Int'l Mgt: Review of Chapter 1-3

Henri Fayol's (1916) Definition of Management

" To manage is to plan, organzine, coordinate, command and control."

Factors of Culture

Common history, geographic location, language, religion, climate, political boundaries and economic system.

The Six International Management Theories

Comparative Theory= Management study conducted in two or more countries. Domestic Theory= Management studies in a single country. Indigenous Theory= Indiviual management studies concieved and executed in one or many countries. International Theory= Studies of multinational organziations. Intercultural Theory= Studies of intercultural interactions in organizations. Replication Theory= Management studies in a single country.

Three Levels of Culture

Compared to an Iceberg. The tip of the iceberg is artifacts, but below the surface, there's espoused values and basic underlying assumptions.

Individuals carry three levels of programming in their minds about how they interact with their environment. What do they carry at the BROADEST level? A. Ideas about how culture is shared B. All human beings share certain biological reactions C. Personality characteristics that are unique to each of us as individuals D. Shared experiences within a particular society

Ans: All human beings share certain biological reactions

______ is (are) a collective phenomenon that is about elements of our mental programming that we share with others in a society. A. Beliefs B. Attitudes C. Culture D. Values

Ans: Culture

The convergence perspective suggests that a common economic orientation will eventually lead to a common society where differences in ______ will cease to exist. A. labor B. education C. politics D. ideology

Ans: Ideology

Culture is transmitted through the process of ______ and interacting with the social environment. A. talking B. learning C. hearing D. governing

Ans: Learning

Questions: Hofstede suggests that culture consists of shared ______ that control individuals' response to their environment. A. social stimuli B. mental programs C. knowledge D. attitudes

Ans: Mental Programs

From an international business perspective, ______ culture is probably the most logical level of analysis from which to begin to understand the cultural environment. A. religious B. ideological C. global D. national

Ans: National

Individuals carry three levels of programming in their minds about how they interact with their environment. What do they carry at the NARROWEST level? A. Ideas about how culture is shared B. All human beings share certain biological reactions C. Personality characteristics that are unique to each of us as individuals D. Shared experiences within a particular society

Ans: Personality characteristics that are unique to each of us as individual

. ______ can have a cultural influence through the content of their belief systems, the structure of their beliefs and rituals, and the identities they promote. A. Religious traditions B. Language C. Climate D. Attitudes

Ans: Religious traditions

In the case of culture, ______ means that most members intuitively understand the basic values, norms, or logics that underlie what is acceptable. A. shared B. learned C. organized D. systematic

Ans: Shared

Individuals carry three levels of programming in their minds about how they interact with their environment. What do they carry at the INTERMEDIATE level? A. Ideas about how culture is shared. B. All human beings share certain biological reactions. C. Personality characteristics that are unique to each of us as individuals. D. Shared experiences within a particular society.

Ans: Shared experiences within a particular society

Questions: Culture is all of the following EXCEPT: A. shared B. transmitted between generations C. systematic D. unorganized

Ans: Unorganized

Hosftede's Cultural Dimensions

Based on questionnaire surveys of 117,000 IBM nonmanagerial sales and service employees, Hofstede developed four dimensions to classify countries. These dimensions were named individualism-collectivism, power distance, uncertainty avoidance, and masculinity-femininity. There's focus on relationships.

Humane vs Future Orientation

Based on the nature of people and time orientation: Humane orientation: the degree to which a collective encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others. Future orientation: the extent to which individuals engage in future- oriented behaviors, such as delayed gratification, planning, and investing in the future.

Ethnocentrism

Belief in the superiority of one's nation or ethnic group.

Narrowest Level

Personal characteristics that are unique to each of us as indiviual.

Social Axioms

Provide a complementary way to understand societal cultures. Basic truths or premises. Ex. studying a lot will get you high grades.

Power Distance

Refers to the extent that power differences are accepted and sanctioned in a society.

Broadest Level

All human beings share certain biological reactions.

World Trade Organization

An international organization founded in 1995 with the purpose to regulate trade amongst countries.

Limits of Country Culture Research

-Nature of the sample used -Nature of the questions -Researcher bias

Multinational Corporation (MNC)

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management.

