What is culture and where does it come from? - Chapter 2

Culture consists of patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional ideas and especially their attached values.

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Summaries per chapter with the 4th edition of Cross-Cultural Management by Thomas & Peterson - Bundle

Boeksamenvatting bij Cross-Cultural Management van Thomas & Peterson

Boeksamenvatting bij Cross-Cultural Management van Thomas & Peterson

Samenvattingen en studiehulp bij Cross-Cultural Management van Thomas & Peterson

Boeksamenvatting bij Cross-Cultural Management van Thomas & Peterson is gedeeld op JoHo WorldSupporter

Inhoudsopgave

  • What is the challenging role of a global manager? - Chapter 1
  • What is culture and where does it come from? - Chapter 2
  • How can we systematically compare cultural differences? - Chapter 3
  • What are the fundamentals of cross-cultural interaction? - Chapter 4
  • What are the cross-cultural dimensions of decision-making? - Chapter 5
  • How do managers communicate and negotiate across cultures? - Chapter 6
  • How are motivation and leadership related across cultures? - Chapter 7
  • What is the challenge of multicultural work groups and teams? - Chapter 8
  • What is the challenge of international organizations? - Chapter 9
  • What is the challenge of international assignments? - Chapter 10
  • What are challenges of managing across cultures in the future? - Chapter 11

Naar de samenvatting

Samenvattingen en studiehulp gebruiken: Boeksamenvatting bij Cross-Cultural Management van Thomas & Peterson

Meer lezen

Bedrijfsorganisatie en Economie als studie en kennisgebied

Werken en jezelf ontwikkelen als manager en organisatie-adviseur

What is the challenging role of a global manager? - Chapter 1

What is the challenging role of a global manager? - Chapter 1


Because of shifts in economics, politics and technology, the role of the international manager has changed during the past decades.

What is globalization?

Globalization is the process whereby worldwide interconnections in virtually every sphere of activity are growing. Some of these interconnections lead to integration and unity worldwide; others do not. The increase in interconnections is the result of shifts that have taken place in technological, political, and economic spheres.

Growing economic interconnectedness

The causes of a greater degree of interconnectedness are:

  • The establishment of free trade areas. The three largest trade groups are the European Union, the North American Free Trade Agreement, and the Asia-Pacific Economic Cooperation.
  • The World Trade Organization established with the goal of reducing tariffs and liberalizing trade across the board. Therefore, local economic conditions are no longer the result of purely domestic influence.
  • The gap between regional GDP growth rates of the fastest-growing and least dynamic regions of the world has begun to narrow.
  • The level of FDI also has a globalizing effect. FDI, as a percentage of the world GDP, doubled between 1985 and 1994. The result of these changes in trade and FDI flows is a shift in the economic center of the world away from North America and Western Europe.

In modern multination corporations, production, sales and marketing, and distribution might all be located in different countries, to use the location-specific advantages. Also, there is less hierarchy in the organization and virtual organizations emerge. The expansion of international production continues to gather momentum.

More complex and dynamic work environment

There are various causes of globalization that affect the stability of the work environment within organization. The first factor is downsizing of the company. Additionally, the number of permanent migrants is changing the composition of the workforce in countries. Recent migration trends are that since 2014 the greatest immigration is of war refugees from Syria, Afghanistan and Somalia and that the number of woman migrants has expanded. The third factor is privatization. Finally, organizations around the globe are increasingly looking toward the formation of teams of workers as a solution to productivity problems.

Increased use and sophistication of information technology

Effects of the use of IT are that multinational firms can now communicate all types of information throughout their geographically dispersed enterprise instantaneously, and that access to information, resources, products, and markets is influenced by improved information technology.

More and different players on the global stage

The players encountered on the global stage are now more likely to include firms headquartered outside of het United States. Increasingly they could be small to medium-size businesses and more likely than ever to be a part of the service sector. Global managers must recognize that the increased permeability of boundaries associated with globalization also applies to illegal and terrorist activities.

