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TheMeaningsandDimensionsofCulturechapterfourMcGraw-Hill/IrwinCopyright?2009byTheMcGraw-HillCompanies,Inc.AllRightsReserved.ChapterObjectivesDEFINEthetermculture,anddiscusssomeofthecomparativewaysofdifferentiatingcultures.DESCRIBEtheconceptofculturalvalues,andrelatesomeoftheinternationaldifferences,similarities,andchangesoccurringintermsofbothworkandmanagerialvalues.IDENTIFYthemajordimensionsofculturerelevanttoworksettings,anddiscusstheireffectsonbehaviorinaninternationalenvironment.DISCUSSthevalueofcountryclusteranalysisandrelationalorientationsindevelopingeffectiveinternationalmanagementpractices.TheNatureofCultureCulturedefined:Acquiredknowledgethatpeopleusetointerpretexperienceandgeneratesocialbehavior.Thisknowledgeformsvalues,createsattitudes,andinfluencesbehavior.CharacteristicsofCultureLearnedSharedTrans-generationalSymbolicPatternedAdaptivePrioritiesofCulturalValuesHowCultureAffects

ManagerialApproachesCentralizedvs.DecentralizedDecisionMaking:Insomesocieties,topmanagersmakeallimportantorganizationaldecisions.Inothers,thesedecisionsarediffusedthroughouttheenterprise,andmiddle-andlower-levelmanagersactivelyparticipatein,andmake,keydecisions.HowCultureAffects

ManagerialApproachesSafetyvs.Risk:Insomesocieties,organizationaldecisionmakersareriskaverseandhavegreatdifficultywithconditionsofuncertainty.Inothers,risktakingisencouraged,anddecisionmakingunderuncertaintyiscommon.HowCultureAffects

ManagerialApproachesIndividualvs.GroupRewards:Insomecountries,personnelwhodooutstandingworkaregivenindividualrewardsintheformofbonusesandcommissions.Inothers,culturalnormsrequiregrouprewards,andindividualrewardsarefrownedupon.HowCultureAffects

ManagerialApproachesInformalProceduresvs.FormalProcedures:Insomesocieties,muchisaccomplishedthroughinformalmeans.Inothers,formalproceduresaresetforthandfollowedrigidly.HowCultureAffects

ManagerialApproachesHighOrganizationalLoyaltyvs.LowOrganizationalLoyaltyInsomesocieties,peopleidentifyverystronglywiththeirorganizationoremployer.Inothers,peopleidentifywiththeiroccupationalgroup,suchasengineerormechanic.HowCultureAffects

ManagerialApproachesCooperationvs.CompetitionSomesocietiesencouragecooperationbetweentheirpeople.Othersencouragecompetitionbetweentheirpeople.HowCultureAffects

ManagerialApproachesShort-termvs.Long-termHorizonsSomeculturefocusmostheavilyonshort-termhorizons,suchasshort-rangegoalsofprofitandefficiency.Othersaremoreinterestedinlong-rangegoals,suchasmarketshareandtechnologicdevelopments.HowCultureAffects

