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Cross Cultural Management

Chapter 8 - Effective Performance in the Global Marketplace

Aidai Suranaeva

on 6 August 2013

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Transcript of Cross Cultural Management

Effective Performance in the Global Marketplace Chapter 8 Performance Challenges in the Global Market Global Leadership Political Context Global Entrepreneurs Global Leadership Models Knowledge culture Ethical Behavior The Global Market characteristics for YOU are ……. ? The Global Performance Challenges today are..……. Introduction Bribery and Ethics in a Global Context Technology Transfer Factors for effective performance: The entrepreneur aims:
to control his or her own destiny;
anticipates people and market needs;
avoids excessive expenditures and bureaucracy;
seeks greater freedom and rewards. Wilson Learning Corporation
Competency model “Leadership as a quality may be more innate than acquired, but some qualities and characteristics can be identified . . . vision, eloquence, a cooperative spirit, courage, political intuition.”

Boutros Boutros Ghali, former secretary general of the United Nations states: “All too often, conflicts and wars arise when we fail to consider the views of others or to communicate with them about differences between us.”

Jimmy Carter, thirty-ninth president of the United States “The world is becoming ever more integrated. . . . The real leaders of today are capable of integrating the interests of their countries and peoples into the interests of the entire world community. . . . A leader combines a political and a moral authority.”
Mikhail Gorbachev, former President of the Soviet Union “The authentic leader has a solidarity with those he or she is leading. . . . The good leader is one who is affirming of others, nurturing their best selves, coaxing them to become the best they are capable of becoming. . . . [has] the capacity to read the signs of the times . . . knows when to make concessions.”
Desmond Tutu, the South-African Archbishop Economical Context “. . . state but as a journey, requiring different styles that are determined in part by the demands of the marketplace.”
L. D. Schaeffer, CEO of Blue Cross of California Moran and Riesenberger
Core Competencies of Global Leader Goldsmith, Greenburg, Robertson and Hu-Chan
Effective Leadership model Bernie Bass
Transformational Leadership 1. Understanding the business from a global perspective.
2. Assimilating and acting on large amounts of complex or ambiguous information.
3. Driving change based on global strategy.
4. Commitment to learning.
5. Communication in an effective manner cross-culturally.
6. Establishing personal connections readily across cultural boundaries Attitudinal Leadership Interaction Cultural 1. Possesses a global mind-set
2. Works as an equal with persons of diverse backgrounds
3. Has a long-term orientation 4. Facilitates organizational change

5. Creates learning systems

6. Motivates employees to excellence 7. Negotiates and approaches conflict in a collaborative mode

8. Manages skillfully the foreign deployment cycle

9. Leads and participates effectively in multicultural teams 10. Understands their own cultural values and assumptions

11. Accurately profiles the organizational and national culture of others

12. Avoids culture mistakes and behaves in an appropriate manner in other countries. Qualities of Effective Leadership Communicating a shared vision Demonstrating integrity Focusing on results Ensuring customer satisfaction 5. Share leadership 5 Critical Factors 1. Think globally 2. Appreciate cultural diversity 3. Develop technological savvy 4. Build partnerships and alliances To fully comprehend the significance of this phenomenon, we must understand the connection between the entrepreneurial culture and high performance. GLOBAL HUMAN PERFORMANCE * Leadership is proactive and forms new expectations in followers

* Leaders are distinguished by their capacity to inspire and provide individualized consideration, intellectual stimulation and idealized influence to their followers

* Leaders create learning opportunities for their followers and stimulate followers to solve problems

* Leaders possess good visioning, rhetorical and management skills, to develop strong emotional bonds with followers

* Leaders motivate followers to work for goals that go beyond self-interest. 1) generic cognitive skills;

2) social skills;

3) personal traits; not generally associated
with any specific training 4) on-the-job training;

5) knowledge acquired from an academic major;

6) prior work experience; highly rated as is academic knowledge 7) firm’s recruiting and hiring practices;

