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Navigating Cultural Differences: Essential Insights for International Management

Explore the complexities of managing across cultures, from understanding ethnocentrism to Hofstede's cross-cultural study. Learn about high versus low-context cultures, individualism versus collectivism, and monochronic versus polychronic cultures. Discover the reasons behind the high failure rate of US managers on foreign assignments and ways to enhance cultural intelligence. Gain practical insights for successful international management.

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Navigating Cultural Differences: Essential Insights for International Management

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  1. Ch 4 – International OB: Managing Across Cultures

  2. Ch. 4 Learning Objectives 2 • Define the term culture. • Define ethnocentrism, and distinguish between high-context and low-context cultures. • Distinguish between individualistic and collectivist cultures, and explain the difference between monochronic and polychronic cultures. • Specify the practical lesson from the Hofstede cross- cultural study. • Explain why US managers have a comparatively high failure rate on foreign assignments.

  3. Culture 3 • Culture - a set of beliefs and values about what is desirable and undesirable in a community of people and a set of formal or informal practices to support the values.

  4. Ethnocentrism: A Cultural Roadblock 4 • Ethnocentrismis the belief that one’s native culture is superior • How would ethnocentric policies affect employees?

  5. Cultural Intelligence 5 • Cultural intelligence The ability to interpret ambiguous cross-cultural situations accurately. • Homer Simpson: International Manager probably not culturally intelligent

  6. High vs. Low Context Cultures 6 High-Context • Rely heavily on situational cues for meaning Low-Context • Meaning is derived from the written and spoken word

  7. Contrasting High-Context & Low-Context Cultures 7

  8. Individualism vs. Collectivism 8 Individualistic • “I” and “Me” cultures • Priority given to individual freedom and choice Collectivist • “We” and “Us” cultures • Rank shared goals higher than individual desires and goals

  9. Cultural Perceptions of Time 9 Monochronic • Preference for doing one thing at a time because time is limited, precisely segmented, and schedule driven. Polychronic • Preferences for doing more than one thing at a time because time is flexible and multidimensional.

  10. Proxemics - Interpersonal Distance Zones 10 Public Social Personal Intimate 12.0 4.0 1.5 0 US Interpersonal Zones (distance in feet) Arab Asian + Latin American Cultures North American + Northern European

  11. Arabs get real close… 11

  12. Cultural Dimensions: Hofstede Study 12 Power Distance How much do people expect inequality in social institutions? Individualism- Collectivism How loosely or closely is the person socially bonded? Does the person embrace stereotypically competitive, masculine traits or nurturing, feminine traits? Masculinity- Femininity Uncertainty Avoidance How strongly does the person desire highly structured situations?

  13. Foreign Assignments 13 • Expatriates – Anyone living or working in a foreign country

  14. Why U.S. Expatriates Fail on Foreign Assignments 14 • Personal and family adjustment problems • Homesickness • Lack of: • Cultural adaptability • Patience • Flexibility and • Tolerance for other’s beliefs

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