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Ch9

Lecture learning objectives

Portray mechanisms for cultural change

Overview the reasons anthropologists focus on how change happens

Introduce strategies for embedding a globally-oriented workforce

Describe how to choose employees who are culturally agile for global roles

Cultural transformation & global leadership

Cultural transformation

Ervin (2015) frames cultural transformation in the context of globalisation & uses sociocultural theories of change to explain:

development, communication, social movements & innovation

Cultural change in organisations refers to enacting a “cohesive pattern of change…” (Briody et al., 2010, 8)

result from external or internal forces that may or may not be anticipated & planned for

Cultural change in business climate

Connections through:

Selling products & services

Being responsible for employee livelihoods

Interacting w/community outreach

Improvements or breakdowns in this interdependent structure that could affect quality, cost, timing or other factors

a stimulus for organisational transformation

CULTURAL TRANSFORMATION PROCESS

Address change

At intersection of new & old

Conduct analysis

Research cultural ideals/values of organisations

Employee expectations & actions/behaviours

Run intervention

Brings resistance or support

Compare before & after

Elements of planned change

Features

Core idea

Culture

Time

Quality network

Cognitive whole – artifacts, beliefs, values & assumptions

Sequential cycle – PDCA (plan-do-check-act)

Attribute Examples

Researcher perspectives on organisational change

Interpretations of change may not explicitly relate to culture, yet:

Culture is perceived as an important part of organisations

Parallels leadership, strategy & quality

Culture as a variable can be:

Controlled, measured & manipulated

Cultural theories apply to organisations

e.g. masculinity-femininity, individualism-collectivism

Anthropological approach to change

Studies of cultural change may be perceived using these lenses:

Holistic –system w/parts of interrelationships

Ethnocentric – one’s culture is better than anothers

Cultural relativistic – any cultural dimension must be understood in its own context instead of the observer’s

Emic –an insider’s cultural perceptions, beliefs, categories & assumptions

Origins of change

Invention – creation or discovery of a new process, item or method

Culture loss – when languages, history, philosophy or ecology disappears

Diffusion –borrowing or disseminating a practice, product or process for adaptation

Acculturation – diffusion by repeated & sustained contact between at least 2 groups

(Berry, 1980)

Initial transfer of info

Conflict of values

Inevitable adaptation of cultural trait(s)

Acculturation

Frequently this concept is tied to organisational change

Most businesses adjust & evolve

Cultural anthropologists use different approaches to document planned organisational change:

Grid & group model – 4 worldviews or cultural types in which an individual’s position fits into society (Philip & McKeown, 2004)

From fatalistic and hierarchical to entrepreneurial and team-based supported by a hierarchy

Planned cultural transformation

Cultural adaptiveness – when a company understands that it must adapt its view to address external issues

Cultural responsiveness – ability of a company to maintain an appropriate pace & response to target the desired transformation

Together, they lead to cultural problem solving

Process

Recognise the importance & necessity of change

Identify the direction

Discern the focus (conditions & processes)

Implement the process

Expose obstacles that could derail change

Set in motion enablers of support

Evaluate effectiveness

Celebrate success or relaunch

(Briody et al., 2010)

Obstacles to cultural change

Learning a new culture

Ethnocentrism

Cross-cultural conflict

Resistance to change

Cultural dilemmas

Cultural contradictions

Cultural drift

(Briody et al., 2010)

Bridge model of cultural transformation

(Briody et al., 2010)

Anthropological approach differs from traditional business model

This approach distinguishes from planned organizational change by focusing on:

Specific areas to target – corporate environment, workforce, relationships & work practices

Implementation as enablers are triggered to offset obstacles

Group involvement – everyone shares responsibility

Global

From cultural transformation & globalisation to leadership

Many CEOs think developing global leadership is key to success & integral to strategic planning.

