Chapter 6
MANAGING ACROSS CULTURES
6-1
Strategies for Managing Across
Cultures
 Globalization
- the production and
distribution of products and services of a
homogeneous type and quality on a
worldwide basis
 National
responsiveness- the need to
understand the different consumer tastes
in segmented regional markets
6-2
Globalization Vs. National
Responsiveness Matrix
National Responsiveness
High
High
globalization
Low
Mixed
Globalization
Low
Mixed
National
Responsiveness
6-3
Parochialism and
Simplification
 Parochialism- the tendency to view the
world through one’s eyes and perspectives
 Simplification- the process of exhibiting
the same orientation toward different cultural
groups
6-4
High Vs. Low Context
Cultures
High Context





long lasting
relationships
implicit communication
loyalty to people of
authority
spoken agreements
outsiders do not gain
entry easily
– JAPAN
Low Context





relationships are short
in duration
explicit communication
authority is diffused
written agreements
ousiders are
encouraged to join inner
circle
– U.S.
6-5
General Similarities Across
Cultures

Managerial behaviors in Russia
–
–
–
–
communication
HRM
traditional management
networking
Application of O.B. Mod. in Russia
 Organizational commitment in Korea

6-6
General Differences Across
Cultures
 HRM
activities
– labor laws
– wages
– vacation time
– maternity leave
– compensation
– group Vs. individual incentives
6-7
Doing Business in China






Emphasis on trust and
mutual connections
Meetings start with small
talk
Host indicates when
meetings begin and end
Slow in forming a an
action plan, but stick with
decisions once made
Reciprocity is important
Negotiations are often
carried out through
intermediaries to reduce
the risk of losing face
6-8
Doing Business in India








Punctuality is important
No personal questions
Titles are important
No public displays of
affection
Beckoning done with the
palm turned down
When eating or accepting
things, use the right handthe left is considered
unclean
The namaste gesture can
be used to greet people
Bargaining for goods and
services is common
6-9
Doing Business in Russia










Build personal
relationships with partners
Use local consultants
Consider business ethics
Be patient
Stress exclusivity
Face to face
communication is
expected
Keep financial information
personal
Research the company
Stress mutual gain
Clarify terminology
6-10
Doing Business in France




Use a quick hand shake with some pressure in the
grip
Punctuality is extremely important
During a meal, small talk is acceptable, but personal
questions and the subject of money are never brought
up
Great importance is placed on neatness and taste
France
6-11
Doing Business in Arab Countries





Never display feelings of
superiority
Do not take credit for joint
efforts
Efforts to sidestep red
tape can be regarded as
disrespect for legal and
government institutions
Connections are extremely
important
Patience is critical to
business transactions
6-12