international management

NATIONAL PATTERNS OF CORPORATE CULTURE

*Photo attached* Trompenaars and his associates created a questionnaire designed to identify national patterns of corporate culture, results shown here.

negotiating for mutual benefit

• Separate the people from the problem. • Focus on interests rather than positions. • Generate a variety of options before settling on an agreement. • Insist the agreement be based on objective criteria. • Stand your ground.

organizational cultures

When examining dimensions of organizational culture, Trompenaars suggested the use of two continua-one distinguishes between equity and hierarchy; the other examines orientation to the person and the task. (Ch 6 slide #9 for photo)

Environmental Protection and Development

- Many poor, developing countries are more concerned with improving the quality of life for their citizens than about endangered species or air or water quality —the EKC (below) hypothesizes an inverted U-shape. The Paris Agreement with 194 signatories as of 2019, is a wide-ranging greenhouse gas agreement that aims to drastically reduce global emissions beginning in 2020. However, many countries continue to violate laws and/or jeopardize safety and environmental concerns in their operations.

outsourcing

contracting out to external organizations activities previously performed by the firm.

Managment

is the process of completing acitivites with and through other people.

Technological Environment and Global Shifts in Production

• Technological advancements connect the world and aid in the increased quality of products, information gathering, and R&D. • Hunger and poor health care are worldwide issues—biotechnology is working to raise the standards. • MNCs are trying to improve e-business operations in B2C transactions. • Developing economies are "leapfrogging" telecommunications technology. • In the future, technology has the potential to displace employees in all industries. With new technological advancement: • Business costs should decline. • Productivity should increase. • Prices should go down.

using the proper guidelines

• Team members must be selected for their task-related abilities and not solely based on ethnicity. • Team members must recognize and be prepared to deal with their differences. • The team leader must help the group to identify and define its overall goal. • Members must have equal power so that everyone can participate in the process. • It is important that all members have mutual respect foreach other. • Managers must give teams positive feedback on their process and output.

GLOBE Country Analysis

• The GLOBE analysis corresponds generally with those of Hofstede and Trompenaars, with some variations resulting from the variable definitions and methodology. • The GLOBE analysis is sometimes seen as complicated, but so are cultures and perceptions. • GLOBE provides a current, comprehensive overview of general stereotypes that can be further analyzed for greater insight.

culture and management

• The GLOBE project set out to answer many fundamental questions about cultural variables shaping leadership and organizational processes. • Are there leader behaviors, attributes, and organizational practices that are universally accepted and effective across cultures? • Are there leader behaviors, attributes, and organizational practices that are accepted and effective in only some cultures? • How do attributes of societal and organizational cultures affect the kinds of leader behaviors and organizational practices that are accepted and effective? • What is the effect of violating cultural norms relevant to leadership and organizational practices? • What is the relative standing of each of the cultures studied on each of the nine core dimensions of culture? • Can the universal and culture-specific aspects of leader behaviors, attributes, and organizational practices be explained in terms of an underlying theory that accounts for systematic differences across cultures?

integrating culture and management: The GLOBE Project

• The Global Leadership and Organizational Behavior Effectiveness (GLOBE) research program measures cultural differences. • GLOBE extends and integrates the previous analyses of cultural attributes and variables published by Hofstede and Trompenaars. • Phases one and two focused on middle management. • Phase three examined the interactions of culture and leadership in upper level management positions.

Technology in the Next Decade

• The Internet of Things • Blockchain technology. • AI and Machine learning. •Robotics paired with any of these.

interpretation of communications

• The effectiveness of communication in the international context often is determined by how closely the sender and receiver have the same meaning for the same message. • If their meanings are different, effective communication will not occur. - A U.S. firm wanted to increase production in their Japanese plant, so they began an individual incentive plan effective in the U.S. - The plan flopped in Japan as workers were accustomed to working in groups and being rewarded as a group.

Civil Society, NGOs, MNCs, and Ethical Balance

• The emergence of organized civil society and NGOs has dramatically altered the business environment globally and the role of MNCs within it. • Some now regard NGOs as a counterweight to business and global capitalism. • NGO criticism has been sharp in relation to the activities of MNCs. • Many NGOs recognize that MNCs can transfer "best practices" from their home to host countries' markets. • In some instances, MNCs and NGOs collaborate.

achieving communication effectiveness

A number of steps can be taken to improve communication effectiveness in the international arena. • One of the most important ways of improving effectiveness in the international context is to open up feedback systems. - Personal—face-to-face meetings, phone conversations, and e-mail. - Impersonal—reports, budgets, and plans. • Another way to make communication more effective in the international arena is through language training. • Another way is to provide cultural training. • To improve understanding, increase flexibility and cooperation.

