Global Management Midterm 2 Marv Helgeson Rutgers

Culture

The acquired knowledge people use to interpret experience and generate social behavior; the 'hidden rulebook' of a society.

Six Characteristics of Culture

Learned, Shared, Transgenerational, Symbolic, Patterned, and Adaptive

Characteristic: Learned

Culture is acquired by learning and experience; it is not innate.

Characteristic: Shared

People share culture; it is not specific to single individuals.

Characteristic: Transgenerational

Culture is passed down from one generation to the next.

Characteristic: Symbolic

Culture is based on the human capacity to symbolize.

Characteristic: Patterned

Culture is integrated; a change in one part affects other parts.

Characteristic: Adaptive

Culture is based on the human capacity to change or adapt.

Iceberg Model of Culture (Above Water)

Explicit, visible parts of culture, such as food, music, language, and dress.

Iceberg Model of Culture (Below Water)

Implicit, invisible, and high-impact parts of culture, such as values, assumptions, body language, and notions of 'self'.

Hofstede's 6 Dimensions of Culture

Power Distance, Uncertainty Avoidance, Individualism/Collectivism, Masculinity/Femininity, Time Orientation, Indulgence/Restraint.

Power Distance (Hofstede)

he extent to which a society accepts that power is distributed unequally.

Uncertainty Avoidance (Hofstede)

The extent to which a society feels threatened by ambiguous situations and relies on rules to reduce uncertainty.

Individualism vs. Collectivism (Hofstede)

The degree to which people in a society are integrated into groups.

Societies emphasize 'I' and personal achievement vs. societies that emphasize 'we' and group loyalty.

Masculinity vs. Femininity (Hofstede)

Represents a preference for achievement, heroism, assertiveness, and material rewards (competition) vs. represents a preference for cooperation, modesty, caring for the weak, and quality of life.

Long-Term vs. Short-Term Orientation (Hofstede)

The extent to which a society values virtues oriented towards future rewards (perseverance, thrift) versus virtues related to the past and present (respect for tradition, social obligations)

Indulgence vs. Restraint (Hofstede)

Societies allow relatively free gratification of basic human drives related to enjoying life vs. societies suppress gratification of needs and regulate it by means of strict social norms.

Universalism vs. Particularism (Trompenaars)

Emphasis on rules, laws, and general principles vs. emphasis on relationships and unique circumstances.

Achievement vs. Ascription (Trompenaars)

Status and respect are earned based on performance vs. status given based on age, family, or social connections.

Specific vs. Diffuse (Trompenaars)

Work and private life are kept separate vs. work and private life overlap and blend.

GLOBE Project's Two Measures

Cultural Practices (The 'Is') and Cultural Values (The 'Ought') .

GLOBE: Cultural Practices (The 'Is')

How a society actually is in its daily actions.

GLOBE: Cultural Values (The 'Ought')

What a society believes it should be; its aspirations.

Ethnocentric Predisposition (EPRG)

Values of the parent company (home country) guide all strategic decisions.

Polycentric Predisposition (EPRG)

Strategic decisions are tailored to suit the cultures of the host countries; subsidiaries are independent.

Regiocentric Predisposition (EPRG)

The firm blends its interests with those of its subsidiaries on a regional basis (e.g., a North American strategy).

Geocentric Predisposition (EPRG)

The company uses a global systems approach, integrating all cultures; the most complex, 'ideal' state.

Parochialism

The tendency to view the world only through one's own eyes and perspectives.

Simplification

The process of exhibiting the same orientation or management approach toward different cultural groups.

Guanxi

The Chinese cultural concept of 'good connections' or 'relationships,' often resembling nepotism, which is critical for business.

Management in France (Hierarchy)

Organizations are highly centralized and hierarchical; top managers have far more authority than their U.S. counterparts

Management in Arab Countries (Time)

Time is viewed differently, with less concern for missed meetings as they believe destiny depends on a supreme being, not individual behavior.

Management in Brazil (Communication)

Physical contact (touching an arm or elbow) is an acceptable and common form of communication; time is viewed in a relaxed manner .

Organizational Culture (Definition)

Shared values and beliefs that help members understand their roles and the norms within a specific company.

National vs. Organizational Culture

Culture is deep-rooted and strongly shapes workplace behavior; it is very difficult for an organizational culture to override it .

Family Culture (Trompenaars)

Organizational culture that is hierarchical and person-oriented, led by a 'caring parent' leader.

Eiffel Tower Culture (Trompenaars)

Organizational culture that is hierarchical and task-oriented, with formal, well-defined roles; impersonal and efficient.

Guided Missile Culture (Trompenaars)

Organizational culture that is equity-based and task-oriented, focusing on project teams where all members are treated as equals.

Incubator Culture (Trompenaars)

Organizational culture that is equity-based and person-oriented; the organization exists to help individuals achieve self-fulfillment.

