MGT 304 Exam 2

Attention-interpretation-action Model (AIA) of interpersonal communication

Attention--> *What do I see or hear?* Interpretation--> *What does it mean?* Action--> *How should I respond?* Takes place in a *communication environment* which includes: -competing messages -visual and audible noise -interpersonal relationships -power distance -knowledge distribution -attitudes and perceptions -pressing needs and cultural screens Diagram: Person 1 (Attention) --> Person 1 (Interpretation) --> Person 1 (Action) --> Person 2 (Attention) --> Person 2 (Interpretation) --> Person 2 (Action)

Leadership in the West

Beliefs: seek to achieve ideal end state. *eîdos* (ideal) as an ideal form that humans should aspire to and achieve as *télos* (goal). Goals: establish and pursue aspirational goals; manage the result. Logic: Logic of application; articular objectives and determine reasonable means to desired ends. Preferences: preference for action; capture the initiative.

Leadership in China

Beliefs: seek to balance countervailing forces (yin and yang) Goals: create conditions conducive to success; manage the process Logic: logic of exploitation; places oneself in a position to exploit opportunities as they emerge Preferences: preferences for patience; let events come to you

Leadership

ability of a manager to influence, motivate and enable others within the organization to contribute towards the effectiveness and success of the enterprise. what matters most is how individual managers can see and understand the on-the-ground situational and cultural realities and then capitalize on their own unique personal skills and abilities to get the job done by working through people from different cultural backgrounds.

contract

an agreement between two or more parties that establishes rules governing their business transaction

Autonomous Leadership (GLOBE)

individualistic, independent, unique endorsed in eastern Europe and german clusters; weaker endorsement in Latin American Cluster

Hierarchical societies

leaders are often seen as being separate and apart from their followers

egalitarian societies

leaders are often seen as more approachable and less intimidating

collectivistic societies

leadership is often less associated with individuals more closely aligned with group endeavors.

individualistic societies

leadership typically refers to a single person who guides and directs actions of others, often in a very visible way.

One of the top concerns labeled by 1,000 ceos in more than 50 countries

leading diverse cultures

transactional leadership model

managers work to build concrete exchange relationships with employees that largely determines results.

transformational leadership (charismatic leadership) model

managers work to create a universally accepted vision of where the group or org should go and then uses moral persuasion to reinforce this mission.

Guanxi contracts

much of the business is conducted on the basic of personal relationships and mutual trust, as in guanxi in china. In these regions, prospective partners often see written contracts as a sign of distrust; contracts an unnecessary among trusted friends.

2 types of ethical conflicts

(1) conflicts between people's different core beliefs and values (2) conflicts between ethical imperatives and institutional requirements.

OECD 3 guidelines on environmental stewardship

(1) public health risk (2) environmental impact (3) accident prevention

2 basic strategies for negoiation

*1. Competitive negotiation* *2. Problem-solving negotiation*

Limitations on contemporary models

*1. Leadership is a cultural phenomenon* *2. Culture changes leaders expectations.*

GLOBE Criteria for Leader effectiveness. *Impediments*

-anti-social -self-protective -loner -non-cooperative -malevolent -autocratic -dictatorial

5 Process strategies for resolving conflicts

1. Accommodating 2. Collaborating 3. Competition 4. Avoid 5. Compromise

Globe Leader Dimension

1. Autonomous Leadership 2. Charismatic/value-based leadership 3. Humane Leadership 4. Participative Leadership 5. Self-protective leadership 6. Team-oriented Leadership

4 GLOBE attributes of a ethical global leader

1. Character and integrity 2. Encouragement 3. Altruism 4. Collective motivation

Chinese Leadership

"A leader is best when people barely know he exists, who talks little and when the work is done and the aim is fulfilled, people will say, 'we did this ourselves'".

Universal Approach (Contemporary)

"Leadership is leadership is leadership." Leader as a universal leeader Managers consider leaderships to be a organizable, or universal behavior regardless of where it is exercised. The belief that leadership traits and processes are relatively constant across cultures. Who: Most western theories of leadership e.g. transformational leadership vs. transactional leadership (usa) and gatekeeping leadership (japan)

USA Leadership

"Leadership is like beauty; it's hard to define, but you know it when you see it."