ManagerialApproachesStabilityvs.InnovationThecultureofsomecountriesencouragesstabilityandresistancetochange.Thecultureofothersputshighvalueoninnovationandchange.AModelofCultureBusinessCustomsinSouthAfricaArrangemeetingbeforediscussingbusinessoverphone.Makeappointmentsasfarinadvanceaspossible.Maintaineyecontact,shakehands,providebusinesscardMaintainawin-winsituationKeeppresentationsshortValuesinCultureValuesLearnedfromcultureinwhichindividualisrearedDifferencesinculturalvaluesmayresultinvaryingmanagementpracticesBasicconvictionsthatpeoplehaveaboutRightandwrongGoodandbadImportantandunimportantValuesinCultureValuesinCultureHofstede’sCulturalDimensionsPowerdistanceUncertaintyavoidanceIndividualism/collectivismMasculinity/femininityHofstede’sCulturalDimensionsPowerdistance:LesspowerfulmembersacceptthatpowerisdistributedunequallyHighpowerdistancecountries:peopleblindlyobeysuperiors;centralized,tallstructures(e.g.,Mexico,SouthKorea,India)Lowpowerdistancecountries:flatter,decentralizedstructures,smallerratioofsupervisortoemployee(e.g.,Austria,Finland,Ireland)Hofstede’sCulturalDimensionsUncertaintyavoidance:peoplefeelthreatenedbyambiguoussituations;createbeliefs/institutionstoavoidsuchsituationsHighuncertaintyavoidancecountries:highneedforsecurity,strongbeliefinexpertsandtheirknowledge;structureorganizationalactivities,morewrittenrules,lessmanagerialrisktaking(e.g.,Germany,Japan,Spain)Lowuncertaintyavoidancecountries:peoplemorewillingtoacceptrisksoftheunknown,lessstructuredorganizationalactivities,fewerwrittenrules,moremanagerialrisktaking,higheremployeeturnover,moreambitiousemployees(e.g.,DenmarkandGreatBritain)Hofstede’sCulturalDimensionsIndividualism:PeoplelookafterselvesandimmediatefamilyonlyHighindividualismcountries:wealthier,protestantworkethic,greaterindividualinitiative,promotionsbasedonmarketvalue(e.g.,U.S.,Canada,Sweden)Highcollectivismcountries:poorer,lesssupportofProtestantworkethic,lessindividualinitiative,promotionsbasedonseniority(e.g.,Indonesia,Pakistan)Hofstede’sCulturalDimensionsMasculinity:dominantsocialvaluesaresuccess,money,andthingsHighmasculinecountries:stressearnings,recognition,advancement,challenge,wealth;highjobstress(e.g.,Germaniccountries)Highfemininecountries:emphasizecaringforothersandqualityoflife;cooperation,friendlyatmosphere.,employmentsecurity,groupdecisionmaking;lowjobstress(e.g.,Norway)Trompenaars’CulturalDimensionsUniversalismvs.ParticularismUniversalism:ideas/practicescanbeappliedeverywhereHighuniversalismcountries:formalrules,closeadheretobusinesscontracts(e.g.,Canada,U.S.,Netherlands,HongKong)Particularism:circumstancesdictatehowideas/practicesapply;highparticularismcountriesoftenmodifycontracts(e.g.,China,SouthKorea)Trompenaars’CulturalDimensionsIndividualismvs.CommunitarianismIndividualism:peopleasindividualsCountrieswithhighindividualism:stresspersonalandindividualmatters;assumegreatpersonalresponsibility(e.g.,Canada,Thailand,U.S.,Japan)Communitarianism:peopleregardselvesaspartofgroupValuegroup-relatedissues;committeedecisions;jointresponsibility(e.g.,Malaysia,Korea)Trompenaars’CulturalDimensionsNeutralvs.EmotionalNeutral:cultureinwhichemotionsnotshownHighneutralcountries,peopleactstoicallyandmaintaincomposure(e.g.,JapanandU.K.)Emotional:EmotionsareexpressedopenlyandnaturallyHighemotioncultures:peoplesmilealot,talkloudly,greeteachotherwithenthusiasm(e.g.,Mexico,Netherlands,Switzerland)Trompenaars’CulturalDimensionsSpecificvs.DiffuseSpecific:largepublicspacesharedwithothersandsmallprivatespaceguardedcloselyHighspecificcultures:peopleopen,extroverted;strongseparationworkandpersonallife(e.g.,Austria,U.K.,U.S.)Diffuse:publicandprivatespacessimilarsize,publicspaceguardedbecausesharedwithprivatespace;peopleindirectandintroverted,work/privatelifecloselylinked(e.g.,Venezuela,China,Spain)Trompenaars’CulturalDimensionsAchievementvs.AscriptionAchievementculture:statusbasedonhowwellperformfunctions(Austria,Switzerland,U.S.)Ascriptionculture:statusbasedonwhoorwhatpersonis(e.g.,Venezuela,China,Indonesia)Trompenaars’CulturalDimensionsTimeSequential:onlyoneactivityatatime;appointmentskeptstrictly,followplansaslaidout(U.S.)Synchronous:multi-task,appointmentsareapproximate,schedulessubordinatetorelationships(e.g.,France,Mexico)Presentvs.Future:Futuremoreimportant(Italy,U.S.,Germany)Presentmoreimportant(Venezuela,IndonesiaAll3timeperiodsequallyimportant(France,BelgiumTrompenaars’CulturalDimensionsTheEnvironmentInner-directed:peoplebelieveincontrolofoutcomes(U.S.,Switzerland,Greece,Japan)Outer-directed:peoplebelieveinlettingthingstakeowncourse(China,manyotherAsiancountries)IntegratingCultureandManagement:TheGLOBEProjectGLOBE:GlobalLeadershipandOrganizationalBehaviorEffectiveness.Projectextendsandintegratespreviousanalysesofculturalattributesandvariables.Evaluatesninedifferentculturalattributesusingmiddlemanagersfrom951organizationsin62countries.Multi-culturalteamof170scholarsfromaroundtheworldworkedtogethertosurvey17,000managersin3industries:financialservices,foodprocessing,andtelecommunications.Coveredeverymajorgeographicregionoftheworld.TheGLOBEProjectThe9DimensionsoftheGLOBEProject:UncertaintyavoidancePowerdistanceCollectivismI:SocialcollectivismCollectivismII:In-groupcollectivismGenderegalitarianismAssertivenessFutureorientationPerformanceorientationHumaneorientationGLOBEResultsCorrespondsgenerallywiththoseofHofstedeandTrompenaars.DifferentfromHofstedeinthatmanymoreresearcherswithvariedperspectiveswereinvolved(vs.Hofstedeworkngalone);studiedmanycompaniesvs.Hofstede’sIBM.GLOBEprovidesacurrentcomprehensiveoverviewofgeneralstereotypesthatcanbefurtheranalyzedforgreaterinsight.GLOBEProjectGLOBEAnalysisManagingAcrossCultureschapterfiveMcGraw-Hill/IrwinCopyright?2009byTheMcGraw-HillCompanies,Inc.AllRightsReserved.ChapterObjectivesThespecificobjectivesofthischapterare:EXAMINEthestrategicdispositionsthatcharacterizeresponsestodifferentcultures.DISCUSScross-culturaldifferencesandsimilarities.REVIEWculturaldifferencesinselectcountriesandregions,andnotesomeoftheimportantstrategicguidelinesfordoingbusinessineach.StrategicPredispositionsFourdistinctpredispositionstowarddoingthingsinaparticularway:EthnocentricPolycentricRegio-centricGeocentricStrategicPredispositionsEthnocentricpredispositionAnationalisticphilosophyofmanagementwherebythevaluesandinterestsoftheparentcompanyguidestrategicdecisions.StrategicPredispositionsPolycentricpredispositionAphilosophyofmanagementwherebystrategicdecisionsaretailoredtosuittheculturesofthecountrieswheretheMNCoperates.StrategicPredispositionsRegio-centricpredispositionAphilosophyofmanagementwherebythefirmtriestoblenditsowninterestswiththoseofitssubsidiariesonaregionalbasis.StrategicPredispositionsGeocentricpredispositionAphilosophyofmanagementwherebythecompanytriestointegrateaglobalsystemsapproachtodecisionmaking.OrientationofanMNCCross-Cultural

