Chapter 5 Managing Across Cultures

Identify a true statement that pertains to doing business in Arab countries. Initial business meetings typically are used to finalize contracts. It is necessary to bring the other party a gift as part of business meetings. It is acceptable to criticize or berate anyone publicly. Arab businesspeople tend to give high importance to status and rank.

Arab businesspeople tend to give high importance to status and rank.

Identify the statements that pertain to doing business in Brazil. (Check all that apply.) Physical contact is acceptable as a type of communication. E-mailing and calling are preferred over face-to-face interaction. Brazilian culture tends to be governed by the clock. Presentations are required to be informative and expressive.

Physical contact is acceptable as a type of communication. Presentations are required to be informative and expressive.

True or false: Usually, successful multinational corporations (MNCs) utilize a mix of cultural strategic predispositions based on the demands of the current environment.

True

Match the countries (in the left column) with their approaches to worker participation in job design (in the right column). Japan Germany Mexico China

Uniform, formal approaches and autonomous teams are used. Works councils are utilized to enhance worker participation. Worker participation is approached cautiously. Employees' motives are determined before implementing their participation.

Match the countries (in the left column) with their human resource management (HRM) practices (in the right column). Japan US

Unions are considered partners. Management and unions see each other in a much more adversarial way.

As part of facing the challenges presented by the need to adjust global strategies for regional markets, a multinational corporation (MNC) must avoid _____. considering local market conditions giving more autonomy to its subsidiary responding to various changes in local demands assuming that all markets are basically the same

assuming that all markets are basically the same

Match the types of cultural strategic predispositions of a multinational corporation (MNC) (in the left column) with the associated strategies (in the right column). Ethnocentric Polycentric global integration national responsiveness

global integration national responsiveness

To successfully do business in India, foreign businesspeople should _____. understand that all Indian values are remarkably similar to those in the West keep in mind that Indians are very tolerant of outsiders and know that many are unfamiliar with local customs and procedures dress like locals as it is necessary to impress Indian businesspeople wear a dhoti, a turban, and a long coat like the rajahs, which constitute business formal attire in most parts of India

keep in mind that Indians are very tolerant of outsiders and know that many are unfamiliar with local customs and procedures

Ryan, an international manager, comes from an advanced economy and thinks that his state-of-the-art knowledge is more than adequate to handle the challenges of doing business in less developed nations. In the context of cross-cultural differences, this scenario illustrates the tendency called _____. adiaphorism probabilism parochialism terminism

parochialism

The tendency to view the world through one's own eyes and perspectives is known as _____. adiaphorism fortuitism parochialism meliorism

parochialism

Match the types of cultural strategic predispositions of a multinational corporation (MNC) (in the left column) with the associated missions (in the right column). ethnocentric polycentric profitability public acceptance

profitability public accenptance

Philip, a German manager, behaves in a similar manner when interacting professionally with an Indian manager and when doing business with a U.S. executive. In the context of cross-cultural differences, this scenario illustrates the process of _____. simplification gratification segmentation transduction

simplification

Match the types of cultural strategic predispositions in multinational corporations (MNCs) (in the left column) with the associated types of governance (in the right column). Ethnocentric Polycentric Bottom up governance top down governeance

top down governance bottom up governance

They are likely to concentrate on the good of the working community and let their company accept significant profit losses as a consequence. Agreements are likely to be spoken rather than written. Individuals are taught from a very early age to say exactly what they mean. Relationships between people are long lasting. Authority is diffused throughout the bureaucratic system. People in authority have personal responsibility for their subordinates' actions.

Agreements are likely to be spoken rather than written. Relationships between people are long lasting. People in authority have personal responsibility for their subordinates' actions.

Why do both middle- and lower-level U.S. expatriate managers who work in French subsidiaries often find bureaucratic red tape a source of considerable frustration? Because French people have more intense work ethic than Americans do Because a majority of French organizations tend to be highly centralized and have rigid structures Because French people are highly motivated by workplace competition Because most French organizations are decentralized and have flattened structures

Because a majority of French organizations tend to be highly centralized and have rigid structures

Which of the following shows a major cultural difference between China and many Western countries? China has a high indulgence index. China has a high individualism index. Chinese culture gives high importance to punctuality. Chinese culture gives high status to high achievers.

Chinese culture gives high importance to punctuality.

Luthans and his associates studied a sample of managers in the largest textile factory in Russia to determine their activities through direct observation. What were the results of this study? (Check all that apply.) Russian supervisors were trained to disregard social rewards and positive feedback. Communication activity was an important predictor of effective performance in both Russia and the United States. Russian managers engaged in traditional management, communication, human resources, and networking activities. The attention given to the networking activity reduced the Russian managers' opportunities for promotion.

