Lecture 1

Question 1

It is believed that one only understands the values associated with his/her culture under the following two conditions:

Answer 1

When we begin to visualize our culture only when we are out of it.

When we invite an outsider who innocently comments about what he/she sees as the saying goes “the emperor is without cloth”.

Question 2

Definition of Culture

Answer 2

Culture is all patterns of values, ideas and symbolic system that shape behavior. Kroeber & Kluckhohn (1952): anthropological approach

culture is a pattern of basic assumptions and the beliefs that culture is relatively enduring and difficult to change (Schein 1985) .

culture is the way people live and relate to each other and to the environment they live in
(Fatehi, 1996).

Culture is a collective programming of the mind which distinguishes the members of one human group from another.
(Hofstede,1991)

Question 3

(surface culture)

Answer 3

the outer layer that represents the explicit culture

Question 4

the middle layer

Answer 4

represents the norms and -values

Question 5

(deep culture)

Answer 5

the inner layer which represents the implicit culture

Question 6

The multi-layer nature of culture becomes even more complex as a result of the interaction of:

Answer 6

national, organizational and professional cultures that affect individuals.

Question 7

the interaction or the absence of interaction among the three layers leads to:

Answer 7

cultural universalism
or
particularism

(For example: while following and applying national cultural views lead to the application of particularism of rules and regulations in business, professional and organizational cultural dynamics lead to universalism of rules and regulations in business practicws. (see the following figure)

Question 8

most famous culture definition

Answer 8

Culture is a collective programming of the mind which distinguishes the members of one human group from another.
(Hofstede,1991)

Question 9

Complexity of Culture:

A Theoretical Model on Interaction of Three Layers of Culture

Answer 9

Expatriate’s Culture
Religion, History, Ideology
Corporate Culture

NC=National Culture
OC=Organizational Culture
PC=Professional Culture
(see lecture 1, slide 8)

Question 10

Overlap of National Cultural Values is More Possible between

Answer 10

Similar Socio-Economic Countries than Dissimilar Countries.

Question 11

The Need behind Cross Cultural Management Study

Answer 11

Globalization of the world economy

The positive impact of cross-culture on international business

There is an association of the absence of cross-cultural view in international mgmt. and international business failures.

To avoid parochialism in business practice.

To understand the culture orientation of management.

Question 12

Viewing the importance of culture in four business phases: why cultural study intensity depends on the level of organizational internationalization

Answer 12

Domestic Phase

Multi-domestic Phase

Multinational Phase

Global Phase

Question 13

Domestic Phase

Answer 13

limited cultural impact on business

Question 14

Multi-domestic Phase

Answer 14

the knowledge of local culture is important for market segmentation (the focus is on employees and customers)

Question 15

Multinational Phase

Answer 15

adapting to specific countries’ cultures is vital for success (the focus is on managers)

Question 16

Global Phase

Answer 16

a thorough cultural knowledge of a specific macro region is helpful in a standardized business operation. Global culture is created as a fusion of internal and external cultures. (the focus is on executives, managers, employees and customers)

Question 17

The absence of cross cultural management in an business organization can lead to

Answer 17

insensitivityof managers and employees towards different cultures

miscommunicationamong individuals, organizations and nations

business blunders in international business dealings

high failure rate

loss of revenue and market share and growth

Question 18

Parochialism manager believes developing the attitude…

Answer 18

…“a good manager at home is a good manager overseas.”

Question 19

Symptoms of Parochialism in US Management Style:

Answer 19

Staffing of top overseas management positions by individuals with no international experience

Marginalizing the importance of foreign language foreign work experience

As a result of the above factors, the failure rate of American expatriates compared to other competitive nations such as Japan and European countries has been believed to be high.

Question 20

How were American firms reacting to the needs of multiculturalism in the workplace?

A survey conducted among 30 Dallas-based Global and multinational  managers indicates that:

Answer 20

none of the 30 respondents believed that foreign language skill was important in hiring a candidate for overseas assignment.

only 15% of the respondents thought positively about the candidate’s multicultural skills.

65% of the mangers considered interpersonal skills as important.

100% of the managers indicated that managerial and technical skills are crucial factors for new hires.

Source: Woldu, H. and Gortze, L. (2001) Training and Recruitment in Dallas-based American Corporations for Future Needs, Southwest Business Symposium Proceedings, The University of Central Oklahoma

Question 21

Causes of Parochialism: Parochialism is not only American problem

Answer 21

Historically, all nations that had dominant economic, political and military power manifested parochialism in their attitude

Parochial managers/nations conduct an inward looking economic policy

Parochial managers enjoy economic hegemony

Parochial managers see their technological superiority as power

Question 22

Why the American corporate culture cannot afford to continue to manifest parochial management style

Answer 22

High Competition:
25% US firms faced competition in 1975
70% in 1985, 80% in 1990 and almost all in 2000 and beyond

Positive economic performance of other countries

The end of cold war open an opportunity for collaboration

The significance of the world economy to the American economy

Newly Industrializing countries which were not traditionally US trade partners are joining the global market. Understanding their business practice will require developing multicultural skills.

Failure of American expatriates in foreign assignments compared to European and Japanese is high and is attributed to lack of cultural sensitivity and the costs of failure are high.

Question 23

Why American corporate culture cannot afford to manifest parochial management style (cont.)

Answer 23

1 of every 6 U.S. manufacturing jobs produces for export

1 out of every 3 U.S. farm acres is producing for export

$1 of every $7 of U.S. sales goes abroad

1 of every 3 cars, 9 out of 10 TVs, 2 out of 3 suits, and every VCR sold in the U.S. is imported.

Travel and tourism is the #1 source of U.S. foreign exchange.

Thus, In order the domestic economy to be competitive, nations should have an outward looking economic policy

Question 24

Is the American Corporate Leadership Changing?

Answer 24

According to recent survey:

Executives no longer question the increasing importance of global business

2/3 of the CEOs think in global competition

2/3 of the CEOs think that employment and revenue will increase as the result of global expansion

Question 25

There are about 17 cultural dimensions classified into six categories: Kluckhohn, F. and Strodtbeck, F.L. (1961)

Answer 25

Relations to Nature

Human Relations

Attitude towards Time

Human Nature

Relations to ownership

Question 26

Relations to Nature

Answer 26

Mastery (practiced more in the West)

Harmony (more in Asia)

Subjugation (more in less developed economies)

Question 27

Human Relations

Answer 27

Collective (more in less developed economies)
(more in less developed economies)

Individual (practiced more in the West)

Hierarchical (practiced more in the West)

Question 28

Attitude towards Time

Answer 28

Past orientation (more in less developed economies)

Present orientation (US and other Western Countries

Future orientation (Scandinavian Countries)

Question 29

Human Nature

Answer 29

Good/evil-believing that people in most cases are evil (practiced more in less developed economies or dictatorial political systems)

Changeable-believing that given time people change (practiced more in democratic countries)

Question 30

Relations to Ownership

Answer 30

Private (free market economies)

Public (command economy countries)

Mixed (mixed economies)