Management across cultures Table of Contents Chapter 1 - Introduction .................................................................................................... 5 The changing global landscape .................................................................................................. 5 From intermittent to continuous change ....................................................................................... 5 From isolation to interconnectedness ............................................................................................ 5 From biculturalism to multiculturalism .......................................................................................... 5 Multicultural competence & managerial success ....................................................................... 5 Manager’s notebook – developing multicultural competence .................................................... 6 Chapter 2 - Global managers: challenges and responsibilities ............................................ 7 Traditional management models .............................................................................................. 7 Context of global management ................................................................................................. 7 Rethinking management models............................................................................................... 7 Managerial roles & practices across cultures ................................................................................. 7 Matching managerial roles to local situations................................................................................ 8 Diversity in global assignments ................................................................................................. 8 Expatriates ...................................................................................................................................... 8 Frequent flyers................................................................................................................................ 8 Virtual managers............................................................................................................................. 8 Manager’s notebook – a model for global managers ................................................................. 8 Chapter 3 – Cultural environments .................................................................................. 10 Culture, socialization, normative behavior .............................................................................. 10 What is culture?............................................................................................................................ 10 Characteristics of culture .............................................................................................................. 10 Descriptive models of culture ................................................................................................. 10 Models of national cultures (summary p. 54) .............................................................................. 10 Core cultural dimensions .............................................................................................................. 10 Culture and institutional environments ................................................................................... 11 Cultural complexities and contradictions................................................................................. 11 Cultural diversity and multiculturalism ................................................................................... 12 Manager’s notebook – working across cultures ....................................................................... 12 Chapter 4: organizational environments .......................................................................... 13 organizations + environments ................................................................................................. 13 stakeholders & global strategies ............................................................................................. 13 Organizing for global business ................................................................................................ 13 regional organizing models ..................................................................................................... 14 investor model of organizations (US, UK, Canada) ....................................................................... 14 Family model of organization (e.g. China) ............................................................................... 14 network model (e.g. Japan) .......................................................................................................... 15 Mutual benefit model of organization (e.g. Germany, Netherlands, Scandinavia) ..................... 15 Control, participation & decision making ................................................................................ 16 centralized decision-making (USA; UK, Canada, …) ...................................................................... 16 consultative decision making (e.g. Japan) .................................................................................... 16 collaborative decision-making ...................................................................................................... 16 Corporate culture ................................................................................................................... 16 Manager’s notebook .............................................................................................................. 17 Chapter 5 – Communicating across cultures .................................................................... 18 Interpersonal communication ................................................................................................. 18 Cultural screens on interpersonal communication ................................................................... 18 Culture, cognition, communication ......................................................................................... 18 language + linguistic structures – choose your words carefully ................................................... 18 Selective perception: eye of the beholder ................................................................................... 19 Cognitive evaluation ..................................................................................................................... 19 Culture logic: assumptions about shared meaning ...................................................................... 19 Culture + communication protocols ........................................................................................ 19 Appropriate topics for discussion: hold your tongue ................................................................... 19 Message formatting...................................................................................................................... 19 Conversational formalities: understand etiquette ....................................................................... 20 Acceptable behaviors ................................................................................................................... 20 Manager’s notebook .............................................................................................................. 20 Chapter 6: Leading global organizations .......................................................................... 21 Dimensions of organizational leadership ................................................................................. 21 Contemporary approaches to cross-cultural leadership ........................................................... 21 Universal approach: leader as leader ........................................................................................... 21 Normative approach: leader as global manager .......................................................................... 21 Contingency approach: leader as local manager.......................................................................... 21 Limitations of contemporary approaches ................................................................................ 22 Leadership as a cultural phenomenon ......................................................................................... 22 culture + leader expectations ....................................................................................................... 22 GLOBE leadership study .......................................................................................................... 22 Women leaders ...................................................................................................................... 23 Leadership in China & the west ............................................................................................... 23 Manager’s Notebook .............................................................................................................. 23 Chapter 7: negotiating global partnerships ...................................................................... 25 Negotiations and global partnerships ...................................................................................... 25 Benefits of global partnerships ..................................................................................................... 25 Drawbacks..................................................................................................................................... 25 Preparing cross-cultural negotiations ...................................................................................... 25 selecting the right partner ............................................................................................................ 25 developing a negotiating strategy ................................................................................................ 25 Managing the negotiation process ............................................................................................... 26 negotiating strategies + processes .......................................................................................... 26 competitive vs problem-solving strategies ................................................................................... 26 bargaining + concessions .............................................................................................................. 26 managing conflicts + compromise ........................................................................................... 