Thus, staff needs competencies for international business.

leadership

Corporate orientations

Nationally oriented	Regionally oriented	Globally oriented
Operates independently & autonomously w/in a particular nation	Operates interdependently w/in a limited area involving more than one nation	Operates interdependently across nations & worldwide regions
Focuses on local objectives	Focuses on regional objectives	Focuses on global objectives
Shows tendency toward national-culture homogeneity	Shows limited multicultural heterogeneity	Shows extensive multicultural tendency

Adapted from (Heenan & Perimutter, 1979)

Ways to capitalise on global potential

Hire employees w/geographically, culturally, linguistically & organisationally diverse experiences

Create global virtual teams & broaden their perspectives w/travel

Prepare & send personnel on secondments

Instil learning from these activities

Seizing own opportunities

Exchange student programs

Gap year programs

Self-initiated expatriates

Global virtual teams

International teams offer the chance to work w/different people on different projects in different time zones

ICT facilitated international cross-country collaboration

Key skills & practices:

Brainstorming w/o criticism

Soliciting feedback

Responding promptly (Vance & Paik, 2015)

International assignments

Business trip

Frequent flier

Commuter/fly in-fly out

Rotational

Short-term

Long-term

International transfer

Roles

Bears

Bumblebees

Spiders

(Harzing, 2001)

Research on successful expatriation

Performance improves from formal:

Links to international operations & company objectives

Links to training & global leadership development & company goals

Management by the firm of knowledge acquired by expats

(Varner & Palmer, 2002)

Informal measures:

Global speakers

Visitors

‘Brown bag’ global-themed lunches

Advisors oversee workers

Profile of expatriates

A study estimated 40 million highly skilled expats work in 34 OECD nations (van Muijen, K., 2012)

Trends to watch:

Working abroad may bring pay gaps between locals & foreigners

Employees may prefer tangible & intangible benefits of living overseas

Supply & demand levels fluctuate

e.g., pollution in large cities could lead to departure

Trends by country & company

Top countries for developmental assignment

U.S., U.K., China, Singapore, Canada, Hong Kong, U.A.E., Japan, Mexico

(Cartus Corporation, 2016)

Multinationals

e.g. KMPG – audit, tax & advisory services firm

e.g. Mercer’s 2017 Mobility Trends in Review on business

Expat paradox

Talent grows in value, but expatriation is difficult to implement

Expat strategy

Important to connect home operations to the overseas environment

On-the-ground personnel can prioritise organisational goals

Locals may not have desired skills

Opportunity to develop a global culture

Cultural

intelligence

Counterarguments to having expats

More cost-effective to use host nationals

Locals may be required & well-received

Locals can manage large operations & are versed in the culture & language

(Dowling et al., 2008)

(Arthi, 2015)

Competencies for global leadership

Development entails:

Having a systems perspective

Seeing others points of view

Looking at issues holistically

Dealing w/contradictions or ambiguity

Effectively working across cross-cultural teams

Bridging local w/global

Building emotional resilience

Cultural agility is “the ability to quickly, comfortably, and effectively work in different cultures, and with people from different cultures” (Caligiuri, 2013, 175).

Selection criteria of expats

Models

Psychometric

Experimental

Clinical risk assessment

Focus:

Emphasis on technical skills

Interest in global is another significant facet of one’s ability to acclimate

References

Alvesson, M. & Sveningsson, S. (2016). Changing organizational culture: Cultural change work in progress. New York, NY: Routledge, Taylor & Francis.

Arthi, R. (2015) A Study of the Strategic Initiatives and Its Effectiveness in Retaining Expatriates in the Indian Context. Journal of Psychiatry. 18, 332.

Berry, J. W. (1980). Acculturation as variety of adaptation. In A. M. Padilla (Ed.), Acculturation: Theory, models, and some findings, Boulder, CO: Westview Press, 9-25.

Briody E. K. et al., (2010). Transforming culture: Creating and sustaining a better manufacturing organization. New York, NY: Palgrave Macmillan.

Caligiuri, P. (2013). Developing culturally agile global business leaders. Organizational Dynamics, 42, 175-182.

