MODULE FIVE: MANAGING CROSS-CULTURAL MANAGEMENT PRACTICES

1. MODULE FIVE: MANAGING CROSS-CULTURAL MANAGEMENT PRACTICES

2. Objectives Understand the impact of culture on management style Describe national cultural values and provide examples of how they affect management practice Compare and contrast management practices on the basis of national cultural values

3. Hofstede�s Research early 1970s IBM database on intl. employees attitude 53 cultures used factor analysis to derive four independent dimensions of national values

4. Dimensions of National Culture Individualism vs. Collectivism Large or Small Power Distance Strong or Weak Uncertainty Avoidance Masculinity vs. Femininity

5. Individualism vs. Collectivism Fundamental issue: What is the relation between the individual and his/her fellow individuals? Individualism: A preference for a loosely knit social framework in which individuals are expected to take care of themselves. Collectivism: A preference for a tightly knit social framework in which individuals look after one another and organizations protect their member�s interests.

6. Power Distance Fundamental Issue: How does society deal with the fact that people are unequal? High Power Distance: People accept inequality in power among institutions, organizations, and people. Low Power Distance: People play down inequalities in power and wealth.

7. Uncertainty Avoidance Fundamental Issue: How does society deal with the fact that time runs only one way Low Uncertainty Avoidance: Acceptance of uncertainty and tolerance of ambiguity High Uncertainty Avoidance: Intolerance for uncertainty and ambiguity and support for beliefs that promise certainty and conformity

8. Masculinity-Femininity Fundamental Issue: What is the division of roles between the sexes in society. Masculine: Societies that maximize the social sex role division; also societies that have a cultural preference for achievement, heroism, assertiveness and material success. Feminine: Societies that have relatively small social sex role divisions; societies that have a preference for modesty, caring for the weak, and quality of life.

13. Consequences for Mgt. Practice Leadership: Relevant dimensions are individualism and Power Distance Organization: The decisive dimensions are power distance and uncertainty avoidance. Motivation: Theories of Motivation are related to the Individualism-Collectivism dimension

14. COMPARISON OF MEXICAN AND AMERICAN MANAGEMENT STYLES

15. WORK/LEISURE MEXICO Works to live Leisure considered essential for fill life Money is for enjoying life U. S. Lives to work Leisure seen as reward for hard work Money often end in itself

16. DIRECTION/DELEGATION MEXICO Traditional mgrs autocratic Younger mgrs starting to del. resp. Sub. used to being assigned tasks, not authority U.S. Mgrs del resp and authority Exec. seeks resp and accepts accountability

17. THEORY vs. PRACTICE MEXICO Basically theoretical mind Practical implementation often difficult U.S. basically pragmatic mind Action-oriented, prob-solving approach

18. CONTROL MEXICO Still not fully accepted Sensitive to being �checked on� U.S. Universally accepted and practiced

19. STAFFING MEXICO Family and friends favored because of trustworthiness Promotions based on loyalty to superior U.S. Relatives usually barred Favoritism not acceptable Promotion based on performance

20. LOYALTY MEXICO Mostly loyal to superior Beginnings of self-loyalty U.S. Mainly self-loyalty Performance motivated by ambition

21. COMPETITION MEXICO Avoids personal competition Favors harmony at work U.S. Enjoys proving oneself in competitive situations

22. TRAINING AND DEVELOPMENT MEXICO Training highly theoretical Few structured programs U.S. Training concrete, specific Structured programs general

23. TIME MEXICO Relative concept Deadlines flexible U.S. Categorical imperative Deadlines and commitments are firm

24. PLANNING MEXICO Mostly short-term because of uncertain environment U.S. Mostly long-term in stable environment

25. Tip on how to deal with an American boss The kinds of people who succeed in business in the United States are goal-oriented, concerned with individual achievement, and interested in the development of their own careers. They also tend to be pragmatic, assertive, and relatively egalitarian. At the same time, they need constant feedback, evaluation, praise and rewards.

26. Summary Activities like management and organization are culturally dependent. The cosmopolitan manager will adapt his style to the local population or educate them to his.