attitudes and values when
conducting business is the focus of the video “A Cultural Passport to
International Business” (Insight Media).
2. Case studies and interviews are used to compare how U.S. and Japanese
firms prepare their employees for expatriate assignments in the video
“Managing in a Global Environment” (Insight Media).
4-25
3. The impact of culture on business practices is the topic of the film "Doing
Business Internationally" (CRM Films).
4. The impact of culture on negotiation, marketing, and management are
covered in the video “Doing Business Internationally: Cross-Cultural
Challenges” (Insight Media).
5. The CBS news program “60 Minutes” aired an interesting profile of the
culture of Denmark in its segment called “The Pursuit of Happiness” from
its June 15, 2008 episode. As of July of 2011, a link to the video was
available at:
http://www.cbsnews.com/video/watch/?id=4181996n&tag=mncol;lst;1
DISCUSSION QUESTIONS
1. Why is the study of societal culture important? How can cultural
intelligence improve a manager’s effectiveness?
For the next three questions, assume that you are going to be living and
working in a foreign country for the next three years.
2. What elements of culture will be important for you to understand to
improve the quality of your cross-cultural interactions?
3. What actions should you take to prepare for your assignment and how can
you best deal with culture shock?
4. Why might the re-entry process be difficult at the end of your foreign
assignment? What should you do to prepare for the challenges of re-entry
shock?
SUPPLEMENTAL EXERCISE 1: GIVING FEEDBACK TO INTERNATIONAL
EMPLOYEES1
APPLICATION
This exercise provides three examples of feedback given to international
employees. In each case, the employee’s responses came as a surprise to his
manager. Based on their own knowledge of diverse cultures and the material
provided in Chapter Four, ask students to explain the reaction of the international
employee. Specifically, what cultural factors contributed to cultural
miscommunication?
1 Adapted from J. Stull, “Giving Feedback to Foreign-Born Employees” Management Solutions, July 1988,
pp. 43-45.
Chapter 04 - International OB: Managing across Cultures
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* * *
SCENARIO 1: TSU PANG CHIANG Tsu Pang Chiang works as an accountant
for a large bank in San Francisco. He has been in the US for two years. He was
born in Hong Kong. One afternoon at a department meeting, Chiang’s boss tells
Chiang that he likes the way Chiang works and that he is “doing all right.” Chiang
doesn't respond outwardly to the comment and, in fact, remains aloof for a few
weeks. His boss cannot understand Chiang's behavior.
Cultural description: Hong Kong is high-context, polychronic, high power
distance, and high long-term orientation.
Solution: Chiang comes from Hong Kong where people show little or no emotion
when paid a compliment. Indeed, it is commonplace to deny that one has done
SCENARIO 2: BERNARDO CHAVEZ Bernardo Chavez is a human resource
administration trainee in a manufacturing plant in Texas. Bernardo was born in
Mexico and has worked in the US for only six months. At Bernardo's first
performance review, his manager asks him to sit down and immediately begins
to discuss Bernardo's past performance and future expectations. Bernardo
becomes defensive and from that day forward responds to his boss's comments
with an insincere smile.
Cultural description: Mexico is high-context and polychronic culture.
Solution: Chavez comes from a culture where it is appropriate to engage in
SCENARIO 3: MASOUD SHAHIDI Masoud Shahidi is a customer services
representative for a high technology firm near Boston. Originally from Tehran,
Iran, Masoud has worked in the US for two years. At his first performance
review, Masoud is told clearly by his supervisor how he can improve during the
Chapter 04 - International OB: Managing across Cultures
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next quarter, and Masoud agrees to work on these areas. Two weeks later,
Masoud is asked to sign his written performance review. Masoud becomes
irritated, complaining that he does not understand why this written document has
to go into his personal file.
Cultural description: Iran is high-context and polychronic.
Here are some guidelines that may be useful when giving feedback to diverse
cultural groups:
Use informal networks. Tell a leader from the culture involved about the
feedback and have him or her relay it to the person involved. This relieves the
discomfort of singling out the individual and allows someone with more cultural
knowledge to handle the situation.
Direct feedback to the entire work group. This will foster team unity, which is
important in many cultures.
