Academy of Management Conference, Philadelphia, August 3-8 2007 PDW: Interactive Teaching Methods in International Management: How to Enrich Case Discussions by Incorporating Experiential Exercises Günter K. Stahl, INSEAD © Günter K. Stahl Using Exercises to Enrich Case Discussions: Examples Topic Examples of Case(s) Exercise(s) Managing Across Cultures David Shorter/Bob Chen (Ivey); Johannes van den Bosch (Ivey) Role plays; Coaching exercise Managing Change Nissan Turnaround (INSEAD) IBM Turnaround (HBS, INSEAD) Guangdong Electronics (INSEAD) ChangePro Simulation Performance Management Wolfgang Keller at Koenigsbraeu (HBS) Role plays; Coaching exercise Aligning People With Strategy Southwest Airlines (Stanford) GE Talent Machine (HBS) Strategy Mapping exercise International Assignments Andreas Weber (INSEAD) Jaguar or Bluebird? (INSEAD) Europa Construction Intl. exercise (LBS) Ethics Changmai Corporation (INSEAD) Negotiation simulation; Role plays © Günter K. Stahl Shorter/Chen Cases: Suggested Timing (3-hour session) Understanding and Working With Cultural Differences 14:00 – 14:30 Introduction: Culture and its impact on management 14:30 – 14:50 Table discussion: Personal experiences working across cultures 14:50 – 15:30 Understanding cultural differences: Cultural frameworks 15:30 – 15:45 [Break] 15:45 – 16:15 Group work: Shorter/Chen cases (case analysis and role play preparation) 16:15 – 16:45 Role plays and debriefing 16:45 – 17:30 Creating cultural synergy: The Map-Bridge-Integrate approach (if time permits, followed by coaching exercise) © Günter K. Stahl Perceptual Processes and Mental Models Vary Across Cultures Source: Nisbett (2003). The geography of thought: How Asians and Westerners think differently. New York: Free Press. Example of item measuring whether judgments of similarity are based on family resemblance or rules © Günter K. Stahl Nonverbal Negotiating Behaviors Vary Across Cultures Behavior Silent Periods Americans Brazilians Japanese 3.5 0 5.5 10.3 28.6 12.6 3.3 5.2 1.3 0 4.7 0 Number of silent periods greater than 10 seconds, per 30 minutes Conversational Overlaps Number of overlaps per 10 minutes Facial Gazing Minutes of gazing per 10 minutes Touching Not including handshaking, per 30 minutes Source: Graham (1985), The Influence of culture on the negotiation process. Journal of International Business Studies, 16, pp. 81-96. © Günter K. Stahl Cultural Orientations Basic issues that all societies throughout history faced, but different societies developed different ways of coping with these issues. 1. Environment: What is our relationship with the world around us? (Harmony-Mastery-Subjugation) 2. Human Nature: What is the basic nature of humans? (Good-Mixed-Evil) 3. Relationships: To whom and for whom do we have responsibility? (Hierarchical-Collective-Individualistic) 4. Mode of Activity: What is the primary mode of activity? (Being-Doing-Thinking) 5. Time: How do we think about time? (Past-Present-Future) 6. Space: How do people see and use space? (Private-Public) Source: Kluckhohn & Strodtbeck (1961). Variations in value orientations. Evanston: Row, Peterson and Company. © Günter K. Stahl Example: Cultural Analysis Indonesian Culture German Culture Relationship to Environment Mastery/ Control Subjugation/ Fatalism Tolerance for Uncertainty Uncertainty Avoidance Social Relationships Individualistic Collectivist Egalitarian Hierarchical Universalist Particularist Ascriptive Achievement Mode of Activity Doing Being Task-oriented Relationshiporiented Human Nature High Trust/ Good Low Trust/ Evil Time Monochronic Polychronic Short-term Long-term Space Non-Contact/ Private Contact/ Public Language and Communication Low Context/ Explicit © Günter K. Stahl High Context/ Implicit Cases: David Shorter – Bob Chen Source: Joe DiStefano & Neil Abramson, Ivey Business School James-Williams: The New Enterprise Group Organizational Chart David Shorter* Joe Silverman** Pat Czarski Mary Delehanty Jane Klinck** Mike McLeod** Erin Cole Tak Li Bob Chen * Practice Director © Günter K. Stahl ** Other Partners David Shorter – Bob Chen: Case Questions 1. Taking the perspective of either David Shorter or Bob Chen, please explain the situation as of the end of the case. What are the causes of developments up to now? 2. Prepare to play the role of either Shorter or Chen in their upcoming meeting. a) What is the outcome you desire for the meeting? • b) What will you do and say to help this come about? • c) What assumptions do you have about the other person's motives and his likely responses to your plan for the meeting? © Günter K. Stahl David Shorter and Bob Chen: Different Perspectives Issue Motivation Shorter and others Chen Get Chen to comply with doing the Softdisk audit Get transfer now, as promised (friends have been transferred without any audit responsibilities) Loyalty to client and to the organization McLeod and Silverman frustrated, low confidence Perception Communication Discouraged about chances of resolution, feels trapped Chen is disloyal and hypocritical, is not being straight Shorter hasn’t protected me, others want to persuade me Personality problem Problem is firm’s need Tell Chen to do the audit Get others