Cartus Corporation. (2016). Global mobility policy and practices. Chicago, IL Retrieved from https://www.cartus.com/files/2214/8796/3083/Cartus-2016-Global-Mobility-Policy-and-Practices-Survey_Full_Survey_inclusive_of_all_charts.pdf

Dowling, P. J., Festing, M., & Engle Sr., A. D. (2008). International human resource management: Managing people in a multinational context (5th edition). London, UK: Thompson Learning.

Duarte, F. (2011). What does a culture of corporate social responsibility “look“ like? A glimpse into a Brazilian mining company. International Journal of Business Anthropology, 2 (1), 106-122.

Ervin, A. L. (2015). Cultural transformations and globalization: Theory, development, and social change. Boulder, CO: Paradigm Publishers.

Ferrarro, G. P., & Briody, E. K. (2017). The cultural dimension of global business (8th edition). Oxon & New York: Routledge.

References

Gale, N. K., Shapiro, J., McLeod, H. S. t., Redwood, S. & Hewison, A. (2014). Patients-people-place: Developing a framework for researching organizational culture during health service redesign and change. Implementation Science, 9 (106), 1-11.

Harzing, A.-W. (2001). Of bears, bumble-bees, and spiders: The role of expatriates in controlling foreign subsidiaries. Journal of World Business, 36 (4), 366-379.

Harzing, A.-W. (2002). Are our referencing errors undermining our scholarship and credibility? The case of expatriate failure rates. Journal of Organizational Behavior, 23, 127-148.

Heenan, D. A. & Perlmutter, H. V. (1979). Multinational organizational development. Reading, MA: Addison-Wesley Publishing Co.

Meyskens, M. et al. (2009). The paradox of international talent: Alternative forms of international assignments. International Journal of Human Resource Management, 20 (6), 1439-1450.

Philip, G. & McKeown, I. (2004). Business transformation and organizational culture: The risk of competency, IS and TQM. European Management Journal, 22 (6), 624-636.

van Muijen, K., Expat Marketing (2012). How big is the expat market? Retrieved from (https://expatmarketing.com/news/expat-trends/how-big-is-the-expat-market, February 24.

Vance, C. M. & Youngsun, P. (2015). Managing a global workforce: Challenges and opportunities in international human resource management (3rd edition). New York, NY: Routledge, Taylor & Francis.

Varner, I. I. & Palmer, T. M. (2002). Successful expatriation and organizational strategies. Review of Business, Spring, 8-11.

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Ch10

Lecture learning objectives

Review the nature & ways to manage multiparty negotiations

Outline steps for building effective & powerful coalitions

Cultivate better practices for working across group negotiations

Multiparty & team negotiations

In multiparty negotiations – each actor represents a constituency

Sell it and buy a new inexpensive stereo system

Sell it and buy a new expensive stereo system

Doesn’t want

to sell it

POSITIONS VS. INTERESTS

Sell it and split the money

Nature of multiparty negotiations

Number of parties

Principal/agents with role/status/power

Informational and computational complexity

Keeping track of information

Acceptable solution

Social complexity

Motivational orientation (Individualistic vs. Collectivistic)

Groupthink (e.g. NASA Challenger mission, 1986 & NASA Columbia mission, 2003)

Groupthink

Symptoms of groupthink that causes things to go astray

Illusion of invulnerability

Belief in inherent morality of the group

Collective rationalization

Out-group stereotypes

Self-censorship

Illusion of unanimity

Direct pressure on dissenters

(Janis, 1972)

Multiparty negotiations

Individualistically-motivated parties in multiparty negotiations are more trusting and engage in less argumentation.

True False

(Lewicki, Barry, & Saunders, 2010)

Multiparty negotiations

Conflict is a natural part of group life that improves members’ ability to complete tasks, work together, and sustain these relationships.