8) prior cross-cultural experiences;

9) foreign language competency;

10) the attributes of educational institution from which the candidate graduated. Psychological Contract is forged between the individual and the institution which employs that person represents unwritten, unexpressed needs and expectations on the part of both parties Job security = Loyalty + Hard work focused Past Employees organizational support = Compensations + Opportunities to learn and acquire new skills Present + Provisions for housing, education, welfare, recreation, and social events Expatriate workers Local contractual violations provoke Dissatisfaction expressed in a variety of ways:

•negative communications and damage to company reputation;



•sabotage. Stressful environment may cause alterations in:

 sleeping patterns;

 high anxiety;

 neurotic defense mechanisms;

 manifestations of culture shock. by Lewis Inequality of these parameters will give a negative result. Developing Human Resources In today’s knowledge culture, continuous, lifetime learning is necessary for all people. 1. Mentoring
A mentor is an experienced and wise counselor to a student or new employee for the purpose of personal or professional advancement.

- the older person shares knowledge and expertise with the younger individual seeking to learn and advance. 2.Coaching
A coach is a competent and experienced person who trains, tutors, or teaches a beginner, individually or in groups, to improve performance in a specific skill.

The learner is designated an intern for a specific time period until a measure of mastery is attained. Aidai Suranaeva Haifeng(Katie) Zhang Employee pension system case Lying, cover-ups, lack of integrity, accountability U.S. business (Enron, WorldCom, Tyco, etc.) The relativism in each culture regarding acceptance of a tip, bribe, incentive, etc. Different criteria and values between Eastern and Western cultures Payoffs to public officials, especially the police, Mexico City to the New York Police Department. Cross-Cultural Ethics by Hooker tends to be good for business and involves demonstrating respect for key moral principles - honesty, fairness, equality, dignity, diversity and individual rights 4 basic intermeshing systems The technical system The economic system The political system The cultural system Macroenvironmental approach
identify the impact of education, politics, law, etc. Behavioral approach
the sense that behavioral differences are function of cultural influences Basic personality approach
the personality configuration shared by most members of the culture, as a result of the early experiences they have in common. Renewing Diverse Cultures
A sense of one’s separateness, one’s uniqueness, one’s ethnic or racial background need not hamper an individual from becoming a multicultural cosmopolitan.

People need assistance in conjuring up new perceptions of themselves, both individually and institutionally.

Culture is a human product subject to alteration and improvement. Discovering innovative ways will improve our performance, even within the new realities, such as global communications or outer space developments. Managing Technology Transfer the sales of licenses, franchises, and other forms of agreements;
the transmission of a scientific theory, an engineering capability, or management system (drawings, plans, software, and manufacturing instructions, tools and instruments, machines and computers, facilities and training materials). Regional Technology Transfer Pacific Rim Enterprise: New technologies will turn the Pacific Ocean into a lake of commercial exchange.

Atlantic Rim Enterprise: Despite the mania about the Pacific markets, many firms see Europe as their best hope in the near future, especially for technology transfer. Ethical behavior Technology Transfer Knowledge culture 3 Challenges Global Market HIGH SPEED COSTS QUALITY FLEXIBILITY INNOVATION Conclusion Unethical Behaviour Contextualism Ethical relativism Metaethical relativism universal principles ethical principles value statements CSR - good management and accountability for the benefit of stakeholders and society means ethical behavior,
like ordinary decency and distributed justice, are adhered to by organizational leaders. Corporate Social Responsibility dissimilarities similarities Technology’s scope in R&D represents may range from pilot experiment to finished production, or
from human resource development to factories. To understand the different communication style, culture, system of law, fiance, education and translation is very important. Global business is a learning laboratory. to identify cultural clashes arising from language and nonverbal communication, time and space orientation, decision-making and information systems integrity, courage, cultural sensitivity, and a cosmopolitan mind-set are prerequisites for making a positive difference Thank you!
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