Term
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Definition
| How much people in a society are expected to be tough, confrontational, and competitive versus modest and tender. |
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Term
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Definition
| The level of importance a society attaches to future-oriented behaviors such as planning and investing in the future. |
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Term
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Definition
| Measures the importance of performance improvement and excellence in society and refers to whether or not people are encouraged to strive for continued improvement. |
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Term
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Definition
| The extent to which a society encourages and rewards people for being fair, altruistic, generous, caring and kind. |
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Term
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Definition
| The level of acceptance by a society of the unequal distribution of power in institutions. |
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Term
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Definition
| The extent to which people in a society feel threatened by ambiguous situations. |
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Definition
| The tendency of people to look after themselves and their immediate families with less emphasis on the needs of society. |
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Term
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Definition
| The degree of traditionally “masculine” values – assertiveness, materialism, and a lack of concern for others – that prevail in a society. |
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Term
| Long-/Short-term Orientation |
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Definition
| The extent to which a culture programs its members to accept delayed gratification of their material, social and emotional needs. |
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Term
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Definition
| The extent to which people apply rules and systems objectively. |
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Term
| Emotional Orientation in Relationships |
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Definition
| The extent to which people openly express emotions – easy or hard to “read” |
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Term
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Definition
| The extent to which work and personal issue and relationships are separated |
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Term
| Source of Power and Status |
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Definition
| What is the source of power and status in society |
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Term
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Definition
| A culture of a society comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members, and passed on to succeeding generations |
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Term
| Cultural sensitivity/empathy |
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Definition
Cultural sensitivity/empathy is the awareness of and an honest caring about another individual’s culture, which requires The ability to understand the perspective of those living in other societies and
The willingness to put oneself in another’s shoes. |
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Term
| Steps toward establishing effective cross-cultural relations: |
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Definition
First step: understand your own cultures – this awareness helps to guard against adopting either a parochial or an ethnocentric attitude.
Parochialism – the attitude of those who expect people from or in another country to automatically fall into patterns of behavior common in their own country
Ethnocentrism – the attitude of those who operate from the assumption that their way of doing things are best, no matter where or under what conditions they are applied.
Second step: develop cultural sensitivity
Develop a cultural profile for each country or region with which the company does or is considering doing business – assess key cultural variables |
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Term
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Definition
| the attitude of those who expect people from or in another country to automatically fall into patterns of behavior common in their own country |
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Term
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Definition
| the attitude of those who operate from the assumption that their way of doing things are best, no matter where or under what conditions they are applied. |
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Term
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Definition
A cultural profile is a good starting point to help managers develop some tentative expectations as a backdrop to managing in a specific international setting.
We should also keep in mind that the generalization in culture profiles will produce only an approximation, or stereotype, of national character.
Subcultures
Individual differences
Good managers treat people as individuals, and they consciously avoid any form of stereotyping. |
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Term
| Culture’s Effects on Management |
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Definition
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Term
| The Determinants of Culture |
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Definition
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Term
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Definition
Social structure refers to a society’s basic social organization
Two particularly important dimensions when explaining differences between cultures:
The extent to which society is group or individually oriented
Degree of stratification into castes or classes |
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Term
| Individual vs. Group Orientation ---individual |
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Definition
Individual societies tend to view individual attributes and achievements as being more important than group membership
Emphasis on individual performance can be both beneficial and harmful
Encourages entrepreneurship
Can lead to high degree of managerial mobility |
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Term
| Individual vs. Group Orientation ---group |
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Definition
Group societies see groups as the primary unit of social organization
Group members
Often form deep emotional attachments
See group membership as all important
Emphasis on the group can be both beneficial and harmful
Strong group identification creates pressure for mutual help and collective action
Discourages managers and workers from moving from company to company
Discourages entrepreneurship |
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Term
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Definition
Social stratification refers to the fact that all societies are stratified on a hierarchical basis into social categories
Strata are typically defined on the basis of characteristics such as family background, occupation, and income
Societies are all stratified to some degree but they differ in two related ways
Social mobility refers to the extent to which individuals can move out of the strata into which they are born
Caste system
Class system
Significance refers to the extent to which the stratification of a society affects the operation of business organizations.