the Culture Map: by Erin Meyer

the Culture map is made up of eight scales representing the management behaviors where cultural gaps are most common. 1. Communicating: • comparing cultures along the communicating scale by measuring the degree to which they are high or low context. - Low context cultures: good communication is precise, simple, explicit, and clear. Messages are understood at face value. Repetition is appreciated for purposed of clarification, as is putting messages in writing. - High context cultures: communication is sophisticated, nuance, and layered. Messages are often implied but not plainly stated. Less is put in writing, more is left open to interpretation, and understanding may depend on reading between the lines. 2. Evaluating: • All cultures believe that criticism should be given constructively, but the definition of "constructive" varies greatly. This scale measures a preference for frank versus diplomatic negative feedback. • Evaluating can often be confused with communicating, but many countries have different positions on the two scales. - For example, the French are high-context (implicit) communicators, yet they are more direct in their criticism. 3. Persuading: • The ways in which you persuade others and the kinds of arguments you find convincing are deeply rooted in your culture's philosophical, religious, and education assumptions and attitudes. • The traditional way to compare countries along this scale is to assess how they balance holistic and specific thought patterns. - Specific thinking: typically, a Western executive will break down an argument into a sequence of distinct components. - Holistic thinking: Asian managers tend to show how the component all fit together. • What is found most persuasive: - Principles- first Arguments: People from southern European and Germanic cultures tend to find deductive arguments most persuasive. (Referred to as principles- first arguments). - Applications-first Logic: American and British manager are more likely to be influence by inductive logic. 4. Leading: • The scale measures the degree of respect and deference show to authority figures, and places countries on a spectrum from egalitarian to hierarchical. • The Leading scale is based partly on the concept of power distance, first re-searched by the Dutch social psychologist Geert Hofstede, who conducted 100,000 to management surveys at IBM in the 1970s. • It also draws on the work of Wharton School professor Robert House and his colleagues in their GLOBE (global leadership and organizational behavior effectiveness) study of 62 societies. 5. Deciding: • This scale, based on my own work, measures the degree to which a culture is consensus-minded. • We often assume that the most egalitarian cultures will also be the most democratic, while the most hierarchical ones will allow the boss to make unilateral decisions. This isn't always the case. • Germans are more hierarchical than Americans, but more likely than their U.S. colleagues to build group agreement before making decisions. • The Japanese are both strongly hierarchical and strongly consensus minded. 6. Trusting: • Cognitive trust (from the head) can be contrasted with affective trust (from the heart). - Cognitive trust: In task-based cultures, trust is built cognitively through work. If we collaborate well, prove ourselves reliable, and respect one another's contributions, we come to feel mutual trust. - Affective Trust: In a relationship-based society, trust is a result of weaving a strong affective connection. If we spend time laughing and relaxing together, get to know one another on a personal level, and feel a mutual liking, then we establish trust. • Many people have researched this topic; Roy Chua and Michael Morris, for example, wrote a landmark paper on the different approaches to trust in the United States and China. I have drawn on this work in developing my metric. 7. Disagreeing: • Everyone believes that a little open disagreement is healthy, right? • The recent American business literature certainly confirms this viewpoint. But different cultures actually have very different ideas about how productive confrontation is for a team or an organization. • This scale measures tolerance for open disagreement and inclination to see it as either helpful or harmful to collegial relationships. This is her own work. 8. Scheduling: • All businesses follow agendas and timetables, but in some cultures, people strictly adhere to the schedule, whereas in others, they treat it as a suggestion. • This scale assesses how much value is placed on operating in a structured, linear fashion versus being flexible and reactive. It is based on the "monochronic" and "polychronic" distinction formalized by Edward Hall.

Group of Seven economies

Canada, United States, UK, France, Germany, Italy, Japan

cross-cultural difference and similarities

Cultures can be similar or quite different across countries—the challenge is to recognize and effectively manage the similarities and differences. • Parochialism is the tendency to view the world through one's own eyes and perspectives. • A temptation for international managers. • Simplification is the process of exhibiting the same orientation toward different cultural groups. • This orientation reflects an individual's culture. • Effective international managers understand the culture in which they do business. While there are cultural differences, also are similarities -not everything is totally different.

Emerging seven economies

Mexico, Brazil, Turkey, Russia, China, India, Indonesia

The four rules: my Erin Meyer

RULE 1: Don't Underestimate the Challenge. • Management styles stem from habits developed over a lifetime, which makes them hard to change. • example: In 2010 Heineken, the Dutch brewing company, purchased a big operation in Monterrey, Mexico, and a large number of Mexican employees are now based at its Amsterdam headquarters. A manager stated: - Dutch people are much different to lead than Mexican teams. - during a meeting, the Dutch team challenges, takes the meeting into different directions, and ignores the managers process altogether. - Manager is shocked by this: "where is the respect?" - the "Dutch way" is treating everyone as pure equals, so manager is trying to be patient but sometimes wants to remind them that he is the boss. - Leadership skills he built in Mexico would not transfer easily to the Netherlands. - To succeed, he must take a different approach: "I realized I was going to need to unlearn many of the techniques that had made me so successful in Mexico and develop others from the ground up," he said. RULE 2: Apply Multiple Perspectives • If you are leading a global team with, say, Brazilian, Korean, and Indian members, it isn't enough to recognize how your culture perceives each of the others. • You need to understand how the Koreans perceive the Indians, how the Indians perceive the Brazilians, and so on, and manage across the map. As you learn to look through multiple lenses, you may see that on some scales the Brazilians, for example, view the Indians in a very different way than the Koreans do. Example: Heineken - A manager from China who had recently moved to Monterrey assessed the Mexicans this way: "They really think everyone is equal. No matter your age, rank, or title, everyone gets a voice here. They want us to call them by their first name and disagree with them in public. For a Chinese person, this is not at all comfortable." His take on Mexican culture, of course, was nothing like Carlos's and actually sounded like Carlos's view of Dutch culture. - The point is that where a culture falls on a scale doesn't in itself mean anything. - What matters is the position of one country relative to another. On the Leading scale, Mexico falls somewhere between the Netherlands (one of the most egalitarian countries in the world) and China (strongly hierarchical), and the distances separating them led to these completely contradictory perceptions. RULE 3: Find the Positives in Other Approaches • When looking at how other cultures work, people tend to see the negative. - Steve, an Australian running the business unit of a textile company in China, admits that when he first arrived in the country, he was deeply critical of local leadership practices. - The prevailing view, he found, was that "the boss is always right, and even when the boss is very wrong, he is still right?" Having been raised to regard a fixed social hierarchy as an inhumane system, subverting individual freedom, he was uncomfortable in his new environment. Yet Steve gradually came to understand and respect the Chinese system of reciprocal obligation. "In the Confucian concept of hierarchy," he says, "it's important to think not just about the lower-level person's responsibility to follow, but also about the responsibility of the higher person to protect and care for those under him. And there is great beauty in giving a clear instruction and watching your competent and enthusiastic team willingly attack the project without pushing back? - Sometimes cultural diversity can cause inefficiency and confusion. But if the team leader clearly understands how people from varied backgrounds behave, he or she can turn differences into the team's greatest assets. As Steve explains, "Now that I run a Chinese-Australian operation, I think carefully about how to take advantage of the various styles on the team. Sometimes I really need a couple of experts on my staff to tear my ideas apart to ensure that we get the best solution. Sometimes we are under time pressure and indeed streamlined reactivity. My overriding goal is to have a complex enough understanding of the various strengths on the team so I can choose the best sub team for each task." RULE 4: Adjust, and Readjust, Your Position • More and more teams are made up of diverse and globally dispersed members. So as a leader, you'll frequently have to tweak or adapt your own style to better mesh with your working partners. It's not enough to shift to a new position on a single scale; you'll need to widen your comfort zone so that you can move more fluidly back and forth along all eight. Example: During his first year in Russia, Aaron invested significant time in watching how the most successful local leaders motivated their staff members. He learned step-by-step to be more of a director and less of a facilitator. "It worked," he said, "but when I returned to Israel, I was then accused of centralizing too much. Without realizing it, I had brought what I had developed in Russia back home." Gradually Aaron got better at adapting his behavior to the individuals and context at hand. - As Aaron, Carlos, and Steve all learned, to navigate cultural differences, you might need to go back to square one. Consider which leadership styles are most effective in disparate localities and with people of diverse nationalities. Check your knee-jerk tendencies-and learn to laugh at them. Then practice leading in a wide variety of ways to better motivate and mobilize groups who follow in different ways from the folks back home. WHETHER WE Work in Düsseldorf or Dubai, Brasília or Beijing, New York or New Delhi, we are all part of a global network. This is true in the office or at a meeting, and it is true virtually, when we connect via e-mail, videoconference, Skype, or phone. Today success depends on the ability to navigate the wild variations in the ways people from different societies think, lead, and get things done. By sidestepping common stereotypes and learning to decode the behavior of other cultures along all the scales, we can avoid giving (and taking!) offense and better capitalize on the strengths of increased diversity.