Get feedback in return. Question employees to make sure that they understand
the message you are sending. Ask open-ended questions, as some cultures
actively avoid using the word “no.”
Use clear language and two-way communication. Employees for whom
English is a second language may miss the nuances of the discussion. Clear
words, short sentences, and checking for comprehension can help straighten out
any misunderstandings before they become problems.
Give group members a written copy of key points. This allows group
members to study it at their leisure to make sure they are comfortable with the
information. Many individuals for whom English is a second language are more
comfortable with the language in written, rather than spoken, form.
SUPPLEMENTAL LECTURETTE 1: SKILLS OF MULTICULTURAL
MANAGERS2
APPLICATION
2 Adapted from G. Beeth, “Multicultural Managers Wanted” Management Review, May 1997, Vol. 86, pp.
17-21; B. Azar, “Predicting Worker’s Success Overseas” American Psychological Association Monitor, July
Chapter 04 - International OB: Managing across Cultures
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This lecturette may be used to supplement coverage of expatriate assignments
and discusses the managerial attributes necessary to perform successfully in
foreign nations.
* * *
A multicultural manager is one who believes all cultures are equally valid, who
can cross cultural barriers with ease, and becomes wholly accepted by
foreigners. She or he enjoys learning about other cultures, and most likely was
exposed to more than one culture in childhood. When traveling abroad, the
multicultural managers readily adapts to the culture at his or her location for the
day. When that same manager is at home, he or she will meet halfway, or more,
toward the attitudes, habits and language of the foreign visitor there for an hour
or a day. However, if that visitor moves to the manager’s home country (thus
becoming an expatriate) the visitor is expected to conform to the new
surroundings. More specifically, multicultural managers should possess seven
key skills:
Global perspective. Managers must focus beyond the concerns of a single
country, and go beyond the relationship between headquarters and subsidiaries.
Rather, they must understand the worldwide business environment in which their
corporation operates.
Local responsiveness. Managers must be aware of how differences in
technologies, laws, and customs influence the way business is conducted in
different cultures.
Transition and adaptation. Managers must be able to live in different countries
and adjust to foreign cultures.
Synergistic learning. Managers must both work with and learn from individuals
from multiple cultures. They should try to create a globally integrated company
rather than a company that has integrated foreigners into the American corporate
culture.
Collaboration. Managers must be able to treat foreign coworkers as equals.
Cross-cultural interaction. Managers should be able to use their skills to deal
with managers of different nationalities.
Foreign experience. The experience gained from working in a foreign country
should be used as a tool for career development, not just for getting the job done.
To determine if students are prepared to become multicultural managers, ask
them to perform a self-assessment: Are you flexible? Can you easily adjust to
change? Are you adventurous? Are you willing to put the time and energy into
learning a new language and culture? Do you become easily frustrated by things
that are not done the way you are accustomed to having them done? Do you
Chapter 04 - International OB: Managing across Cultures
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currently work well with minorities and those from other cultures? Do you
perceive that an international assignment will have a beneficial effect on your
career? Are your spouse and family supportive of your decision?
SUPPLEMENTAL LECTURETTE 2: AN AMERICAN EXPATRIATE IN PARIS3
APPLICATION
This lecturette may be used to supplement coverage of expatriate assignments
and discusses how cultural differences between Americans and the French lead
to radically different management values.
* * *
The cultural dimensions in the Hofstede-Bond studies have been used to define
differences in value orientations affecting the work of multicultural organizations.
One relevant dimension is power distance. A high score for power distance
indicates that relationships between superiors and subordinates are relatively
unequal, with both sides accepting the clear cut differences in status and
privilege. The French rank relatively high on the power distance scale, especially
compared to Americans. This leads American supervisors to play down their
legitimate authority whereas the French may intentionally emphasize status
differences. These cultural differences fuel the stereotype that the French are
snobbish (according to Americans) and Americans are barbarians (according to
the French). In French organizations, a great deal of authority is typically held by
relatively few upper-echelon managers. This means that subordinates are very
dependent on their supervisors and must constantly consult them when making
business decisions. The strong hierarchy found in French managerial systems
may cause considerable distress to American expatriate managers who are used
to more autonomy.