Class consciousness |
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Term
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Definition
Social mobility refers to the extent to which individuals can move out of the strata into which they are born
Caste system
Class system |
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Term
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Definition
Significance refers to the extent to which the stratification of a society affects the operation of business organizations.
Class consciousness |
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Term
| Economic Implications of Islam |
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Definition
The Koran establishes some explicit economic principles, many of which are pro-free enterprise
The Koran speaks approvingly of free enterprise and of earning legitimate profit through trade and commerce (the prophet Mohammed was once a trader)
The protection of the right to private property is also embedded within Islam
Islam is critical of those who earn profit through the exploitation of others
Given the Islamic proclivity to favor market-based systems, Muslim countries are likely to be receptive to international businesses as long as those businesses behave in a manner that is consistent with Islamic ethics
Banking methods: the mudarabah and the murabaha |
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Term
| Economic Implications of Hinduism |
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Definition
Traditional Hindu values emphasize that individuals should not be judged by their material achievements, but by their spiritual achievements.
Therefore, Hindus would be less likely to engage in entrepreneurial activity.
The caste system supported by Hinduism blocks the most able individuals’ route to the higher levels of the organization due to their lower caste. |
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Term
| Economic Implications of Buddhism |
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Definition
No emphasis on wealth creation
No historical cultural stress on entrepreneurial behavior
The lack of support for the caste system and extreme ascetic behavior suggests a relatively fertile ground for entrepreneurial activity |
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Term
| Economic Implications of Confucianism |
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Definition
Three values central to the Confucian system of ethics:
Loyalty – the loyalty that binds employees to the heads of their organization can reduce the conflict and help achieve the cooperation between management and labor at lower cost.
Reciprocal obligations – “GUANXI” (relationship networks supported by reciprocal obligations)
Honesty in dealing with others – When company adhere to Confucian ethics, they can trust each other not to violate the terms of cooperative agreements. |
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Term
| Classifying Cultural Differences-Three different ways to systematically understand cultural differences: |
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Definition
The cluster approach
The dimension approach
The context approach |
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Term
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Definition
Anglo
Middle East
Confucian Asia
Germanic Europe
Latin America
Latin Europe
Southern Asia
Nordic Europe
Eastern Europe
Sub-Saharan Africa |
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Term
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Definition
| the process of sharing meaning by transmitting messages through media such as words, behavior, or material artifacts. |
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Term
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Definition
| anything that serves to undermine the communication of the intended meaning. |
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Term
| _intercultural communication |
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Definition
| occurs when a member of one culture sends a message to a member of another culture. |
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Term
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Definition
| the cultural variables that undermine the communication of the intended meaning |
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Term
| Cultural Variables in the Communication Process |
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Definition
Attitudes
Social organizations
Thought patterns
Managers cannot assume that others use the same reasoning process
Roles
Who should make the decisions and who has responsibility for what
Language
Nonverbal communication
Time |
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Term
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Definition
refers to communication through body movements – posture, gestures, facial expressions, and eye contact.
Different interpretations in different cultures |
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Term
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Definition
| deals with the influence or proximity and space on communication. |
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Term
Personal space
High-contact cultures (South Americans, Southern and Eastern Europeans, Indonesians, and Arabs) |
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Definition
| Stand close, touch a great deal, experience a “close” sensory involvement |
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Term
| Low-contact cultures (North Americans, Asians, and Northern Europeans) |
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Definition
| – less sensory involvement, stand farther apart and touch less |
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Term
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Definition
| Refers to how something is said rather than content, e.g., the rate of speech, the tone and inflection of voice, other noises, laughing, yawning or silence. |
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Term
Time Monochronic vs. Polychronic
Monochronic time systems |
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Definition
In monochronic cultures (Switzerland, Germany, and the U.S.), time is experienced in a linear way, with a past, a present, and a futures, and time is treated as something to be spent, saved, made up or wasted.