international corporation evolution

*Photo attached* The effect of multiculturalism and diversity will vary depending on the stage of the firm in its international evolution.

locations of international cross-cultural interaction

*Photo attached* international cultural diversity traditionally affects neither the domestic firm's organizational culture nor its relationship with its customers/clients.

Dimensions of corporate culture

*Photo attached* Motivation: - Activities: consistent, precise, accurate, refine and perfect - Outputs: pioneers, clear aims/objectives, innovation Relationship: - Job oriented: job demands come before individual needs - Person oriented: individual needs come before job needs. Identify: - corporate: identify and uphold company expectations - professional: pursue professional aims and ideals. Communication: - open: full, free exchange of information and opinion. -closed: information and opinion monitored and/or controlled. Control: - tight: comply to clear, definite systems and/or procedures. - loose: adapt to the needs of the situation Conduct: - conventional: puts the employing organizational first. - pragmatic: puts the customers first.

group effectiveness and culture

*Photo attached* Multi-culturally diverse teams have a great deal of potential, depending on how they are managed.

GLOBE analysis: comparing values in China, the U.S., and Argentina

Examination of the GLOBE project has resulted in a breakdown of how managers behave and how different cultures can yield managers with similar perspectives in some realms and diverge in other sectors.

the nature of culture

- Culture is the acquired knowledge that people use to interpret experience and generate social behavior. • Learned: Culture is acquired by learning and experience. • Shared: People share culture; it is not specific to single individuals. • Transgenerational: Passed down from one generation to the next. • Symbolic: Culture is based on the human capacity to symbolize. • Patterned: Culture is integrated; change in one part, changes another. • Adaptive: Culture is based on the human capacity to change or adapt.

potential problems associated with diversity.

- Perceptual problems -Inaccurate biases -Inaccurate communication -Miscommunication -Misinterpretations -Different perceptions of time -Attitudinal problems • Diversity may cause a lack of cohesion, resulting in idleness, unproductive work, and the inability to be efficient or effective. • These problems are rooted in people's attitudes—such as mistrust. • Another potential problem is perceptual—when culturally diverse groups come together, they often bring preconceived stereotypes with them. • A related problem is inaccurate biases. • Still another potential problem with diverse groups is miscommunication or inaccurate communication, which can occur for a number of reasons. • Misunderstandings can be caused by a speaker using words that are not clear to other members. • Another contribution to miscommunication may be the way in which situations are interpreted. • Diversity also may lead to communication problems due to perceptions of time.

Europeans perception of the cultural dimensions of the U.S. operations (A) and European Operations of the same MNC (B)

- different cultures often exist among subsidiaries of the same MNC - such differences can reduce the ability of units to work well together (PowerPoint CH 6 slide 6)

Changing global demographics

- the global working-age population declined - global life expectancy increased - global fertility rate decreased - the most dramatic impact will be seen in the developed nations - health care spending increases, demand for goods declines

advantages of diversity

-Enhances creativity -Leads to better decisions -Generates more effective/productive results -Prevents groupthink -Can facilitate highly effective teams under right conditions • Growing evidence shows diverse groups enhance creativity, lead to better decisions, and result in more effective and productive performance. • Group members come from a variety of cultures and are able to create a greater number of unique (creative) solutions and recommendations. • A second major benefit is that culturally diverse groups can preventgroupthink. - Multicultural diverse groups often avoid this problem asmembers do not think similarly or feel pressure to conform. • Diversity in the workplace enhances more than just internal operations, it enhances relationships to customers as well. - If the customer base is composed of many cultures, the company may want to have representatives from corresponding nationalities.

communication barriers: culture

A significant number of native speakers in the U.S. might deviate from the standard business communication practices of other cultures. Even in English-speaking countries, there are different approaches to writing letters. When compared to Asians, many American writers are far more blunt and direct. Culture affects communication through values and misinterpretation. • In Middle Eastern countries, people do not relate to and communicate with each other in a loose, general way as do people in the U.S. - Relationships are intense and binding and class and status matter. • Another cultural value is the way that people use time. • In the U.S., people believe time is an asset and is not to be wasted. • An idea with limited meaning in some other cultures. Cultural differences can cause misinterpretations both in how others see expatriate managers and in how the latter see themselves. - The informal approach used in the U.S. is not used everywhere. - Many Americans also have difficulty interpreting the effect of national values on work behavior.

managing culture in Brazil

Brazil is a Latin American country but highlighted as some characteristics make it markedly different compared to other Latin American countries. • Brazilian businesspeople tend to have a relaxed work ethic. • Respect inherited wealth and roots over entrepreneurial opportunities. • View time in a very relaxed manner, punctuality is not a strong suit. • People are good-natured and avoid confrontation yet are risk seekers. • In Brazil, physical contact is acceptable as a form of communication. - They stand very close in conversation and touch the person's back, arm, or elbow—face-to-face interaction is preferred. • Appearance is important, it reflects you and your company. • Patience is key, but don't let the slow atmosphere fool you—be prepared.

managing culture in Russia

By following certain guidelines, MNCs can begin to tap the potential opportunities in Russia. • Build personal relationships and hammer out contracts later. • Use local consultants - expatriates may not be up to date, and often not trusted by the local businesspeople. • Consider business ethics - behavior in Europe and the U.S. is not always the same as in Russia. • Be careful about compromising or settling things too quickly. - Russians today tend to be suspicious of anything conceded easily. • Fix and reinforce the final agreements with a nice dinner and an invitation to visit your country and see your facilities.

