1-Class slides 2024 Intro to CCM

Page 1: Introduction

• Course Code: GT11303

• Title: Cross-Cultural Management

• Focus: Understanding the Global Manager's Operating Environment

• Context: Week 1 - Semester 1, 2024/2025

Page 2: Objectives of the Course

1. Identify the changing global business environment, emerging issues, and implications on management.

   • Skills developed: Knowledge & understanding; Cognitive skills

2. Conduct a critical analysis of the impact of cultural differences on global business organizations.

   • Skills developed: Problem-solving; Cognitive skills

3. Propose strategies for cross-cultural issues and defend culturally sensitive and socially responsible behavior in business.

   • Skills developed: Professionalism; Interpersonal skills

Page 3: Understanding Culture

• Definition of Culture:

  • Reflected in our choices of dress, eating habits, and behaviors in various situations.

  • Embedded in all life aspects, including business.

• Importance in business management:

  • Encounters diverse cultures, especially internationally.

Page 4: Relevance of Cross-Cultural Management

• Significance of studying cross-cultural management:

  • Different cultures interact in an international business context.

  • Success or failure of business influenced by cross-cultural literacy:

    • Understanding cultural differences is crucial for effective business practice.

  • Literacy implies knowledge or competence in a specified domain.

Page 5: Cross-Cultural Risk

• Understanding differences helps avoid cross-cultural risks:

  • Defined as cultural misunderstandings that jeopardize human values.

  • More serious in international business settings.

Page 6: The Importance of Culture in Global Business

• Necessity of studying culture:

  • Familiarity with global business conducts.

  • Diversity in global business is fundamentally based on culture.

• Effects of culture on managerial issues:

  • Influences leading, motivating, and reprimanding employees.

Page 7: Global Business Environment

• Exposure of firms to different physical and non-physical factors in foreign markets.

• Firms may need to adapt their operations according to local conditions.

• Impact of national differences on firm management and strategy.

Page 8: Assessing National Environment

• Evaluate a foreign country using PESTLE analysis:

  • Political, Economic, Social, Technological, Legal, Environmental factors.

• Importance of understanding national differences:

  • Macro factors tied to culture influence operational procedures.

Page 9: Political Systems

• Definition and significance of a country's political system:

  • Affects how groups interact and governance norms.

• Influenced by historical, economic, and cultural contexts.

• Evolution of political systems and relevance in business.

Page 10: Unique Political Systems

• Every country has a distinct political system:

  • Defines interactions between society members.

  • Evaluated by individualism vs. collectivism tendencies.

• Interdependence of political and legal systems with constant evolution.

Page 11: Legal Systems and Economic Systems

• Variability in a country's legal systems:

  • Govern rights and obligations related to transactions.

• Relationship between political/legal system and economic system:

  • Legal regulations and policies are reflective of the economic framework.

Page 12: Globalization and Culture

• Impact of globalization on trade and cultural exposure:

  • Increased accessibility to goods, services, and knowledge.

• Culture's profound influence on individual and societal behavior in business.

Page 13: Understanding Globalization

• Globalization defined as the transition towards an interdependent world economy:

  • Reduction of trade barriers affords market access.

Page 14: Characteristics Driving Globalization

• Features of globalization:

  • Easing of barriers for international movement of various resources.

  • Innovation and technological advancement, e.g., telecommunications, internet.

Page 15: Global Management Skills

• Requirements for effective global management:

  • Analytical skills to assess foreign environments for business impact.

  • Skills needed: conceptual, interpersonal, technical.

Page 16: Business Practice Adjustments

• Need for companies to adapt to market and environmental conditions.

• Managers' roles in maintaining competitiveness amid change.

Page 17: Management Processes

• Influence of culture on management functions:

  • Core management activities: Planning, Leading, Organizing, Controlling.

• Management involves coordinating diverse resources to achieve objectives.

Page 18: Cultural Awareness

• Definition: Ability to navigate and appreciate cultural diversity.

• Challenges affecting cultural awareness:

  • Subconscious biases and ethnocentric beliefs.

Page 19: Levels of Culture

• Culture in a business context exists at multiple levels:

  • National

  • Organizational

  • Professional.

Page 20: Cross-Cultural Management

• Cross-cultural studies as foundational for international business.

  • Importance of understanding national differences to avoid misunderstandings.

• Future managers must enhance cultural management skills.

Page 21: Behavior in Organizations

• Cross-cultural management seeks to analyze and improve organizational behavior across cultures.

• Notion of cultural influence on business values.

Page 22: Conclusion

• Encourage exploration and understanding of global cultural dynamics.