Monochronic people, found in individualistic cultures, generally concentrate on one thing at a time, adhere to time commitemnt, and are accustomed to short term relationships. |
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Term
Time Monochronic vs. Polychronic
Polychronic time systems |
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Definition
Polychronic cultures tolerate many things occurring simultaneously and emphasize involvement with people.
Polychronic people, e.g., Latin Americans, Arabs, and those from other collectivist cultures, may focus on several things at once, be highly distractible and change plans. |
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Term
Context High vs. Low
In high-context cultures, |
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Definition
In high-context cultures, feelings and thoughts are not explicitly expressed; instead, one has to read between the lines and interpret meaning from one’s general understanding.
Asia, the Middle East, Africa, and the Mediterranean |
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Term
Context High vs. Low
In low-context cultures, |
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Definition
In low-context cultures, where personal and business relationships are more compartmentalized, communication media have to be more explicit. Feelings and thoughts are expressed in words, and information is more readily available_.
Germany, Switzerland, Scandinavia, and North America |
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Term
Fast or slow messages
Communication Channels |
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Definition
Americans expect to give and receive informationvery quickly and clearly moving through details and stagess in a linear fashion to the conclusion.
French use the slower message channels.
Information flows
The U.S. : _bottom up_
South America:top down |
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Term
| Managing Cross-Cultural Communication careful encoding |
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Definition
Even for people in English-speaking countries, words may have different meanings.
Even though English is in common use around the world for business transactions, the manager’s efforts to speak the local language will greatly improve the climate.
In the encoding process, sender must ensure congruenence between he nonverbal and the verbal message be as objective as possible not rely on personal interpretations |
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Term
| Managing Cross-Cultural Communication selective transmission |
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Definition
The type of medium chosen for the message depends on
The nature of the message
Its level of importance
The context and expectations of the receiver
The timing involved
The need for personal interactions
Find out how communication is transmitted in the local organization |
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Term
| Managing Cross-Cultural Communication selective transmission |
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Definition
Typical media
instant messaging, email, letters or memos, reports, meetings, telephone calls, teleconferences, videoconferences, face-to-face conversations
_face to face is the best for relationship building or for other important transactions |
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Term
| Managing Cross-Cultural Communication careful decoding of feedback |
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Definition
Decoding is the process of translating the received symbols into the interpreted message.
The main causes of incongruence
The receiver misinterprets the message
The receiver encodes his or her return message incorrectly
The sender misinterprets the feedback |
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Term
| Managing Cross-Cultural Communication careful decoding of feedback |
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Definition
To achieve effective feedback encoding
Get feedback from face to face interaction
Use several means of attainging feedback____________________________________
Improve ones listening and observation skills |
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Term
| Managing Cross-Cultural Communication follow-up actions |
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Definition
The issue of contract follow-up is a particularly sensitive one across cultures because of the different interpretations regarding
What constitutes a contract (maybe a handshake, maybe a full legal document)
What actions should result |
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Term
| Managing Cross-Cultural Communication follow-up actions |
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Definition
| Behaviors that are most important to intercultural communication effectiveness: |
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Term
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Definition
| is the process of discussion by which two or more parties aim to reach a mutually acceptable agreement |
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Term
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Definition
Preparation
Relationship building
The exchange of task-related information
Persuasion
Concessions and agreement |
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Term
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Definition
| Exporting, joint ventures, acquisitions, etc. |
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Term
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Definition
| The staffing of key positions, the sourcing of raw materials or component parts, the repatriating of profits, etc. |
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Term
| International negotiation is more complex because of |
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Definition
differences in cultural values, lifestyles, expectations, verbal and nonverbal language, approaches to formal procedures, and problem solving techniques
the greater number of stakeholders involved |
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Term
| Important differences in the negotiation process from country to country include |
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Definition
The amount and type of preparation for a negotiation
The relative emphasis on tasks versus personal relationships
The reliance on General principles rather than specific issues
The number of people present and the extent of their influences |
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Term
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Definition
To understand cultural differences in negotiation styles, managers first must understand their own styles and then determine how they differ from the norm in other countries
Develop a Profile of counterparts to know what to expect, how to prepare, and how to react
Find out as much as possible about
Kind of demands that might be made
Composition of the opposing team |
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Term
| Stage 2: Relationship Building |
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Definition
The process of getting to know one’s contacts in a host country and building mutual trust before embarking on business discussions and transactions.
