Cross Cultural Management lesson PDF

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Cross-cultural management (Ulrike MAYRHOFER - teacher) 01/10/2019 (01/10) Cross cultural management 8:00 - 12:00

ASSESSMENT FOR THIS CLASS 70% group work 30% participation Compose a group of 2 students (students with different backgrounds, maybe one french, one non-french) Choose an article on cross-cultural management Not press article, research article (one of the major journals, see below) ⁃ European Management Journal (example) ⁃ European Management Review (example) ⁃ Journal of International Business Studies (example) ⁃ Journal of World Business (example) ⁃ Journal of International management (example) ⁃ Management International Review (example) ⁃ International Management (example) ⁃ Thunderbird International Business Review (example) An article should be in English language!!!

Where to find the articles for free for the assessment? -> -> ENT -> https://login.unice.fr -> BIBLIOTEQUE -> ELECTRONIC LIBRARY SO https://bu.univ-cotedazur.fr/fr -> GO DOWN (SCROLL DOWN), Click : Ressources en ligne A à Z -> then Business source Complete -> then you can type the name/topic/country/simply search For the next week form a groups of 2 persons and choose an article!! An article should be published in the last 10 years.

STRUCTURE 1. Present the subject 2. Authors - presentation (who wrote?, where they are from?) 3. Research questions/objectives 4. Theoretical and conceptual framework 5. Methodology (case or qualitative or survey study) 6. Empirical study (where study made, in which country, how many people involved)

Better to choose empirical study where is some data analysed, people interviewed 7. What are the major FINDINGS (what authors find out) 8. Contributions (strengths, limitations, weaknesses) - according to you, what are the major strengths of the article 9. Research perspectives (if somebody continues the work of the research, what it should be doe next) 10. Bibliography (5 to 10 references linked to the topic you have chosen. You need to find author authors who wrote about this topic) Business Source Complete - EBSCO and Cairn 3 to 5 pages and 15 minutes of presentation

What to do? ⁃ ⁃ ⁃ ⁃ ⁃

prepare 3-5 pages analyse the article integrate concepts, tools presented in the class using a clear and concise writing style referencing all sources used in bibliography

What is important? ⁃ systematic citation of sources in the text (for example: According to XXX, the choices YYY (Dunning and Lundan, 2008) -> harvard STYLE ⁃ Indicate sources of tables and figures ⁃ Mention the page number for the citation of a text written by another author ⁃ In the bibliography -> classify sources by alphabetic order in the bibliography for a book: Dunning, J.H. and Lundan, S.M. (2008), Multinational Entreprises and the Golden Economy, 2nd ed., Chltenham, Edward Elgar. For a book chapter: Pesqueux, Y. (2010), What is globalisation? The Paradoxes of the Economic and Political Substance of markets, in E.Milliot and N. Tournois (eds), The paradoxes of Globalisation For a journal articles: For CONFERENCE PAPER LOOK INTERNATIONAL STANDARDS HOW TO MAKE A BIBLIOGRAPHY!!! For a press article The Economist (2017), the title of article, January 28 - but press articles we do not use in this assessment

For report - UNCTAD (2019), wORLD iNVESTMENT report, United Nations, Genova For webpage: www.hjhjhjhj.fr accessed on 09/09/2009

DEADLINE Bring your printed document on:

October 22 Don’t forget to mention the names on the first pages ______________________________________________________________________________ _______ (01/10) Cross cultural management 8:00 - 12:00

Culture ⁃ ⁃ ⁃

norms beliefs culture

Culture (national culture) - a human group sharing a set of principes, values and symbols (Davel, Dupuis, Chanlat) Culture - a system of meanings through which individuals communicate, perpetuate and develop their knowledge (Geert) Collective programming of the mind which distinguishes the members of the category of people from another (Hotstede)

What is culture? ⁃ ⁃ ⁃ ⁃ ⁃ ⁃ ⁃

attitudes and values social organisation language education religion politics legislation

Different levels of culture (they interact)

⁃ ⁃ ⁃ ⁃ ⁃ ⁃

national cultures regional culture organisational cultures professional cultures generation cultures etc

Not everything can be explained by national culture. Not everything is linked to national culture, cultures interact. Culture are complex context. It shard for companies to deal with different cultures. The most important part of culture is not visible. We can compare this with an iceberg model. Visible part is only 10%. VISIBLE PART -> All the cultural elements we are aware of. NOT VISIBLE -> needs, emotions, values The most important part (90%) are not visible, that is why it is hard to deal with culture.

