Hofstede has identified and researched four major dimensions of culture: power distance, uncertainty avoidance, individualism, and masculinity.. - Power distance: Less powerful members a
Trang 1Chapter 4
1 The term “culture” Is culture one thing or are there many dimensions to culture?
Culture is acquired knowledge that people use to interpret experience and generate social behavior This knowledge forms values, creates attitudes, and influences behavior
There are many dimensions of cultural diversity, including centralized vs decentralized decision making, safety vs risk, individual vs group rewards, informal vs formal procedures, high vs low organizational loyalty, cooperation vs com-petition, short-term vs long-term horizons, and stability
vs innovation
(*Not required*)
Most scholars of culture would agree on the following characteristics of culture:
1) Learned Culture is not inherited or biologically based; it is acquired by learning and experience
2) Shared People as members of a group, organization, or society share culture; it is not specific to single individuals
3) Transgenerational Culture is cumulative, passed down from one generation to the next 4) Symbolic Culture is based on the human capacity to symbolize or use one thing to represent another
5) Patterned Culture has structure and is integrated; a change in one part will bring changes in another
6) Adaptive Culture is based on the human capacity to change or adapt, as opposed to the more genetically driven adaptive process of animals
2 Hofstede's Cultural Dimensions?
Hofstede has identified and researched four major dimensions of culture: power distance, uncertainty avoidance, individualism, and masculinity Each will affect a country’s political and social system The integration of these factors into two-dimensional figures can illustrate the complexity of culture’s effect on behavior
- Power distance: Less powerful members accept that power is distributed unequally
o High power distance countries: people blindly obey superiors; centralized, tall
structures (e.g., Mexico, South Korea, India)
o Low power distance countries: flatter, decentralized structures, smaller ratio of
supervisor to employee (e.g., Austria, Finland, Ireland)
- Uncertainty avoidance: people feel threatened by ambiguous situations; create
beliefs/institutions to avoid such situations
o High uncertainty avoidance countries: high need for security, strong belief in
experts and their knowledge; structure organizational activities, more written rules, less managerial risk taking (e.g., Germany, Japan, Spain)
o Low uncertainty avoidance countries: people more willing to accept risks of the
unknown, less structured organizational activities, fewer written rules, more
Trang 2managerial risk taking, higher employee turnover, more ambitious employees (e.g., Denmark and Great Britain)
- Individualism: People look after selves and immediate family only
o High individualism countries: wealthier, protestant work ethic, greater individual
initiative, promotions based on market value (e.g., U.S., Canada, Sweden)
o High collectivism countries: poorer, less support of Protestant work ethic, less
individual initiative, promotions based on seniority (e.g., Indonesia, Pakistan)
- Masculinity: dominant social values are success, money, and things
o High masculine countries: stress earnings, recognition, advancement, challenge,
wealth; high job stress (e.g., Germanic countries)
o High feminine countries: emphasize caring for others and quality of life;
cooperation, friendly atmosphere., employment security, group decision making; low job stress (e.g., Norway)
3 Discuss the notions of individualism and communitarianism as given by
Trompenaars
- Individualism: individualism refers to people regarding themselves as individuals
o Countries with high individualism: stress personal and individual matters; assume great personal responsibility (e.g., Canada, Thailand, U.S., Japan)
- Communitarianism: communitarianism refers to people regarding themselves as part of a group
o Value group-related issues; committee decisions; joint responsibility (e.g., Malaysia, Korea)
(There are major differences between people in individualism societies and those in high-communitarianism societies The former stress personal and individual matters; the latter value group-related issues Negotiations in cultures with high individualism typically are made on the spot
by a representative, people ideally achieve things alone, and they assume a great deal of personal responsibility In cultures with high communitarianism, decisions typically are referred to committees, people ideally achieve things in groups, and they jointly assume responsibility
Trompenaars recommends that when people from cultures with high individualism deal with those from communitarianistic cultures, they should have patience for the time taken to consent and to consult, and they should aim to build lasting relationships When people from cultures with high communitarianism deal with those from individualistic cultures, they should be prepared to make quick decisions and commit their organization to these decisions.)
4 The difference between an achievement culture and an ascription culture How does
an understanding of these differences help an international manager be effective in dealing with clients outside his or her own culture?