The French and Americans also differ with respect to uncertainty avoidance (the
extent to which people prefer structured or unstructured situations). As a
country, France has a fairly high uncertainty avoidance score, while that of the
US is much lower. Elaborate bureaucracies and extensive social legislation
illustrate the need to avoid uncertainty. According to Hofstede, “Keeping an eye
on details is a clear sign of uncertainty avoidance.” For example, it is common in
America to fire or demote a worker whose work is unsatisfactory, with resulting
gains in efficiency expected. The need to avoid uncertainty, however, leads the
French to value long-term, stable business relationships. Managers are much
more likely to be selected on the basis of seniority. Long-term relationships are
also cultivated by staying with the same employer. Loyalty to one’s employer is
seen as a virtue.
3 Adapted from C. Gouttefarde “American Values in the French Workplace” Business Horizons, March-
April 1996, Vol. 39, pp. 60-69.
Chapter 04 - International OB: Managing across Cultures
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Another way to differentiate organizational styles is “organic” versus “systematic.”
Organic firms (characterized by the French) are viewed as a living organism.
Systematic organizations (characterized by the Americans) are seen as, ideally,
a well-run machine. This cultural difference leads Americans to describe French
firms as disorganized and irrational. Americans place emphasis on
accomplishing objectives; a “doing” orientation. In contrast, the French measure
a person’s worth by who he is rather than it what he does; a “being” orientation.
The two cultures also differ in their orientation to time, which leads to differences
in decision-making style. Monochronic Americans prefer doing one thing at a
time, reducing a complex task into a series of smaller, more manageable ones.
The polychronic French focus less on a particular task and more on people and
processes. The French manager is easily distracted, and able to drop one task
in midstream and start another.
In high-context cultures people rely heavily on nonverbal situational cues to
derive meaning when perceiving and communicating with another. What is not
said may convey more than what is said. High-context communication is more
implicit and places a greater burden on the receiver to adequately interpret the
message. In contrast, those in low-context cultures derive the primary meaning
in communication from written and spoken words. Communication is highly
verbal and explicit. The French operate in a high-context culture, while
Americans tend to prefer low-context communications.
These cultural differences between France and America result in vastly different
business assumptions which in turn lead to contrasting perceptions of what is
considered appropriate workplace behaviors. Table 1 compares these differing
assumptions and behaviors.
Table 1
AMERICAN ASSUMPTIONS AND
APPROPRIATE BEHAVIORS
FRENCH ASSUMPTIONS AND
APPROPRIATE BEHAVIORS
Middle managers should have a degree of
autonomy and be able to make decisions
regarding their own work.
Power should not be shared except with
key senior managers. Middle managers
must consult with their superiors and many
others before making a decision.
Job descriptions should exist and be used.
The same job shouldn’t be asked of more
than one person.
If a manager is of superior quality, it
doesn’t matter if he’s put in a job where he
has no experience. He’ll learn as he goes
along.
Chapter 04 - International OB: Managing across Cultures
4-31
Information should be shared to increase
the chances of making the most
appropriate decision.
Information shouldn’t be revealed
unnecessarily, as the decision process
may get out of control. Decisions are left
to the upper echelons.
Decisions should not be changed
impetuously, as planning is a costly
activity.
Making and changing decisions quickly as
the situation demands is a sign of
creativity, intelligence, and flexibility.
Superiors should allow subordinates to
handle the minute details.
The role of the senior manager is to
control decisions, including the smallest
details.
Positive and negative feedback is
motivational and vital to an employee’s
self-esteem and organizational efficiency.
It is important to respect the dignity of
others and to have them respect yours.
The appropriate method should be defined
before addressing a problem.
Rules are very important for their symbolic
value and people should be kept in their
places.
Work is most efficiently accomplished in
private without interruptions.
Good personal relationships are
necessary. This requires face-to-face
contact, not solitary confinement.
Satisfaction comes from carrying out a
project from beginning to end.
Satisfaction comes from being loyal to the
company and long tenure.
Unquestioning obedience to authority
leads to poor decisions.
Rules are there to be obeyed, although
they can be bent by superiors to fit the
circumstances.
