Cross Culture Management

1. Cross Culture Management Case Studies: Fred Wagoner: US and Germany Bill Nugent: US and Saudi Arabia Tom Forrest: US and Japan

2. Fred Wagoner and Frankfurt Distributor Problem: Presentation failure led to loss of potential European distributor Theoretical Analysis:: Uncertainty Avoidance (see Hofstede Management Implications for UA) • USA : Low • Leadership styles: non directive • person oriented, flexible, informal • Management selection: education and • past job performance. • Informal/less written rules • Germany: Moderate • Leadership styles: task-oriented, detailed • evaluations, hierarchical org. structure, formal • Management selection: seniority and relevant skills • Formal more written rules and expectations on • behavior Individualism/Collectivism (see Hofstede Management Implications for IND/Coll) • USA: Individualism • Management Selection: individual traits, general skills • Germany: Collectivist • Management Selection: Group membership/school and training/occupation Take-Away: American organizations need to train employees that informal styles and easy entry and exit among out-groups is not the norm across the world.

3. Bill Nugent and Saudi Government Official Problem: Bill is frustrated with the business practices of Saudi counterpart Theoretical Analysis:: Time: Sequential vs. Synchronous • USA : Sequential • Linear based view of time and show preference for following plans • May feel insulted when meetings digress to other points than business at hand • Saudi Arabia: Synchronous • Tend to more than one activity at a time • Schedules are subordinate to relationships • Normal to meet and greet visitors that come into office • Cultures set out objectives to accomplish but leave • open timing Individualism/Collectivism (see Hofstede Management Implications for IND/Coll) • Saudi Arabia: Collectivist • Extensive dialogue needed with out-group members to determine if suitable partner, ask in-group on suitability of out-group member • USA: Individualism • Aggressive in achieving strategies and relationships based on economic outcomes Take-Aways: Assumptions based on use of time can often lead to misunderstandings and accusations of bad manners and disinterest. Time must be taken in collectivist cultures to display ability to be trusted and enter the in-group

4. Tom Forrest and Japanese Electronic Firm Problem: Termination of JV discussions as a result of meeting with retired president Theoretical Analysis:: Achievment vs. Ascription • USA : Achievement • Manager chosen for education or previous accomplishments • Given power to make decisions for company • Japan: Ascription • Manager chosen often on seniority or contacts with • Powerful stakeholders • Age is a very important indicator for wisdom • Emphasis on following chain of command Uncertainty Avoidance • Japan: High UA • Loyalty to seniority of upmost importance • Competition is avoided internally especially with senior figure • USA: Low UA • people competitive, defend ideas, pursue individual interest and not norms of group Take-Aways: A collectivist, high UA culture will need to resort to group consensus within a hierarchical framework, at the top the final decision maker that is not questioned (respect senior figures because they are senior not solely on their accomplishments)