This process is regarded with much more significance in most parts of the world than it is in the U.S. |
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Term
| Stage 3: Exchanging Task-Related Information |
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Definition
| Each side typically makes a presentation and states its position; a Q&A session usually ensure, and alternatives are discussed. |
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Term
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Definition
The hard bargaining parts in which both parties typically try to persuade the other to accept more of their position and to give up some of their own.
The different use and interpretations of verbal and nonverbal behaviors can play a particularly powerful role in persuasion especially if they are not anticipated.
“Dirty tricks”
Direct vs. indirect communication style
Individualism vs. collectivism (motivation of personal interest vs. group interest) |
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Term
| Stage 5: Concessions and Agreement |
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Definition
Concession strategy/tactic differs across cultures.
Initial positions
Russians and Chinese generally open their bargaining with extreme positions, asking for more than they hope to gain.
Swedes usually start with what they are prepared to accept.
Information disclosure
American process of addressing issues: one at a time, in a linear fashion
Negotiators in Far East approach issues in a holistic manner, deciding on the whole deal at the end, rather than making incremental concessions
Contract enforcement
Americans take contract very seriously
Russians often renege on their contracts
Japanese consider a formal contract to be somewhat of an insult and a waste of time and money in legal costs, since they prefer to operate on the basis of understanding and social trust. |
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Term
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Definition
Negotiation represents the outcome of a series of small and large decisions.
The manner and speed of decision making influence
the negotiation process
How well negotiation works out
Culture affects decision making both
through the broader context of the nation's institutional culture, produces collective patterns of decision making and
through |
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Term
| Objective/Subjective Perspective-Western approach |
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Definition
Based on rationality
Managers interpret a situation and consider alternative solutions based on objective info. |
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Term
| Objective/Subjective Perspective--Latin American |
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Definition
More subjective
Basing decisions on emotions |
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Term
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Definition
Japan
Netherlands
The U.S. (highest) |
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Term
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Definition
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Term
| Locus of Control over Outcomes-External |
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Definition
Indonesia, Malaysia
Managers believe that such decisions are of no value because they have control over the future – which lies in the hands of forces, such as fate, God, or nature. |
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Term
| Locus of Control over Outcomes--Internal |
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Definition
The U.S.
Managers feel they can plan on certain outcomes because they are in control of events that will direct the future in the desired way. |
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Term
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Definition
| How managers feel about staying with familiar solutions or trying new ones. |
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Term
| Approaches to Decision Making |
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Definition
| In addition to affecting different stages of the decision-making process, value systems influence the overall approach of decision makers from various cultures. |
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Term
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Definition
Guides behavior in the Western world
Short-term, cost benefit approach |
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Term
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Definition
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Term
| Locus of Decision Making-Autocratic Leadership |
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Definition
Who has the authority to make what kinds of decisions.
Germany, Turkey, India
China, Middle East
Employees tend to expect the boss to do most of the decision making and will not be comfortable otherwise |
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Term
| Locus of Decision Making-Participative Leadership |
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Definition
Sweden
Japan
Decentralized decision making authority
Bottom-up decision making |
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