MGT 400: Cross-Cultural Management
Mid-Term Exam Study Guide
Cultural Values
Fusion of Ideas
Selective Borrowing and fusion between East and West
The Toyota way, total quality management, just in time manufacturing
East European Countries and China capitalist economic principles
Certain Behaviors are common across culture
The GLOBE Project: Charismatic leadership in 61 nations
The GLOBE Project is based on the similarities around different cultures
Globalization (does not mean the) homogenization of culture
Culture is one of the casual forces of behavior (others are technology strategy, size,
organization, ecology, etc.)
Distinctive cultural characteristics persist
EXAMPLE OF A CROSS-CULTURAL ISSUE:
oGlobalization and FOXCONN:
A large contract manufacturer in China, catering to companies such as Apple,
Dell, HP, Motorola, Nintendo, Sony, and Nokia.
1 million workers producing 90 million iPhones
It is popular because it reaches their deadlines. They put high pressure on their
employees to reach deadlines using military management. “Workers as
Machines: Military Management in FOXCONN. That several employees have
attempted suicide).
Culture Defined
Culture: is the acquired knowledge people use to interpret experience and actions
Subtle but profound
Knowledge translates into value and attitudes that guide behaviors
Culture is not genetically based it is learned by people and encourages by
societies and governments
Ex: Saving face and being loyal are cultural characteristics in China
Culture will change slowly
oEx: Gift fiving or in Japan (persists even with the influence of other “Giri”
cultures)
Here we focus on National Culture (the primary culture rather than subcultures
within a country)
What is a unique aspect of American Culture?
oHigh trust: Reliance on an abstract rule of law; punctuality; a strong “can do”
spirit. These cultural values are reflected in the way we do business
How is Culture Transmitted:
Enculturation: refers to the non-intentional process that includes all of the learning
available as the result of what is in an environment
Culture is transmitted through its people both formally and informally
Informal transmission occurs every day as individuals interact with each other,
watch TV, or read books
Formal transmission occurs through efforts to socialize as individuals such as in
schools and government. Theses cultures are pervasive.
Giri in Japan: The right way to behave and gift giving: the correct way of
wrapping/giving the gift
On the job training: An Accenture manager in India (Page 35)
oAnswer questions literally
oEmpathy training initiatives to go an extra step
oIndian’s answer customer questions literally without going the extra step
Culture’s Impact
Impacts a multinational firm’s operations in all aspects
Communication
Culture has an impact on how communication takes place, how it is
communicated, what is communicated and the manner which it is communicated
Culture has an impact on communication takes place in an organization, how what
is communicated (only work related or including personal issues, and the manner
in which the information is communicated) (direct confrontation and losing face)
oAsian cultures use silence as non-verbal cues
oAmericans say what we mean and do what we say
High-Context and Low-Context cultures exist
In High-Context cultures, the context in which what is spoked plays a major role
in communication and the behavior of individuals
In Low-Context cultures the information is very straightforward, and the context
has less impact on how such information is likely to be spoken and interpreted
Individuals interpret communication on the basis of one’s own cultural norms
Different views of dealing with culture
Project one’s own values on others
Parochialism: is a belief that the only way to do something is the way it’s done in
one’s own culture (may not know there are other ways)
Ethnocentric: (Are aware of other ways but believe their own wat is the best
way!) They will not adapt other cultural ways of doing things
On the other end of the continuum
Polycentric: View holds that multinational enterprises should treat each
international subsidiary as a separate national entity
“When in Rome do as the Romans do”
Ethnical problems arise with the polycentric view
Protocol: Rules of how individuals in a business setting are to interact with each other.
It is important to understand the protocol and communication aspects of those in a
country that you would like to know
Cultural Sensitivity: is a state of heightened awareness for the values and frames of
reference of the host culture
Common Culture Mistakes:
Coca-Cola translated in Chinese is “Bite the wax Tad Pole”
IBM and Lenovo (a Chinese business partner)
IBM offended a long-time business partner Lenovo by not sending anyone to
greet the partner at the airport
Handholding by two individuals of the same sex is a sign of friendship (Hong-Kong,
Saudi Arabia)
How do you greet guest?
Conceptual Models for Analyzing Culture
Sociology Framework
Kluckhohn and Strodtbeck
Introduces differences in time orientation, space, relationship etc.
Psychological Framework
Geert Hofstede
Involves FIVE dimensions established by Hofstede
Expansive Framework
Which expands the psychological framework
The GLOBE Study
Case’s
Oil and Wasser: Main characters and their relationships. The two companies’
characteristics before the merger. What are the old ways for developing leaders in the two
companies? What could the CEO (Callaghan) have done differently? Among the four
commentaries, what seems to be a common suggestion?
Company Company
Royal Biscuit Edeling GmbH
Based in London, England Based in Munich, Germany
10 years of existence 120 years of existence
Driven by creativity and entrepreneurism Family owner business, driven by tradition
CEO: Sir John Callaghan (Temperamental) CEO: Heinz Burkhardt
Brighton:
Has been the HR-Manager of Royal Biscuit over five years
Is not used to receiving critiques from his boss
Is very unsatisfied with the planning approach of his partner Wallach
Avoids open cultural problems discussion with Wallach at first, but then offends him
Is ready to make decision based on intuition and feelings
His planning approach is: Make a plan and then make it perfect during implementation
Is not ready to give up parts of the corporate culture and replace his co-workers with
German managers from Edeling
Has a positive opinion of Germans as leaders and seeks for confirmation of negative
stereotypes about the Germans
Callaghan:
Is a straight-forward speaker and thinker w/a strong temperament
Is goal-orientated and performance-orientated
Seems to be able to think globally without cultural influence but does not see that his
employees are not. He does not try to solve the intercultural issues in this merger
Anthony Miles:
Is the Marketing Manager of Royal Biscuit
Is avoiding conflicts
Lived in Germany and had a German girlfriend, and therefore has experience with both
cultures – the German and the English. He is able to see if from both perspectives
Dieter Wallach (German counterpart):
Is a very careful decision maker
His decisions are based on previous broad research and analysis and different
perspectives
Is seeking for consensus of all parties that are involved
Has a strong focus on detail
His planning approach is: Make a perfect plan that does not need improvement
afterwards and meets with agreement from all parties beforehand
Not ready to give up parts of the corporate culture and tradition
Wants Brighton to understand and appreciate the Edeling’s successful tradition and
history
Merger would create the 2 largest consumer foods business on a “merger of equals”
nd
where Callaghan would be the CEO and Burkhardt would be the nonexecutive chairman
of the supervisory board
Wallach said they should get additional perspectives to produce the plan
German English
Management is a science Management is an art
Based on expertise, knowledge, and education
(In House University)
Based on other skills like communication,
emotional intelligence, etc. (find quote),
learning by doing: “leadership ability is more
about emotional intelligence, energy, and
cultural fit” (4)
Focuses on teamwork and individual
performance together
Believes that healthy competition is okay
Process driven Results driven
Risk adverse Ready to take risk
Tradition, stick with successful processes Flexible and creative approach