27 process strategies for resolving conflicts...................................................................................... 27 people strategies for resolving conflicts ....................................................................................... 27 managing agreements + contracts .......................................................................................... 27 mutual trust and contract interpretation ..................................................................................... 27 doctrine of changed circumstances .............................................................................................. 28 Manager’s notebook .............................................................................................................. 28 Chapter 8: Managing ethical conflicts .............................................................................. 29 Conflicts over beliefs + values ................................................................................................. 29 conflicts between beliefs and institutional requirements......................................................... 29 Ethical global leader ............................................................................................................... 29 Ethical guidelines for global managers .................................................................................... 29 bribery + corruption...................................................................................................................... 30 Fair employment practices ........................................................................................................... 30 Environmental stewardship .......................................................................................................... 30 Manager’s notebook .............................................................................................................. 31 Chapter 9: Managing work & motivation ......................................................................... 32 World of Work ....................................................................................................................... 32 Work values & goals ..................................................................................................................... 32 Work and leisure........................................................................................................................... 32 Culture and psychology of work .............................................................................................. 32 Psychological contracts................................................................................................................. 32 expectations, equality, equity ...................................................................................................... 32 Causal attributions ........................................................................................................................ 33 Risk & uncertainty......................................................................................................................... 33 Managing incentives & rewards .............................................................................................. 33 Financial incentives and distributive justice ................................................................................. 33 Employee benefits ........................................................................................................................ 34 Gender, compensation, opportunities ..................................................................................... 34 Manager’s notebook .............................................................................................................. 34 Chapter 10: Managing global teams ................................................................................ 35 Global teams .......................................................................................................................... 35 advantages and drawbacks of global teams ................................................................................. 35 Global team synergy ..................................................................................................................... 35 Co-located & dispersed global teams ...................................................................................... 36 Special challenges of dispersed global teams........................................................................... 36 Lack of mutual knowledge & context ........................................................................................... 36 overdependence on technology ................................................................................................... 36 loss of useful details ..................................................................................................................... 36 Managing dispersed global teams ........................................................................................... 36 Managing tasks and team processes ....................................................................................... 37 Managing team tasks .................................................................................................................... 37 managing team processes ............................................................................................................ 37 Leadership & global team-building.......................................................................................... 37 Team leader responsibilities ......................................................................................................... 37 Building mutual trust .................................................................................................................... 38 Manager’s notebook .............................................................................................................. 38 Chapter 1 - Introduction in today’s global world, a huge amount of knowledge is required to succeed in a business environment cultural contradictions are growing much is matter of perspective Japan can be seen as far east from Europe while Japanese might see Europe as far east the world is not getting smaller but faster The changing global landscape characterized by sense of energy, urgency, opportunity changes towards o continual change o increased interconnectedness o multiculturalism there is a perpetual dynamic equilibrium dark side: endless conflicts with partners/suppliers/competitors/… o > 50% of international joint ventures fail after fits five years of operation o problems can have serious consequences for firms From intermittent to continuous change world is becoming more unpredictable, personal relationships seem to be only safe haven across whole environment, new technologies are developed constantly technology is driver of globalization o affordable computers + communication technologies fueled this change example: mobile internet access in Vietnam has grown from 12% to 44% of population in a decade From isolation to interconnectedness major changes in environment occur regularly o collapse of banking system, growing power of developing countries o Russia is trying to overcome corruption o arab nations struggle for democracy not process itself but dimension is stunning: global FDI increased from $23bln (1975) to $1.5trln (2008) From biculturalism to multiculturalism managers need to be able to succeed in many cultures not just one o not long-term assignments in one country but assignments in many countries challenges o unclarity about which culture to adapt to – multicultural teams make decision hard o multicultural encounters occur on short notice and leave little time to learn about other culture o multicultural meetings occur often just virtually Multicultural competence & managerial success managers wanting to succeed in globalized world need to have special skills key challenge: not all countries & cultures will react in same way to globalization managers need to learn more about the world important factor: shift in geopolitics days of hegemony are over o leaders cannot focus on single markets/currencies/… anymore problem for managers: failure to make best use of resources multicultural competence – ability of managers to develop perspectives stretching beyond borders o it is about how much of it managers possess Manager’s notebook – developing multicultural competence becoming a global manager is a process key to the result is combination of managerial skills with multicultural competencies multicultural competence – getting things done through capitalizing on cultural diversity o asks the question: what can we learn from other to improve our abilities to function in a multicultural world? managerial competence planning, organizing, directing, coordinating, controlling multicultural competence understanding and working effectively across cultures global management skills integration + application of managhement and cross-cultural skills characteristics: commitment to diversity, consciousness, valuing diversity, focus on continuous improvement, long-term focus three stages o (1) understand the challenges facing global managers o (2) understand context in which global managers operate o (3) develop specific global management skills Chapter 2 - Global managers: challenges and responsibilities people seem to have little understanding of countries and cultures being to a place ≠ learning about a place o gaining understanding is hard increasing speed of business is making understanding even harder Traditional management models definitions of management are very uni-dimensional – management is the coordination of resources to achieve objectives efficiently & effectively o variation around key underlying definition can be found fayol – administrative structures Taylor – emphasis on operations management to improve performance Weber introduced bureaucracy & gave suggestions on how to structure organizations contemporary definitions: no change from original ideas o management involves coordinating & overseeing the work activities of others so that their activities are completed efficiently and effectively o management is the process of assembling and using sets of resources in a goal-directed manner to accomplish tasks in an organizational setting ten managerial roles p. 21 Context of global management definitions seem to ignore challenges facing global managers in performing tasks across cultures managers have to ask themselves how people from different cultural backgrounds would handle the same problems globalization pressures