Chapter 5 Managing Across Cultures Car Culture Whos

Chapter 5 Managing Across Cultures

Car Culture: Who’s the leader? ¡ ¡ Chart p. 140 http: //www. bloomberg. com/news/2 012 -09 -04/china-slowing-auto-sales -still-eclipse-u-s-japan-germanycars. html

“Empower and invest in local communities” 4 Strategic Dispositions 1) Ethnocentric. WHS is seeking to do this strategic method by sending EE’s to other countries with their values & interest, to set up the plant 2) Polycentric. WHS may eventually implement this method by hiring & promoting citizens that are in the host country, costs are lower, EE’s know culture

“Localize manufacturing with enough demand” 4 Strategic Dispositions 3) Regiocentric. WHS could hire those from a specific region of a country for key positions, could be from host or 3 rd country, may face cultural differences 4) Geocentric. WHS probably won’t venture this disposition, collective of best in the field around the world for key positions

Meeting the Challenge ¡ Why do MNC’s stay committed to Globalization Imperative? Trompenaars’s Approach for Cultural Dimensions & Advertising ¡ Figure 5 -1 p. 144 ¡

5 of the 10 Key Factors for MNC Success p. 145 ¡ ¡ ¡ Visioning themselves as a MNC Develop strategies=$$ for other firms Operate as 1 large org vs many small Allow outside directors in active role Develops a system, keeps all informed about political changes worldwide, act quickly

Cross-Cultural Differences and Similarities ¡ Parochialism- Viewing the world through one’s own eyes & perspectives Simplification- Exhibiting the same orientation/ways toward different cultural groups ¡ Table 5 -2 p. 147 ¡

Are there similarities across cultures? Studies showed yes, but these are controlled studies ¡ Russian and Korean ¡ Differences across Cultures? ¡ HAIRL system of appraisal & Shell Oil ¡

Figure 5 -2 p. 151 HRM and Managers need to know the difference between countries ¡ Must understand the local environment, cultural differences to be addressed, no stereotyping or assumptions ¡

Doing Business In China ¡ ¡ ¡ Aka- (PRC)- People’s Republic of China Primary Criterion= Technical competence Punctual, patience, numerous meeting w/high cancellations, Guanxi (pronounced guangshe), good listener, collective society, less animated, reserved, no boisterous behavior, maintain greater physical distance

Doing Business in China 8 Cultural Highlights p. 155 ¡ Family First, but financial and material well-being is rising, workplace harmony, personal wellbeing services ¡

Doing Business in Russia 12 Opportunities ¡ ¡ ¡ Build personal relationships Local consultants Consider their business ethics Be patient Stress exclusively Personal relations ¡ ¡ ¡ Financial info personal Research the company Stress mutual gain Clear terminology Don’t be too quick Show benefits of if the deal is adhered to

Doing Business in India. Their customs ¡ ¡ ¡ Be on time No personal questions Titles are important No public display of affection Ok to bargain for goods/services ¡ ¡ Don’t use finger to point but the chin and palm down is beckoning Use right hand to accept things & eat Namaste to greet Be polite/ courteous

Beijing, here we come! p. 165 3 Questions ¡ Teams will be chosen to answer ¡