Environment of global management

The elements of the global manager’s environment can be divided into four categories: economic, legal, political, and cultural. The first three categories provide the backdrop against which global managers must function. Culture is seen as uniquely important because the economic, legal and political characteristics are a manifestation of a nation’s culture. Furthermore, culture is largely invisible. Finally, the practice of management largely focuses on interpersonal interactions, which take place with individuals who are culturally different.

What do global managers do?

Management is having formal authority over the organizational unit. The status of managers divides their activities into interpersonal, informational, and decisional role categories.

How global managers carry out their role: Sources of guidance

Managers rely on their own judgement, but also on other people, their role set, and norms in order to understand how to carry out their job.

Organizational context, culture, and managerial roles

The practice of management is anything but static. As globalization increases the amount of intercultural contact in organizational settings, the inadequacy of our present understanding of management to explain and predict behavior in these settings becomes more apparent.

How are cross-cultural management studies evaluated?

For practicing managers and management scholars to continue to improve and elaborate their understanding of management in our current dynamic environment, it is of great importance that the study of management across cultures continues to improve.

Limitations in present management studies

Historical factors have perpetuated parochialism in management studies. Parochialism is a lack of awareness of alternative contexts, models, research and values. Culture influences the way scholars perceive and think about the world they are investigating. Three particularly aspects of the U.S. perspective that limit the ability of U.S. management theories to explain organizational phenomena in cultures with contrasting orientations are extreme individualism, a belief that individuals are in control of their own circumstances and can influence their environment and future events, and low-context communication. Most cross-cultural research must be carefully evaluated with the recognition of the limitations presented by the cultures involved and the method used.

Types of international management research

The types of international management research are:

  • Domestic research. Studies that are designed and conducted within a single country without regard for the boundary conditions set by the cultural orientation of the country. Constraint in both its ability to advance theory and its practical application.
  • Replication research. Studies that are conceived and managed by a researcher in one country and then repeated in other countries by the originator or by local collaborators. They assume that the responses in the two cultures can be compared directly.
  • Indigenous research. Studies that focus on the varied ways in which managers behave and organizations are run in a variety of specific cultural settings. They assume cultural differences and the research is conducted within a single country.
  • Comparative research. Studies that seek to find both the similarities and the differences that exist across cultures regarding a particular management issue. Important is that researchers do not present one cultural perspective as dominant.
  • International research. Studies that focus attention on multinational enterprises. They do recognize both similarities and differences across cultures. However, cultural context is not very present.
  • Intercultural research. Studies that seek to understand the interactions between culturally different individuals in organizational settings. It considers the culture of all parties in the interaction and contextual explanations for observed similarities and differences.

Methodological issues in cross-cultural research

Studies that involve two or more cultures share several common methodological issues that are nog present in purely domestic research. These methodological issues are:

  • Equivalence. This means that culturally different participants understand equally the concept and its relationship to other concepts in the study. Cross-cultural equivalence cannot be assumed at any stage of a cross-cultural study, and it must be established at three key points: the conceptualization of the theoretical constructs, the study design, and the data analysis. Conceptual or construct equivalence relates to the extent to which concepts have the same meaning in different countries. Method equivalence relates to similarities and differences in the way to which the cultural groups being studied respond to measurement instruments in general. Metric equivalence is the extent to which questions have similar measurement properties across different groups.
  • Sampling. Its goal is to conduct research with a small number of participants who accurately represent the population about which we want to make conclusions. The ability to select a truly representative sample in cross-cultural research is difficult.
  • Data collection. The most common methods are questionnaires followed by interviews. Difficulties are for example that respondents may not have a frame of reference from which to respond to questions, and that the characteristics of the interviewer and the interviewer’s technique might influence respondent answers.

Critiques of international and cross-cultural research

The most important critiques of international and cross-cultural research are:

  • The theoretical base is questionable.
  • There is too much parochialism and culture is often ignored in management research.
  • Samples often assume country homogeneity.
  • The research question may not be equally relevant in different countries.
  • Research often relies on a single method.
  • There is a bias toward studying large companies.
  • There is reliance on a single organizational level.
  • Research is limited to a small number of locations.
What is culture and where does it come from? - Chapter 2

What is culture and where does it come from? - Chapter 2

Culture consists of patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional ideas and especially their attached values.