True False

(Lewicki, Barry, & Saunders, 2010)

Nature of multiparty negotiations

Procedural complexity

Coordination of the process

Holistic vs. sequential

Strategic complexity

Consider strategies of all parties

Observers can lead to distributive bargaining

Factor in the number of parties involved (North Korea)

Strive for coalition building

Effective group behaviour

Use an agenda & chair to manage the process

All members participate

Define key terms of agreement

Be specific

Check assumptions & inferences

Share relevant information

Disclose & focus on interests over positions

Share disagreement & test solutions

Invite questions/comments

Make decisions by consensus

Conduct a self-critique

STAGES OF

MULTIPARTY NEGOTIATION

Pre-negotiation

Characterised by many informal contacts among the parties

Negotiation

Structure follows a group discussion to try to achieve an effective & endorsed result

Agreement

Parties select among the alternatives put forward

Managing the pre-negotiation stage

Establish participants

Form coalitions

Define group member roles (e.g., leader, mediator/ facilitator)

Task roles

Relationship roles

Understand the costs and consequences of no agreement

Is cost of impasse the same for individuals?

Roles by group members

Adapted from (Benne & Sheats, 1948)

Coalitions in multiparty negotiations

It is uncommon for coalitions to exist before negotiations begin.

True False

(Lewicki, Barry, & Saunders, 2010)

Advantages of coalitions

Coalitions can conserve resources. Coalitions can achieve more widespread reach within a community than any single organisation can attain. Coalitions can accomplish objectives beyond the scope of any single organisation. Coalitions have greater credibility than individual organisations. Coalitions provide a forum for sharing information. Coalitions provide a range of advice & perspectives to the lead agency. Coalitions foster personal satisfaction & help members to understand their jobs in a broader perspective. Coalitions can foster cooperation between grassroots organisations, community members, and/or diverse sectors of a large organisation. (Cohen, Baer, & Satterwhite, 2002)

Basic steps to building an effective coalition

Analyze the program’s objectives & determine whether to form a coalition. Recruit the right people. Devise a set of preliminary objectives & activities. Convene the coalition. Anticipate the necessary resources. Define elements of a successful coalition structure. Maintain coalition vitality. Make improvements through evaluation. (Cohen, Baer, & Satterwhite, 2002)

Pre-negotiation preparation

Background

Learn the Issues, collect information & discover interests

Devise a set of ground rules

Agendas

Define each issue

Set the order

Introduce process & substantive issues

Assign time limits to various items

Multi-issues in multiparty negotiations

In multiparty negotiations, research shows that parties who approached multiple issues simultaneously achieved lower quality agreements.

True False

(Lewicki, Barry, & Saunders, 2010)

Managing the negotiation stage

Appoint an appropriate chair

Use & restructure agenda

Caveat: be aware of potential drawbacks

Ensure diversity of information and perspectives

The chair in multiparty negotiations

When a chairperson is also advocating a particular position or preferred outcome, it will be difficult for that individual to act or be seen as neutral.

True False

(Lewicki, Barry, & Saunders, 2010)

Carrying out multiparty negotiations

Ensure consideration of all available information

The Delphi technique

Brainstorming

Nominal group technique

Manage conflict effectively

Relationship conflict

Task conflict

Process conflict

Delphi method –

communication structure

Carrying out multiparty negotiations

Review & manage the decision rules

Strive for a first agreement

Manage problem team members

Managing the agreement stage

Select the best solution

Single alternative vs. package

Develop an action plan

Implement the action plan

Evaluate outcomes & process

Even ones that are politically unpopular

Managing the agreement stage

Role of group chair or facilitator in moving toward a successful completion:

Move the group toward selecting one or more options

Encourage packaging & tradeoffs

Shape and draft the tentative agreement

Discuss implementation and follow-up

Thank the group

Organize and facilitate the postmortem

Copenhagen 2009 Climate Talks

Illustration of coalitions

BASIC coalition (Brazil, South Africa, India, and China) negotiated the final details of the Copenhagen Accord with the United States.

BASIC was initiated by China and India. They then invited Brazil and South Africa (SNOWBALLING). Sudan was also invited to represent the G77.

They wanted the Copenhagen Accord to set the stage for a “twin-track” agreement – with tough and binding targets for developed countries and voluntary commitments for themselves (OBJECTIVE).