CHAPTER 7: the role of culture: cross-cultural communication and negotiation the overall communication process

Communication is the process of transferring meaningsfrom sender to receiver. • There are a great many problems in the international arena that can result in the failure to transfer meanings correctly. • In addition, the means and modes of communication have changed dramatically in recent decades. - On the plus side, we have more opportunities to communicate rapidly, and enrich the content with photos, videos, and links. - On the other hand, there is some concern these devices make our communication less meaningful and personal.

political systems

Democracy: • the government is controlled by the citizens. • Directly or through elections. • Cannot exist without at least a two-party system. • They believe every citizen should be involved indecision-making processes. • Individual freedoms are secured. Totalitarianism • one party controls political and human life. • Power is often maintained by suppression. • The most common form is communism. • Some parties govern based on religious principles • "Right-wing" allows for some economic (but not political) freedoms.

managing culture in China

Despite China's global presence, many MNCs still find that doing business in China can be a long, grueling process. • A key criterion for doing business in China is technical competence. • The Chinese tend to value punctuality, so arrive on time. • Keep in mind that patience is critically important. • Another important dimension of Chinese culture is guanxi, which means "good connections," but resembles nepotism. • The Chinese, as a collective society, pride themselves on being members of a group. • In negotiations, reciprocity is important. • The transitioning economy has caused a shift in business culture, affecting professionals' private lives.

Eiffel Tower Culture

Eiffel tower culture is characterized by strong emphasis on hierarchy and orientation to the task. • Well defined jobs, employees know the task, and everything is coordinated from the top. • The top position could be replaced with no effect on the work or on the organization. • Relationships are specific, status lies in the job. • The culture operates like a formal hierarchy—impersonal and efficient. • Commonly found in Denmark, Germany, and the Netherlands. • U.S expatriate managers often have difficulty initiating change in this culture.

Family Culture

Family Culture is characterized by a strong emphasis on hierarchy and orientation to the person. • Leader is regarded as a caring parent. • Leaders are respected and looked to for guidance and approval. • Management assumes a paternal relationship. • It is difficult for outsiders to become members. • When done well, it can catalyze and multiply the energies of the personnel. • When done poorly, ineffective leaders drain employee's energies and loyalties. • Common in Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore. • This type of culture is foreign to most U.S. managers.

strategic predispositions

Four distinct predispositions have been identified: • Ethnocentric predisposition—the values and interests of the parent company guide strategic decisions. • Polycentric predisposition—strategic decisions are tailored to suit the cultures of the countries where the MNC operates. • Regiocentric predisposition—the firm tries to blend its own interests with those of its subsidiaries on a regional basis. • Geocentric predisposition—the company tries to integrate a global systems approach to decision making. - Successful MNCs use a mix of these predispositions based on the demands of the current environment.

Guided Missle Culture

Guided missile culture is characterized by strong emphasis on equality in the workplace and orientation to the task. • Work-oriented, in teams or project groups who do whatever it takes to get the job done. • The best form of synthesis must be used in the course of working on the project. • All team members are equal, and all teams treat each other with respect. • Change comes quickly—teams are reconfigured and assigned new objectives. • This fits well with the national cultures of the U.S. and the U.K. • Motivation tends to be more intrinsic than just money and benefits.

managing culture in India

In recent years, India has begun to attract the attention of large MNCs. • Shaking hands with male business associates is almost always an acceptable practice. - A universal greeting, "Namaste," means "greetings to you." • For Western businesspeople in India, light weight and light-colored business casual attire or, in formal attire if called for, is the norm. - Indian businesspeople will wear local dress and foreign businesspeople are not expected to dress like locals. • Remember that Indians are very tolerant of outsiders and understand that many are unfamiliar with local customs and procedures. - There is no need for phony attempts to conform to Indian culture.

Incubator Culture

Incubator culture is characterized by strong emphasis one equality and orientation to the person. • They believe organizations are secondary to the fulfillment of the individuals within them. • Organizations are incubators for members' self-fulfillment—so their culture has little structure. • Participants thrive on an intense, emotional commitment to the nature of the work. • Change is fast and spontaneous. • Leadership is achieved, not gained by position. • Found often among start-up firms in Silicon Valley or Silicon Glen. • Motivation remains highly intrinsic and intense.

managing culture in Arab Countries

Intense media attention to the Syrian Civil War, the Iraq War, terrorist actions, and continuing conflicts in the Middle East have revealed to everyone that Arab cultures are distinctly different from Anglo cultures. • Arabs view time differently with no concern for missed meetings as they believe they have no control over time in the first place. • Arab culture generally holds that destiny depends more on the will of a supreme being than on the behavior of individuals. - Individual action is of little consequence. • Social status is largely determined by family position and connections, not necessarily by accomplishments. • Initial meetings typically are used to get to know the other party. • Arab businesspeople tend to attach importance to status and rank. - Pay deference to the senior person first.

managing culture in France

Many in the United States believe that it is more difficult to get along with the French than with other Europeans. • French culture is markedly different from that in the United States. - In France, social class and status are very important. - Class stereotypes exist, and most do not change their social status. • In the workplace, many French people are not motivated by competition or the desire to emulate fellow workers. - No overtime, long vacations, yet known for high productivity. • Most French organizations are highly centralized with rigid structures. • In French companies, top managers have far more authority than their U.S. counterparts, and they are less accountable for their actions.

understanding the conditions for effectiveness

Multicultural teams are most effective when they face tasks requiring innovativeness, and far less effective when assigned to routine tasks. • For greatest effectiveness, focus attention by the stage of team development. • In the entry stage, the focus should be on building trust and developing team cohesion. • In the work stage, attentions may be directed more toward describing and analyzing the problem or task that has been assigned. • In the action stage, focus shifts to decision making and implementing and often requires consensus building among the members.

Established Economies

North America: • North America constitutes one of the world's four largest trading blocs. • The combined purchasing power is more than $24 trillion. • Maquiladora is a factory, that imports materials and equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export. the European Union (EU): • The ultimate objective of the EU is to eliminate all trade barriers among member countries. • The future challenge is toa absorb the former communist-bloc countries. • The U.K. is scheduled to leave the EU in 2020. Japan: • In the 70s and 80s, Japan's economic success was unprecedented. • Due to Ministry of International Trade and Industry (MITI). • And the use of keiretsus - large, vertically integrated corporations.

managing cross cultural negotiations

Negotiation is the process of bargaining with one or more parties for the purpose of arriving at a solution acceptable to all. • Distributive negotiations—two parties with opposing goals compete over a set value. • Both sides are trying to get the best deal, but again for one side is a loss for the other. • Integrative negotiations involves cooperation to integrate interests, create value, and invest in the agreement. • This is the most useful tactic when dealing with business negotiation. • The two types of negotiation differ on five characteristics: • Objective • Motivation • Interests • Relationships • Outcome

communication barriers: perceptual

Perception is a person's view of reality. In international incidents, perception and misperceptions are critical. • A failure to understand home-country perceptions can result in disastrous advertising programs. • In Taiwan, "Come alive with Pepsi" frightened consumers as it literally meant "Pepsi will bring your ancestors back from the grave." • Managers must be careful when translating messages. • Common phrases in one country will not mean the same in others. • Perception influences how individuals "see" others. Most Americans see themselves as friendly, outgoing, and kind, and believe others see them in this way. Many are unaware of the negative impressions they give to others.

