Managing in a Global Environment - Introductory Managment - Lecture Slides, Slides of Business Management and Analysis

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Managing in a global environment A stranger in a strange land Docsity.com The rise of globalism – one world • Domestic • Export (international) • Multi country • Global Docsity.com Economic Factors • Different rates of economic development • Infrastructure • Resources and product markets • Exchange rates Docsity.com Legal – Political • Political risk • Politcal instability • Laws and regulations • International treaties and trade agreements Docsity.com Socio-cultural • Cultural factors are more complex and difficult to understand than economics and legal systems Docsity.com Cultural Patterns • Beliefs, values and norms form cultural patterns • Cultural patterns are based on the premise that: – People in all cultures face common human problems for which they must find solutions – The range of alternative solutions to a culture’s problems is limited – Within a given culture there will be preferred solution, which most people with the culture will select, but there will also be people who will choose other solutions. – Over time, the preferred solutions shape the culture’s basic assumptions about beliefs, values and norms (Kluckhohn and Strodtbeck) Docsity.com What are the common human problems for which cultures must find solutions? • How humans orient to activity • What is the relationship of humans to each other? • What is the nature of human beings? • What is the relationship of humans to the natural world? • What is the orientation of humans to time? Docsity.com The range of alternative solutions to a culture’s problems is limited • How humans orient to activity – Being --- becoming --- doing • What is the relationship of humans to each other? – Hierarchical – group identification – individual autonomy • What is the nature of human beings? – Evil – mixture of good and evil – good • What is the relationship of humans to the natural world? – Subjugated by nature – in harmony with nature – master nature • What is the orientation of humans to time – Past orientation – present – future Docsity.com Context Docsity.com What is context? • Imagine two people go into a room to communicate. • The room is isolated from the environment. • The first person, Joe, is from a world deep beneath the earth’s surface. He has never been to the surface before. • The second person, Juana, is from Cleveland, and she doesn’t know that there are cities beneath the surface. Docsity.com What is context? • Joe asks Juana “Tell me about Cleveland” • Juana says “Cleveland is sunny today but very cold, and there is a brisk wind blowing off the lake.” • Joe is baffled by the conversation? Why? Docsity.com What is context? • In the first example, the communications are low context in which the meaning is entirely within the message. • Systems are designed to convey messages and people become more like the machines they design. • In the second example, the communications are high context with the meaning situated within the context. • Information is widely shared and simple messages with deep meaning flow freely Docsity.com What is context? • For the individual, context eventually sinks below the level of consciousness. • The assumption is that everyone in the world has the same context and that they all communicate in the same way – which of course is false. • So, what is the strategy for dealing with different contexts? Docsity.com What is context? • Destroy the context that is different than yours. – Native Americans, Africans • Ignore the differences – pretend they don’t exist or aren’t important. • Transcend your own system. – Recognize that there is a second system – Understand the nature of the system Docsity.com Low Context • Greater emphasis on verbal communication • More likely to miss non verbal cues • Tend to segment information • Control information on need to know basis • Prefer careful instructions from someone who knows • Time highly structured • Americans tend to be low context communicators but not as low as Swiss or Gremans Docsity.com Leadership and Culture Societal Values Docsity.com Hofstede’s Leadership Study • 18 year study • 150,000 people • 60 Countries • Five Dimensions of Leadership, each on a continuum from high to low, based on societal values. • Individualism, Power Distance, Uncertainty Avoidance, Masculinity, Time Orientation Docsity.com Uncertainty Avoidance • Low uncertainty avoidance is reflected by people who accept the unknown and tolerate risk and unconventional behavior (Australia, Canada, and the United States). • High uncertainty avoidance is characterized by people who want predictable and certain futures (Argentina, Israel, Japan, and Italy). Docsity.com Masculinity-Femininity • Masculinity refers to an emphasis that gets placed on assertiveness and the acquisition of money and material objects, coupled with an emphasis on caring for others (Italy and Japan). • Femininity places an emphasis upon personal relationships, ~ concern for others, and a high quality of life (Denmark and Sweden). Docsity.com Time Orientation • Long-term orientation is characterized by a long-range perspective coupled with a concern for thrift and weak expectations for quick returns on investments (Pacific Rim countries). • Short-term orientation is characterized by demands for immediate results and a low propensity to save (Canada and the United States). Docsity.com