An achievement culture is one in which people are given status based on how well they perform their functions An ascription culture is one in which status is attributed based on who or what a
person is (ascription: sự gán, quy, đổ tại)
- Achievement cultures give high status to high achievers, such as the company’s number-one
salesperson or the medical researcher who has found a cure for a rare form of bone cancer
- Ascription cultures accord status based on age, gender, or social connections
Trang 3Trompenaars recommends that when individuals from achievement cultures do business in ascription cultures, they should make sure that their group has older, senior, and formal position holders who can impress the other side, and they should respect the status and influence of their counterparts in the other group Conversely, he recommends that when individuals from ascription cultures do business
in achievement cultures, they should make sure that their group has sufficient data, technical advisers, and knowledge-able people to convince the other group that they are proficient, and they should respect the knowledge and information of their counterparts on the other team
5 What is GLOBE? Discuss its cultural dimensions
GLOBE: Global Leadership and Organizational Behavior Effectiveness
A multicountry study and evaluation of cultural attributes and leadership behaviors among more than 17,000 managers from 951 organizations in 62 countries
The GLOBE project identified nine cultural dimensions:
1) Uncertainty avoidance is defined as the extent to which members of an organization or
society strive to avoid uncertainty by reliance on social norms, rituals, and bureaucratic practices to alleviate the unpredictability of future events
2) Power distance is defined as the degree to which members of an organization or society
expect and agree that power should be unequally shared
3) Collectivism I: Societal collectivism refers to the degree to which organizational and societal
institutional practices encourage and reward collective distribution of resources and collective action
4) Collectivism II: In-group collectivism refers to the degree to which individuals express pride,
loyalty, and cohesiveness in their organizations or families
5) Gender egalitarianism (chủ nghĩa quân bình giới tính) is defined as the extent to which an
organization or a society minimizes gender role differences and gender discrimination
6) Assertiveness is defined as the degree to which individuals in organizations or societies are
assertive, confrontational, and aggressive in social relationships
7) Future orientation is defined as the degree to which individuals in organizations or societies
engage in future-oriented behaviors such as planning, investing in the future, and delaying gratification
8) Performance orientation refers to the extent to which an organization or society encourages
and rewards group members for performance improvement and excellence
9) Humane orientation is defined as the degree to which individuals in organizations or
societies encourage and reward individuals for being fair, altruistic, friendly, generous, caring, and kind to others
Chapter 7
1 Definition of communication The key to effective communication
Communication is the process of transferring meanings from sender to receiver
A number of steps can be taken to improve communication effectiveness in the international arena
- Improve feedback systems
Trang 4Feedback is particularly important between parent companies and their affiliates There are two basic types of feedback systems: personal (e.g., face-to-face meetings, telephone conversations, and personalized e-mail) and impersonal (e.g., reports, budgets, and plans)
- Provide language training
Besides improving feedback systems, another way to make communication more effective in the international arena is through language training Many host-country managers cannot communicate well with their counterparts at headquarters Because English has become the international language
of business, those who are not native speakers of English should learn the language well enough so that face-to-face and telephone conversations and e-mail are possible
- Provide cultural training
It is very difficult to communicate effectively with someone from another culture unless at least one party has some understanding of the other’s culture Otherwise, communication likely will break down This is particularly important for multinational companies that have operations throughout the world
- Increase flexibility and cooperation
2 The difference between downward communication and upward communication The
primary purpose of each?
- Downward Communication
o Transmission of information from manager to subordinate
o Primary purpose of manager-initiated communication is to convey orders/information
o Managers use this channel for instructions and performance feedback
o Channel facilitates flow of information to those who need it for operational purposes