add to problem stereotypes of managers of certain cultures are becoming blurred success requires cross-cultural communication, collaboration, cooperation manager needs to make this happen context of global management shows how differences in environment can influence management – three areas o cultural environment – beliefs, values, worldviews o organizational environment – stakeholders, strategies, structures o situational contingencies – people, goals, formal roles, locations Rethinking management models understanding managerial roles without understanding of context (culture, organization, … ) is pointless Managerial roles & practices across cultures two issues regarding expectations with regard to managerial roles o what is the ideal managerial role o what is the real role what managers do in real life perceptions of managerial roles differ highly p. 26 managers of different cultures have different perception of role themselves o British managers are more participative than French/German ones o British delegate, French/Germans prefer authoritarian approach o Japanese are authoritarian but listen content of managerial roles can vary heavily dependent on the culture IMPORTANT: check p. 29 Matching managerial roles to local situations managers need to understand own management style can they fulfill their role in other environments successful managers seem to develop cultural awareness & adapt management style o sometimes not fitting the culture might be a crucial asset (e.g. for change) o key skill: conform with environment enough not to be rejected challenge: find balance between assimilation & being different Diversity in global assignments engaging with people from different cultural backgrounds can be great learning experience global manager – someone working through/with people across national and cultural boundaries to accomplish global corporate objectives o key element: global managers are different from traditional managers global worldview, ability to navigate cultural differences, seek partnership characteristics o expatriates – require deep knowledge of region o frequent flyers – broad knowledge of cultural differences & processes in general o virtual managers – work largely through computer & IT Expatriates traditionally most common long-term relocation reasons o parent-company representation o developmental opportunities for managers o filling gaps in local skill-pool it can be hard to find suitable people for such positions o setting up a new household somewhere else is often disliked great opportunity to advance career, make money, gain more knowledge Frequent flyers need for expatriates seems to be decreasing managers sometimes spend more time in the air than on the ground assignments o short duration can make assessment of results easier employees are more willing to accept such opportunities problem: managers do not have enough time to adjust to local context + pressure to perform is high Virtual managers improved technology has made communication easier key: manager’s ability to use technology to build success Manager’s notebook – a model for global managers how to best understanf the environment 1. 2. 3. 4. targeted goals and objectives what is the manager trying to accomplish contextual demands and constraints can limit or enhance actions managerial options & actions what is done & how is it done global management skills necessary to accomplish include communication across cultures, taking leadership roles, negotiating global agreements, managing in ethical/socially responsible way, … Chapter 3 – Cultural environments different cultures can have very different perspectives on people o Talmudic wisdom – if cultures differ so do perceptions, values, judgments o Chinese guy: all people are same just habits & environments differ o Wharton prof: cultures are becoming more interconnected convergence in some aspects, divergence in others Culture, socialization, normative behavior cultural environment incorporates much of the macro environment five basic aspects of cultural context o basic concept of culture o different models for describing cultures o culture & institutional influences o cultural complexities o cultural diversity What is culture? culture – collective programming of the mind distinguishing members of one group from another (Hofstede) collection of beliefs, values, behaviors, customs, attitudes distinguishing people from one society from another (Kluckhohn) many more p. 49 combination: culture is addressing the questions “who are we, how do we life, how do we approach work?” Characteristics of culture is shared by members of a group and sometimes defines membership is learned through membership in a group/community influences attitudes & behaviors of group members culture teaches us what is (un)acceptable and influences normative behavior relationship between human, cultural, personal preferences: o personality is influenced by learned & inherited attitudes + behaviors culture influences these o culture is then influenced by human nature culture limits acceptable behavior + determines peoples’ actions Descriptive models of culture Models of national cultures (summary p. 54) models from Hall, Hofstede, Trompenaars, GLOBE o Hall: dimensions of context, space, time o Hofstede: six dimensions o Trompenaars built on Hofstede’s model o GLOBE identifies nine dimensions models force managers to consider implications of cultural differences Core cultural dimensions find common agreement amongst researchers power distribution (hierarchical vs egalitarian) social relationships (individualistic vs collectivistic) environmental relationships (mastery-oriented vs harmony-oriented) – relationships on societal level time and work patterns (monochromic vs polychromic) – how do ppl organize their time, what is the work-life balance uncertainty and social control (universalism vs particularism) – how do societies try to reduce uncertainties; do they focus on rules or relationships? Culture and institutional environments laying-off employees is very different around the world o different legislations influence employers’ abilities culture + institutional environments go hand in hand o institutional environment – legal-political environment encouraging or discouraging firms to follow certain strategies differences can be seen when comparing US and Japanese strategies o US: short-term profit institutional environment: company aims to increase shareholder wealth, government is principal regulator o Japan: increasing market share environment: cooperative relationships between government and businesses, long-term orientation is valued normative beliefs and values (societal beliefs, norms, values support what society assumes to be correct) institutional requirements (reinforce societal values + norms) goal social control, stability, continuity (encourage correct actions consistent with societal needs though social or legal sanctions) Cultural complexities and contradictions individuals from same cultures may use different approaches to deal with similar challenges stereotyping entire cultures is misleading context always needs to be considered example: equal opportunities at workplace o some cultures have very different roles for men and women people operating in global arena seem to overcome cultural constraints – two perspectives o believers: culture matters practices taken from one place will not just work at another one o non-believers: people are different in general other factors are at least as important as culture key requirement: ability to understand own culture + its implications on own actions applying simple cultural frameworks on complex issues can make understanding easier but mislead when interpreting reality limitations to view of cultures as homogeneous o cultures are stable but change over time – cultures are seen as stable but change all the time, managers need to be aware of such changes o cultures are homogeneous but allow for individuality – while there are relatively common traits in societies, that does not mean that there are serious deviations Australians are seen as individualists but there are Australian collectivists people might act differently based on context o cultures are often classified into general categories that overlook subtle but important differences o cultures can explain but nor predict behavior – over-reliance on cultural insights can exaggerate assumptions o cultures represent a unified whole but also consist of multiple + conflicting subcultures – people of one culture often belong to multiple subcultures based on education, profession, normative beliefs, religion, … managers need to be able to focus on specifics of situation rather than just cultural variables Cultural diversity and multiculturalism culture can matter differently in different situations three challenges o there is more than one culture involved in an interaction and it is not clear which one dominates o people often behave differently in cross-cultural situations than they do in intra-cultural situations o cultures are fragmented and even within a particular cultural environment different behaviors are observed in different subgroups Manager’s notebook – working across cultures strategies to deal with strange behaviors of others (1) avoid cultural stereotyping o keep in mind that descriptions limit information about cultural diversity o cultural descriptions should not evaluate o descriptions should be accurate o should be considered “best guess” o descriptions need to be adjusted over time o additional caution when comparing cultures is necessary small differences might have large impact large differences might be easily overcome (2) view cultural differences in neutral terms o rating cultural differences as bad is not helpful o prediction of interaction of differences between cultures is important o end result of negotiations depends on interactions, actors, organizations involved o cultural friction – resistance + conflicts that need to be dealt with when two cultures com in contact (3) prepare for the unexpected o managers need to be able to adjust to particular situations! o several useful skills: self-awareness, empathy, information gathering, information integration, behavioral flexibility, mindfulness Chapter 4: organizational environments business success does not only lie on right people but also getting the best out of people different stakeholders different strategies different structures organizations + environments organization – system of consciously coordinated activities of multiple people aiming to achieve common objective organizations need both efficiency + effectiveness in getting to goals there are no universal solutions to