"Pok chow" in Malasysia

"Pok chow" --> "gang contracting" individual workers band together under a leader who finds work for the crew, organizes activities of the crew members and distributes compensation. especially popular in the construction industry.

OECD 5 Guidelines for Ethical Managerial Behavior

(1) Bribery and Corruption (2) Employment relations (3) environment stewardship (4) technology transfer (5) general business practices

OEECD 6 guidelines on bribery and corruption

(1) Bribes (2) Remuneration (3) Transparency (4) Advocacy (5) Controls (6) Contributions

OECD 7 Guidelines on fair employment practices

(1) Employee representation (2) employee standards (3) employee training and development (4) lay-offs and dismissals (5) Equal employment opportunity (6) freedom from coercion (7) right of collective bargaining

5 stages in negotations

(1) Preparation (2) Relationship building (3) Information exchange and first offer (4) Persuasion (5) Concessions (6) Agreement

Stages of Negotiation in Problem-Solving Bargaining

(1) Preparation: Define the long-term strategic interests of your firm. Prepare to overcome cross-cultural barriers to defining mutual interest. (2) Relationship building: Adapt to the other side's culture. Separate the people involved in negotiation from the problems and goals that ned to be solved. (3) Information exchange and first offer: Give and demand to receive objective information that clarifies each party's interests. Accept cultural differences in speed of response and type of information needs. make firm but reasonable first offer. (4) Persuasion: Search for new creative options that benefit the interests of both parties. (5) Concessions: Search for mutually acceptable criteria for reaching record accord. Accept cultural differences in starting position and in how and when concessions are made. (6) Agreement: Sign when the interests of your firm are met. Adapt to cultural differences in contracts when necessary.

Stages of Negotiation in Competitive Bargaining

(1) Preparation: Identify current economic and other benefits your firm seeks from the deal. Prepare to defend your firm's position. (2) Relationship Building: Look for weaknesses in your opponents position. Learn about your opponent, but reveal as little as possible (3) Information exchange and first offer: Provide as litle information as possible to your opponent. Make your position explicit. Make a hard offer that is more favorable to your side than you realistically expect to achieve. (4) Persuasion: Use dirty tricks and pressure tactics when appropriate to win. (5) Concessions: Begin with high initial demands. Make concessions slowly and grudgingly. (6) Agreement: sign only if you win and then ensure you sign an ironclad contract

Dimensions of a Global Mindset

*1. Personal Work Style.* -high "cultural quotient" -flexibility and open-mindedness -effective global communicator and collaborator -skills in being a global team player -ability to balance global and local goals, behaviors, and management practices. *2. General Perspectives* -ability to take broad, long-term systems perspectives. -emotional resillience and personal autonomy -ability to embrace and support change -ability to work across organizational boundaries -ability to operate seamlessly in cross-cultural and cross-functional environments -thirst for global learning as a path for career development.

3 steps for preparing for cross-cultural negotiations

*1. Select the right partner* -seek compatible goals -seek complementary resources and cultures -seek mutual commitment -seek philosophical and operational compatibility *2. Develop a negotiating strategy* -consider end state -help other side prepare -identify responsibility -send clear message -take a business-like approach *3. Manage the negotiation process. * -focus on the long term -understand other's goals -avoid cultural stereotypes -Note timing: be flexible -plan carefully -Listen, don't just speak

How many contemporary approaches to cross-cultural management are there?

*3* 1. Universal approach 2. Normative Approach 3. Contingency Approach

Number of Culture and Communication Protocol

*4* 1. Appropriate or inappropriate topics of discussion 2. Message Formatting 3. Conversational formalities. 4. Acceptable and unacceptable behaviors.

How many GLOBE attributes are there of an ethical global leader?

*4* 1. Character and integrity 2. Encouragement 3. Altruism 4. Collective motivation

Number of Culturally Mediated Cognition Screens

*4* 1. Language and linguistic structures. 2. Selective perception (confirmation bias) 3. Cognitive evaluation 4. Cultural Logic

How many dimensions are there of organizational leadership (leadership styles)?

*4* 1. Strategic Leadership 2. Managerial Leadership 3. Team Leadership 4. Ethical Leadership

How many OECD guidelines are there for Ethical managerial behavior?

