Cumulative Final Exam
Zaibatsu: Pre-war Japan
- The term zaibatsu 財閥 is applied to certain giant financial, commercial, and industrial combines - Is loosely used for prewar big business in Japan - The four largest zaibatsu in the 1920s Mitsui, Mitsubishi, Sumitomo, and Yasuda - Centralized control in a Zaibatsu family - Well-knit tightly controlled relationships by means of holding companies, interlocking directorship
What is keiretsu?
6 major keiretsu: Mitsubishi, Mitsui, Sumitomo, Fuyo, Dai-Ichi Kangyo, and Sanwa Keiretsu is an organizational structure that is comprised of several aspects - Financial: cross shareholdings, stock cross ownership - Managerial: exchanging of management expertise, advice, training (collective) - Exclusion: keeps foreign competition out of domestic economy - Political: tightly interwoven relationships with government - Social: "old boys network" of presidents and senior executives
Stereotyping
A cultural profile that tends to develop some tentative expectations—some cultural context—as a backdrop to managing in a specific international setting
Cultural region
A cultural region is a geographical area with relatively homogeneous cultural elements. These elements can include religion, language, cuisine or architecture, and many other complex activities.
Joint Venture
A new independent entity is jointly created and owned by two or more parent companies. A joint venture is *Not* a merger of two existing companies.
Expatriate
A person who lives outside their native country
What is culture?
A set of shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations
Power Distance
A society's acceptance of unequal power distribution. - In high power distance cultures, formal authority and hierarchy are very respected. Thus leadership tends to be autocratic and centralized. In low power distance cultures superiors and subordinates are more likely to view one another as equals, leading to more cooperation.
What is chaebol?
Chaebol 財閥 - A family-controlled business conglomerates in Korea - Family owns holding company which in turn owns affiliated companies - Virtually control most of the big business activities - Diversification - Cross shareholding - Chaebol ownership dominates Korean markets
Kinesic behavior
Communication through body movements (posture, gestures, facial expressions, and eye contact)
Assertiveness
Concerns how much people are expected to be tough, confrontational, and competitive versus modest and tender.
Performance Orientation
Concerns the importance of performance improvement and excellence and refers to whether people are encouraged to strive for continued improvement
Horizontal keiretsu
Conglomerates covering several industries linked by cross-shareholding, intra-group financing and high level management by a central body of directors
GLOBE (Global Leadership and Organizational Behavior Effectiveness)
Dimensions are based on data gathered by 170 researchers over seven years. The data were collected from 18,000 managers in sixty-two countries.
Vertical keiretsu
Groups around one big manufacturer and consist of a multi-layered system of suppliers focused on the core company (e.g. Toyota)
Moral Universalism
Guideline for code of morality - Addressing the need for a moral standard that is accepted by all cultures
Ethical Relativism
Guideline for code of morality - Adopting the moral code of whatever country in which the firm is operating in
Ethnocentric Approach
Guideline for code of morality - Applying the morality used in home country, regardless of the host country's system of ethics
Paralanguage
How something is said rather than the content
Hofstede's Study
In 1980, 116,000 people were surveyed in 50 countries Criticism: only ONE MNC examined- IBM.
GLOBE Research Project Dimensions
Includes: - Assertiveness - Future Orientation - Performance Orientation - Humane Orientation
Trompenaar's Dimensions
Includes: - Obligation (universalistic v particularistic); - Emotional orientation (neutral versus affective); - Privacy (specific v diffuse); source of - Power/status (achievement v. ascription)
Hofstede's Value Dimensions
Includes: - Power Distance - Uncertainty Avoidance - Individualism vs. Collectivism - Masculinity vs. Femininity - Long-Term vs. Short-Term Orientation
Source of power/status - Personal or Society
Individual achievement (personal) or ascribed status/power (society)
Know the concept of subcontracting and why it's bad
Know the concept of subcontracting and why it's bad
Subcultures
Many countries comprise diverse *BLANK* whose constituents conform only in varying degrees to the national character. Example: Canada
Humane Orientation
Measures the extent to which a society encourages and rewards people for being fair, altruistic, generous, caring, and kind.
Ecological Fallacy
Occurs when you make conclusions based on analysis of group data
Exceptional Fallacy
Occurs when you reach a group conclusion based on one part of the group
CSR Dilemma
Profit is an MNC's only goal vs. MNC's should anticipate and solve social needs
Velocity of information
Rate at which technical information about product development is shared, built on, and reconstituted between individuals and firms
Long-Term vs. Short-Term Orientation
The extent to which a culture programs its members to accept delayed gratification of their material, social, and emotional needs. - Managers from these cultures strive toward long-term goals; they value investment in the future and are prepared to sacrifice short-term profits.