DifferencesandSimilaritiesParochialismandSimplificationParochialism:viewworldthroughowneyesandperspectivesSimplification:exhibitsameorientationtowarddifferentculturalgroupsCross-Cultural

DifferencesandSimilaritiesSimilaritiesacrosscultures:NotpossibletodobusinesssamewayineverygloballocationProceduresandstrategiesthatworkwellathomecan’tbeadoptedoverseaswithoutmodificationsSomesimilaritieshavebeenfoundRussiaandU.S.(forexample)TraditionalmanagementCommunicationHumanresourcesNetworkingactivitiesOBModCross-Cultural

DifferencesandSimilaritiesDifferencesacrossculturesFarmoredifferencesthansimilaritiesfoundincross-culturalresearchWages,compensation,payequity,maternityleaveImportanceofcriteriausedinevaluationofemployeesCulturalClustersInternational

HumanResourceManagementCulturalDifferencesinSelected

CountriesandRegionsDoingBusinessinChinaTheChineseplacevaluesandprinciplesabovemoneyandexpediency.Businessmeetingstypicallystartwithpleasantriessuchasteaandgeneralconversationabouttheguest’striptothecountry,localaccommodations,andfamily.TheChinesehostwillgivetheappropriateindicationforwhenameetingistobeginandwhenthemeetingisover.OncetheChinesedecidewhoandwhatisbest,theytendtostickwiththesedecisions.Althoughslowinformulatingaplanofaction,oncetheygetstarted,theymakefairlygoodprogress.