- Upward Communication
o From subordinate to superior
o Purposes: provide feedback, ask questions, obtain assistance
3 The impact of culture on communication?
Another major barrier to communication is culture Culture can affect communication in a number of ways, and one way is through the impact of cultural values Cultural differences can cause misinterpretations both in how others see expatriate managers and in how the latter see themselves
- Cultural value:
One expert on Middle Eastern countries notes that people there do not relate to and communicate with each other in a loose, general way as do those in the United States Relationships are more intense and binding in the Middle East, and a wide variety of work-related values influence what people in the Middle East will and will not do
These types of values indirectly, and in many cases directly, affect communication between people from different cultures For example, one would communicate differently with a “rich college student” from the United States than with one from Saudi Arabia Similarly, when negotiating with managers from other cultures, knowing the way to handle the deal requires an understanding of cultural values
Trang 5- Misinterpretation
Cultural differences can cause misinterpretations both in how others see expatriate managers and in how the latter see themselves
For example, U.S managers doing business in Austria often misinterpret the fact that local businesspeople always address them in formal terms They may view this as meaning that they are not friends or are not liked, but in fact, this formal behavior is the way that Austrians always conduct business The informal, first-name approach used in the United States is not the style of the Austrians
4 Negotiation: definition and basic steps in the negotiation process
Negotiation: Process of bargaining with one or more parties for the purpose of arriving at solution
acceptable to all
Two types of negotiation:
- Distributive: when two parties with opposing goals compete over set value
- Integrative: when two groups integrate interests, create value, invest in the agreement (win-win scenario)
Steps of the Negotiation Process:
- Planning
- Interpersonal relationship building
- Exchange of task related information
- Persuasion
- Agreement
5 The variety of tactics used in international negotiating
- Location
o If the matter is very important, most businesses will choose a neutral site -> benefit:
Each party has limited access to its home office for receiving a great deal of negotiating information and advice and thus gaining an advantage on the other
The cost of staying at the site often is quite high, so both sides have an incentive to conclude their negotiations as quickly as possible
Most negotiators do not like to return home with nothing to show for their efforts, so they are motivated to reach some type of agreement
- Time limits
o Time limits are an important negotiation tactic when one party is under a time constraint This is particularly true when this party has agreed to meet at the home site
of the other party
o Time limits can be used tactically even if the negotiators meet at a neutral site
- Buyer-seller relations
- Bargaining behaviors
o Use of extreme behaviors
o Promises, threats and other behaviors
o Nonverbal behaviors
Trang 6Chapter 10
1 The meaning of the term "political risk"? In general, how do MNCs analyze this
risk?
Political risk the unanticipated likelihood that an MNC’s foreign investment will be constrained by a
host government’s policies
In general, MNCs analyze this risk in two ways:
- Macro political risk analysis, which reviews major political decisions that are likely to
affect all enterprises in the country Macro risk factors:
o Freezing the movement of assets out of the host country
o Placing limits on the remittance of profits or capital
o Devaluing the currency
o Refusing to abide by the contractual terms of agreements previously signed with MNC
o Industrial piracy (counterfeiters)
o Political turmoil
o Government corruption
- Micro political risk analysis, which is directed toward government policies and actions that
influence selected sectors of the economy or specific foreign businesses in the country Micro risk factors:
o Some MNCs are treated differently than others
o Industry regulation
o Taxes on specific types of business activity
o Restrictive local laws
o Impact of WTO and EU regulations on American MNCs
o Government policies that promote exports and discourage imports
2 Discuss an expropriation risk
Expropriation: the seizure of businesses by a host country with little, if any, compensation to owners
Truất hữu page 344
3 Explain the integrative, protective and defensive techniques MNCs use to respond to
political risks
- Integrative techniques are designed to help the overseas operation become part of the host
country’s infrastructure The objective is to be perceived as “less foreign” and thus unlikely to
be the target of government action Some of the most integrative techniques include
o (1) developing good relations with the host government and other local political groups;
o (2) producing as much of the product locally as possible with the use of in-country suppliers and subcontractors, thus making it a “domestic” product;
o (3) creating joint ventures and hiring local people to manage and run the operation;
o (4) doing as much local research and development as possible;
o (5) developing effective labor-management relations
- Protective and defensive techniques are designed to discourage the host government from
interfering in operations, mainly by avoiding complex ties to the host country’s economy In
Trang 7contrast to the integrative techniques, these actually encourage non-integration of the enterprise in the local environment Examples include:
o (1) doing as little local manufacturing as possible and conducting all research and development outside the country;