Uncertainty Avoidance
The extent to which people feel threatened by ambiguous situations. - High uncertainty avoidance cultures are very uncomfortable with ambiguity and tend to have strict laws and closely followed procedures. In businesses, managers tend to make low-risk decisions, employees are not aggressive, and lifetime employment is common. Low uncertainty avoidance cultures are more comfortable with ambiguity. In these cultures, company activities are less formal and structured, managers take more risks, and employees have more job mobility.
Proxemics
The influence of proximity and space on communication—both personal space and office space or layout - High-contact cultures: prefer to stand close and to experience a "close" sensory involvement - Low-contact cultures: have a "distant" style of body language.
Organization for Economic Cooperation and Development convention on bribery
The organization for Economic Cooperation and Development convention on bribery has been signed by 36 countries. Nonetheless, evidential problems hinder prosecution—unless there is a complaint or whistle blowing.
Attribution
The process in which people look for an explanation in another person's message
Negotiation
The process of discussion by which two or more parties aim for mutually acceptable agreement
Communication
The process of sharing meaning by transmitting messages through media such as words, behavior, or material artifacts
Individualism
The tendency for people to look after themselves and their immediate families only and to neglect the needs of society. - Democracy, individual initiative, and achievement are valued. Collectivism entails tight social frameworks, emotional dependence on the organization, and strong belief in group decisions. Countries scoring higher on individualism tend to have higher GNPs and freer political systems. Social loafing is more common in individual than in collective cultures.
Communication Process
Thoughts -> words and symbols -> interpretation of words and symbols-> understanding of thoughts
Emotional orientation - (neutral v. affective/emotional)
To what extent to people value restraint in their emotions? How much effort is made to control emotions?
Honne
What one says
Tatemae
What one thinks
Cross shareholding
When two or more corporations own shares in one another Gives each corporation: - Financial incentives to help the other perform - Financial disincentives to compete with one another - A degree of control in the decision-making of one another
Ethnocentrism
describes the attitude of those who operate from the assumption that their ways of doing things are best—no matter where or under what conditions they are applied. (P&G's sale was set back in Japan)
Guanxi
"friendship with implications of continued exchange of favors"
Polychronic Cultures
(Latin Americans, Arabs): tolerate many things happening simultaneously and may focus on several things at once
Monochronic Cultures
(Switzerland, Germany, United States): time is experienced in a linear way
Trompenaar's Study
in 1993, More rigorous research design compared to Hofstede 15,000 managers from 28 countries, representing 47 national cultures and various organizations. Examines many of the same cultural dimensions as Hofstede
Parochialism
occurs, for example, when a Frenchman expects those from or in another country to automatically fall into patterns of behavior common in France. (narrow-mindedness)
Convergence
the phenomenon of the shifting of individual management styles to become similar to one another
Self-Reference Criterion
the subconscious reference point of ones own cultural values. Many people in the world understand and relate to others only in terms of their own cultures (interrupt conversations, East vs West)
Steps to Ethical Decision
1 - Consult the laws of both home and host countries - such as the FCPA 2 - Consult the International Codes of Conduct for MNE's 3 - Consult the company's code of ethics and established norms 4 - Weigh Shareholder's rights 5 - Follow your own conscience and moral code
The Negotiation Process
1 - Preperation 2 - Relationship Building 3 - Exchange of Task-Related Information 4 - Persuasion 5 - Concessions and Agreement
Types of Codes of Conduct
1) Company Specific - Regulate supply chains by using codes of conduct 2) Industry Wide - Agreements among producers to operate in a particular way
Noise
Anything that undermines the communication of the intended meaning is typically referred to as:
Deresky's definition of "societal culture" (because it shows the process by which geography helps to shape culture)
Because these have geographic dimensions, the expression of culture can also be seen as a geographic phenomenon.
Cultural Differences That Impact Negotiating
Cultural *BLANK* that Impacts *BLANK* - Desire for a long-term relationship or just a one-time deal - Preference to win negotiation or preference for a win-win situation - Informal or formal attitude - Direct or indirect communication style - Show emotions or hide emotions - Decisions made by the group or by a leader
Masculinity vs. Femininity
Refers to the degree to which traditionally masculine values (e.g., assertiveness, materialism, and lack of concern for others) prevail, versus The traditionally feminine values of concern for others, relationships, and quality of life. In more feminine cultures one tends to find less work-family conflict, less job stress, more women in high-level jobs, and a reduced need for assertiveness.
Future Orientation
Refers to the level of importance a society attaches to future-orientated behaviors such as planning and investigating in the future.
Obligation - (universalistic v. particularistic)
Rules and systems should apply universally or should be tailored to the circumstances and people involved in each individual case.
Privacy in Relationships
Specific (separate work from home life) or diffuse (home relationships spill over into work and visa versa)
Foreign Corrupt Practices Act (FCPA)
The FCPA was created to help Americans distinguish between harmless practices (e.g., gift giving) and bribery. The FCPA prohibits illegal payments, or other gifts, or political contributions to foreign government officials for the purposes of influencing them in business transactions. Penalties include severe fines and sometimes imprisonment.