*5* (1) Bribery and Corruption (2) Employment relations (3) environment stewardship (4) technology transfer (5) general business practices

High-context cultures

*Asia and Middle East societies* -subtle message content -non-verbal (contextual) cues often very important -status differences often affect both medium and message ex: declining a request with vagueness or body language.

Cognitive Evaluation (Culture Screen 3)

*How people process what they see of hear* characteristics: -attaching meanings to messages -ex: norms of authenticity

Language and Linguistic structures (Culture Screen 1)

*How we express our thoughts.* The manner in which words, grammar, syntax and the meaning of words are organized and used. lingua franca - language of global business --> English Characteristics: -Language-in-use -Formal or informal language - native or non-native speaker ex: The fourth floor

Contingency Approach (Contemporary)

*No universals* Leader as a local or regional manager assumes that there are no universals in describing effective leadership successful leaders in NYC may fill in Toyko or Paris if they are unable to modify their behaviors to suit the unique local environment. This approach looks at leadership as a culturally embedded process, not a series of personal traits of the manager or followers. Assumed that characteristics of success with vary with the situtation Examples: GLOBE Leadership, Symbolic Leadership

Acceptable Behavior (Protocol 4)

*Westerner Managers:* -encouraged to be assertive and take the initiative in convos -leave conversation once main topic is finished -communicate linearly with explicit links between topics and ideas, favoring a planned approach to communication *Asian managers:* -often expected to remain silent and wait to an invitation to speak. -prefer a more non-linear approach to communication, following a circular pattern *Spain Managers:* -expected to linger awhile and talk about other things before leaving even if main topics are finished. *Mediterranean managers:* -favor a zigzag approach to communication in which tangential ideas may be explored and elaborated before returning to the main point.

Selective perception (confirmation bias) (Culture Screen 2)

*What people focus on *(eye of the beholder) Information is in the *"eye of the beholder"* - the information he or she is expecting or looking for-while other potentially useful information is often left by the wayside. characteristics: -focussing on immediate demands -sensing or missing non-verbal messages. ex: non-verbal communication

Cultural Logic (Culture Screen 4)

*interpreting messages based on our assumptions about normative behavior. * Culture Logic: The process by which people attribute meaning to the words and actions of others on the basis of local meanings embedded within their own culture. Assumptions about shared meaning; A shared cultural logic helps people *fill the gaps* left by what is unsaid and thereby facilitating the process of creating shared meaning. Allows for *simplified and rapid communication* when moving across cultures. Characteristics: assuming that others think and act in the same manner as we do.

Conversational Formalities (Protocol 3)

*understand etiquette* Conversational formalities encompass formal or implicit guidelines and rules governing what constitutes acceptable or preferred formal conversational etiquette. Every culture places constraints on how, when, and where we speak to others. -use titles -speaking order -use of apologies

Low-context cultures

*western cultures* -overt message content; frank; to-the point -non-verbal cues foten unimportant or ignored -message typically more important than medium -status differences can affect the message or medium ex: declining a request by saying "no"

Problem-solving negotiation

-begins with the basic tenet that negotiators must separate positions from interests -seeks to discover a win-win solution which both sides can benefit from. -beginning by seeking a mutually satisfactory ground that is beneficial to the interests of both sides.

Pressures to comply with OECD guidlines

-build corporate reputation for honesty, integrity -avoids prosecution for illegal activity by local or home countries -protects employees from outsides pressures -identifies illegal behavior early though continual monitoring -supports corruption-free governments

Confusion limiting our understanding of cross-cultural leadership processed in other countries

-can be traced back to initial assumptions we make about a topic -assumptions guide what we choose to focus on -selective perception

Namaste

-common greeting used on the Indian subcontinent as an expression of deep respect -form of verbal and non-verbal communication -meaning--> *"I bow to you"*

Competitive negotiation

-each side tries to give as little as possible -win-lose game -frequently begin with unrealistically high demands and make concessions only grudgingly -sometimes use dirty tricks or tactics that will allow them to win

Appropriate or inappropriate topics (Protocol 1)

-family and health issues (illness or bad fortune) -personal wealth -conversation sequencing (*"small talk"* --> westerners want to get right down to business)

GLOBE Criteria for Leader effectiveness. *Culturally contingent beliefs about facilitators of leadership effectiveness*