organizational/management problems o organizations function according to implicit mental models of members which are culturally determined micro environment – area in which managers work o in micro environment, organization provides managers with rules/policies/procedures to guide actions organizational culture may accept or reject national norms managers need to understand organizational environment in which they work: stakeholders & global strategies strategic management cycle – assumes that strategy making follows simple cycle o research suggests its more complex organizational structure can influence strategy, strategy can influence structure stakeholders can also have major impact on strategy + mission o they place demands, expectations + constraints on organization in some regions (Korea, Argentina, UK, US) stakeholders are usually very centered (customers, governments, investors) while in other regions (Germany) there are more powerful stakeholder groups o Mittelstand firms – employees + local communities are important as well Organizing for global business organizational design usually changes over time (1) domestic organization design – international activities are just side effect of domestic activities o most commonly found when organizations start exporting products that have made it in the home market o export departments can be set up to handle exports o international divisions are eventually founded close to principal foreign market(s) (2) global organization design – employed when international activities become more prominent appropriate organizational design helps integrate four types of strategic information o area knowledge - understanding local markets + social conditions o product knowledge – understanding local customer needs + possible markets for products o functional knowledge – local access to expertise in functional business areas o customer knowledge – understanding of each customer’s particular needs global matrix design – blend of global functional + global product design o similar to matrix system, each manager has two supervisors, etc. web-based global network designs – breaks organization into groups with loose links o can also be used to coordinate between different organizations other types of design: p.90 understanding relationship between global strategy + organizational design is critical to managers provides information about priorities of organization regional organizing models local + regional organizational trends are great way to gain information o who is the primary beneficiary, who holds power/influence, … four main common regional organizational models can be identified o investor model o family model o network model o mutual benefit model investor model of organizations (US, UK, Canada) most common form in anglo cluster common traits (US) o mastery-oriented – stressing achievement/responsibility, control over environment, linear approach to decision making, respect for rules o powerful CEOs o professional management – reliance on outside, professionally trained managers o fluid organization design – many alliances + partners o low employee job security – employees are seen as means of production and less as valued member of organization there is large variance within the cluster o UK firms are less tolerant of power aggregation + more liberal than Americans o Canadians are more humble, believe in collegiality, are more formal & polite, and believe in collective responsibility of society Family model of organization (e.g. China) centrality of family members in routine operations of firm o multiple family members hold different positions in hierarchy o family members are primary beneficiaries Confucius wrote guide for interpersonal relationships in everyday life five cardinal virtues o filial piety o absolute loyalty to superiors o strict observance of seniority o subservience to superiors o mutual trust between friends & colleagues social patterns reinforce cardinal virtues o guanxi – strong personal relationship based on the continuous exchange of favors utilitarian not personal o face – dignity, self-respect, prestige social action can only be conducted if no party loses face o rank – hierarchy + differences between class members need to be respected o harmony – within circle of acquaintances, there needs to be harmony not harmony amongst equals but unequals gong-si - typical term for Chinese companies, characteristics o flat & informal structure – little formal structure, few standard operating procedures, little specialization personal relationships are likely to take precedence o relationship-based – decisions are made based on intuition or long standing relationships o family management o business as private property – business is regarded as property of core family reluctance to share ownership with outsiders o family revenue – each family member contributes to common fund they have a right for a share but some money is for family as a whole network model (e.g. Japan) hierarchy is key authority is reciprocal o commands are top-down o those exercising power must look after welfare of subordinates Japan = collectivist groups take precedence over individuals o group work is emphasized, seniority is determinant for rewards harmony is crucial do not harm natural environment more than necessary, emphasize context keiretsu as unique approach to organizations serving members + country o keiretsu – consists of a network of affiliated companies (kaisha) forming alliance o usually focused around bank(s), lead manufacturer, trading company, all overseen by presidents of major group companies common features o internal financing – financing will come from inside the group, as well as marketing research & legal advise o trading companies (sogo shosha) – provide members with access to global markets + deliver economic intelligence o weak executives – more consensus builders than decision-makers o long-term employees- employees as fixed nor variable cost o enterprise unions – more associated with companies than in the west Mutual benefit model of organization (e.g. Germany, Netherlands, Scandinavia) based on collective participation + common good Germans appear to be conservative, formal, polite negotiations are based on extensive data analysis + communication is explicit general traits o supervisory + management boards – supervisory board (Aufsichtsrat) needs to ensure that long-term objectives are met Aufsichtsrat oversees Vorstand (management board) which is responsible for actual management o co-determination + work councils – employees have enhanced power at any organizational level works council are represented on boards o Meister – managers are more respected for what they know rather than who they are o technik – technical competence available in Germany Control, participation & decision making twin issues of management control & employee involvement are at heart of many disagreements three classifications based on amount of participation centralized decision-making (USA; UK, Canada, …) found in anglo cluster management identifies problems & analyzes/resolves them decisions are passed down in hierarchy o implementation is slow as workers need to be convinced similar to process in gong-si o supervisors/owner-managers determine problem o rapid implementation is possible due to loyalty and fear of non-compliance consultative decision making (e.g. Japan) problem solving is based on consensus up and down the hierarchy o system is called ringi-seido group of workers/supervisors will try to find solution to problem o if first implementation is successful, employees will approach the managers for more input nemawashi – preparing the roots for tree planting (name of the process) o if a proposal is properly prepared, it should be successful once there is informal consensus, formal proposal goes up chain of command two contradictory processes are involved in decision making o tatemae – doing the right thing according to norms o honne – saying what oneself thinks is right/wrong process might be slow but leads to a lot of agreements collaborative decision-making (1) problems are identified through job experience & sophisticated control processes (2) lower-level workers try to identify reasons & possible solutions (3) department heads, section chiefs, supervisors meet to discuss & draft proposal (4) management discusses problems & solutions and makes decision outcome is likely to be accepted throughout whole organizations, unions might resist Corporate culture displays behavioral manifestation of organization design cultures reflect norms, values, and approved behaviors can either replicated or reject national culture values & norms three aspects to identify corporate culture o symbols & behaviors – observe manifestations of culture through presence of artifacts & patterns of behavior o power distribution – understand how person can obtain, maintain, or lose power shows what company really values o problem-solving processes – how does organization confront problems Manager’s notebook organizations are complex entitites + not easily understood globalization requires diversity of answers appropriate organizational design usually evolves over time corporate culture reflects norms/values/approved behaviors creates microenvironment in which national culture is either rejected or reinforced three general management strategies o (1) understand the relationships between stakeholders, strategies, structures social pressures + legal environment employees, local communities, government each company experiences unique relationships strategy + structure influence each other cultural differences can impact strategy-structure relationship o (2) understand the characteristics of local work environments decision making processes – primarily, principal constrains & employee involvement need to be understood local organizational culture – can limit and encourage behaviors influences possible success significantly o (3) learn about other organizations by better understanding the own – generalizing based on own firm can be difficult three recommendations for analysis managers must develop understanding of cultural trends, organizational patterns & management styles in own country they must develop sufficient insight into other countries & cultures managers must develop their management & multicultural skills so they can bridge between cultures Chapter 5 – Communicating across cultures communication = conveying meaning to others o communication within one culture might be hard, communication across cultures is even harder most serious challenge to global managers: communicating effectively across cultures principal purpose of communication across cultures: seek & develop understanding Interpersonal communication process: encode messages transmission decoding o noise – potential cross-cultural misunderstandings model ignores two major impediments: attention & interpretation suggestion: augment encode-transmit-decode model attention-interpretation-action model – illustrates processes followed by managers to communicate o attention – recipients must notice messages challenge: how to capture the attention o interpretation – recipient must interpret or decode message o action – recipient must decide whether and how to act decide on a response factors in communication environment can reinforce, attract, or distract attention o examples: competing messages, language used, visual/audible noise, … Cultural screens on interpersonal communication business + management rely on people’s willingness & ability to convey meaning between people the greater the understanding, the greater the opportunity for effective exchange two critical influences: two cultural screens (lenses) affecting interpersonal interactions + multicultural communication o culturally mediated cognitions – cultural influences on individual cognitions surrounding communication episodes o culturally mandated protocols – required behaviors screens often emerge as result of cultural differences culture routinely influences how people behave + think managers need to dig deeper + work hard to understand underlying cultural forces Culture, cognition, communication cognition – required to categorize + prioritize messages four common cultural mediated cognitions AIA model (p. 129) can be inhibited by these screens language + linguistic structures – choose your words carefully language facilitates socialization, organization + management language + linguistic structures are closely linked to cultures o culture provides meaning and meaning-making mechanisms o language provides symbols to facilitate expression of meanings two common issues with language o which language to use? o which English to use? languages are intertwined with cognitive processes affecting managerial + employee behavior o a different language is a different way of interpreting reality o English: 1,000,000 words, Chinese a quarter of that interpretation can be more difficult & complicated if one is not aware of differences, key information might be missed Selective perception: eye of the beholder selective perception – mental choices about what is important/useful/threatening cultural differences are highly important in this process nonverbal communication – used in Asia to convey meaning, westerners miss it what one person is comfortable with may be offensive to another one Cognitive evaluation cognitive evaluation – categorization of information to make judgments about authenticity, accuracy, utility cultural background has serious impact o Americans often rely on isolated properties of people o Chinese people evaluate others based on criteria emphasizing relationships + contexts people are better at recalling information when it is consistent with cultural knowledge + values north American + western cultures emphasize norm of authenticity o speaking up + being honest is valued o in eastern cultures not reasoning processes play out differently in communication across cultures o interpretation most in line with own cultural background is most likely to be employed Culture logic: assumptions about shared meaning culture logic – process of using one’s own assumptions about normative behavior to interpret messages and actions of others o provides people with system of assumptions about what is mutually known + understood among individuals shared cultural logic helps people fil in gaps of what is unsaid Culture + communication protocols all cultures foster socio-normative beliefs + values guiding members’ thoughts + actions norms + values influence all interaction with other parties Appropriate topics for discussion: hold your tongue some cultures can talk about family/illness/money/… others not some cultures require to “warm up” conversations Message formatting silent language – used to convey meaning without words o use of nonverbal/visual communication to convey messages o verbal communication usually carries less than 35% of intended meaning o nonverbal communication is more important when both ways of communicating contradict each other Hall: cultural differences in how much message context surrounds message content o low-context cultures (Germany, Scandinavia, US): context is not very important + provides listener with little information o high-context cultures (Asia, Middle east): context can be as important as the message itself communication is based on long-term relationships, mutual trust, personal reputations principle challenge for managers: sending clear + meaningful messages that are understood by other parties without offending them Conversational formalities: understand etiquette formal + implicit guidelines/rules govern what constitutes acceptable conversational etiquette cultures differ in terms of importance of formalities formalities usually serve underlying purpose o use of titles: respect or power o no titles: egalitarianism knowing when to apologize is also important part of formalities Acceptable behaviors cultures have constraints/expectations on what is acceptable behavior o Americas: being assertive + initiating conversations o Asia: managers wait for invitation to speak possible aspects: o talking when someone talks o silent periods in conversations o communication of disagreements Manager’s notebook key goal of communication: seek common ground attention-interpretation-action model to understand process better cultural screens are barriers in the AIA process with increasing globalization, developing abilities to effectively communicate across cultures is becoming more & more important first step: identify factors in environment that can inhibit or open opportunities ways to reduce incidents o expand your knowledge + understanding of cultural dynamics o recalibrate your perceptual + critical analysis skills o enhance your applied communication skills multicultural communication is most serious challenge but can also offer huge opportunities Chapter 6: Leading global organizations leadership process can vary significantly across geographic regions definitions from all over the world o USA: leadership is like beauty, hard to define but you know it when you see it o China: leader is best if people barely know he exists, who talks little, and when people say they did work themselves different cultures prefer different leadership styles Dimensions of organizational leadership some see strong differences between management + leadership, others don’t two views on debate: o academic approach: what do leaders do compared to managers o managerial approach: recognizing that integration of both activities is crucial leadership – ability of a manager to influence, motivate, enable others within the organization to contribute towards the effectiveness and success of the company four dimensions of organizational leadership o strategic – corporate mission, objectives, culture, o managerial leadership – operational control + accountability o team leadership – team cohesion, direction, manage processes o ethical leadership – ethical behavior + social responsibility problem all around the world: leaders need to adapt leadership style to local context Contemporary approaches to cross-cultural leadership Universal approach: leader as leader leadership is universal behavior, no matter where example of debate: transformational leadership being superior to transactional leadership o neither approach is suitable for japan o Japan: use gate-keeping leadership reduce barriers to successfully perform Normative approach: leader as global manager prescriptive, tells leader how to approach leadership in global setting common theme: global mindset – incorporates three skills o openness + attentiveness to multiple realms of action + meaning o complex representation of cultural + strategic dynamics o mediation + integration of ideals & actions oriented towards global + local levels alike Contingency approach: leader as local manager key assumption: there are no universals in describing effective leadership o effective leader in one country might fail somewhere else GLOBE project as example leadership needs to be adjusted for local context symbolic leadership – executives taking responsibility for setbacks/crises on behalf of entire organization Limitations of contemporary approaches Leadership as a cultural phenomenon meaning of leadership is embedded in diverse cultures in which it is exercised o changes accordingly leadership means different things to different people translation of “leader” literally can lead to different connotations (German: Führer dictator) leadership in different cultures: o individualistic cultures – single person guiding others o collectivistic – group endeavors o hierarchical societies (e.g. Saudi Arabia) – leaders apart from followers o egalitarian societies (Sweden) – leaders are approachable + less intimidating culture + leader expectations expectations towards how leaders need to behave answers “why’s” and “how’s” local differences o French expect leaders to be cultivated o Dutch are egalitarian o Chinese leaders are expected to build personal relationships o Malaysians want leaders to be humble GLOBE leadership study nine dimensions o power distance o uncertainty avoidance o humane orientation o institutional collectivism o in-group collectivism o assertiveness o gender egalitarianism o future orientation o performance orientation identified 22 leadership attributes o eight are universally undesirable o other factors are culturally dependent six leadership dimensions o autonomous o charismatic o humane o participative o self-protective o team-oriented team-oriented & charismatic approaches are generally accepted other styles are more culturally contingent o humane – asia + anglo, sub-sahara o autonomous – little impact in general but positive in eastern Europe + Germanic contexts table on impact: p.177 Women leaders only 5% of CEOs are women Russia has highest proportion in female leaders, Japan has lowest (out of 44 countries) most organizations do not take time to train women for leadership positions only in Finland, Sweden, Norway, UK women represent more than 20% of board members women own and manage 30% of all businesses several studies have concluded positive impact of women in decision process key questions unanswered o why can women change bottom line for global firm o will women be given opportunity to serve as leaders at /near top of corporations o what are implications of theories if