The Nature of Organizational Culture (Beginning of CH 6)

The Nature of Organizational Culture Organizational culture is the shared values and beliefs that enable members to understand their roles in and the norms of the organization. • Characteristics of an organization's culture. • Observed behavioral regularities. • Norms. • Dominant values are shared. • The MNC sets forth a philosophy about the treatment of employees and customers. • Rules dictate dos and don'ts. • Organizational climate is important. • The major problem is if an MNC's organizational culture in one country's facility differs sharply from organizational cultures in other country's facilities. • In some cases, companies have deliberately maintained two different business cultures because they do not want one culture influencing the other.

Sustainability

The term sustainability is no longer tied to fiscal results. • Companies realize loss of resources will eventually halt production. • Increased pressures from NGOs also play a part. • Corporations are now looking to be leaders in the "green" movement. • Walmart and GE each have their own "green" initiatives.

legal and regulatory environment

There are four foundations on which laws are based around the world. • Islamic Law: derived from interpretation of the Qur'an and the teachings of the Prophet Muhammad. - Found in Islamic countries in the Middle East and Central Asia. • Socialist Law: comes from the Marxist socialist system and continues to influence regulations in former communist countries. • Common Law: comes from English law and the foundation of the legal system in the U.S., Canada, England, Australia, New Zealand, and other nations. • Civil or code law: derived from Roman law- Found in non-Islamic and non-socialist countries such as France, some countries in Latin America, and Louisiana in the U.S.

Cultural interaction

This analysis is relevant to MNC alliances, showing that though an alliance exists, the partners bring different organizational cultures with them. French Negotiators: - looking for a meeting of minds - intellectual competence is important - persuasion through carefully prepared and skilled rhetoric is employed. - strong emphasis is given to a logical presentation of one's position couples with well-reasoned, detailed solutions. - a contract is a well-reasoned transaction. - trust emerges slowly, based perceived status and intellect. Spanish Negotiators: - Looking for a meeting or people. - Social competence is very important. - Persuasion through emotional appeal is employed. - Socialization precedes negotiations, which are characterized by an exchange of ideas and principles. - A contract is a long-lasting relationship. - Trust is developed on the basis of many warm contracts and transactions.

multinational corporation (MNC)

a firm that has operations in more than one country, international sales, and a mix of nationalities among managers and owners * Globalization, coupled with the rise of emerging market MNCs, has brought prosperity to many previously underdeveloped parts of the world.

stereotyping from the cultural extremes

how Americans see the French: - arrogant - flamboyant - hierarchical - emotional How the French see the Americans: - naive - aggressive - unprincipled - workaholic

Global Economic Systems

market economy: private enterprise owns property and monitors the production and distribution of goods and services while the state supports competition and efficient practices. command economy: the government has explicit control over the price and supply of a good or service. mixed economy: is a combination of a market and a command economy.

international management

process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural contexts.

personal space categories for those in the United States

public distance: 8-10 feet social distance: 4 to 8 feet personal distance: 18 inches to 4 feet intimate distance: 18 inches

North American Free Trade Agreement (NAFTA)

removed most trade and investment barriers between the United States, Canada, and Mexico. - USMCA will replace NAFTA following ratification by each country. - other bilateral agreements including

World Trade Organization (WTO)

the global organizations that oversee rules and regulations for international trade and investment

Globalization

the social, political, economic, cultural, and technological integration among countries around the world. critics disagree, noting that offshoring of jobs does not inherently create greater opportunities at home. Anti-globalization activists say the poorest countries relax standards for first world investment. * Globalization, coupled with the rise of emerging market MNCs, has brought prosperity to many previously underdeveloped parts of the world.

offshoring

when some company activities take place at offshore locations instead of in their countries of origin.

the shifting balance of economic power in the global economy

• "BRIC" economies are predicted to grow by 2025.• By 2050, the GDP of the E7 is predicted to be 50 percent higher than that of the G7. • The N-11 may constitute the next wave of emerging markets growth. • The MIST countries are particularly attractive. • African countries could be the next wave of dynamic emerging markets. • Global trade and investment continue to grow at a healthy rate, outpacing domestic growth in most countries. • Foreign direct investment (FDI) is the term used to indicate the amount invested in property, plant, and equipment in another country. • As nations become more affluent, they begin looking for countries with economic growth potential where they can invest.

Ideologies

• Adopters of individualism adhere to the philosophy that people should be free to pursue economic and political endeavors without constraint. - Government interest should not solely influence individual behavior. Collectivism: - views the needs and goals of society at large as more important than individual desires. - Societal goals and the decision of how to keep people focused on them differ greatly among national cultures. Socialism: - is a moderate form of collectivism in which there is government ownership of institutions, and profit is not the ultimate goal. - Social democracy refers to a socialist movement that achieved its goals through nonviolent revolution.

Figure 4-1: A model of culture

• Another way of depicting cultural diversity is through visually separating its components. outer circle: the explicit artifacts and products of society middle circle: the norms and values that guide the society. inner circle" the implicit, basic assumptions that guide people's behavior.