Communication activity was an important predictor of effective performance in both Russia and the United States. Russian managers engaged in traditional management, communication, human resources, and networking activities

Identify the true statements about the compensation strategies for different cultural clusters. (Check all that apply.) Low salaries should be paid to senior-level managers in Japan and Hong Kong. Compensation strategies should be similar in the European Union (EU) nations such as France, Spain, Italy, and Belgium. In Great Britain, Ireland, and the United States, profit-sharing plans are more effective than individual incentive plans. Incentive plans should be group-based in Pacific Rim countries.

Compensation strategies should be similar in the European Union (EU) nations such as France, Spain, Italy, and Belgium. Incentive plans should be group-based in Pacific Rim countries.

True or false: Usually, successful multinational corporations (MNCs) utilize a mix of cultural strategic predispositions based on the demands of the current environment

True

True or false: When doing business in Arab countries, it is important to know that culture generally holds that destiny depends more on the behavior of individuals than on the will of a supreme being.

False

True or false: In the context of the GLOBE project, which compares managerial differences, Argentine and U.S. managers typically score higher than their Chinese counterparts in the area of uncertainty avoidance.

False. China likes to to things very structured and would have a higher uncertainty avoidance

True or false: According to the study by Luthans and his associates, organizational commitment of Korean employees was independent of their position in the hierarchy, tenure in their current position, and age.

False. In a cross-cultural study, Luthans and his associates examined whether demographic and situational factors identified in U.S.- based literature had the same antecedent influence on the commitment of Korean employees. As in U.S. studies, Korean employees' position in the hierarchy, tenure in their current position, and age all related to organizational commitment.

In the context of international human resource management (HRM), match the countries (in the left column) with their typical approaches to training (in the right column). Japan Germany Mexico China In the context of international human resource management (HRM), match the countries (in the left column) with their typical approaches to training (in the right column). Firms make substantial investment in training, utilize general training and cross-training, and view training as everyone's responsibility. Firms utilize team training and carefully observe training programs that exist. Firms utilize bilingual trainers.

Firms make substantial investment in training, utilize general training and cross-training, and view training as everyone's responsibility. Firms reorganize and utilize apprenticeship programs and are aware of government regulations on training. Firms utilize bilingual trainers. Firms utilize team training and carefully observe training programs that exist.

A businessperson who wants to do business in France should understand that _____. French people are highly status conscious French people have the shortest vacations in the world most French people encounter a lot of change in social status all French people are motivated by competition in their workplace

French people are highly status conscious

Identify a characteristic of low-context cultures. Insiders and outsiders are easily distinguishable. Authority is not diffused throughout the bureaucratic system. Agreements tend to be spoken rather than written. Great value is not given to deep personal involvement with others.

Great value is not given to deep personal involvement with others.

Identify the true statements about the human resource management (HRM) practices in different countries. (Check all that apply.) In Austria and Finland, employees are automatically given 25 days of paid vacation. The head of human resources is on the board of directors in 87 percent of large Swedish firms. Employees are allowed up to 80 weeks of maternity leave in the United Kingdom. The concept of an hourly wage plays a significant role in Mexico.

In Austria and Finland, employees are automatically given 25 days of paid vacation. The head of human resources is on the board of directors in 87 percent of large Swedish firms.

Identify a true statement about human resource management (HRM) practices worldwide. In Japan, compensation levels are determined by one's skills and performance. In Austria, employees are legally entitled to be given 80 days of paid vacation. In the United States, vacation time is legally mandated. In Mexico, the idea of an hourly wage plays a minor role

In Mexico, the idea of an hourly wage plays a minor role.

Match the countries (in the left column) with the descriptions of their compensation strategies (in the right column). Portugal and Greece Denmark, Netherlands, Germany Individual incentive plans would be more effective than profit-sharing plans because of the high individualism in these cultures. Profit-sharing plans would be more effective than individual incentive plans because of the low individualism in these cultures.

Individual incentive plans would be more effective than profit-sharing plans because of the high individualism in these cultures. Profit-sharing plans would be more effective than individual incentive plans because of the low individualism in these cultures.

What are the guidelines to do business in Russia? (Check all that apply.) Business laws and contracts need to be drafted as they mean as much in Russia as they do in the West. It is important to avoid building personal relationships with business partners. It is advisable to have a local Russian consultant working with every outside company. Businesspeople should be careful about compromising or settling things too quickly.

It is advisable to have a local Russian consultant working with every outside company. Businesspeople should be careful about compromising or settling things too quickly.

Match the types of firms based on their cultural strategic predispositions (in the left column) with their features (in the right column). ethnocentric predisposoition polycentric predisposition regiocentric predisposition geocentri predisposition Lets the values and interests of the parent firm guide strategic decisions Tries to blend its own interests with those of its subsidiaries on a regional basis Makes strategic decisions tailored to suit the cultures of the countries where the multinational corporation (MNC) operates Attempts to integrate a global systems approach to decision making

Lets the values and interests of the parent firm guide strategic decisions Makes strategic decisions tailored to suit the cultures of the countries where the multinational corporation (MNC) operates Tries to blend its own interests with those of its subsidiaries on a regional basis Attempts to integrate a global systems approach to decision making

Identify the guidelines to do business in China. (Check all that apply.) Single out a Chinese employee and praise him or her for a particular quality. Refrain from using self-centered conversation, such as excessive use of the word "I." Understand that the Chinese are an individualistic society. Know that Chinese people are proud of their collective economic accomplishments.

