IHRM Cross Cultural Gender Issues IBUS 618 By

IHRM: Cross Cultural Gender Issues IBUS 618 By Felix Castuera Greta Van Everen Fan Yang Suguru Nakamura Omar Brodrick

Focus Areas n Felix- Women Expatriates vs. Men Expatriates n Greta- The Netherlands n Fan Yang and Suguru Nakamura- Japan n Omar- Women Expatriates: A Roadmap to Success

Advantages of Women Expatriates n n Accustomed to operating in a system in which the majority of power is held by men Personal characters that enabled them to function in an unfamiliar environment – Open minded, outgoing, flexible and adaptable, positive outlook on life, consensus-building, relationship orientation, and greater sensitivity to non verbal cues

Demographic Characteristics of Women Expatriates Source: International Journal of Human Resource Management Education HS Degree 8. 6% BS Degree 47. 1% Language Fluent in Second language 54. 3% Do not speak second language 45. 7% Marital Status Children Yes/No Living Alone Married/With 54. 3% Partner 45. 7% Yes 75% No 25% MA 32. 9% Ph. D 11. 4%

Position, Industry Characteristics, and Problems Encountered by Women Expatriate Source: International Journal of Human Resource Position Strategic Planning 52. 9% Sales Managers 20% HR and Training 18. 6% Financial Analyst 8. 6% Industry Electrical 37. 1% Service 27. 1% Chemical 15. 7% Other 12. 9% Tenure Over 2 years 45. 7% 1 year 27. 1% Less than 1 year 25. 7% Problems Encountered Culture 38. 7% Emotional Problems 25. 8% Political Climate 11. 3% Medical 8. 1%

Stereotypes of Woman Expatriates Source: Runzheimer Int’l Report n Overseas local males will treat females very much like they treat local females? – Local males do not mentally classify a foreign woman in the same way as they classify local women – Expatriate professional females have an advantage in being at first outside the local normal classification system – Newly arrived female expatriates looks, acts, and think in unique ways, thus, local male coworkers can’t or won’t fit her into their usual mental classification of “local female” co-workers

Continue n n So, woman expatriate is free to build a unique classification for herself in the mind of local people Local male co-workers might create performance barriers for the female expatriates? – Many women who encounter significant barriers are more likely to complain about their fellow expatriate male co-workers – American men erect the highest barriers because of their mentality remains grounded in the U. S.

Advantages of American Female Expatriates Accustomed to operating in male dominated environment n Learned to attain their goals through n – Influence – Collaboration – Sensitivity to the points of view of others

Liabilities for American Woman Expatriates n Being Single n Being Young n Being Americans – both local people and fellow expatriates often don’t know how to comfortably fit a single person into their social lives especially women – Tradition and wisdom associated with age is more valued in nonwestern cultures – American companies have the tendency to send young managers abroad – It makes other cultures uncomfortable and resistant – Expect seniority in rank is closely linked to with seniority in age – U. S. business culture – Task orientation, time oriented, competitiveness, and directness

Tips for Women Expatriates n n n Go for it Be assertive, persistent, proactive Ask for what you need and want Find a female mentor Use your resources Negotiate carefully before accepting anything Assess the workload before hand Do your own research Learn the local language Be yourself and Enjoy!

JAPAN 日本 Suguru Nakamura Fan Yang

Geography n n n Location: Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula Main islands: Honshu, Hokkaido, Kyushu, and Shikoku. Capital: Tokyo (http: //www. cia. gov/cia/publications/factbook/geos/ja. html)

Government n n n Type : Constitutional monarchy with parliamentary government Prime minister : Junichiro Koizumi since 2001 Legal system : modeled after European civil law system with English. American influence (http: //www. cia. gov/cia/publications/factbook/ geos/ja. html)

People n n Total population 127, 417, 244 Age structure 0 -4 years: 14. 3% 15 -64 years: 66. 7% 65 years and over: 19% Major religion Shinto and Buddhist 84% Other 16% Ethnic group Japanese 99% Other 1% (http: //www. cia. gov/cia/publications/factbo ok/geos/ja. html)

Economy Monetary unit : Yen n GDP : $3. 582 trillion n GDP real growth rate is 2. 7% n Unemployment rate : 5. 3% n labor force : 66. 66 million people (occupation : agriculture 5%, industry 25%, and services 70%) n (http: //www. cia. gov/cia/publications/factbook/geos/ja. html)

Social Background n High Masculinity Society: full-time housewife increases household stability. n Aging Society: u 25% of population are over 60 u Traditionally, female are expected to be responsible for children and elders. (Kimoto, K. “Labor Conditions for Women in Contemporary Japan”)

Working conditions Average monthly salaries : 300, 000 to 500, 000 JPY ($2, 560 to $4, 270 USD) n Japan also has a bonus system, which is a major part of the salary structure. n Japanese companies are required to register all employees on a group medical plan with the Japanese health care system. n