The Strategy for Managing Across Cultures

• As MNCs become more transnational, their strategies must address the cultural similarities and differences in their varied markets. • Renault made strategic decisions that changed how it did business. - Renault acquired interest in established foreign automakers. - It integrated its sales organizations with those of Nissan in Europe, creating a well-integrated, efficient sales force. - Renault started producing Nissan models in its Brazilian plant to expand its South American offerings by using current facilities. - They strategically targeted developing international markets to provide the most potential for future growth. • In the first half of 2018, sales grew by nearly 10 percent, record-high growth for the company.

cultural differences affecting negotiations

• Avoid identifying the other's home culture too quickly. • Beware of the Western bias toward "doing." • Resist formulating simple, consistent, stable images. • Do not assume all aspects of the culture are equally significant. • Norms for interactions involving outsiders may differ from those for between compatriots. • Do not overestimate familiarity with your counterpart's culture. • Culture often plays a role in negotiation effectiveness. - U.S. negotiator's style often differs from negotiators in other countries. - Arabs use emotional appeal in their negotiation style. • Before beginning, review the negotiating style of the other parties and formulate tactics. • Simply being familiar with the culture is still falling short of being aptly informed.

verbal communication styles

• Context surrounds and helps convey the message. • High-context societies have coded and implicit messages. • Low-context societies have explicit messages. • In indirect verbal styles, messages are implicit and indirect. • In direct verbal styles, messages are explicit and direct. When the verbal style is elaborate, talk is of high quality. • When verbal style is exacting, there is a moderate amount of talk • When verbal style is succinct, there is a low amount of talk. • A contextual style focuses on the speaker and role relationships. • A personal style focuses on the speaker and personal relationships. • The affective style is process-oriented and receiver-focused. • The instrumental style is goal-oriented and sender-focused.

Corporate Governance

• Corporate governance is the system by which business corporations are directed and controlled. • It provides the structure through which objectives are set and the means of attaining those objectives and monitoring performance. • Governance rules and regulations differ among countries and regions. - The U.K. and the U.S. systems are termed "outsider" systems because of dispersed ownership of corporate equity among a large number of outside investors—each with limited direct control. - In an insider system—many European countries—ownership tends to be much more concentrated, with shares often being owned by holding companies, families, or banks.

Corporate Social Responsibility and Sustainability

• Corporate social responsibility (CSR) is the actions of a firm to benefit society beyond legal requirements and the direct interests of the firm. • Pressure for greater CSR emanates from a range of stakeholders, including nongovernmental organizations (NGOs) .• The table below depicts the public's trust in each of the four institutions.

Developing Economies on the Verge: South America

• Countries in South America have had difficult economic problems, accumulated heavy foreign debt and experienced severe inflation. • Brazil has attracted considerable FDI but has faced setbacks though longer-term prospects are still positive. • Chile's market-based economy is one of the best and most stable performers in Latin America. • Argentina has one of the strongest

Emerging/Developing countries: other Asian markets

• Countries of the ASEAN bloc are fueling growth and development. • In South Korea, the major conglomerates, called chaebols, include Samsung, Hyundai, and the LG Group. • Hong Kong has been the headquarters for some of the most successful multinational operations is Asia. • Singapore has emerged as an urban planner's ideal model and the leader and financial center of Southeast Asia. • Taiwan's economy, boosted by increasing foreign trade, continues to grow steadily. • Thailand, Malaysia, Indonesia, and now Vietnam have developed economically with a relatively large population base and inexpensive labor despite the lack of considerable natural resources.

values in transition

• Do values change over time? • Personal value systems are relatively stable and do not change rapidly. • However, managerial values are changing. • For Japanese managers working in Japanese firms in the U.S. - Lifetime employment is not as accepted. - Obedience and conformity is not as important and you can question a superior. - They support team values but remain individuals. • Individualism in Japan is on the rise, indicating that Japanese values are changing. • The culture is starting to embrace what is being called the "era of personal responsibility."

communication flows

• Downward communication isthe transmission of informationfrom manager to subordinate. • The primary purpose is to convey orders and information. • In the international context, this poses special challenges. - In Asian countries, downward communication is less direct than in the U.S. - In some European countries, downward communication is direct and extends beyond work .• Upward communication is the transfer of information from subordinate to superior. • The primary purpose is to provide feedback, ask questions, or obtain assistance. • The U.S. now seeks to increase upward communication. • In other countries, it has long been a fact of life. • Employees want upward communication. • It does not always occur due to communication barriers.

Ethics and Social Responsibility

• Ethical scandals and questionable business practices have received considerable media attention. • Ethics is the study of morality and standards of conduct. • Corporate social responsibility (CSR) is closely related to ethics, but it involves taking action.

Developing Economies: Africa

• Even with considerable natural resources, many African nations remain very poor and underdeveloped. • International trade is only beginning as a major source of income. • One major problem is the overwhelming diversity of 3,000 tribes speaking 1,000 languages and dialects. • Political instability is pervasive and generates substantial risks for foreign investors. • Sub-Saharan Africa has had a number of severe problems - tribal wars, AIDS, malaria, and Ebola - resulting in serious economic setbacks. • Africa's economic growth and dynamism have rapidly accelerated in the past two decades.

Corruption

• Government corruption is a pervasive element in the international business environment. • The Foreign Corrupt Practices Act (FCPA)makes it illegal for U.S. companies/managers to attempt to influence foreign officials through personal payments or political contributions. • The Transparent Agents Against Contracting Entities (TRACE) standard was developed after a review of the practices of 34 companies—applies to business intermediaries.

International Assistance

• Governments and corporations are increasingly collaborating to provide assistance to communities around the world through global partnerships. • Fighting malnutrition, controlling malaria, and immunizing children are identified as the best investments. • At the United Nations, world leaders placed development at the heart of the global agenda by adopting the Sustainable Development Goals. - The 17 goals are an ambitious agenda to improve the human condition by 2030. • The Global Fund to Fight AIDS, Tuberculosis, and Malaria, has committed over US$38 billion in grants to over 151countries.

Globalization and Ethical Obligations of MNCs

• How much responsibility do MNCs have in changing these practices? • One remedy could be to instill a business code of ethics that extends to all countries or to create contracts for situations that may arise. • Another response to globalization has been to transfer a large percentage of highly specialized jobs of all types to foreign locations. - Especially true in India. • Individuals moved offshore remain part of a corporate citizenship. - The opposite occurs when the firm moves to another country and seeks to employ local citizens.

Human Rights

• Human rights issues present challenges for MNCs as there is currently no universally adopted standard of what constitutes acceptable behavior. • China's human rights record continues to be a challenge for MNCs. • Women's rights and gender equity can be considered a subset of human rights.

communication barriers: language

• If managers do not understand the language that is used at headquarters, they likely will make a wide assortment of errors. • Language training continues to lag in the U.S. • Increasingly, European countries have multilingual young people. • The ability to speak the language used at headquarters is often not enough to ensure that the personnel are capable of doing the work. • Many MNCs place importance on an applicant's ability to speak English—not considering if they can interact with others. • Culture is routinely not taken into account during interviews. • Nonnative speakers may know the language, but not be fluent. • Poor writing is proving to be a greater barrier than poor talking. • Advancements in technology may eliminate many language barriers.

