Toward Greater Global Awareness and Cross-Cultural Competence
Beware of an Ethnocentric Attitude
Comparative Management Insights
Made-in-America Management Theories Require Cultural Translation
Lessons in Leadership from the Globe Project
Staffing Foreign Positions
Why Do U.S. Expatriates Fail?
What About North American Women on Foreign Assignments?
Relying on Local Managerial Talent
Glossary international management pursuing organizational objectives in international and cross-cultural settings.
global company a multinational venture centrally managed from a specific country.
transnational company a futuristic model of a global, decentralized network with no distinct national identity.
ethnocentric attitude view that assumes the home countrys personnel and ways of doing things are best.
geocentric attitude world-oriented view that draws upon the best talent from around the globe.
culture a populations taken-for-granted assumptions, values, beliefs, and symbols, which foster patterned behavior.
high-context cultures cultures in which nonverbal and situational messages convey primary meaning.
low-context cultures cultures in which words convey primary meaning.
individualistic cultures cultures that emphasize individual rights, roles, and achievements.
collectivist cultures cultures that emphasize duty and loyalty to collective goals and achievements.
monochronic time a perception of time as a straight line broken into standard units.
polychronic time a perception of time as flexible, elastic, and multidimensional.
comparative management the study of how organizational behavior and management practices differ across cultures.
culture shock negative feelings triggered by an expectations-reality mismatch.
cross-cultural training guided experience that helps people live and work in foreign cultures.
Learning Objective Summary
Learning Objective 1: Describe the six-step internationalization process, and distinguish between a global company and a transnational company.
• The study of international management is more important than ever as the huge global economy continues to grow.
• Doing business internationally typically involves much more than importing and/or exporting goods.
• The six stages of the internationalization process are:
- Local warehousing and selling
- Local assembly and packaging
- Joint ventures
- Direct foreign investments
• The main distinction between global companies and transnational companies is the difference between reality and a futuristic vision.
- A global company does business simultaneously in many countries but pursues global strategies administered from a strong home-country headquarters.
- A transnational company is envisioned as a decentralized global network of productive units with no distinct national identity. There is growing concern about the economic and political power of these stateless enterprises as they eclipse the power and scope of their host nations.
Learning Objective 2: Explain from a cross-cultural perspective the difference between high-context and low-context cultures, and identify at least four of the GLOBE cultural dimensions.
• An ethnocentric attitude is home-country-oriented, and a serious roadblock in the global economy.
• Communication in high-context cultures such as Japan is based more on nonverbal and situational messages
than it is in low-context cultures such as the United States.
• The nine cultural dimensions identified by the GLOBE project are:
Learning Objective 3: Explain what Hofstede’s research has to say about the applicability of American management theories in foreign cultures, and summarize the leadership lessons from the GLOBE project.
• Comparative management is a new field of study concerned with how organizational behavior and management practices differ across cultures. A unique study by Geert Hofstede of 116,000 IBM employees in 40 nations classified each country by its prevailing attitude toward four cultural variables. In view of significant international differences on these cultural dimensions, Hofstede suggests that American management theory and practice be adapted to local cultures rather than imposed on them.
• According to the GLOBE researchers, the two most widely accepted leadership styles around the world are the charismatic/value-based and team-oriented styles.
• The participative and humane-oriented styles have mixed applicability.
• The self-protective style is the least acceptable across the world’s cultures.
• Global managers need a flexible repertoire of leadership styles that they use selectively
Learning Objective 4: Discuss why U.S. expatriates fail and what can be done about it, and summarize the situation of North American women on foreign assignments.
• Culture shock is a normal part of expatriate life.
• When U.S. expatriates go home early (a costly problem), it is normally due to:
_____ 10. Which of these is not one of the GLOBE project’s nine cultural dimensions?
b. Power distance
c. Future orientation
d. Religious orientation
e. In-group collectivism
_____ 11. The concept of monochronic time is best described as
Test Prepper 4.3
True or False?
_____ 1. Hofstede found American management theories to be universally applicable around the world.
_____ 2. Humane-oriented leadership was found to be the most widely applicable style by the GLOBE project researchers.
_____ 3. A self-protective leadership style is the least acceptable style, regardless of the culture, according to the GLOBE project.
_____ 4. What is the practical conclusion from Hofstede’s 40-country study?
a. Japanese management practices will likely fail in North America.
b. American management practice traces to Northern Europe.
c. Management theory and practice need to be adapted to the local culture.
d. American management theory and practices are applicable worldwide.
e. Japanese management is superior.
_____ 5. Katerina is viewed by coworkers as being compassionate, generous, considerate, and supportive. According to the GLOBE leadership styles, what type of leader is she?
_____ 6. According to the GLOBE leadership matrix, which two leadership styles have the greatest cross-cultural applicability?
a. Team-oriented and humane-oriented
b. Charismatic/value-based and team-oriented
c. Humane-oriented and self-protective
d. Self-protective and charismatic/value-based
e. Team-oriented and participative
Test Prepper 4.4
True or False? _____ 1. Mentors can help reduce culture shock for those on foreign assignments.
_____ 2. When selecting someone for a foreign assignment, it is a good idea to put the person’s entire family through an orientation.
_____ 3. North American women have enjoyed above average success on foreign assignments.
Multiple Choice _____ 4. The leading reason for the comparatively high failure rate of U.S. managers on foreign assignments is