trend of more women keeps on going Leadership in China & the west interaction between westerners + Chinese leaders is often confusing o Chinese leaders seem to be less decisive, fail to respond, are ambiguous to western followers o western executives appear to be ineffectual possible explanation: o western civilization traces back culture to ancient Greece leaders need to bring reality in line with telos (goal, ideal state) o China: reality is originating from two balancing forces (yin + yang) goal is not to bring greater situation to ideal state strategy = arranging means to reach ideal state Chinese tradition emphasizes positioning in passive way flow with potential of each situation performance o west: minimize gap between goal and situation o china: minimization of action itself let situation achieve best for organization Chinese leaders will pursue objectives in modest ways Manager’s Notebook leadership is a social construct not only western idea but has different meanings globally three factors influence leadership: o personal traits of leaders + followers o expectations of leaders + followers o actual leader behaviors managers need to: o understand themselves as a leader – what does leadership mean to them & is there possibly a better way to approach it o clarify leadership expectations – managers need to understand + appreciate cultural differences when they exist o manage leader behaviors – leaders need to be authentic do NOT mimic local behavior but to act authentically in line with expectations working with people from different backgrounds can be challenging but also very rewarding Chapter 7: negotiating global partnerships building global partnerships usually involves very high stakes example: case of Upjohn + Pharmacia Negotiations and global partnerships different goals, self-interests, perceptions can inhibit successful partnerships promising partnerships often fail due to conflicts + misunderstandings during negotiation process Benefits of global partnerships Benefits: o promote growth o acquire new technologies o respond to government pressures o take advantage of exchange rate o respond to economic changes o reduce operation costs o get closer to clients o diversify operations + markets o opportunities for vertical integration challenges common factor: actions serve long-term benefit of partners Drawbacks long-term objectives can remain ill defined incompatibility of individual goals lack of long-term commitment resistance to share key assets keep knowledge for oneself potential loss of control changing conditions can negate reasons for original partnership disagreements about earnings distribution Preparing cross-cultural negotiations selecting the right partner five key success factors: o solid compatibility of strategic goals + tactics – partners need to mutually reinforce each other’s short- and long-term goals o complementary value-creating resources – methods, systems, inputs, etc. should be similar for both partners o complementary corporate cultures o strong commitment to partnership o strong philosophical + operational compatibility – having things in common + organizational looks are usually similar developing a negotiating strategy once potential partner has been found, terms of partnership need to be agreed on o nature, scope, ground rules of partnership negotiators should not only focus on signing the contract real challenge is to put contract into practice negotiators need implementation mindset five approaches to implementation mindset o start with the end in mind what will be in 12 months o help the other side to prepare o treat alignment with shared responsibility – acceptance from all sides that are involved into deal is necessary o send one clear message o manage negotiations like a business process Managing the negotiation process international negotiations can be complex + challenging useful skills o concentrate on building long-term relationships with your partner, not shortterm contracts o focus on understanding the organizational and personal interests and goals behind the stated bargaining positions o avoid over-reliance on cultural generalization – general tendencies in a culture do not mean that everyone displays them o be sensitive to timing – some might require patience, other parties rapid decisions o remain flexible throughout negotiations o plan carefully – knowledge is power o learn to listen not just to speak negotiating strategies + processes a lot of business interactions are based on long-term relationships o goal: determine whether other party is sufficiently trustworthy international negotiators – no matter from which cultural background – usually spend time on social activities to get to know other parties competitive vs problem-solving strategies competitive negotiation – each side tries to give as little as possible o losers in negotiation often seek revenge o long-term relationships are not taken into account problem-solving negotiation – aims for win-win solution o start: find mutually satisfactory ground beneficial to interests of both sides o objective information is preferred o often leads to creative ways to provide both parties with what they want to achieve points of consideration when choosing strategy o detailed understanding of other party’s background is important to understand their intentions o culture can predispose which strategies negotiators prefer (US: competitive, Japanese: problem-solving) most experts recommend problem-solving approach bargaining + concessions sequential approach – go through proposed contract item by item o popular in USA holistic approach – no agreement on anything before the whole contract has been reviewed o final proposals + counter-proposals o can be confusing to negotiators used to sequential approach managing conflicts + compromise conflicts are not always evitable process strategies for resolving conflicts five strategies for the process o accommodating – if relationship is more important than outcome o collaborating – jointly looking for win-win outcome o competition – when outcome is critical but relationship not o avoid – outcome + relationship unimportant o compromise – when outcome + relationship are important but there is not enough time to collaborate contingency factors can influence decision of most appropriate strategy o how crucial is particular solution to team member(s) – e.g. losing face in Asian cultures in very negative o how much power does each party have compared to the other – stronger parties can go for competitive strategy, weaker ones may be accommodating, similar parties collaborate o viability of strategy depends on timing of when solution needs to happen – urgent action is more compatible with avoidance + accommodating o precedents created by negotiators – which expectations were created beforehand people strategies for resolving conflicts (1) prepare people – foster positive attitude towards dialogue, focus on commonalities, replace attitude “us-vs-them” (2) assess the situation – fully assessing situation, identifying all parties involved + appropriate interventions to deal with conflict (3) explore past + present – find out origins of conflict + dynamics (4) envision the future – create imaginational about common future (5) create solutions (6) rejuvenate + reflect – breaks are important to reenergize (7) don’t forget relationships managing agreements + contracts contract – agreement between multiple parties stablishing rules governing their business transactions o level of investment, areas of responsibility, accountability, cost + earnings sharing, o believed to be superior to handshake + oral agreement mutual trust and contract interpretation ins some cultures (Asia), insisting on contract can be seen as insulting contracts are legally binding + can be enforced o practically, what contract says vs what it really means can be very different trust into other party’s intentions + integrity are important for such cases o guanxi as example doctrine of changed circumstances one of main reasons for contract disputes: different perception of meaning of contract westerners: legal document spelling out all obligations o can usually not be renegotiated trying to anticipate all problems other parts of world: external locus of control doctrine of changed circumstances o doctrine of changed circumstances – if circumstances beyond control of each party change, contract needs to be renegotiated no party makes a loss o Asia, Africa, Lat. am, Asians, Africans, lat. am cultures prefer having brief + very general contracts Manager’s notebook people do business with partners they know + trust successful negotiators are comfortable in multicultural environments + are skilled in building & maintaining relationships several environmental constraints (e.g. culture) can influence outcome of negotiations situational factors can also influence outcome of negotiations three key issues for managers o manage preparations – managers should consider multiple options to deal with changing circumstances o manage negotiations – two key aspects for negotiation process importance of building relationships – getting to know partner can lead to avoidance of problems later in process ethical behavior – definition of ethical behavior varies across globe managers must not always apply own standards o manage agreements – contract is only start of partnership it is a living document and must be nurtured & managed over time Chapter 8: Managing ethical conflicts ethical standards reside within people not organizations o people determine whether a company will act ethically & responsibly standards can be unclear but impact can be profound business explanations on ethical behavior are more focused on what rather than why Conflicts over beliefs + values perspectives on issues can often vary a lot conflicts across borders usually arise from two reasons o conflicting interests + beliefs – truth is a matter of perspective factor making issue more pressing: is truth situational or universal = difference between universalism vs particularism universaslists emphasize norms, values, predictability aprticularists favor relationships, flexibility, ambiguity o conflicts between ethical imperatives and institutional requirements conflicts between beliefs and institutional requirements conflict between what person thinks is ethical and what is legal ethical conflicts – disagreements arising when multiple parties disagree about what is ethically correct o often in terms of right/wrong, moral/immoral o concepts are often clear & fuzzy at the same time create confusion institutional conflicts – differences about what is legal o e.g. customer protection can vary strongly across different countries