How can we systematically compare cultural differences? - Chapter 3
What are the fundamentals of cross-cultural interaction? - Chapter 4
What are the cross-cultural dimensions of decision-making? - Chapter 5
How do managers communicate and negotiate across cultures? - Chapter 6

How do managers communicate and negotiate across cultures? - Chapter 6

Underlying every negotiation that takes place in an international context is the process of cross-cultural communication. Communication is transmitting messages, including information about the nature of the relationship, to another person who interprets these messages and gives them meaning. For the understanding of the message, the sender and receiver must share a vast amount of common information, called grounding. This information is updated during each communication practice. Cross-cultural communication is more difficult and demanding than communication within a single culture, because there is less grounding information. The term cultural field means in this context that there is a field of culturally based elements of a person’s background that influence communication. How effective the cross-cultural communication is, depends on the lack of distortion. There are several reasons for distortion to happen:

  • The encoded message can be affected by the communication skills and knowledge of the sender and by the associated cultural field. The ability to encode accurately is determined by our skill in the chosen channel.
  • The symbols a person uses to express an idea vary with the cultural field. Convenience and skill are important determinants in the choice of medium.
  • All of the factors that affect the sender also influence the receiver. Therefore, the receiver must also be skilled in the medium in use and have sufficient knowledge to interpret the message correctly.
How are motivation and leadership related across cultures? - Chapter 7
What is the challenge of multicultural work groups and teams? - Chapter 8

What is the challenge of multicultural work groups and teams? - Chapter 8

Four distinctive characteristics of work groups in organizations have been identified. Work groups are social systems that have boundaries with members who have different roles and are dependent on each other. Both people within the group and those on the outside will recognize the group’s existence. The groups have a task to perform and work groups function in an organizational context. There are three types of work groups:

  • Task forces. These are work groups in organizations. They focus on the completion of a specific project, within a limited time frame. Members are selected based on the task-related skills required by the group.
  • Crews. Crews focus on the tools required in the performance of the task. The interaction between group members is based on the use of tools. Tools are defined as task-related implements or devices.
  • Organizational teams. This type of work group focusses on the interrelationship between the group members. These teams are sets of people with specific skills and abilities who are provided with tools and procedures to address certain sets of tasks over a long period of time.
What is the challenge of international organizations? - Chapter 9

What is the challenge of international organizations? - Chapter 9

Organizations are social systems intentionally structured to achieve goals. They are not independent of their surroundings but are open systems that continuously take inputs from the environment, transform them, and then return output to the environment in the form of products, services, or knowledge. The structure of the organization is the system used to coordinate people through differentiation of roles and a hierarchy of authority in order to accomplish goals. The structure can be described in terms of its degree of complexity, formalization, and centralization. The complexity of an organization depends on three dimensions:

  • Horizontal differentiation. This is the number of different types of jobs that exist in an organization.
  • Vertical differentiation. This is the number of levels in the hierarchy of the organization.
  • Spatial differentiation. This is the extent to which the organization’s physical facilities and personnel are geographically dispersed.

Formalization is the extent to which rules and procedures determine the activities of organization members. Highly formal organizations make a lot of use of rules and procedures. Centralization is the extent to which decision making is concentrated at a single point. These three elements of organizational structure can be combined in various ways. Mintzberg uses the elements to evaluate the difference in the propensity of organizations to depend on mutual adjustment, direct supervision, and standardization of work processes, standardization of outputs, and standardization of skills.

What is the challenge of international assignments? - Chapter 10

What is the challenge of international assignments? - Chapter 10

The role that expatriates must take on is affected by the staffing strategy that the MNO has for its foreign operations. The fundamental preferences of MNOs for a particular staffing strategy have been:

  • Polycentric, which means local foreign managers only.
  • Ethnocentric, which means home country managers predominate.
  • Geocentric, which means a mix of nationalities at home and abroad.

The staffing strategy of an MNO is affected by its stage of internationalization, its country of origin, the size and the task complexity of its foreign affiliates, and the cultural distance of the affiliate form headquarters.