Refrain from using self-centered conversation, such as excessive use of the word "I." Know that Chinese people are proud of their collective economic accomplishments.

Match the types of cultural strategic predispositions in multinational corporations (MNCs) (in the left column) with the associated financial practices (in the right column). ethnocentric polycentric Retention of profits in host country Repatriation of profits to home country

Repatriation of profits to home country Retention of profits in host country

The process of exhibiting the same orientation toward different cultural groups is known as ______.

Simplification

Identify the challenges presented by a multinational corporation's (MNC's) need to adjust global strategies for regional markets. (Check all that apply.) The MNC must assume that all markets are basically the same. The MNC must understand its subsidiaries' strengths and weaknesses. The MNC must stay abreast of the conditions of local markets. The MNC must minimize the autonomy of its subsidiaries.

The MNC must understand its subsidiaries' strengths and weaknesses. The MNC must stay abreast of the conditions of local markets.

Fons Trompenaars found that Shell Oil was using a HAIRL system of appraising personnel in international subsidiaries. Match the components of the system (in the left column) with their descriptions (in the right column). helicopter analysis imagination reality leadership

The ability to take a broad view from above The ability to assess situations logically and completely The ability to be creative and think outside the box The ability to use information pragmatically The ability to effectually galvanize and inspire personnel

True or false: Guanxi is similar to nepotism, where people in authority make decisions based on family ties or social connections rather than objective indices.

True

Identify a result of the study conducted at the largest textile factory in Russia that tested whether organizational behavior modification (O.B.Mod.) interventions that led to performance improvements in U.S. organizations would do so in Russia. The class of interventions associated with O.B.Mod. tends to be useful in meeting the challenges faced by Russian workers and managers. The more positive the perceptions of organizational climate, the lesser the employee commitment. O.B.Mod. approach, which had worked so well in the United States, produced negative results in the Russian factory. As in the United States, the relative attention given to networking activities reduced the Russian managers' opportunities for promotion.

The class of interventions associated with O.B.Mod. tends to be useful in meeting the challenges faced by Russian workers and managers.

What are the factors that continue to move firms to facilitate the development of unique strategies for different cultures? (Check all that apply.) The diversity of global industry standards such as those in broadcasting The significance of being an insider, as in the case of customers who want to "buy local" A continual demand by local customers for undifferentiated products The requirement to allow subsidiaries to be restrained by headquarters

The diversity of global industry standards such as those in broadcasting The significance of being an insider, as in the case of customers who want to "buy local"

In a cross-cultural study, Luthans and his associates examined whether demographic and situational factors identified in U.S.- based literature had the same antecedent influence on the commitment of Korean employees. What were the results of this study? (Check all that apply.) Commitment reduced as structure became more employee-focused. The more positive the perceptions of organizational climate, the greater the employee commitment. Organizational commitment was independent of factors such as employees' position in the hierarchy. Commitment declined as organizational size increased.

The more positive the perceptions of organizational climate, the greater the employee commitment. Commitment declined as organizational size increased.

According to experienced executives, which of the following refers to the primary criterion for doing business in China? The presence of independent labor unions in China China having a high indulgence index China having a low collectivism index The requirement of technical competence in China

The requirement of technical competence in China

Based on Randall and Coakley's study on the impact of culture on successful partnerships in the former Soviet Union, match the types of managers (in the left column) with their likely characteristics (in the right column).Please note the following acronym:CIS - The Commonwealth of Independent States American Managers CIS Managers They are likely to lay off some individuals for the good of their company. They are likely to concentrate on the good of the working community and let their company accept significant profit losses as a consequence.

They are likely to lay off some individuals for the good of their company. They are likely to concentrate on the good of the working community and let their company accept significant profit losses as a consequence.

In the context of the GLOBE project, which compares managerial differences, match the types of managers (in the left column) with their descriptions (in the right column). Argentina and US managers Chinese managers

They are more open to restrictions that are looser and situations that are more unplanned. They favor structured situations, careful planning, and rules.

Which of the following are true about Chinese businesspeople during negotiations? (Check all that apply.) They expect some concessions in return if they give some. They typically fasten the pace of negotiations to conclude arrangements as quickly as possible. They generally carry out the whole negotiation process through intermediaries. They show excessive emotion during negotiations.

They expect some concessions in return if they give some. They generally carry out the whole negotiation process through intermediaries.

What are the typical characteristics of Brazilian businesspeople? (Check all that apply.) They tend to avoid risky endeavors. They tend to possess a relaxed work ethic. They give prime importance to punctuality. They see time in a very relaxed manner.

They tend to possess a relaxed work ethic. They see time in a very relaxed manner.