Female Economic Condition n Labor force participation Rate: Japan - 46% U. S. - 60% U. K. - 55% n n n 40. 2 % are part-time employees Female earnings is only 64. 9% of male’s Below the standards of developed nations

Female Labor Force Population Ratio

Corporate Background n Two Careers Tracks n. Employment Duration Differences

Labor Force Participation Rate § Percentage of working-age population employed (15 years or over) (ILO: Key Indicators of the Labor Market 2003)

Corporate Background Managerial Track Wage Increase Lifetime Employment Promotions Male

Corporate Background Assistant Clerical Works No Promotion Expected to Leave before 30 Female

% of Female Manager

Regulation Background n Ineffective EEOL (1985): Promoted equality, yet did not “forbid” discrimination. n Tax Deduction: Income Tax & Residential Tax deduction, if spouse’s salary is limited.

Part-Time Workers § Part-time employment as a percent of total employment (ILO: Key Indicators of the Labor Market 2003)

% of Female Part-time Employment by nation UN Statistics Division. http: //unstats. un. org/unsd/default. htm

Changing Situation n Reduction in life time employment: Increasing job mobility. n EEOL Amendment in 1997: Aggressively Prohibit gender discrimination. n Decreasing Full-time housewife population: Full-time housewife is now minority.

Female Labor Force Population Ratio

The Netherlands Greta Van Everen

The Netherlands: General Overview n Capital: Amsterdam n Government type: constitutional monarchy – PM: Jan Peter Balkenende – Queen Beatrix n Language: Dutch, Frisian n Currency: EURO € 1 € = $ 1. 28 n Population: 16, 318, 199 (July 2004 est. ) http: //www. cia. gov/cia/publications/factbook/geos/nl. html http: //www. koninklijkhuis. nl/UK/royal_house/members. html? koningin. html

Population Characteristics n n Amsterdam (735, 328), Capital; Rotterdam (593, 321), the leading seaport; The Hague (440, 900), the seat of government; Utrecht (234, 323), a transport and services hub. Encarta: http: //encarta. msn. com/text_761572410___0/Netherlands. html

Labor Force n 7. 5 million employed workers – – 73 percent work in trade and services; 21 percent are employed in industry, including manufacturing and mining; – and 3 percent work in agriculture, forestry, and fishing 1. n Total percentage of women in the workforce is 44%2. n Approximately one-third of Dutch workers belong to labor organizations. 1 Encarta: http: //encarta. msn. com/text_761572410___0/Netherlands. html 2 UN Statistics Division. http: //unstats. un. org/unsd/default. htm

Working in the Netherlands: Salaries and Vacations n The Average salary is from € 25, 000 to € 30, 000. – Salaries are usually paid at the end of each month. – Twice a year employees will receive an extra payment n The Average employee is entitled to 20 days of paid vacation per year. European Foundation for the Improvement of Living and Working Conditions

Industrial Relations Climate n Treated in Collective Agreements – which cover around 75% of workforce: – Childcare Arrangements: n No very well developed yet n Provision to switch to part-time Paid Maternity Leave: 16 weeks (4 -6 to be taken prior to the delivery) – Parental Leave n – Sexual Harassment: n Consist of complaints procedures and prevention policies – Legal protection from discrimination European Foundation for the Improvement of Living and Working Conditions Federation of European Employers: http: //www. fedee. com/condits. html#The%20 Netherlands

Doing Business in the Netherlands: Cultural Aspects n Achievement Society/Egalitarian Society n Consensus n Directness n Power Distance – Specific Culture – Status and respect are gained through education and personal skills – Decision-making process are complex: everybody needs to be heard (meeting are held for hours) – Politeness is considered a waste of time, as unpleasant messages may be hidden – Professional and private lives are “strictly separate”. Clear separation between public and private lives. Intercultural Communication Comparative Management

Hofstede’s Dimension “This relatively low MAS Index value may be indicative of a low level of differentiation and discrimination between genders. In this culture, females are treated more equally to males in all aspects of society. This low Masculinity ranking may also be displayed as a more openly nurturing society” Index Scores PDI=38, IDV=80, MAS=14, UAI=53, LTO=44 Data Obtained: (http: //www. geert-hofstede. com/hofstede_netherlands. shtml)

Question for the Audience? Based on what we have seen so far, do you think that the gender pay gap in the Netherlands is lower than the average in the rest of the E. U. ?

The Gender Pay Gap in Europe Commission of the European Communities (2005).

The Netherlands: A Dominant Male Corporate Culture n 70% of Dutch Women work Part-time 1 Number of Women on Dutch Boards: 7%2 – 60% of which are foreigners, primarily from UK or USA. n Less than 5% of Professors in Dutch Academic Institutions are women 2. n 1 Gunn, 2 van Natasha. Where do all women go? der Boon Mary. Glass Ceiling in the Netherlands.