to tell them no Meetings are for disclosure and discussion Meetings are for persuasion and coercion Express disagreements openly and directly Express disagreements indirectly and avoid conflict Source: Joe DiStefano, IMD, Teaching note: Bob Chen/David Shorter. © Günter K. Stahl Loyalty to mentor and to the organization Some Clues to Cross-Cultural Conflict Bob Chen's current behavior vs. his reputation in the firm Resistance to doing the audit vs. previous accommodating behavior "He's out of line; fire him!" vs. solid performer, potential partner, liked by colleagues "He's acting crazy; must be a personality clash” vs. polite (indirect), civil (modest) Disclosure of reluctance to do audit to colleagues vs. shy, private person Apparent agreement to do the audit vs. signals that he won't do it Seems to agree to audit three times vs. Mike doesn't sense real agreement Seems to accept 3 year tax program vs. tells Shorter he doesn't want it Agrees during the 3 hour meeting vs. Mike hears indirectly he won't do it Past self-sufficiency vs. requests for help Has only dealt with Shorter regarding career issues vs. asks Jane for help Source: DiStefano, J., Teaching note: Bob Chen/David Shorter. © Günter K. Stahl Shorter/Chen Cases: Cultural Analysis Chinese Culture Canadian Culture Relationship to Environment Mastery/ Control Subjugation/ Fatalism Tolerance for Uncertainty Uncertainty Avoidance Social Relationships Individualistic Collectivist Egalitarian Hierarchical Universalist Particularist Ascriptive Achievement Mode of Activity Doing Being Task-oriented Relationshiporiented Human Nature High Trust/ Good Low Trust/ Evil Time Monochronic Polychronic Short-term Long-term Space Non-Contact/ Private Contact/ Public Language and Communication Low Context/ Explicit © Günter K. Stahl High Context/ Implicit High Context and Low Context Cultures Japanese High Arabs Latin Americans Italians/Spanish French English North Americans Scandinavian Germans Low Swiss Explicit Source: Hall & Hall (1995) © Günter K. Stahl Messages Implicit Sixteen Ways to Avoid Saying ‘No’ in Japanese Source: Ueda (1974) © Günter K. Stahl 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Vague ‘no’ Vague and ambiguous ‘yes’ or ‘no’ Silence Counter question Tangential responses Exiting (leaving) Equivocation or making excuse Criticizing the question itself Refusing the question Conditional ‘no’ ‘Yes, but …’ Delaying answers Internally ‘yes’, externally ‘no’ Internally ‘no’, externally ‘yes’ Apology The equivalent of English ‘no’ Sixteen (and More) Ways to Avoid Saying ‘No’: Bob Chen’s Communication Style 1. Vague ‘no’ 10. Conditional ‘no’ 2. Vague and ambiguous ‘yes’ or ‘no’ 11. ‘Yes, but …’ 3. Silence 12. Delaying answers 4. Counter question 13. Internally ‘yes’, externally ‘no’ 5. Tangential responses 14. Internally ‘no’, externally ‘yes’ 6. Exiting (leaving) 15. Apology 7. Lying equivocation or making excuse 16. The equivalent of English ‘no’ 8. Criticizing the question itself 17. Avoid the other person(s) 9. Refusing the question 18. Get another person involved 19. … © Günter K. Stahl Common Stereotypes About Asian Americans Observed Behavior of Asian Americans Common Stereotypical Misinterpretations Possible Cultural Explanation Nonconfrontational Passive; does not care one way or another Values harmony Quite; reserved Has no opinions Values opinions of others and fitting in with group Agreeable; dependable follower Unassertive; no leadership qualities Values what is good for group; can be assertive if needed for the group Industrious Make good “worker bees” Values carrying their share of work; believes hard work will be recognized Technically and scientifically competent No management skills or leader-type charisma Values science as universal language crossing cultural barriers; believes leadership comes in many forms Deferential to others Not committed to own opinions, judgments, or preferences Values being respectful of others; believes in “saving face” for self and others; values age and wisdom Source: Osland, Kolb & Rubin (2001). Organizational behavior: An experiential approach (7th ed.). Prentice Hall: NJ. © Günter K. Stahl Update: What Happened During and After the Meeting The meeting was, in Shorter’s words, “a disaster”. Chen felt that he had no choice but to resign. He was sure that his relationships with the partners had been so badly damaged that he could never recover. He also felt that he was being taken advantage of because of his easy nature and that there were other people who could have done the audit. Shorter was stunned. He never expected such a turn of events. Even worse, he hadn’t ever faced a male employee breaking down and crying in his office. He didn’t know how to handle the emotions being displayed by the normally reserved Bob Chen. Shorter was unhappy to lose a good employee (and the Softdisk audit still had to be done!), and Chen was unhappy to leave the firm that had given him the opportunity to work and live in Canada. Chen obtained employment as a financial analyst in a financial institution in Toronto within three weeks of resigning at James-Williams. Source: DiStefano, J., Teaching note: Bob Chen/David Shorter. © Günter K. Stahl