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Chapter 6

MANAGING ACROSS CULTURES

6-1
Strategies for Managing Across
Cultures
 Globalization - the production and
distribution of products and services of a
homogeneous type and quality on a
worldwide basis
 National responsiveness- the need to
understand the different consumer tastes
in segmented regional markets

6-2
Globalization Vs. National
Responsiveness Matrix
National Responsiveness

High Low

High globalization Mixed


Globalization

Low Mixed National


Responsiveness

6-3
Parochialism and
Simplification
 Parochialism- the tendency to view the
world through one’s eyes and perspectives

 Simplification- the process of exhibiting


the same orientation toward different cultural
groups

6-4
High Vs. Low Context
Cultures
High Context Low Context
 long lasting  relationships are short
relationships in duration
 implicit communication  explicit communication
 loyalty to people of  authority is diffused
authority  written agreements
 spoken agreements  ousiders are
 outsiders do not gain encouraged to join inner
entry easily circle
– JAPAN – U.S.

6-5
General Similarities Across
Cultures
 Managerial behaviors in Russia
– communication
– HRM
– traditional management
– networking
 Application of O.B. Mod. in Russia
 Organizational commitment in Korea

6-6
General Differences Across
Cultures
 HRM activities
– labor laws
– wages
– vacation time
– maternity leave
– compensation
– group Vs. individual incentives

6-7
Doing Business in China
 Emphasis on trust and
mutual connections
 Meetings start with small
talk
 Host indicates when
meetings begin and end
 Slow in forming a an
action plan, but stick with
decisions once made
 Reciprocity is important
 Negotiations are often
carried out through
intermediaries to reduce
the risk of losing face

6-8
Doing Business in India
 Punctuality is important
 No personal questions
 Titles are important
 No public displays of
affection
 Beckoning done with the
palm turned down
 When eating or accepting
things, use the right hand-
the left is considered
unclean
 The namaste gesture can
be used to greet people
 Bargaining for goods and
services is common
6-9
Doing Business in Russia
 Build personal
relationships with partners
 Use local consultants
 Consider business ethics
 Be patient
 Stress exclusivity
 Face to face
communication is
expected
 Keep financial information
personal
 Research the company
 Stress mutual gain
 Clarify terminology
6-10
Doing Business in France
 Use a quick hand shake with some pressure in the
grip
 Punctuality is extremely important
 During a meal, small talk is acceptable, but personal
questions and the subject of money are never brought
up
 Great importance is placed on neatness and taste

France

6-11
Doing Business in Arab Countries
 Never display feelings of
superiority
 Do not take credit for joint
efforts
 Efforts to sidestep red
tape can be regarded as
disrespect for legal and
government institutions
 Connections are extremely
important
 Patience is critical to
business transactions

6-12