Key Barriers to Women on Domestic Labor Market n Dutch culture feels that parents should take care of their children 1. n Mothers typically choose to stay home or to work part time 2 n Even when children are older Dutch women “would rather take painting lessons” 3 Sloan Work and Family Research Network. 3 van Der Boon Mary. Glass ceiling in the Netherlands. 1 2 Sloan

Share of part-time employees among women and men employees, in EU Member States - 2004 Commission of the European Communities (2005).

Key Barriers to Women on International Assignments n Lack of experience in managerial positions. n Assumption that women do not want to be International Managers n Refusal of some companies to send women abroad n Belief that foreigners’ prejudices might have a negative impact on women performance. Van Der Boon – Forget the Myths

Current Issues for Dutch Expatriates n n The vast majority of Dutch Expatriates are men. The majority of trailing spouses are women – 50% of which have a career in the home country. – It is hard for these women to obtain working permit in host countries – The Permits Foundation based in the Hauge is currently lobbying to make it easier for women to obtain these permits. Hamm Jennifer. Expatica

KIT Intercultural Communication n Provides Consultancy services that helps expatriates to work effectively in an international context. n Clients: Management and Senior Staff Members of Public and Private organizations. – – – ING Bank NV KLM Philips Shell Unilever http: //www. kit. nl/frameset. asp? /about_kit/default. asp& frnr=1&

KIT Training Programs n Group Target “We inform and coach anyone who is going to work abroad, long term or short term” n n Objective: n n n businessmen/women; expatriates in general; their partners and children. Participants get to know culture and communication patterns of new country. Focuses on cultural differences between home country and host country Methods: n n n awareness of one's own intercultural competencies; interactive training modules in how to do business in the new culture; workshops and lectures on the political and economical background of the new culture; workshops on norms and values in day to day life; partner workshops and partner career workshops; re-entry workshops. http: //www. kit. nl/frameset. asp? /about_kit/default. asp&frnr =1&

Women Expatriates: A Roadmap to Success Omar Brodrick

A Road Less Traveled n Expatriate selection from middle to senior management – Generally male, middle-aged, and married with children – Women equal only a small proportion n Women are under-represented in expatriate positions – 3% in 1980 s – 5% in 1990 s – 15% in 2000 (Women in Management Review, 2004)

A Road Less Traveled n n Japan- 5% 1 Europe- 16%1 Netherlands 1 Cendent International Assignment Survey, 2001 2 Catalyst Women in Business Study, 2000 n US- 13%2

Global market requires MNCs to Optimize Talent Pool n Women equal near 50% of total world population n Number of skilled, educated workers declining as demand increases – Particularly in Developed countries n Need to recruit and retain the most qualified managers to effectively compete on a global scale – Can no longer limit or exclude talent pool based on gender or other personal characteristics (Sloan Management Review, 1992)

Roadblocks for Women Expatriates n Unfavorable bias in selection process n Unfair belief that host countries cultural norms will restrict women n Headquarters hold women to lower expectations in overseas assignments (Woman in Management Review, 2002)

Bias in Selection Process n Men make most selection decisions (US) – Hold traditional views and stereotypes towards women in leadership roles 3 n n Women do not “fit” the criteria for effective international managers (European) – Emphasis on interpersonal, co-operative, and intuitive styles of management 4 Influence of other critical selection systems – Use of closed/informal system seen to create gender bias in recruitment 4 3 International Journal of Management, 1999 4 Thunderbird International Business Review, 2002

MNCs Must Develop Selection Process n Study and Conduct Research on Women (US) – Substantial facts over stereotypes and “myths” 5 § Women more conceptual fit for model- 根回し“binding the roots of the trees” n Convert to open/formal systems (European) – Consistency in expatriate selection with formal criteria to reduce discrimination of women 4 5 Journal on Managerial Psychology, 2003 4 Thunderbird International Business Review, 2002

Cultural Norms will Restrict Women not “Internationally mobile”(US) – Clients outside the US are more comfortable working with men 6 n Female expatriates face prejudice from foreigners 4 – Excluded from business interactions and minimal participation 6 American Compensation Association, 2001 4 Thunderbird International Business Review, 2002

MNCs Must Develop a Geocentric Mindset n Based on “gender”, “career, ”and “culture”as a framework (US/Netherlands in Asia) – Over time “career” emerges and leads to a re-composition of perception 6 n Viewed as foreigners , not just women (US in Japan) – Not subject to same cultural constraints as local women 7 6 Leadership and Organization Development Model, 2003 7 International Studies of Management and Organization, 1994

Lower Expectations in Overseas Assignments n Biggest obstacle faced is home country managers (US) – Low performance expectation held by headquarters 8 n World of business dominated by men – Skeptical on success n 8 The 9 Implicit prejudice through all stages of expatriation 9 Journal of World Business, 2000 9 The Journal of Management Development, 1994

MNCs Must Develop Support Mechanisms n Give female expatriate every opportunity to succeed – Accord full status at outset, not temporary or experimental n 97% from survey reported success in expatriation experience (US/Europe in Asia) n Recognize differences and begin steps towards equity (The Journal of Management Development, 1994)