laws often reinforce society’s moral beliefs high correlation between both fundamental difference between two aspects: o legal aspect is mandated by law + punishable o ethical aspect is group-regulated most cultures give precedence to ethical over legal Ethical global leader four factors defining ethical behavior were determined from literature and GLOBE o character + integrity o altruism o collective motivation o encouragement endorsement of each factor differs significantly between countries Ethical guidelines for global managers OECD aims to promote market-oriented economic growth + development o also promotes ethical business practices within member states OECD guidelines for multinational enterprises –set of guidelines managers can voluntary follow five categories for OECD guidelines o bribery + corruption o employment relations o environmental stewardship o technology transfer o general business practices general question: who determines what is ethical enforcement of guidelines is lax makes it more difficult to follow guidelines bribery + corruption indices can only be seen as indication existence of underground economies complicates situation o underground economy – business transactions that remain unrecorded o size of underground economy differs significantly amongst countries guidelines by OECD o bribes – managers should not receive or pay bribes nor should they use any sort of agreement to channel payments to officials or employees of other firms o remuneration – only for legitimate services o transparency – needs to be increased for manager’s actions o advocacy – managers should promote employee awareness o controls – managers should adopt control systems discouraging bribery o contributions – no illegal contributions to candidates for public office/parties in many situations, mangers feel countervailing forces makes it hard to follow guidelines o force-field analysis p. 243 two important things to remember: o bribery + corruption can be found all throughout world o managers typically have a choice on how to respond to corruption shortterm losses might be outweighed by long-term gains Fair employment practices one of main reasons to build facilities overseas: reduce operating costs should global firms provide local employees with similar benefits as the ones at home are getting recommendations: o employee representation – respect employees’ rights to be represented by trade unions etc. & facilitate development of collective agreements o employment standards – no lower standards than comparable employers in the host country o employee training & development – upgrade members of the local labor force o lay-offs and dismissals – provide reasonable notice + and mitigate adverse effects o equal employment opportunity – no discrimination o freedom from coercion – no threatening to move factories somewhere else o rights of collective bargaining – enable representatives of employees to run negotiations employee satisfaction is higher when employees are treated as part of frim and not outsourced labor Environmental stewardship which responsibilities do firms have regarding the local context the business cases for CSR OECD focuses on projection of local environment from unsafe products/practices o public health risks – health consequences of business decisions (location, consumption of nat. resources, …) should be considered o environmental impact – provide adequate information on potential impacts of actions o accident prevention – cooperate to mitigate effects from accidents use appropriate technologies introduce environmental protection at organizational level equip everyone involved right educate employees prepare contingency plans support public awareness programs firms sometimes aim to not be socially irresponsible but avoid contexts where they consider regulations too tight Manager’s notebook educated global manager is caught in the middle there is universal truth but also situational components distinguishing between personal preferences, ethical & legal mandates, and beliefs & values is important understanding what is core (universal) and what is peripheral can be critical for guiding decisions (1) managing with ethical/moral constraints – points to consider for managers o understand the core values of firm know limits + degrees of flexibility o understand the limits of universalism – what is seen as universal evolves over time o understand the cultural contexts underlying agreements – universals also need to be supported by culture o understand the roles & backgrounds of the parties to a dispute – helps to understand how to deal with other parties o understand the context/basis of the conflict – helps getting to the root cause faster o understand different typed of cross-cultural conflict – different kinds of conflicts (tastes, legal system, beliefs/values) require different approaches (2) managing within legal & institutional constraints – issues to consider before being placed in situations where guidelines matter o understand the role of guidelines – o understand the limitations of guidelines – it is only a first step o understand the underlying controversies – too detailed or too broad? o understand the tensions created by forces for and against doing the right thing o understand where conflicts need to be settled – settlement usually takes place in home country not host country o understand the lack of education/awareness of institutional guidelines – guidelines are seldom taught Chapter 9: Managing work & motivation companies do not incorporate considerations across borders in their incentive plans managers fail to understand differing expectations from different cultures regarding manager role World of Work many cultures exhibit core cultural traits providing conceptual entry into work life Work values & goals work values – individual beliefs about desirable end states/ modes of conduct to reach such end states o personal work values signal what employees consider to be most important one of earliest studies: George England o US: profit maximization, organizational efficiency, productivity o Japan /S. Korea: pragmatism, competence, achievement, organizational growth o India: moralistic orientation, desire for stability, importance of status/dignity o Australia: moralistic/humanistic orientation, loyalty & trust, both growth & profit maximization Meaning of work project built on England’s studies younger workers have been losing work ethics recently o less work, commitment &dedication to employers decreased, job expectations have increased work environments are slowly changing – some countries reinforce trend of greater participation Work and leisure do people work to live or live to work? Americans & Japanese work 1,800h/year Germans work 1,440h/year Americans seem to load up on consumer products, Europeans on vacation time o US poll: workers would rather have $20,000 than 4 weeks extra vacation Culture and psychology of work social psychological processes can influence work attitudes + behaviors Psychological contracts implicit understanding about exchange relationships o commonly seen in agreements over wage-effort bargain, but also between colleagues etc. perceptions & trust play major role in mutual acceptance unwritten rules governing employment + performance are often unclear when moving to new country psychological contracts become relevant because they convey unknown but relevant information expectations, equality, equity cultural influences on cognition can be strong some studies about culturally based worldviews outside the US research has identified equity principle in many western countries o equity principle – motivates people to achieve/restore equity (fairness) between each other equality principle – people should be rewarded equally regardless of effort equity principle might be culturally bound clear acceptance of inequity in Asia & middle east two cultural limitations on acceptable actions of managers o problem analysis – cultural drivers can affect how what is considered to be a problem & how seriously It is taken o solutions – cultural drivers can influence variety of possible solutions employee absenteeism: punitive actions (Singapore), counseling (Sweden), no action (Egypt) Causal attributions shows significant limits of western theories of management focuses on individual’s attempt to understand what’s happening around them self-serving bias as important part o self-serving bias – group success will be attributed to the group, failure to outside factors study: self-serving bias is more common in US than Korea motivational theories need to have validity assessed for every separate cultural context Risk & uncertainty focuses on extent to which people at all levels embrace or avoid uncertainty Hofstede: uncertainty avoidance cultural differences can influence o variable vs fixed compensation o financial vs non-financial incentives Japanese workers tend to take little vacation shows commitment to firm (wagamama = selfish, employees who take full vacation) Managing incentives & rewards two types of incentives/rewards o extrinsic rewards – rewards/punishments provided for good/poor performance (e.g. salaries, bonuses, …), administered by firm o intrinsic rewards – self-administered, arise from doing job in satisfactory way reward preferences are culture-bound some cultures value security, others harmony, others status & respect o most sought rewards: recognition + achievement Financial incentives and distributive justice many systems seek to link incentive system to performance (mostly in West) other cultures emphasize group effort concept distributive justice varies across cultures o Americans prefer performance based compensation o Danes, Indonesians, Chinese, Russians, Indians prefer less emphasis on performance china is in phase of transition: from egalitarian model to new reform model (considers achievement + merit) Japan struggled implementing performance-based rewards could not decrease salaries of less successful workers to not disturb group harmony (wa) so only increases in salaries Employee benefits can constitute between 33% and 50% of costs benefits can vary greatly across cultures examples o little interest in stock compensation decreased trust in financial system o Indian firms pay expenses for aging parents of employees o chine companies support housing funds o Indian + Russian firms arrange mortgage plans o Mexican firms offer pollution escape trips to leave cities o Japanese + Pilipino workers receive family allowance o Brazilian + Mexican execs are protected against kidnapping o French firms offer company owned ski-chalets etc o us companies pay for legal services + health insurance no culture has absolute preferences