CulturalDifferencesinSelected

CountriesandRegions:ChinaInnegotiations,reciprocityisimportant.IftheChinesegiveconcessions,theyexpectsomeinreturn.Becausenegotiatingcaninvolvealossofface,itiscommontofindChinesecarryingoutthewholeprocessthroughintermediaries.Duringnegotiations,itisimportantnottoshowexcessiveemotionofanykind.Angerorfrustrationisviewedasantisocialandunseemly.Negotiationsshouldbeviewedwithalong-termperspective.Thosewhowilldobestaretheoneswhorealizetheyareinvestinginalong-termrelationship.CulturalDifferencesinSelected

CountriesandRegions

DoingBusinessinRussiaBuildpersonalrelationshipswithpartners.Whentherearecontractdisputes,thereislittleprotectionfortheaggrievedpartybecauseofthetimeandeffortneededtolegallyenforcetheagreement.Uselocalconsultants.Becausetherulesofbusinesshavechangedsomuchinrecentyears,itpaystohavealocalRussianconsultantworkingwiththecompany.EthicalbehaviorintheUnitedStatesisnotalwaysthesameasinRussia.Forexample,itistraditionalinRussiatogivegiftstothosewithwhomonewantstotransactbusiness.Bepatient.InordertogetsomethingdoneinRussia,itoftentakesmonthsofwaiting.CulturalDifferencesinSelected

CountriesandRegions:RussiaRussianslikeexclusivearrangementsandoftennegotiatewithjustonefirmatatime.Russiansliketodobusinessface-to-face.Sowhentheyreceivelettersorfaxes,theyoftenputthemontheirdeskbutdonotrespondtothem.Keepfinancialinformationpersonal.Russianswaituntiltheyknowtheirpartnerwellenoughtofeelcomfortablebeforesharingfinancialdata.Researchthecompany.IndealingeffectivelywithRussianpartners,itishelpfultogetinformationaboutthiscompany,itsmanagementhierarchy,andhowittypicallydoesbusiness.CulturalDifferencesinSelected

CountriesandRegions:RussiaStressmutualgain.TheWesternideaof“win–win”innegotiationsalsoworkswellinRussia.Clarifyterminology.ThelanguageofbusinessisjustgettingtransplantedinRussiasodouble-checkandmakesurethattheotherpartyclearlyunderstandstheproposal,knowswhatisexpectedandwhen,andisagreeabletothedeal.Becarefulaboutcompromisingorsettlingthingstooquicklybecausethisisoftenseenasasignofweakness.Russiansviewcontractsasbindingonlyiftheycontinuetobemutuallybeneficial,socontinuallyshowthemthebenefitsassociatedwithstickingtothedeal.CulturalDifferencesinSelected

CountriesandRegionsDoingbusinessinIndiaItisimportanttobeontimeformeetings.Personalquestionsshouldnotbeaskedunlessthe otherindividualisafriendorcloseassociate.Titlesareimportant,sopeoplewhoaredoctorsor professorsshouldbeaddressedaccordingly.Publicdisplaysofaffectionareconsideredtobe inappropriate,sooneshouldrefrainfrom backslappingortouchingothers.CulturalDifferencesinSelected

CountriesandRegions:IndiaBeckoningisdonewiththepalmturneddown;pointingoftenisdonewiththechin.Wheneatingoracceptingthings,usetherighthandbecausetheleftisconsideredtobeunclean.Thenamastegesturecanbeusedtogreetpeople;italsoisusedtoconveyothermessages,includingasignalthatonehashadenoughfood.Bargainingforgoodsandservicesiscommon;thiscontrastswithWesterntraditions,wherebargainingmightbeconsideredrudeorabrasive.CulturalDifferencesinSelected

CountriesandRegionsDoingbusinessinFranceWhenshakinghandswithaFrenchperson,useaquickshakewithsomepressureinthegrip.Itisextremelyimportanttobeontimeformeetingsandsocialoccasions.Being“fashionablylate”isfrownedon.Duringameal,itisacceptabletoengageinpleasantconversation,butpersonalquestionsandthesubjectofmoneyareneverbroughtup.Visitingbusinesspeopleshouldtryveryhardtobeculturedandsophisticated.CulturalDifferencesinSelected

CountriesandRegions:FranceTheFrenchtendtobesuspiciousofearlyfriendlinessinthediscussionanddislikefirstnames,takingoffjackets,ordisclosureofpersonalorfamilydetails.InnegotiationstheFrenchtrytofindoutwhatalloftheotherside’saimsanddemandsareatthebeginning,buttheyrevealtheirownhandonlylateinthenegotiations.TheFrenchdonotlikebeingrushedintomakingadecision,andtheyrarelymakeimportantdecisionsinsidethemeeting.TheFrenchtendtobeverypreciseandlogicalintheirapproachtothings,andwi

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