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Cross Cultural - Organizational Behaviour - Lecture Slides, Slides of Organization Behaviour

Main topics of Organizational Behavior course are: Communications, Conflict, Creativity, Cross Cultural, Decision Making, Diversity, Groups and Teams, Organization Learning, Leadership, Motivation, Organization Culture. Key points of this lecture are: Cross Cultural, Global Business, Paradox, Emerging Markets, Immigrant Labor, Global Perspective, Approaches to International Business, Geocentric, Ethnocentric, Principles of Culture

Typology: Slides

2012/2013

Uploaded on 08/31/2013

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OB in the Cross-Cultural
Context
Why are cross-cultural issues important?
Growing impact of global business
New markets
Demand for global services
Low cost manufacturing
U.S. management practices not necessarily
likely to translate to different cultures
Paradox: may be easier to adjust to a very
different culture than to a very similar culture
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OB in the Cross-Cultural

Context

 Why are cross-cultural issues important?

 Growing impact of global business

 New markets  Demand for global services  Low cost manufacturing

 U.S. management practices not necessarily

likely to translate to different cultures

 Paradox: may be easier to adjust to a very

different culture than to a very similar culture

Why International

Management?

 Important to have a global perspective

 Overseas suppliers or markets  Low cost production  Emerging markets (Eastern Europe, LDC)  E-business has no borders  Immigrant labor force even in U.S.

 Culture critical to global business, yet hardest

to understand

 Based on unspoken values and assumptions  Human behavior isn’t logical  But, human behavior is very complex

Basic Principles of Culture

 What is logical and important in one culture may seem irrational and unimportant in another  In describing cultures, people tend to stress the differences and overlook the similarities  Stereotyping may be inevitable for people who lack frequent contact with another culture  Cultures are not homogenous; differences exist due to gender, age, socioeconomic status, education  Understanding another culture is a journey, not a goal

Barriers to Cross-Cultural

Understanding

 Cultural chauvinism / corporate imperialism / ethnocentrism

 Stereotypes (positive and negative)

 The highly successful organization may find it more difficult to adapt

What Kinds of Differences

Make a Difference?

 Some specific items:

 Language

 Religion

 Business practices and etiquette

 Different laws

 Different customs

 Culture in general

Language Issues

 U.S. one of few countries where we don’t

learn a second (or a third) language

 Languages learned in school often do not

translate to business usage

 Do you try?

 Not in France, not unless you can pronounce it right!  Other countries, yes: it’s a gesture of goodwill

 But, even if the language is the same, will we

understand? (Britspeak)

World Religions

Christianity Islam Hindu Chinese Folk Buddhist Judaism Other Source:http://www.infoplease.com/

Catholic Protestant Orthodox Other

Religious Issues

 Islam:

 Ramadan fasting

 5 daily prayers (15 minutes or so), even at

work

 Modest dress for women (including head

scarf)

 Friday, not Sunday (noon prayers on

Fridays)

Different Country, Different

Customs: Dress and Address

 Dress

 “Casual Days” are a U.S. custom  Removing one’s shoes

 Addressing Other People

 Herr und Frau, not first names in Germany  Titles (Dr., Professor, “Assistant Vice President”, etc.) very important everywhere but U.S.

 Business cards essential in Latin America,

Europe, Japan

 Personal space: much smaller in Latin

America, Spain, Italy

Different Country, Different

Customs: Time

 Time

 Time fluid in Latin America, Spain, Italy  Time off work: Germany, France, Scandinavia: 6 weeks vacation, August in the country  Africa: everyone attends funerals (impact of AIDS)

 Working hours and pace

 Europe (esp. Germany) isn’t open 24/  Latin America, Middle East, Japan: take time to establish relationship before getting down to business

Perceptions of Corruption

0

2

4

6

8

10

12

Finland Canada Singapore

UK US Germany

Chile Ireland Japan^ Italy Mexico Uganda Russia Nigeria

Source: Transparency International

Higher score = less corrupt

Economic Freedom

Singapore

Ireland

US Chile UK Finland Canada Germany

Italy Japan Mexico Uganda Nigeria Russia

Nigeria 3.

Source: Wall Street Journal

Higher score = less freedom

Change in Cultures

 Hofstede’s data indicates some shift to

individualism, but no change in other

dimensions

 Disneyland phenomenon

 That is, surface indicators change, but meaning does not

 But….the case of Hong Kong

 Management values in Hong Kong intermediate between PRC and U.S.  Indication of flexibility / change?

Collectivism - Individualism

 Identification with group vs. identification as an individual  Collective cultures:  Think in terms of in-groups and out-groups  Life decisions made by group  Look after one’s in-group, no matter what  Individualistic cultures  Concern for self and immediate family  Individual privacy  Association with level of economic development