What are challenges of managing across cultures in the future? - Chapter 11

Summaries per chapter with the 4th edition of Cross-Cultural Management by Thomas & Peterson - Bundle

Boeksamenvatting bij Cross-Cultural Management van Thomas & Peterson

Boeksamenvatting bij Cross-Cultural Management van Thomas & Peterson

Samenvattingen en studiehulp bij Cross-Cultural Management van Thomas & Peterson

Boeksamenvatting bij Cross-Cultural Management van Thomas & Peterson is gedeeld op JoHo WorldSupporter

Inhoudsopgave

  • What is the challenging role of a global manager? - Chapter 1
  • What is culture and where does it come from? - Chapter 2
  • How can we systematically compare cultural differences? - Chapter 3
  • What are the fundamentals of cross-cultural interaction? - Chapter 4
  • What are the cross-cultural dimensions of decision-making? - Chapter 5
  • How do managers communicate and negotiate across cultures? - Chapter 6
  • How are motivation and leadership related across cultures? - Chapter 7
  • What is the challenge of multicultural work groups and teams? - Chapter 8
  • What is the challenge of international organizations? - Chapter 9
  • What is the challenge of international assignments? - Chapter 10
  • What are challenges of managing across cultures in the future? - Chapter 11

Naar de samenvatting

Samenvattingen en studiehulp gebruiken: Boeksamenvatting bij Cross-Cultural Management van Thomas & Peterson

Meer lezen

Bedrijfsorganisatie en Economie als studie en kennisgebied

Werken en jezelf ontwikkelen als manager en organisatie-adviseur

What is the challenging role of a global manager? - Chapter 1

What is the challenging role of a global manager? - Chapter 1


Because of shifts in economics, politics and technology, the role of the international manager has changed during the past decades.

What is globalization?

Globalization is the process whereby worldwide interconnections in virtually every sphere of activity are growing. Some of these interconnections lead to integration and unity worldwide; others do not. The increase in interconnections is the result of shifts that have taken place in technological, political, and economic spheres.

Growing economic interconnectedness

The causes of a greater degree of interconnectedness are:

  • The establishment of free trade areas. The three largest trade groups are the European Union, the North American Free Trade Agreement, and the Asia-Pacific Economic Cooperation.
  • The World Trade Organization established with the goal of reducing tariffs and liberalizing trade across the board. Therefore, local economic conditions are no longer the result of purely domestic influence.
  • The gap between regional GDP growth rates of the fastest-growing and least dynamic regions of the world has begun to narrow.
  • The level of FDI also has a globalizing effect. FDI, as a percentage of the world GDP, doubled between 1985 and 1994. The result of these changes in trade and FDI flows is a shift in the economic center of the world away from North America and Western Europe.

In modern multination corporations, production, sales and marketing, and distribution might all be located in different countries, to use the location-specific advantages. Also, there is less hierarchy in the organization and virtual organizations emerge. The expansion of international production continues to gather momentum.

More complex and dynamic work environment

There are various causes of globalization that affect the stability of the work environment within organization. The first factor is downsizing of the company. Additionally, the number of permanent migrants is changing the composition of the workforce in countries. Recent migration trends are that since 2014 the greatest immigration is of war refugees from Syria, Afghanistan and Somalia and that the number of woman migrants has expanded. The third factor is privatization. Finally, organizations around the globe are increasingly looking toward the formation of teams of workers as a solution to productivity problems.

Increased use and sophistication of information technology

Effects of the use of IT are that multinational firms can now communicate all types of information throughout their geographically dispersed enterprise instantaneously, and that access to information, resources, products, and markets is influenced by improved information technology.

More and different players on the global stage

The players encountered on the global stage are now more likely to include firms headquartered outside of het United States. Increasingly they could be small to medium-size businesses and more likely than ever to be a part of the service sector. Global managers must recognize that the increased permeability of boundaries associated with globalization also applies to illegal and terrorist activities.