Basic Principles of International Law

• International law is less coherent than domestic law.• Principle of sovereignty—governments can rule as they see fit. • There are three types of jurisdictional principles. - Nationality principle, territoriality principle, protective principle. • Doctrine of comity—mutual respect for the laws, institutions, and governments of other countries in jurisdiction over their own citizens. • Act of state doctrine—acts of other governments are considered valid by U.S. courts, even if such acts are illegal/inappropriate in the U.S. • Countries may refuse admission of foreign citizens and impose restrictions on their conduct, travel, lodgings, and business they may do. • A forum for hearing and settling disputes is a principle of U.S. justice as

Developing Economies: Middle East and Central Asia

• Israel, the Arab countries, Iran, Turkey, and the Central Asian countries of the former Soviet Union are a special group of emerging countries. • Because of their oil, some of these countries are considered to be economically rich. • Recently, this region has been in the world news because of the wars and terrorism concerns. • Students of international management should have a working knowledge of these countries 'customs, culture, and management practices.

negotiation tactics

• Location: - If the matter is very important, most businesses will choose a neutral site, which has benefits. • Time limits: - Time limits can be use tactically even when meeting at a neutral site. • Buyer-seller relations: - Americans believe in being objective and trading favors. - This is not the way negotiators in many other countries think.

Reconciling Ethical Differences across Cultures

• MNCs adhere to a code of ethical conduct while doing business around the world yet make adjustments to respond to local norms and values. • One approach suggests there exist implied social contracts that generally govern behavior around the world, some are universal. • These "hyper" norms include principles like respect for human life or abstention from cheating, lying, and violence.• This approach, called Integrative Social Contracts Theory (ISCT) • Provides a framework for gaps between the moral and ethical values of an MNC's home country and the country where it does business. • It does not provide precise guidance under specific conditions.

meeting the challenge

• Many MNCs are committed to a globalization imperative, a belief that one worldwide approach is key to both efficiency and effectiveness. Yet, these factors seem to call for unique strategies: • The diversity of worldwide industry standards. • A continual demand by local customers for differentiated products. • The importance of being an insider. • The difficulty of managing global organizations. • The need to allow subsidiaries to use their own abilities and talents and not be restrained by headquarters. MNCs find that regional strategies can be used effectively in capturing and maintaining worldwide market niches.

communication barriers: nonverbal communication

• Nonverbal communication transfers meaning through body language and physical space. • Kinesics is body movement and facial expression. • Communicating through eye contact/gaze is oculesics. • Communicating through bodily contact is known as haptics. • Proxemics—people use physical space to convey messages. • Intimate distance, personal distance, social distance, and public distance. • Chronemics refers to the Wayan which time is used in a culture. • In a monochronic time schedule, things are done in a linear fashion. • In a polychronic time schedule, people multitask and place higher value on involvement than on completion. • Chromatics is the use of color to communicate messages. • Such knowledge can help you avoid embarrassing situations.

using the GLOBE project to compare managerial differences

• One interesting development is the increasing frequency of executives from one part of the world assuming leadership roles in another. • in 2018, NTT Data Services named its first non-Japanese executive chairman of the board in the company's history. • At Nippon Sheet Glass, American Craig Naylor resigned suddenly in 2012 after just two years as CEO. • A study of multinational executives listed the following as key characteristics successful MNC managers must have. - Setting an example for junior employees. - Learning to thrive in unstable environments. - Learning about your business and the emerging markets environment. • Through formal classes, mentoring, and direct experience.

Response to Social and Organizational Obligations

• One response is the agreements and codes of conduct in which MNCs commit to maintain standards in their domestic and global operations. • The U.N. Global Compact. • The Global Reporting Initiative. • The social accountability "SA8000" standards. • The ISO 14000 environmental quality standards • Fair trade is an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability.

the negotiation process

• Planning starts with identifying objectives. • Next, get to know the people on the other side. • Then, each group states a position on the critical issues. • The success of the persuasion step depends on many things. • Finally, grant concessions and hammer out an agreement.

Labor, Employment, and Business Practices

• Political, economic, and cultural differences make it difficult to agree on universal employment practices. • Working conditions, expected work hours, and labor regulations also create challenges in deciding appropriate employment practices. • Child labor initially invokes negative associations and is considered an unethical employment practice. - The reality is that of the 152 million children ages 5-17 working globally in 2018—most worked to help support their families. • In early 2010, low wages paid by Chinese subcontractors made headlines after suicides by workers at factories run by Foxconn.

cultural dimensions (Hofstede)

• Power distance. • Uncertainty avoidance. • Individualism versus Collectivism. • Masculinity versus Femininity. • Time orientation—long-term or short-term. • Indulgent versus restraint. • Hofstede's research shows how countries can be described in terms of pairs of dimensions. • Power distance and individualism. • Uncertainty avoidance index and the power distance index. • Masculinity versus uncertainty avoidance.

emerging and developing countries--central/eastern europe:

• Russia's economy continues to emerge as poverty declines and the middle class expands. • Pervasive challenges make investors feel the risk is still too high. • In Hungary, state-owned hotels were privatized, and Western firms are entering joint ventures and MNCs are making direct investments. • Poland had a head start as they established the first noncommunist government in 1989, followed by radical economic reforms. • Although Russia, the Czech Republic, Hungary, and Poland receive the most media coverage, others are struggling. • The key is to maintain the social order, establish law, rebuild infrastructure, and get factories and other firms up and running. • Foreign investment must be forthcoming for these countries to join the global economy.

Similarities across cultures

• Some similarities across cultures have been uncovered by researchers. • A study done in the largest textile factory in Russia found the following. - Communication activity was a significant predictor of effective performance in both Russia and the U.S. • Another study at the same Russian factory tested OB modification. - What worked in the U.S., produced positive results in the Russian factory. • Similarities from a study comparing Korean and U.S. workers. - As organizational size increased, commitment declined. - As structure became more employee-focused, commitment increased. - Positive perceptions of organizational climate increased commitment.

Cultural Diversity

• Specific examples where the culture of a society can directly affects management approaches. - Centralized vs. decentralized decision making. - Safety vs. risk. - Individual vs. group rewards. - Informal vs. formal procedures. - High vs. low organizational loyalty. - Cooperation vs. competition. - Short-term vs. long-term horizon. - Stability vs. innovation. • Culture can affect technology transfer, managerial attitudes, managerial ideology, and even business-government relations.