Advantages of Diversity

Generates more creative ideas, avoids 'groupthink', and provides a better understanding of diverse customers.

Problems with Diversity

Can create mistrust, lead to stereotypes, and cause miscommunication.

High-Context Culture

Messages are indirect, and meaning is found in the context and nonverbal cues (e.g., Japan).

Low-Context Culture

Messages are direct, clear, and 'spelled out' with words (e.g., Germany).

Famous Pepsi Slogan Fail (Perception Barrier)

'Come alive with Pepsi' was translated in Taiwan as 'Pepsi brings your ancestors back from the grave'.

Proxemics

The study of personal space; norms for physical distance vary by culture (e.g., Latin Americans stand closer, East Asians stand farther apart).

Distributive Negotiation

A 'win-lose' approach where negotiators see the 'pie' as fixed; common in the U.S. and Germany. Focuses on the transaction.

Integrative Negotiation

A 'win-win' approach that seeks to 'expand the pie' by finding mutual gains; common in Japan and China. Focuses on the relationship.

Western Negotiation Tactics

Using deadlines to create urgency, preferring neutral sites, and finding pressure tactics acceptable.

Relationship-Focused Negotiation Tactics

Rushing signals disrespect, meeting at their office shows respect, and pressure tactics can permanently damage the relationship.

3-Phase Negotiation Framework

1. PREPARE (research their style)

2. ADAPT (invest time in trust-building) 

3. BRIDGE (make the process itself negotiable)

Walmart in Germany: Core Problem

An ethnocentric approach; imposing its strong American organizational culture, which clashed with German local customs.

Walmart in Germany: 'Forced Smiling' Policy

Male employees ordered to smile at customers were seen as 'flirtatious' by male German shoppers .

Walmart in Germany: 'Grocery Bagging' Policy

German shoppers did not like strangers (employees) handling their groceries at checkout.

Walmart in Germany: Code of Ethics Clash

A ban on supervisor-employee relationships and encouraging reporting was seen as a way to 'rat out' co-workers.

Walmart in Germany: Labor Relations Clash

Walmart was unwilling to adapt to or listen to German labor practices like workers' councils and co-determination.

Hong Kong Disneyland: Cultural Misstep (Food)

The park initially served shark fin soup, a local favorite, which angered environmentalists and had to be removed from the menu.

Hong Kong Disneyland: Cultural Misstep (Scheduling)

The park failed to plan for massive crowds during Chinese New Year, forcing them to turn away ticketed guests and causing outrage.

Hong Kong Disneyland: Performance

Underperformed; criticized for being too small, missed attendance goals, and reported 7 consecutive years of net losses by 2020.

Shanghai Disneyland: Performance

A near 'instant success'; hosted 11 million guests in its first full year and broke even financially.

Cannibalization (Disney Case)

The concern that the new, larger Shanghai park would 'eat' the potential revenue and visitors from the Hong Kong park.

Values in Transition (Ch. 4 Example)

Japanese managers working in the U.S. began to favor merit-based pay over seniority and were more open to questioning a boss, showing that values can adapt.

Similarities Across Cultures (Ch. 5 Example)

Studies found that American management practices like OB modification worked in a Russian factory, and that good communication and positive climate boosted employee commitment in both the U.S. and Korea.

Dimensions of Corporate Culture: Motivation

Are we motivated by 'Activities' (striving for accuracy, 'get it right') or 'Outputs' (being pioneers, 'go for it')?

Dimensions of Corporate Culture: Relationship

Is the focus on 'Job' (demands of the job come before the person) or 'Person' (needs of the individual come before the job)?

Dimensions of Corporate Culture: Identity

Is identity tied to 'Corporate' (upholding the company's expectations) or 'Professional' (upholding the aims of one's profession)?

International Corporation Evolution: Phase I

Domestic Corporations: Ethnocentric perspective, product/service orientation, no exports.

International Corporation Evolution: Phase II

International Corporations: Polycentric perspective, market orientation, growing exports.

International Corporation Evolution: Phase III

Multinational Corporations: Multinational perspective, price orientation, large/saturated exports.

International Corporation Evolution: Phase IV

Global Corporations: Global/Multicentric perspective, strategy orientation, significant imports & exports

Verbal Style: Elaborate

Involves lots of expressive talk and rich language.

Verbal Style: Exacting

Involves just enough talk—clear and precise, but not wordy.

Verbal Style: Succinct 

Involves very brief speech; values silence and says little.

Verbal Style: Contextual vs. Personal

Focusing on the status/role of the speaker vs. focusing on the individual person.

Verbal Style: Affective vs. Instrumental

Emotional, listener-focused communication vs. goal-focused, speaker-driven communication

Downward Communication

Information flows from managers to employees (e.g., instructions, goals, feedback).

Upward Communication

Information flows from employees to managers (e.g., feedback, questions, suggestions).

Biggest Language Barrier in Remote Teams

Poor writing and email clarity are often bigger barriers than poor spoken English.