Decision Makers Across
Cultures
Shao Guangqing
Outline
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Introduction
Two Types of Decision Making Processes
Steps to the Rational Decision Process
Two Basic Types of DMBs
Two Contingency DMB Frameworks
A Case: Decision-making in Japan
Introduction
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Often people from one culture are surprised
by the decisions that people from other
cultures make.
Such surprises arise when people are
unaware of the factors that people in another
culture consider when evaluating the
attractiveness of an action.
This lack of awareness can lead to decisions
that undermine the cohesiveness of multicultural coalitions.
Two Types of Decision Making Processes
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The programmed process
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The non-programmed process
The programmed process
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the most commonly used style
entailing making decisions based on
precedent, custom, policies and procedures,
and training and development.
Advantage: reducing risk and stress for
decision makers because a basis for a
decision can be pre-tested for efficiency
Disadvantage: is that when an organization's
environment changes, the programmed
bases for decision making become obsolete
The non-programmed process
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entailing analyzing current data and
information, obtained through a systematic
investigation of the current environment, for
the purpose of identifying and solving a
problem
Steps to the Rational Decision Process
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(1) through investigation, define the problem,
(2) identify a minimum criteria on which to
base the decision,
(3) identify multiple viable choices,
(4) quantitatively evaluate each viable choice
on the basis of each criterion,
(5) select the optimum choice,
(6) implement the choice.
2 Basic Types of DMBs
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DMB=decision-making behavior
Authoritative
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involves one person deciding as to what should
be done and informing their subordinates. The
decision makers may consult their subordinates,
however, before finalizing them.
Participative
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involves asking the subordinates what should be
done and how so.
pros and cons
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The authoritative approach has the advantage that
decisions can be made quickly but the subordinates
may feel demoralized due to their lack of input.
Participative approaches have the advantage that
subordinates are much more likely to be satisfied
and their performance will benefit. The disadvantage
is that sometimes the participative approach is time
consuming as the decision process is slowed.
The approach that should be used relies heavily on
the culture.
Two Contingency DMB Frameworks
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There are two contingency DMB frameworks
that facilitate the process for cross-cultural
managers to decide which DMB will work.
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the country-related cultural factors framework
the universal factors models
Two Contingency DMB Frameworks
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The country-related cultural factors framework uses
the 5 dimensions of power distance, uncertainty
avoidance, individualism, masculinity
(Importance of ego goals), and long-term
orientation (importance of tradition).
The universal factors model posits that DMB is
influenced not as much by broad cultural factors as
by varying situational factors. Some of these
situational factors include subordinates' work
environment, individuals' motivation,
individuals' maturity level, and managerial level
and functions.
Decision-making in Japan
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