The four countries decided that they would walk out (POWER) of Copenhagen together if necessary (if any of our non-negotiable terms are violated).

China agreed to accept a limited international monitoring of its targets (India claimed to have pushed China on that) (INFLUENCE).

(Susskind, Moomaw, & Walters (Eds.), 2009)

Observations of interteam negotiations

Integrative agreements are more likely

Yet, teams can be more competitive & claim more value

Accountability pressures vary

Relationships among team members affect negotiation process & outcomes

Seek familiarity, not friendship

Discuss differences in advance

Assign roles & responsibilities

(Shonk, 2017)

How to maximise

team negotiations

Cultural intelligence scale

Cultural Intelligence Scale is a scale that seeks to measure an individual's ability to understand, act and manage effectively in culturally diverse settings. CFA results supported CQS's satisfying psychometric characteristic.

(Gozzoli & Gazzaroli, 2018)

Cultural intelligence scale check

(Ang & van Dyne, 2015)

I am conscious of the cultural knowledge I use when interacting with people with different cultural backgrounds.

I adjust my cultural knowledge as I interact with people from a culture that is unfamiliar to me.

I am conscious of the cultural knowledge I apply to cross-cultural interactions.

I check the accuracy of my cultural knowledge as I interact with people from different cultures.

I know the legal & economic systems of other cultures.

I know the rule (e.g., vocabulary, grammar) of other languages.

I know the cultural values and religious beliefs of other cultures.

I know the marriage systems of other cultures.

I know the arts & crafts of other cultures.

I know the rules for expressing non-verbal behaviours in other cultures.

I enjoy interacting with people from different cultures.

I am confident that I can socialise with locals in a culture that is unfamiliar to me.

I am sure I can deal with the stresses of adjusting to a culture that is new to me.

I enjoy living in cultures that are unfamiliar to me.

I am confident that I can get accustomed to the shopping conditions in a different culture.

I change my verbal behaviour (e.g., accent) when a cross-cultural interaction requires it.

I use pause and silence differently to suit different cross-cultural situations.

I vary the rate of my speaking when a cross-cultural situation requires it.

I change my non-verbal behaviour when a cross-cultural situation requires it.

I alter my facial expressions when a cross-cultural situation requires it.

Respond to each statement: Strongly Disagree (1), Disagree (2), Neither Agree nor Disagree (3), Agree (4), Strongly Agree (5)

Summary

Overviewed the characteristics of multiparty negotiations

Foreshadowed how to avoid being immersed in a groupthink situation

Conceded there are challenges in negotiations involving more players or bias

Explicated however that dividends may result from having diversity across teams & developing cultural intelligence

References

Ang, S., & van Dyne, L. (Eds.) (2015). Handbook of cultural intelligence: Theory, measurement, and applications. London: Routledge.

Cohen L, Baer N, Satterwhite P. Developing effective coalitions: an eight step guide. In: Wurzbach ME, ed. Community Health Education & Promotion: A Guide to Program Design and Evaluation. 2nd ed. Gaithersburg, Md: Aspen Publishers Inc; 2002:144-161.

Gozzoli, C., & Gazzaroli, D. (2018). The cultural intelligence scale (CQS): A contribution to the Italian validation. Frontiers in Psychology, 9 (1183), pp. 1-8.

Janis, I. L. (1972). Victims of groupthink: A psychological study of foreign-policy decisions and fiascos. Oxford, England: Houghton Mifflin.

Lewicki, R.J., Saunders, D.M., & Barry, B. (2010). Essentials of negotiation (5th ed.). New York: McGraw-Hill.

Shonk, K., Harvard Law School (2017, June 26). 3 team-building techniques for successful negotiations. Retrieved from https://www.pon.harvard.edu/daily/business-negotiations/team-building-techniques-successful-negotiations/

Susskind, L. E., Moomaw, W., & Waters, N. J. (Eds.). (2009). Papers on international environmental negotiation, Volume 17: On the road to Copenhagen (2009) attributes. Cambridge, MA: PON Books.