Gender Egalitarianism and Assertiveness

Reconceptualization masculinity/femininity. Gender egalitarianism: the degree to which a collective minimizes gender inequality. Assertiveness: the degree to which individuals are assertive, confrontational, and aggressive in their relationships with others.

Trompenaar's Cultural Dimensions

1. Universalism vs. Particularism 2. Individualism vs. Communitarianism 3. Neutral vs. Emotional 4. Specific Universalism vs. Particularism 5. Achievement vs. Ascription Time 6. Environment vs. Diffuse 7. Achievement vs. Ascription 8. Time 9. Environment

Parochialism

A narrow view in which people see things solely through their own perspective.

Trade Facilitation Agreement (TFA)

A trade agreement founded in 2013 promotes world trade with developing and least developed countries.

General Agreement on Tariffs and Trade (GATT)

A trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements.

Chap 2: What is Culture?

Culture is a set of knowledge structures consisting of systems of values, norms, attitudes, beliefs, and behavioral meanings that are shared by members of a social group (society) and embedded in its institutions and that are learned from previous generations. Culture is shared, learned, and systematic and organized.

The three, "Culture is Statements"

Culture is shared. Culture is transmitted through generations. Culture is systematic and organized.

Prejudice

Discrimination when action is taken for or more frequently against members of this out-group.

Elements of Global Managers Environment

Economic, legal, political and cultural.

Seven Value Orientation from Schwartz

Egalitarianism: recognition of people as moral equals. Harmony: fitting in harmoniously with the environment. Embeddedness: people as embedded in the collective. Hierarchy: unequal distribution of power is legitimate. Mastery: exploitation of the natural or social environment. Affective autonomy: pursuit of positive experiences. Intellectual autonomy: independent pursuit of own ideas.

Three Largest Trade Groups

European Union (EU), the North American Free Trade Agreement (NAFTA)/the United States Mexico Canada Agreement (USMCA), and the Asia-Pacific Economic Cooperation (APEC).

Uncertainty Avoidance

Extent to which societies focus on ways to reduce uncertainty and create stability.

Masculinity-Femininity

Extent to which traditional male orientations of ambition, acquisition, and achievement are emphasized over traditional female orientations of nurturance and interpersonal harmony.

Preformance Orientation

Focus on activation and motivation. Performance Orientation: the degree to which a collective encourages 90 and rewards group members for performance improvement and excellence.

Henry Mintzberg (1960s)

He believed that managers have formal authority over their organizational unit and that this status divides their activities into interpersonal, informational, and decisional role categories.

Individualism vs. Collectivism

In the most simple words, the worth of an individual versus the worth of a group. Individualism societal example is United States.

Indulgences vs. restraint

Indulgences Rewarding/treating oneself Ex: USA (western cultures) Restraint Moral person restrains themselves in not falling prey to physical matters. Ex: Middle Eastern cultures

First four GLOBE dimensions

Institutional collectivism: the degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action. In-group collectivism: the degree to which individuals express pride, loyalty, and cohesiveness in their organizations or families. Power distance: the degree to which members of a collective expect power to be distributed equally. Uncertainty avoidance: the extent to which a society, organization, or group relies on social norms, rules, and procedures to alleviate unpredictability of future events.

What level does culture reside on?

Intermediate level- this is based on shared experiences within a particular society. Individuals within a society share an intuition for many of these cultural understandings not shared by outsiders

Foreign Direct Investment (FDI)

Investment made by a foreign company in the economy of another country.

Long-Term Orientation vs Short-Term Orientation

Long- Term Where cultures emphasizes the future, thrift, and persistence. Short Term Where traditions and values are valued.

Loyal vs. Utilitarian Involvement Conservatism vs Egalitarian

Loyal involvement-utilitarian involvement: representing varying orientations toward group members. Conservatism-egalitarian commitment: representing orientations toward obligations of social relationships

Convergence

Modernization results from a common economic orientation and eventually leads to a common society where differences in ideology (values) will cease to exist. It suggests adopting the ideological values of the West.

Chap 1: Globalization Meanings

Multiple definitions, such as crystallization of the world as a single place, overlapping of the interest of business and society, and an increase in the impact on human activities of forces that span national boundaries.