Environment of global management

The elements of the global manager’s environment can be divided into four categories: economic, legal, political, and cultural. The first three categories provide the backdrop against which global managers must function. Culture is seen as uniquely important because the economic, legal and political characteristics are a manifestation of a nation’s culture. Furthermore, culture is largely invisible. Finally, the practice of management largely focuses on interpersonal interactions, which take place with individuals who are culturally different.

What do global managers do?

Management is having formal authority over the organizational unit. The status of managers divides their activities into interpersonal, informational, and decisional role categories.

How global managers carry out their role: Sources of guidance

Managers rely on their own judgement, but also on other people, their role set, and norms in order to understand how to carry out their job.

Organizational context, culture, and managerial roles

The practice of management is anything but static. As globalization increases the amount of intercultural contact in organizational settings, the inadequacy of our present understanding of management to explain and predict behavior in these settings becomes more apparent.

How are cross-cultural management studies evaluated?

For practicing managers and management scholars to continue to improve and elaborate their understanding of management in our current dynamic environment, it is of great importance that the study of management across cultures continues to improve.

Limitations in present management studies

Historical factors have perpetuated parochialism in management studies. Parochialism is a lack of awareness of alternative contexts, models, research and values. Culture influences the way scholars perceive and think about the world they are investigating. Three particularly aspects of the U.S. perspective that limit the ability of U.S. management theories to explain organizational phenomena in cultures with contrasting orientations are extreme individualism, a belief that individuals are in control of their own circumstances and can influence their environment and future events, and low-context communication. Most cross-cultural research must be carefully evaluated with the recognition of the limitations presented by the cultures involved and the method used.

Types of international management research

The types of international management research are:

  • Domestic research. Studies that are designed and conducted within a single country without regard for the boundary conditions set by the cultural orientation of the country. Constraint in both its ability to advance theory and its practical application.
  • Replication research. Studies that are conceived and managed by a researcher in one country and then repeated in other countries by the originator or by local collaborators. They assume that the responses in the two cultures can be compared directly.
  • Indigenous research. Studies that focus on the varied ways in which managers behave and organizations are run in a variety of specific cultural settings. They assume cultural differences and the research is conducted within a single country.
  • Comparative research. Studies that seek to find both the similarities and the differences that exist across cultures regarding a particular management issue. Important is that researchers do not present one cultural perspective as dominant.
  • International research. Studies that focus attention on multinational enterprises. They do recognize both similarities and differences across cultures. However, cultural context is not very present.
  • Intercultural research. Studies that seek to understand the interactions between culturally different individuals in organizational settings. It considers the culture of all parties in the interaction and contextual explanations for observed similarities and differences.

Methodological issues in cross-cultural research

Studies that involve two or more cultures share several common methodological issues that are nog present in purely domestic research. These methodological issues are:

  • Equivalence. This means that culturally different participants understand equally the concept and its relationship to other concepts in the study. Cross-cultural equivalence cannot be assumed at any stage of a cross-cultural study, and it must be established at three key points: the conceptualization of the theoretical constructs, the study design, and the data analysis. Conceptual or construct equivalence relates to the extent to which concepts have the same meaning in different countries. Method equivalence relates to similarities and differences in the way to which the cultural groups being studied respond to measurement instruments in general. Metric equivalence is the extent to which questions have similar measurement properties across different groups.
  • Sampling. Its goal is to conduct research with a small number of participants who accurately represent the population about which we want to make conclusions. The ability to select a truly representative sample in cross-cultural research is difficult.
  • Data collection. The most common methods are questionnaires followed by interviews. Difficulties are for example that respondents may not have a frame of reference from which to respond to questions, and that the characteristics of the interviewer and the interviewer’s technique might influence respondent answers.

Critiques of international and cross-cultural research

The most important critiques of international and cross-cultural research are:

  • The theoretical base is questionable.
  • There is too much parochialism and culture is often ignored in management research.
  • Samples often assume country homogeneity.
  • The research question may not be equally relevant in different countries.
  • Research often relies on a single method.
  • There is a bias toward studying large companies.
  • There is reliance on a single organizational level.
  • Research is limited to a small number of locations.
What is culture and where does it come from? - Chapter 2

What is culture and where does it come from? - Chapter 2

Culture consists of patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional ideas and especially their attached values.