o (2) limiting the responsibility of local personnel and hiring only those who are vital to the operation;
o (3) raising capital from local banks and the host government as well as outside sources;
o (4) Diversifying production of the product among a number of countries
4 The advantages of international strategic alliances
International strategic alliances can significantly improve the success of MNC entry and operation, especially in emerging economies It facilitates rapid market entry by allowing firms to share costs and risks, combine product and market complementarities, and reduce the time to enter the new market, like some highly regulated industries such as banking, telecommunications, and health care Moreover, international strategic alliances also help cope with emerging markets environments characterized by arbitrary and unpredictable corruption
5 The role of host governments in alliances (p.353)
In sum, host governments have a substantial role in the terms under which alliances are initially formed, the way in which they are managed, and even the terms of their dissolution
Host governments are active in mandating/permitting that investors take on partners, and these mandates/permissions/authorizations can pose managerial and operational challenges for MNCs Many host governments require investors to share ownership of their subsidiaries with local partners,
or state-owned or state-controlled partners in some cases These mandates can include specific requirements that investors select local state-owned firms or that investors form joint ventures to meet local regulatory requirements where restrictions or local-content rules apply
And even when alliances are dissolved, host governments can have a role In particular, the host government of a partner may be unwilling to permit the alliance to terminate It could object to the termination in an overt way, such as not permitting a foreign partner to sell its interest in the alliance
Chapter 11
1 The main factors that help to influence whether decision-making will be centralized
or decentralized
Encourage Centralization Encourage Decentralization
Relatively high importance to MNC Relatively low importance to MNC
Highly competitive environment Stable environment
Strong volume-to-unit-cost relationship Weak volume-to-unit-cost relationship
High degree of technology Moderate to low degree of technology
Strong importance attached to brand name, patent Little importance attached to brand name, patent
Trang 8rights, etc rights, etc
Low level of product diversification High level of product diversification
Homogeneous product lines Heterogeneous product lines
Small geographic distance between home office
and subsidiary
Large geographic distance between home office and subsidiary
High interdependence between the units Low interdependence between the units
Fewer highly competent managers in host
country
More highly competent managers in host country Much experience in international business Little experience in international business
2 The decision-making philosophies and practices of the French and Danish managers
(p.367)
French and Danish managers do not approach the decision-making process in the same manner
The French managers tend to spend more time on searching for and evaluating alternatives,
exhibiting rationality and intelligence in each option While the French approach each opportunity with a sense of creativity and logic, they tend to become quite emotionally charged rather quickly if
challenged Middle managers report to higher-level managers who ultimately make the final decision Therefore, the individualistic nature of the French creates an environment in which middle managers compete for the recognition and praise of the upper management Furthermore,
middle-management implementation of ideas tends to be lacking since that stage is often seen as
boring, practical work which lacks the prestige managers strive to achieve Control is quite high in
the French firms at every level, so where implementation fails, control will compensate
Danish managers tend to emphasize different stages in the decision-making process They do not spend as much time searching or analyzing alternatives to optimize production but instead choose the option that can be started and implemented quickly and still bring about the relative desired results They are less emotionally responsive and tend to take a straightforward approach They
do not emphasize control in operations, since it tends to be a sign that management lacks confidence
in the areas that “require” high control The cooperative as opposed to individualistic emphasis in Danish corporations, coupled with a results-oriented environment breeds, a situation in which decisions are made quickly and middle managers are given autonomy
3 The relevance of TQM in decision making and controlling processes
Total Quality Management (TQM)
trong manufacturing
nó sẽ sử dụng các interfunctional teams -> together develop new products
(case: nói về bọn Japan still lead so với US trong automobile industry)
nó hay cho employees power -> create ideas + make decisions luôn
thứ 2 là Reward + recognition
meaning: increase in pays + benefits
cái này khác nhau ở các nước về cách đánh giá
Trang 9và bọn US thường đánh giá individual recognition bằng workers
trong khi bọn Jap thì lại là group rewards phổ biến hơn vì ko muốn đơn thương độc mã nhận phần thưởng
cái cuối cùng là nói về KAIZEN (cái tiến liên tục)
4 The differences between direct controls and indirect controls? Provide an example
of each type of control for the management of a MNC
Direct controls involve the use of face-to-face or personal meetings to monitor operations
Indirect controls involve the use of reports and other written forms of communication to control
operations
5 The relevance of the various performance measures that are sued for control
purposes