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IMB 552 GLOBAL HUMAN RESOURCES

IMB 552 GLOBAL HUMAN RESOURCES. CULTURE AND NEGOTIATION. Goals for Merger and Acquisition Integration. Capital raised in London in the Eurodollar market by a Belgium-based corporation may finance the acquisition of machinery by a subsidiary located in Australia. A management

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IMB 552 GLOBAL HUMAN RESOURCES

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  1. IMB 552 GLOBAL HUMAN RESOURCES CULTURE AND NEGOTIATION

  2. Goals for Merger and Acquisition Integration

  3. Capital raised in London in the Eurodollar market by a Belgium-based corporation may finance the acquisition of machinery by a subsidiary located in Australia. A management team from French Renault may take over an American-built automotive complex in the Argentine. Clothing for dolls, sewn in Korea on Japanese-supplied sewing machines according to U.S. specifications, may be shipped to Northern Mexico for assembly with other components into dolls being manufactured by a U.S. firm for sale in New York and London during the Christmas season. A California-manufactured (plane)…is powered by British…engines, while a competing (aircraft)…flies on Canadian wing assemblies. A Frenchman is appointed president of (a) U.S. domiciled…corporation while an American establishes…a Swiss-based international mutual fund. “The complexities of business and associated cultures”

  4. CULTURE CULTURE IS THE CHARACTERISTIC WAY OF BEHAVING AND BELIEVING THAT A GROUP OF PEOPLE IN A COUNTRY OR REGION (OR FIRM) HAVE EVOLVED OVER TIME AND SHARE

  5. Cultural Sensitivity … may be defined as a state of heightened awareness for the values and frames of reference of the host culture.

  6. DIMENSIONS OF CULTURE • INDIVIDUAL • COUNTRY/HERTIAGE/REGION • COMPANY/FIRM

  7. LAYERS OF CULTURE SURFACE CULTURE HIDDEN CULTURE INVISIBLE CULTURE

  8. DEVELOPMENT OF CROSS-CULTURAL COMPETENCES RECONCILITATION RESOLVE DIFFERENCES INTEGRATION ADAPTION RESPECT APPRECIATE CULTURAL DIFFERENCES AWARENESS INCREASED AWARENESS OF ONE’S OWN CULTURAL PERSPECTIVE

  9. KEY RESEARCH ON COUNTRY DIMENSIONS • HOFSTEDE – 53 COUNTRIES,IBM,4 DIMENSIONS • FONS TOMPENAARS – 50 COUNTRIES, 4 DIMENSIONS • GLOBE (GLOBE LEADERSHIP AND ORGANIZATIONAL BEHAVIOR EFFECTIVENESS) – 9 DIMENSIONS http://www.geert-hofstede.com/

  10. Clusters (continued • Near Eastern. Greece, Iran, Turkey • Nordic. Denmark, Finland, Norway, Sweden • Independent. Brazil, Japan, India, Israel, South Korea

  11. Generalized national cultural characteristics • Time/relationship – attitudes towards time amd time sensitivity, relationships, behaviors, communication, and language • Power cluster – hierarchy, status attainment, physical space, importance of work • Social Interdependence – group independence, diversity, receptivity, change tolerance • Social Interaction – degree of formality, dress and appearance, food and eating habits, greetings, gift giving, physical touching

  12. RESEARCH ISSUES • GENERAL FRUSTRATIONS • LONGITUDINAL ISSUES • INCONSISTENCIES WITH COMPANIES • CULTURAL IDENTIFYING CHARACTERISTICS • EMPLOYEES SURVEYS • FOCUS OF RESEARCH (ETIC (CULTURE COMMON PROBLEMS VS EMIC CULTURE SPECIFIC ASPECTS)

  13. SOCIO-CULTURAL COMPONENTS • AESTHETICS • ATTITUDES AND BELIEFS • RELIGION • MATERIAL CULTURE • EDUCATION • LANGUAGE • SOCIETAL ORGANIZATION

  14. Diversity in Multicultural Teams Advantages Disadvantages Diversity causes a lack of cohesion Mistrust Lower interpersonal attractiveness Inaccurate stereotyping More within culture conversations Stress More counterproductive behavior Less disagreement on content Tension Miscommunications Slower speech; non-native speakers Less Accuracy Teams can become Less efficient, less effective, less productive • Diversity permits increased creativity • Wider range of perspectives • More and better ideas • Less groupthink • Forces enhanced concentration to understand others • Ideas • Perspectives • Meanings • Arguments • Teams can become • More effective • More productive

  15. EFFECTIVELY MANAGING TEAM DIVERSITY DIVERSITY CAN MAKE TEAMS EFFECTIVE WHEN: DIVERSITY RENDERS TEAMS INEFFECTIVE WHEN: Routine Convergence Differences ignored Members selected based on ethnicity Ethnocentrism Cultural dominance Individual goals No feedback (autonomy) • Innovative • Divergent • Differences are recognized • Members selected for task related abilities • Mutual respect • Equal power • Subordinate goal • External feedback

  16. Negotiations

  17. Negotiation The process of verbal and non-verbal exchanges between two or more parties with the goal of reaching a mutually satisfactory agreement

  18. Situational Characteristics Influencing Cross-Border Negotiations • Context of the negotiation • Physical arrangements • Time limits • Status differences

  19. Negotiation Tactics • Verbal and Nonverbal Tactics • Words communicate 7% of meaning • 38% Tone of Voice • 55% Facial Expression

  20. Verbal Tactics • Initial Offers • Chinese and Russians use extreme initial offers • Swedes request a price close to the one they expect • Americans seem more successful domestically when • they offer extremes • Active Listening • Questions • Feelings Commentary • Argument Dilution

  21. Average Number of Times Tactic was Used In Half-hour Negotiating Sessions

  22. Nonverbal Negotiating Behaviors

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