Expectations of Managers Across Cultures

1
Expectations of Managers Across Cultures

• It is important for managers to have at hand
  precise answers to most of the questions their
  subordinates may raise about their work.
• Percentage agreeing with the above
• Sweden 10
• Germany 46
• Spain Japan 78
• USA 18

2
Average vacation days for employees with one year
of service

• USA 10 days
• Spain 22 days
• Germany 18
• Sweden 30
• Finland 20
• Japan10

3
Parental Leave

• Sweden 90 pay for 12 months
• Denmark, 90 pay for 28 weeks
• Germany, 14 weeks, 100 pay
• Ireland, 14 weeks, 70 pay
• Italy, 20 weeks, 80 pay
• USA, 12 weeks, unpaid (FMLA)

4
Culture defined

• The collective programming of the mind which
  distinguishes the members of one human group from
  anotherthe interactive aggregate of common
  characteristics that influence a human groups
  response to its environment. Hofstede
• Socially derived, taken-for-granted assumptions
  that shape behavior, or structure ones
  perception of the world

5
What are Americans like?

• Direct, dont talk around things.
• Competitive
• Independent and individualistic
• Questioners Ask a lot of questions
• Dislike silence
• Would rather talk about the weather than deal
  with silence
• Punctual

6
Why Study International Management?

• For managers who have to operate in an
  unfamiliar culture, training based on
  home-country theories is of very limited use and
  may even do more harm than good
• An American was sent to manage a bank in
  Venezuela. He asked the employees for their input
  and recommendations to solve a problem. How did
  the employees react?

7
Expatriates

• People from one national culture working in
  another for a fixed period of time
• U.S. expatriates (3 years is the average
  assignment)
• Average 3 year assignment can cost firms up to 1
  million per expat
• Moving expenses, education, expat premiums, cost
  of living differences, inflation, etc.

8
Why U.S. managers would accept an international
assignment

• Cross-cultural experience (52)
• Gain a greater understanding of another way of
  life
• Money (40)
• Higher salary, more fringe benefits
• Career Advancement (21)
• Increased opportunities exposure

9
Why U.S. managers would NOT accept an
international assignment

• Location
• Political unrest, dangerous
• Career
• High risk of job failure, isolation from home
  company, forgotten
• Family
• Dual-careers, spouse unwilling to move

10
Repatriation Issues

• Will I have a job at the same company when I
  return?
• 46 of U.S. firms do not guarantee a position at
  home upon completion of the assignment
• Mergers, downsizing, layoffs
• An international assignment may be a high-risk
  career strategy
• Why type of job will I have upon return?
• Less challenging, lower status, and less
  responsibility
• High rate of turnover for expats upon return
  (25 within a year)
• Consider the cost of an expatriate assignment
  (about 1 million) and the potential loss of part
  of this investment

11
Reasons for Expatriate Failure

• U.S. Expats (up to 45 failure rate)
• 1) Inability of spouse to adjust
• Career disruption
• Social needs
• Personal career identity
• 2) Managers inability to adjust
• 3) Other family reasons
• Children at school related adjustments
• Issues with family in the U.S. (elder care)

12
Expatriate Selection Issues

• Personality issues
• High tolerance for ambiguity
• High self-monitor
• Emotional stability
• Nonjudgmental, nonevaluative
• Flexibility willingness to try new ways
• Initiative

13
Expatriate Selection Issues (cont.)

• Family Issues
• Would your spouse be interrupting a career to
  accompany you? If yes, how might this affect your
  spouse and your relationship with each other?
• Are you prepared to have less contact with your
  extended family?
• ATTs self-assessment of cultural-adaptability

14
Hofstedes Study

• Study of IBM employees across the world
• National culture explained more of the
  differences in work-related values and attitudes
  than did
• Position within the organization
• Profession
• Age
• Gender
• Found four core dimensions of national culture

15
Hofstedes Dimensions of National Culture

• Individualism versus collectivism
• Individualism (USA, Australia)
• Emphasis on the individual make primary
  contributions to oneself
• Collectivism (Japan)
• Emphasis on the group make primary contributions
  to group goals and objectives
• Members are expected to look after other members
• Implications
• Organizational loyalty, teamwork, social loafing

16
Hofstedes Dimensions (cont.)

• Power distance
• measures the extent to which the less powerful
  members of an organization accept/expect an
  unequal distribution of power
• Large PD (Venezuela, Philippines)
• Wide differences in power are accepted and often
  preferred
• Titles hierarchy are very important
• Small PD (Denmark, Ireland)
• Power differences are played down
• Boss is not someone to fear
• Implications
• Organizational structure (pyramid vs. flat)
• Decision-making issues Participative vs.
  authoritarian, decentralized vs. centralized

17
Hofstedes Dimensions (cont.)

• Uncertainty Avoidance
• The extent to which people feel threatened by
  ambiguity uncertainty (risk) and therefore try
  to avoid such situations
• Implications
• Career stability (job security), formal rules
• High in uncertainty avoidance (Portugal, Greece)
• Concept of lifetime employment
• Formal rules help to reduce uncertainty
• Working hard is a way of reducing uncertainty
  (karoshi)
• Low in uncertainty avoidance (Denmark, Singapore)
• Risk taking is more accepted encouraged

18
Hofstedes Dimensions (cont.)

• Quantity vs. quality of life
• Quantity emphasizes acquisition of money and
  things (materialism) (USA)
• Quality emphasizes relationships and overall
  quality of life (time for activities outside of
  work is important) (Sweden)
• Implications for work hours, vacation time, pay
  issues

19

• Gender rolesThe extent to which career and
  family roles for men and women are distinct
• Similar Both men and women work outside the home
  and take care of family obligations (Sweden)
• Unique Men work outside of the home, women take
  care of the family (Japan, Austria, Mexico)
• Implications for paternity maternity leave,
  on-site day care, flex-time