Decision Makers Across Cultures

1. Decision Makers Across Cultures Shao Guangqing

2. Outline • Introduction • Two Types of Decision Making Processes • Steps to the Rational Decision Process • Two Basic Types of DMBs • Two Contingency DMB Frameworks • A Case: Decision-making in Japan

3. Introduction • Often people from one culture are surprised by the decisions that people from other cultures make. • Such surprises arise when people are unaware of the factors that people in another culture consider when evaluating the attractiveness of an action. • This lack of awareness can lead to decisions that undermine the cohesiveness of multi-cultural coalitions.

4. Two Types of Decision Making Processes • The programmed process • The non-programmed process

5. The programmed process • the most commonly used style • entailing making decisions based on precedent, custom, policies and procedures, and training and development. • Advantage: reducing risk and stress for decision makers because a basis for a decision can be pre-tested for efficiency • Disadvantage: is that when an organization's environment changes, the programmed bases for decision making become obsolete

6. The non-programmed process • entailing analyzing current data and information, obtained through a systematic investigation of the current environment, for the purpose of identifying and solving a problem

7. Steps to the Rational Decision Process • (1) through investigation, define the problem, • (2) identify a minimum criteria on which to base the decision, • (3) identify multiple viable choices, • (4) quantitatively evaluate each viable choice on the basis of each criterion, • (5) select the optimum choice, • (6) implement the choice.

8. 2 Basic Types of DMBs • DMB=decision-making behavior • Authoritative • involves one person deciding as to what should be done and informing their subordinates. The decision makers may consult their subordinates, however, before finalizing them. • Participative • involves asking the subordinates what should be done and how so.

9. pros and cons • The authoritative approach has the advantage that decisions can be made quickly but the subordinates may feel demoralized due to their lack of input. • Participative approaches have the advantage that subordinates are much more likely to be satisfied and their performance will benefit. The disadvantage is that sometimes the participative approach is time consuming as the decision process is slowed. • The approach that should be used relies heavily on the culture.

10. Two Contingency DMB Frameworks • There are two contingency DMB frameworks that facilitate the process for cross-cultural managers to decide which DMB will work. • the country-related cultural factors framework • the universal factors models

11. Two Contingency DMB Frameworks • The country-related cultural factors framework uses the 5 dimensions of power distance, uncertainty avoidance, individualism, masculinity (Importance of ego goals), and long-term orientation (importance of tradition). • The universal factors model posits that DMB is influenced not as much by broad cultural factors as by varying situational factors. Some of these situational factors include subordinates' work environment, individuals' motivation, individuals' maturity level, and managerial level and functions.

14. Decision-making in Japan

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