What does “cross-cultural” means? Different cultures are interacting. Although most of the group are French and we have lived in France for a while, it is hard to explain what defines French culture and how it is different.

TO WATCH - TedX video on Youtube- Criss Smith 2015 https://www.youtube.com/watch?v=MB6NXzGKMKg Cross-cultural management is important in a global environment ⁃ enlarged offer ⁃ global demand All types of organisations are concerned ⁃

multinationals, SMEs, start-ups, public organisations etc

(for instance, McDonald adapts the country - what people eat, food sizes etc) Cross-cultural is used because of globalisation. Many cultures are interacting.

Globalisation A process of interdependence of a growing number of actors around the world ⁃ ⁃ ⁃ ⁃ ⁃

companies consumers citizens public institutions etc

(for example, you can work abroad after you finish your master) Globalisation is a complex process ⁃ ⁃ ⁃

there are multitude of actors variety pf independence modes (Brexit as an example) context of uncertainty

Globalisation does NOT men that the world is uniform!

Key Figures 2018 - Global foreign direct investment (FDI) Total $1.3 trillion (-13%) ⁃ Mature economies $557 billion (-27%) ⁃ Emerging economies $740 billion (+2%) - a lot of investment Companies are investing in different countries. you can see UNCTAD webpage for more information, if interested.

In 2018, where invested? (to which countries many went to) ⁃ ⁃ ⁃ ⁃ ⁃ ⁃ ⁃ ⁃

United States China HongKong (China) Singapore Netherlands United Kingdom Brazil australia

Which countries invest abroad? (from which countries) ⁃ ⁃ ⁃ ⁃ ⁃ ⁃ ⁃ ⁃ ⁃

Japan China France Hong Kong, China Germany Netherlands Canada United Kingdom South Korea

What are cultural characteristics of your home country? In which situations do you face cultural differences?

Cultural dimensions - Hofstede, Hofstede and Minkov (2010) ⁃ Individualism vs Collectivism (how the relations are build between individualist cultures and collectivist cultures) Individual: EUROPE collectivism: CHINESE AND JAPANESE CULTURES. (who is taking decision group or the individual)-> have impact on management issues ⁃ Hierarchical Distance (what is the distance -> perception of the degree of power inequality between those who hold hierarchical power and those who are submitted to it, distance between hierarchical levels) france and latin America have a stronger hierarchical distance ⁃ Uncertainty control (how do cultures accept uncertainty, they accept or they wish to control) -> what is attitude towards risk taking (control) OR they accept so do not wish strong rules. Cultures with weak control of uncertainty -> readiness to take risk such as Anglo-Saxon, Scandinavian and Asian cultures. Cultures with strong uncertainty -> risk adverse, importance on rules and regulations like latin America and mediterranean. ⁃ Masculinity vs Feminity (how the rules distributed between male and female) - masculine societies JAPAN (there are roles for the males and female, distinction), feminine society - scandinavian countries (roles between female and male are more equal distributed) ⁃ Short or long term orientation. Short term orientation - success, performance and long term: foresight, perseverance. Long term - Asia. Time management is linked to the culture. Short term - decision are taken faster like US, AUSTRALIA, UK. Long term - necessary to take decision making steps, need to discuss. (Asian). Decision making can take more time in certain cultures. In Germany, many people involved so longer. In Latin America

people take time to know each other before taking decisions. In India there are phases of decision making process. ⁃ Indulgence vs Severity. The way individuals can satisfy their fundamental and natural desires (Hapiness, control of life, importance of leisure). Severity - satisfaction needs to be regulated by rigorous social norms. (like Soviet bloc Countries) Indulgence - free satisfaction of desires linked to pleasure of life and the fact enjoy oneself. (like Latin American countries)