How can we systematically compare cultural differences? - Chapter 3
What are the fundamentals of cross-cultural interaction? - Chapter 4
What are the cross-cultural dimensions of decision-making? - Chapter 5
How do managers communicate and negotiate across cultures? - Chapter 6

How do managers communicate and negotiate across cultures? - Chapter 6

Underlying every negotiation that takes place in an international context is the process of cross-cultural communication. Communication is transmitting messages, including information about the nature of the relationship, to another person who interprets these messages and gives them meaning. For the understanding of the message, the sender and receiver must share a vast amount of common information, called grounding. This information is updated during each communication practice. Cross-cultural communication is more difficult and demanding than communication within a single culture, because there is less grounding information. The term cultural field means in this context that there is a field of culturally based elements of a person’s background that influence communication. How effective the cross-cultural communication is, depends on the lack of distortion. There are several reasons for distortion to happen:

  • The encoded message can be affected by the communication skills and knowledge of the sender and by the associated cultural field. The ability to encode accurately is determined by our skill in the chosen channel.
  • The symbols a person uses to express an idea vary with the cultural field. Convenience and skill are important determinants in the choice of medium.
  • All of the factors that affect the sender also influence the receiver. Therefore, the receiver must also be skilled in the medium in use and have sufficient knowledge to interpret the message correctly.
How are motivation and leadership related across cultures? - Chapter 7
What is the challenge of multicultural work groups and teams? - Chapter 8

What is the challenge of multicultural work groups and teams? - Chapter 8

Four distinctive characteristics of work groups in organizations have been identified. Work groups are social systems that have boundaries with members who have different roles and are dependent on each other. Both people within the group and those on the outside will recognize the group’s existence. The groups have a task to perform and work groups function in an organizational context. There are three types of work groups:

  • Task forces. These are work groups in organizations. They focus on the completion of a specific project, within a limited time frame. Members are selected based on the task-related skills required by the group.
  • Crews. Crews focus on the tools required in the performance of the task. The interaction between group members is based on the use of tools. Tools are defined as task-related implements or devices.
  • Organizational teams. This type of work group focusses on the interrelationship between the group members. These teams are sets of people with specific skills and abilities who are provided with tools and procedures to address certain sets of tasks over a long period of time.
What is the challenge of international organizations? - Chapter 9

What is the challenge of international organizations? - Chapter 9

Organizations are social systems intentionally structured to achieve goals. They are not independent of their surroundings but are open systems that continuously take inputs from the environment, transform them, and then return output to the environment in the form of products, services, or knowledge. The structure of the organization is the system used to coordinate people through differentiation of roles and a hierarchy of authority in order to accomplish goals. The structure can be described in terms of its degree of complexity, formalization, and centralization. The complexity of an organization depends on three dimensions:

  • Horizontal differentiation. This is the number of different types of jobs that exist in an organization.
  • Vertical differentiation. This is the number of levels in the hierarchy of the organization.
  • Spatial differentiation. This is the extent to which the organization’s physical facilities and personnel are geographically dispersed.

Formalization is the extent to which rules and procedures determine the activities of organization members. Highly formal organizations make a lot of use of rules and procedures. Centralization is the extent to which decision making is concentrated at a single point. These three elements of organizational structure can be combined in various ways. Mintzberg uses the elements to evaluate the difference in the propensity of organizations to depend on mutual adjustment, direct supervision, and standardization of work processes, standardization of outputs, and standardization of skills.

What is the challenge of international assignments? - Chapter 10

What is the challenge of international assignments? - Chapter 10

The role that expatriates must take on is affected by the staffing strategy that the MNO has for its foreign operations. The fundamental preferences of MNOs for a particular staffing strategy have been:

  • Polycentric, which means local foreign managers only.
  • Ethnocentric, which means home country managers predominate.
  • Geocentric, which means a mix of nationalities at home and abroad.

The staffing strategy of an MNO is affected by its stage of internationalization, its country of origin, the size and the task complexity of its foreign affiliates, and the cultural distance of the affiliate form headquarters.

What are challenges of managing across cultures in the future? - Chapter 11

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