for one system usually combination of extrinsic + intrinsic incentives o balance between both systems varies Gender, compensation, opportunities discussion can quickly turn into disagreement over values + beliefs OECD study: disparity ranges from 6% (NZ) to 40% (S. Korea) possible explanations o women are found more in contingent labor categories o differing sex roles in cultures o job discrimination men do not make less than women in any country question for managers: to pay according to home-country beliefs (universalism) or local customs (particularism) Manager’s notebook managers need to understand the local environment personal work values reflect individual beliefs about desired end states competitive organizations need to make everyone strive for organization’s goals motivational tools managers can make use of o understand the local work environment work values + psychological contracts work-life balance building relationships o understand corporate constraints on rewards – should everyone in company be paid the same or according to home-country situations understand company expectations long-range incentive plans need to be developed flexibility to fit local conditions o manage employee expectations – employees need to understand what is expected & what they can receive in return Chapter 10: Managing global teams companies have intensive training programs to make cross-cultural communication easy + prevent misunderstandings earlier approach to international success: have facilities all around the globe today: building sizeable + responsive organizations management revolution is required to getting global employees to collaborate global organizations are hiring sociologists to make teamwork even more efficient most organizations rely on international teams in various forms o one team member from different background o team members from all over the world working together on solution Global teams global teams – group of heterogeneous employees from two or more countries working together to coordinate/develop/manage aspects of global operations reasons for global teams o need for cross-cultural expertise o partnership with foreign firm teams often have better results than homogenous teams most global organizations still rely on national teams the most local expertise advantages and drawbacks of global teams teams come in multiple shapes + sizes advantages o higher creativity o decision making is slow but more comprehensive/realistic/acceptable o leads to better understanding of multinational employees + global markets o more effective when working with international customers drawbacks o difficulty to develop close groups o slow decision making process o action plans take longer to implement o different work habits can lead to conflict Global team synergy making global teams work is usually more complicated than national teams cultural diversity is important asset in process of creating innovation o different perspectives leads to wider insights + more problem solutions global teams are better deployed in planning & development, not implementation five factors to build global team synergy (details: p. 298) o purpose – provides direction, should be consistent with organizational values o performance measures – provide specific + measurable goals to evaluate progress o people – team members need to have complementary skills & be committed to purpose o results-driven processes – needed to accomplish complex tasks, relationship processes are needed to resolve conflicts, processes rest on implicit norms o preparation & practice – crucial but often neglected if factors are lacking, teams often spend too much time reassessing goals & objectives Co-located & dispersed global teams co-located global teams – all team members are located at the same location dispersed global teams – all over the globe, meet seldom or never o tasks are completed virtually teams rarely fit one definition perfectly characteristics: p. 301 Special challenges of dispersed global teams dispersed teams use technology to draw on knowledge & resources from different parts of organization without relocating them dispersed teams usually have collaborative teams dispersed across spatial/temporal/cultural/organizational boundaries technology also impacts habits of people managers need to help people make sense of new ways of working & relating in organization o they need to make sure dispersing forces do not pull organization apart human dynamics still remain important technology is just a mean to communicate biggest challenge: members need to find a new way of interacting Lack of mutual knowledge & context dispersed teams can make use of different contexts to acquire information more easily o greater access to knowledge than co-located teams dispersed teams lack mutual knowledge can inhibit information sharing context is often missed when communication information across dispersed teams when contextual information is communicated, it is often forgotten/ignored o can lead to conflict o contextual factors such as public holidays or weather are not considered dealing with cultural differences is much more difficult when culture cannot be “seen” overdependence on technology benefits: o information exchange regardless of geographic location o records of information o working across time zones enables to work around the clock problems: o messages fail to reach recipients o interpretation cannot be controlled o signaling (“yeah” “mhm”) is more difficult via technology loss of useful details less rich information is transmitted and less is explained o body language & facial expressions are omitted o writing is tiring less is written down Managing dispersed global teams individuals need to be carefully selected + well trained for role in dispersed teams not all tasks can be solved using technology the more complex the decision to be made is, the more rich channels are required after identification of right people/technology/reward systems, managers most determine right processes o periodic face-to-face meetings o frequent video-conferences managers need to facilitate communication o make norms explicit o provide training o develop team-building exercises remote team members must not feel isolated team-members must learn how to communicate o task-related information (details about task) o social-related information (personality, styles, …) o context-related information (available support, holiday schedules, local rules, expectations, norms, …) success when working in virtual environments requires a lot of communication Managing tasks and team processes two factors are important when thinking about how to organize + manage teams o principle challenges team needs to overcome o managers need to understand how they can facilitate team performance Managing team tasks managers must identify areas of responsibilities + organize the members all aspects need to be clarified o mission + goal setting o task structuring – agenda setting, creating operational rules, time management o roles + responsibilities – division of labor, responsibility charting, team interdependencies o decision making – delegation of authority, selection + role of leader, how decisions are made o accountability – who is responsible for task accomplishment managing team processes productive group processes to facilitate collective efforts need to be designed o team-building o communication patterns – working language, challenges of language fluency o participation – guaranteeing voice, balancing quiet + less quiet members o conflict resolution – accommodating legitimate differences in opinion, managing constructive conflict, strategies for compromise o performance evaluation – how & when & who , one-way vs. two-way, role of feedback Leadership & global team-building Team leader responsibilities select members on basis of skills provide clear direction build a positive team culture – teams build culture based on first experiences + first solutions to problems they encounter build team camaraderie – encourage team members to get to know another tie rewards to performance – set milestones + provide feedback throughout project helps team to reflect on performance recognize and build on differences – heterogeneity can be source of advantage but also challenge make teams understand the benefits Building mutual trust both important + elusive belief that people can be trusted varies strongly between countries o 50% of EU citizens trust own nationals only 20% of them trust citizens of other EU countries two issues: o what is the process through which trust is developed model p.316 (1) three trust expectations competence-based trust – degree of belief into ability of others to deliver incentive-based trust - degree that members believe that others are sufficiently motivated benevolence-based trust – belief that others are making goodfaith effort to team (2) team members weigh each of the expectations calculate overall expectation = trust judgment (3) trust judgment leads to trust behaviors & trust-related outcomes o how can trust be developed (1) team members need to be open + candid in communication (2) all proprietary information must be shared (3) there needs to be mutual benefit for all individual members Manager’s notebook two pressures o globalization requires companies + managers to work closely with people from different backgrounds o changes in technology have created new environments possible constraints o teams without references to environment will be unsuccessful o cultural differences often impact team performance o situational differences can limit managerial action three key management decisions o (1) create + develop global teams mapping – engage differences between team members + make explicit strengths + weaknesses bridging – communicating efficiently, keeping differences in mind, three steps: (1) approaching/preparing (2)decentering – putting oneself into position of others (3) recentering – finding commonalities integrating – using differences between team members to create new ideas o (2) manage co-located global teams building group cohesiveness can take longer differing work habits need to be accounted for to prevent misunderstandings managers need to be sensitive to changing levels of trust strategies: recognize importance of both team goals & team progress leaders can build leadership skills when working In global teams managers need to develop skills in utilizing conflict resolution strategies o (3) manage dispersed global teams – building cohesive teams is a great challenge special circumstances need to be managed advantages + disadvantages need to be recognized communication technologies need to be matched suitably with team environment