Hall and Hall (2000) Relationship to time Relationship to space High context vs long context Relationship to time: Monochronism ⁃ Individuals tent to accomplish tasks in a sequential manner ⁃ time is perceived and used in the literal way ⁃ ex. United Stated and Germany Polychronism ⁃ ⁃

Multiplicity of activities conduced simultaneously Time is considered like a point

Relationship to Space ⁃ Personal territory ⁃ Interpersonal distance ⁃ In certain cultures (ex. Germany), individuals expect the respect of personal space ⁃ In other cultures (ex. United states and France), professional and personal spaces are less clearly defined, and interpersonal distance is less important.

Communication styles Low contact-culture ⁃

communication without or with weak reference to contact

⁃ Direct, explicit mode of communication (examples German, Scandinavian) Hig context: ⁃ Communication with strong reference of communication ⁃ indirect, implicit mode of communication (examples Latin America, Mediterranean) Low context country send a lot of information, High context cultures (France) receive info and may say: why, we know all this info, why they send so much info High context country send information to low context country but unfortunately they do not understand where to start, missing information and details.

Convergence or divergence? Culture represents an open system based on the transmission of cultural behavioural modes The dynamics can lead to points of convergence or divergence between cultural systems Convergence -> universalist conception Divergence-> culturaliste concepts

ARTICLE - Different Approaches of Time management: Holger and Jean-Paul - Two Points of View How can we explain the lateness from Jean-Paul? From Jean-Paul this project is nothing important. For the Germans it is more important. Difficulty is also a distance and lack of explanation France: indirect communication Germany: Direct communication France: Importance of the person Germany: Importance of tasks France: Importance of authority Germany: internal control, following the rules France: Flexibility

Germany: rules and importance of structure France: Polychronic time Germany: Monochronic time

08/10/2019 Cross-cultural management 8:00 12:00 Cultural interactions Message-> decoding -> receiver -> feedback -> sender > coding -> … message

Communication in an intercultural context The sender is at the origin of the communication The coding responds to the way the sender will transform ideas into languages, images, symbolic elements, etc The feedback corresponds to the answer provided by the receiver that is communicated to the sender. Most important languages 1. 2. 3. 4. 5. 6.

Mandarin chinese spanish english arabian hindi portuguese

Language will facilitate communication. We do not speak the same English - we do not have the same meaning of the worlds.

For example, TRUST Anglo-Saxon, German - skills and competences Latin American or Mediterranean - relations - you trust because you know that person, the same school, uni.

European cultures show higher level of trust. Chinese and Japanese show lower level of trust. But this change over time if long-term relationships are established. Cultural differences can lead to divergent interpretations and perceptions, problems of mutual understanding

Communicating in a cross-cultural context requires the acquisition of intercultural competence: ⁃ affective competence (awareness of issues linked to intercultural management, curiosity for cultural contexts, social competence such as openness, empathy, etc) ⁃ cognitive competence (acquire knowledge on other cultural contexts, understanding and interpreting the behaviours of individuals from different cultures, cognitive competence can also be acquired through trainings, reading etc) ⁃ behavioural competence

Business context in China -> case study Mixel agitators ⁃ laws, contracts changing ⁃ government protects local companies, promote local companies due to the economical situation ⁃ foreign companies should provide accounts every month while Chinese companies can do it every 6 months or even annually ⁃ china is interested in the product if they can make money ⁃ no after sales service in china. In Europe number of clients are limited that is why companies offer also after sales service. Appel offre = tender - les offres - you need to compete for Middle man has all the info about the vendors even if they are published A tender is an offer to perform work, supply goods, services or products at a fixed price. The tendering process is generally utilized for procurements or contracts involving substantial amounts of money. CEO of France is very passionated (Chinese no) A lot of email communication due to the language barrier...