Examples of Legal and Regulatory Issues

• Specific laws and situations directly impact international business. • Financial services regulations. - The integrated nature of financial markets means a regulatory failure in one jurisdiction can impact other jurisdictions. • The Foreign Corrupt Practices Act (FCPA)—it is illegal to influence foreign officials through personal payment or political contributions. • Restrictive foreign bureaucracies are a big problem facing MNCs. • Privatization of state-owned enterprises opens opportunities for MNCs. • Countries use their legal and regulatory policies on international trade to affect the international management environment.

globalization vs National responsivness

• The globalization versus national responsiveness challenge is even more acute when marketing products that vary greatly in consumer use. • The way in which the marketing message is delivered is important. • Sometimes, the product and the message are similar worldwide. • The need to adjust global strategies for regional markets presents three major challenges for most MNCs. • The MNC must stay abreast of local market conditions and sidestep the temptation to assume that all markets are basically the same. • They must know the strengths and weaknesses of subsidiaries so it can provide them with assistance in addressing local demands. • The multinational must give the subsidiary more autonomy so that it can respond to changes in local demands.

Emerging/Developing countries: China

• The growth of China's GDP has been slowing considerably. • China also remains a major risk for investors. • Many MNCs find it very difficult to do business in and with China. • Intellectual property concerns and national policies favoring domestic companies make China a complicated and high-risk venture. • Trade relations between China and developed countries and regions, such as the United States and the EU, remain tense. • Trump implemented tariffs on certain Chinese imports and Chinaretaliated by enacting tariffs on a variety of U.S. goods. • Another contentious issue is the value of its currency, which some argue is kept artificially low, giving China an unfair advantage. • China's policy toward foreign investors continues to be fluid and sometimes unpredictable.

Ethics Theories and Philosophy

• There are a range of ethical theories and approaches around the world, many emanating from religious and cultural traditions. - Kantian—individuals (and organizations) have responsibilities based on moral principles that go beyond self-interest. - Aristotelian virtue ethics focus on core, individual behaviors and actions and how they express and form individual character. - Utilitarianism favors the greatest good for the greatest number of people under a given set of constraints. - Eastern philosophy tends to view the individual as part of, rather than separate from, nature. In international management, executives may rely on one or more of these perspectives when making decisions involving ethics or morality.

interaction between national and organization culture

• There is a widely held belief that organizational culture tends to moderate or erase the impact of national culture. - In fact, evidence is accumulating that just the opposite maybe true. • Hofstede's research found that the national cultural values of employees have a significant impact on their organizational performance. - And that the cultural values employees bring to the workplace are not easily changed by the organization. • Hofstede provided the early database of a set of proprietary cultural-analysis techniques and programs known as DOCSA. - Diagnosing Organizational Culture for Strategic Application.

GLOBE's cultural dimensions

• Uncertainty avoidance by relying on norms, rituals, and practices. • Power distance is how power is shared. • Collectivism I: Societal collectivism—encourage/reward collective distribution of resources. • Collectivism II: In-group collectivism—how they express pride, loyalty, and cohesiveness. • Gender egalitarianism—how they minimize gender role differences. • Assertiveness, confrontation, and aggression in social relationships. • Future orientation—planning, investing, and delaying gratification. • Performance orientation—how they encourage/reward group performance improvement. • Humane orientation—encourage or reward fair, altruistic, friendly, generous, and caring behavior toward others.

many differences across cultures

• Understanding the HRM strategies before managing in the industry aids effective performance. • HRM differences can be found in wages, pay equity, and PTO. • It is possible to link cultural clusters and compensation strategies. • In Pacific Rim countries, use group-based incentive plans. • In high-masculinity cultures, pay high salaries to senior managers. • In EU nations, compensation strategies should be similar. • In the U.K., Ireland, and the U.S., managers value individualism. • Motivate—earnings, recognition, advancement, and challenge. • Conventional wisdom about HRM practices in certain countries are no longer valid. • Traditionally, Japanese employees did not leave their jobs for other firms. • Job-hopping among Japanese employees is becoming increasingly common.

Cultural Dimensions (Trompernaars)

• Universalism vs. particularism. • Individualism vs. communitarianism. • Neutral culture vs. emotional culture. • Specific culture vs. diffuse culture. • Achievement culture vs. ascription culture. • Trompenaars also looked at attitudes toward both time and the environment. • Time can be viewed as sequential, synchronous, future-oriented, or past- and present-oriented. • Environment is the degree people believe they can control outcomes (inner-directed) or let things take their own course (outer-directed).

bargaining behaviors

• Use of extreme behaviors. -- Research shows that extreme positions tend to produce better results. • Promises, threats, and other behaviors. --These behaviors are often influenced by culture. • Nonverbal behaviors. -- Common during negotiations—silent periods, facial gazing, touching, and conversational overlaps. • The important thing to remember is that in international negotiations, people use a wide variety of tactics. -- The other side must be prepared to counter or find a way of dealing with them.

values in culture

• Values are basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant. • Learned from the culture in which the individual is reared, and they help direct the person's behavior.

organizational cultures in MNCs

• When one company merges or acquires another: - The two must establish the purpose, goal, and focus of the merger. - Then develop mechanisms to identify important structures and roles. - Then determine who has authority over necessary resources. - Also identify all parties' expectations and facilitate communication. • Three aspects important in determining MNC organizational culture: - The general relationship between employee and organization. - The hierarchical authority defining manager and subordinateroles. - Employees views about the MNC'S purpose, destiny, goals, and their place in them.

Emerging/Developing Economies: India

• With a population of about 1.3 billion and growing, India has traditionally had more than its share of political and economic problems. • For a number of reasons, India is attractive to multinationals, especially to U.S. and British firms as many Indian people speak English, are well educated, and known for advanced IT expertise. • India's GDP growth rate is among the highest in the world.

Domestic and Group Multiculturalism

• You don't need to do business in another country to encounter multiculturalism. • Culturally distinct population scan be found within organizations. • Managers must consider employees on an individual basis. • Managers need to compile techniques that convey a common message. • Homogenous group—members have similar backgrounds and generally perceive, interpret, and evaluate events in similar ways. • Token group—all members but one have the same background. • Bicultural group—two or more members represent each of two distinct cultures. • Multicultural group—there are individuals from three or more different ethnic backgrounds