Chap 3: Kluckhohn & Strodtbeck

Relationships to nature: People have a need-duty to control or master nature (domination), to submit to nature (subjugation), or to work together with nature to maintain harmony and balance (harmony). Beliefs about human nature: People are inherently good, evil, or a mixture of good and evil. Relationships among people: The greatest concern and responsibility is for one's self and immediate family (individualist), for one's own group that is defined in different ways (collateral), or for one's groups that are arranged in a rigid hierarchy (hierarchical). Nature of human activity: People should concentrate on living for the moment (being), striving for goals (achieving), or reflecting (thinking). Conception of space: The physical space we use is private or public or a mixture of public and private. Orientation to time: People should make decisions with respect to traditions or events in the past, events in the present, or events in the future.

Cultural Distance (CD)

Represents how disparate one nation is from another in terms of their CSVs. In other words, how far apart countries are culturally.

Schwartz's Value Theory

Schwartz believes that values are motivational in that they "represent broad goals that apply across contexts and time." Values are desirable goals, serve as principles in people's lives.

Individualism-Collectivism

Self-identity of a society's members depends on individual characteristics or the characteristics of the groups to which the individual belongs on a permanent basis and the extent to which individual or group interests dominate.

How many International Management theories are there?

Six

Biculturalism

Some individuals with experience living in multiple cultures acculturate to the extent that they demonstrate the ability to function very effectively in more than one culture. Living in another culture or through intensive daily interaction with culturally different others, developed cultural flexibility so that they can adjust their behavior based on the cultural context of the situation

What does globalization entail?

Some of these interconnections lead to integration/unity worldwide; others do not.

Inglehart

Some support for the convergence hypothesis is also provided by Inglehart's. He identified two value orientations (materialist and postmaterialist) related to a country's wealth.

In-Group Bias

Tendency to favor individuals within our group over those from outside our group.

GLOBE study

The Global Leadership and Organizational Behavior Effectiveness study examined the effect of cultural variables on business practices. This study used nine dimensions to categorize cultures.

The Three Levels of Mental Programming (On a Triangle)- Refer to Notes to See Visual

The Top- Personality The Middle- Culture The Bottom- Human Nature

Much of contemporary management knowledge was defined by what country following World War II?

The United States

Cultural Friction

The attempt to capture the relationship (synergistic or disruptive) between two different cultures as well as their distance.

First Five of Trompenaar's Cultural Dimensions

The first five of these dimensions concerned relationships among people. Universalism-particularism: Universalism is a belief that what is true and good can be discovered and applied universally, whereas particularism is a belief that unique circumstances determine what is right or good. Individualism-collectivism: Similar to Hofstede's definition, this dimension concerns the extent to which people plan their actions with reference to individual benefits versus those of the group. Neutral-affective: In neutral cultures, emotion should be held in check, and maintaining an appearance of self-control is important, whereas in affective cultures, it is natural to express emotions. Specific-diffuse: This dimension refers to the extent to which individuals are willing to allow access to their inner selves to others. In specific cultures, people separate the private part of their lives from the public, whereas in diffuse cultures, these aspects of the individual overlap. Achievement-ascription: This dimension is about how status and power are determined in a society. In an ascription society, status is based on who a person is, whereas in an achievement society, status is based on what a person does.

Acculturation

The psychological and behavioral changes that occur in people because of contact with different cultures.

Institutions

The structures and activities that provide stability to a society; they consist of the family, education, economics, religious, and political systems.

More Details on Culture

This includes the ways of categorizing social stimuli, associations, beliefs, attitudes, roles, and values from which individuals in a society can draw.

Tightness vs Looseness Culture

Tightness culture is homogeneous cultures that often have high population density. Ex. Japan Loose culture have multiple and sometimes conflicting norms about appropriate behavior. Ex. the United States

Time and Environment

Time: This dimension is about past versus future orientations, but also with the extent to which time is viewed as linear versus holistic and integrative with past and present together with future possibilities. Environment: This dimension refers to the extent to which individuals feel that they themselves are the primary influence on their lives. Alternatively, the environment is seen as more powerful than they, and people should strive to achieve harmony with it.