-individualistic -autonomous -status-conscious -risk-taking

Pressures to ignore OECD guidelines

-many threaten nw local business opportunities -risks government retaliation for non-payment bribes -may fail to protect firm against corrupt or illegal actions between competitors -can ultimately threaten corporate revenues and profitability

Message formatting (Protocol 2)

-message *content* and *context* communicating in *high-context* and *low-context* cultures. example: *Silent Language*

Challenges to global partnerships

-overlook long-term objectives -lack of long-term commitment -resistance to share key personnel or technology -conflict over benefit distributions -potential loss of local control -changing business conditions negating original reasons to partnership

Benefits of Global partnerships

-promote growth -acquire new technologies -respond to government pressures -take advantage of exchange rates -respond to economic changes -reduce operations costs -get closer to clients -diversify operations and markets -opportunities for vertical integration

GLOBE Criteria for Leader effectiveness. *Facilitators*

-trustworthiness -integrity -visionary -charismatic -inspirational -motivational -communicative -team builder

How to develop the art of negotiation

-understanding basic negotiation processes is a good beginning -developing specific bargaining strategies and tactics is another -and once-agreements have been signed, knowing how to implement them is also important

Culture and Communicate Protocols (4)

1. *Appropriate or inappropriate topics of discussion* 2. *Message Formatting* 3. *Conversational formalities.* 4. *Acceptable and unacceptable behaviors.*

4 Culture Screens of Culturally Mediated Cognitions

1. *Language and linguistic structures.* 2. *Selective perception* (confirmation bias) 3. *Cognitive evaluation* 4. *Cultural Logic*

4 Dimensions of Organizational Leadership (Leadership styles)

1. *Strategic Leadership* 2. *Managerial Leadership* 3. *Team Leadership* 4. *Ethical Leadership*

Contemporary approaches to cross-cultural leadership

1. *Universal approach* 2. *Normative Approach* 3. *Contingency Approach*

7 Strategies to facilitate successful negotiation

1. Concentrate on building long-term relationships with your partner, not short-term contracts 2. Focus on understanding the organizational and personal interests and goals behind the states bargaining positions. 3. Avoid over-reliance on cultural generalizations. 4. Be sensitive to timing 5. Remain flexible throughout negotiation 6. Plan carefully 7. Learn to listen, not just speak.

5 key factors to successful global partnerships

1. Solid Compatibility of strategic goals and tactics 2. Complementary value-creating resources 3. Complementary organizational cultures 4. Strong commitment to the partnership from both sides 5. Strong philosophical and operational compatibility

5 Steps to developing a negotiating strategy

1. Start with the end in mind. 2. Help the other side to prepare. 3. Treat alignment as a shared responsibility 4. Send one clear message 5. Manage negotiations like a business process

Managing in an imperfect work challenges

1. bribery and corruption 2. fair employment practices 3. environmental stewardship

People strategies for resolving conflicts

1. prepare people 2. assess the situation 3. explore past and present 4. envision the future 5. create solutions 6. rejuvenate and reflect 7. don't forget relationships

Women in Leadership in US

22% in senior leadership

Women in Leadership in China

38%

Women Leadership in Russia and Japan

43% women in senior leadership in Russia (most) 9% women in senior leadership in Japan (least)

How many key factors are there to building a successful global partnership

5

How many GLOBE leadership dimensions are there?

6 1. Autonomous Leadership 2. Charismatic/value-based leadership 3. Humane Leadership 4. Participative Leadership 5. Self-protective leadership 6. Team-oriented Leadership

Participative Leadership (GLOBE)

Active listening, non-autocratic, flexible wide variations in endorsements across all regions, but less so in Arab and Latin American clusters.

The fourth floor as an example of Language and Linguistic Structures

Americans use ground and 1st interchangeably British distinguish between ground and first and would most likely go to the 5th level of a building to get to the first floor.

Team-oriented leadership (GLOBE)

Collaborative, integrating, diplomatic endorsed in all region, but particularly in anglo, asian and latin American clusters; less so in Arab Cluster

General business practices (competition, consumer protection)

Competition: encourages open and fair competition, particularly involving local firms; support local governments . attempt to open markets Consumer protection: encourages fair business, marketing and advertising practices; promote product safety and quality

Employment practices

Encourages fair treatment of all local employees consistent with prevailing local conditions

Ethical Leadership (Organizational Leadership Dimension)

Ethical behavior and social responsibility *Manage corporate values*

Strategic Leadership (Organizational Leadership Dimension)

Focus: Corporate missions, objectives, and corporate culture *Manage corporate mission*

Managerial Leadership (Organizational Leadership Dimension)

Focus: Operational control and accountability *Manage performance*

Team Leadership (Organizational Leadership Dimension)

Focus: Team cohesion, direction and performance. *Manage Processes*

Importance of outcome vs. importance of relationship

Importance of outcome is on X axis, importance of relationship on Y if you need to equally weight both, compromise. If you can focus more on outcome, compete, if you can focus more on relationship, accommodate, if you neither are that important, avoid and if both are really important, collaborate

Leadership is a cultural phenomenon (limitation 1)

Its meaning is embedding in the diverse cultures in which it is exercises and changes accordingly individualistic , collectivistic, hierarchical, and egalitarian societies

Gatekeeping Leadership (Japan)

Japanese study found that transformational leaders were often seen as too abstract while transactional leaders are often see as too mercenary ---> both too manipulative Japanese alternative is gatekeeping leadership-> *managers who work to reduce the barriers to successful performance among their subordinates. *

Humane Leadership (GLOBE)

Modest, tolerant, sensitive, concerned about humanity endorsed particularly in Anglo, Asian and sub-Saharan African clusters; less so elsewhere

Contracts under doctrine of fixed circumstances

Personal relationships follow contracts (universalism) Contracts specific and inflexible regarding changing of circumstances long, detailed and legalistic contracts backed by national and international legal systems

Normative Approach (Contemporary)

The leader as a global manager Focus on enduring personal skills and abilities that are thought to characterize effective "global" managers. These models are prescriptive in nature and suggest how managers should approach leadership in a global setting. The focus is on the leader as a global manager. It is assumed that a common set of leader traits and abilities apply to all managers regardless of where they are working. ex: global mindset

GLOBE Leadership as an example of the Contingency Approach

To a large degree, leadership is culturally contingent- that is, the qualities of effective leaders often vary across cultures.

Silent Language as example of Message Formatting

Used to convey meaning w/o words "Whatever the culture, there's a tongue in our head. Some use it, some hold it, and some bite it. For the *French it is a rapier*, thrusting in attack; the *English, using it defensively, mumble a vague and confusing reply*; for *Italians and Spaniards it is an instrument of eloquence*; *Finns and East Asians throw you with their constructive silence*."

Charismatic/value based leadership (GLOBE)

Visionary, inspirational, sacrificing, decisive, performance-oriented endorsed in all regions, but particularly anglo, asian and latin American clusters; weaker endorsement in Arab cluster

norms of authenticity

belief that external actions and emotional displays are or should be generally consistent with internal states emphasized by western cultures, but seen as immature, impolite and bizarre by East and Southeast asian societies. Westerners: "Speaking one's mind" or "telling it how it is" Asia: give more importance in communication processes to what is left unsaid instead of what is said in open and direct ways.

Global Mindset

can be defined by a "highly complex cognitive structure characterized by an openness to and articulation of multiple cultural and strategic realties on both global and local levels and the cognitive ability to mediate and integrate across this multiplicity." 3 skills: 1. an openness and attentiveness to multiple realms of action and meaning 2. a complex representation and articulation of cultural and strategic dynamics . 3. a mediation and integration of ideals and actions oriented towards global and local levels alike.

Contracts under the doctrine of changed circumstances

contracts follow personal relationships (particularism) contacts general and flexible based on changed circumstances short, general, personalistic contracts backed by personal integrity, trust, and relationships

Culturally Mandated protocols

cultural influences on communication protocols or required behaviors, such as how we construct or shape our messages in ways that may be culturally consistent for us but problematic for our intended receivers.

Culturally mediated cognitions

cultural influences on individual cognitions surrounding communication episodes-that is, how people and messages are often evaluated and processed in the mind of the senders and receivers alike

Bribery and corruption

encourages companies to take a public position against bribery and corruption and discourage such activities in securing or operating a firm.

Environmental stewardship

encourages protection of the local government from unsafe products and practices and help mitigation of any damage where it occurs.

Technology transfer

encourages technology diffusion and local licensing of technological processes and technology-based products and services.

ethical beliefs, institutional requirements and social control

ethical beliefs and values --> normative influences on institutional requirements--> institutional requirements (e.g. laws, regulations) --> social control, stability and continuity --> (beginning)

Doctrine of changed circumstances

holds that when circumstances beyond a business partner change (e.g. hurricane damage, changes in government policies, price increase for raw materials) both partners are obliged to renegotiate the original contract so that neither party loses materially

non-verbal communication

non-verbal communication is used throughout much of Asia as a way to convey information with subtlety (e.g. rejecting a request without anyone losing face), many in the west simply fail to notice it. US: "Say what you mean, and mean what you say." Asia: "Silence is a form of speech so don't interrupt it."

Symbolic Leadership as an example of Contingency Approach

occurs when people, usually senior executives or CEOs accept full responsibility for setbacks and crises on behalf of the entire organization. commonplace throughout Asia through voluntary resignation, harmony is restored and an org can move forward. seldom used in west, stepping down is often seen as a sign of weakness.

Cultural screens

or lenses, that affect both interpersonal interactions in general and multicultural interactions in particular Can best be understood as a part of the communication environment, they represent potential impediments or barriers in the basic AIA model 2 lenses: 1. *Culturally Mediated cognitions* 2. *Culturally mandated protocols* Person 1 (Attention, Interpretation, Action) --> Cultural Screens (Culturally mediated cognitions, culturally mandated protocols) --> Person 2 (Attention, Interpretation, Action) --> Cultural Screens (Culturally mediated cognitions, culturally mandated protocols)

Particularism

other people believe that truth is in the *eye of the beholder* and that people in different cultures may have different beliefs about enduring trusts. tend to favor relationships, flexibility and sometimes ambiguity -truth is subjective -society can tolerate ambiguity -right or wrong is determined by circumstances and relationships, not just religion, rules and law

institutional conflicts

represent difference over what is legal or consistent with determined public policy -enforcement or punishment implications *-focus on what is legal*

ethical conflicts

represent disagreements that arise when two or more people (or groups) disagree on what is morally or philosophically ethically correct -spiritual or moral implications *-focus on what is moral*

ethical standards

reside within people, not organizations. Organization have no ethical standards, it is only their members- executives, managers, rand and file employees- who determine whether or not a particular company will act ethically or responsibly at any given point in time, and even this determination is int he eye of the beholder are often amorphous, conflicting and transitory.

Self-protective leadership (GLOBE)

self-centered, procedural, status-conscious, face-saving wide variations in endorsements across all regional clusters

interpersonal communication

simple and often unintended words, behaviors, signs and symbols can lead to misunderstandings, embarrassment, conflict, and even lost business opportunities.

Universalism

some people believe that what they hold to be true is universally correct and true and that people who disagree with their beliefs are simple wrong, misguided or heretics. tend to emphasize norms, values, and predictability -truth is absolute -society requires certainty and predictability -right or wrong determined by religion, rules and laws.

Culture changes leaders expectations (Limitation 2)

the cultural underpinning of acceptable leader behavior vary considerably. Easy versus west societies West: -french expect leaders to be cultivated-high educated in math -dutch stress egalitarianism and are skeptical about value and status of leaders -Americans are often schizophrenic in their choice of leaders; some leaders empower and encourage, other prefer being bold, forceful, confident and risk-oriented. -subordinates in Netherlands are referred to as co-workers or *medeworkers* instead of subordinates and leaders are careful to avoid appearing condescending. East: -Chinese leaders expected to establish and Nuture personal relationships, practice benevolence toward subordinates, be dignified and aloof but sympathetic and treat the interests of employees like their own. -Malaysians expect their leaders to behave in a manner that is humble, model, and dignified. -Japanese leaders are expected to focus on developing a healthy relationship with their employees as employees and managers share the same fate.

Sequential approach to bargaining

they prefer to go through a proposed contract item and get agreement on each item as they process sequentially through the proposals

Holistic bargaining

two parties work their way through the entire proposed agreement, but do not agree to anything until they have completed their review. both parties negotiate entire contract as a whole, moving and back and forth across items until they are fully satisfied with the entire document.

people's explanations of ethical behavior in business are often more focused on ...

what rather than why